City, govt settle feud over new port development
City, govt settle feud over new port development
Damar Harsanto, The Jakarta Post, Jakarta
After a prolonged tug-of-war between the Jakarta administration
and the central government over the development of the Jakarta
New Port (JNP), the two have started talks on port development on
the north coast of the city.
The talks will cover the port in dispute, located in East
Ancol, North Jakarta, which, it is estimated, will cost some Rp 8
trillion (US$860.2 million) to develop.
"We met with state port operator Pelindo II last week to
discuss plans to develop more competitive ports on the north
coast of Jakarta, which are well-integrated with other city
infrastructure," assistant to the city secretary for development
affairs Hari Sandjojo told The Jakarta Post on Sunday.
Hari revealed that the talks had moved into the "more
technical aspects" of the plan, pushing aside legal aspects,
which the prolonged dispute has centered around.
The central government previously insisted that only state-
owned port operator Pelindo II has the authority to build new
ports as stipulated in Government Regulation No. 69/2001 on
national ports, while the city administration cited Law No.
34/1999 on the Jakarta administration, which gives it the
authority to develop and manage its own ports.
Hari added that both parties also looked into possibilities to
form a joint venture company to develop the ports.
"We are considering assigning city-owned property company
Jakarta Propertindo to represent the administration in the
company," he said.
Indonesia has long dreamed of a more competitive hub port,
like those in Malaysia and Singapore, which could accommodate
large vessels.
The Ministry of Transportation has estimated that 80 percent
of the country's export and import activities have to go via the
two neighboring countries, causing a potential loss of more than
US$2 billion per annum for local businesses.
The Indonesian National Shipowners Association (INSA) has
called for massive improvements in the management of ports here,
criticizing inefficiency, which caused direct losses to the
shipping industry.
INSA chairman Oentoro Surya said that he would welcome any
measures to improve services at the country's seaports, including
the development of the JNP.
According to the Jakarta administration, port developer PT
Marindo Bahtera Development is waiting for an Australian firm to
finalize the project's blueprint.
PT Marindo will wholly finance the project, in which the
administration will be given five percent of the shares.
The port, which will boast a car terminal, multipurpose
terminal, offices and business/shipping center, will be completed
within six years.
The project will apply Japanese technology to dredge the water
from some 486 hectares of the seabed and reclaim 242 hectares of
coast.