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Express couriers association objects to increased prices for cargo services

Jakarta Post - February 6, 2019

Riza Roidila Mufti, Jakarta – The Express Couriers Association of Indonesia (Asperindo) has spoken out against a price hike on cargo services, saying it increased operational costs for express courier businesses that heavily rely on freighter services.

Asperindo chairman Mohamad Feriadi said on Wednesday that high cargo prices forced the association members to adjust rates for their courier services, thus affecting customers.

"Small and medium enterprises and other small producers, which sell their products through e-commerce and marketplace platforms, have started to complain, saying that the higher prices for services have troubled them," said Feriadi on the sidelines of a coordination meeting between the Office of the Coordinating Economic Minister and logistics associations on Wednesday.

He said some producers claimed that, as a result of the price hike, delivery costs could be double that of production costs.

Feriadi said certain airlines had increased prices for cargo services several times in the past few months. Flag carrier Garuda Indonesia, he noted, had increased prices six times since June 2018 and twice in January alone.

"Our users must deal with the effects as well. The problem becomes more complicated for those who have contact agreements with us because they have to be notified beforehand of any increase in rates for our courier service," he said.

Feriadi added that Asperindo planned to use charter flights for its members. (bbn)

Source: https://www.thejakartapost.com/news/2019/02/06/express-couriers-association-objects-to-increased-prices-for-cargo-services.html