Minister Supports Proposal To Expand Port Capacity

Jakarta (Antara Bali) - Transport Minister Ignasius Jonan supports proposal by the state owned port operator PT Pelabuhan Indonesia (Pelindo) II to expand the capacity of a number of its small harbors.

The capacity expansion could be made by installing more equipment like cranes to be more efficient, Ignasius Jonan said here on Wednesday. However, he has yet to receive  and  read the proposal to develop and modernize ports in eastern Indonesia.

The proposal calls for the promotion of the status of 35 ports of technical executive units (UPT) into general service body (BLU). The purpose of the change in status is to allow UPT ports in isolated areas to expand . "I plan to promote the status of many small harbors into BLU offering better service but remaining with reasonable tariff in line with the government regulation No 11 of 2015," he said.

He said when the ports have expanded they could be put under Pelindo II to be developed further into commercial ports. He said the delay in offering the port development projects to the private sector in this case  Pelindo II is to allow Pelindo II to concentrate on expanding the capacity  and improve the efficiency  of  its ports.

Based on the government regulation No. 11 of 2015, the transport ministry has a target to earn non tax revenues  up to Rp6 trillion this year. In order to reach the target,  instead of  offering the operation of small harbors to  Pelindo or the private sector as originally planned, the transport ministry might promote the status of the ports to BLU .

With the status of BLU , the small ports are expected to contribute larger income to the transport ministry. The minister said socialization is being launched to all stakeholders about the target set by the government. (WDY)