Pelindo to Pump Additional $77m Into Tanjung Priok as Upgrade Steams Ahead

Jakarta Globe, Faisal Maliki Baskoro, July 29, 2010

PT Pelabuhan Indonesia II plans to invest Rp 700 billion ($77.7 million) more in the next 12 months to revamp Tanjung Priok in North Jakarta. (Antara Photo/Fanny Octavianus)

State-owned port operator PT Pelabuhan Indonesia II plans to invest Rp 700 billion ($77.7 million) more in the next 12 months to revamp Tanjung Priok in North Jakarta as part of an ongoing upgrade program.

President director Richard J Lino said the company, known as Pelindo II, would use internal funds. It has already allocated Rp 2.7 trillion this year to buy equipment and pay for the initial phase of reclaiming 246 hectares over the next eight years.

“Our customers are global customers and we need to match that by transforming the port into a world-class facility by increasing productivity through expanding capacity, investing in new equipment and giving 24-hour service in all of our ports,” Richard said.

Pelindo II is undertaking a massive program of capital expenditure to upgrade and expand its 12 ports nationwide, including Tanjung Priok, which it hopes to turn into a port capable of being a regional shipping hub.

Richard estimates that the total program will cost Rp 12 trillion for all ports over the next three years, with the total bill for Tanjung Priok’s upgrade coming to $1.6 billion over eight years.

Pelindo II is considering an initial public offering, as well as issuing bonds and seeking bank loans, to finance the projects.

“If we can increase productivity and reduce loading time it would reduce logistics costs,” Richard said. “Logistics costs in Indonesia are among the highest in the world, ranking around 70th. We want to give our customers nearly zero waiting time.”

The World Bank’s Logistic Performance Index ranks Indonesia 75th among 155 economies.

The government has been pushing its seaports and airports this year to prepare for an expected increase in the flow of goods resulting from free-trade deals with China and India.

It said in February that it would spend Rp 10.3 trillion to upgrade 66 seaports and 25 airports this year, compared with Rp 3.27 billion last year.

Pelindo plans to double its productivity within the next eight years, starting with a 90-hectare beach reclamation at Tanjung Priok and buying new cranes. Tanjung Priok and three other national ports began operating 24 hours a day in November.

Cilacap fishermen reject power plant construction

The Jakarta Post, Cilacap | Tue, 05/25/2010 9:57 AM | The Archipelago

CILACAP, Central Java: Fishermen in Bunton village, Adipala district in Cilacap regency, have raised their objection to the plan to construct a steam power plant called PLTU Bunton.

In a joint statement, the fishermen, who are grouped under the Cilacap Sea Fishing Port Association, said the plan may disrupt their fishing activities as shown through the presence of another power plant, PLTU Karangkandri, some 20 kilometers away.

The group’s leader, Srigito, said that the fishermen were not against the power plant but ships carrying coal to the plant.

“Much coal brought by the ships has spilled into the sea and may be responsible for causing pollution that kills marine life.

“For us, less fish means less income,” he said. — JP

Govt license sought for Cilamaya port

Yuli Tri Suwarni, The Jakarta Post, Bandung | Fri, 04/30/2010 10:11 AM

The West Java provincial administration has called on the central government to speed up the issuance of the principal license for the development of Cilamaya port in Karawang.

The port, when completed, is expected to be able to ease Jakarta’s Tanjung Priok port’s cargo load by about 14 percent.

The head of the West Java Development Planning Agency, Denny Juanda, said the province had not yet received the written license from the central government. “What we have so far is just a verbal assurance and statements in media,” he said on Thursday.

He added the Cilamaya port would mean efficiency for businesses in term of expenses and timing of their product shipment. This in turn will improve their competitiveness, he said.

West Java industries and factories, according to Denny, constituted 6 million twenty-foot equivalent (TEU) a day or some 45 percent of Tanjung Priok’s cargo.

Stagnation at Tanjung Priok, he said, had caused financial losses to the industry due to delays of up to five days in shipping as ships had to queue before being able to leave the port.

He said the compensation the West Java provincial administration had to bear from the delay reached up to Rp 10 billion in 2005 and is predicted to increase to Rp 18.81 billion this year.

