Wednesday, 3 July 2013

GOVERNMENT DETERMINED TO RULE THE WAVE IN INDONESIA



The Directorate General of Sea Transportation, Ministry of Transportation  was determined to strengthen the fleet of Indonesia Sea Transportation. Effective sea transportation would promote inter-insular connectivity including even the remote islands in Indonesia. Moreover, two third of Indonesia consisted of sea. For that matter, the plan to strengthen sea transportation must be realized soonest. Besides, the Indonesia Economic Development Expansion and Acceleration Plan [MP3EI] needed support of strong sea transportation system.
               
The Directorate General of Sea Communication, Ministry of Transportation Bobby Mamahit stated in Jakarta on Monday [11/3] that sea transportation must be supported by fast and cheap transportation. The system must be backed up with sea transportation system like ships, harbors and competent personnel. Today the Government was constantly synergizing transportation in West Indonesia and East Indonesia, so inter-insular connectivity could be enhanced.
               
So far connectivity was only to connect one or two island only but not integrating the eastern island and the western island. As investment for this project the Government planned to import 14 Roro vessels with total investment amounting to Rp400 billion. The price of one unit of ship was around Rp30 – Rp35 billion with the capacity of 75 gross tons. There would be four pioneer ships consisting of one unit of ship of 750 Deadweight tons worth Rp24 billion, one unit measuring 500 Deadweight tons worth Rp20.4 billion and two units of ships of 1,200 Deadweight tons with total value of Rp95.4 billion.
               
The same was expressed by economy observer Faisal Bahri. According to Basri it was indisputable that Indonesia was a maritime country with a series of marine comparative advantage. As a maritime country, he said, it was important for Indonesia to strengthen sea transportation. Faisal said that overland route could only transport goods of small volume, but if sea transportation were strengthened and harbors were built, it would increase freight capacity.
               
Faisal elaborated further that delivery by overland transportation was only of low capacity, while in fact if we could maximize sea transportation capacity the capacity would be greater. The Government, he said, must upgrade the existing harbors in Indonesia which soon would increase sea transportation capacity to 30,000 tons per route by ship. “ Indonesia is a maritime country, the sea unites us so sea transportation must be strengthened.” Faisal remarked.
               
Inadequate sea transportation made sea transportation tariff in Indonesia soar high. This was what made expenses to increase and the reason why the public was discouraged to use travel transportation.
               
The data of high transportation and logistics cost in Indonesia was known from the Logistics Performance Index [LPI] of the World Bank. According to the data Indonesia’s position was below that of other Asian states, i.e. 59th position, while Singapore was in first position as the cheapest public transportation in the world.
               
Transportation was one indicator of people’s economy and welfare. The Government must make changes as the public was burdened by high transportation expenses. The number of ships in national armada today were growing fast to 11.272 ships and 98% of them aging ships of low power  and maneuverability. The limited number of big capacity ships also accounted for high expense in sea transportation. In addition to that other factors like low harbor performance, expensive manpower for loading and unloading and illegal collections were the causes of high expense of sea transportation.(SS)  


Business News - March 15,2013

No comments: