Realizing International Standard Port Development

Transcription

Realizing International Standard Port Development
24 Strategic Ports Supporting Marine Highway
PARTNERSHIP
SUSTAI NI NG
Marine Transportation Edition | 2015
I N F O R M AT I O N M E D I A F O R G O V E R N M E N T A N D B U S I N E S S E N T I T I E S C O O P E R AT I O N
ISSN 2 0 8 8 -9 1 9 4
9 772088 919408
PPP’s Scheme:
Realizing International
Standard Port
Marine Highway,
Realizing
Logistics
Distribution
Connectivity
Editorial & Publishing
Editorial
Uniting Indonesian Archipelago by Marine Infrastructure
PUBLISHING STAFF
CHAIRMAN
Acting as Director of Public Private
­Partnership Development, The
­National Development Planning
Agency (Bappenas)
CHIEF EDITOR
Jusuf Arbi
BOARD OF EDITORS
Delthy Sugriady Simatupang
Gunsairi
Rachmat Mardiana
Novie Andriani
Dodi Sulistio
Ahmad Yudistira
Eka Masropah
­Christiaan R. Rudolph
Ajeng P. Anggita
Elisabeth Ria
MANAGING DIRECTOR
R Indra
EDITOR
Thomas P
Kandi
Agus S
REPORTER
Elmy Diah Larasati
Dewi Sulistiawaty
Andi Nur Azisa
PHOTOGRAPHER
Ponco
GRAPHIC DESIGNER
Afandi A, Dica H
Translator
Farida
Contact address
Infrastructure Reform Sector
­Development Program (IRSDP)
BAPPENAS
Jl. Jambu No.35, Jakarta 10310
website: www.irsdp.org
Telp. (62-21) 31925392
Fax. (62-21) 31926438
T
ransportation has a very important role in supporting national
economic growth and improving the competitiveness of
Indonesia in the era of free markets, especially with the
enactment of the Asean Economic Community. Indonesia as a
maritime country realizes that marine transportation has strategic value.
That is why the government focused on the development of marine
highway which is capable of connecting all regions of Indonesia.
Marine highway is one of implementations of President Joko Widodo’s
Nawacita, in the form of sea connectivity effectively with the existence
of the ships that sail regularly from western to eastern Indonesia. Jokowi
also has expressed the idea of Indonesia to become the world's maritime
pivot, since Indonesia is located between two oceans, the Indian Ocean
and the Pacific Ocean as well as the two continents, Asia and Australia,
which caused Indonesia to have a strategic position in the maritime
world.
If the development of infrastructure especially implementation of
accelerating marine highway or sea connectivity can be done well, it will
be able to unite theindonesian archipelago by sea lanes. Based on the
documents of the National Medium Term Development Plan (RPJMN)
2015-2019, for the development of national connectivity to achieve a
balance of development, the government has set a target of enhancing
24 strategic ports to support marine highway.
The availability of marine highway infrastructure is expected to create a
balance national development, streamline national logistics distribution,
and also reduce the price disparity between the western and eastern
Indonesia. The existence of ports in Indonesia in quantity and quality
are still experiencing inequality between the western and eastern
Indonesia. In the future, the government needs to trigger the growth of
equitable development of ports in all regions of Indonesia. Therefore,
the government should continue to encourage the acceleration of
infrastructure development, especially inter-island connectivity, since
two-thirds of Indonesia consists of sea.
The construction of a number of strategic ports to support the
concept of marine highway has been announced by the government
to be implemented immediately. The port consists of an international
hub port, the main port, and the collector port. However, the
government encountered the situation of the State Budget and Local
Government Budget constraints. Therefore, the role of business entity
is highly expected to establish and develop the infrastructure of
marine transportation. Investors are expected to build and develop
infrastructure of marine transportation with schemes of Public Private
Partnership (PPP). Hopefully the marine infrastructure provision can be
realized immediately to unite the archipelago sea lanes. (*)
2 | Sustaining Partnership Marine Transportation Edition | 2015
Contents
18
PPP’S PROJECTS PROFILE
Kuala Tanjung Port is Ready
to Serve the World
High logistics costs in traffic flow of
commodities and services through landline
makes the government of President Joko
Widodo’s era keep developing.
4
HEADLINE NEWS
Marine Highway Program in supporting
Indonesia as the of World’s Maritime Pivot
22
REPORTAGE
Marine highway, Realizing
Distribution Logistics
Connectivity
As a maritime country that has the widest sea area and the second longest
coastline in the world, Indonesia needs a breakthrough to maximize the
potential of the region which is rich in fisheries potential, marine tourism,
energy supply, and has a strategic shipping lanes that can be used as a basis
for the development of Indonesia as the world’s maritime pivot.
14
INTERNATIONAL PPP
The price disparity of commodities
to eastern Indonesia is arguably lame
compared to western Indonesia.
Port Development through
PPP Scheme in India
26
India has 7,517 km coastline. Aware of the length Of the coastline, the
government built a supporting infrastructure of marine transportation.
FIGURE
Director of Transportation, Ministry of National
Development Planning (PPN) / Bappenas,
Ir. Bambang Prihartono, MSCE
Required Technical Guidelines
in the Implementation of PPP
PPP scheme is an integral part of the
infrastructure because it is one of the
alternatives in infrastructure financing.
Marine Transportation Edition | 2015 Sustaining Partnership | 3
Headline News
Ships in the Launching of Marine Highway Program.
Marine Highway Program
in Supporting Indonesia as the
World’s Maritime Pivot
By: Pandu Pradhana, Planning Staff in the Directorate of Transportation, the Ministry of National
Development Planning / Bappenas
A
s a maritime country
that has the w
­ idest
sea area and the
­second longest coastline in the world, Indonesia needs
a breakthrough to maximize the
potential of the region which is
rich in fisheries potential, ­marine
tourism, energy s­ upply, and has
a strategic shipping lanes that
can be used as a basis for the
development of Indonesia as
the world’s maritime pivot. The
breakthrough of marine highway
programs developed by the
government of this period is the
elaboration of sea transportation
route
planning,
subsidizing
marine transportation, public
shipping
revitalization,
and
the development of regional
commodity-based industries.
Commemoration of the first
year of government of President
Joko Widodo was marked
by the launching of one of
marine highway programs. The
departure of Caraka Jaya III-22
Motor Ship from Tanjung Priok
4 | Sustaining Partnership Marine Transportation Edition | 2015
Port, Jakarta and Caraka Jaya
Niaga III-32 Motor Ship from
Tanjung Perak Port, Surabaya
were conducted on November
4, 2015. The two ships owned by
PT. Pelayaran Nasional Indonesia
Persero (The National Shipping
Company of Indonesia) carried 41
and 36 containers for the journey
to the eastern Indonesia. For the
implementation of the marine
highway program, the Ministry
of Transportation assigned the
PT. Pelayaran Nasional Indonesia
(Persero) through Presidential
Headline News
Regulation Number 106 Year
2015 on the Implementation of
Public Service Obligation for
Freight Transportation in the
Context of the Implementation
of the Marine Highway and the
Regulation of the Minister of
Transportation No. PM 161 Year
2015 on the Implementation of
Public Service Obligations for
Marine Freight Transportation
as well as the Regulation of the
Minister of Communications
No. 168 2015 on the Rates of
Domestic Freight Transportation
and Stevedoring in the Context
of the Implementation of the
Marine Highway.
Marine Highway is one of the
implementations of President
Joko
Widodo’s
Nawacita,
which is in form of effective
marine connectivity with ships
sailing regularly from western
to eastern Indonesia. Marine
highway is expected to build a
national connectivity to achieve
the balance of the national
development, to make national
logistics
distribution
more
efficient, and to reduce the price
disparity between the western
and eastern Indonesia as well.
The World’s Maritime Pivot and
the Implementation of Marine
Highway
We can say that the improvement
of Indonesia's ranking in the
Global Competitiveness Index
announced
by
the
World
Economic Forum for the past
few reports is the result of
the government’s effort in
providing basic infrastructure.
The government's priority in
infrastructure
development
also improves the Indonesia’s
connectivity index ranked in the
transportation sector, particularly
the marine transportation sector.
