Govt Mulls to Subsidize Logistics Ships

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  • Kapal Pelni di Pelabuhan Tanjung Priok, Jakarta, (13/8). ANTARA/Yudhi Mahatma

    Kapal Pelni di Pelabuhan Tanjung Priok, Jakarta, (13/8). ANTARA/Yudhi Mahatma

    TEMPO.CO, Jakarta – The government is preparing a subsidy scheme for sea logistics as part of its efforts to boost national economic growth, National Development Planning (Bappenas) Sea Transportation head Bastian said on Tuesday, November 11, 2014. 

    For the early stage, the subsidized sea logistics will serve east Indonesia routes. Interested companies, Bastian said, were invited to participate in the tender of the subsidized sea transportation. 

    “The government’s contribution will be based on agreed routes,” Bastian said.

    Bastian explained that the amount of subsidy would be adjusted to the volume of goods carried by ships, adding that the subsidy would reduce transportation costs for business owners and step up economic growth in the maritime sector.

    To realize the plan, state-owned shipping company PT Pelayaran Nasional Indonesia (Pelni) has earmarked at least Rp700 billion (US$58.3) million provided through Public Service Obligation (PSO), and the Transportation ministry will allocate up to Rp500 billion (US$41.6 million) for pioneer shipping.

    “In addition to east Indonesia routes, we will also provide subsidy for west pioneer routes,” Bastian said.