Trucking and Illegal Payments in Aceh 2005 Showed Average Costs of Rp

Trucking and Illegal Payments in Aceh 2005 Showed Average Costs of Rp

Organization Satu is a trucking firm that has branched out into The number of posts where trucks have to stop to pay bribes in Trucking and Illegal Payments in Aceh 2005 showed average costs of Rp. 650,000. For the two On the route to Banda Aceh, there was an initial rapid drop As can be seen in Figure 3, the number of TNI (military) posts Two weigh stations exist on the Banda Aceh-Medan road: one offering services for other trucks such as ‘facilitation’ at weigh each province is similar, with an average of 5.7 in Aceh and 7.8 in weeks beginning November 4th, when monitoring started, between early November and mid-December, before where fees are charged reduced from 7 to 2 over the course of in Gebang, Langkat district, North Sumatra; the other in stations. Members of Organization Satu are usually trucks that North Sumatra. However, more than double the amount is paid at average payments on the road were Rp. 388,750. More payments started to climb again to an average of Rp. 397,400 the monitoring. Brimob (Brigade mobil – paramilitary police) Seumadam, Aceh Tamiang district, in Aceh. The are massively overweight. In order to use the service, trucks are North Sumatran posts than Acehnese ones: Rp. 57,703 on recent interviews with truck drivers indicate that illegal for the two-week period beginning January 27th. There was a posts have by and large disappeared. Posts that remain are characteristics of illegal payments are different at each. required to pay around Rp. 100,000 for each journey before average in North Sumatra, compared to Rp. 23,178 in Aceh. payments fell over the course of 2005 due to a number of sharp decline in payments at the end (fees averaged only Rp. most likely to be manned by regular police forces. Indeed, departure. Facilitation includes a decrease in overweight fines to factors including the pull-out of military troops and police as 134,000 for the two-week period starting February 20th) but after an initial drop-off in the number of police posts, there has When trucks stop at the Gebang weigh station, they Rp. 50,000-70,000 at the Gebang station (Organization Satu only The recent steep drop in payments in North Sumatra appears to part of the Helsinki peace agreement and the arrival of the this appears to be an anomaly and the average is based on a been a rise in the last month. Police personnel are starting to commonly pass bribes to DLLAJ officials working the station. covers North Sumatra), regardless of weight. There appears to be relate to efforts on the part of the provincial police chief to clamp Public Disclosure Authorized Aceh Monitoring Mission (AMM). limited number of truck journeys. occupy many of the posts left vacant by military and Brimob Until recently, provincial law 7/2002 governed fees at weigh collusion between Organization Satu and the local DLLAJ down on roadside pungli (extortion). In late January, a widely who have departed as part of the peace process. workers, with revenue generated shared between the two. publicized statement was made about efforts to get rid of illegal stations in North Sumatra, with trucks meant to pay Rp. fees, and this appears to have lowered on-road payments. Table 1 shows the average illegal on-road payments on the On the route from Banda Aceh to Medan, fees increased 50,000 per ton they were overweight directly to DLLAJ Organization Dua, which is organized by a preman (criminal) However, continued monitoring will be needed to see if this trend Banda Aceh-Medan road – at posts and weigh stations – for through November to a high of Rp. 657,000 for the December Figure 3: Numbers of Posts (TNI, Brimob, Police) – Trips to officials. In November 2005, this law was superceded by group, provides security and insurance against theft from trucks. holds. trips into Aceh, trips from Aceh, and the average across all 12th-15th period. They fell off in December, but have started Banda Aceh from Medan national legislation that says that drivers should not pay any It covers many trucking routes over Sumatra, with its Medan- trips. to climb again. For the final two-week period, combined fees fees at stations, with overweight trucks having a court hearing Banda Aceh operation opening in early 2005. Each route is run Different Costs for Different Goods averaged Rp. 390,000 per truck, higher than the November instead. However, the old system still operates, except that by a division, with each division having a large degree of Table 1: Average On-Road Illegal Payments (Posts and Weigh total. the common fee is Rp. 20,000 per overweight