SOE merger: Pelindo asked to lessen hubs
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.
Bisnis Indonesia - MERGER BUMN: Pelindo Diminta Kurangi Hub
04 October 2021
By: Rahmi Yati, Anitana W. Puspa and Hendra Wibowo
Bisnis, Jakarta – PT Pelabuhan Indonesia (Persero), a new entity from the merger of four port SOEs, is suggested to limit their international hubs to only 2-5 units to significantly increase cargo volume and attract mother vessels.
Supply Chain Indonesia (SCI) Chairperson, Setijadi, said that the suggestion could be a crucial strategy to improve the competitiveness of Indonesian ports globally, and to take over shipping that went through Singapore.
“This effort must be accompanied by organisation of the spoke system, which is not easy, but it needs to be prioritised,” he stated on Sunday (3/10).
According to him, the organisation of hub and spoke ports is the main challenge as it will lessen export-import ports, which will attract mother vessels to routinely moor at Indonesian ports.
Besides that, Setijadi is encouraging PT Pelabuhan Indonesia (Pelindo) to improve services at all ports by standardising their process, human resources, and technology with an integrated system among ports and between ports and users.
Meanwhile, National Maritime Institute (Namarin) Executive Director, Siswanto Rusdi, reckoned that the merger process of the four port SOEs was still long.
He highlighted several issues on work positions in the new port business, as well as the unclear strategy to develop the career of workers and to adjust competencies.
Moreover, he assessed that asset value, equity, and liability would affect the initial capital of Pelindo. Hence, he suggests Pelindo to involve port stakeholders in arranging the technical strategy.
Until now, Siswanto reckoned that parties involved in the merger planning did not have a background in port business, but they were only consultants who only focus on financial issues without technical capabilities and strategies in the port sector, such as to determine the clustering criteria. “I was afraid that the consultants will only focus on the financial aspect, not on other technical aspects,” he said.
