Sea Toll Aims to Reduce Price Disparities, Cut Logistics Costs
Date 5 Maret 2020
The operation of sea toll aims to reduce price disparities – both between regions and between islands – and cut high logistics costs, President Joko “Jokowi” Widodo said.
“I’ve learned that shipping costs of logistics between regions are still high,” the President said in his introduction in a limited meeting on the Accelerated Sea Toll Program at the Presidential Office, Jakarta, Thursday (5/3).
The President cited an example of shipping costs from capital Jakarta to several cities such as Padang in West Sumatra province, Medan in North Sumatra province, Banjarmasin in South Kalimantan province and Makassar in South Sulawesi province are higher than those of from Jakarta to several Asian financial hubs such as Singapore, Hong Kong, Bangkok, and Shanghai.
“Likewise, shipping costs from Surabaya to Makassar is much higher than that from Surabaya to Singapore. Together, we must address this issue so the main purpose of sea toll to reduce price disparity between regions will be accomplished,” the President said.
The Head of State further said that to control and to make sea toll more efficient becomes the Government’s focus.
“Logistics costs between regions, between provinces must be reduced. Do look into this issue in a detailed and comprehensive manner, whether the problem is at the ports, For example, matters with dwelling time or monopolistic practices in the transportation and distribution of goods so that logistics costs are not efficient,” the President said.
The President also said he has received a report that difficulty in lowering costs is due to the imbalance of the number of cargo transporting goods with full cargo from the west to the east regions, while the opposite is not.
For the record, the Indonesian Government since 2014 has promoted its sea toll policy to move cargo from land to sea wherever possible. President Jokowi has also put inter-island connectivity at the top of his development priorities under the sea toll road program. (MAY/EN)
Reviewed by: M. Ersan Pamungkas