Shipowners Deny Jokowi's Accusation on Sea Toll Monopoly
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31 October 2019 11:42 WIB
TEMPO.CO, Jakarta - The Indonesian National Shipowners Association (INSA) denied President Joko “Jokowi” Widodo’s accusation that private parties monopolized goods shipment through sea toll that was subsidized by the government.
INSA of East Java branch head Steven H Lasawengen said that private firms did not monopolize the price of goods that were shipped through the route of sea toll because they already had a tender agreement.
“The price of goods depends on the market mechanism, and that is not set by the government. By means, sea toll is not related to the market mechanism,” said Steven to Bisnis, Wednesday, Oct. 30.
Despite the government’s subsidy of sea toll, Steven explained, the price of goods would not necessarily cheaper than prices set before affected by subsidies. This was because the sea toll was merely a transportation mode, while the price was set by the market mechanism.
Steven further suggested the government to manage the market mechanism through the change of one-price fuel across the country, instead of granting sea toll subsidy.
Previously, President Jokowi suspected the monopoly practice on the product shipments via sea toll committed by private firms. The statement remarked by the President Wednesday at his office, Jakarta, was made during a limited meeting on the presentation of programs and activities about maritime affairs and investment.
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