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TECHNICAL PAPER TO SUPPORT NPMP DECREE

ACADEMIC PAPER TO SUPPORT NATIONAL PORT MASTER PLAN DECREE


CREATING AN EFFICIENT, COMPETITIVE, AND RESPONSIVE PORT SYSTEM FOR INDONESIA
January 2012

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Indonesia Infrastructure Initiative This document has been published by the Indonesia Infrastructure Initiative (IndII), an Australian Government funded project designed to promote economic growth in Indonesia by enhancing the relevance, quality and quantum of infrastructure investment. The views expressed in this report do not necessarily reflect the views of the Australian Indonesian Partnership or the Australian Government. Please direct any comments or questions to the IndII Director, tel. +62 (21) 230-6063, fax +62 (21) 3190-2994. Website: www.indii.co.id. Acknowledgements This report has been prepared by Nathan Associates Inc. (Dr. Paul Kent, Mr. Richard Blankfeld) assisted by national consultants (Prof. Sudjanadi, Hidayat Mao, SH, DR. Russ Bona Frazila, and Ir. Budiyono Doel Rachman MSc.) and with invaluable support from the IndII office manager (Desi Rahmawati, SE), who was engaged under the Indonesia Infrastructure Initiative (IndII), funded by AusAID, as part of the Activity #244. We would like to extend gratitude to Coordinating Ministry of Economic Affairs, Bappenas, Ministry of Transport, Ministry of Finance, Ministry of State Own Enterprise, Pelindo 1-4, Tanjung Priok and Tanjung Perak Port Authorities, INSA, KPPU and NPMP Counterpart Team for their highly support and valuable informations. Thanks should also go to David Ray (IndII Facility Director), David Shelley (IndII Technical Director Transport) for their support and valuable inputs. The support provided by Efi Novara Nefiadi, IndII Sr. Transport Program Officer, is gratefully acknowledged. Any errors of fact or interpretation are solely those of the author. Dr Paul Kent Nathan Associates Inc. Jakarta, 12 January 2012

TECHNICAL PAPER TO SUPPORT NPMP DECREE

TECHNICAL PAPER TO SUPPORT NPMP DECREE

ACRONYMS
ADB APPI BPS COMTRADE CPO CY DGST DWA DWT EIA FFB GDP GoI GR 16 HP ICT IEDC IFC IMF ISPS JICA JICT KPPU Law MENPAN MoT MP3EI Asian Development Bank Asosiasi Produsen Pupuk Indonesia (Indonesian Fertilizer Association) Badan Pusat Statistic ( Statistic Indonesia) Commodity Trade Statistic Database crude palm oil container yard Directorate General of Sea Transportation David Wignall Associates dead weight tonnage Energy International Statistic fresh fruit bunches gross domestic product Government of Indonesia Government Regulation No. 61 of 2009 horsepower Information and Communication Technology Indonesia Economic Development Corridor International Finance Corporation International Monetary Fund International Ship and Port Security Code Japan International Cooperation Agency Jakarta International Container Terminal Commission for the Supervision of Business Competition Law on Shipping No. 17 of 2008 Ministry os State Administrative Reform Ministry of Transportation Masterplan Percepatan dan Perluasan Pembangunan Indonesia (The Masterplan for Acceleration and Expansion of Indonesia Economic Development) nitrogen phosphorous and potassium National Port Master Plan Organization of Petroleum Exporting Countries Port Authority(ies) Port Business Entities Pelabuhan Indonesia (Port Management State Owned Enterprise) Perusahaan Umum Pelabuhan Port Management Unit(s) Presidential Regulation No 67 of 2005 PT Indonesia Infrastructure Finance PT Sarana Multi Infrastruktur Rubber Tired Gantry Crane Special Economic Zone Sistem Transportasi Nasional (National Transport System) twenty foot equivalent units Technical Report on Development of National Port Master Plan

NPK NPMP OPEC PA(s) PBEs PELINDO PERUMPEL PMU(s) PR 67 PT IIF PT SMI RTG SEZ SISTRANAS TEU TR

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TECHNICAL PAPER TO SUPPORT NPMP DECREE

Contents
Chapter 1. Introduction ......................................................................................................... 1 Chapter 2. National Port Policy .............................................................................................. 4 2.1 Introduction .................................................................................................................... 4 2.2 Background ..................................................................................................................... 5 2.3 Indonesias Need for Integrated Port Policy ..................................................................... 7 2.4 Legal Context................................................................................................................... 8 2.5 Port Sector Vision and Goals ............................................................................................ 8 2.6 Port Policy Formulation, Implementation and Review.................................................... 10 2.6.1 Critical Issues........................................................................................................ 10 2.6.2 Policy ................................................................................................................... 11 2.7 Integrated Planning, Facilitation and Performance Monitoring ...................................... 11 2.7.1 Critical Issues........................................................................................................ 11 2.7.2 Policy ................................................................................................................... 13 2.8 Tariff Regulation ............................................................................................................ 14 2.8.1 Critical Issues........................................................................................................ 14 2.8.2 Tariffs ................................................................................................................... 14 2.8.3 Service Agreements.............................................................................................. 15 2.8.4 Rights of Explanation and Objection ..................................................................... 16 2.8.5 Policy ................................................................................................................... 17 2.9 Promoting Port Sector Competition ............................................................................... 17 2.9.1 Critical Issues........................................................................................................ 17 2.9.2 Complaints Procedure .......................................................................................... 18 2.9.3 Policy ................................................................................................................... 19 2.10 Enhance Labor Competitiveness .................................................................................. 19 2.10.1 Critical Issues...................................................................................................... 19 2.10.2 Policy ................................................................................................................. 20 2.11 Supporting Effective Port Safety Regulation ................................................................. 21 2.11.1 Critical Issues...................................................................................................... 21 2.11.2 Policy ................................................................................................................. 21 2.12 Supporting Effective Environmental Regulation ........................................................... 21 2.12.1 Critical Issues...................................................................................................... 21 2.12.2 Policy ................................................................................................................. 22 Chapter 3. Analysis of Port Traffic and Current Performance ............................................... 23 3.1 Approach and Data Sources ........................................................................................... 23 3.1.1 DGST Shipping Data Sets ...................................................................................... 23 3.1.2 Pelindo Port Data ................................................................................................. 24 3.1.3 Data from Other Recent Studies of Indonesian Ports ............................................ 24 3.2 Indonesian Port Traffic 1999-2009 ................................................................................. 24 3.2.1 Indonesian Port Traffic in 2009 ............................................................................. 27 Chapter 4. Forecast of Indonesian Port Traffic ..................................................................... 39 4.1 Approach....................................................................................................................... 39 4.2 Containers ..................................................................................................................... 39 4.2.1 Forecast of International Container Flows ............................................................ 39 4.2.2 Forecast of Domestic Container Flows .................................................................. 42 4.3 Other Cargo Types and Commodity Groups ................................................................... 47 4.3.1 General Cargo ...................................................................................................... 47

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4.3.2 Dry Bulk ............................................................................................................... 47 4.3.3 Liquid Bulk............................................................................................................ 52 4.4 Alternative Traffic Scenarios .......................................................................................... 54 4.5 Implications of Indonesian Port Traffic Forecast for 2009-2030...................................... 58 Chapter 5. Port Location and Development Plan ................................................................. 60 5.1 Approach and Methodology .......................................................................................... 60 5.2 Port Facilities and Capacity Assessment ......................................................................... 60 5.2.1 Container and General Cargo Port Facilities .......................................................... 61 5.3 Strategic Port Development Plan Identified by Government and Pelindos ..................... 73 5.4 National Port Development Plan.................................................................................... 80 5.4.1 Unit Investment Costs .......................................................................................... 80 5.4.2 Investment Requirements .................................................................................... 82 5.5 Port Sector Financing ..................................................................................................... 82 5.5.1. Conditions for Attracting Private Sector Investment in Ports ............................... 85 5.5.2. Indonesias Legal Framework for Private Sector Investment in Ports ................... 87 5.5.3. Framework of Government Support and Guarantee ............................................ 89 5.5.4. Possible Sources of Funding for Public Sector Investment .................................... 91 Chapter 6. Legal, Regulatory and Administrative Actions Needed ........................................ 93 6.1 Subsidiary Regulations under the Law on Shipping ........................................................ 93 6.2 Subsidiary Regulations Required under Government Regulation on Port Affairs ............ 93 6.3 Policy Actions ................................................................................................................ 93 6.4 Short-Term Initiatives for Facilitating Policy Implementation ......................................... 96

