Patimban Port May Not Be A Threat For Tanjung Priok

Patimban Port (Source: Adhi Karya's Documentation)

JAKARTA - President Joko Widodo (Jokowi) in his second term of leadership is increasingly aggressively building infrastructure. One of them that is being worked on is the Patimban Port project in Pantura, Subang Regency, West Java.

This port is predicted to become the center of export and import traffic for automotive, especially cars, in West Java and Central Java. It is targeted to start operating in December 2020.

However, the construction of Patimban Port is considered a threat to business continuity at Tanjung Priok Port, North Jakarta. This is because the two ports are both located on the northern side of Java and are close to each other.

Minister of Transportation Budi Karya Sumadi said that the existence of Patimban Port aims to reduce national logistics costs. In addition, it is also intended to increase the efficiency of exports of Indonesian products abroad, especially automotive.

"We will use Patimban Port for fuel, to maximize the use of trucks, strengthen economic resilience, and most importantly how we also provide backup outlets from the port," he said.

Furthermore, Budi said, the burden of transportation in DKI Jakarta is already very heavy, and the presence of Patimban means that the movement of heavy transport is partially moving to the Patimban area and making the capital better and not congested.

"We also ensure that Patimban guarantees the safety of shipping and oil and gas exploration. Patimban Port can also be expected to be the main lever of national economic recovery," he said, in a virtual discussion, Friday, November 20.

In addition, Budi hopes that business actors can explore Patimban so that it will further open up employment opportunities for people throughout Indonesia, especially the Subang community.

"I hope (all parties) maintain and maintain the infrastructure that has been built and develop this port to further boost the nation's economy," he explained.

Likewise, the Chairman of the Indonesian Logistics and Forwader Association (ALFI) Yukki Nugrahawan Hanafi said, with the presence of Patimban and toll access to the port, it can save travel time and logistics costs. Therefore, he asked that the toll road to Patimban Port be completed immediately.

"Even now, going through normal roads only takes 2 hours and 90 minutes. There is no toll road. Imagine if there is already a toll road from Batang, it only takes 1 hour 30 minutes to Patimban," he said.

Yukki said, toll access to Patimban was important. Because Patimban Port does not only serve West Java but also Central Java. Moreover, access to Patimban will be faster and closer than having to go to Tanjung Priok.

"This means that with a distance of 60 meters that we usually travel to Jakarta 5-6 hours. If we go to Patimban now we expect only 1 hour 30 minutes. I do not imagine the efficiency we get, not only from logistics but of course also from the use of fuel oil. (BBM) diesel is here, "he said.

Optimization of Patimban Port

Secretary General of the Ministry of Industry, Achmad Sigit Dwiwahjono, said that Patimban Port has an important value for the development of the national automotive industry. This is because Patimban Port is a major hub in the production of national motorized vehicles and exports to the global market.

"We invite the automotive and motor vehicle industry players as well as spare parts component manufacturers and the raw material industry to make Patimban a strategic partner for export-import activities so that it can become a center for international trade," he said.

Furthermore, Achmad said, the automotive industry was one of the mainstay sectors that contributed greatly to the national economy.

Currently, he said, there are at least 19 companies in the 4-wheeled motor vehicle industry or more in Indonesia. The total investment value reached Rp. 93 trillion with a capacity of 2.3 million units per year.

"Absorbing 38 thousand direct workers and more than 1.5 million people who work along the automotive industry value chain," he explained.

Achmad said that domestic motorized vehicle products have been able to penetrate 80 countries in the world. From January to September, the export of CBU vehicles was 155 thousand units or Rp. 28 trillion and CKD 34.7 thousand sets or Rp. Rp. 1 trillion. Meanwhile, components are 40 million pcs or valued at Rp. 15.2 trillion.

The Government Must Divide Tasks between Patimban and Tanjung Priok. A Senior Economist at the Institute for Development of Economics and Finance (Indef) said Patimban Port and Tanjung Priok Port should not compete with each other. The two ports on the north side of Java Island must work together.

Aviliani admits that he is worried that there will be an overlapping of authority which will lead to unfair competition in the management of the two ports later. Therefore, the government must carry out a clear division of tasks. Moreover, he said, the government, especially the Ministry of BUMN, continued to echo clear holding and division of tasks between government agencies.

"With this international port, we hope that there will be import substitution, but our exports will increase. That is also one of the things that can be an advantage of this port. Patimban Port must be related to Tanjung Priok, so that there is no competition," he said in a virtual discussion, Friday , 20 November.

So far, said Aviliani, logistics competitiveness has always been an obstacle. This is because it still contributes significantly to the cost of goods. Meanwhile, export and import activities still go through Singapore or Malaysia, after being packaged, then export to other countries. According to him, by reducing the use of sea transportation routes in the neighboring country, the company's profit margin will be even greater.

"We are experiencing the largest balance of payments, one of which is the payment of foreign ships carrying goods. With this port, our ships can be pushed and will have an impact on capital outflows, especially in logistics," he said.