President: Global-scale shipping industry and transportation services must be developed: Becoming the global maritime axis

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 - Presiden: Industri Perkapalan dan Jasa Perhubungan Berskala Global Harus Dikembangkan: Jadi Poros Maritim Dunia

24 September 2021

By: Novy Lumanauw and Thresa Sandra Desfika

 

Jakarta – President Joko Widodo (Jokowi) is asking the domestic global-scale shipping industry, shipping services, and logistics services to be continuously developed to support Indonesia becoming the king of its own seas. The President also affirmed that, as the largest archipelagic state with 17 thousand islands and 108 kilometres of coastline, Indonesia must become the global maritime axis.

“Utilisation and development of science and technology in the shipping industry and domestic shipping industry growth must be maintained. Not only the ship producing industry, but we must also continue to develop global transportation services and logistics services industries. We have to become the king of our own seas,” the President stated in his speech regarding maritime during the 57th National Maritime Day event on Thursday (29/3).

President Jokowi revealed that, as the country with the most marine wealth in the world, Indonesia needed to be the global maritime axis. Besides that, Indonesia must develop its maritime economy.

“Indonesia’s identity as a maritime nation must be continuously restored and maintained. Not through maritime jargons, but through real work in various sectors,” he affirmed.

The President continued that all parties must work hard to improve maritime connectivity and maritime security to protect public and national interests.

“We must utilise our maritime potential for economic growth that is more balanced and to increase the added value, as well as to unite our country, Indonesia,” Jokowi explained.

He said that the government had been improving connectivity among thousands of islands. Not only through the construction of large and small ports in small isolated islands, but also through maritime highway. This will improve goods and passenger mobility among islands, which will guarantee better public services and increase the added value of the local economy.

The President mentioned that, even though they are located far from national economic centres, isolated islands and their citizens could still have high economic potential. That potential can be the base for Indonesia’s balanced economic growth to all parts of the country.

“The way we see the sea must also change. The sea is not a separator. The sea is a connector of islands. The sea is not our backyard where we show our backs, but it is our front yard where we face toward,” the President stated.

However, Jokowi explained that maritime assets must be utilised wisely. The sea must be protected for the interests of current and future generations.

“Maritime resources must be utilised smartly and wisely. Fishing is required, but the method must be measured to maintain maritime resources sustainability,” the President explained.

Meanwhile, Coordinating Minister for Maritime and Investment Affairs, Luhut Binsar Pandjaitan, said that, at the start of the establishment of his work cabinet, President Jokowi had a vision to make Indonesia the global maritime axis.

According to Luhut, this can be realised as Indonesia is located at a crossroad. However, there are many parties and communities that translate this advantage to their own interest or understanding.

“However, what President Joko Widodo means is Indonesia must develop to be a strong maritime or nautical state. Becoming the global maritime centre once again,” Luhut affirmed.

Luhut emphasised that maritime must be the nation’s vision. Besides that, the main flow of national construction must be based on the maritime industry.

“Hence, national construction planning and implementation must consider Indonesia’s identity as an archipelagic state,” Luhut added.

Roadmap

Furthermore, Luhut is encouraging the inclusion of the maritime construction roadmap in the 2025-2045 long-term national construction plan. With the road map, Indonesia’s vision to become the global maritime centre by its 100th independence anniversary in 2045 is expected to progress more smoothly.

Luhut said that, in 2025, the first period of the long-term national construction plan would end. Then, Indonesia will enter the 2025-2045 long-term plan.

“This is a great opportunity to include the long-term maritime construction plan. We must make a clear roadmap,” Luhut said.

With the roadmap, Luhut explained that it would easier to implement stronger connectivity among ports in Indonesia. Moreover, it will also strengthen Indonesia’s position to be the global maritime centre.

“Indonesia will be the global maritime centre by 2045 when Indonesia will be independent for 100 years,” Luhut affirmed.

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