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2. Merger Pelindo III and Pelindo IV is delayed.

To improve the performance, to make assets bigger, and to create the efficiency of service system for shipping companies who load and unload in East Indonesia ports, the Government of Indonesia, through State Minister of BUMN is planning to merger two port companies (Pelindo III--Surabaya base and Pelindo IV--Makassar base) belonging to government.

As we know in 2001, the government joined national port companies in Indonesia based on their areas: PT Pelindo I and PT Pelindo II manage ports in west Indonesia, which include Sabang, Belawan, Teluk Bayur, Tanjung Priok, etc. PT Pelindo III and PT Pelindo IV manage ports in east Indonesia.

This merger is considered only as an effort from State Ministry of BUMN who intends to improve their performance to gain profit without concerning the negative impacts. Following the refusal from Makassar society, where PT Pelindo IV head office takes place, as after merger all activities will be centered in Tanjung Perak Surabaya (where PT Pelindo III head office takes place). If all activities are run in Surabaya, Makassar society are worried that Surabaya will dominate all export-import activities and the producer areas in east Indonesia will get nothing. It will cause economic gap. Moreover, Makassar, geographically has been East Indonesia gate for export-import activities. Some also think that making Surabaya as head center is irrational because it will impact the exporters for creating high cost. In addition to it, it may harm business as it will make port service tariff referring to international tariff, especially in East Indonesia.

Ports in east Indonesia are triggers of industry investment activity of various sectors including trading and a circle of distribution system of domestic and international trading. Therefore, one alternative offered is government improves facility and instrument for cargo load and unload activities in Makassar, Bitung, Sorong, Banjarmasin, and NTT and that will up grade their status to become international ports.

Currently, Makassar main port has executed new load and unload tariff, as follow:

PT. Pelindo III and PT. Pelindo IV Profiles

Currently, PT Pelindo III manages 39 big and small ports spread in seven provinces: Central Java, East Java, Bali, NTB, NTT, South Kalimantan, and Central Kalimantan. Two ports are not active, Tuban and Panarukan ports in East Java. But the inactiveness of those ports does not affect the company performance. Benoa Port in Bali has Cruise Terminal as tourism destination. PT Pelindo III, having good facilities, has good opportunity to develop other business and cooperate with other business partners in communication, information services, etc. Operationally, PT Pelindo can serve all ship, goods, and passenger visits through sea ports.

For ship services in port, the company has business partner; the companies whose activities affect directly to productivity of port facilities:

--PT International Bulk Terminal for coal port building in Mekar Putih, Kotabaru.

--PT Gresik Jasa Tama for break bulk Terminal building in Gresik Port

--PT Dina Karya Samudera for procuring delayed ship

Pelindo III has 3 sister companies: PT Terminal Peti Kemas (ship operation service, ere). PT Rumah Sakit Pelabuhan Surabaya (health service), PT Portek Indonesia (Maintenance and Rental of Loading and Unloading Equipment and other port facilites).

PT (Persero) Pelabuhan Indonesia IV manages general ports consisting of 17 branch ports and 4 areas spread in Makassar, East Kalimantan, South Sulawesi, Central Sulawesi, South East Sulawesi, North Sulawesi, Maluku and Papua, or in other word, they cover half of Indonesian sea.

PT Pelindo IV projects Makassar port as a center of consolidation, distribution, and gate for east Indonesia. Therefore, facility and equipment have been established using the mechanism of Rubber Tire Gantry Crane System operated in the end of 2000. Makassar and Bitung ports will be projected to be equal as world class ports.

In approaching free market which is full of challenges, ports in Pelindo IV area, especially those in international area (Selat Makassar), facilities will be developed as those in Makassar, Balikpapan and Bitung ports. Makassar port has been equipped with container terminal, and other facility such as two units of gantry crane, 5 units of transtainer, 10 units of head truck, 20 units chasis, etc. Container terminal will also be developed in Bitung port to welcome AFTA. To improve the service of embarkation and debarkation of passengers, all branch ports, except Merauke port, have been provided with passenger and equipment terminal as well as improving service. The fund allocated for Bitung reached Rp 6.4 trillion, for Samarinda reached Rp 4.2 trillion, and Merauke reached Rp 960 million.

Meanwhile, the utilization of facility and equipment in general has not been optimal currently. The port utilization is still under 60%, port facility is still under 40%, and the utilization of loading and unloading equipment facility of delayed ships is still under 50%. This data shows that the capacity of facility and equipment in some ports can support the next growth.

