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 - Program tol laut perlancar distribusi logistik
16 January 2024
By Ichsan Amin
Jakarta, ID – The maritime highway programme is expected to be continued in 2024 in order to bolster logistics distribution in Indonesia.
PT Pelayaran Nasional Indonesia or Pelni (Persero) stated that they could still operate the maritime highway programme. The programme that has been implemented since 2015 is expected to be continuously carried out to facilitate logistics distribution among regions and guarantee the availability of basic needs in underdeveloped, outermost, frontier, and border (3TP) areas.
Pelni Secretariat Head Evan Aryanto said that, as the operator of the maritime highway programme, his company was attentive to the aspirations of the people. Moreover, business players have noted that the use of maritime highway ships significantly reduces delivery costs.
“These are the facts that we hear on the field. So, they boldly increase their business scale as they rely on the programme. MSMEs (Micro, small, and medium enterprises) in regions can also develop further,” he said to Investor Daily in Jakarta on Monday (15/1/2024).
Evan said that, for the people, maritime highway ships have successfully maintained the supply of basic needs, such as meat and eggs. “So, as the operator, we hope that the programme can be maintained and continued,” he revealed.
The realisation of the maritime highway programme that has been fitted with 10 routes by PT Pelni demonstrates a consistently high load factor for ships departing and returning. The route with the highest load factor on Pelni’s maritime highway is route T28, which is the Kupang-Waingapu-Labuan Bajo-Reo-Merauke-Atapupu/Wini-Kupang route.
“The combined cargo volume for both departing and returning journeys on this route amounts to 2,284 TEUs. Specifically, the outbound cargo is 1,756 TEUs, while the incoming cargo is 528 TEUs,” Evan stated.
Suppress price disparity
A transportation observer from Supply Chain Indonesia (SCI), Setijadi, added that, in terms of connectivity, the programme was still required to suppress the price disparity among regions, which is caused by the uncertain availability of goods or commodities.
Setijadi said that one of the reasons why logistics costs are still high is the lack of return cargo within the maritime highway programme. Increasing the return cargo is not an easy feat that can be achieved in a short amount of time. Systemic and systematic planning and implementation in the long term are required, involving many related parties.
“On the other hand, the successful implementation of the maritime highway program also requires support in the form of synergy among ministries, institutions, business players, logistics and transportation service providers, and regional governments,” he stated.
Meanwhile, Indonesia Shipowners’ Association (INSA) Chairperson Carmelita Hartoto admits that the maritime highway programme is still a necessity. However, she hopes that the government can increase its subsidy allocation.
She hopes that, in the future, subsidies for the maritime highway will no longer be needed as its role as the catalyst has successfully created small industries in various regions. According to Carmelita, the maritime highway has only achieved some of its purposes, such as reaching 3TP areas. However, it has yet to achieve the harmonisation of commodity prices, which is one of its original purposes.
“I think [the maritime highway] needs to be continued by returning it to its original function, which is to carry basic needs and necessities. Cooperation with commercial fleets must also be established to implement the hub and spoke system. The hub routes will be operated by commercial fleets and the spoke [routes] will be operated by the maritime highway fleet,” he stated.
The maritime highway programme is a national programme of President Joko Widodo that was launched due to the high price disparity between the west and the east.
An economic growth that is centred on Java is making sea transportation in Indonesia to not be efficient and expensive as there is no return cargo from regions that have low economic growth, especially in eastern Indonesia.
In principle, the maritime highway programme is a well-established and regulated sea transportation system. It connects hub ports with feeders, spanning from Sumatra to Papua, utilising large ships to maximise economic benefits.
The programme that has been implemented since November 2015 initially had six routes that were set in Sea Transportation Director General Decision Number AL.108/6/2/DJPL-15. By the end of 2023, the number of routes has grown to 39 routes.
