Pelindo prepares direct call from Belawan to India
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 - Pelindo siapkan pelayaran langsung dari Belawan ke India
31 January 2023
By: Amrozi Amenan
Jakarta - PT Pelabuhan Indonesia/Pelindo (Persero) with Indonesia Investment Authority (INA) is preparing to provide direct call from Belawan Port to India. In the future, direct calls will also be carried out to other countries.
“Direct call shipping is an important endeavour to increase the competitiveness of exports and save foreign exchange,” Special Staff III of the State-owned Enterprise (SOE) Ministry Arya Sinulingga said in his official statement in Jakarta on Monday (30/1/2023).
India is chosen as one of the priority destinations due to its large potential and strategic position as the gate of South Asia. Besides that, the trade value and volume between Indonesia and India continue to increase.
Based on the UN Comtrade, Indonesia-India trade value in 2016 reached US$16.92. Meanwhile, in the next five years, the trade value has increased by almost 25% to US$20.96.
Import commodities from India include motor vehicles, telecommunications equipment, fuel, buffalo meat, and animal feed. Meanwhile, the export commodities include coal worth US$4.3 billion in 2021, palm oil products worth US$3.4 billion, iron worth US$3.4 billion, steel worth US$1 billion, chemicals worth US$575 million, and rubber worth US$331 million.
Export commodities from plantations in Indonesia are shipped from Sumatra through various ports, such as Belawan in North Sumatra, Perawang Port in Riau, and several private ports along Siak River in Riau Province.
Arya mentioned that, until now, commodity transportation could not be directly shipped to the destination country. Hence, exporters must bear expensive sea freight that takes a long time.
“Moreover, the country must also spend foreign exchange as most shipping services are paid in foreign currencies,” he said.
According to Arya, Belawan Port has a large potential to provide direct call as INA has been cooperating with DP World as a strategic partner since August 2022. DP World is a global operator with a network of shipping lines and 60 international ports scattered across five continents.
Besides cooperating with global partners, Belawan Port will also be developed through infrastructure optimisation, performance improvement, and a more integrated IT system implementation. He hopes that the stevedoring performance of Belawan Port can improve and port stay time will be shorter.
“Hence, Belawan can enter the global logistics ecosystem network,” Arya said.
Previously, Acting Belawan Port Main Harbourmaster Office Head Captain Bharto Aria Raharjo mentioned that the ship that flies the Singaporean flag, MV Wan Hai 323, that has a capacity of 3,000 TEUs was the first ship to conduct maiden calls from China, Taiwan, Japan, and Korea to Belawan Port in early 2023. The ship departed from Belawan Port carrying around 1,000 TEUs or around 19,500 tonnes of cargo to be imported and exported to various destination countries.
“MV Wan Hai 323 conducted direct calls from Belawan Port to Korea, Japan, Taiwan, and China on New Year’s Day in 2023 at 11:00 PM WIB (Western Indonesia Time). It docked at Belawan PTP Container Terminal carrying 12,000 tonnes of various products. Meanwhile, regarding exports, the ship carried 7,500 tonnes of various mainstay export products from North Sumatra, such as palm oil products, rubber, frozen seafood, vegetables, and wood products that will be exported to the destination countries,” Bharto Arie said during the maiden call of MV Wan Hai 323 at Belawan Port at the start of this year.
During the occasion, Indonesian Maritime Pilot’s Association (INAMPA) President Parsaoran Herman Harianja said that the direct calls conducted by Wan Lines were an important momentum for Indonesia’ economic growth, especially for North Sumatra and its vicinity as they can take advantage of this opportunity of direct calls from Belawan Port to Korea, Japan, Taiwan, and China.
“A momentum such as this must be utilised by all exporters and traders in North Sumatra as direct calls will provide many benefits and added value for exporters and importers on top of reducing national logistics costs and accelerating national economic recovery after the Covid-19 pandemic,” Herman said.
Herman explained that the ship conducted direct calls so that the cargo carried can fulfil the quota slot capacity prepared by the carrier. North Sumatra Provincial Government, regents and mayors, Indonesia Chamber of Commerce and Industry (Kadin), and business associations are expected to work hard to increase export commodities. Hence, the economic recovery of Indonesia and North Sumatra can be realised soon.
Export port
Some time ago, SOE Minister Erick Thohir revealed that 95% of cargo from Belawan Port did not go directly to the destination countries, but they went through ports in Singapore and Malaysia. From January to May 2022, around 51% of containers loaded and unloaded at Belawan went to or came from Malaysia, while 44% went to or came from Singapore, and 5% went to or came from Thailand.
“We, at the SOE Ministry, are making Belawan an export port that serves direct calls,” Erick said recently.
For example, direct call for container ships from Indonesia to Los Angeles needs 23 days. Meanwhile, with transhipment, the same route will take 31 days and cost around 20% to 30% more.
“Belawan’s development starts by bringing in large container ships to Belawan. This can be done by increasing the capacity and improving the stevedoring equipment at Belawan Port so that they can accommodate direct calls to the destination countries,” Erick said.
Previously, to make Belawan Port Indonesia’s gate at Malacca Strait, Pelindo cooperated with Indonesia Investment Authority (INA). Pelindo President Director Arif Suhartono said that the purpose of Belawan New Container Terminal (BNCT) was to transform Belawan Port by improving the terminal’s capacity, the terminal’s connectivity, and small ports with BNCT.
“Pelindo’s target after the merger is to support a more coordinated infrastructure development to strengthen maritime connectivity and industrial downstreaming,” Arif said some time ago.
Pelindo’s cooperation with INA is expected to accelerate the development of Belawan Port to achieve international service standards. To realise Belawan’s role as a logistics gateway at Malacca Strait, BNCT will be the centre of terminal connections and small ports in northern Sumatra.
“Hence, this port is expected to strengthen the competitiveness of North Sumatra’s mainstay products and reduce logistics costs gradually,” Arif added.
INA Supervisory Board Chairperson and Finance Minister Sri Mulyani Indrawati said that she welcomed the cooperation between Pelindo and INA at Belawan Port as a milestone of INA’s contribution to this sector.
“As an archipelago, connectivity improvement between islands as a form of structural transformation through efficient and modern port development is crucial,” Sri Mulyani said.
