Stakeholders demand end to state monopoly

The Jakarta Post, Jakarta | Wed, 12/09/2009 9:45 AM

A load off my mind: Loading and unloading activities at Tanjung Priok port in Jakarta. State port operator PT Pelabuhan Indonesia (Pelindo) II plans to develop Tanjung Priok port into an international hub port with docks 18 meters deep, starting next year. JP/R. Berto Wedhatama

Stakeholders in Indonesia’s shipping industry have requested the government to review a regulation that maintains the monopoly of state firms in the delivery of port services.

The stakeholders, including members of the association of dock workers and the Indonesian Chamber of Commerce and Industry (Kadin), argue that the regulation can be seen as a violation of the newly amended shipping law.

A 2009 Transportation Ministry regulation “implicitly” protects the monopoly of state firms in all services provided at ports, including stevedoring, Kadin sea transportation committee deputy chairman Arthur Warokka said Tuesday.

All stevedoring activities (the loading and unloading of goods) at 112 commercial ports, including 25 “strategic ports“, across Indonesia are now managed by four state-owned companies, namely PT Pelindo I, PT Pelindo II, PT Pelindo III and PT Pelindo IV, which hire private stevedores as partners in their operations.

“It seems the government is reluctant to open stevedoring business to private firms. This regulation contradicts the 2008 Shipping Law which is aimed at ending monopolistic practices in shipping,” Arthur said.

Association of Indonesian Stevedoring Companies (APBMI) chairman Bambang Ketut Rahwardi shared Arthur’s sentiment, saying he was disappointed with the government.

“The shipping law clearly stipulates that private firms are allowed to take part in port business, including stevedoring,” he said.

At present, private stevedoring agencies only benefited from outsourcing programs carried out by state companies, Bambang said. About 85 percent of stevedoring activities were provided through outsourcing, he said.

“At present, our association represents 843 stevedoring agencies across Indonesia, employing more than 100,000 people. Just imagine how vital our role is,” he said.

Most APBMI members operate at Indonesia’s main ports, namely Tanjung Priok in Jakarta, Makassar Port in South Sulawesi, Belawan Port in Medan, North Sumatra and Tanjung Perak Port in Surabaya, East Java.

Between January and September, 2,767,594 twenty foot equivalent units (TEUs) of containers arrived and departed at Tanjung Priok, Indonesia’s biggest port and also the gateway to 65 percent of Indonesia’s exports and imports.

The port is targeting to manage up to 3,8 million TEUs of containers by expanding its three container facilities — the Jakarta International Container Terminal (JICT), the Koja Container Terminal and the port’s conventional terminal.

APBMI East Java chapter chief Prijanto said the poor quality of services and high costs in ports today were mainly the result of Pelindo’s monopolies.

“We are currently only Pelindo’s subcontractors. We are willing to improve our service quality but we are limited because the current stevedoring authority is Pelindo,” he said.

If port businesses were open to private firms, it would automatically create competition, improve the quality of services, efficiency and costs, Prijanto said.

“We are ready to compete and invest if allowed,” he said.

The chief of Kadin’s sea transportation committee, Carmelita Hartoto, said she understood that the government might have forgotten about mentioning private stevedores in the regulation.

“Therefore, we would like to ask the government to at least guarantee, in a transportation minister decree, the private stevedores’ right to operate,” she said.

Sea Transportation Director General Sunaryo denied that the government was reluctant to let private firms operate ports’ stevedoring activities.

“We basically will not close the door to private companies. That is our commitment … any disputes regarding the regulation can be discussed to settle misperceptions” he told The Jakarta Post via text message. (bbs)