Government Is Asked to Give Opportunity to Private Party

Government Is Asked to Give Opportunity to Private Party

JAKARTA – The government of Joko Widodo-Jusuf Kalla was asked to give an opportunity to private party in managing general ports which is still managed by Transportation Ministry.

Zaldy Masita, Indonesian Logistic Association (ALI) Chairman, stated the request was delivered to expedite port development in Indonesia. “Competition among operators can lower port costs currently monopolized by PT Pelabuhan Indonesia (Pelindo) I-IV which is not efficient,” he said in press conference on Sunday (1/4).

Besides giving an opportunity to private party to manage port, Jokowi was urged to convert port rate like terminal handling charge (THC) for export-import from US dollar to rupiah. According to him, the tariffs in rupiah can stabilize port costs for service users, especially exporters and importers so it will lower rupiah fluctuation to US dollar.

So far, Pelindo I-IV have imposed port tariff for international containers in US dollar currency.

He added the government was also asked to revoke port cost for empty container re-position from eastern Indonesia. Port cost revoke can lower domestic delivery cost through sea of 25% especially to eastern Indonesia.

Zaldi also expected for strict law enforcement for the overloaded land transportation vehicles in Indonesia nationwide, especially those in Java’s northern coast (Pantura). Overloaded truck prohibition can save fuel and truck maintenance costs as well as can give an opportunity to convert commodity delivery from trucks to trains or vessels.

Commodity Train

Zaldy asked Jokowi to prevent commodity train tariff hike in this year to increase logistic volume conversion from trucks to trains. He added Jokowi was suggested to add commodity freight capacity so it can lower commodity train operational cost.

He suggested the government to operate Bitung Port as the only gate for importing consumptive or luxurious commodities to Indonesia. The effort can balance the volume from eastern to western Indonesia so domestic delivery cost to eastern region can be lowered.

Specifically for Kalibaru Port in Tanjung Priok Port area, Zaldy asked the government to re-evaluate it since the existence of Tanjung Priok Port is not appropriate anymore. “[Around] 80% of port service users are outside Jakarta so Tanjung Priok capacity addition will worsen traffic gridlock in Jakarta,” he explained. (Bisnis Indonesia)