Luhut Pandjaitan: Calm, Patimban Was Made To Help The Ruwet Of Tanjung Priok

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan. (Photo: Instagram @ luhut, pandjaitan)

JAKARTA - The presence of Patimban Port is considered to be a threat to Tanjung Priok Port. This is because the two ports are located on the northern side of Java and are close to each other. However, the government guarantees that the two ports will synergize with each other.

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan said the main goal of the Patimban Port development was to reduce existing traffic at Tanjung Priok Port which accommodates more than 50 percent of international container traffic in Indonesia.

Furthermore, Luhut said that the government is committed to developing the transportation sector and logistics system to make it more efficient in boosting the national economy. This commitment is reflected in Presidential Instruction Number 5 of 2020.

"Indeed, right now we are really racing with efficiency. So efficiency should be the key word for us to work," he said, in the Ministry of Transportation webinar 3: Patimban Port and National Logistics Performance, Friday, November 27.

Another reason for the presence of Patimban Port, Luhut is as an effort to prepare the government in facing ASEAN connectivity in the coming 2025.

"ASEAN connectivity 2025, one of which is to develop an economic community in ASEAN countries, is expected to be able to collaborate with Patimban Port with Tanjung Priok Port," he said.

Patimban and Tanjung Priok ports must work together, because currently the travel time from the West Java industrial area to the Tanjung Priok Port can reach 4 to 5 hours. With the presence of Patimban which is connected to the toll road, it is expected that the distance is only 1 hour.

"So that the transportation costs will also be cheaper. So in the end Patimban Port can encourage a reduction in logistics, especially in the areas of DKI Jakarta, West Java, Banten and Central Java. With the first community, the initial stage of the operation of Patimban Port is for the automotive market," he said.

Luhut said, the role of ports is expected to strengthen economic resilience, especially in supporting trade activities in manufacturing.

"On a sustainable basis, the existence of a port that is able to support export and import activities is 16.5 million values by 2025. Indonesia should be proud because it is an investment destination for the world transportation sector with an investment value of Rp35 trillion," he said.

Not only that, according to Luhut, Patimban Port will also provide benefits to the surrounding community. Because it will open 149 thousand new jobs for residents of Subang Regency and its surroundings.

"This figure continues to grow with a target of 4.3 million jobs in the next 1 year," he explained.

Patimban Reduces the Burden of Tanjung Priok Port

Minister of Transportation (Menhub) Budi Karya Sumadi said that if it is already operating, Patimban Port will play a role in reducing the burden on Tanjung Priok Port.

"Therefore, we develop it to complement Tanjung Priok. Currently, Tanjung Priok has 7 million TEUs (container flow)," said Budi.

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Budi said, Patimban Port is located in a strategic area, through areas in West Java such as Cirebon, Subang, Karawang to areas in Central Java such as the Batang industrial area. Access is also traversed by the train line to the toll road.

"So later this development will complement each other so that those in West Bekasi, Tangerang, Bogor go to Tanjung Priok. Yang Karawang, Subang, Cirebon, Batang go to Patimban," he explained.

Previously, the Institute for Development of Economics and Finance (Indef) Senior Economist Aviliani said that Patimban Port and Tanjung Priok Port could 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 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 sold. 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.

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