Minister eases private investment in RoRo ship logistics

Transport Minister Dudy Purwagandhi has affirmed that the government is facilitating private investment in RoRo (roll-on/roll-off) ship logistics by removing business barriers and additional operational costs. Dudy stated that the government is opening the widest possible opportunities for business actors wishing to invest in logistics transport services using RoRo vessels, provided they are deemed to have business prospects. “We are removing obstacles, barriers for them, or roughly speaking, we are smoothing the path for them so they do not have additional costs to incur,” the Minister said during a media briefing in Jakarta on Friday evening. According to Dudy, the government will not restrict anyone who sees business opportunities in the sector, as the development of logistics transport requires the involvement of various parties, including the private sector. He explained that the government is not preparing a subsidy scheme for RoRo vessel operators, because logistics services are business activities that must be run based on each company’s economic calculations. Instead, the government is committed to creating a more conducive business climate by eliminating various barriers, including additional costs and licensing processes that can burden business actors. Dudy said that if these various barriers can be removed, companies only need to focus on operational costs so that business efficiency can increase and investment becomes more attractive. According to him, if a company still considers its business unprofitable, the cause needs to be examined comprehensively, including from the market demand side, which is the main factor in the success of logistics services. Therefore, the government is also striving to encourage demand growth through various forms of catalysts, including providing incentives that can increase interest in using RoRo ship-based logistics transport. “The catalysts are varied. Incentives can be all sorts of things; incentives can be to stimulate demand growth. I offer this to anyone,” the Minister said. Dudy revealed that PT ASDP Indonesia Ferry (Persero) has begun planning the operation of RoRo vessels for container transport on several routes as an initial step in developing these logistics services. “Currently, ASDP is the one daring to enter. If the private sector does not dare to enter, I cannot order them or force them, can I? It is impossible for them to force it if it is not viable for them,” he added. According to Dudy, each company has different investment capacities and strategies, so the feasibility of a project cannot be generalised, including in the development of logistics transport using RoRo vessels. “Whether it is viable or not depends on each company. But if a company has surplus funds, investing here can be considered a viable investment, depending on the capacity of each person, the capacity of each company, which varies from A to Z,” the Minister said again. Nevertheless, the government believes that logistics transport via RoRo vessels can reduce the burden on roads, as part of goods distribution can be shifted from trucks to sea routes more efficiently. He added that the level of demand will determine the success of the service, because business actors will choose the mode of transport offering lower distribution costs compared to land routes. Dudy is optimistic that the more competitive the transport costs using RoRo vessels, the greater the opportunity for logistics to shift from roads to sea routes, thereby continuously increasing national distribution efficiency.