IMLOW Proposes a Special Law on Port Affairs

picture: Achmad Ridwan Tento, General Secretary of IMLOW

The future concept of maritime law and rules calls for special law and regulation on port affairs which is seperated from the shipping law, according to Achmad Ridwan Tento, General Secretary of Indonesia Maritime Logistic Transportation Watch (IMLOW).

The law (UU) on port affairs, he said, is needed to guarantee legal politic certainty for investment, employment, trade, and fluent flow of goods as well as logistics activities at the port.

Ridwan expects the special law will regulate the status of port authority (OP) and will strengthen its function. He suggests the OP to be indeipendent and directly responsible to President.

“We propose the OP level is upgraded into the level of a ministry and directly responsible to President. It is expected that by changing its name to be a Board of Port Authority (BOP), it will be more indipendent in controlling any law and regulations on port and sea transportation in Indonesia,” he told the press yesterday (Monday, September 9).

He said, the Shipping Law (UU) No.17/2008 on shipping does not clearly state OP as the highest authorized institution in the port affairs.

Ridwan said that IMLOW has submitted proposals through Letter No.B–816 M/Sesneg/D-1/HK.00.02/09/2019 to give views and inputs on port affairs regulation to government.

The port affairs regulation is also become a good political will and legal basis on how to develop ports having competitiveness in global market. In addition, the separation from the shipping bill is also a good response to the new era of the industry that has come to 4.0 industry in which President Joko Widodoh has called all businesses to be well prepared for this industry.

According to IMLOW, the separation is also needed in view of the facts that the Government Regulation PP No.61/2009 on port is just ‘copy paste’ of UU No.17/2008 on Shipping.

In addition, since ports play key role in creating logiatics efficiency, clear regulation is needed. The ports play strategic role in cutting distribution cost that will finally affect on purchasing. Meanwhile the efficient logistics that the port can create will have a multiplier effect on national economy performance.

Ports can be seen as connecting facilities among distribution center, production, and market. “A clear separation between production and distribution and transportation will support an improvement of product competitiveness,” said Ridwan.

Legality

IMLOW also questions why the authority of OP is not legalized in a law (UU). Due to the absence of the law as legal basis, by practice, OP can not optimize its role and function as regulator.

“We see in a daily practice, OP is loosing power as regulator, compared to BUP (port operator),” he said.

In view of the important role of the port as gateway of the national economy, Ridwan urge the state to set up clear regulations relating the issue.

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