“We won’t take the entire industry from Tanjung Priok to Cimalaya. But at least it can serve as the main feeder for the port,” Denny said.

He added that state-run port operator company PT Pelindo II had expressed commitment to manage Cilamaya as a hub-port to reduce the long queue at Tanjung Priok.

A European community consortium, PT Eurocorr Indonesia, worked with Dutch DETEC NV to finish the feasibility study in 2008 and planned to develop Cilamaya as a European-standard port.

JICA (Japan for International Cooperation Agency), he added, had also been funding a master plan study on the development of Cilamaya conducted by the Transportation Ministry scheduled to be completed by July this year.

Meanwhile, the Chamber of Commerce and Industry’s West Java chapter asked that industries had access to an export-import port zone that was void of social problems and traffic congestion.

Chairman Agung Suryamal Sutisno said the port would be important to guarantee the security and speed of the exports to get to the buyers’ hands abroad in time.

He added that Tanjung Priok was no longer feasible as West Java’s main export-import gate as containers first had to travel Jakarta’s city toll roads that were plagued by traffic jams.

The Cilamaya feasibility study shows that it is on average a 15-hour turn-around to Tanjung Priok from Bandung. While to Cimalaya it is only a 10-hour turn-around.

The difference is considered Cilamaya’s competitive advantage.

Violence at Batam Port Targets Foreigners

Jakarta Globe, April 22, 2010

Reports are emerging of violence directed against Indian nationals employed by PT Drydock World Graha in Batam, Riau Islands province.

State news agency Antara is reporting that 41 Indian workers employed by the company were escorted by 400 police, including the armed Mobile Brigade (Brimob), from the company premises after they were attacked by local workers.

At least four of the workers were injured and about 20 vehicles set alight, Antara reported. The offices have also been trashed.

One worker was quoted by Antara as alleging that the unrest was triggered after an Indian national said “Indonesian people were stupid.”

“This is national pride, so we are all angry,” the local, identified as Baim, said.

About 10,000 Indonesians were observed crowding the company premises singing “Great Indonesia” and other patriotic songs, Antara reported.

The National Maritime Institute (Namarin) said the recent violence at Tanjung Priok in North Jakarta was likely to raise shipping insurance costs, and its “international reputation as an export and import gate will plummet.”

The Joint War Committee, a London organization that analyzes shipping risks, had listed maritime regions in Indonesia as “war risk zones” that might pose dangers to domestic or international ships.

Indonesian dock workers set fire to three buildings and torched or vandalized more than 20 vehicles on Thursday after an argument with Indian manager, police said. (Reuters Photo)

Related Articles:

President orders investigation into Batam violence

‘Racist remark’ sparks Batam riot

Riot Sweeps Batam Dry Dock

45 Indian workers evacuated from riot at Batam dockyard

Tanjung Priok Clashes Bad for Image, Business of Indonesia's Ports

Jakarta Globe, April 16, 2010

Wednesday’s rioting and bloodshed at Tanjung Priok, sparked by an apparent misunderstanding over the fate of the historic tomb of an 18th-century religious leader, highlights the volatile fault lines of religion and poverty that have given the country a reputation for instability and incipient chaos.

The televised mayhem in Jakarta’s main port area left government officials and business leaders scrambling to explain what happened, while acknowledging that the area itself is fraught with the potential for further unrest. While the immediate economic impact is limited, the melee added to the port’s already dodgy reputation among international insurers.

Coordinating Minister for the Economy Hatta Rajasa said on Wednesday that he hoped the clashes, which claimed the lives of three public order officers and injured more than a hundred, would have no negative repercussions for the economy, according to the Antara news agency. “I hope there will be a settlement soon,” Hatta said.

Noting that Tanjung Priok’s Koja Container Terminal is the main gateway for goods in and out of the country, Hatta urged negotiations to ease the tensions in the neighborhood over the tomb and clarify the intentions — still unclear — that the North Jakarta government has for it.

In another report, however, the National Maritime Institute (Namarin) responded to the violence by raising the risk assessment for doing business in Tanjung Priok Port, a move likely to raise shipping insurance costs, according to Antara.