LIST OF TABLES Table 3-1 Indonesian Port Traffic by Trade Flow and Cargo Type, 1999 and 2009 ................ 25 Table 3-2 Indonesian Port Traffic by Trade Flow and Cargo Type and Principal Commodity, 2009 ................................................................................................................................... 28 Table 3-3 Indonesian Top 50 Ports for Container Traffic by Trade Flow, 2009 ..................... 31 Table 3-4 Indonesian Main Ports for Containers, Selected Years, 1990-2009 ....................... 33 Table 4-1 Regression Equation and Statistics for Forecast of Indonesian International Container Traffic ................................................................................................................. 40 Table 4-2 Projected GDP Growth for Selected Regions and Countries, 2011-2030 ............... 41 Table 4-3 Base Case Forecast of International Container ..................................................... 42 Table 4-4 Characteristics of Container Traffic at JICT, 2000-2009 ......................................... 42 Table 4-5 Regression Equation and Statistics for Forecast of Indonesian Domestic Container Traffic ................................................................................................................................. 43 Table 4-6 Base Case Forecast of Domestic Container Traffic at Indonesian Ports ................. 45 Table 4-7 Characteristics of Container Traffic at Pelindo II Ports excluding JICT, 2000-2009 . 45 Table 4-8 Base Case Forecast of Total Cargo Handled at Indonesian Ports, 2009-2030 ........ 48 Table 4-9 Indonesian Fertilizer Plants and Annual Capacity.................................................. 51 Table 4-10 GDP Growth Assumptions for Alternative Traffic Scenarios, 2010-2030 .............. 54 Table 4-11 Indonesian Container Traffic under Alternative Growth Scenario, 2009-2030 ..... 55 Table 4-12 High Growth Scenario Forecast of Total Cargo Handled at Indonesian Ports, 20092030.................................................................................................................................... 57

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Table 4-13 Low Growth Scenario Forecast of Total Cargo Handled at Indonesian Ports, 20092030.................................................................................................................................... 58 Table 5-1 Container and General Cargo Berth Facilities at Selected Indonesian Ports, 2011 62 Table 5-2 General Cargo and Container Traffic Forecast at Main Indonesian Container Ports, 2009-2030 (Base Scenario) .................................................................................................. 63 Table 5-3 Container Terminal Berth Capacity Indicators, 2009-2025 .................................... 66 Table 5-4 Assumed Indonesian Port Productivity Factors by Type of Facility, 2009-2030...... 67 Table 5-5 Capacity Analysis for Main Indonesian Container Ports, 2009 ............................... 68 Table 5-6 Capacity Analysis for Main Indonesian Container Ports, 2015 ............................... 70 Table 5-7 Capacity Analysis for Main Indonesian Container Ports, 2020 ............................... 71 Table 5-8 Capacity Analysis for Main Indonesian Container Ports, 2030 ............................... 72 Table 5-9 Range of Unit Cost Estimates for Container Terminal Development and Construction ...................................................................................................................... 80 Table 5-10 Unit Investment Cost for Indonesian Container Terminal Development ............. 81 Table 5-11 Port Sector Investment by Economic Corridor and Port Facility 2011-2030 and Total 2011-2030 ................................................................................................................. 83 Table 5-12 Indicative Funding Requirements by Private and Public Sector for Development of Port Facilities, 2011-2030 .................................................................................................... 85 Table 6-1 Regulatory Mandates for the Ministry in Shipping Law No. 17 of 2008 ................. 94 Table 6-2 Scope of Government Regulation No. 61 of 2009 ................................................. 94 Table 6-3 Actions for Policy Implementation ....................................................................... 95 Table 6-4 Near-term Initiatives for Facilitating Policy Implementation ................................. 96

LIST OF FIGURES Figure 1-1 NPMP within MP3EI Framework ........................................................................... 2 Figure 1-2 NPMP Frameworks ............................................................................................... 3 Figure 2-1 Guidelines for Anti-Competitive Pricing Behavior ................................................ 16 Figure 2-2 Criteria for Assessing Anti-Competitive Behavior ................................................ 18 Figure 3-1 Indonesian Port Traffic by Trade Flow and Cargo Type, 1999 and 2009 ............... 26 Figure 3-2 Indonesian Port Traffic by Trade Flow and Cargo Type, 2009 .............................. 27 Figure 3-3 Indonesian Top 50 Ports for Total Traffic by Trade Flow, 2009 ........................... 29 Figure 3-4 Indonesian Top 50 Ports for Total Traffic by Cargo Type, 2009 ............................ 30 Figure 3-5 Indonesian Main Ports for Containers, Selected Years, 1990-2009 ...................... 34 Figure 3-6 Major International Trade Flows for Indonesia Container Traffic 2009 ................ 35 Figure 3-7 Major Domestic Trade Flows for Indonesia Container Traffic 2009 ...................... 35 Figure 3-8 Major International Trade Flows for Indonesia General Cargo Traffic, 2009 ........ 36 Figure 3-9 Major Domestic Trade Flows for Indonesia Container Cargo Traffic, 2009 ........... 36 Figure 3-10 Major International Trade Flows for Indonesia Dry Bulk Cargo 2009 ................. 37 Figure 3-11 Major Domestic Trade Flows for Indonesia Dry Bulk Cargo 2009 ....................... 37 Figure 3-12 Major International Trade Flows for Indonesia Liquid Bulk Cargo 2009 ............ 38 Figure 3-13 Domestic Trade Flows for Indonesia Liquid Bulk Cargo 2009 ............................. 38 Figure 4-1 General Approach for Traffic Forecast................................................................. 39

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Figure 4-2 Indonesian Base Case Container Forecast for Domestic and International Trade, 2009-2030 .......................................................................................................................... 45 Figure 4-3 Indonesian Coal Production, Exports and Domestic Consumption, 1996-2010 .... 49 Figure 4-4 Indonesian Urea Plants and Annual Capacity, 2010 ............................................. 51 Figure 4-5 Indonesian Crude Oil Production and Consumption, 1999-2009 .......................... 52 Figure 4-6 Forecast of Indonesian Total Container Traffic under Alternative Growth Scenarios, 2015-2030 ......................................................................................................... 56 Figure 4-7 Forecast of Total Indonesian Port Traffic by Cargo Type Under Alternative Growth Scenarios, 2015-2030 ......................................................................................................... 56 Figure 5-1 Investment Requirement Methodology .............................................................. 61 Figure 5-2 Location and Forecasted Container Traffic at Main Indonesian Container Ports, 2009-2030 ........................................................................................................................... 64 Figure 5-3 Sumatra Economic Development Corridor: Port Planning Parameters and Strategies through 2030 ...................................................................................................... 74 Figure 5-4 Java Economic Development Corridor: Port Planning Parameters and Strategies through 2030 ...................................................................................................................... 75 Figure 5-5 Kalimantan Economic Development Corridor: Port Planning Parameters and Strategies through 2030 ...................................................................................................... 76 Figure 5-6 Bali and Nusa Tenggaraa Economic Development Corridor: Port Planning Parameters and Strategies through 2030 ............................................................................ 77 Figure 5-7 Sulawesi Economic Development Corridor: Port Planning Parameters and Strategies through 2030 ...................................................................................................... 78 Figure 5-8 Papua Kepulauan Maluku Economic Development Corridor: Port Planning Parameters and Strategies through 2030 ............................................................................ 79 Figure 5-9 Port Sector Investment by Economic Corridor and Period ................................... 84 Figure 5-10 Port Sector Investment by Economic Corridor and Type of Port Facility 20112030.................................................................................................................................... 84

LIST OF APPENDICES Appendix A-1 Port Hierarchy ............................................................................................... 99 Appendix B-1 Strategic Ports within Sumatra Economic Corridor ....................................... 131 Appendix B-2 Strategic Ports within Java Economic Corridor ............................................. 131 Appendix B-3 Strategic Ports within Kalimantan Economic Corridor ................................. 132 Appendix B-4 Strategic Ports within Sulawesi Economic Corridor ...................................... 132 Appendix B-5 Strategic Ports within Bali Nusa Tenggara Economic Corridor.................... 133 Appendix B-6 Strategic Ports within Papua Kepulauan Maluku Economic Corridor.......... 133 Appendix C-1 Port Physical Development Plan by Economic Corridor and Type of Port Facilities, 2011-2030 ......................................................................................................... 135 Appendix C-2 Port Sector Investment by Economic Corridor and Type of Facility, 2011-2030 ......................................................................................................................................... 143

