Car terminal operator PT Indonesia Kendaraan Terminal Tbk (IKT/IPCC), a subsidiary of state port operator that has been public-listed, absorbed 63.02% of its capital expenditure (capex) target last year. IPCC spent as much as Rp 27.46 billion, from Rp 43.57 billion 2021 capex target, for various investment.
IKT Corporate Secretary Sofyan Gumelar explained this Indonesia’s biggest car terminal operator continued its business development last year, amid the pandemic Covid-19 outbreak. IKT /IPCC also continued to explore cooperation with a number of branches and subsidiaries of Pelabuhan Indonesia (Pelindo).
Sofyan revealed that the integration of Pelindo allows the IPCC to be able to establish and explore cooperation with a number of branches and subsidiaries under Pelindo. This is aimed at business development, especially in terms of the car and RoRo terminals.
“We are exploring business development concepts with a number of areas for the development of RoRo Terminal services,” Sofyan said as quoted by Kontan.co.id (Friday, December 31, 2021).
Regarding expansion, one of the activities carried out by IPCC is the expansion of land which is currently being developed. IPCC, he said, was developing the ex-DKB area of the Tanjung Priok area which borders the IPCC stacking area with an area of 1.89 hectares.
In addition, throughout 2021, the IPCC continued to run programs of digitalization in a bid to accelerate business processes. Some digitalization programs intensively run last year included implementation of auto-gate, INTAPSS, the development of the Car Terminal Operating System (CARTOS), the development of a billing system, and RFID.
To expand its service coverage, IKT/IPCC has also explored potential cooperation in the management of the RoRo Terminals with some ports, including Belawan, Makassar, and other areas. Currently, IKT/IPCC has been involved in the operation of car terminals in Panjang (Lampung), Pontianak, and in Gresik (in collaboration with the Maspion Group).
Realization of the capex last year, Sofyan explained, was mostly allocated to reconstruct the 1.89 hectares area (ex-DKB), renovation of domestic gates, waterproofing of existing parking/stacked buildings, and other operational activities. “This is to support smooth operational,” he said.
As for the 2022 capex, the IPCC is still doing the calculations. This capex calculation is also related to the merger of Pelindo that has been carried out. “So we have to do a re-mapping of integrated businesses and the impact of the merger on our terminal activities,” explained Sofyan.
If later the IPCC is given a mandate and trust to be able to serve car terminals throughout Indonesia, the Pelindo ports in particular, then a higher capex is needed for the preparation of supporting infrastructure. This includes gates, stacking yards and to office digitization that will connect IPCC operations with car makers and Customs and Excise as well.