Gov't to Raise Port Storage Rents  

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  • TEMPO.CO, Jakarta - Coordinating Minister for Maritime Affairs Rizal Ramli promised to solve the nation's dwelling time problem at ports immediately by cracking down the people that are causing it. One way is by raising the rental cost for Tanjung Priok Port's storage houses.

    "We will crack down the mafia," said Rizal on Sunday, AUgust 23, 2015.

    One of the steps to be taken is overhauling the rental cost system at Tanjung Priok Port's warehouses. The port's cheaper rental compared to private warehouses is said to have contributed to the long dwelling time.

    The second, Minister Rizal said, the government will also tighten the process of importers placement on the red line to eliminate illegal practices. By doing so, it is the expected that number of importers in the green belt will increase.

    Third, the government will establish a direct train line leading to ports in order to minimize congestion around the port.

    The forth is enhancing the quality of ICT-based information system that stores containers' data. And lastly, the authorities will crush down the mafia associated with dwelling time.

    Rizal claimed to have information about the actors behind the lengthy loading and unloading process. The minister was reluctant to disclose further information, but said that he will "crack down whoever is behind it regardless of their backups."  

    He said he had coordinated with Armed Forces Commander Gatot Nurmantyo and Police Chief Badrodin Haiti on the issue.

    "Next week we will begin holding discussions on what needs to be done to solve this problem."

    Indonesia' has one of the longest port dwelling time in the world. It is the worst in Asia with dwelling time at Tanjung Priok is approximately 5.59 days.

    President Joko Widodo had ordered to shorten dwelling time to 4.7 days in order to compete with neighboring countries and eliminate the cost inefficiency that reaches up to Rp780 trillion per year.