New Regulation Threatens Old Dump Trucks
13 November 2014 14:36 WIB
TEMPO.CO, Jakarta - As many as 9,000 trucks in Tanjung Priok port in North Jakarta will become inoperable following the implementation of the Jakarta Regional Regulation No. 5/2014 that limits the operation period of public transportation vehicle to a maximum of 10 years.
Data from the Ministry of Trade revealed that the number of dump trucks operating in Tanjung Priok had reached a total of 14,057 vehicles, 60 percent of which have been in operation for more than 10 years, while 23 percent have been in operation for between five to 10 years. If the new regulation has been passed, then there will be more than 9,000 trucks that will be scrapped.
Chairman of Indonesia's Logistics Association Zaldy Ilham Masita, said that domestic logistic companies cannot afford to buy new trucks due to high credit interest rates, which reached up to 11 percent. Therefore, companies prefer to purchase used imported trucks, "[which] costs 50 percent less," according to Zaldy.
Domestic logistic companies frequently purchase used trucks from Singapore and Japan because in those countries, trucks are only used for a maximum of five years before it must be replaced in accordance with the country's regulations.
SAID HELABY | KHAIRUL ANAM
