Soeharto warns of possible shipping crisis
JAKARTA (JP): President Soeharto warned yesterday that Indonesia could encounter a shipping crisis in the future if the growth of sea transport facilities continued to fall behind the rapidly increasing demand.
"If this happens, our national development program, which is currently entering the 'take-off' stage, will face serious problems," he said in Surabaya.
Soeharto was visiting the East Java capital yesterday to inaugurate a new shipping maintenance facility capable of handling ships of up to 50,000 dead weight tons and to launch the Palindo Jaya 500-1, a 400-ton, 500-passenger designed to cruise large rivers and dock in small harbors.
Both facilities are owned and managed by the government-run PT PAL shipping company.
State Minister of Research and Technology B.J. Habibie, who is also the president of PT PAL, said that the new ship was designed to have a high level of comfort and safety.
With a speed of 14 knots, Palindo Jaya 500-1 is capable of accommodating 10 first-class , 24 second-class and 466 economy- class passengers as well as 25 tons of cargo.
The ship is the first of 10 to be built in collaboration with Germany's Meyer Werft shipyard. It will mainly serve routes in Indonesia's eastern provinces, whose ports are often too small to accommodate ships owned by the state-owned PT Pelni shipping company.
Director General of Sea Transportation Suntoro was quoted by Antara as saying that Pelni plans to buy the 10 units during this sixth Five-Year Development Plan (Repelita) period, which will end in 1999.
So far, Pelni has been operating medium and large passenger ships, with capacities of 800 to 2,000 passengers, produced by Meyer Werft.
Suntoro said that currently Pelni owns and operates 17 ships and is expecting two more from Meyer Werft.
Habibie said yesterday the shipping maintenance facility will be used to support the construction of passenger ships, tankers, container vessels and bulk cargo ships.
Soeharto yesterday also inaugurated a hydrodynamic laboratory owned by the Agency for Technology Assessment and Application.
Soeharto stressed the importance of strengthening the country's maritime industry, saying that the industry was needed to create, maintain and restore the country's shipping fleets.
A strong shipping fleet, he added, was also needed to connect the thousands of islands in the Indonesian archipelago.
"Only with a strong shipping fleet can we make the country a sound unity, in terms of politics, economics, socio-culture and defense," he said.
Soeharto said the construction of the 74-meter-long and 15.2- meter-wide Palindo Jaya 500-1 is expected to reduce Indonesia's dependence on imported passenger and cargo ships and encourage PT PAL to improve its ship construction activities.
"Development in the maritime industry will drive other sectors to progress as well. It will also provide employment," he said.
Soeharto acknowledged that developments in these sectors would prepare Indonesia to face the consequences of globalization and free trade.
"We are entering an era where competition and changes are unavoidable...This should not make us afraid. Instead we must accept the situation with high spirits and an open heart," he said.
After inaugurating the new ship at Surabaya's Tanjung Perak port, the President -- accompanied by Mrs. Tien Soeharto and a number of ministers -- boarded the Palindo Jaya 500-1 to make a 26.5-hour trip to Jakarta's Tanjung Priok port.
The Palindo Jaya 500-1, which will be escorted by four navy warships, is expected to berth at the navy's dock in Tanjung Priok at 2:30 p.m. today. (pwn)