Central govt tips green light to Jakarta New Port

Central govt tips green light to Jakarta New Port

Damar Harsanto, The Jakarta Post, Jakarta

After a prolonged tug-of-war with the Jakarta administration over
the development of the Jakarta New Port, the central government
gave signs of approval Monday that the project could go ahead.

Citing Government Regulation No. 69/2001 on national ports,
the central government had previously insisted that only state-
owned port operator Pelindo II had the authority to build new sea
ports.

The city administration, however, argued that according to Law
No. 34/1999 on Jakarta administration, it had a stronger legal
basis to develop and manage its own ports.

"The central government will allow regional administrations to
operate their own seaports, but we have to ensure that they
fulfill standard services and facilities required by the Ministry
of Transportation," said I Made Suwandi, director of the Ministry
of Home Affairs' regional administration at an international
seaport seminar here.

Jakarta has long planned to build what it calls Jakarta New
Port worth Rp 8 trillion (US$855 million) in East Ancol, North
Jakarta, but its construction has been delayed to the dispute
with the central government.

Suwandi asserted that the capability level of each regional
administration to meet the required standard was crucial since
"the management of international seaports puts the country's
reputation before international communities at stake."

However, he admitted that the participation of local
administrations in seaport management would help relieve the
central government's burden so that it could focus on efforts to
upgrade the country's seaports in general so as to keep up with
stiffer international competition.

Similarly, the director-general of sea transportation with the
Ministry of Transportation Tjuk Sukardiman said that the ministry
would allow a cooperation scheme for seaports, involving
concerned parties such as private investors, regional
administrations and state port operator Pelindo.

"Hopefully, the House of Representatives will complete their
deliberation of the new law on seaports this year. We have
finalized the draft and we will immediately send it to the
House," Tjuk said.

Meanwhile, Jakarta Governor Sutiyoso complained that
overlapping regulations had impeded the development of the
project.

"It is urgent for us to upgrade all infrastructure in the
capital to make it more competitive, including our outdated
seaport. Now, we have an investor ready with fresh cash and
willing to finance the project. It will be disadvantageous to
suspend the project only because of the rigid implementation of a
regulation," Sutiyoso said.

He was referring to Government Regulation No. 69/2001 on
national ports in which Pelindo II is given sole authority to
construct new seaports.

Pelindo II opposed the project as it had planned to construct
a similar multipurpose port in the same area.

The port, which would be equipped with a car terminal,
multipurpose terminal, offices and business/shipping center,
would be completed within six years.

The project will apply Japanese technology to dredge some 486
hectares from the seabed and reclaim 242 hectares of coast.

PT Marindo Bahtera Development will finance the project, in
which the administration will be given 5 percent of the shares.

Environmentalists have opposed the plan amid concerns that the
reclamation project would damage the ecosystem on the capital's
northern coast.