President
Joko
Widodo
conveyed the idea of Indonesia
to become the world's maritime
pivot in the 9th East Asia Summit
(KTT) in Myanmar in November
2014. Indonesia which is located
between two oceans, the Indian
Ocean and the Pacific Ocean as
well as the two continents, Asia
and Australia has a strategic
position maritime world. It is
estimated that about 90 percent
of international trade using
marine transportation, while
40% of the international trade
route passes through Indonesia.
Supported by three Indonesian
Archipelagic Sea Lanes (ALKI)
which is an "aisle" of world
maritime traffic, Indonesia has
the potential to realize the
target of becoming the world's
maritime pivot.
The five main pillars of the
development agenda to support
the realization of Indonesia
as the world's maritime pivot
such as: 1) rebuilding the
Strategic Ports Supporting Marine Highway
Source: Report of Implementation of Marine Highway Concept 2015-2019
Marine Transportation Edition | 2015 Sustaining Partnership | 5
Berita Utama
maritime culture of Indonesia;
2) maintaining and managing
marine resources; 3) prioritizing
the development of maritime
infrastructure and connectivity;
4)
strengthening
maritime
diplomacy; and 5) establishing
a maritime defense force. The
third agenda is focused on
the implementation of the
marine highway program, the
construction of a deep sea
port, the development of short
sea shipping, the enhancement
in the national logistics system,
as well as the development of
shipbuilding industry.
For the implementation of the
marine highway program, to
achieve the realization of a
decrease in logistics costs and
economic equalization in 2019
through sea connectivity as the
effective distribution backbone,
marine highway action plan 20152016 was arranged as follows: a)
development of marine highway
concept; b) the development
of 24 strategic ports; c) the
revitalization of public shipping;
d) the development of short sea
shipping; e) the development of
human resources in the marine
transportation sector; f) the
development of the fleet and
shipbuilding industry; g) the
development of sub-feeder port
and special allocation funds;
h) the development of the
schedule, the cargo system, the
intermodal, and ports; and i) the
development of the strategic
port hinterland.
The concept of marine highway
followed up by the Ministry of
National Development Planning
/ Bappenas after President Joko
Widodo delivered investment
opportunities in the construction
of ports in a meeting of AsiaPacific Economic Cooperation
(APEC) in China in November
2014, is an integration of the
concept of Pendulum Nusantara,
MasteIDRlan for the Acceleration
connectivity and Expansion
of
Economic
Development
Indonesia (MP3EI), the concept
of the front and inside of the
region, as well as the National
Logistics System (Sislognas).
The definition of the marine
highway
emphasized
by
President Joko Widodo focused
more on the strengthening
concept of shipping lanes in the
eastern Indonesia.
Based on the documents of
the National Medium Term
Development Plan (RPJMN)
2015-2019, for the development
of
national
connectivity
to
achieve
the
equitable
development has been enacted
24 strategic ports to support
marine highway program, which
consists of 5 hub ports (2
international hubs and 3 national
hubs) and 19 feeder ports. With
the enactment of 24 strategic
ports, to realize the shipping
route or network it required
some strategic policies such as:
1) the arrangement of network of
marine transportation route or
the revision of Decree of existing
route; 2) the expansion of the
route network, enhancement of
service frequency, as well as the
enhancement of reliability of the
ship for marine transportation
and
pioneering;
3)
the
optimization on implementation
6 | Sustaining Partnership Marine Transportation Edition | 2015
of Public Service Obligation
(PSO) of marine transportation
of passengers and commodities.
As for the development of the
24 strategic ports is planned
as follows: a) the construction
of an international port and
a modern large-capacity for
exporting various commodities
and serves as an International
Seaport-Hub as well; b) the
dredging of pond and the
flow of hub ports at least -12.5
meter to support the use of a
Panamax ship which moves
with pendulum route; c) an
enhancement in the minimum -7
meters on feeder port draft, to
support the use of the 3 in 1 ship
and / or 2 in 1 ship developed
by PT. Pelayaran Nasional
(Persero); d) modernization
of facilities and unloading
equipment of the strategic
marine highway port to increase
Berita Utama
(Ministry of Industry) to improve
the capacity and quality of the
national shipbuilding industry.
the productivity of the port; e)
expansion on the application
of Indonesia National Single
Window (INSW) in preparation
for the implementation of the
ASEAN Single Windows; and f)
restructuring and rationalizing
port service rates in order to
improve competitiveness.
The
shipyard
construction
to support marine highway
program needs to be a priority
as well. Concerning the loading
potential which grows in line
with the equalization of regional
development
supported
by
improving connectivity, that
the potential of ship industry
of various types and sizes and
maintenance services of ships
(shipyards) is very large with
a projection up to 1,000 units
/ year. The recent ability of
shipyards reached 200-300
units / year by the number
of ships docking around 250
units were concentrated in the
western region of Indonesia.
The recent Indonesian shipping
fleet is dominated by small ships
over 25 years old. The situation
is caused by the players of
shipping services industry tend
to buy second-hand ships in
order to reduce investment and
depreciation costs. Strategic
policy
of
prioritizing
the
construction of ships in the
country needs to be realized to
take the chance of rejuvenation
and replenishment needs of
various types / sizes of ships.
It requires the following steps:
1) the construction of a new
shipyard which is technologically
advanced and efficient in the
areas; 2) the preparation of
the legal protection to be
developed into State Shipyard;
3)
incentives
and
special
attention from the government
The indications of total financing
needs for the implementation of
the marine highway program in
the medium-term development
period in 2015-2019 reached
700 trillion rupiah. The financing
is expected to complete the
land
acquisition,
dredging,
development of terminals to 24
strategic ports; the development
of short sea shipping in Java; the
development of general and bulk
cargo facilities in accordance
with the National Port Master
Plan (NRMP); the development
of 1,481 non-commercial ports
and other 83 commercial ports;
multimodal transportation to
accomplished marine highway;
revitalization of the shipbuilding
industry; and procurement of
new ships.
In the Government Work Plan
(RKP) for Fiscal Year 2016,
the Ministry of Transport has
allocated IDR 34.3 billion to
support marine highway which
is comprised of IDR 14.9 billion
specifically for the development
of 24 strategic ports; 13.6 billion
in other marine transportation
sector; and 5.4 billion in the
transportation sector of river,
lake and ferry. Government's
commitment in securing the
marine
highway
program's
annual budget is very important
for
the
sustainability
and
success of marine highway
program
implementation
in
order to achieve the target to
be the world’s maritime pivot.
(*)
Marine Transportation Edition | 2015 Sustaining Partnership | 7
Headline News
Tanjung Priok Port
24 Strategic Ports
Supporting Marine
Highway
I
n the future, the issue in
the transportation sector is
predicted to become more
complex and has bigger
challenges. With the increasing
mobility of people and high
economic activity to fulfill
the daily needs, the marine
transportation sector will play a
huge role in order to meet those
needs. However, the availability
of infrastructure to support
marine transportation modes is
still very limited.
Talking
about
marine
transportation certainly cannot
be separated from the presence
of the port. Therefore, the
government keeps encouraging
the development of the port,
including
the
construction
of new ports. In terms of
quantity, there are many ports
in Indonesia. Data from the
Ministry of Transportation (MoT)
shows, current public ports
managed by PT Pelindo are 111
locations; public ports managed
by Technical Implementation
Unit (UPT) - Ministry of
Transportation (MoT) are 614
locations; 546 locations of
special terminals; and Terminal
For Your Own Interests (Tuks)
are 795 locations.
On the activities of the ports and
harbours, there is also significant
development of port facilities
8 | Sustaining Partnership Marine Transportation Edition | 2015
Port for a country has an
important and strategic
role to support the growth
of industry and trade, and
a business sector that
can make a significant
contribution to national
development. Therefore, in
the leadership era of Joko
Widodo-Jusuf Kalla, the
construction of the port
became one of the priority
development agenda as
outlined in the National
Medium Term Development
Plan (RPJMN) 2015-2019.
so far. In 2004 there were 85
new locations, jumped to 402
locations by 2013, or there was
average rising of 22.94% per
year.