“The violent clash in Koja [North Jakarta] on Wednesday ... raised the level even higher. In the long run, [Tanjung] Priok Port’s international reputation as an export and import gate will plummet,” Namarin director Siswanto Rusdi said in Jakarta on Thursday, Antara reported.

Siswanto said that in a meeting last November, the Joint War Committee, a London organization that analyzes shipping risks, had listed maritime regions in Indonesia as “war risk zones” that might pose dangers to domestic or international ships.

Siswanto said Tanjung Priok Port had a number of potentially volatile issues, including a land dispute over the Koja Container Terminal that involves hundreds of families.

“The potential is there” for more trouble and social conflict, he said. “The rule of law is uncertain in [Tanjung] Priok.”

Johnson W Sutjipto, chairman of the Indonesian National Shipowners Association (INSA), said the fighting only halted port operations for a few hours and he hoped there would no lasting fallout. “There was not much of a delay because the Transportation Ministry took immediate steps to respond,” Johnson told the Jakarta Globe.

He said the case would affect a government plan to ask the JWC to cancel its risk alert for Indonesian ports, including Tanjung Priok.

Johnson said ports in Belawan, Balikpapan and Natuna were also categorized as risky because of the potential for social unrest.

Wednesday’s clashes will automatically postpone plans to propose dropping the risk level for all the nation’s ports. As a result of the JWC assessment, Johnson said, shipowners faced higher insurance rates.

Namarin’s Siswanto told Antara that a number of studies had concluded over the years that Tanjung Priok was unfit as a port largely because of the social tensions and complex landholding issues. “The problem is, the government and PT Pelindo II [the port operator] insist on developing Tanjung Priok, leading to efforts to expand the area and acquire more land, which raises the potential of precipitating social conflict.”

Siswanto predicted that as Tanjung Priok’s competitiveness decreased, potential investors would be reluctant to transport their goods through the port.

“I heard indications that foreign investors in TPK [the Koja Container Terminal], like Hutchison Whampoa, have taken steps to leave Tanjung Priok,” he said.

The immediate problem, said Purbaya Yudhi Sadewa, chief researcher at the state-run Danareksa Research Institute, is for the government to calm the community.

“If the government continues with repressive actions, it will send a bad signal. Authorities opted for mediation, which is wise,” Purbaya said.

The stock market did not fall after the fighting, Purbaya noted. “Investors think this is only a local incident. This is not something like what is happening in Thailand.” 

JG, Antara

Italian yacht moors at Belawan port

Antara News, Wednesday, April 7, 2010 04:06 WIB

Medan, N Sumatra (ANTARA News) - The Italian luxurious cruise ship "Costa Allegra" cast its anchors at Belawan port in Medan, Tuesday to allow its passengers to enjoy the well-known tourist destinations and objects in the area.

The fancy yacht brought 600 passengers on board from several countries, including the United States, France, Germany, Australia, and some European countries.

Of the 600 passengers, 277 tourists planned to disembark and go to many tourist objects and destinations in Medan and environments.

This historical objects in the area which the tourists planned to visit include the Maimun Palace, the North Sumatra Museum, the Grand Mosque, and the traditional market place in Medan city where they can buy special souvenirs.

They also planned to visit the tourist object in Berastagi, Karo regency, some 65 Km east of Medan city, North Sumatra province. They will visit the windmill, kangaroo country, and other `countries` known as Berastagi fruit city with its fresh and cool climate, just like in Puncak, Bogor.

"Costa Allegra" skippered by Salvatore Donato, cast its anchors at Belawan port only for one day, and will proceed to Langkawi, Malaysia, and Phuket in Thailand before returning to Europe.

Many Import Documents are Forgeries

Tempo Interactive, Wednesday, 31 March, 2010 | 12:41 WIB

TEMPO Interactive, Jakarta: The Directorate General of Customs and Excise have found numerous violations using fictitious Certificates of Origin following the free trade agreement. As of early this year, at least 53 cases with false certificates of origin have been found in Tanjung Perak Harbor, Surabaya and Belawan Harbor, Medan.