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Chapter 1. Introduction
As a nation whose economic growth is heavily dependent on ports, the efficient functioning of Indonesias ports is a top priority. Shipping Law No. 17 of 2008 helps advance that priority by addressing critical issues of port efficiency, safety, security, and sustainability. The Law calls for port sector institutional reform, the advancement of competition, the development of a rationalized port development plan, the use of public-private partnerships for financing of port projects, the participation of local, regional, and national authorities in the port planning process, and preparation of a workforce to serve public and private sector needs. The multidimensional approach the Law addresses will help Indonesian exporters and importers do what they must to succeed while providing the necessary connectivity -economic and transport to enable prosperity to reach all Indonesian citizens. Indonesias port sector vision reflects the multidimensional role for the countrys ports: An efficient, competitive, and responsive port system that fully supports international domestic trade and promotes economic growth and regional development. Shipping Law No. 17 of 2008 mandates the development of a National Port Master Plan (NPMP). The Plan establishes the policy framework to facilitate achievement of the vision. It also sets forth the requirements for a rationalized approach to port development. The Plan, encompassed in this document, presents cargo forecasts, port development requirements in the coming years, investment costs, and financing constraints and strategies, with the final chapter laying out the actions needed to facilitate port modernization and its integration in both economic development and transport system frameworks. The underlying theme of the NPMP is integration on several levels across transport corridors, between investment and policy and public and private sectors, among levels of government, and in collaboration with economic development initiatives. They will provide a coherent foundation for long-term planning and prudent investment among the partners involved. While this obviously will include public and private investment in new and expanded infrastructure where the need is demonstrated, it will also be essential to achieve maximum efficiency and capacity out of existing footprints. That will require integrated measures addressing issues of policy and administration, and governance and operations, in addition to building infrastructure.

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Figure 1-1 NPMP within MP3EI Framework

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Figure 1-2 NPMP Frameworks

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Chapter 2. National Port Policy


2.1 Introduction
In very recent years Indonesia has made some very important decisions relating to the reform of its port sector. The country passed a new law, Shipping Law 17 of 2008, that calls for the transformation of its port system from one operated by state-owned monopoly corporations to a port authority system more characteristic of the landlord model with the inducement of competition for providing the range of services offered to port users. Port authorities are being established and future concession programs are intended to secure needed investment while expanding the number of rivals seeking to provide port services. This transformation underscores the importance of the Ministry of Transport and DGST in developing a policy framework designed to facilitate the Shipping Laws underlying objective for the development of a competitive and efficient port system. This chapter sets forth the policies which the government will adopt in order to achieve the Shipping Laws objectives. This follows the preparation of the Scoping Study Policies and Procedures Report, which identified some of the policy themes open to the government to implement. The process of developing policies involved consultations with government officials and other stakeholders, site visits, and a review of the Shipping Law and complementary regulations. The process also considered other economic development initiatives the government is implementing that may be facilitated in part by the existence of an efficient port system. The development of a Port Policy for Indonesia was thus conducted in three stages: diagnostic, consultative, and policy formulation. The diagnostic stage consisted of a review of existing reports and data, technical site visits to pertinent maritime infrastructure, and extensive interviews with both government and private sector stakeholders. The consultative stage consisted of conducting several meetings and a workshop with industry stakeholders on the basis of the National Port Master Plan and the noted Policy and Procedures Report findings. The workshop stimulated discussion among a range of stakeholder groups and resulted in a number of comments. Having carefully considered the comments, revisions were made to the Policy and Procedures Report, which set forth policy implications from the Shipping Law and National Port Master Plan from which port policy would be formulated. In the sections that follow, we first present a background to Indonesias port sector policy environment, including institutional arrangements and challenges, and recent developments. We then describe the legal context for Indonesian port policy. This is followed with the presentation of the port sector vision, mission and strategic objectives and a discussion of the critical issues that influence the development of policy. The chapter then presents the policies the government will implement. Initially, four sets of supporting regulations are proposed to be issued to support the implementation of policy. These relate to: (a) port tariff regulation (b) complaint procedure and dispute resolution; (c) safe, secure and environmentally-responsible port operations, and (d) port planning.

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2.2 Background
As a nation composed of many islands, Indonesia is perhaps the worlds most port-reliant nation. Historically, the main focus of government has been on the administration of its port system. In response to governments call for port sector restructuring, government focus is now extended to the associated institutional, regulatory and technical issues that need to be addressed in building a modern port sector. In 1992, Indonesia had installed a system of state-owned enterprises (Pelindos) charged with the development, administration, and operation of Indonesias ports. The institutional reforms introduced by Shipping Law 17 established a system of landlord port authorities (and related port management units) and also changed the status of the Pelindos to port operators (port business entities). The port authorities are charged with the development and regulation of Indonesias ports, but as entities holding civil service status, do not reflect the wide span of autonomy normally accorded landlord port authorities. And while the Shipping Law did not create a new entity overseeing Indonesias port administration, the transformation to the landlord model also indicates a change in the role of the Ministry of Transport, which is charged in part with issuing regulations related to the implementation of the Shipping Law. Indonesias new port institutional framework implies a set of new or revised responsibilities for port sector governance. There is a need to ensure clarity about each institutions roles and objectives. They must work together effectively in building the port sector. As Indonesias port interests are now housed in separate entities, the Ministry of Transports primary role needs to be clearly defined as including acting as policymaker for the port sector, monitoring the performance of the port system and its individual components, and overseeing the governments interests in ports. Shipping Law 17 and its complementary regulations entrust the Ministry of Transport with responsibility for: Planning the development of the countrys commercial and non-commercial seaports; Securing and facilitating investment in port development and improvements; Promulgating regulations and guidelines for port authorities and PMUs designed to assure effective port sector governance, coordinated and integrated planning, and efficient operation; Formulating an education and training model to assure effective performance of port-related functions and a ready supply of highly capable port sector human resources; Approving port authority and PMU tariffs and developing port tariff structures for port business entities; Issuing permits for port development, construction, operation; and Approving port authority, PMU, and private sector plans for the development and upgrading of ports.

And while the Ministry of Transports role can be viewed as one of instituting port policy and overseeing the port sector, the responsibility for planning and direct supervision of the port sector is housed within port authorities and port management units. To this extent, port authorities and PMUs are charged with: Assuring the smooth flow of goods in ports and establishing standards for operational performance; Provide land and water areas for ports; 5

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Contracting port business entities to undertake port business activities; Prepare tariffs for services rendered by port authorities and PMUs and submit them for approval by the Ministry of Transport; Issue regulations governing the use of ports, harbors, and pilotage services; Prepare local master plans for approval by the Ministry of Transport; Assure environmental protection in the port areas; and Facilitate dissemination of port-related information.

In 2009, nearly 1 billion tons of cargo were handled in Indonesias ports, with about 543 million tons (56 percent) and 435 million tons handled in foreign and domestic volumes, respectively. While cargo volumes are substantial, competitiveness is lower than expectations. Pelindo subsidiaries arguably compete on the basis of operational performance, but competition on the basis of pricing is virtually nonexistent given the majority ownership position of the Pelindos in port business entities. This has been due largely to barriers to market entry imposed on non-Pelindo affiliated port business entities and antitrust protections accorded to state-owned enterprises. Re the former, special terminal operators are highly restricted from engaging in cargo handling services for third party cargoes and, even if given the required permits to do so, permits are granted for only five years. Though options for renewal are available, it is difficult to imagine a situation where an investor can receive financing where there is a risk of non-renewal and the loans payback period far exceeds the initial permit period. Re the latter, the KPPU legislation exempts Pelindos, as state-owned enterprises, from antitrust regulation, hence allowing them to directly engage what would otherwise be prohibited behavior. Additionally, Indonesia currently requires government entities to hold 51% equity in joint venture arrangements involving foreign corporations, discouraging foreign investment in Indonesias port sector. Finally, Pelindos are accorded land stewardship responsibility and hence control of landside port development within their territories. Indonesia can expect continued robust economic growth in the coming years, generally averaging about 6.4 percent through 2030. This growth places new demands on operational efficiency and capacity; failing to meet these demands may constrain expected economic growth. Global shipping patterns are in a state of flux as ship sizes increase, a risk of container carrier overcapacity emerges, and rate instability ensues; shipping lines in turn will seek to minimize port calls in an effort to rationalize their businesses. Efficient modern port facilities capable of handling the latest generation of container ships and large bulk carriers efficiently are seen as the key to reducing transport costs and hence attracting overseas investment and diversifying Indonesias manufacturing and trading base. At the same time, Indonesia needs to replicate global best practices and develop a port institutional framework that is commercially efficient. Such a framework includes an element of planning and control to ensure that development and operations are carried out to the highest international standards and hence contribute towards, rather than constrain, the achievement of Indonesias goal of accelerated economic development. The port reform process is not yet complete. There are gaps and clarifications needed in the Shipping Law and more legislation and regulations may be needed to assure effective policy implementation. Additionally, the emergence of a competitive port system is dependent on finding the right people. The newly created port entities will need the ability to recruit and retain a workforce of the highest caliber to undertake the tasks with which they are entrusted. Port authorities will be unable to wrest highly qualified people from other sectors unless compensation rates can exceed the compensation levels bound by current civil service rules. Retaining employees also means that effective management of human 6

