Worrying Their Survival, PBM Asking For New Mechanism in Partnership with Port Operator

Damas Jati - 27/10/2017, 12:18

Indonesia stevedoring companies (PBM) are now worrying about their survival as port operators are now taking over the stevedoring works at the port, though opportunity for partnership is still open. They call for new system and mechanism as the existing one is absolutely threatening their survival.



Those are key points concluded from a discussion during the second regional assembly meeting (Muswil) of Indonesia Stevedoring Companies Association Chapter DKI Jakarta (APBMI DKI) on October 26.

Following the issuance of Shipping Law 17/2008, there is evidence to say that stevedoring companies lost more work opportunities as the new regulation allows port operators to overtake stevedoring activities at the ports/terminals.


“Many (stevedoring companies) have lost works due to the new system, while the existing term of partnership also gave less income for us,” Chairman of DPP APBMI HM Fuadi noted in his presentation.


The Shipping Law 17/2008 has been effective since it was enacted. The law, the article 344 point 3 in particular, allows port operators (BUP) to do stevedoring activities at their ports/terminals. However, the cooperation with stevedoring companies is still probable, following the issuance of ministerial decree PM 152 stressing that the BUP – though it is probable to self handle the stevedoring activities at its ports/terminals – can do cooperation with PBM in handling stevedoring/cargodoring activities.


Fuadi affirmed there was still partnership with port operator (Pelindo I – IV) until now, but with different system and mechanism among ports. “The system has changed. Let us say Tanjung Priok. This port has come to PBM Seleksi (port operator selects only 16 stevedoring companies as partners). This has forced the ‘non seleksi PBM’ lost works.”


IPC/Pelindo II’s Commercial and Business Development Director Saptono Rahayu Irianto, affirmed that following the issuance of shipping law, some ports have adopted a new system, like Tanjung Priok that has been adopting the selected system (PBM Seleksi). “In principle, we are still doing partnership. It is true, the system has changed. But, we do it according to the rule and regulation,” Saptono said, adding that this new system is also meant to increase productivity and to create a more efficient logistics performance.


Expected New Mechanism


Further, Fuadi expects the regulator (government) and port operator (Pelindo) not to adopt the ‘PBM Seleksi’ system at the other ports nationwide. Even, he asked the government and Pelindo II/IPC to remove this system at Tanjung Priok Port, and give opportunity to all PBMs to be partners of Tanjung Priok Port.


“We (DPP APBMI) have met all Pelindo, from Pelindo I to IV to discuss about this. We have asked to open opportunity for partnership with any PBM. No more ‘PBM Seleksi’, including in Tanjung Priok,” he said.


As reported earlier, of total 85 PBM member of APBMI DKI, there are only 16 PBMs as partner of Tanjung Priok Port. The partnership is done under profit sharing scheme of 60:40, meaning that 40% of the PBM operating income should be given to Tanjung Priok Port Operator (Pelindo II/IPC). The others that still have works at the port can do sub partnership with the 16 ones.


“We want the system and mechanism to change. Just open it to all with the new mechanism,” Fuadi recalled.


He proposed to involve all PBM but with different grade of sharing. “We can classify into three model of partnership, platinum, gold, and ordinary class. The better a PBM is, the higher it gets. Meaning that the share to Pelindo is lower,” he suggested.


The platinum, he said, is a class of best performance PBM. “They can give 40% to Pelindo. While the ones of level of gold and ordinary is 42 and 45% respectively.”


In responding the proposal and suggestion, Saptono underlined that new mechanism is very probable if the regulation says so. “New mechanism is very probable, if the regulation allows,” he said.


Head of Tanjung Priok Port Authority (OP) I Nyoman Gede Saputra also underlined that revision of the mechanism is very probable. He even agreed, saying his personnel view of free market is preferred.


“Personally, I prefer a free market so they can build up competitiveness to bring big market,” he said.

Meanwhile, the elected Chairman of Indonesia Stevedoring Companies Association Chapter DKI Jakarta (APBMI DKI) for the period of 2017-2022, Juswandi Kristanto, expects for a better partnership between PBMs and port operators in the future.