Thursday, 18 December 2014


The Government must spur on infra structure especially for sea transportation to keep up with growing demand at home. Growing number of passengers and goods transportation must be followed by building of ships and harbors. The condition of harbors in Indonesia today was inadequate and not presentable. A condition a such would have negative effect on quality of service in sea transportation.

To speed up harbor development process in Indonesia, a competitive climate would be needed between Government owned shipping companies and foreign flagged liners. Head of the Center of Industrial Quality Analysis [BPKIMI] Arrianto Sagala stated on Thursday [13/11] that industrial players had always been complaining about high logistics cost which was on account of high operation cost.

Arryanto said that logistics performance service cost at home was notably high, i.e. 24% of GDP. Meanwhile this year the World Bank placed Indonesia’s rating in harbor sub-sector in 74th position among 160 countries. He stated that in building harbors the Government needed to give more room to foreign investors which was intended to drum up more foreign investors to invest in Indonesia.

President Joko Widodo planned to build 24 international standard harbors at the cost of more than Rp424 trillion. The project was expected to step up harbor operations whereby to promote inter regional and international trading. The 24 harbors were designed to accommodate big ships of 3,000 – 6,000 TEU’s.

According to the President to build efficient infra structures to minimize operational cost, sound planning would be necessary. The Government planned to make the sea as the backbone of national development so the sea transportation system at home could be integrated and inter connected with other transportation system at home could be integrated and inter connected with other transportation mode.

To quote report of the World Economic Forum [WEF] 2014, the condition of infra structure in Indonesia was interior compared to other ASEAN states. Indonesia was inb 6th position among 9 countries. In terms of overland road, Indonesia was in 5th position, in terms of harbor no 6, railway no 3 and airport no 5. Indonesia needed to build inter connected roads to smoothen cargo transportation by overland or by sea.

Meanwhile Global Competitive Index [GCI] 2013 – 2014 which as also released by WEF, noted that quality of harbors in Indonesia was in 89th position of 189 countries being surveyed, which was longer to ranking in road [78] and airport [68]. The best rating was for railway [44]. In general, the quality of infra structure in Indonesia was in 82nd position; this was most ironical because harbors played a strategic position. Import deliveries were mostly by sea and more than 60% of goods were transported through Tanjun Priok harbor Jakarta.

Admittedly to step up quality of harbors in Indonesia was not an easy task. Strong commitment was needed to build the material side as well as the technology and human resources support. In a tight competitive climate in Asia, nearly all countries were spurring on harbor development such as being exercise by Singapore, Malaysia, Hong Kong and China.

Furthermore the President said that it would be national pride if the harbors in Indonesia were upgraded to global standard. Inter connectivity could be realized, and only by building marine transportation would the concept of maritime development be realized to strengthen national economy. (SS)

Business News - November 19, 2014

No comments: