Govt Sets Out Maritime Dream

.thejakartapost.com– The government will need to invest a mammoth Rp 699 trillion (US$57.40 billion) for its sea-highway program between 2015 and 2019 in support of President Joko “Jokowi” Widodo’s maritime-axis doctrine.

National Development Planning Board (Bappenas) deputy chief for infrastructure Dedy S. Priatna said in a press conference on Friday that the investment included Rp 243.6 trillion to develop a total of 24 commercial seaports across the archipelago, Rp 198 trillion to build 1,481 non-commercial seaports and Rp 101.7 trillion to procure vessels.

Under the initiative, Dedy said the government had set a target of reducing the country’s logistics costs from the current 23.5 percent of GDP to 19.2 percent in 2019.

“The investment will not be fully financed by the state budget. It can also be financed by state-owned enterprises and the private sector,” Dedy said.

Dedy said the maritime-infrastructure projects were aimed at encouraging the development of 15 industrial areas across the country, which would be developed over the next five years.

“This, however, remains a draft and it may be a subject to change. Between Jan. 15 and Jan. 20 next year, the President will issue a regulation that will bind the development plan,” he said.

He also said that within the next three or four years, the government would designate Kuala Tanjung in North Sumatra and Bitung in North Sulawesi as the country’s international hubs, a plan introduced in the National Logistics Blueprint (Sislognas) of 2010-2025.

“The plan to allow foreign ships to access Kuala Tanjung and Bitung will not be realized any time soon since these ports are not ready yet,” Dedy said.

“Obviously it will also depend on the President, whether he will allow [foreign ships] to enter our seas or not.”

Investment in five-year sea highway plan to top Rp 699 trillion. Plan includes development of 24 commercial seaports, 1,481 non-commercial seaports and vessel procurement 15 industrial areas will also be developed over next five years