The better growth of Indonesia economy gives positive impact to aviation industry. This can be seen from the increase of passengers and cargoes in Indonesia to fly and deliver to all Indonesia regions and other regions in the world using air transportation. However, Indonesian air transportation should face the regulations on cargoes safety in civil airlines that bears controversial issues from the parties that do not agree with. The regulation is Air Transportation General Director Regulation number: SKEP/47/IV/2010, about Technical Manual On Cargo And Post Check That Are Carried By Civil Airline And Certificate Award Procedure As A Regulated Agent, stipulated on 19 April 2010. As an International Civil Aviation Organization (ICAO) member, a Regulated Agent (RA) is an international obligation that is regulated in ICAO in Annex 17. And the points on safety cargoes in civil flights are regulated in several Indonesia's flight regulations. So, this regulation was specially made for cargoes and posts deliveries using a regular airline that serves commercial flight, not a freighter. Principally, the regulation that has been applied first in the Soekarno-Hatta International Airport is good regulation especially for flight operator because it is about safety and convenience in aviation. RA operational outside the airport is expected to be able to reduce the density of cargo traffics in the Soekarno-Hatta's warehouse. Moreover, according to the regulation, cargoes and posts that have been checked by RA are not necessary to be re-checked by airport party. Inspection Agent company of cargo One of SKEP/47/IV/2010 contents is about Regulated Agent (Chapter I, Number 1.1); it is Indonesian legal entity that does transactions using airline operators and has gotten agreement from Air Transportation General Director to do safety checking over cargoes and posts. Up to now the Transportation Ministry in SKEP Number 522/IV/2011 has announced three cargo inspection agents or regulated agent (RA); they are PT. Duta Angkasa Prima Kargo in the Soekarno - Hatta Cargo Area, PT. Ghita Avia Trans in Mangga Dua, and PT. Fajar Anugerah Semesta in Cibitung. Yet, there are some parties, like Indonesia National Air Carriers Association (INACA), Indonesia Express Service Company (ASPERINDO), Association of Indonesia Logistic and Forwarder (ALFI) and Indonesian Chamber of Commerce (KADIN) that ask for regulation postponement as it will give negative effects on time, cost, and the completeness of delivered cargoes. Actually, the aspects of cargo performances or logistics itself are safety, speed, and cost. 1. Long process on good delivery (time efficiency) Inefficiency of time because of RA location is situated in Line 1 or outside of the airport. After the process of checking and storing, goods are delivered to Line 1 using land transportation soon. As the goods should reach the flight that has been scheduled, one thing that should be considered is the unpredictable traffic jam (especially for RA outside of the airport). 2. Additional cost by the new tariff implementation Cost is the most worrisome issue amongst air cargo entrepreneurs for they will or might have applied additional inspection cost to their consumers that goes along with unclear mechanism on operational costs, which are caused by RA. It's not a big secret any longer in the field that the delivery cost, due to the new regulations on cargoes and posts by RA, increase as much as three times of normal price Rp. 350,- / kg to become Rp. 1.050,- / kg. The checking/inspection cost by RA is much bigger than the price applied by storage operator at the airport at Rp 400 - Rp 600,-/kg without any additional cost on transportation for the inspection is done in the storage owned by the operator in Line 1. The fact is there are many air cargo companies that have annual contract. The cost for Rp. 750,- / kg (Rp. 1.050,- minus Rp. 350,-/kg) will be charged to the consumers. 3. Potential chance of damage on delivered cargoes The completeness of cargoes is also another issue that air cargo entrepreneurs worry about, either on inspection session, storage, or delivery. One of the forwarders explained of sensitive cargoes (perishable and DG) that they will get handling priority in order to avoid from damage. For example, it's ornamental fish. It will be processed soon. Thus, without passing through special line for this kind of cargo, the checking / inspection in RA will need long hours that will damage the delivery items. In addition, cargoes and posts' volume is about 977 ton per day in the Soekarno-Hatta Airport. They are checked by eight storage operators (Line 1). Is it enough that the three current RAs will be able to handle this? In fact, KADIN, in field inspection, appraised the RA’s three facilities as cargo check operator is still way behind from flight safety standard and even poorer than the current facility owned by line one warehouse operator. One of the RA providers in the airport uses only an open area without building facility and loading bay to handle and secure the cargoes easily from weather influence when they are being checked. There is also an issue spread amongst the air cargo service entrepreneurs; have the three RA companies been qualified or been in the same level as current warehouse operator officer performance in line 1? For their customers, especially for international routes, are multinational companies, that require high standard in safety and completeness of their goods. Basically if the RA regulation is not postponed to be revised or completed and then is given an extended time for socialization, it will create export stagnancy by air cargo in Indonesia. Solution and Opinion The ministry of transportation through Air Transportation General Directorate keeps trying to accept inputs for regulation completeness, so for a moment being the line one warehouse operator is approved as "RA Factories" and keeps opening opportunities to be RA companies. Inside the warehouse area (Line 1) with total of eight warehouses is managed by PT. Jasa Angkasa Semesta (JAS), PT Gapura Angkasa, Garuda Indonesia Cargo, RPX, Unex, Wahana, Cardig, and Fedex. Therefore, the eight warehouse operators will perform their function as RA to help the three RAs that have been appointed. This has been agreed by Head of Air Transportation General Directorate, Herry Bakti. The requirements to be RA have been clear as they have been explained previously. All requirements above, have been hold and applied by the cargo warehouse operators at the airport, some are express service companies. About the tariffs, KADIN suggested the RA Tariff application is managed fairly based on the calculation on investment and operation so then it won't burden the customers. Yet, for this, some airlines as well as associations will bring upper and lower thresholds of the tariffs to the government. And the performance of the three RA companies, General Secretary of INACA, Teuku Burhanuddin, on Thursday (12/5), in the press conference of INACA and ASPERINDO in Jakarta, gave an opinion: "INACA agreed to the regulation for it is very important on flight safety. However, the three companies should fulfill the safety standard that is regulated by International Aviation Association (IATA), IATA Operational Safety Audit, and ICAO." (eko/mar/various sources)