Maintenance
activities
such as dredging the shipping
track to support the realization
of smooth traffic in the shipping
lanes around the harbour were
also increased in term of the
volume of 3,267,508 m3 in 2004
Headline News
to 8.36451 million m3 in 2013,
or there was average rising of
23.78% per year.
However, these conditions have
not been able to support interregional connectivity as a result
of the spread of the ports that
have not been evenly distributed
throughout
Indonesia.
The
existence of ports in Indonesia
in term of quantity and quality
are still experiencing inequality
between the western and
eastern Indonesia. Therefore, the
government will push forward the
equalization of port development
in all regions of Indonesia.
Director
General
of
Sea
Transportation,
Ministry
of
Transportation,
Bobby
R Mamahit, said that the
government will establish a
number of strategic ports
consisting of an international
hub ports, the main ports,
and the collector ports. These
ports will connect effectively
eastern and western Indonesia
without a hitch. At least, in the
next five years the government
announced the construction and
development of 24 strategic
ports that are spread from
western to the eastern Indonesia.
Construction and development
of the 24 ports are already
contained in RPJMN 2015-2019. A
total of 24 ports are divided into
hub ports, the main ports, and
collector ports that are able to
distribute commodities to small
towns. These 24 ports are the
Port of Belawan / Kuala Tanjung,
North Sumatra: Tanjung Priok /
Kali Baru, Jakarta; Tanjung Perak
Surabaya, East Java; Makassar,
South Sulawesi; Bitung, North
Sulawesi;
Malahayati
Aceh
Besar, Aceh; Batu Ampar Batam,
Riau Islands; Bayur Gulf of
Padang, West Sumatra; Jambi;
Palembang,
South
Sumatra;
Panjang,
Lampung;
Tanjung
Emas Semarang, Central Java;
Pontianak, West Kalimantan;
Sampit,
Central
Kalimantan;
Banjarmasin, Kalimantan Barat;
Kariangau
Balikpapan,
East
Kalimantan; Palaran Samarinda,
East
Kalimantan;
Pantoloan,
Central
Sulawesi;
Kendari,
Southeast
Sulawesi;
Tenau
Kupang, East Nusa Tenggara;
Ternate, North Maluku; Ambon,
Maluku Utara; Sorong and
Jayapura, Papua.
Aside of these 24 strategic
ports, PT Pelindo is also ready
to develop a number of ports
managed by the State-Owned
Enterprise. PT Pelindo II, for
instance, is ready to invest IDR40
trillion to IDR50 trillion until
2018 to finance the project of
development and construction
of five ports in the country,
namely the Port of Sorong,
canals of Cikarang Bekasi Sea
(BCL), the Port of Tanjung Kijing
Riau Islands, Tanjung Carat
Palembang , Port of Cirebon,
and Port Bojonegara.
According to Director of PT
Pelindo II, RJ Lino, some of the
capacity expansion projects and
the construction of the ports
began in 2015 and others started
in 2016, with an average two
years construction period. One
of the projects that has been
under mounting piles (ground
breaking) in October 2015 was
the construction of Sorong Port
with an investment of IDR 3.5
trillion - IDR 4 trillion. "The dock
area is designed to accommodate
a capacity of 1 million TEUs. The
land acquisition has reached
75%, with the needed area are of
6,000 hectares, "said Lino.
Furthermore, the development
of the Cikarang Bekasi Sea
(CBL) canal project costed
IDR3.5 trillion from November
2015. CBL project that combines
the Cikarang port terminal with
land ports (dryport) is urgent in
order to reduce the burden of
the Port of Tanjung Priok.
Meanwhile, investment in the
Port of Tanjung Kijing which
will enter the ground breaking
phase in December 2015,
requires around IDR3 trillion
to fund port development on
an area of 3000-5000 meters,
with the capacity up to 500,000
TEUs. As for the investment of
the development of Tanjung
Carat Palembang Port, reached
around IDR 4 trillion, while
the development of the Port
of Bojonegara and the Port of
Cirebon reached about IDR2
trillion each.
To finance these investments,
the company will use internal
funds and loans in the form
of obligation. "We will not use
government funds. We have
internal funds around IDR19.5
trillion in the form of free cash.
The other IDR20 trillion funds
needed are from bank loans,
obligation and cooperation with
investors, "said Lino. (*)
Marine Transportation Edition | 2015 Sustaining Partnership | 9
Headline News
Towards World’s Maritime Pivot
The Quantity and Quality
of Human Resources
of Marine Transportation
Must Be Improved
As an archipelagic country, Indonesia should have a lot of Human
Resources (HR) in supporting marine transportation. In fact, the
numbers of HR in supporting marine transportation is still far
from expectations. The quantity and quality of human resources
supporting marine transportation also needs to be improved for the
sake of vision of the world’s maritime pivot.
M
inistry of Transportation through the
Human
Resources
­Development ­Agency
of
Transportation
(BPSDMP)
in May 2015 released the data
­related to the shortage in the field
of human resources in Indonesian
marine transportation reached
7,000 people. The shortage of
human resources in the field of
marine transportation covers the
ship's captain and engine officers.
It is also stated that the shortage
of sailors is caused by the
unbalanced ship development with
the development of Indonesian
sailors. BPSDM said, Indonesia was
only able to create 1,500 sailors.
Therefore, the future challenge is
improving the quantity and quality
of supporting human resources in
marine transportation. Moreover,
at the same time, the government
has a vision of becoming the
world's maritime pivot.
Safri Burhanuddin, Deputy for
Human Resources, Science and
Culture Ministry for Maritime said
the development of supporting
human
resource
in
marine
transportation becomes the basis
for national development towards
the vision of the world’s maritime
pivot.
"The existence and availability
of skilled human resources in
supporting marine transportation
is absolute, thus the development
of supporting human resources
in marine transportation should
be one of the national maritime
development priorities," he said.
In his opinion, to build supporting
HR in marine transportation in
Indonesia, it should start from
the High School / Vocational
School levels. Then, conducting
the standardization of curriculum
and the number of teaching hours
/ practice is needed for every
level of education and continued
to higher education levels (High
Schools / Colleges of related field).
Safri admitted that Indonesia still
10 | Sustaining Partnership Marine Transportation Edition | 2015
lacks of the educational facilities
of HR in marine transportation.
Nautical schools, for example, are
still relatively limited. Therefore,
it’s not enough to meet the
target of the amount of educated
employees needed. As for the
imbalance of the number of
private and government-owned
nautical schools are still occurred,
this is due to the limited number of
students that can be accepted at
the nautical schools which are fully
subsidized by the government.
Meanwhile, the private nautical
schools are also highly dependent
on the annual number of students
enrolled. Beside nautical schools,
the educational institution of HR
in marine transportation which
is considered less is related to
the human resources in the
field of management of ports,
multi-modal
transportation
management, underwater works
technology, marine transportation
Headline News
limitation of State Budget and the
Regional Government Budget.
The activity of ships that serve the transportation of commodities and passengers
in Sabu Raijua Port, NTT. Indonesia still needs a lot of human resources in sea
transportation to support the vision of the world’s maritime pivot.
technologies
technologies.
and
other
It is
expected that the
infrastructure development of
educational facility in marine
transportation sector can be
done on a massive scale to
support the vision of the world’s
maritime pivot. The infrastructure
development
of
educational
facility in marine transportation
is conducted using the State
Budget, Regional Government
Budget or through Public Private
Partnership (PPP). According
to
him,
the
Government
highly expects that there are
interested investors in building
and developing the educational
infrastructure in sea transport
with PPP scheme. However, the
role of business entity is highly
expected to establish and develop
the educational infrastructure in
marine transportation due to the
The existence and
availability of skilled human
resources in supporting
marine transportation is an
absolute, thus supporting
the development of
human resources in marine
transportation should
be one of the priorities
of development national
maritime.
As an illustration, the government
only has naval academy programs
in STIP Jakarta, Politeknik Ilmu
Pelayaran
(PIP)
Semarang,
Politeknik Pelayaran (Poltekpel)
Surabaya, PIP Makassar, PIP
Sorong. There are also the
Education and Training Center
for Science Shipping (BP2IP)
Malahayati (Banda Aceh), BP2IP
Barombongan,
and
BP2IP
Tangerang. The academy is under
the auspices of BPSDMP. For this
year, the government opened
new acceptance formations of
new cadets for all transportation
modes in line with the efforts of
BPSDMP to improve the human
resource in transportation field.
