Minister Of Transportation Budi Karya: Sea Highway Can Make Goods Prices In Eastern Indonesia Become Cheaper

Minister of Transportation Budi Karya together with President Joko Widodo (Jokowi). (Photo: Ministry of Transportation)

JAKARTA - Minister of Transportation (Menhub) Budi Karya Sumadi assessed that the sea highway program is important to connect connectivity between regions. Particularly eastern Indonesia. This program can also eliminate price differences to remote areas.

"The main objective is that price disparities can be eliminated. Earlier we said that many prices can be cut in the regions and to make it happen, synergy today is needed from stakeholders," he said, in a virtual discussion, Monday, September 21.

Budi said the sea toll would allow goods in western Indonesia to be shipped to the east and lower prices.

"This sea highway program can distribute logistics to remote areas, which cannot be reached by other transportation," he said.

Apart from that, said Budi, the maritime highway program can also build regional economies in remote areas by developing the distinctive products they have.

Furthermore, said Budi, it is necessary to expand the sea toll route. However, the Ministry of Transportation cannot run it alone, it needs the cooperation of various stakeholders so that its implementation can be comprehensive.

"Whether it's universities, also from the ministry of home affairs, the ministry of trade, our market really needs stakeholder support so that entrepreneurs and marine infrastructure operations can run this program well," he said.

Budi explained that Indonesia, which has many islands, certainly needs transportation that can reach all regions. There must also be supporting infrastructure, such as a port that makes access to this sea highway better.

For information, the sea highway is a routine and scheduled logistic distribution route from west to eastern Indonesia, from Belawan to Sorong.

The operation of the sea highway from year to year continues to be improved. The sea highway program has been implemented since 2015 with the initiation of the operation of 3 routes, increasing to 6 routes in 2016, 13 routes in 2017, and 18 routes in 2018-2019.

Of the 18 routes, 5 routes are operated by PT Pelni, 2 routes are operated by ASDP, 4 routes by Djakarta Lloyd, and 7 other routes operated by private shipping companies.