Importers Lament Losses as Strike Paralyzes Indonesia’s Main Port
Importers on Monday lamented the halt of activities at Tanjung Priok Port, Indonesia’s largest and busiest port, after hundreds of cargo transport companies launched a strike against an alleged monopoly attempt.
“We seriously feel the pinch [of this strike]. Our ships have become subject to demurrage, as well as other extra fees,” Achmad Ridwan Tento, secretary-general of the Indonesian Importers Union (Ginsi), told a press conference in Jakarta on Monday. “Our losses have reached trillions of rupiah.”
He added that Ginsi had contacted the Organization of Land Transportation Owners (Organda) and the Special Port Transports (Angsuspel), which are among the organizations responsible for the strike, and threatened that Ginsi would procure their own means of transport out and into the port if the transportation firms insist on continuing their strike.
“I’ve called Organda and Angsuspel and gave them an ultimatum — that we would procure our own means of transport if they refuse [to end the strike],” Achmad said, according to Indonesian news portal kompas.com.
A total of 588 companies, which operate a combined fleet of 18,000 vehicles and employ a total of 54,000 workers, took part in Monday’s strike, according to Gemilang Tarigan, the head of the Tanjung Priok office of Angsuspel.
The strike saw Tanjung Priok, located in North Jakarta, deprived of activities but for a handful of trucks unloading or loading their goods, kontan.co.id reported.
Gemilang said the companies launched the strike in protest against state-run port operator Pelindo’s alleged attempt to take over their businesses through some of its subsidiaries.
“That is against the 2003 Law on State-Owned Enterprises… which says that state enterprises — in this case Pelindo — should not take over activities run by the private sector,” Gemilang said, according to merdeka.com. “They [Pelindo] have now established 21 subsidiaries, which will threaten the livelihood of the [port] transportation businesses. We won’t be able to operate any longer if they take over the transport services.”
He added the Indonesian Logistics and Forwarders Association (ALFI), the Indonesian Ship Owners Association and the Indonesian Chamber of Commerce and Industry (Kadin) all supported the strike.
The strike took place from 6 a.m. through 6 p.m. on Monday, according to Gemilang, and will continue if Pelindo fails to cater to protesters’ demands to stay away from the logistics and transportation businesses at ports. He added that 10 other ports managed by Pelindo also suffered from strikes.
“We estimate that all these strikes have caused approximately Rp 2.1 trillion [$214 million] in losses,” Gemilang said.
But Pelindo played down claims that activities at its ports came to a standstill on Monday.
“Loading-and-unloading activities kept running as usual. An issue that Indonesian ports, especially Tanjung Priok, would be put at the international black list, won’t materialize because IPC [Pelindo] has kept doing its services as usual,” Pelindo operational director Dana Amin said in a press statement on Monday.
Ari Henryanto, the general manager of Tanjung Priok, added: “Loading-and-unloading activities ran as usual at Tanjung Priok Port today. We served about 20 boats … about the same amount with other Mondays.”
Pelindo president director R. J. Lino, meanwhile, denied accusations that the state-owned company was trying to take over port transportation businesses through its subsidiaries.
He cited as an example how Indonesia Kendaraan Terminal, which has been accused of trying to monopolize transportation services out and into Tanjung Priok, was only an operator of Tanjung Priok’s Car Terminal, a special terminal for car exports and imports that has been in operations since 2009.
Jasa Armada Indonesia, which has been accused of operating trucks, only runs tugboat and pilot boat services, which has been part of Pelindo’s responsibilities, Lino added.
Source: http://www.thejakartaglobe.com/