The acceptance of new cadets for
marine transportation mode this
year is fairly large compared to
other modes
of transport.
(*)
Safri Burhanuddin
Deputy for Human Resources, Science and
Culture Ministry for Maritime
Marine Transportation Edition | 2015 Sustaining Partnership | 11
Headline News
Opportunities for
Business Entity in Port Development
The Government has launched the construction of a number of strategic ports in order to support the
concept of marine highway that carried by President Joko Widodo. The port consists of international hub
ports, the main ports, and the collector ports. On the other hand, the government is faced with budget
constraints to accelerate the construction of the ports.
B
ased on the calculation
of Director of Transportation, Ministry of
National Development
Planning / Bappenas, the estimated funding for 24 priority
ports needs up to IDR243,696
trillion. This large investment has
included the cost of dredging,
terminal development, as well as
land acquisition. Concerning the
high scale of financing needed,
the government encourages the
involvement of enterprises in
the realization of the national
agenda.
Ministry
of
Transportation
(MOT), Ignatius Jonan, said
that although the state has a
major role in the port sector,
but the government still gives
opportunities for enterprises to
work on this vital sector. “It is
a monopoly if all the ports are
run and managed by the state.
I welcome private developers
who are interested in building
the port, just send the proposal
to me, I will sign, “said Minister
Transportation to the media, in
Jakarta, in early October.
MOT suggests, the state will
not disburse the State Budget
(APBN) for the construction
of the 24 ports, but purely a
business entity. Therefore, in
some occasions the Minister of
Transportation invites investors
to work together to develop the
ports in the country, including
ports managed by the MoT. But
especially for foreign investors,
Jonan reminded to obey to the
rules of ownership of the ships,
which is 50% plus 1% must be
owned by companies from
Indonesia.
Director of Ports and Dredging,
Directorate General of Sea
Transportation,
Ministry
of
Transportation,
Mauritz
HM
Sibarani, said current port
development
involves
the
coordination of the various
parties and stakeholders, such
as the Coordinating Ministry for
the Economy, the Ministry of
Maritime Coordinator, Ministry
of
National
Development
Planning / Bappenas, the
Ministry of Public Works and
Public Housing, Ministry of
Maritime Affairs and Fisheries,
Ministry of Rural Development
of Disadvantaged Regions and
Transmigration, Ministry of State
Owned Enterprises, as well as
local governments.
Every year, said Mauritz, the
Directorate
of
Ports
and
12 | Sustaining Partnership Marine Transportation Edition | 2015
Dredging allocated a high
budget for the improvement of
port facilities and the dredging
navigation channel / port pool.
For National Budget 2016, there
are 105 locations of ports in total
with development activities.
However, to achieve maximum
results, it needs the role of
a business entity such as PT
Pelabuhan Indonesia (Pelindo) I,
II, III, and IV for the construction
of infrastructures and industrial
areas outside Java, as well as
shipping companies that will
serve these marine highway
routes.
According to Mauritz, the
scheme of Public Private
Partnership (PPP) will be
highly needed to cover the
limited budget that can only
meet about 30% of financing
infrastructure
development.
Therefore, the Ministry of
Transportation also expects
more and more investors are
interested in using PPP scheme
in the port sector. Therefore, the
development of 24 ports that
support the marine highway
program will be conducted by
Ports Business Entities (BUP)
with the agreement of PPP’s
scheme. “Business entities can
work together to build ports,
Headline News
Tanjung Perak Port Surabaya
both main and supporting
facilities, and operates the ports
within the scope of the granted
concession,” said Mauritz to
Partnership
Magazine
midNovember 2015.
Head
of
sub-Division
of
Maritime Transport Partnership
Assessment and Multimodal
Transport
Management,
Partnership
and
Service
Center
of
Transportation
Service (PKKPJT), Ministry of
Transportation, Sandi Mahendra,
said
the
government’s
cooperation
with
business
entities in the port sector
has actually been going on
since 10 years ago. In the era
of the previous government,
the Ministry of Transportation
in 2005 had tried to develop
the port infrastructures with
PPP’s schemes for Bojonegara
Port project, Serang, Banten
Province. It was just the project
hampered by the ownership
issue of assets which are owned
by PT Pertamina. Then it was
followed by the Lamong Bay
project in Surabaya, East Java;
Tanah Ampo port, Bali; Maloy
port, East Kalimantan; and
Water Flow of West Surabaya
(APBS).
According to Mahendra, one of
the PPP’s projects in the port
sector that has been successful
is APBS, although with the direct
appointment to PT Pelindo III.
For Tanah Ampo Port, there
are actually two entities that
enter
pre-qualification,
but
there was only one that passed
then the determination to
enter the auction process is
still in progress. “But, based
on existing procedures, it
should be established by
Contracting Agency, Minister
of Transportation, and the
minister has not signed it yet,
it has not been to the stage of
the auction,” said Mahendra to
Partnership Magazine on late
October 2015.
PPP’s projects in the port sector
can run faster, the Ministry of
Transportation is now more
encouraging projects that come
from the entities’’ initiation.
Mahendra said, currently there
are a number of unsolicited
PPP’s projects, namely the Port
of Kuala Tanjung, North Sumatra,
which is managed by PT Pelindo
I; Port of Tanjung Perak / Gulf
Lamong Surabaya which is
managed by PT Pelindo III; and
a new port of Makassar, South
Sulawesi, which is managed by
PT Pelindo IV. (*)
Marine Transportation Edition | 2015 Sustaining Partnership | 13
International PPP
Port Development through
PPP Scheme in India
India has a coastline as far as 7,517 km. Aware of the length of the
coastline, the government built supporting infrastructure of sea
transportation. Many ports in India were built by the Public Private
Partnership’s scheme.
I
ndian government strongly
believe that the social and
economic
development
of a country can be
supported by the marine
transportation sector. Therefore
the development of marine
transportation infrastructure is
really important. India, is known
to have 12 main ports and about
200 supporting ports that exist
along the coast and islands
of the country. Unfortunately,
the performance of the main
ports optimized due to lack of
infrastructures of commodities
loading and unloading, less
supportive dock for larger ships
to anchor even management
issues resulted in inefficiencies.
In short, the cost of sending
commodities through sea is
very unnatural. In the ends,
Indian-made
products
can
not compete in international
markets.
To reduce the cost of export
of products made in India and
to streamline the port, the
government further encourages
the role of business entities to
get involved to build, develop
and run the main ports. This
policy was released in 1996 by
the Ministry of Transportation.
As a result, some of the main
14 | Sustaining Partnership Marine Transportation Edition | 2015
ports have been successfully
developed with PPP’s scheme.
The main ports which were
developed with PPP’s schemes
include, Kakinada Deep Water
Port (KDWP). In 1999, the
Government of Andhra Pradesh
(equivalent to local governments
in Indonesia -red) decided to
hand over the management of
ports through PPP’s scheme.
As a result, Kakinada Sea Port
Limited (KSPL) was chosen to
operate KDWP with the pattern
Operate - Maintenance - Share
- Transfer / Build - Operate Maintenance - Share - Transfer
(OMST / BOMST).
Other port was Gangavaram
Port which was also offered
by Andhra Pradesh through
the
PPP’s
scheme.
After
conducting an international
tender process, in 2002 a
International PPP
India developed many ports with PPP’s schemes, one of them is Nhava Sheva International
Container Terminal.
Mundra Port in India, the most successful
example of ports in India developed using
PPP’s scheme.
consortium of Gangavaram Port
Limited was chosen to build the
port. Then there is also Nhava
Sheva International Container
Terminal located in Mumbai that
uses PPP’s scheme. Australian
consortium, P&O Ports or now
called Dubai Ports, won the
contract of BOT Nhava Sheva
International Container Terminal
Mumbai for 30 years.