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resources, including training and development, will be necessary to support the functioning of DGST and the port authorities. Access to qualified labor is also a concern for the port business entities. As cargo volumes increase in the coming years, additional physical capacity will be needed, and there will be increasing demand for workers to manage and operate these new facilities. Indonesias port sector will need a ready supply of qualified workers in order maintain and operate facilities at acceptable global standards.

2.3 Indonesias Need for Integrated Port Policy


The policies set forth below are intended in part to enhance multimodal and cross-sectoral integration. Ports can no longer be viewed in isolation of the rest of the transportation system and economic development strategy. Hence, policy implies an emphasis on rigorous analysis and long-term planning in partnerships among government agencies and between public and private sectors. The emergence of global supply chains as the preeminent business model is a key factor in global economic changes. Propelled by dramatic changes in information and transportation technologies, leading-edge production strategies now feature deeper integration of production, marketing, transportation, and distribution commonly referred to as integrative trade. These changes in how businesses operate have significant implications for transportation, as pressures mount for greater scale and efficiency in infrastructure systems that support major trade flows. As businesses increase their reliance on seamless, secure, and efficient multi-modal transport systems as keys to their success, transportation as a whole is being recognized as more crucial than ever to Indonesias competitiveness. Hence, the key for Indonesias future success will be an integrated approach to both policy and physical infrastructure relative to all surface transport modes. This approach places transportation infrastructure at its core, but goes further to encompass other interconnected issues of public policy, regulation, and operational practices that directly impact how well transport infrastructure works and how well Indonesia takes advantage of it. As for investment, the crucial role for private investment is highlighted, along with a commitment to policies that foster a positive climate for it to increase while safeguarding the public interest. The scope of a future maritime policy in Indonesia is potentially wide-ranging. It is inevitable that the various policies, once approved, will be phased in and may be changed during the course of time in view of strategic and other events. This suggests that policies will also have to be prioritized and maybe revised. Hence, the Ministry of Transport will rely continuously on input from stakeholders in identifying the most important policy areas and any needed modifications. Policies are required to ensure that Indonesias port sector develops into a world-class competitive industry and that the ports are operated in line with international safety and environmental standards. The objective should be to ensure that the port sector promotes competitiveness, facilitates trade, and seamlessly integrates with the multimodal transport logistics system. To achieve this, a flexible legal and regulatory framework is required that ensures orderly, safe, secure, accessible, and competitive services, high standards of corporate governance, and effective economic and technical regulation. It requires a clear policy built on consensus and a commitment from policymakers, managers, regulators and stakeholders.

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2.4 Legal Context


Shipping Law 17 of 2008 is the parent law governing Indonesias ports sector. The Law covers both port and shipping matters. Port issues are mainly dealt with in Chapter VII (Arts 67 115), Chapter XI and in a few scattered provisions elsewhere in the Law. The main topics covered in Chapter VII of the Law are: National Port System Port Master Planning Institutional Frameworks / Participants in the Port System Port Construction and Operation Special Terminals and Own Interest Terminals Tariffs Designation of ports open for foreign trade Role of regional government

Also relevant is Chapter XI, which establishes the office of the Harbour Master and defines its powers and functions. The Law is supplemented by various Government and Ministerial regulations issued to give effect to specific provisions. The principal regulations governing port institutions, their roles, functions and duties include: Government Regulation No 61/2009 regarding port affairs; MoT Ministerial Regulation No KM 62/2010 on the organization and working procedures of Port Management Units and its amendment (PM 44/2011); MoT Ministerial Regulation No KM 63/2010 on the organization and working procedures of Port Authorities and its amendment (PM 45/2011); MoT Ministerial Regulation No KM 64/2010 on the organization and working procedures of the Harbour Masters Office; and its amendment (PM 46/2011); MoT Ministerial Regulation No KM 65/2010 on the organization and working procedures of the Batam Port Office and its amendment (PM 47/2011).

2.5 Port Sector Vision and Goals


Chapter 1 presented the vision for Indonesias port sector. The governments goals for achieving this vision are set out below. Secure Private Investment. Indonesias port sector will require substantial expansion to accommodate higher demand as well as to support economic development initiatives. The scale of investment is such that the public sector cannot cover the cost alone. While private sector participation is key to port development and operations success, government currently has regulations in place that have the effect of discouraging private sector investment. Restrictions to operational scope by special and own-interest terminals, related restrictions on length of permits, and mandatory foreign equity ownership guidelines in terminal infrastructure limit foreign investment and the ability of the private sector to engage in third-party cargo handling. Institute competition. Indonesias port sector is characterized by market dominance. As a result, prices are not determined by market conditions, translating to higher 8

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costs to port customers, and in the end Indonesias producers and consumers, than what would otherwise exist under fully competitive conditions. Market entry by competitors is constrained by certain provisions in the Shipping Law that should be amended. A light-handed regulatory framework is needed to guard against abuses of market power until such time as it is feasible to introduce more competition, and allow market forces to drive the search for greater efficiencies and lower costs after competition is introduced. The principle to be applied is competition where possible, regulation when necessary. Enhance the landlord model of port administration in Indonesia. Indonesias port landlord model as currently configured does not reflect international best practice, particularly in regards to the autonomy given landlord ports of other countries. Missing from the existing model is the port authoritys ability to make independent decisions relative to organizational structuring, marketing, pricing, budgeting, financing, procurement, setting compensation levels, and hiring/termination. This has the effect of slowing responsiveness to changing market conditions and constraining inter-port competition that could emerge in future years as hinterland accesses to market catchment areas are improved. Integrate planning. The success of Indonesias economic development initiatives depends to a great degree on the port sectors ability to facilitate implementation of these initiatives while contributing to their success. This is particularly true of the MP3EI, where ports will serve some of the economic activity located along the economic corridors. Port planning must respond to the growing requirements of economic activity and integrate these developments in the development of their master plans. Port development must also be coordinated with national transportation planning and planning decisions cannot be made in isolation of the communities where ports operate; port plans must therefore be in conformity with local land use plans. Create an enabling, flexible, legal and regulatory framework. Indonesia has already embarked on extensive legal reform with the introduction of the Shipping Law and its complementary regulations. However, further legislation and/or regulations are likely to be required to improve integrated and coordinated planning, provide an efficient procedure for regulating tariffs, and allow for light-handed regulation in the event of market failure. Ensure safe and secure port operations. The port sector has to have a good safety record and secure its assets and human resources. In the future this will require more capacity to ensure that safety and security regulation adheres to world class standards and international protocols to which Indonesia is a signatory. Technical capacity must be created to meet these challenges and to cooperate with national authorities in building an efficient safety and security management regime that applies to Indonesias ports. Expand protection of the environment. Future port expansion requirements will result in the increased use of coastal waters and new developments along the coastline increase the threat to the marine environment. The port authorities and port management units must be diligent in implementing systems to mitigate such threats, and effective oversight mechanisms must be established by the Ministry of

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Transport to achieve this in cooperation with other relevant agencies in Indonesia. Systems for implementation include effective emergency response programs. Develop human resources. The port sector should provide a safe and rewarding work environment with opportunities for career progression and personal development. To become an employer of choice in a more competitive labor market, the sector needs to provide attractive employment conditions, challenging and rewarding work, an appropriate worklife balance, and greater opportunities for training and upgrading the skills of the workforce. The ultimate goal is high levels of efficiency within a work environment that balances the interests of workers, employers, and society as a whole. But assuring quality workers begins with preparation well before they are ready to embark on their careers both vocational institutes and universities must play a role in preparing the port sector workforce. For workers already employed for cargo and vessel handling, training programs must focus on measures for improving productivity while Indonesia must strive to meet global standards for port labor practices. Further, women do not figure prominently in the port sector workforce -- Indonesia must focus on strategies designed to mainstream women in this important sector.

