Maritime Infrastructures to Reduce Logistics, Transportation Costs, President Jokowi Says

President Jokowi attends the opening of the 2017 National Coordination Meeting on Maritime Sector on Thursday (4/5) at the Sasana Kriya, TMII, East Jakarta

President Joko “Jokowi” Widodo asserted that the Government will continue to make breakthoughs on maritime sector in order to catch up with other countries and to evoke our marine potentials so that its greatest benefits can be felt by our people.

The President added that the breakthoughs in maritime infrastructures, such as the development of sea tolls and ports particularly in eastern Indonesia leads to a 20%-25% price decline, and its benefits have been felt by the people.

“I think it is such a quite significant decline. And, when the routes and courses increase, I believe the price will be much lower,” President Jokowi said in a remarks at the opening of the 2017 National Coordination Meeting on Maritime Sector on Thursday (4/5) at the Sasana Kriya, Taman Mini Indonesia Indah (TMII), East Jakarta.

Relating to the development of major ports, the President reminded all that since two weeks ago, ships with 10,000 TEU capacity were able to dock at Tanjung Priok Port.

“It has never happened before in more than a decade, but two weeks ago those big ships docked there. There will be reduction of logistics and transportation costs because we don’t need to conduct transhipment to other countries anymore,” President Jokowi said adding that two weeks ago, CMA CGM’s large cargo ship carrying large amounts of containers entered the Port.

In the future, when the consolidation between ports is well-implemented, the President ensured that there will be more large cargo ships docking in Indonesia’s ports because the ports already have the capacity.

President Jokowi hopes that the development of a new major port, Kuala Tanjung in North Sumatra, can be finished by this year. However, the President reminded all to cooperate in managing the Port with other major ports which have international network rather than self-managing the Port. Because without cooperation, it will be hard for us to catch up our sea transportation with other countries.

The most possible scheme is by establishing cooperation between Kuala Tanjung Port and state-owned port operator Pelabuhan Indonesia (Pelindo), Rotterdam Port, as well as Dubai Port for the purpose of the logistics. That synergy will be our biggest power, the President added.

“In this era, cooperation without economic skills will not result in efficiency. And, without cooperation, we could not generate good and competitive prices,” President Jokowi stated.

Also on that occasion, President Jokowi instructed Coordinating Minister for Maritime Affairs to focus on paying attention to the development of maritime industry, be it those relating to shipyard, shipping, shipping services industry, and downstreaming.

“I want those areas to become our focuses in doing our tasks. I think the Coordinating Minister should concentrate on this matter. This requires our attention,” the President said.

Also attending the event were Coordinating Minister for Maritime Affairs Luhut B. Pandjaitan, Minister of Marine Affairs and Fisheries Susi Pudjiastuti, Cabinet Secretary Pramono Anung, Minister of Tourism Arief Yahya, Minister of Energy and Mineral Resources Ignasius Jonan, Minister of Transportation Budi Karya Sumadi, and Minister of National Development Planning (PPN)/Head of National Development Planning Agency (Bappenas) Bambang Brodjonegoro.(UN/OJI/ES)(RA/MMB/YM/Naster)