INDEF: Government Needs To Encourage Private Presence In Port Management In Indonesia

Aerial photo of loading and unloading activities in the pier 1 area of PT Karya Citra Nusantara (KCN) Port, Marunda, North Jakarta on July 16, 2020. (ANTARA/Fakhri Hermansyah)

JAKARTA - Deputy Director of the Institute for Development of Economics and Finance (INDEF) Eko Listiyanto said the presence of the private sector in the development and management of ports in Indonesia needs to be encouraged and supported.

"I think this needs to be encouraged by the presence of the private sector in developing ports in Indonesia," Eko told Antara in Jakarta, Saturday.

The economist views that it is important for the private sector to be present in the government's strategic projects or to play a role in driving the economic activities of ports in the region to develop rapidly.

Indonesia has a large area, and the presence of the private sector is important in order to synergize with the government in managing ports as a means of distribution and transportation of commodities, especially the distribution and transportation of coal commodities.

"As the economy recovers after the COVID-19 pandemic, the demand for coal will certainly increase. This is because to drive economic activity requires a large supply of energy," said Eko.

In Indonesia itself, coal is an alternative energy for economic activities, especially for electricity supply where when the economy grows, the need for electricity also increases.

Meanwhile, at the international level, the economic recovery has pushed coal commodity prices up. In addition, coupled with the protracted Russo-Ukrainian War, now countries inevitably consider using coal as an alternative energy option when oil and gas supplies are reduced due to the many embargoes against Russia.

"Nowadays, coal is urgently needed and has returned to being the prima donna during the economic recovery period after the COVID-19 pandemic," said Eko.

Eko explained that the benchmark is if the price of oil is high then this will have an effect on increasing demand for coal commodities. This is because coal is a substitute commodity for energy.

In the end, Indonesia's ability to take advantage of the momentum of rising global commodity prices to encourage exports is largely determined by its logistics channels. If then the provision of logistics facilities and infrastructure is hampered or constrained, then the potential will not be optimal.

"This means that we must synergize with each other and think about it here. With this recovery and the geopolitical crisis in Europe, we have the opportunity to take advantage of this situation with our advantages in commodities, especially coal," said Eko.

Previously, PT Karya Citra Nusantara or KCN revealed that the presence of Marunda Port, Jakarta, has the potential to create jobs for the community.

President Director of PT KCN Widodo Setiadi said that if it was related to government programs, how the maritime sector became one of the choices for the younger generation to want a career.

This, he continued, was because Marunda Port created a lot of multiplier effects for all parties and sectors.