Thursday, 14 November 2019

Minister Dismisses Prabowo's Allegations on Foreign-run Ports

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Markus Wisnu Murti

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  • Transportation Minister Budi Karya Sumadi. TEMPO/Fajar Pebrianto

    Transportation Minister Budi Karya Sumadi. TEMPO/Fajar Pebrianto

    TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi has shrugged off the statement made by presidential candidate Prabowo Subianto during the fourth presidential debate on foreign-controlled Indonesian ports. 

    Budi Karya said foreign ties with at ports were limited to the use of concessions as part of the effort to lessen the dependence on the state budget. Budi Karya explained that the operation of a port required at least Rp10 billion from the state budget.

    “The fact is that the partnership is limited to concessions. It’s outright false to think that we are selling out to other nations,” he said in a meeting with the Sea Transportation Directorate General on Monday, April 8. 

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    The concessions referred to by the minister included the provision of port services for a certain period of time and compensation.

    Budi Karya Sumadi said cooperation in the management of ports with foreign parties only existed at Tanjung Priok Port in Jakarta and Surabaya’s Tanjung Perak Port.

    Tanjung Priok’s Jakarta international container terminal (JICT) has been jointly run by PT Pelindo II and Hutchison Ports Holding (HPH) since 1999. Pelindo II also founded a joint venture with Mitsui & Co., Ltd., PSA International Pte Ltd, and Nippon Yusen Kabushiki Kaisha (NYK Line). Meanwhile, at Tanjung Perak, Pelindo III teams up with DP World.

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