Pelindo merger is not monopoly
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 - Merger Pelindo Bukan Monopoli
23 September 2021
By: Thresa Sandra Desfika
Jakarta – The merger plan of PT Pelabuhan Indonesia (Pelindo) I, II, III, and IV is ensured that it is not a monopoly, following the policy of the Business Competition Supervisory Commission (KPPU) that provided a legal aspect regarding the issue.
“KPPU is a business competition supervisory commission that has provided a legal aspect on the merger plan, and they have stated that the merger is not a monopoly,” Pelindo III Operations and Commercial Director, Putut Sri Muljanto, said this week.
Putut explained that the Pelindo integration plan had been supported by various stakeholders, including the Transportation Ministry, the Finance Ministry, as well as regional governments where ports managed by Pelindo I-IV are located.
“The National Land Agency (BPN) has also provided their support as this is related to land asset ownership,” Putut explained.
Putut said that the Pelindo integration plan was still waiting for the issuance of the government regulation. The Pelindo merger is planned to become effective on 1 October 2021.
“We are waiting for the finalisation of this process, which is a government regulation on the merger plan,” Putut mentioned.
Previously, Pelindo Integration Organising Committee Chairperson, Arif Suhartono, explained that, after Pelindo was integrated, there would be no significant change from current Pelindo activities. According to him, the most significant change is that businesses will no longer be separated by areas, but by business lines.
For example, the container Pelindo, as a subsidiary, will be able to carry out their activity all over Indonesia. Other companies, especially private companies, will still be able to carry out their activities. “There is no plan to create a monopoly,” Arif stated.
Furthermore, Putut said the container subholding would have an office in Surabaya that is ready to operate all container terminals that are currently managed by subsidiaries or Pelindo. However, the handover will not be immediately carried out on 1 October 2021.
“On 1 October 2021, customers will still do business with the terminal that they are currently dealing with. If you are dealing with IPC TPK, please continue. If you are dealing with Belawan, please continue. If we have conducted the handover to the subholding, we will make an announcement,” he explained.
Meanwhile, the non-container subholding will have an office in Belawan. Putut said that this subholding would operate all bulk terminals managed by Pelindo I, II, III, and IV.
“It will also be carried out in phases. It will not be carried out on 1 October 2021. We will make another announcement if the subholding is ready to operate,” Putut said.
Then, Putut said that the logistics and hinterland subholding would be related to land management. Meanwhile, the port supporting business subholding will carry out supporting businesses for the container and non-container subholdings as well as the integrated Pelindo.
“We state the subholdings as business owners because the integrated Pelindo, which is a level above, owns the concession as a strategic architect, so the ones in the level below are business owners,” Putut revealed.
Positive welcome
Meanwhile, Indonesia National Shipowners Association (INSA) Chairperson, Carmelita Hartoto, welcomes the plan to establish four subholdings from the Pelindo merger, because every service segment requires a specific specification. However, she reminded that the subholdings could not establish other subsidiaries.
“We hope to stop at the subholdings. There cannot be more subholdings with subsidiaries or sub-subsidiaries. Private companies must also be provided an opportunity to carry out port business as port enterprises,” Carmelita stated.
Besides that, she revealed that Pelindo’s integration plan was interesting to be observed as its purpose is to create one single service standard. According to her, to realise the single service standard, there are several challenges, such as the lower port productivity in the eastern area compared to the western area, especially Java.
“From the working hours alone, it shows a different working culture even though the port class is the same. This is the homework for teams at SOEs (State-owned Enterprises) to make adjustments,” Carmelita said.
Next Article : Nusantara Infrastructure eyes Rp20tn toll roads project