ton. Common autonomy over price setting and its operations. Most trucks are A variety of goods were carried on the monitored trucks going in Stations) on the Banda Aceh-Medan road by Time Period practice is for drivers to hand over their papers, with money members of Organization Dua. All Organization Dua members and out of Aceh. Figure 6 shows the percentage of trucks Forms of Illegal Payments hidden inside. None of this money goes into the state coffers. are required to pay a registration fee of Rp. 120,000 and a carrying different loads for each direction. For trucks driving in to 2 week Both directions To Aceh From Aceh Rates of payment at the Gebang station stayed high over the monthly fee of Rp. 25,000. Trucks that do not pay Organization Aceh, 75% carried household goods, 35% food (ingredients and period Average # Trips Average # Trips Average # Trips There are a number of forms of illegal payments. course of the monitoring, although rates of issuance of official Dua money often experience ‘theft’ on the road. prepared), 28% construction material, 25% drinks and 16% scrap starting Cost (Rp.) Observed Cost (Rp.) Observed Cost (Rp.) Observed tilangs also increased during the period under observation. mental. For trucks leaving Aceh, 59% were carrying scrap metal, 4th Nov 388,750 4 497,500 2 280,000 2 Police and Military Posts. Along the Banda Aceh-Medan Organization Tiga used to help facilitate trucks crossing the North 30% plastic goods and 22% empty bottles. 18thNov 177,000 8 232,750 4 121,250 4 road, the police and military run roadside posts. Drivers are In contrast, it is harder to pay bribes at the Seumadam station Sumatra-Aceh border. Before the pull-out of troops associated 2nd Dec 123,400 5 198,000 2 73,667 3 requested to stop at these and to pay a fee, normally in cash in Aceh, and the bribes that are paid are substantially smaller with the peace agreement, drivers would have to pay massive Figure 6: Goods Carried By Trucks In and Out of Aceh on Banda th but sometimes in the form of drinks such as Krating Daeng (a fees at the border and were often subject to harassment and 16 Dec 159,944 9 197,100 5 113,500 4 than at Gembang. In Seumadam, truck drivers stop before Aceh - Medan Road th popular energy drink) as well. violence. As the troops left, Organization Tiga has tried to change 30 Dec 147,833 9 322,625 4 8,000 5 they reach the weigh station and walk the last few hundred Public Disclosure Authorized th its role to offer a combination of the weigh station and security 13 Jan 212,333 9 263,571 7 33,000 2 meters to tell DLLAJ officials that the truck is overweight and th Weigh Stations. The DLLAJ (Provincial Land Transportation services provided Organization Satu and Organization Dua. 0.8 27 Jan 222,100 10 357,400 5 86,800 5 to begin the process of bargaining for the fee to be paid. After th Agency) runs two weigh stations on the Banda Aceh-Medan Members are required to pay a registration fee of Rp. 100,000 and 0.7 Bribes and illegal payments that truck drivers pay on the As Aceh opened up after the tsunami, such fees 20 Feb 96,400 5 67,333 3 140,000 2 paying the agreed amount, the driver brings the truck into the a monthly fee of Rp. 55,000. Members pay Rp. 10,000 per Banda Aceh - Medan road constitute a major cost to doing constituted a significant tax on the reconstruction and route. The stations are meant to weigh trucks to prevent them station for formality purposes only. Since mid-February, pungli 0.6 from carrying overweight cargos. According to national overweight ton at the weigh stations. Where accidents occur, business in Aceh. On average, trucks traveling to Banda recovery effort. Interviews with truck drivers conducted by The costs of on-road payments are significantly higher for (extortion) has started to decrease with more overweight Organization Tiga assists in handling documentation. 0.5 Aceh from Medan pay Rp. 321,000 in bribes, extortion and the World Bank in March 2005 revealed that trucks going legislation, trucks that are overweight are supposed to be tickets issued. However, the process depends on which shift trucks coming in to Aceh from Medan than for those leaving issued an official citation (surat tilang). They must 0.4 other illegal fees. Those traveling in the other direction from Banda Aceh to Medan were asked to pay bribes at Aceh. On average, trucks headed for Banda Aceh pay Rp. is working. While some officials will now not take bribes, Organization Empat provides similar services at weigh stations, subsequently appear in court and pay a fine determined by a There has been a gradual decline in the amount paid at each 0.3 average Rp.

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