Shipping reforms sought<\/p>\n
JAKARTA (JP): A University of Indonesia economist says the
\nnation must reform its shipping industry and improve its
\ntransportation infrastructure in order to maintain economic
\ngrowth and effectively face international trade liberalization.<\/p>\n
"Not only must Indonesia liberalize its shipping industry, the
\ncountry must also revamp its ports and land transportation
\ninfrastructure," Dorodjatun Kuntjara-jakti told a seminar on sea
\ntransportation and trade liberalization here yesterday.<\/p>\n
Dorodjatun warned that efficient transportation is required to
\nmaintain the export progress and growth in foreign investments
\nneeded to balance out Indonesia's debt burden and current account
\npayments, as well as to help control inflation.<\/p>\n
Government figures show that the country's debt service ratio
\nin the last fiscal year (1994-1995) was estimated at around 32
\npercent.<\/p>\n
The government has said that it wants to reduce the debt
\nservice ratio to 20.6 percent by 1998-1999.<\/p>\n
"By 1998, some of our foreign debts (a total of US$87.6
\nbillion) will reach maturity. We must increase our foreign
\nexchange earnings to keep the debt service ratio in check,"
\nDorodjatun told the seminar, which was sponsored by Bisnis
\nIndonesia daily.<\/p>\n
"This can be done by having an efficient transportation
\nsystem, which is needed to support our non-oil exports," he said.<\/p>\n
Containers<\/p>\n
Dorodjatun also said yesterday that Indonesia must anticipate
\nthe dominant trend in the international shipping industry towards
\nthe use of increasingly larger and more powerful container ships.<\/p>\n
"Quite soon, in the near future, those who cannot deliver
\ntheir goods and services with the least defects and in the
\nfastest and cheapest ways will be left out of international
\ntrade," he said.<\/p>\n
"Consequently, we have to revamp our shipping sector, our
\nports, our trucking regulations and even our railway networks,"
\nhe said.<\/p>\n
Many analysts and businessmen have noted that Indonesia's
\ncontainer terminals and trucking regulations are inefficient
\nbecause of complicated regulations, as well as poor
\ninfrastructure.<\/p>\n
Congestion was reported at Jakarta's Tanjung Priok and
\nSurabaya's Tanjung Perak ports.<\/p>\n
Minister of Transportation Haryanto Dhanutirto said recently
\nthat the government will institute a three-month trial period for
\nthe improvement of management systems and hardware facilities at
\nTanjung Priok seaport.<\/p>\n
Government figures indicate that since the authorities
\nintroduced the 1988 deregulation of the shipping sector, which
\nallows greater freedom of entry into different types of shipping
\nservices by foreign chartered vessels of various types, domestic
\nshipping firms have carried an average of only around three
\npercent of Indonesia's exports and imports.<\/p>\n
Shipping tycoon Soedarpo Sastrosatomo made a similar point
\nyesterday by saying that "most Indonesian shipping companies have
\nbecome mere shipping agents for foreign liners."<\/p>\n
Soedarpo said that the situation could be remedied if the
\ngovernment warranted protection for domestic shippers.<\/p>\n
"If the government protects the cement and paper industries,
\nwhy don't they protect the shipping sector as well?" he said,
\nwhile presenting his paper.<\/p>\n
Responding to the businessman's plea, Dorodjatun said that
\nunder increasing trade liberalization, protection of industries
\nwould no longer be relevant.<\/p>\n
"The most relevant factor will be improvement of efficiency.
\nThis is why domestic shippers must adopt mergers or strategic
\nrealignment to increase their efficiency rather than seeking
\nprotection," he said. (hdj)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/shipping-reforms-sought-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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