2.6 Port Policy Formulation, Implementation and Review 2.6.1 Critical Issues
Indonesias port governance system is new as is the role of the Ministry of Transport in this new landlord form of administration. At the same time, there is a lack of a policy framework setting out governments goals for the sector, how these goals are to be achieved and who will be responsible for achieving them. It is traditionally the role of line function government departments, such as the Ministry of Transport and DGST, to undertake policy development and monitor its implementation. This must occur on a consultative basis with the involvement of all stakeholders. The process adopted in the development of the National Port Master Plan already establishes a suitable precedent for stakeholder involvement. Policy is never static and must continuously adapt to changing circumstances. Hence, the Ministry of Transport must also be tasked with reviewing policy on a regular basis to verify that it still supports the Governments overall economic and social goals. Legislation is a tool of policy. As Indonesias port policy takes shape, legislation must be revised to ensure that it fully enables policy objectives to be achieved. The Ministry of Transports work in policy development should be concerned with: Contributing to the debate on the long-term structure of the port industry by advising on ways of increasing competition. Although the Pelindos currently have superior technical knowledge in this area, it has a major conflict of interest as any increase in competition will automatically weaken its own position. A healthy debate on the issue will enable the government to make a better-informed judgement on the amount and form of competition which is appropriate and time at which it is introduced. The Ministry of Transports proposed role in promoting competition is elaborated further below.

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Ensuring that Indonesias ports are compliant with the countrys policies. The Ministry of Transport will also be expected to represent port sector interests when new policies are being developed at the national level, while DGST must work within the Ministry to assure that prospective Ministry of Transport modal policy incorporates deliberations about the impact modal policy may have on the port sector. Integrating the port system more effectively with other modes of transport, for example by setting regulations on vehicle weights and drivers hours, or improving highway systems, which do not have the effect of impeding the efficient working of the ports.

2.6.2 Policy
The Ministry of Transport will develop capacity to oversee the effective implementation of its proposed policy. It will report regularly to government and stakeholders on progress in achieving policy goals. The Minister of Transport, working through DGST, will from time to time issue guidelines to government institutions and commercial agencies with regard to the implementation of port policy. As appropriate such policy guidelines will be preceded by consultation with key stakeholders. Business strategies of all stakeholders, including port authorities, PMUs, and port business entities, must be aligned to support governments port policy objectives. To this end the Ministry of Transport through DGST will enter into a dialogue with stakeholders with regard to those aspects of its plans and budgets that raise issues of port policy. The Ministry of Transport will pursue a structured and open dialogue with stakeholders, via the establishment of stakeholders and/or port user committees, aimed at promoting a broad consensus and seeking to resolve differences in emphasis or approach through a consultative process. Policy will be regularly reviewed to ensure that it is still responsive to achieving the goals identified for the port sector. A policy review will be undertaken on a three yearly basis and will be integrated with the Ministry of Transports strategic planning process. The review process will allow for stakeholder consultation and the reviewed policy will thereafter be published for public notice. Legislation will be reviewed to ensure that it provides an enabling framework for the Governments policy goals for the sector.

2.7 Integrated Planning, Facilitation and Performance Monitoring 2.7.1 Critical Issues Integrated Planning
The Shipping Law has assured a coordinated port planning process. The Ministry of Transport through DGST is responsible for preparing and updating a national port master plan (NPMP) every five years with interim updates made as appropriate. Port authorities and PMUs are, in turn, responsible for preparing local port master plans in conformity with the NPMP; but the local master plans must also be aired with local governments to assure they adhere to local land use planning provisions. There is, however, no provision in the Law and its complementary regulations to assure plans are part of an integrated national 11

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transport planning process and also to assure port master plans facilitate overall economic development objectives. It is therefore crucial that the ports are effectively integrated with other transport modes and economic development initiatives. Planning to achieve such integration must occur at various levels and among agencies within the national government and the port authorities and Pelindos. The challenge is to devise a framework that promotes complementary planning and allocates responsibility to each organization on the basis of its mandate and distinct responsibilities. Typically, it is a core function of transport departments to undertake overall planning for the transport sector that ensures effective integration of transport modes. The desired outcome is a seamless integration of modes that function as a single logistics chain. Experience in many countries demonstrates that where such integrated planning is absent, transport operations are constrained resulting in inefficiencies and higher costs. A good example is inadequate road or rail connections to modal interchange points such as ports. An important role of the DGST is to develop a strategic vision of future port requirements, to coordinate port planning with developments in other sectors of the economy, and to ensure that the growing volumes of port traffic can be comfortably accommodated on Indonesias road, rail, and interisland transport systems. The primary role of port authorities and PMUs is to undertake the physical planning and oversee construction and operation of port infrastructure. However, DGST also has an important supporting role in coordinating port authority plans with those of other government organizations and reviewing port authority plans from a strategic and operational perspective. Port development plans need to be integrated into wider strategies for economic development, land use, and environmental protection. It is important to map out clearly how this strategic planning process will work, and define the central role of the Ministry of transport and DGST in coordinating port development plans with those of other entities and sectors. DGST and port authorities may also be required to facilitate consultation on the plans to ensure that the views of all stakeholders are properly taken into account. The Ministrys port planning responsibility should include the role of overall sector facilitation. This entails facilitating between the port sector and stakeholders in both government and the private sector to ensure that the port system can function at optimal efficiency levels. Worldwide, studies have shown that over 75% of the constraints to port system efficiency result from the activities of government agencies such as customs, poor productivity due to the inefficient use of information technology and logistics practices that are below par. There is potentially an extensive role to play by the Ministry in securing greater cooperation between agencies and stakeholders involved in the transport field to ensure higher productivity and overall lower port and transport costs. Finally, the Ministrys overall planning role implies that it must also be in the position to evaluate the efficiency of the transport system and to assess whether policies and plans are contributing towards higher port productivity and lower costs. This entails developing the required performance monitoring and data processing capacity.

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Port Hierarchy
Indonesia has developed a hierarchical framework to reflect the roles ports play in the countrys port system, how they may be integrated in the countrys economic and port planning processes, how they may be institutionally restructured as national, regional, and local assets, and the extent to which they may be financially supported by the government of Indonesia. As indicated in the Shipping Law, the port hierarchy consists of 1) main, 2) collector, and 3) feeder ports. Main ports serve domestic and foreign trade, while collector and feeder ports are limited to domestic trade only; main ports are deemed to handle large cargo volumes, while collector ports and feeder ports handle medium and limited volumes, respectively. Main ports are to be administered by port authorities; collector ports may be administered by port authorities or PMUs; feeder ports are to be administered by PMUs. Collector ports and feeder ports may also be administered by regional or local governments. How collector and feeder ports are administered will be determined in close consultation with regional and local governments based on their expressed interest to the Ministry in administering these ports or upon the Ministrys interest to transfer these ports to local and regional control. The current classification of Indonesian ports is presented in Appendix A.

2.7.2 Policy
The Ministry of Transport is responsible for coordinating planning of the entire transport system in Indonesia based on sector plans prepared by modal divisions, other modal agencies, and port authorities. To this end, port authorities will cooperate with DGST to ensure that DGST is regularly informed of ongoing planning efforts. The Ministry of Transport will issue planning regulations consisting of requisite planning processes and guidelines to provide a basis for the Ministrys monitoring of this activity. The Ministry will also require Pelindos and other port business entities to provide port authorities with all relevant detail needed for assessing impacts of their plans on the master plan, and port authorities to provide similar details to the Ministry to coordinate overall transport system planning. The Ministry will review the status of ports in future years to determine if their hierarchical status should change and what implications there are in terms of revising the prevailing and future National Port Master Plans and in the plans submitted by port authorities and PMUs. The Ministry of Transport will review port authority development plans from an integrated transport planning perspective and establish a review procedure in the planning regulations. The DGST will promote a continuous dialogue with the port authorities to ensure that DGST is able to effectively execute its regulatory and planning responsibilities. The Ministry of Transport through DGST will develop capacity to supplement its planning function by undertaking overall sector facilitation. To this end, the Ministry will engage with other government agencies such as customs, and private sector role-players such as freight forwarders and logistics service providers, to continuously review sector performance and adopt practices that eliminate constraints to the optimal functioning of the transport chain.

