RI strengthens shipping connectivity in ASEAN

  • 10 May 2024

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 - RI perkuat konektivitas pelayaran di Asean

10 May 2024

By Ichsan Amin

Jakarta, ID – Indonesia is enhancing port accessibility through access roads to and from ports. Additionally, there is also a current focus on developing industrial estates to bolster the opening of regional routes supported by ports.

This was stated by Sea Transportation Directorate General Secretary of the Transportation Ministry Lollan Panjaitan at the 46th ASEAN Maritime Transport Working Group in Bandar Seri Begawa, Brunei Darusaalam from 6 to 8 May 2024.

During the occasion, the Transportation Ministry through the Sea Transportation Directorate General unveiled port national strategic projects (PSNs) aimed at supporting regional and global connectivity.

“We revealed our intention to enhance connectivity through PSNs that can resolve numerous issues, which mainly concern the permit [acquisition process] that we are trying to shorten. We are also focusing on the creation of connectivity between industrial estates and ports,” Lollan said in his statement in Jakarta on Thursday (9/5/2024).

Lollan explained that connectivity enhancement in Indonesia was supported by the Committee for the Acceleration of Priority Infrastructure Delivery (KPPIP). Acting as a coordination unit, KPPIP makes decisions aimed at addressing issues stemming from the lack of coordination among stakeholders.

“KPPI is the point of contact in implementing coordination to debottleneck PSNs and priority projects,” he said.

He also disclosed several crucial points discussed during the meeting. The first one pertains to the agenda on the ASEAN Single Shipping Market (ASSM), where Brunei Darussalam presented the port performance analysis in ASEAN for 2023. This data was derived from the research conducted by the Maritime Institute of Malaysia (MIMA), utilising the latest information provided by ASEAN countries.

Delegates from Indonesia were led by Sea Transportation Lollan Panjaitan. These delegates include representatives from the Sea Traffic and Transportation Directorate, the Navigation Directorate, the Shipping and Maritime Directorate, the Sea and Coast Guard Directorate, the Land Transportation Directorate General, the River, Lake, and Ferry Transportation Directorate, the Centre for Partnership Facilitation and International Organisation (PFKKI), PT Pelindo, and Indonesia National Shipowners (INSA).

The meeting was led by Brunei Darussalam as the chair. The event was attended by all ASEAN countries, including the dialogue partners, namely China, the United States of America, Japan, and South Korea. The event was also attended by numerous leading maritime organisations, such as the International Maritime Organisation (IMO), ASEAN Ports Association (APA), Federation of ASEAN Shipowners’ Association (FASA), World Shipping Council (WSC), Digital Container Shipping Association (DSCA), Partnership for Infrastructure (P4I) Australia, and ASEAN Secretariat.

Indonesian National Shipowners’ Association Chairperson Carmelita Hartoto said that her association welcomed the ASEAN maritime transportation meeting, which positively introduced Indonesia’s commitment to opening connectivity through sustainable port infrastructure development.

According to Carmelita, through PSNs, the government is committed to developing areas that are integrated with industries. This approach aims not only to bring economic benefits but also to provide access for cargo and logistics via ships.

“We are welcoming it. This means we are committed to enhancing connectivity through ports built through PSNs, where the projects are directly supervised by the Coordinating Ministry for Economic Affairs,” Carmelita Hartoto, who is also the Chairperson of FASA, told Investor Daily.

Carmelita added that the maritime transportation international event must be utilised as much as possible as Indonesia held a large interest in the maritime industry sector of Southeast Asia. “If other countries observe what we are developing, we hope to attract collaborations in the shipping and maritime sectors that are aligned with our mutual interests,” she added.

Meanwhile, a maritime expert from Institut Tekonologi Sepuluh November in Surabaya, Raja Oloan Saut Gurning, said that port infrastructure projects in the list of PSNs were sustainable area developments. This means the projects accommodate the creation of areas where industries and ports are next to each other.

“For example, Makassar New Port. It is an integrated port where the processing industry and the port have a close access. This is an ideal concept for how industries and ports should be next to each other to reduce costs,” she stated.

She added the challenge for PSNs was that they needed a large budget and investment, so the government must always be able to maximise other investment potentials besides the state budget (APBN). “By announcing to many countries that Indonesia is serious about developing cargo and logistics connectivity through port development in the form of PSNs,” she explained.

IMO – ASEAN cooperation

Indonesia has also stated its support for the signing of the Memorandum of Understanding (MoU) between ASEAN and IMO on future collaborations in the maritime sector in the Asia-Pacific region to further develop the sea transportation sector.

“We are also supporting IMO’s plan to develop the implementation of the blue economy and a circular economy in ASEAN as they are important to drive economic growth in the region,” Lollan said.

This cooperation in the blue economy sector encompasses the development of various sectors, such as aquaculture, tourism, renewable energy, biotechnology, sea and freshwater research and education, as well as other new sectors.

“In line with IMO’s sustainability efforts and its plan to support the implementation of the blue economy and a circular economy in ASEAN, we expect continuous support and cooperation from IMO to develop the economic framework of the blue economy in ASEAN that will contribute to the socio-economic welfare and healthy sea environment in the region,” he stated.

Lollan said that Indonesia expected ASEAN and IMO to strengthen their cooperation in the maritime sector to develop strong, sustainable, and smooth sea transportation and connectivity in ASEAN and its vicinity.

Meanwhile, as a form of commitment to the advancement of the global maritime sector, Indonesia has stated its support for the ratification of the Cape Town agreement and its commitment to holding the national ratification and implementation consultation on the CTA from 24-28 June 2024 and the regional conference on the CTA in the second half of 2024.

Furthermore, Indonesia also mentioned preparation to propose the designation of the Lombok Strait as a particularly sensitive sea area (PSSA), which would be submitted at the 82nd MEPC forum.

“To support this initiative, Indonesia will hold an international focus group discussion in early June 2024 in Bali with ASEAN countries, IMO member countries, and stakeholders in the sector to actively participate in the forum,” Lollan added.

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