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.