In India, the role of local
governments
like
Andhra
Pradesh in cooperation with
a business entity is quite
prominent. One of the local
governments in India that
successfully
run
PPP
to
develop marine transportation
infrastructure is Gujarat. Gujarat
was recorded as the first local
government which develop
the port with PPP’s scheme.
Gujarat also has the largest
port
development
projects
with PPP’s scheme in India,
namely the Mundra Port, Hazira
Port, Pipavav Port and Dahej
Port. The port serves export
and import of commodities of
coal, fertilizer, farm and garden
products, salt, LNG and PNG to
transportation of passengers.
Mundra Port itself then became
the first Indian port that is
capable to handle 100 million
tonnes of cargo. This record
confirmed Mundra Port in line
with other leading ports in the
world. This record beat the
ability of Kandla Port, owned
by the government in the Gulf
of Kutch. Gujarat government
entrusted the development
and operation of the Mundra
Port in a 30-year contract
to Adani Ports and Special
Economic Zone Ltd (APSEZ).
The success of Mundra Port
could not be separated from
its strategic geographic factors.
Gujarat is known for its access
to Rajasthan, Haryana, Punjab
and western Uttar Pradesh. This
location is also the gateway
to Europe, USA, Africa and
Western Asia.
The success of the Indian
government to develop its ports
with PPP’s scheme could not be
separated from its openness
for foreign investments. The
government also simplify the
licensing process and provide
various incentives for companies
engaged in the development of
the port sector. Noted, during
the years 2013 - 2014, there
have been 16 PPP’s projects
in the ports development
that were handed over by the
government to investors. In fact,
the government also announced
a policy 'The Maritime Agenda'
tha has been apllied since 2010
to 2020 for the development of
marine transportation as well as
an increase in capacity at the
ports. (*)
Marine Transportation Edition | 2015 Sustaining Partnership | 15
Profile of PPP’s Project
PPP’s scheme: Realizing International
Standard Port Development
The PPP’s scheme is applied to realize the Kabil CPO Port as an
International BP Batam Port. The toughest challenge lies in how to
attract investors into our country because we must compete with
Singapore and Malaysia.
A
s the island bordering
with Singapore and
Malaysia and is in
the territorial of the
Malacca Strait, Batam has its
own privileges. We can see
dozens of large ships passing
by from other countries around
western part of Indonesian
marine area from every parts
of the city of Batam. We can
also see the Statue of Water
Lion which is the symbol of
Singapore from the District
Sekupang, Batam.
With these advantages, 25
years ago, the government
of Indonesia took steps to
announce Batam as a Free Trade
Zone to attract investors and
businessmen to come to Batam.
Through BP Batam, the central
government continues to build
and develop a wide range of
facilities and infrastructures to
make Batam as a gateway into
Indonesia.
One of the infrastructures that is
currently being worked on is the
development of the CPO Kabil
Port. The government hopes
that in the future this port will
become the International Port
of Cargo and Container which
includes the activities of loading
and unloading commodities
and exporting and importing
commodities, as well as the
Pungur Lake port that serves
passengers in the country.
In the port master plan 2006,
the port which is located in
Tanjung Sauh, Batam is planned
to have a cargo terminal area
of 1,000 hectares (ha), which
is connected by road or bridge
along 7 kilometers from Kabil
Terminal.
The condition of Kabil CPO Port
currently has a dock length of
420 meters, with the capacity
of berthing ships up to 35,000
DWT, the storage capacity of
16 | Sustaining Partnership Marine Transportation Edition | 2015
tank of around 75,000 kilo liters
and warehouse area of 1,890
square meters. For the first
phase is planned to build a pier
wharf along 216 meters, 273.5
meters of trestle piers, 269
meters reclamation and safety
waves and 1,218 meters of pipe
rack construction.
According to the Head of
Planning Techniques BP Batam
Imam Bachroni, the purpose
of this port development is
to absorb the transshipment
market in the Malacca Strait
which
could
potentially
generate substantial profits. In
a day, there are 55 million TEUs
transported commodities from
passing ships in the Malacca
Strait, but unfortunately the
benefit is only enjoyed by
Singapore and Malaysia because
Indonesia does not have the
facilities to hold them. With
the development of Kabil CPO,
Batam BP hopes to capture four
million TEUs of commodities
fromthe existing market.
According to Imam in 2012,
actually
this
project
was
prepared in cooperation with
Profile of PPP’s Project
PPP’s scheme along with the
Pelindo II with an investment
of IDR 7 trillion. But in the
process of preparation for
implementation the investment
number has gone up to IDR 8
trillion because of inflation and
other external factors. That is
why, the BP Batam is currently
reviewing the feasibility study
conducted by Pelindo II to be
adapted to current conditions.
"Within one or two months
ahead we will continue to finalize
and review the feasibility study
so that in 2016 it will ready to
be offered to the private sectors
with Public Private Partnership’s
scheme," said Imam.
Imam explained that PPP is the
most appropriate scheme to
be applied in the construction
of infrastructure in Batam
considering the island has no
natural resources as other areas
so that economic progress
is highly dependent on the
completeness of infrastructure.
"In other areas, people build
the infrastructures after they
need them. While in Batam,
the facilities are built to attract
people to come, "he explained.
Furthermore, he said that BP
Batam has developed the PPP’s
scheme since 20 years ago
because it can not rely on State
Budget.
In contrast to other areas
which the investment obstacles
are still on land acquisition,
Batam does not have problems
in land acquisition because BP
Batam got Rights Management
(HPL) of land from the central
government.
So
,whenever
there are investors who are
ready to invest, BP Batam has
to published Building Right on
Land (HGB) only. And when
the concession period runs
out, HGB will be returned to
BP Batam to be extended or
transferred to other parties
depending on the result of the
evaluation.
Especially, for the development
of the Port of Kabil, BP Batam
still has the land constraint
because of the location of
Tanjung Sauh, Batam is located
between the islands of Batam
and Bintan that some part of
the land has not been included
into the territory of Free Trade
Zone and Free Port (KPBPB)
Batam. But Imam convinces
that he has negotiated with the
local government to carry out
the land acquisition so that the
investors do not need to worry.
The toughest obstacle in the
development of infrastructure
through PPP’s scheme in
Batam city lies precisely in the
strong climate of competition
among countries. There are
investors who are reluctant to
invest because they are not
sure that Batam can compete
with Singapore or Malaysia,
which has full facilities and high
support from their government.
Thus, the toughest challenge
of BP Batam in implementing
the PPP’s scheme is to make
a development project which
is financially feasible so that
investors continue to come to
help the development in Batam.
(*)
Marine Transportation Edition | 2015 Sustaining Partnership | 17
PPP’s Project Profile
Kuala Tanjung Port
Is Ready to Serve
the World
High logistics costs in traffic flow of commodities and services
through the land transportation make the government under
President Joko Widodo keep improving. One of the main economic
development programs is to build a marine highway.
O
ne
of
important
elements in marine
transportation
is
the presence of the
port. In February 2015, Jokowi
inaugurated the groundbreaking
development of the Port of
Kuala Tanjung in Batuabara
District, North Sumatra, which
is conducted by PT Pelabuhan
Indonesia (Pelindo) I. Aside
of Bitung, this port will be a
multipurpose
terminal
and
an international hub which
supports the Industrial Zone
development project in Kuala
Tanjung and Sei Mangkei.
Located within 27 kilometers
from the Special Economic Zone
(SEZ) Sei Mangkei, ensures the
important role of this port for
the development of industrial
zones. The Port of Kuala Tanjung
has a natural depth of up to 14
meters Low Water Spring (LWS)
with a distance of 2.7 kilometers
from the coast.
Based on target of Pelindo I,
Kuala Tanjung construction will
be completed in 2016. Director of
Pelindo I Bambang Eka Cahyana
stated, in November 2015 the
progress of construction of
the port is projected to have
reached 30-40 percent and 54
percent by the end of the year.
The development of this port
will be accelerated. "By the
end of July, the progress of the
construction of Kuala Tanjung
is up to 7%. It is targeted to
operate by the years 2017-2018.
This port will transport industry
products from Kuala Tanjung
Industrial Area, "said Bambang.
