Port Development Handed Over to Private Sector; Papua Included

TEMPO.CO, Jakarta - Transportation Minister Budi Karya Sumadi on Wednesday said the government will hand over the operations of major seaports, including in Papua, to the private sector. This step is taken to maximize the country’s non-tax revenue and attempt to take pressure off the State Budget (APBN).

“There are many ports, such as those located in Papua, that will be handed to the private sector in order to take the burden off from the government which will enable us to construct ports in other locations,” said Minister Budi Karya in today’s hearing before the House of Representatives (DPR) legislators on June 2. 

He explained that the government is partnering with the private sector in managing five ports in East and West Nusa Tenggara and noted the possibility for up to ten more ports. The minister also noted that SOEs such as PT Pelindo could be in the list. 

Minister Budi Karya pointed out the Tanjung Carat and Ambon Ports in South Sulawesi that have seen private sector management and constructions. He claimed that the private sector plans to spend investments valued up to Rp3 trillion.

On another note, the Transportation Ministry has also secured allocated funds from the World Bank, Asian Development Bank, and other international finance institutions amounting between Rp10 to 20 trillion to fund the construction of seaports within the next three years. The government has set 2024 as the deadline for the completion of the projects. 

Read: Post Papua Unrest; Jayapura Port Operates Normally

FRANCISCA CHRISTY ROSANA