APSN Banner

Ministry offers private sector to manage government-run ports

Antara News - November 14, 2023

Dewa Ketut S W, Resinta Sulistiyandari, Badung, Bali – The Transportation Ministry offers opportunities for the private sector to manage government-run ports to reduce the state budget burden.

"We are offering this opportunity in stages for the private sector," the ministry's Director General of Sea Transportation, Antoni Arif Priadi, remarked on the sidelines of the 47th ASEAN Ports Association Meeting in Badung, Bali, on Tuesday.

However, he has yet to furnish details of potential ports that could be managed either by the private sector or state-owned enterprises (SOEs).

With port management run by the private sector, Priadi remarked that the government can allocate the state budget to build ports in remote areas.

"We will use the state budget to build more small ports in remote areas. If the big ports are run by the private sector, we will still get the concessions from them, but the operational budget no longer uses the state budget," he noted.

Priadi then highlighted potential port investment schemes and partnerships, including through the state budget, whether sourced from domestic funds or loans and private and SOEs' support.

Furthermore, he pointed to the presence of concession schemes and government and business entity cooperation (the public private partnership).

Regarding concessions, Priadi noted that there are 34 concession ports, with total investment estimated at Rp100.89 trillion ($6.426 billion) outside the existing ports, followed by 12 new ports or terminals, and 13 special ports and terminals for special purposes to become public ports and terminals.

Meanwhile, for the partnership scheme, a total of 48 projects will be started since 2019 for all sectors.

Based on the current National Port Master Plan, Indonesia has 636 ports comprising 102 commercial ports and 534 non-commercial ports, with 1,321 ports planned to be developed, Priadi stated.

To realize this plan, one of the national policies related to ports is aimed at encouraging investment participation from the private sector.

Source: https://en.antaranews.com/news/298638/ministry-offers-private-sector-to-manage-government-run-port