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The DGST will develop a system of indicators for both planning and monitoring performance purposes and publish regular findings of key port performance indicators.

2.8 Tariff Regulation 2.8.1 Critical Issues


Port authorities and PMUs are required to prepare tariffs for services that they render and submit tariffs for review and stipulation by the Ministry of Transport. It is important that the process of tariff review and approval is well understood by all the parties. The Law suggests a light-handed regulation approach as tariffs are not imposed; instead, port authorities are subjected to tariff approval, and eventually, as port authorities and PMUs reflect the global standard approach to landlord administrations, they will make their own pricing decisionsbased on a combination of commercial and cost recovery principles. In this instance, the Ministry of Transports role will be limited to ensuring that the tariff complies with its general tariff guidelines and does not discriminate unfairly or constrain competition. Steps will be taken to ensure short-medium term stability in the published tariff and major adjustments to the tariff should be relatively rare, unless there are large unforeseen changes in costs. At the same time port authorities will need some flexibility to negotiate tariffs if these are needed to bring in new business. The role of the Ministry of Transport is to ensure that these do not seriously disadvantage other customers, and do not undermine the overall financial stability of the port authority by leading to large losses. International best practice generally advocates non-discriminatory treatment of customerssimilar tariffs for similar customers receiving a similar servicebut this is not always easy to achieve, as most customers can find something that differentiates them from others and can be used to justify a lower tariff. While the Shipping Law does not compel port business entities to submit tariffs for approval, the risk of oligopolistic behavior by port business entities requires that port business entities submit tariffs to enable the Ministry of Transport to monitor for anticompetitive pricing practices. The tariff setting process should incorporate a formal tariff filing system for port authorities and port business entities covering both the published tariffs and the tariffs negotiated with individual port users on the basis of one-off service agreements. This will enable the Ministry of Transport to monitor tariffs to ensure that they remain internationally competitive, are not the result of collusive behavior, cover costs, and do not unfairly discriminate against individual port users. The tariff filing system is expected to operate broadly as follows.

2.8.2 Tariffs
Tariffs are the standard charges by port authorities that apply to all port users unless otherwise specified. It is anticipated that they will be changed infrequently in order to give users a high degree of certainty about the level of port charges, and that the changes will be preceded by a period of consultation during which users will be able to prepare for the effects of any proposed changes. Changes to the port tariff will be proposed by port authorities and should be filed with the Ministry of Transport at least 60 working days before their intended date of introduction. If the port authorities receive no comments from the Ministry by 15 working days before their intended date of introduction they are deemed to have been approved. 14

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Port authorities will be expected to provide some justification for the proposed tariff changes based on their financial impact on the port authority, requirements to recover investment and operating costs of relevant services, competitiveness concerns, and the outcome of any consultations port authorities have held with port stakeholders. The Ministry of Transport will be entitled to conduct its own consultations with stakeholders if it believes this is necessary. The tariffs for all port infrastructure and services will be published for public notice, for example, on the Ministrys and port authority websites. While the Shipping Law does not require Ministry approval of port business entity tariffs, this does not mean they would not be subjected to review and monitoring for anticompetitive behavior. In terms of terminal operations, port business entities control all activities between and including the berth and gate. Port business entities in dominant positions have the ability to leverage higher prices without the threat of losing business, thereby placing an undue cost burden on port users that is detrimental to trade competitiveness. There is also a further cost to society as prices not constrained by competition or regulation increases the costs to consumers and domestic production. Today, state-owned enterprises are not subjected to the provisions of Indonesias competition law, while other port business entities are. The KPPU antitrust case precedents have shown that it has regulatory jurisdiction over state-owned enterprise subsidiaries, but not over state-owned enterprises themselves. This has the effect of encouraging stateowned enterprises to avoid creating subsidiary operating companies and directly managing and operating terminals themselves or, alternatively, to set standard prices for all terminals under their control. State-owned enterprises are also not prohibited from engaging in anticompetitive practices, such as predatory pricing and discriminatory behavior as well as cross-subsidization, in their efforts to eliminate competition. State-owned enterprises are also not prohibited from engaging in anticompetitive practices, such as predatory pricing and discriminatory behavior as well as cross-subsidization, in their efforts to eliminate competition. Given the changing role of the Pelindos brought about by the new Shipping Law, it is important to seek clarification from KPPU regarding the question of antitrust exemption. A continued exemption in itself will serve as a constraint to market entry of potential rivals and ultimately discourage needed port infrastructure investment. This in itself will serve as a constraint to market entry of potential rivals and ultimately discourage needed port infrastructure investment. Finally, we must bear in mind that state-owned enterprises have profit maximization as their objective, with the Ministry of State-Owned Enterprises establishing annual financial performance targets.

2.8.3 Service Agreements


Service agreements with individual customers are negotiated quite frequently and may be for either a fixed or indeterminate period of time, or linked to the shipment of specific consignments. Because they usually involve price guarantees, they serve as de facto tariffs. Service agreements should be monitored to assure non-discriminatory behavior. They should be filed with the Ministry of Transport under confidentiality rules established by the Ministry no more than 10 working days after they have been agreed with port users, together with supporting information which describes briefly the nature of the transaction and the reasons for entering into a service agreement rather than applying the tariff. If no comments are received from the Ministry within 10 working days of the date of filing, they are deemed to have been approved. Because they are highly confidential, service agreements with individual customers will not be published. Regulations should provide for

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the confidentiality of agreements to be protected, unless disclosure is authorized by port business entities.

2.8.4 Rights of Explanation and Objection


The Ministry of Transport will be entitled to request an explanation from port authorities and port business entities for any proposed tariff changes (in the tariff or service agreements) which it wishes to query. At the request of the Ministry of Transport, changes to tariffs can be put on hold while this explanation is being given. The Ministry of Transport should have the right to object to an existing or proposed tariff only on the grounds that it is anti-competitive or non-compliant with government policy. A tariff or service agreement can be considered to be anti-competitive when it fails to comply with Ministry of Transport guidelines (see Figure 2-1). These guidelines will also provide grounds for complaints about anti-competitive behavior which port users may refer to the Ministry of Transport. Port users making complaints about anti-competitive behavior will be expected to produce factual evidence to support their complaints before the issue is taken any further. The Ministry of Transports right to object to a tariff item should only be exercised if the matter cannot be resolved through discussions with the port authorities and port business entities. In this event, the following procedures will apply. The Ministry of Transport should formally notify port authorities and port business entities of its objection, together with the reasons for it. Port authorities and port business entities may respond to the objection with a statement of reasons which the Ministry of Transport is required to consider after which it must inform port authorities/port business entities whether or not it withdraws its objection.

Figure 2-1 Guidelines for Anti-Competitive Pricing Behavior


Anti-competitive pricing behavior is normally defined in terms of the following criteria: Excessive tariffs. Average charges are high in relation to the cost of providing the service or for use of similar infrastructure or services elsewhere and the premium cannot be justified by any unique feature in the cost structure of the port or terminal. Predatory pricing. Tariffs for particular infrastructure or services are below their appropriate marginal cost (long-term or short-term, according to the nature of the transaction). Price discrimination. Similar customers are charged different tariffs for the provision of similar services. However, this does not preclude volume discounts or the negotiation of individual service agreements for which there is economic justification.

In situations where the Minister of Transport determines there may be anticompetitive behavior, or if a complaint received may be valid, then the Ministry of Transport may refer its own determination or complaint to Indonesias competition commission (KPPU), which in turn is obliged to take up the matter. To be able to do this, it is important that an interagency Memorandum of Understanding be prepared that defines the process and roles of either agency in considering possible antitrust behavior. Additionally, in furtherance of promoting competition, already a part of Indonesia national policy, the Ministry of Transport must seek to incorporate a port sector state-owned enterprise exception to the exemption accorded to all state-owned enterprises in the antitrust legislation. 16

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Circumstances will change over time, and the regulations should be flexible enough for tariff review procedures to be modified by mutual agreement and formalized through a ministerial decision without requiring legislative amendment.