Customs and Excise director-general, Thomas Sugijata, said that the findings consisted of 32 cases in Tanjung Perak and 21 cases in Belawan. They were exposed following checks carried early this year on goods unloaded in the two harbors.

The modus is allegedly to claim imported goods originating from countries which have not established a free trade agreement to come from those which have signed the pact. The aim is not having to pay tariffs.

According to Thomas, it is possible that similar cases occurred in other major harbors. “We have instructed that an investigation be carried as of early this year, especially on goods getting zero percent tariffs,” he said at a press conference in the headquarters of the Directorat General of Custom and Excise yesterday.

He was not able to provide information on the origin of the goods using the fake certificates, but he revealed that most of them used Chinese certificates of origin.

Indonesia has signed a free trade agreement with ASEAN countries as well as with China, Korea and Japan. “The tariff facilities will not be given to those who are not eligible. We will not allow this happen,” he said.

The Minister of Manpower and Transmigration, Muhaimin Iskandar, said that until now, there has been no significant impact following the launching of the free trade agreement.

“The Manpower Office chief has been instructed to keep on monitoring developments as a result of the China-ASEAN free trade agreement,” said Muhaimin in Bandung yesterday.

The Minister of Trade Mari Elka Pangestu said that Indonesia does not plant to sign a new free trade agreement in the near future. “More time is neededfor socialization,” said Mari in a separate occasion last week.

Mari explained that the socialization process carried out is about the positive side of free trade agreement. “We must also provide information about concerns (on the negative impacts), “she said.

Indonesia is still exploring the possibility of having a free trade agreement with Australia, New Zealand and Europe, which are grouped under the Europe Free Trade Association. Specifically on free trade between Indonesia, Australia and New Zealand, the government has just completed a feasibility study.

Even though there has been no agreement yet, according to Mari, the process leading to free trade with the three countries is being prepared. “At this stage, we have involved the Indonesian Chamber of Commerce and Industry,” said Mari.

AGOENG WIJAYA | ALWAN RIDHA RAMDANI | EKA UTAMI APRILIA

Heavy price

The Jakarta Post, Wed, 02/17/2010 11:29 AM

Workers at the Sunda Kelapa Port, Jakarta, loading sacks of cement onto a boat heading for Dumai, Riau, on Tuesday. The Business Competition Supervisory Agency (KPPU) said the average price of cement in Indonesia is more expensive than in other countries, with cement costing US$91 per 50 kilogram bag in Indonesia compared to $75 per kilogram in Malaysia and China. JP/Ricky Yudhistira

Pelindo I to spend Rp 1.3t in new investment

Nani Alfrida, The Jakarta Post, Jakarta | Mon, 02/15/2010 11:48 AM

PT Pelindo I, one of the country’s four state-owned port operators, will spend up to Rp 1.3 trillion (US$139 million) this year to improve several ports under its management, a senior executive said.

Bambang Eka Cahyana, Pelindo I’s director of commercial and business development, said last week that port facilities needed to be further improved to enable them to handle more cargo shipment that was expected to increase significantly following the implementation of the ASEAN-China Free Trade Agreement (ACFTA) in early January.

He said ACFTA would increase not only imports but also exports of non-oil commodities from Indonesia to other ASEAN members and China.

“This year we allocated Rp 1.3 trillion in capex [capital expenditure], which is higher than the Rp 149 billion last year,” he said, adding that about Rp 800 billion of the total funds would be sourced internally, with the rest from bank loans.

Pelindo I operates and manages several major ports in North Sumatra and Riau, including Belawan Port and Belawan International Container Terminal (BICT), Dumai Port and Pekanbaru Port.

It also supervises 16 small ports such as Pelita Pantai Port and Sungai Duku Port in Riau.

Bambang said that this year, the company would spend Rp 700 billion to purchase new port equipment.

“This year we plan to buy two container cranes and five rubber-tired gantries. We hope to be able to operate five cranes and ten gantries by the second half of 2011,” he said, adding that in 2009, the company purchased three cranes and two gantries.

According to Bambang, Pelindo I will need more funds to purchase such equipment because they were expensive. “A crane costs $9.5 million, while a gantry costs $ 2 million,” he said.

