Indonesia Chamber of Commerce & Industry: RI needs investment for sea transportation sector
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Kadin: RI butuh investasi untuk sektor transportasi laut
13 January 2023
Jakarta – Indonesia needs investments in the sea transportation sector to revitalise existing ships, purchase new ships, and add to the international market. Indonesia Chamber of Commerce and Industry (Kadin Indonesia) Sea Transportation Standing Committee Chairperson Nova Y. Mugijanto said that the number of ships registered in Indonesia reached 80 thousand ships, 50% are fishing ships and 30-40 thousand are commercial ships.
“Generally, domestic ships in Indonesia are more than 15 years old, so investments are required to revitalise these old ships. So, in the future, we will have a more modern fleet,” Nova said at the press conference ‘Brunei-Indonesia-Malaysia-the Philippines-East ASEAN Growth Area (BIMP-EAGA) Maritime 2023’ in Jakarta on Thursday (12/1/2023).
Even though he did not mention a specific amount required to revitalise and purchase ships, Nova explained that the required amount to purchase new commercial ships reached Rp50-100 billion per ship.
“Foreign ships cost more,” he added.
With Indonesia’s expansive maritime potential, he continued that sea transportation was the vein of the country’s economy. So, BIMP-EAGA that is planned to be held from 21-23 February 2023 is expected to benefit the logistics industry in Indonesia and other countries. BIMP-EAGA is an annual event for container ports, logistics shipping and transportation, as well as trade so that Indonesia can promote and facilitate trade and economic development in all BIMP-EAGA regions through transportation and logistics.
The event held by PT Pelindo and supported by Kadin Indonesia, BIMP-EAGA Council, and Chartered Institute of Logistic and Transport Indonesia (CILT) will be attended by 40 companies.
During the occasion, Kadin Indonesia Logistics and Supply Chain Agency Head Akbar Djohan is targeting the event to produce business agreements that can be executed to contribute to the domestic economic growth.
“We are asking stakeholders in the regulator side and business players on the national and international scale to add more participants so that the continuity of the company can be concrete, contribute, and be executed in a short time,” he said.
Akbar is targeting the activity to boost Indonesia’s economy in the logistics side by 6%, which is higher than the national economic growth in the third quarter of 2022 that reached 5.72%.
He also hopes that the activity that will be held from 21-23 February 2023 can obtain 20%-30% of the total potential of the logistics economy (integrated).
“The rotating economy, if we talk about the logistics ecosystem, is no less than Rp2,000 trillion, which includes sea transportation, air transportation, and land transportation. This is around Rp2,000 trillion,” he explained.
According to him, the target surpasses revenue in the last 3-4 years before the pandemic.
“So, we from Kadin’s logistics agency is extremely optimistic about the generic and non-generic growth boosting the national economic growth as well as reviving the government’s hopes at the start of this year,” he said.
Meanwhile, previously, Akbar Djohan, who is also the chief executive officer (CEO) of Krakatau International Port/KIP (PT Krakatau Bandar Samudera/PT KBS), was optimistic about the logistics business skyrocketing this year. KIP, which is the largest international bulk port in Indonesia, believes that 2023 is full of opportunities and challenges, so it must be faced with various strategies to maintain the logistics supply chain.
Akbar Djohan said that KIP’s various projects and achievements in 2022 were the benchmark for evaluation and improvements of all aspects in 2023, especially digitalisation and human resources.