2.8.5 Policy
It is the duty of the Ministry of Transport to review the tariffs. The basic approach that the Ministry of Transport will adopt is that of light-handed regulation. On the part of port authority or PMU tariffs, it will object to proposed tariffs only to the extent that they are not reasonable relative to the cost of providing the service or infrastructure. In the case of port business entities, the Ministry will refer the proposed tariff to the Competition Commission if in the Ministrys judgment it is not reasonable relative to the service or infrastructure cost or is anti-competitive or discriminatory. The Ministry of Transports power of review is without prejudice to the freedom of port business entities to negotiate service agreements with individual customers. The Ministry of Transport will issue regulations to clarify the procedure to be followed with tariff monitoring and review to ensure that a light-handed approach is followed which does not impose any undue burden on port authorities, port management units, or port business entities. The regulations will also specify the grounds for regarding the tariff or a service agreement as anti-competitive.

2.9 Promoting Port Sector Competition 2.9.1 Critical Issues


Competition is generally regarded as the best way of achieving economic development because of the incentives it provides for all participants to satisfy customer needs in the most efficient way possible. Government intervention is only needed when competition does not produce the desired outcome. The basic policy approach that many governments adopt and which is also the approach for Indonesia is competition where possible, regulation when necessary. This approach allows government to adopt a hands-off stance intervening only for one of three reasons: anticompetitive behavior, the existence of externalities (such as traffic congestion or pollution which are not automatically taken into account in commercial decision-making), and a failure to provide customers with sufficient information. Indonesias port sector is not yet highly competitive, meaning that shippers are left with very few options relative to their hinterland markets. The use of more distant ports imposes significant transaction costs on port users, thus reducing their effective choice. Currently, terminals serving specific hinterlands are now managed by the same state-owned enterprise through subsidiaries. This enables the state-owned enterprises to take decisions that may be favorable to their overall business, but which could be to Indonesias disadvantage. As sole providers of port infrastructure and services, the potential for abuse of monopoly power exists even if it is never exercised. These factors create a strong case for the Ministry of Transport to have a role in advising the government on ways in which competition might be increased, and to have a role in controlling anti-competitive behavior should it arise. The layout and scale of cargo volumes in Indonesias largest ports suggest that competition could be introduced to effect inter-terminal competition. Hence, as part of its master plan review process, the Ministry of Transport will consider strategies for introducing 17

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competition. Additionally, in order to avoid monopoly or oligopoly effects of vertical integration of port services, and the opportunities for cross subsidization, the Ministry may prohibit port business entities providing certain services from also providing other services. For example, terminal operators may be prohibited from also offering tug assist services. This policy will prevent operators from bundling port services and thus expand the opportunities for inducing competition. The Ministry of Transport will also endeavor to simplify licensing procedures for services currently requiring licenses while assuring adequate insurance against liability. This policy is intended to ease market entry requirements while simultaneously assuring only qualified license holders can provide the service. This will serve to establish a market for certain services which will encourage local entrepreneurship and the development of small and medium sized enterprises. Where the market fails to ensure competition, Indonesia must have a framework in place that can anticipate the potential for abuse of monopoly power in the future as commercial relationships may evolve in unforeseen ways. Anti-competitive behaviour can assume a variety of forms (see Figure 2-2).

2.9.2 Complaints Procedure


Due to the imbalance in market power between the port operator, service providers and port users, it is important that an effective channel exists for reporting and resolving complaints and disputes relative to anticompetitive behavior. Such complaints refer only to issues related to anticompetitive behavior. For complaints not related to anticompetitive Figure 2-2 Criteria for Assessing Anti-Competitive Behavior
Entry barriers (Access discrimination). Potential port users are deliberately excluded from access to particular infrastructure or services, at a time when the port business entity is physically and legally capable of supplying them, and would not lose money by doing so. This includes failure to invest when the port is approaching full capacity. Service bundling. Port users are required to purchase services they do not want, or could buy from a competitor, in order to obtain access to infrastructure or services for which the supply is more restricted. Exclusive dealing. Port users and the port operators own suppliers - are not allowed to deal with the port operators competitors, and are threatened with loss of their existing business if they do so. Performance standards. The port operator fails to provide an acceptable quality of service, and/or consistently fails to meet its conditions of contract with port users or government.

behavior, port authorities are better positioned to receive, respond, and seek remedies to complaints relative to non-competitive issues. Best practice encourages the parties to negotiate a commercially-acceptable solution. The regulators first response should always be to direct the parties to seek a negotiated outcome, rather than have a solution imposed from above by the regulator. Only if theparties are unable to achieve a settlement between them should the regulator become involved. However, even with the involvement of the regulator, the initial approach will be 18

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to seek to reach an amicable settlement between the parties through independent nonbinding mediation. Only once both direct negotiations and mediation have failed will the Minister of Transport refer the matter to the KPPU. The following general guidelines should apply to complaint procedures. First, all incoming complaints should be formally recorded and acknowledged. Complaints should be made in a prescribed format and be accompanied by supporting documentation. After a review of the complaint a decision should be made on whether the complaint falls within the Ministry of Transports jurisdiction. Complaints about day-to-day operational matters, for example, should be automatically referred back to the port authorities. Frivolous or vexatious complaints should also not be entertained. The organization against which the complaint has been made should then be given the right to respond, usually within a pre-determined time period which reflects the nature of the complaint. At this point, the Ministry of Transport is entitled to ask either party to the dispute for further information if this seems appropriate. After reviewing this first round of information, the Minister of Transport may ask the parties involved to attempt to resolve the dispute themselves and it will generally do so if it believes a commercially-negotiated outcome can be achieved. In fact, before lodging a complaint, complainants should make every effort to solve a dispute through negotiations as they are likely to be required to present evidence to the Ministry that they attempted to resolve matters in good faith. Where the Ministry directs the parties to attempt to resolve the dispute themselves, it should be entitled if it wishes to offer informal suggestions on how to proceed. A limited period of time should be allowed for the parties to resolve the dispute, at the end of which the status of the complaint resolved, unresolved, or partially/conditionally resolved - should be recorded by the Ministry.

2.9.3 Policy
The Ministry of Transport in partnership with the KPPU has the overall responsibility to promote competition within the port sector. It is cognizant of the fact that the ports sector is highly concentrated and characterized by monopolies. Hence, it will remain vigilant to prevent anti competitive behavior and abuses of monopoly power. The Ministry of Transport will promote competition by executing its planning functions and participating in the debate by conducting its own independent analysis - of ways in which competition can be increased, especially with regard to the planned new port developments or expansion of existing ports. The Ministry of Transport will develop the capacity to respond to alleged anticompetitive behavior by introducing a complaints and dispute resolution procedure in regulations. Where applicable, the approach to be followed will be similar to the procedure used in resolving disputes with regard to port tariffs.

2.10 Enhance Labor Competitiveness 2.10.1 Critical Issues


While all workers should be assured of a safe and rewarding work environment, there is an expectation that the work force will also be competitive relative to global standards. Port authority and PMU employment systems must distinguish themselves in terms of employment conditions and work environments in order to effectively compete for highly 19

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qualified workers with other sectors. Port authorities and PMUs must offer a nurturing environment for entry level workers, both men and women, that translates to career advances facilitated by training and development and experience. At the same time, there has to be a concerted effort in collaboration with vocational and higher education institutions to promote the port sector as a desirable career option, for both men and women, and to assert a symbiotic relationship in continuing education opportunities for port sector workers. While capacity development is recognized as important to port performance, we must also recognize the importance of work practices to a ports competitiveness. Today, terminal operators are compelled to hire workers from labor cooperatives; because of low productivity and capability concerns, workers from labor cooperatives are retained while terminal operators simultaneously deploy their own workers, increasing the cost of doing business in the port. Labor cooperatives must demonstrate improved capacity to work skillfully and productively, while availing themselves of training programs designed to improve their capabilities and performance. At the same time, as skill levels are increased, work practices must also reflect global standards; the size of the gangs offered by cooperatives for container handling, for example, are substantially larger than the norm for container handling. Additionally, while most modernized port systems offer workers on a 24/7 basis, labor cooperatives in some cases are not willing to deploy late-shift gangs. Terminal operators are thus not able to serve vessels during late-shift hours as they are not permitted to use workers without hiring cooperatives.

