Ministry of Transportation is Focusing to Increase Sea Toll Productivity

Luthfil Hadi - Jakarta, 30/08/2018, 14:01


Budi Karya Sumadi, Minister of Transportation of Republic of Indonesia hoped the sea toll can be used to spark economical movement of eastern Indonesia’s product to western Indonesia. He said, the purpose of sea toll is to create a connectivity between eastern and western Indonesia so they could reduce the price disparity between the area. That is why the Ministry of Transportation always encourage to increase the load productivity of sea toll.

Sea toll is expected to increase the distribution’s efficiency from western Indonesia to eastern Indonesia with shorter time, cheaper cost, easier method so it could reduce the price disparity between eastern and western part of Indonesia. It is also expected to spark economic revolution of eastern Indonesia by encouraging the movement of eastern local product to western Indonesia.

In the 4 years of its operation, Sea Toll Program is being continuously evaluated. The reason is so that sea toll can be better and achieve their target. The evaluated parameters are such as connectivity, cost, schedule, problems in the supporting infrastructure of the ports, effectivity and efficiency of using the space in ship, and also the effect of sea toll in the price disparities between eastern and western Indonesia.

The Director of Sea Traffic and Transportation, Capt. Wisnu Handko said, “The government is continuously evaluating and improving the sea toll to realize the purpose of sea toll, that is to reach and distribute logistics to disadvantaged, remote, and outer areas as well as the area in the borders. Also to ensure the availability of products and reduce the price disparity to increase Indonesian prosperity”.

The main problem of sea toll is the low distribution of product from the eastern to western Indonesia, according to Budi. Capt. Wisnu also said the same thing that the problem which always comes up is the low rate of fulfilment in the ships that depart from eastern Indonesia. According to him, by utilizing the sea toll to bring the eastern Indonesia’s product to the trade center in Java would be favourable because with lower transporting cost, it can improve the productivity and open new jobs.

Wisnu said that to create a trade balance, The Directorate of Sea Traffic and Transportation is continuously encouraging the eastern Indonesia’s district head and market players to distribute their industrial and featured product using sea toll. The method taken by DSTT to realize their target includes the preparation of discount mechanism on transport cost for the first five unit of each dry and reefer container departing the eastern Indonesia port. DSST is also procuring another 40 units of reefer container to ships fisheries.

“The 15 shipping routes of sea toll is not only to reduce the price disparity, but we will also increase the amount of cooperation with district head to increase the number of commercial vessels departing from eastern to western Indonesia. This year we are campaigning the distribution of eastern Indonesia product to western Indonesia”, said Budi.

The sea toll is progressing greatly according to the Minister. This progress could happen because there are competition in shipping service between government own business Pelni and private shipping business. With this competition, the nation can save the fund to operates the sea toll.

Capt. Wisnu feels the recommendation to increase the subsidized every container handling activity is not on target. The government is still focusing to evenly make the access for the ship to disadvantaged, remote, and outer areas as well as the area in the borders. Not only that, though not given any extra subsidy, sea toll already operates 19 vessels, higher than the target of 15 vessels for the 2018 target at the moment. The government even going to procure another 3 feeder ship before the end of the year.

With subvention budget of IDR 447 Billion (USD 30.4 Million), it is still considered to be lower than the budget for other kinds of transportation. The government is studying the possibilites to free the freight, especially with the unfully loaded ship from Tanjung Perak Port to disadvantaged, remote, and outer areas as well as the area in the borders for the empty dry and refeer container using subvention for ship that is operated by PT Pelni.

As of now, sea toll can access 58 ports across the nation, and soon the new route in the west Sulawesi corridor will be opened. This route hasn’t been sailed by liner container vessels. The high logistic and port cost and the facility to load and unload in eastern Indonesian ports will be continuously improved, said Capt. Wisnu. The consolidation of the tariff of manpower for load and unloading will be done in tripartite ways, improving the road access and the capacity if trucking container payload in the ports, and the connectivity with other transportation mode.

Capt. Wisnu said his office always promote and coached the District office, BUMN, Sailor association, stakeholder, and sea toll operator on sea toll programs. This is done in sync with other related Ministry and Organisation such as Ministry of Maritime Affair Coordinator, Ministry of Trade, Bappenas, and BNPP.



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