Indonesian Political, Business & Finance News

New management system planned for major ports

New management system planned for major ports

JAKARTA (JP): A number of major ports in the country will soon
be supervised under a "one-roof port management system" to boost
the efficiency of services, Minister of Transportation Haryanto
Dhanutirto said yesterday.

Haryanto, after meeting with President Soeharto at the Bina
Graha office, said that a plan on the reorganization of four
major ports -- namely Belawan in North Sumatra, Tanjung Mas in
Central Java, Tanjung Perak in East Java and Makassar in South
Sulawesi -- to operate the new system has the President's
approval.

The new management system, Haryanto said, will be similar to
that presently applied at Jakarta's Tanjung Priok port.

Under the system, all the documents and cargo-handling
procedures will be carried out solely by state-owned port manager
PT Pelabuhan Indonesia II.

The port administration is only charged with supervising
Pelabuhan II's activities and coordinating the activities of all
other government agencies related to the port operations.

Previously, various government agencies, such as the port
administration, the customs and excise office, the Ministry of
Industry and Trade and the health office, were responsible for
handling documents concerning their respective offices.

The red tape caused inefficiency and complaints from port
users.

Haryanto said yesterday that the one-roof system in Tanjung
Priok has helped increase the port's productivity to exceed its
target.

"On March 18 and March 24, for example, the port managed to
unload 65,000 tons of cargo a day and 140,000 tons a day,
respectively. This is more than the target of 60,000 tons a
day... Last May, it was reported that the port's maximum
productivity was only 49,000 tons a day, or an average of 35,906
tons a day," he said.

For container handling, Haryanto said, the highest
productivity recorded on March 18 and March 24 was 3,146
containers, higher than the target of 3,000 containers.

Haryanto said yesterday he also reported to Soeharto on the
reduction of excessive red tape within his office in line with
the government's drive to cut the costs of doing business in
Indonesia.

"Now, foreign ships do not need permits to operate in
Indonesia, but they must have their legal papers in order and
meet a number of safety and environmental regulations," he said.

To ease the registration of ships, the government has also
added the number of registration offices to 43, from the previous
26.

For land transportation, Haryanto said, most operational
permits can now be obtained free of charge.

"Control cards for public vehicles which previously had to be
renewed after every trip, can now be renewed every five years,"
he said.

Haryanto said he also reported the results of a meeting of
transportation ministers of the Association of Southeast Asian
Nations (ASEAN).

The participants of the meeting decided on an "ASEAN
transportation action".

The action includes the development of multi-mode
transportation and trade facilities in ASEAN; the harmonization
of transportation regulations in ASEAN member countries; the
improvement of air transportation management; cooperation in
shipping safety and prevention of seawater pollution; the
development of human resources in transportation and
communication; and the development of competitive air
transportation services to meet the upcoming open-air policy
which will be gradually applied in ASEAN. (pwn)

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