Though they seem similar since they are tasked with similar jobs, but from a legal perspective, the authority, control and supervision, as well as port management in Indonesia, Singapore, and Malaysia are different. They have different characteristics.
Such conditions affect many aspects in the port planning, development, and operation. The conditions also influence the way on tackling any problems or in policy making relating investment.
Achmad Ridwan Tento, General Secretary of Indonesia Maritime, Logistic and Transportation Watch (IMLOW), highlighted the background of these different characteristics and conditions, naming the different status of port authority (PA), or OP in Indonesia, as one of key factor.
He noted that the status and the level of regulatory authority of the port authority will significantly affect how effective and efficient the port service is. In addition, he said, it would also affect the effectiveness of consolidation among stakeholders.
“The highest regulatory board in our ports is OP (PA/Port Authority). But, OP is a subordinate of Hubla (Directorate General of Sea Transportation), Ministry of Transportation. OP is responsible to the Hubla,” Ridwan said.
“It is different with the PA in the other countries, in which it is directly responsible to the minister, even some directly to President. This makes the PA’s legal position is stronger. It is under a stronger legal umbrella,” Ridwan told Indonesia Shipping Gazette this morning (Monday, July 6, 2020).
He affirmed that according to the existing laws (UU), the PA is a port policy maker and is authorized to do control and supervision in any port activities including the aspects of safety and security.
“Our OP is authorized to do those activities. Unfortunately, it doesn’t hold the highest authority. OP is responsible to Hubla,” said Ridwan, a doctor in port-affair law.
He named an example in which the PA has the highest authority. The PA of Singapore – the Maritime and Port Authority (MPA) of Singapore – he said, is the highest regulatory board in the port that is responsible directly to the minister.
This position gives the MPA of Singapore a full authority to promote the use of port facilities, to regulate and control navigation, and is fully authorized to give permits on sea services.
Similar to Singapore, the PA in Malaysia is also more independently authorized to control the port. The Malaysian PA is authorized to facilitate trade and to do port development plan, supervision of regulation on privatized facilities and services, and authority for asset management.
The Malaysian PA is directly responsible to ‘Pertuan Agung’. The main task of the Malaysian PA is to promote the port and focus on port development.
“Based on our (IMLOW) legal analysis, the role and function of our OP should be upgraded. It should be directly responsible to the related minister, not to a (technical) directorate general. Even, if necessary, directly to president,” said Ridwan.