PIS And Pelindo Develop JIGT, Deputy Minister Reminds About EPC

JAKARTA - PT Pertamina International Shipping and PT Pelabuhan Indonesia (Persero) will work together to develop the Jakarta Integrated Green Terminal (JIGT) Kalibaru.

The construction of this green terminal is expected to cost between 350 million and 550 million US dollars with three stages of development and a capacity of 6.3 million barrels.

Responding to this, Deputy Minister of SOEs Kartika Wirjoatmodjo reminded the management of the two state-owned companies regarding the development and project management, especially Engineering Procurement Construction (EPC).

He said that he had just submitted the state-owned company's financial report to the Supreme Audit Agency (BPK). The submission of this report follows many EPC planning and processes that are not neat and lead to legal cases.

"Because from the BPK there are so many cases related to EPC in BUMN, PLN, Pertamina, Inalum, there are so many of our projects in the design stage that are not neat and finally problematic," said Tiko, quoted on Saturday, September 2.

For this reason, he warned PIS and Pelindo to really pay attention to the planning process and the EPC.

"Please really later, whoever is appointed as a contractor is in the planning process and the EPC is in the planning process and the contract is good, don't let cases in the past have a lot of problems," continued Tiko.

Tiko also asked both of them to take into account the flexibility of the contract, the calculation of costs, the technical specifications must be neatly arranged and carefully.

"So that the EPC issue is no longer the case. We also have problems in some of our projects because our planning and contracting are not appropriate, finally the project is delayed and finally has legal problems," explained Tiko.

The former President Director of Bank Mandiri then gave an example of the Freeport smelter construction project in Gresik which became one of the best practices of the EPC and has been completed. In the construction, PT Wijaya Karya (Persero) Tbk (WIKA) partnered with Chiyoda International Indonesia for the EPC Smelter Manyar activity.

"This could be a best practice of how we develop big projects with planning, commercial agreement and legal agreement and execution in good and neat fields," concluded Tiko.