The budget allocation for
international port projects with
a capacity of up to 50 million
TEUs is IDR4.9 trillion for the
early stages with a total of IDR42
trillion for the entire cost of the
investment project. Bambang
claimed to have a strategy
to prepare a budget for the
construction of the port. Pelindo
I has possessed a total of IDR 8
trillion consists of IDR4.5 trillion
of asset revaluation process
results and IDR1.5 trillion of bond
issuance plan.
Not only that, Pelindo I also
involves other SOEs, such as
PT Wijaya Karya (Persero) Tbk
and PT Savings and Retirement
Insurance (TASPEN) to build
18 | Sustaining Partnership Marine Transportation Edition | 2015
the largest port in Indonesia's
western part. The fund will be
used to build a 400-meter long
dock and a 2.7 kilometers trestle.
The facilities to be built are
storage tanks with a capacity of
145 thousand tons and container
yard with a capacity of 400
thousand TEUs.
To take advantage of the storage
tank, PT Prima Multi Terminal
as a subsidiary of Pelindo I
has signed a Memorandum of
Understanding (MoU) with PT
Tolan Tiga Indonesia. The MoU
includes the scheduling of the
construction of the first CPO
terminal by Prima Multi and
assurance from Tolan Tiga on
the commodities amounted to
10 thousand to 15 thousand tons
per month which requires five
storage tanks with a capacity of
3 thousand tons per unit.
In the second stage, the dock
length will be increased to 1,000
meters with the construction
of an industrial area of 1,000
hectares. Then, there will be
revamping on the loading and
unloading activities from Kuala
Tanjung to several worldwide
ports in the third stage. In the
end, Kuala Tanjung will be
developed as a modern port city.
Important port for the World
Overall, Pelindo I is expected
to have up to IDR 8 trillion to
build the industrial area of 1,500
hectares in the Port of Kuala
Tanjung. Furthermore, the port
is expected to cost up to IDR42
trillion.
Director of Ports and Dredging
PPP’s Project Profile
Directorate General of Sea
Transportation Ministry Sibarani
Mauritz said the construction
of the Port of Kuala Tanjung
used
the
Public
Private
Partnership’s scheme, same as
the construction of other 23
ports throughout Indonesia. This
is done to support the existence
of the marine highway by
establishing a Port Enterprises
(BUP). “PPP’s scheme is needed
to fill the State Budget shortfall.
It needs effort in order to attract
the private sector to invest in the
port, “said Mauritz.
The port which will become an
international hub is expected
could overcome the obstacle
that have been faced such as
the limitations of the depth and
narrow port groove so that it
is only capable of serving the
loading and unloading of small
tonnage ships.
The port which will become an
international hub is expected
could overcome the obstacle
that have been faced such as
the limitations of the depth and
narrow port groove so that it
is only capable of serving the
loading and unloading of small
tonnage ships.
To meet the targets as an
international port, Pelindo I
has signed the main points of
agreement with the Port of
Rotterdam Authority on August
27, 2015. The signing was done
by Bambang and CEO Port of
Rotterdam, Allard Castelein.
The
main
agreement
is
related to the development
The process of building the Port of Kuala Tanjung in Batubara District, North Sumatra.
of Kuala Tanjung project and
Port
Management
Services
Agreement (PMSA II). At 13
October 2014, PMSA I has been
signed in the Netherlands. After
the signing of PMSA I, Port
of Rotterdam Authority has
also completed and submitted
reports of Port Model Analysis
(PMA) and port management
program.
In the PMA report, the Port
of Rotterdam Authority has
assessed the port characteristics,
identified business opportunities,
developed strategy of potential
market
development
and
recommended methods in the
development of the Port of
Kuala Tanjung as integrated
industrial gates with the area of
Kuala Tanjung, Sei Mangkei, and
Belawan.
While the PSMA II, Port
of Rotterdam will provide
experts and consultants in the
commercial, operational, and
financial aspects to develop the
port and management of certain
additional services.
According to Bambang, the
memorandum of understanding
with the Port of Rotterdam
is very important for Pelindo
I for several reasons. First,
it supports Marine highway
Program launched by President
Joko Widodo. Secondly, the
project is aimed to establish
ports connection in western
Indonesia that will improve
logistics
performance
and
competitiveness in Indonesia.
“Third,
this
project
will
contribute to economic growth,
especially the growth of regional
economies in which the project
is developed,” said Bambang.
Director of Pelindo II, RJ Lino
said that, as an international hub
port, Kuala Tanjung must have
a primary tenant. Lino equate
Kuala Tanjung with Tanung
Pelepas
Singapore
which
currently has a number of major
tenants such as China Shipping,
Maersk Line and Evergreen
Shipping. (*)
Marine Transportation Edition | 2015 Sustaining Partnership | 19
PPP’s Project Profile
IDR365 Billion budget to Integrate the Port
PENGEMBANGAN
PELABUHAN BITUNG Zone
TERINTEGRASI (KEK)
DENGAN
of Bitung with Special
Economic
KAWASAN EKONOMI KHUSUS (KEK) BITUNG
Marine transportation has
become one of the foundations
in the traffic of commodities
and services, including the
presence of marine highway
that can support Indonesia as
the world’s maritime pivot in the
year 2045.
O
ne of the elements
in marine highway
is the existence of
a
reliable
ports.
Currently, Indonesia has 24
strategic
ports
supporting
marine highway, five- hub ports
and 19 feeder ports which are
spread all around Indonesia, one
of them is the Port of Bitung in
North Sulawesi.
Bitung
Port
that
serves
passengers and containers is
managed by PT Pelabuhan
Indonesia IV (Persero). Manager
of Planning and Operational
Pelindo IV Sardi said Bitung
Port will be directed into an
international hub.
"For that, we conduct the
development of the current Port
of Bitung which is located in
Tanjung Merah that will become
Special Economic Zone and is
connected with the industry,"
says Sardi during the interview
with Partnership Magazine, midNovember 2015.
Bitung Port is located on the
island of Lembeh in Bitung City
with the dock area of 1,440
Railway Planning
RencanaJalurRelKeretaApi
Bitung
Port
PelabuhanBitung
BitungRencanaPengembanganPelabuhanBitung
Port Development
Planning in KEK Area
diKawaasanKEK
11/29/15
meter and container yard (CY)
of 5 hectares. While the existing
Bitung
container
terminal
facilities is the dock area of 591
meters, CY of 5.5 hectares, 4
units container cranes (CC), and
8 units Rubber Tyred Gantry
(RTG).
Based on data from Pelindo IV,
Port of Bitung in 2014 has an
installed capacity of up to 300
thousand TEUs per year and a
volume of 200 thousand TEUs.
The average growth reached 14
percent and a projected growth
reached up to 10 percent for
the period 2015-2019. This year,
revitalization of the Port of
Bitung was conducted so for the
period 2015-2022 an estimated
installed capacity will reach up
to 1 million TEUs per year; in
2025 will reach up to 1.5 million
TEUs per year; and in 2030 will
reach up to 3.2 million TEUs per
year.
20 | Sustaining Partnership Marine Transportation Edition | 2015
Sardi explained, the Port of
Bitung is being developed at
Tanjung Merah, Bitung City,
which is about 6 kilometers
from the existing port. Port in
Tanjung Merah is located in a
Special Economic Zone (SEZ)
so that will be built a number
of supporting infrastructures
such as construction of marine
highway and railway.
"There are several alternative
connectivities from the SEZ
to the port, those by building
highway access from the Tanjung
Merah that are in the SEZ to the
location of existing port or by
building railways," says Sardi.
According to Sardi, Bitung Port
development carried out through
Government Capital (PMN) of
IDR365 billion, including the
addition of equipment. The
development plan is still in the
stage of the licensing process
and will begin to be constructed
PPP’s Project Profile
Port of Bitung in North Sulawesi.
in 2016. "It is planned to be
completed in stages, first in 2017
and some of them can be used
already. Then the reclamation
will be done until the third stage,
which is in 2019, "says Sardi.
Director of Ports and Dredging
Directorate General of Sea
Transportation
(DGST)
of
Ministry
of
Transportation
Mauritz Sibarani explained, the
directorate allocated budget
to improve port facilities and
shipping
channel
dredging
activities or harbor pools. For
State Budget 2016, there are a
total of 105 locations which will
be constructed, including the
Port of Bitung.
