Govt Sets Out Maritime Dream

Meanwhile, Indonesian Logistics and Forwarders Association (ALFI) head Yukki Nugrahawan Hanafi said the association fully supported the government’s sea-highway plan, however, he said intermodal connectivity should be the government’s main focus in reducing logistics costs.

“We are supporting the government’s sea-highway concept. However, the government should not forget that land transportation currently plays the biggest role as 80 percent of transportation users use land transportation,” Yukki told The Jakarta Post.

Yukki also said the government’s plan to designate Kuala Tanjung and Bitung as the country’s international hubs should be carefully thought through as state-owned port operators had invested a great deal in building ports across Java.

“The government has also encouraged the private sector to construct Cilamaya Port in Karawang. Is the plan still on or not?,” Yukki said.

“I really think the government should not set such ambitious targets as there are a lot of aspects that need to be considered,” he continued.

Separately, the Indonesian Chamber of Commerce and Industry’s (Kadin) deputy head for logistics affairs, Carmelita Hartoto, said the problems surrounding logistics costs were not only about the lack of infrastructure, but also the seaports’ fees.

She said port fees accounted for more than 50 percent of shipping costs from one container yard to another.

“We support the government’s plan to develop 24 seaports. We are ready to participate if given the chance. But, we hope that the development of the ports won’t trigger further increases in fees,” Carmelita, who is also the chairperson of the Indonesian National Shipowners Association (INSA), said.