For expansion, PT Pelindo IV received support from Overseas Economic Corporation Fund (OEFC) for building container port in Makassar which now is operating and expanding Bitung port which is still in development stage. The loan from Nordic Investment Bank (NIB) is utilized to purchase 2 units container stacker and the loan from Islamic Development Bank (IDB) is utilized for procuring container loading and unloading terminal in Makassar port. Currently, Pelindo IV is improving the capacity of Bitung port by utilizing aid from Overseas Economic Corporation Fund (OECF). This engineering design stage has been started since 1998 and it is predicted that the completion of this project in general is in 2005. The traffic increase which includes ship, container, good, passenger visits during the period of 1998-2002 is reduced to 1.14%. However, the capacity of ships, containers, goods, and passengers increase to 1.80%.

PT Pelindo IV cooperates with its business partners such as shipping company, EMKL, PBM (Loading and Unloading Company) and TKBM. PT Pelindo III and PT Pelindo IV face some challenges, such as high cost for maintenance/procurement of port facility and equipment amounting Rp. 104.6 trillion, including Rp. 25.6 trillion for procuring container in Makassar port and dredging in Samarinda and Manado ports. In addition, container loading and unloading is the monopoly of Pelindo I, II, III, IV who increase port tariff which cause national shipping companies not able to compete with foreign shipping. There are also many institutions involved in container service that makes difficult to reach productive and optimal service. Operational performance, especially performance of ship service, measured by Waiting Time (WT), Idle Time (IT), highly depends on the container productivity. However, the container companies are unlimited, and make their performance unprofessional.
Tabel--1

Prices of CDMA-based handsets, 2003

Brand Price Fasility
 (Rp)

Nokia 3583 1,700,000 Polyphonic, games, 500 phone book,
 Java support, monochrome screen
Nokia 3586 1,790,000 Polyphonic, games, 500 phone book,
 Java support, colored screen
Nokia 2280 1,290,000 Games, Java support, 250 phone book
Motorola V120e 1,700,000 GPS support, FM stereo, multi point
 synchronization
Hyundai TX30B 1,599,000 Speaker phone, polyphonic, calculator,
 alarm
Sanex SC 9530 1,600,000 Dual band, LCD screen, mono graphic,
 polyphonic
Sanex SC 9550 2,700,000 Dual band, screen with 65,000 colors,
 high resolution

Data from various sources

Table--1

Joint National Port Companiesn, 2002

(Rp trillion)

 Name of the company Asset Revenue Profit

PT. Pelabuhan I 1,073.6 492.4 190.4
PT. Pelabuhan II 4,105.1 1,785.3 262.7
PT. Pelbuhan III 2,057.1 784.3 303.1
PT. Pelabuhan IV 665.7 208.9 27.3

Source: State Ministry of State Owned Company (BUMN)

Table--2

Port Loading and Unloading Tariff
Soekarno-Hatta, Makassar 2003

Types Tariff
 (Rp per ton)

 Previous New

General cargo liner 12,435 14,925
Fios 18,829 22,595

Bagged cargo curah 8,486 11,383
Fios 14,362 17,234

Liquid drum liner 9,934 11,921
Fios 15,036 18,043

Source: Data Consult

Tabel--3

Ports managed by PT Pelindo III

Class Ports Province

Main Tanjung Perak East Jawa
 Tanjung Emas Central Jawa
 Benoa Bali
I Kupang NTT
 Lombok NTB
 Banjarmasin South Kalimantan
 Palangkaraya Central Kalimantan

Source: PT Pelindo

Table--4

Ports Managed by PT Pelindo IV

 Class Ports Province

Main 1. Makassar South
 Sulawesi
I (One) 2. Balikpapan East
 Kalimantan
 3. Samarinda East
 Kalimantan
 4. Bitung North Sulawesi
 5. Ambon Maluku
 6. Sorong Irian Jaya
II (Two) 7. Jayapura Irian Jaya
 8. Tarakan East
 Kalimantan
 9. Pantoloan Central
 Sulawesi
 10. Ternate Maluku
III (Three) 11. Kendari North
 Sulawesi
 12. Biak Irian Jaya
 13. Pare Pare South
 Sulawesi
 14. Merauke Irian Jaya
 15. Manokwari Irian Jaya
IV (Four) 16. Fak Fak Irian Jaya
 17. Gorontalo North
 Sulawesi
Areas Manado North
 Sulawesi
 Nunukan East
 Kalimantan
 Toli Toli Central
 Sulawesi
 Bandanaira Maluku

Source : PT Pelindo
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Title Annotation:Communication
Comment:2. Merger Pelindo III and Pelindo IV is delayed.(Communication)
Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:Aug 12, 2003
Words:1454
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