"However, to achieve maximum
results, the role of the private
sector is still needed to build
infrastructure and industrial
areas especially outside Java
Island. The shipping companies
will serve the marine highway
route, "said Mauritz.
Through
Public
Private
Partnership’s scheme, Mauritz
said, business entities can
engage in building both main
and supporting ports, and
operates the ports within the
scope of the concession.
With the development of the
Port of Bitung in Tanjung Merah,
it is expected to be an increase
in traffic and capacity. Referring
to the data of Pelindo IV, traffic
in Tanjung Merah is estimated
to penetrate 1.37 million TEUs in
2025 and to 2.76 million TEUs in
2030. The installed capacity will
reach 1.5 million TEUs in 2025
and 3.2 million TEUs in 2030.
The infrastructures in tanjung
Merah are container yard
covering an area of 15.7 hectares
in 2025 and to 16.3 hectares in
2030, with a dock length of
1,930 meters in 2025-2030.
Existing equipments in tanjung
Merah are 15 units of container
cranes in 2025 and 28 units in
2030, 35 units of transtainer in
2025 and 60 units in 2030. For
the container terminal, the depth
of the pool reaches 11 meters
LWS; the dock area of 358.5
meters; 2 docks measuring 255
meters; container yard of 30
thousand square meters; and a
second container yard area of 22
thousand square meters.
Bitung port in Tanjung Merah will
be supported by two important
infrastructures, those are the
construction of marine highway
and the railway. Marine highway
execution project is planned by
conducting four stages such as
developing dock measuring 131
x 35 square meters; reclamating
and retaining of 5 hectares
area; pavementing 5 hectares
yard; and constructing trestle
measuring 74 x 11.5 square
meters. (*)
Marine Transportation Edition | 2015 Sustaining Partnership | 21
Reportage
Marine Highway, Realizing
Connectivity of Logistics Distribution
Disparity in the price of commodities to eastern Indonesia is arguably lame compared to those in
western Indonesia. High distribution costs become the cause of the high price of commodities in
eastern Indonesia. Therefore, marine highway was chosen by government to realize the connectivity of
logistic distribution between western and eastern Indonesia.
B
ased on Sea Transport
Connectivity
Index,
Indonesia still shows
high gaps in logistics
connectivity in each region.
For example, Jakarta and other
western Indonesia, normally
have
strong
connectivity
index. As for the eastern
Indonesia,
the
connectivity
index is very low. Meanwhile,
the condition of national marine
transportation based on the
Global Competitiveness Index
2014 shows that Indonesia is at
number 77. The number is still
worse than the connectivity
index of Malaysia and Thailand.
marine transportation is a favorite
choice for many countries for
logistics
distribution,
since
the marine transportation can
transport logistics in large
quantities and are relatively
affordable compared to air
transport which is too limited and
costly. Realizing these conditions,
the government develops marine
highway infrastructure as an effort
to realize sustainably equitable
development. Marine highway
is perceived as a concept which
makes the sea as an effective tool
for connectivity among regions
by ships which sail regularly from
western to eastern Indonesia.
According to the Director of
Transportation
of
National
Development Planning Agency
(Bappenas) Bambang Prihartono
marine highway is a concept
to reinforce shipping lanes
22 | Sustaining Partnership Marine Transportation Edition | 2015
in Indonesia focusing on the
eastern part. Realization of
marine highway begins with
the determination of the two
port hubs (national) based on
the distribution of the regions
as well as cargo and be able to
serve large commercial ships
above 3,000 TEUs or equally to
Panamax ships of 6,000 TEUs.
Two specified port hubs are the
Port of Kuala Tanjung in North
Sumatra and the Port of Bitung
in North Sulawesi. "In principle,
the development of Marine
Highway or Pendulum Nusantara
is the arrangement of the existing
(linear) route, which needs other
aspects to establish effective
Maritime transportation system
in Indonesia," he said.
Reportage
In addition, until 2019, the
marine highway covers the
development of 24 strategic
ports in Indonesia, which will be
developed together with StateOwned Enterprises namely IPC
with an investment of IDR 243.6
trillion, the development of short
sea shipping (IDR 7.5 trillion),
the construction of public cargo
facility and bulk (IDR 40.6
trillion). Beside that, it conducts
the development of commercial
and non-commercial ports (IDR
189.6 billion), the development
of multi-modal transportation
to the port (IDR 50 trillion), the
revitalization of the shipbuilding
industry (IDR 10.8 trillion), the
ship needs for 5 years (USD 101,
7 trillion), the need for patrol
boats (USD 6 billion), and the
accelerated development of long
unfulfilled (IDR 50 trillion) as well.
The
Government,
through
National Development Planning
Agency has published a Public
Private
Partnership
(PPP)
Book 2015 that includes 7 port
development projects in potential
category. The ports are Port of
Maloy, East Kalimantan, Port of
Kuala Tanjung, North Sumatra,
Expansion of Kabil Port, Batam,
Garongkong and Makassar port,
in South Sulawesi, Port of BauBau, in Southeast Sulawesi and
Port of Bitung, in North Sulawesi.
Indirectly, the inclusion of such
projects in the PPP Book does
certainly contribute to the
marine highwayprogram of the
government.
Meanwhile, Director General of
Marine Transportation (Director
General of Sea), Bobby Mamahit
explained that the concept of
marine highway is the logistics
distribution lanes by ships from the
edge of Sumatra island to Papua.
For his part, called Bobby, has
established six marine highway
ships routes launched this year.
It was based on the decision
of
the
Directorate-General
(DG) of Marine Transportation
No AL 108/6 / 2DJPL - 15 of
route network organization of
public service obligations, for
the transport of commodities
related to the implementation
of tmarine highway fiscal year
2015. The six marine routes
are the Jakarta-Serui- NabireWa s i o r - M a n o k w a r i - B i a k Jakarta, Surabaya-Tual-FakfakK a i m a n a -Ti m i k a - S u ra b aya ,
Surabaya-Tual-Dobo-AgatsMerauke-Saumlaki-Surabaya,
Surabaya-Maumere-ReoLewoleba-Rote-Sabu-WaingapuSurabaya, Jakarta-Tobelo-GebeBuli-Ternate-Galela-Jakarta and
Jakarta-Kijang-Letung-TarempaNatuna-Midai-Serasan-Jakarta.
Beside the route, said Bobby,
it also ordered 39 ships worth
1.4 trillion after on August and
October has ordered 32 pioneer
ships. "This procurement of
pioneering ships was done to
support marinehighway program
launched by the government, in
order to accelerate economic
growth
and
ensure
the
connectivity among the islands,"
he concluded. (*)
Marine Transportation
Edisi Perkotaan
Edition | 2015 Sustaining Partnership | 23
Education
Five Policies in Marine Sector
to Make Indonesia as the
World’s Maritime Pivot
(Antara Foto/Widodo S Jusuf)
President Joko Widodo while visiting Tanjung Priok Port to review the process of development and expansion of the port, especially the Kalibaru Port
related to the implementation of marine highway program.
Chamber of Commerce and Industry (Kadin) said, the potential value
of Indonesian maritime reached USD171 billion, or the equivalent
of IDR2.046 trillion, with an exchange rate of IDR12,000 per
USD. The projection consists of coastal areas of IDR670 billion,
biotechnology of IDR480 trillion, petroleum of IDR252 trillion and sea
transportation of IDR240 trillion.
T
he government in the
era of President Joko
Widodo
made
the
program of Indonesia
as the World’s Maritime pivot
(PMD) in 2045. A number
of
policies
in
supporting
infrastructures development in
order to achieve those targets
continues to be arranged.
As a first step, Indonesia still
needs to fix the connectivity
index rating. The rating in the
marine transportation sector
in 2014 was increased to 77
compared to the year 2012 is
in position 104. The score of
Logistics Performance Index
(LPI)of
Indonesia increased
0.14 compared to the year 2012
so that the global ranking rose
from 59 to 53. Despite there
was an increase, the ratings are
much lower than Thailand and
Malaysia.
The
challenge
is
the
implementation of government
programs in logistic sector.
