After 7 Years, Jokowi Finally Inaugurates Pelindo Merger

At the Pelindo merger event at the Wae Kelambu Multipurpose Terminal of Labuan Bajo Port, East Nusa Tenggakra (NTT), Thursday (14/10), Jokowi said, “Seven years ago I ordered the Minister of SOEs, to all the main directors of Pelindo I. , Pelindo II, Pelindo III, Pelindo IV to immediately hold this Pelindo. I’ve been waiting for seven years but it didn’t happen. It has started (he said), OK, if notholding-there is a transition, virtual holding, done virtual holding-but holding It has not been met and today, thank God, the President Director of Pelindo has conveyed it to Pelindo I, Pelindo II, Pelindo III and Pelindo IV to become PT Pelindo or PT Pelabuhan Indonesia.” he said

Jokowi hopes that the PT Pelindo merger can reduce logistics costs in the country. According to him, logistics costs in Indonesia are still quite expensive, namely 23 percent, while in neighboring countries it is only 12 percent. According to him, this reflects a lot of inefficiencies in the national logistics system.

Furthermore, Jokowi also hopes that PT Pelindo will find partners who have an extensive network to be able to connect with countries around the world.

“What does it mean? Our products, things we can roam everywhere, go to supply chain global, goal-her there. So once again I really appreciate what has been done by the Minister of BUMN and his staff. This will be a great strength later,” he said.

President Jokowi started his working visit in NTT Province by inaugurating the Multipurpose Wae Kelambu Terminal at Labuan Bajo Port, in West Manggarai Regency, Thursday, October 14, 2021. (Twitter/@setkabgoid)

President Jokowi started his working visit in NTT Province by inaugurating the Multipurpose Wae Kelambu Terminal at Labuan Bajo Port, in West Manggarai Regency, Thursday, October 14, 2021. (Twitter/@setkabgoid)

Pelindo “Go Global”

On the same occasion, the President Director of PT Pelindo (Persero) Arif Suhartono said that the merger of port SOE services had been discussed since 20 years ago, but it was only realized last October 1.

Arif explained that the management of port services, which had been carried out separately so far, had an impact on the inefficiency of the national logistics system due to differences in experience, service, finance and human resources of each company. Therefore, the merger is expected to create a stronger national port industry through maritime connectivity throughout the archipelago.

In addition, the merger of these companies will facilitate coordination in the development of industrial estates and special economic zones around the port, and other areas so that it can have a significant impact on increasing regional economic activities.

President Jokowi inaugurated the merger of Pelindo I, Pelindo II, Pelindo III, Pelindo IV into PT Pelabuhan Indonesia, at the Wae Kelambu Multipurpose Terminal, NTT, October 14, 2021. (Twitter/@jokowi)

President Jokowi inaugurated the merger of Pelindo I, Pelindo II, Pelindo III, Pelindo IV into PT Pelabuhan Indonesia, at the Wae Kelambu Multipurpose Terminal, NTT, October 14, 2021. (Twitter/@jokowi)

“The merger of Pelindo also opens up opportunities for companies to go global. This will increase Pelindo’s position to become the 8th largest container terminal operator in the world with a total container output in 2019 of 16.7 million TEUs. (twenty foot equivalent units). This merger also brings together financial resources, increasing leverage and strengthen the company’s capital,” said Arif.

Big Challenge

Economic observer from the Center of Economic and Laws (CELIOS) Bhima Yudhistira appreciated the government’s step to reduce national logistics costs by merging PT Pelindo. Even so, he noted that port logistics only contributed two percent of the total logistics system in Indonesia. According to him, the expensive logistics system is currently still on the ground.

“Apart from a long time, there are also problems regarding toll rates, land transportation rental fees, then there is warehousing, and also regional connectivity issues, especially in the context of Indonesia, which is an archipelagic country,” said Bhima to Mouab.

In the future, he said, this merger must involve other modes of transportation so that a comprehensive and comprehensive logistics reform will be created. An equally formidable challenge ahead is the transition process. Bhima assessed that the merging of four companies into one requires adaptation that is not easy, and will be answered within the next 3-5 years.

“Because the merger transition process is not easy, it’s not as easy as making holding for example. Including the standardization of services, it still takes time. So this transition, then the work culture, surely the work culture of Pelindo I, II, III, and IV is different because previously it was divided by territory or region. It also needs an equalization time from the work culture. So the transition for the next 3-5 years is crucial,” he explained

Director of the Center of Economic and Law Studies (CELIOS), Bhima Yudhistira.  (Photo: Mouab)

Director of the Center of Economic and Law Studies (CELIOS), Bhima Yudhistira. (Photo: Mouab)

Even so, according to him, PT Pelindo must move quickly to make the transition, considering that the COVID-19 condition which has begun to subside has made export and import activities begin to increase again.

“This means that the attention to logistics is currently high. It’s time to fix from upstream to downstream problems logistic cost. Also the quality of the logistics. That’s what’s urgent now because it’s currently being booming commodities, demand for exports to traditional countries is on the rise, then also including imports to meet some of the domestic needs for raw materials must also be ensured,” he said.

On the other hand, PT Pelindo said Bhima must also anticipate technological advances in the increasingly fast logistics sector. This is because several countries have implemented technology 4.0 in their logistics systems for efficiency and reduce dependence on manual work in order to minimize the occurrence of work accidents to facilitate tracking of goods. Thus, no small investment is required.

“So all directions will be there, meaning that we have to invest heavily in technology, because 4.0 is not cheap. And the increasing export volume, our increasing trade balance automatically requires massive investment in port infrastructure,” he concluded. [gi/ab]

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