The company will also purchase three new tugboats and two scout ships to speed up docking activities. Bambang said that the price of a new tugboat could reach Rp 25 billion while a new scout boat could cost Rp 2 billion.

Apart from procuring supporting equipment for the ports, Pelindo I plans to expand capacity at BICT port from 600,000 twenty-foot equivalent units (TEUs) to 800,000.

Three national seaports in West Sulawesi completed

Antara News, Monday, February 15, 2010 22:53 WIB

Mamuju (ANTARA News)- The building of three national seaports in West Sulawesi province is entering its finishing touches and scheduled to operate this year.

Head of the Marine Affairs of the West Sulawesi Transportation Agency Nicholas Terrano said here Monday the three national seaports are located in Budong subdistrict, Mamuju regency and in Pasangkayu subdistrict, Mamuju Utara regency.

"The two national seaports, whose construction was started in 2008, have entered their finishing touches this year, and would soon go into operation," he said.

In the meantime, he said, one of the national seaports which had also been completed in January 2010, and ready for operation, is located in Silopo, Polewali Mandar regency.

He said the three national seaports are each built at a cost of Rp10 billion taken from the State Budget in stages.

He said that with the operation of the three seaports the sea transportation infrastructure in the region will increase and ready to serve as cargo handling ports.

"Pelni ships of 1500 to 2500 tons capacity will be calling at the ports for transit from other areas like Makassar, Balikpapan, Manado, Palu, Surabya and Jakarta, and from some other areas," he said.

He also said that there will also be 1500-ton pioneering ships of the West Sulawesi administration and provided by the central government with funding from the state budget, to serve inter insular shipping to carry cargo and people.

Bali needs to prepare for welcoming Sun Princess

Antara News, Monday, February 15, 2010 13:44 WIB

Sun Princess entering the harbour

Denpasar (ANTARA News) - Bali tourist agencies need to make preparations to welcome Sun Princess a highly luxurious tourist ship with a total of 2,342 passengers, not to mention a crew of 814, which is scheduled to call at Bali in May 2010.

The preparations need to include improvement of Benoa port and supporting facilities, and transportation from the port to various destinations, head of Bali`s education and training of SIPCO (Society of Indonesian Professional Congress Organizers) Ni Made Eka Mahadewi said here Sunday.

She made the statement in response to a meeting of the Marketing Directorate General of the Ministry of Culture and Tourism with all-Bali regents, tourist officials, the transportation agency, and many other relevant government and private institutions in charge of building a pier, at the Bali Governor`s office recently.

This year Bali will also be visited by Australian yachts with 22 visits and a total of 32,692 passengers, Costa Crociere with 28 visits and 28,572 passengers, and Seabourn with four visits with 1,298 passengers.

The planned visits by a number of tourist ships and yachts with thousands of passengers will significantly raise the number of foreign tourists to Bali, which last year has received more than two million foreign tourists.

Central Maluku needs inter-insular port

Antara News, Monday, February 15, 2010 14:23 WIB

Ambon (ANTARA News) - Central Maluku needs an inter-insular port to speed up the local economic growth, Ambon Mayor Jopi Papilaya said here on Monday.

Therefore, Papilaya has proposed it to Transportation Minister Fredy Numberi to have an inter-insular port constructed at Leihitu subdistrict in Central Maluku to overcome population density in Ambon city.

"I extended the proposal to the transportation minister when attending the World Peace Day in Ambon on November 25, 2009 and he suggested that I coordinate it with Maluku provincial administration," Papilaya said.

He said the facility was needed to anticipate sea accident when ships heading to Yos Sudarso port in Ambon have to pass rough sea between Capes Alang and Nusaniwe.

Therefore the Ambon mayor has proposed to construct an inter-insular port in Leihitu, to open a new economic centers at Passo village in Baguala subdistrict and other strategic areas.

"We also push for the realization of water front city (WFC) which has been agreed by Maritime Affairs and Fisheries Ministry," Papilaya said.

Meanwhile, Maluku deputy Governor Said Assagaff was of the opinion that Papilaya had a strategic proposal and if it was realized, it would support the provincial administration program to build satellite town at Telaga Kodok village in Leihitu subdistrict.

