President Jokowi: Pelindo Merger Expected to Boost Indonesia’s Competitiveness
President Jokowi delivers remarks at the inauguration of Pelindo merger and Wae Kelambu multipurpose terminal at Labuan Bajo port, West Manggarai, East Nusa Tenggara, Thursday (10/14). Photo by: PR of Cabinet Secretariat/Rahmat.
The merger of four state-owned port operators into PT Pelabuhan Indonesia (Pelindo) is expected to boost Indonesia’s competitiveness, President Joko “Jokowi” Widodo has stated.
“I hope that our logistics costs can compete with those of other countries. It means that our competitiveness will be improved,” the President said at Labuan Bajo Port in West Manggarai, East Nusa Tenggara, Thursday (10/14).
The President ordered the Pelindo holding company to immediately find partners to be connected to other countries and to the global supply chain.
President Jokowi also expressed his appreciation to Ministry of State-Owned Enterprises for establishing the Pelindo holding.
“Seven years ago, I ordered Minister of State-Owned Enterprises and all President Directors of Pelindo I, Pelindo II, Pelindo III, and Pelindo IV to immediately create the Pelindo holding. Today, thank God, the President Director of Pelindo, Mr. Arif, said that Pelindo I, Pelindo II, Pelindo III, and Pelindo IV have become PT Pelindo or PT Pelabuhan Indonesia,” he said.
This merger is carried out based on Government Regulation (PP) Number 101 of 2021 on the Merger of PT Pelabuhan Indonesia I, PT Pelabuhan Indonesia III, and PT Pelabuhan Indonesia IV into a Limited Liability Company (Persero) PT Pelabuhan Indonesia II signed by President Joko Widodo on October 1, 2021.
On that occasion, the President also expressed hope that other State-Owned Enterprises will establish holding company.
Small companies, he added, have a limited capacity in terms of finance and capital while holding companies have a higher capacity.
In the meantime, President Director of PT Pelabuhan Indonesia (Persero) Arif Suhartono said that the merger of Pelindo would increase Pelindo’s capacity to become the 8th largest container terminal operator in the world with a total container throughput of 16.7 million twenty-foot equivalent units (TEUs).
“This merger also brings together financial resources, increases leverage, and strengthens the company’s capital,” Arif remarked. (TGH/AIT/UN) (RI/MUR)