Connectivity index is measured
by a factor of registered ships,
carrying container capacity, the
maximum size of the vessels,
24 | Sustaining Partnership Marine Transportation Edition | 2015
the number of ship visits, and
shipping registered companies.
The Center for Coastal and
Marine
Resource
Studies
(PKSPL) Institute for Research
and Community Empowerment
(LPPM), Bogor Agricultural
University
(IPB)
Tridoyo
Kusumastanto said, it requires
marine policy (ocean policy)
that include the entire maritime
sector to become a countrybase maritime.
The elaboration of ocean
policies are the ocean economy
policy,
ocean
governance
policy,
ocean
environment
policy, maritime culture policy,
and maritime security policy.
"Indonesia should be able
to do the exploration and
exploitation
of
natural
Education
resources in the sea outside
the territorial jurisdiction of
Indonesia. In the context of
the other economies, Indonesia
should take advantage of the
strategical Malaka strait and
three Indonesian archipelagic
sea lanes (ALKI) as the source
of state and people’s revenue,
"said Tridoyo. ALKI was set to
link two free waters, the Indian
Ocean and the Pacific Ocean
which includes ALKI across
the South China Sea-Strait
Karimata-DKI-Sunda
Strait;
ALKI II-Sulawesi Sea crossing
the Strait of Makassar-Luatan
Flores-Lombok Strait; ALKI III
cross-Strait Pacific Sumadera
Maluku, Luat Ceram-Banda Sea.
Tridoyo who is Professor of IPB
Economic Marine Policy said,
the government should develop
a national naval force to control
the international shipping and
to develop competitive and
efficient ports. The value of
marine area as projected by
Kadin, said Tridoyo, is also
very decisive and supportive
to the growth of Indonesian
marine sectors. For marine
transportation
sector,
the
number of ship visits to all ports
experienced fluctuation with a
positive trend.
Involving Private Roles
Tridoyo said the development of
maritime potency in Indonesia
cannot only be done by the
government.
The
investing
value is fairly large, as well
as infrastructure projects in
general, can not be done if it
relies only on the state treasury.
"Private sector involvement can
encourage a conducive business
climate to sustainable economic
growth. The Government should
have a clear policy direction
in developing marine-based
economy, "said Tridoyo.
There
are
seven
points
mentioned by Tridoyo that
government needs to focus
on building a maritime-based
economy. One of them is
improving the role of private
sector in making investments
in the maritime field, including
marine
transportation.
"Increased investment in the
marine and maritime field is
conducted through progressive
fiscal and monetary policies. Its
base of national interest so that
investment grows, "he said.
The involvement of private
companies in the form of Public
Private Partnership (PPP) to
develop marine transportation
in Indonesia is currently directed
towards
the
development
of marine highway, reliable
and integrated harbors, the
certainty of the routine and
scheduled
cruise,
effective
inland access and development
of commodities transhipment
services among countries and
continents.
"Marine development is complex
because it involves multisectors, the marine industries,
marine transportations, marine
constructions,
and
marine
services therefore it should
involve variety of state agencies,
the private sectors and the
communities to determine the
success of marine development,"
he said. (*)
IDENTIFICATION OF 24 STRATEGIC PORTS SUPPORTING MARINE HIGHWAY
24 Strategic Ports Supporting Marine Highway | 5 Hub Port | 19 Feeder Port |
Indication of Financing Needs
"The size of ships sailing in
the waters of Indonesia grew
larger and the value of trade
through marine transportation
services is increasing. It needs
the
effectiveand
efficient
development in the marine
transportation sector, "said
Tridoyo.
Marine Transportation Edition | 2015 Sustaining Partnership | 25
Figure
PPP’s implementation of the
Transportation Sector: Required
Completion of the Technical Guidelines
PPP’s scheme is an integral part with the infrastructure because it
is one of the alternatives of financing infrastructure. The technical
instructions related to the operational mechanisms are required to
make the implementation clearly.
Ir. Bambang Prihartono, MSCE,
Director of Transport Ministry of National
Development Planning (PPN) / Bappenas
A
s
technocrats
in
transportation,
the
task of Ir. Bambang
Prihartono,
MSCE
is
very
complex.
Beside
collecting all the proposals from
various parties, he also must
formulate these proposals into
a draft policy of development
transportation
sector
that
supports the development of
national economy and improves
the competitiveness of the
nation to welcome AEC (ASEAN
Economic Community) which
will be implemented in 2016.
"Transportation has a very
important role in supporting
national economic growth and
improving
competitiveness
of Indonesia in the era of free
market with the implementation
of MEAs in 2016", said the
Director of Transport Ministry of
National Development Planning
(PPN). Beside that, the role of
the transportation sector is also
needed in order to overcome the
Telaga Pungur Port Batam
gap and encourage equitable
development results and prevent
the social and political conflicts
that arise in the border region.
Bambang is very enthusiastic
about
the
accelerated
development of marine highway
by
the
administration
of
President Jokowi .As a maritime
country, Indonesia basic mass
transit needs to be returned to
the sea. To make the marine
highway systems run smoothly,
it requires efficient supporting
means, so, the development
of transportation systems can
not be done per mode sector
but must be integrated among
modes to create an affordable
cost for the society.
26 | Sustaining Partnership Marine Transportation Edition | 2015
To build an effective transport
system
requires
separation
between the regulator and
operators in the transportation
sector so that coordination is
easier. As stipulated by law, the
separation of the functions of
regulator and operator becomes
priority in RPJMN years 20152019. Bappenas hopes in
the future the government
only functions as a regulator,
while the management of
the
transportation
facilities
are handed over to nongovernmental
organizations
both private entities or SOEs.
This
cooperation
can
be
realized through the mechanism
of Public Private Partnership
(PPP).
FIGURE
PPP’s scheme is an integral part
of the infrastructure because
it is one of the alternatives
in financing infrastructures.
Cooperation
between
the
Government
and
business
entities is not necessarily
delegating all assets from the
public to private investors
but the transfer of risks of
provision of public services
from the government to the
private sectors who will receive
compensation in the form of
commercial operation rights.
In accordance with public needs,
regulations in the procurement
of transportation infrastructure
in cooperation with the private
sector continue to be equipped
with the announcement of
the Presidential Decree No.
81/2001 updated by Presidential
Decree No. 42/2005, and then
by Presidential Decree No.
12/2011. However, KPBU or
PPP’s scheme in the provision
of transportation infrastructure
is not well developed so far,
whether the initiator is from
the government (solicited) or
private parties (unsolicited).
According
to
Bambang
Prihartono, some problems in
transportation projects funding
through KPBU or PPP’s scheme
are (1) The scarcity of projects
that are commercially prepared
and bankable, (2) lack of
understanding and experience
of the bureaucracy in the process
of PPP, (3) lack of a clarity of
scheme of government support,
(4) absence of incentives and
the "on-top" budget to advance
PPP, (5) existing Central Unit
of PPP had not been showing
good performance in promoting
PPP’s infrastructures projects
and delivering them to the
stages of the transaction, and
(6) there are some institutions
that have not yet formed as
mandated by law, such as
multimodal business entities,
business entities of facilities
and business entities of railway
infrastructure.
The
alternative
financing
of PPP’s scheme has not
been responded well by the
government or private parties
because of the complexity of the
procedures that must be taken.
In addition, technical guidance
related to the operational
mechanism and the system of
financing through PPP are still
too general so it is hard to be
understood by stakeholders.
That is why the more detailed
implementation guidelines are
required.
This is important for the
implementation
of
the
guidelines to be drawn up in
more detail so that the steps
that must be taken to obtain
financing PPP more clearly. And
the most important process of
improvement of the technical
guidelines is the necessity to
wider dissemination so that
transportation
stakeholders
know and understand the
mechanisms of PPP. (*)
Barelang Bridge, Batam
Marine Transportation Edition | 2015 Sustaining Partnership | 27
DIRECTORATE DEVELOPMENT OF PUBLIC-PRIVATE PARTNERSHIPS
Lembar
Port, West
Lombok,
West
Nusa Tenggara
(NTB)
28 | Sustaining
Partnership
Marine
Transportation
Edition | 2015