"We fully support such a strategic program and ask Maluku transportation office to follow it up with the transportation minister," Assagaff said.

Tanjung Priok Offers Indonesia New Car Shipment Service

Jakarta Globe, Irvan Tisnabudi, February 14, 2010

Honda Freed minivans due to be exported to Singapore prior to loading at Tanjung Priok port in Jakarta. The state-owned port operator hopes the volume of vehicle traffic through the port grows as a result of its new transshipment service. (Bloomberg Photo/Dimas Ardian)

The Tanjung Priok port car terminal on Thursday began offering new transshipment services in a bid to challenge rival regional ports.

Richard Lino, president director of state-owned port operator PT Pelindo II, said the new service and the port’s strategic location would help it compete against ports in Singapore and Malaysia.

“In the past, car exporters in countries like India and Thailand have used the transshipment service in those two countries [Singapore and Malaysia], but Indonesia now has a similar service,” he said.

Transshipment is the shipment of goods to an intermediate destination for later shipment to another locale. It is often used to gather multiple small shipments headed to a single destination into a bigger shipment.

Deputy Transportation Minister Bambang Susantono said he believed the transshipment service for cars would make the Tanjung Priok port more attractive than its rivals.

“The Tanjung Priok port has always been an attractive port for shipping vehicles to and from Southeast Asia and Australia, as it is more strategic in terms of location compared to its rivals,” he said.

Pelindo II did not reveal the price or nature of the investment required to begin offering transshipment services.

The first ship to use the new service was the Golden Fang out of India. It unloaded 394 of its 1,091 cars onto the Rocky Highway ship, heading to New Zealand and Australia. The rest were unloaded for sale on Indonesia’s domestic market.

“The tariff for unloading, then loading the car again is Rp 600,000 [$64] per car,” said Gunta Prabawa, chief of the port’s car terminal.

The port can unload 130 cars per hour and load 90 per hour. The terminal has a parking capacity of 6,000 cars.

In 2009, a total of 112,983 cars passed through the terminal: 55,670 were imported and 57,313 were exported. This was a sharp decline from 180,000 in 2008.

Aviliani, an economist at the Institute for Development of Economics and Finance, welcomed the new transshipment service.

“It provides a more efficient cost alternative for the exporters, and we’ll be able to enjoy the added revenue from the shipments,” she said.

However, she cautioned that the service presented a challenge also: loading and unloading the increased number of cars with appropriate care.

“We can’t fall behind the ports in Malaysia in Singapore when it comes to fulfilling international standards for the cars being loaded and unloaded here,” Aviliani said.

President asks TNI to help people live in prosperity

Antara News, Sunday, February 7, 2010 17:47 WIB

Pesawaran, Lampung (ANTARA News) - President Susilo Bambang Yudhoyono has expressed hope that the presence of National Defense Forces (TNI) personnel in many parts of the country can help local people enjoy living in prosperity.

The president made the statement when visiting the Marine Corps forces social activities at the Clara beach, Pesawaran district, Lampung province, Sunday.

"A Marine unit has been established in this region. I hope the Marine unit can work well to improve the community welfare," Yudhoyono said.

During the social service, the Marine corps also provided local people with free health checks by opening a moving hospital equipped with a patients operating room.

"I hope this social service can create good friendship (between the TNI) and the citizens. So please use it well to help the patients," the president said.

President Yudhoyono who on the occasion wore Army green dress also witnessed the Rubber Duck operation demonstration held by the Marines forces on the beach.

A moment earlier, the president witnessed the first demonstration of combat shooting by using three tankfib PT-76s, the shootings by two BVP-2s, by two Howitser 105s and by two RM 70 Grad rockets.

Caligi was used as a Combat Training Center for Marine Corps frogmen command forces.

President Yudhoyono landed at Caligi beach in Padang Cermin subdistrict, Pesawaran district, Lampung province, on an amphibious combat vehicle of the LVT-7 series to observe the Marine Corps exercise.

The president used the amphibious combat vehicle which was carried by the warship (KRI) Surabaya-591 that anchored around two km from the beach.

President Yudhoyono and his entourage on board KRI Surabaya-591 left Merak seaport in Banten province on Saturday night for Lampung.

