Erick Thohir Says Port Holding Can Reduce Logistics Costs In Indonesia

Minister of SOEs, Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - The Ministry of State-Owned Enterprises (BUMN) continues to transform and increase efficiency amidst the challenges it faces. One of them is by forming a port state-owned holding company. With this holding, the infrastructure for increasing the container can be realized this year.

SOE Minister Erick Thohir said the formation of the container infrastructure would reduce logistics costs in Indonesia, which is known to be very high. So that in the future Indonesia's logistics costs will be much more competitive.

Furthermore, Erick said that logistics costs in Indonesia are approximately 23 percent, while countries in the world average 13 percent. Thus, logistics costs in the country are 11 percent more expensive.

"Our SOEs combine Pelindo into one force. Later the Pelindo container will be the 9th largest in the world in terms of capacity, this has never happened and will happen this year. For 20 years it has been stuck, we will do that," he said during Live Instagram on Wednesday , August 11th.

For your information, since last year the government has planned to merge or merge port SOEs from Pelindo I to Pelindo IV. This step is believed to improve the quality of Indonesia's logistics.

Later there will be four subholdings based on business clusters, namely container, non-container, logistics and hinterland development, as well as marine equipment and port services.

Previously, the President Director of Pelindo II, Arif Suhartono, said that the planned unification will be carried out in September 2021. In addition to the merger of the main Pelindo, a sub-holding will be established which can be implemented.

Arif revealed, there are different problems in each port. Such as high logistics costs due to less than optimal port operations and infrastructure so that waiting times and connectivity are not optimal.

"The second problem faced in the port industry is that the structure is less than optimal. To develop operations and infrastructure, it causes efficiency and less than optimal capital expenditure," he concluded.