Indonesian Sea Port Industry


The Prospect of SEA PORT Industry In Indonesia

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The Prospect of SEA PORT Industry In Indonesia, The competitiveness of producers in both national and international markets, the efficiency of internal distribution and, more generally, the national economic integrity and integrity is strongly influenced by the performance of the port sector.

The problem is that even though ports are obviously having a very important role for the national economy, Indonesia does not have a well-performing port system in the eyes of its users. Performance indicators for all major commercial ports indicate that the entire port system is very inefficient and in dire need of quality improvement.

Data on mooring occupancy rate, average turn-around time and work time as a percentage of turnaround time are below international standards and indicate that vessels spend too much time in moorings or to queue outside port.

Geographical factors such as the lack of deepwater port options and the number of inland ports located in rivers and requires continuous dredging are major impediments to port performance. Possibly, the biggest obstacle to development is the lack of private sector participation (investment) in general and competition in the port system.

In general, this is due to the state’s dominance in terms of port supply services through the activities of four State-Owned Enterprises, Perum Pelabuhan Indonesia (Pelindo), and also the current legal and regulatory environment that effectively limit competition both within and Between ports.

Law No.17 Year 2008 finally provides the foundation for a comprehensive reform of the port system in Indonesia. The law removes state sector monopolies over ports and opens opportunities for new private sector participation.

The government also continues to reform through the idea of maritime axis and sea toll, expected to bring change.The expansion of port capacity, the development of new international ports, liberalization, deregulation, privatization, competition, and modernization hoefully could be the solution of the most port problems.

These issues prompted BIZTEKA to further discuss the prospects for the seaport industry in Indonesia. This report is based on interviews with business actors. While secondary data is from related institutions such as Central Bureau of Statistics, Port Administration Office, Directorate of Sea Transport Traffic (Dit Lala) and Bank Data in BIZTEKA – CCI.