The amphibious combat vehicle with code number 1 which brought the president was on the fourth order of the Marines vehicle landing process in attacking a simulated enemy force at Caligi Beach.

Main Indonesian Port Tanjung Priok to Get Rp2.7t Revamp

Jakarta Globe, Yessar Rosendar, February 05, 2010

State-owned port operator PT Pelindo II plans to invest Rp 2.7 trillion ($286.2 million) to improve infrastructure at Tanjung Priok port.

The investment is part of a five-year plan to modernize Tanjung Priok, the country’s main port, and cut costs in half.

Pelindo II president director Richard J Lino told the Jakarta Globe late on Thursday that the company would spend Rp 1.5 trillion on new equipment, with the rest going toward redesigning the docks and purchasing stronger cranes. Richard said the goal was to reduce the time ships were required to remain docked from three to four days currently to two days.

Richard said PT Jakarta International Container Terminal would spend Rp 1.6 trillion to improve infrastructure facilities at its adjacent terminal this year.

JICT announced in December that it had secured a $70 million syndicated loan from the International Finance Corporation, the lending arm of the World Bank, and HSBC to help boost capacity at its Tanjung Priok terminal. JICT is jointly owned by Hong Kong’s Hutchison Port Holdings and state-owned port operator PT Pelabuhan Indonesia II. Its Tanjung Priok terminal handles an estimated 30 percent of the country’s container volume.

The government has set a goal of developing an international-standard regional port. Richard is pushing for Tanjung Priok to be that port, despite its limitations. It has been hampered by limited capacity and inefficient operations, including poor road access.

Its current capacity is only 600 containers per hour, about two-thirds of the volume projected for next year.

Recovery Seen As Indonesian Exports Hit A Record High

Jakarta Globe, Irvan Tisnabudi & Ardian Wibisono, February 02, 2010

A worker passing a pile of containers at Jakarta's Tanjung Priok Port, Jakarta, Monday. (JG Photo/Safir Makki)

Indonesian exports hit an all-time monthly high of $13.3 billion in December as commodity prices rose in line with the global economic recovery, the Central Statistics Agency said on Monday.

“We’ve never achieved a monthly figure of more than $13 billion,” said Rusman Heriawan, the chairman of the agency, known as the BPS. “The highest figure before this was $12.9 billion in May 2008.”

Exports in December jumped 23.9 percent from November and a dramatic 49.8 percent from December 2008, when they plunged 20 percent after the outbreak of the global financial crisis.

Full-year 2009 exports still fell 15 percent to $116.49 billion.

Rusman said exports of key commodities boosted December’s figure. Shipments of crude palm oil increased by $1.1 billion month-on-month, copper rose $284 million and coal exports went up by $268 million. “This is a sign of the global economic recovery,” he said. “Our exports staged a turnaround in the fourth quarter of the year.”

Japan was the biggest buyer of non-oil and gas exports in December, taking $1.25 billion. China ranked second with $1.19 billion and the United States third with $1.04 billion.

December imports totaled $10.33 billion, a 17.2 percent increase from November.

Indonesia’s 2009 trade surplus totaled $19.63 billion, more than double the $7.82 billion in 2008.

Purbaya Yudhi Sadewa, chief economist at the state-run Danareksa Research Institute, said developed economies had recovered significantly in the fourth quarter of 2009. “The strong exports in the fourth quarter and in December showed that the recovery is not just in sentiment but is real,” Purbaya said.

The country’s non-service sector should take advantage of the strong demand created by the global recovery by increasing production, he said.

“Currently, I see that the banks’ intermediation function has not fully recovered. The country’s real [non-service] sector might not take advantage of the global situation if they can’t expand their businesses due to high interest rates applied by lenders,” he warned.

Helmi Arman, an economist at PT Bank Danamon, said the longer-term trend showed that export earnings would continue to rise, driven by demand for commodities such as coal, crude oil and palm oil.

“Such changes in the structure of exports could lessen any deterioration of the trade surplus going forward,” he said. “This is because the need for raw material imports bound for re-export will be lower, compared to if exports were mostly comprised of higher-value added goods, which have higher import content.”

