Pelindo Subholdings: How Will They Take Positioning?

Bambang Sabekti

By: Bambang Sabekti, Professional in Maritime Industry

PT Pelindo II (Persero) is  becoming  a Pelindo survivor ( the surviving entity) after the merger is carried out. This means that Pelindo II will become the parent of the merged Pelindo.

Deputy Minister of BUMN II, Kartika Wirjoatmodjo explained the reason why Pelindo II was chosen as the surviving entity, because the business model and services of Pelindo II were better than Pelindo I, III, and IV so that it became the leading sector of Pelindo as a whole.

On Friday , 1st October , there is signing the of incorporation Pelindo 1, 3 and 4 into Pelindo 2.

If we look at the best port practice, the achievement of Pelindo II services is in the leading sector, so we hope that later on, other Pelindo  will adjust their business and service models and their efficiency to achieve the same as in Pelindo II.

The Deputy Minister of BUMN II, who is often called Tiko, emphasized that the surviving entity was not very relevant to the context after the Pelindo merger. Because after the merger, 4 ( four) subholdings will be launched which will serve as operating holdings. This surviving entity is more of a strategic holding, not an operating holding. The 4 ( four) subholdings that will operate under it are Pelindo Petikemas, Pelindo Non-Petikemas, Pelindo Marine and Equipment and Pelindo Logistik.

Pelindo Peti Kemas

It is a big question why cluster Pelindo Peti Kemas will be headquartered in Surabaya. Is this the compromise decision  among current Pelindo?

Until now I can find logic answer considering the biggest container throughput so far in Tanjung Priok particularly and Pelindo 2 in general.  Based on data from 2015- 2019, Pelindo 2 handled 4.44 million boxes,  4.67 million boxes, 5.18 million boxes, 5.65 million boxes, 5.61  million boxes, respectively, while Pelindo 3 and Surabaya as HQ handled less, namely, 3.56 millioin  boxes, 3.76 million boxes, 3.98 million boxes, 4.31 million  boxes and 4.37 million  boxes respectively.

In addition, more mother vessel are calling at  Jakarta port, rather than at other ports, while almost all representative offices od global shipping companies/Main Line Operators  such as Maersk,  CMA, ONE, PIL, MSC, EMC, KMTC, SINOKOR, Heung A, Cosco, OOCL, CNC, ANL, HPL etc)  are in Jakarta. Business decision  is made at these representative offices and MLO’s senior management are officed.

It’s not make port user easy doing business with Pelindo  where business decision  is made and MLO’s senior management is officed. The other sources said that  the biggest revenue for container business is coming from Pelindo 3, which it’s I’m not sure as refer to the data above, Pelindo 2 generates more boxes in container business.

Pelindo Logistik

Logistics is a vital part of any business’ supply-chain management. Logistics involves three main elements: transportation, storage and distribution.

Logistics business is very challenging , particularly  if we talking about Global Logistics who arrange business from end to end (door receiving at origin port until door delivery at discharging port)  as cargo solution. As reports have said, 90% of US international container trade is controlled by buyers, mraning that it is buyers who for US trade, 90 % is nomination take decision in choosing the vendor/provider. For Europe Trade, meanwhile, around 80% is controlled by buyer and Intra Asia Trade is 50-50.

Nike, Addidas cargo  are the controlled by parties in US, LG business by Korea, Epson, Yamaha, Honda, Bridgstone etc are controlled by parties in Japan.

If one of purposes of the merger is to encourage Pelindo to go global, indeed it is lots of work has to be done by Management of Pelindo Logistics if they want compete with Global Player like Damco, APL Logitrics, Kuehne Nagel, Shenker , DSV etc.

Surely, it is a big jump if Pelindo Logistik wants to become a global player. But, of course, it needs the  world class people who run the business. And I think, it will  take longer time to achieve it, given so far they  more focus on domestic business rather than international business because of lack networking in international trade.

It needs the transformation and increasing efforts in creating value at all aspects  in tem of business process, corporate culture, people value, spirit for competition, global  network development, and digitalization.

In logistics business, more important is to have customer  or business rather than  the asset. Mostly, global logistics companies use OPA  (other people asset)  approach and don’t invest much on assets in doing business.

To go global, New Pelindo needs the people how has global view and well experience  in  global competition environment . Who’re they?

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