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Bisnis Indonesia - Pelabuhan Hub: Pintu ekspor Indonesia Timur terbuka lebar
23 February 2024
By Mugroho Nafika and Hendra Wibawa
The inauguration of Makassar New Port in Makassar, South Sulawesi provides an opportunity to export products from eastern Indonesia to multiple key destination countries.
Following extensive efforts since May 2015, the Makassar New Port project in Makassar, South Sulawesi was finally inaugurated by President Joko Widodo (Jokowi) on Thursday (22/2).
The modern port project that has a cost of Rp5.4 trillion is anticipated to enhance the efficiency of logistics costs in Indonesia.
The Head of State observes that, even after a decade, logistics costs in Indonesia still account for 24% of the gross domestic product (GDP). This is attributed to the lack of integration among the locations of ports, industrial estates, and factories, resulting in inefficiencies in logistics costs.
“It will be a major port in eastern Indonesia that we expect will significantly improve the efficiency of logistics costs in the country,” he said.
The President emphasised that international competition was intense, both for domestic products and those from other nations.
Hence, the Head of State affirmed the importance of efficiency to win the competition among nations.
“Those who are efficient will win. They will be the ones who win the competition,” he added.
Besides logistics costs, Jokowi also appreciates the reduction in dwell time, which has decreased from 7 days to below 3 days.
The President hopes that Makassar New Port (MNP), now with a capacity of up to 2.5 million TEUs per year compared to the previous 750,000 TEUs per year, can effectively compete with major ports in other countries.
“The inauguration of MNP will improve eastern Indonesia. Products from the area will be able to compete against those from other areas and other nations,” he revealed.
With its capacity, MNP is the second largest port after Tanjung Priok. It is guaranteed to enhance the performance of PT Pelabuhan Indonesia (Pelindo) in eastern Indonesia.
“Currently operating at only 30% of its intended capacity with an investment of Rp5.4 trillion, we plan to further expand it with investments of up to Rp10 trillion. In the future, the port will be a crucial port not just for Indonesia, but also the world,” he explained.
During the occasion, Acting South Sulawesi Governor Bahtiar Baharuddin expressed his optimism that MNP would contribute to elevating the prominence of South Sulawesi as an integral part of Indonesia's trade centre.
South Sulawesi has always been abundant in natural resources, which include agricultural, fishery, and mining products. A major port in Makassar offers expanded opportunities for trade relations with other countries.
“Crops as well as fishery and agricultural products can flourish, we believe that MNP will be part of the glory of Makassar as a trade centre,” he stated.
Transportation Minister Budi Karya Sumadi appreciates Pelindo for completing phases 1B and 1C of MNP.
According to him, MNP is designed to be a major port and a hub port for eastern Indonesia, especially for export activities.
Until now, the export of mainstay products from the area has always been conducted through Tanjung Perak Port in Surabaya or Tanjung Priok Port in Jakarta.
“The two ports in Makassar, namely Soekarno-Hatta Port and Makassar New Port, are expected to support and improve logistics distribution in Indonesia. MNP is also expected to increase exports from Indonesia,” Budi Karya said.
Budi Karya said that MNP’s capacity has increased by 150% from 1 million TEUs per year to 2.5 million TEUs per year. The vessel dwell time has also been improved to 24 hours from the previous 48 hours.
MNP is a national strategic project (PSN) built in three stages, concluding in 2037. The construction of the project is fully funded by PT Pelindo.
Industries growing
Meanwhile, an economist from Universitas Hasanuddin (Unhas), Professor Hamid Paddu, reckoned that the capacity development of MNP would reduce logistics costs and improve goods distribution. This will boost the growth of industries in South Sulawesi.
According to him, MNP’s position as a logistics hub could enhance the likelihood of direct calls from Makassar to multiple countries. This has the potential to lower export costs and render commodity prices in South Sulawesi more competitive.
He believes that MNP will escalate economic growth in South Sulawesi to 9%-10% and increase national growth to above 6%-7%.
“With this effort, I believe Indonesia can achieve a growth of around 6%-7%. At least, we can get out of the middle-income trap,” he revealed to Bisnis recently.
Hamid added that regions in eastern Indonesia only needed to prepare their supporting infrastructure, such as direct accesses from production centres to ports and modes of transportation.
For instance, he highlighted the pressing need for supporting infrastructure in South Sulawesi. Specifically, he emphasised the necessity of a toll road that is currently only accessible in Makassar and has not yet extended to neighbouring areas recognised as production centres. The railway that is planned to carry logistics is also still under construction. Additionally, the width of roads in the area is insufficient to facilitate access for trailer trucks, leading to suboptimal delivery processes.
“In South Sulawesi, the railway must be extended to MNP. The toll road must connect the industries to the port. The point is that goods can directly enter the port quickly,” he stated.
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