Seaport workers rally against illegal levies

The Jakarta Post, Jakarta | Sun, 01/17/2010 12:08 PM

Hundreds of Jakarta seaport workers staged a protest on Sunday, demanding that authorities crack down on illegal levies in the port.

The workers held their demonstration in the complex of Jakarta International Container Terminal, North Jakarta.

Workers coordinator Ilhamsyah said the illegal levies had burdened drivers of container trucks.

"A driver can pay Rp 30,000 ((US$3.2) just for illegal levies in the terminal," he said.

He also demanded that facilities for drivers such as rest room and canteen be improved.

Harbor Construction Permits in Only a Week

Tempo Interactive, Friday, 15 January, 2010 | 20:23 WIB

TEMPO Interactive, Makassar: The Transportation Department has shortened the permit issuance time of harbor construction from one year to one week.

“This no longer time enough to bribe people into issuing a permit,” said the Director General of Sea Transport Sunaryo yesterday.

Sunaryo said that the efficient working permit issuance will apply to private companies and regional government owned enterprises.

The effort will freshen up investors’ commitment to invest in port construction services.A member of the South Sulawesi Regional House of Representatives, Ajiep Padindang, welcomed the Transportation Minister intent’s to improve permit issuance efficiency. But he demanded that they impose a standard for harbors that can obtain permits.

He also demanded the government to submit a harbor management system to the region or to investors.

This is to prevent a state port operator Pelindo monopoly.

SULFAEDAR PAY

Banda Aceh being prepared to become hard port city

Antara News, Saturday, December 26, 2009 22:44 WIB

Banda Aceh (ANTARA News) - Banda Aceh is being prepared to have a seaport for very large ships by 2014, Aceh Governor Irwandi Yusuf said here Saturday.

"We are preparing Banda Aceh to have a hard port or a seaport for very large ships, ships too large to pass through the Malacca Strait," the governor said.

He said Banda Aceh was strategically located to serve as point of transit for very large ships and could thus also become a gateway to western Indonesia, a position now held by Medan in North Sumatra.

The existence of such a seaport was expected to boost Aceh province`s economic activities through its multiplier effect, Irwandi said.

The Aceh provincial government now already had a master-plan related to the envisaged hard port which included the construction of various supporting facilities.

Among those facilities would be an oil refinery and an oil storage complex on Sabang Island to supply fuel to feeder ships from China and Singapore.

Irwandi said the hard port plan had been devised also in anticipation of the free trade era beginning in 2012.

"The hard port may not yet be fully ready by 2012 but it must be by 2014," he said.

Related Article:

Reconstruction Spurred Growth: Now Investors Are Needed to Use Aceh’s New Infrastructure

Four RI seaports to operate 24 hours per day

Antara News, Monday, December 21, 2009 23:09 WIB

Jakarta's Tanjung Priok and three other ports around the country will now operate 24 hours a day. (Photo: Antara)

Samarinda (ANTARA News) - Four seaports in Indonesia will operate 24 hours a day as of February 2010, the Director General of Sea Transportation, Sunaryo, said here on Monday.

The four seaports are Belawan in Medan, North Sumatra, Tanjung Priok in Jakarta, Tanjung Perak in Surabaya, East Java and Soekarno-Hatta in Makassar, South Sulawesi.

"The 24-hour service includes ship escorting service and readiness of the port administration to serve docking ships at any time," he said.

A 24-hour service program will also be carried out in several first class ports in the country besides the four seaports but the program would be implemented in stages because the priority was still the four seaports, he said.

He said actually all ports must be able to give a 24 hour service although it would also depend upon activities at the port concerned and also readiness of its management for it.

Regarding Christmas and New Year holidays Sunaryo said his office did not make special preparations for them.

"Christmas, New Year and Eid al-Fitr are all routine activities so that no special preparations are made. However the number of personnel at the ports will be increased to meet an increasing number of passengers during the holidays," he said.

He said the hike of passengers on Christmas and New Year holidays would not be very significant compared to the Moslem Eid al-Fitr holiday.

He predicted the hike would only be 10 percent. "This is the highest forecast because it will rise probably just around eight percent from ordinary days," he said.