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KSOP Balikpapan & Indika Logistics MoU on Terminal Kariangau Interport Concession

The Ministry of Transportation has officially granted assignment and concession rights for the provision and/or port services of the Terminal Kariangau Interport in Balikpapan, East Kalimantan, to PT Indika Logistic & Support Services (ILSS).

This concession agreement is contained in the agreement signed directly by Capt. Mugen Suprihatin Sartoto as Head of KSOP (Port Authority and Harbour Master) of Balikpapan Port and President Director of PT ILSS Widjaja S. Sumarjadi, on Monday (27/3/2023) in the Sriwijaya Room, Karsa Building, 4th floor, Ministry of Transportation of the Republic of Indonesia.

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The MoU assignment was witnessed by Acting Director General of Sea Transportation Dr. Capt. Antoni Arif Priadi, M.Sc and representatives from the Legal Bureau of the Ministry of Transportation.

The concession agreement stated the agreed concession period and the terminal area covering more than 32,000 m².

The concession agreement that was established between KSOP Class I Balikpapan and PT ILSS is one form of implementation of Law No. 17 of 2008 concerning Shipping and Minister of Transportation Regulation Number 48 of 2021 which states that port service provision and/or service activities are carried out by business entities. Port (BUP) is carried out based on a concession or other form from the Port Authority, which is set forth in an agreement.

PT ILSS is a Port Business Entity holding permit number KP 338 of 2012 issued by the Minister of Transportation on March 15, 2012.

PT ILSS has the Kariangau Interport Terminal which is a multipurpose terminal with a range of services ranging from loading and unloading of liquid cargo, bulk cargo, to general cargo. Currently, the Kariangau Interport Terminal has also obtained an International Ship and Port Facility Security (ISPS) Certificate.

President Director of PT ILSS Widjaja S. Sumarjadi, in his welcoming speech stated, hoped that by signing this concession agreement, besides being able to improve port services to stakeholders, it also creates healthy and professional competition, and can realize economic equality in the area around the terminal as a the result of an increase in Non-Tax State Revenue (PNBP) originating from concession revenue.

On that occasion, Plh. Director General of Sea Transportation, Dr. Capt. Antoni Arif Priadi, M.Sc, said that the positive impact arising from this concession agreement must be in line with the professional operation and management of terminal facilities.

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“One of them is through a good information system and regular reporting in accordance with applicable laws and regulations,” said Anton.