2.10.2 Policy
The Ministry of Transport, in close consultation with training centers, port business entities, port authorities, and labor cooperatives, will identify port sector training and education requirements for the Ministry (including DGST), port authorities, PMUs, labor cooperatives, and port business entities and and will develop a strategy for addressing port sector training and education needs. Training requirements and strategy will be periodically revised to reflect changing demands. The Ministry of Transport will engage in memorandums of understanding with training centers, vocational institutions, and higher education institutions to promote port sector careers and to identify training and development requirements to improve labor productivity and assure respective curriculums are responsive to port sector needs, including those of the Ministry of Transport, port authorities and PMUs, port business entities, and labor cooperatives. The Ministry of Transport will engage in a dialogue with labor cooperatives to formulate incentives for increasing productivity, expand training programs, improve work practices, and to identify strategies for enhancing competition among the cooperatives providing port workers. The Ministry will promote the recruitment and retention of women into the port sector workforce and womens participation in vocational and higher educational institutions.

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2.11 Supporting Effective Port Safety Regulation 2.11.1 Critical Issues


Effective safety regulation in Indonesias ports is a shared responsibility of the national government, port authorities, and port business entities. This requires the Ministry to establish a policy for safe operations with the port authorities responsible for the execution of this policy. Port business entities in turn are responsible for introducing safety management systems as part of their operational functions. The role of port authorities in landside safety and environmental management must be clarified in view of their status as new organizations and the Ministrys oversight role in ensuring that ports are managed in a safe and environmentally-responsible manner. Independent safety oversight by the Ministry of Transport can be undertaken by developing a port safety and security framework that is agreed between the Ministry and the port authorities by way of a Port Safety Code or similar standard. In practice, it will be a formal agreement between the Ministry of Transport and the port authorities that sets out port safety operating requirements and corresponding performance measures.

2.11.2 Policy
The Ministry of Transport will enhance implementation of regulations which entrust port authorities and harbor master with effective powers to oversee safety and security based on international guidelines and standards. The recent reforms creating the port authorities require that there be independent oversight of port safety. To this end, the Ministry of Transport will develop a port safety framework setting out the obligations of port authorities in respect of compliance with port safety regulations.

2.12 Supporting Effective Environmental Regulation 2.12.1 Critical Issues


There are many common environmental concerns that ports face. These include: Handling, storage, and movement of International Maritime Dangerous Goods Code (IMDG) cargoes; Waste generation from vehicle and maintenance activities and proper disposal of such wastes; Bunker facilities, pipelines and other above- or underground storage tanks for fuels; Potential for oil, fuel and hazardous material spills and the need for spill prevention planning and emergency-response measures; Protection of the sea and atmosphere from releases into the environment, either from spills, directed discharges, or non-point source pollution; Air pollution from ground vehicle and vessel exhaust fume emissions; Wastewater discharges from cleaning operations and ballast water; Solid waste (sewerage and garbage) disposal; and Ballast water management.

Hence, national authorities are responsible for establishing internationally acceptable guidelines in respect to the port and marine environment. The Ministry of Transport is responsible for developing and applying regulations while port authorities are responsible 21

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for assuring compliance by port business entities and users. An ISO 14001 Environmental Management System is required to help the port self-police its environmental requirements and audit its own facilities, as well as develop plans to reduce pollution and commit to continuous improvement. In turn, the ISO 14001 Environmental Management System should be part of an integrated Environmental, Health and Safety Management System.

2.12.2 Policy
Effective environmental protection must be ensured through a port environmental protection code that will be developed by the Ministry of Transport and implemented by port authorities which sets forth: An Indonesian standard and best practice guidelines for environmental protection in the ports; A framework for an environmental management system to be developed and implemented by the Ministry of Transport; and Provides for periodic independent audits in addition to the oversight role to be undertaken by the Ministry.

Harbor master will be entrusted with specific powers to manage and control pollution in the ports. The Ministry of Transport will assume its full responsibilities under the Emergency Management System and engage partners in the maritime field to ensure that there is a functioning system of emergency response in the port sector.

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Chapter 3. Analysis of Port Traffic and Current Performance


In this chapter we present information collected on traffic for ports within the Indonesian port system, and trends in foreign and domestic traffic volumes by type of cargo and commodity/commodity group. Data on foreign trade (imports and exports) and domestic shipping (loadings and unloading) are presented for the following cargo types and commodity/commodity groups: General cargo Container Dry bulk o Cement; o Coal; o Iron ore; o Fertilizer; o Grain; o Other dry bulk. Liquid bulk o Petroleum & products; o Crude palm oil (CPO); o Other liquid bulk. Total traffic

3.1 Approach and Data Sources


A complete profile of the traffic handled at Indonesian ports is an important element to prepare traffic forecasts, identify necessary future port capacity additions and estimate investment. Information sources include data maintained by the DGST, by individual Pelindos, and from other recent studies of the Indonesian port sector. The information obtained from each of these sources is described in the sections below.

3.1.1 DGST Shipping Data Sets


DGST compiles from data provided by the shipping companies that report information on vessel calls at Indonesian ports. Separate data sets are maintained for foreign trade for domestic shipping. The foreign data set obtained for 2009 includes the following information: Name of shipping company; Name of vessel; Deadweight, gross tonnage and horsepower of vessel; Name and location of shipper (exporter or importer); Direction of trade (import or export); Foreign port of origin or destination; Indonesian port of origin or destination; Commodity and commodity group; Tons or TEU loaded or unloaded; Crew; Type of vessel (tramper or liner). 23

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For 2009, the foreign trade data set contains 32,734 records of individual vessel calls in Indonesia for foreign trade. The domestic shipping data sets have separate files for coal, fertilizer, cement and other commodities. The domestic data sets include the following information: Name of shipping company; Name of vessel; Flag (domestic or foreign); Deadweight, gross tonnage and horsepower of vessel; Indonesian port of origin and destination; Commodity and commodity group; Cargo type; Tons or TEU loaded or unloaded; Type of vessel (tramper or liner).

For 2009, the domestic trade data set contains more than 72,000 records of cargo/commodity shipments in Indonesian domestic trade between ports. 1 These data sets were reviewed and revised to clean them of inconsistencies and obvious errors, including the following: Indonesian port names were harmonized to a single spelling and to a single name for a particular port; Commodity (e.g. coal) or commodity group (petroleum and petroleum products) classifications were harmonized to a single commodity or commodity group name and spelling; Obvious errors in reported cargo volumes were corrected when the cargo volume grossly exceeded the carrying capacity of the vessel; Container shipments in TEU and vehicle shipments in units were separated from other cargo reported in tons.

The DGST data sets provide the single most comprehensive view of the cargo handled in Indonesian ports during 2009.

3.1.2 Pelindo Port Data


Historic information on cargo handled at Indonesian ports is also maintained by the individual Pelindos. The time series presented in this chapter are largely derived from data provided or reported by the Pelindos.

3.1.3 Data from Other Recent Studies of Indonesian Ports


Information was reviewed on port traffic from a number of recent Indonesian port sector studies and reports to fill in data gaps and to confirm or verify information obtained from the two primary sources described above.

3.2 Indonesian Port Traffic 1999-2009


As an archipelago, Indonesia relies heavily on its ports to accommodate its extensive foreign trade as well as for vast domestic commerce. In 2009, a total of 968.4 million tons were
1

Please note that some of the vessel calls have multiple records to accommodate the multiple commodities that are loaded or unloaded at a port.

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handled at Indonesian ports, consisting of 560.4 million tons of dry bulk cargo (nearly threequarters of which was coal), 176.1 million tons of liquid bulk cargo (86 percent of which was petroleum and petroleum products or CPO), 143.7 million tons of general cargo and 88.2 million tons of containerized cargo (Table 3-1). Foreign trade accounted for 543.4 million tons or 56 percent of the total volume of cargo handled at Indonesian ports in 2009. Export shipments at 442.5 million tons accounted for more than 80 percent of the foreign trade, while imports of 101.0 million tons accounted for 20 percent of the foreign trade. The export figures are higher due to the substantial volume of coal exports of 278.6 million tons in 2009. Table 3-1 Indonesian Port Traffic by Trade Flow and Cargo Type, 1999 and 2009 (000s tons)
Trade flow and cargo type IMPORTS General cargo Container cargo Dry Bulk Liquid Bulk Subtotal EXPORTS General cargo Container cargo Dry Bulk Liquid Bulk Subtotal DOMESTIC UNLOADING General cargo Container cargo Dry Bulk Liquid Bulk Subtotal DOMESTIC LOADING General cargo Container cargo Dry Bulk Liquid Bulk Subtotal 1999 2009 AAGR 1999-2009

11,777 6,755 12,281 17,327 48,140

18,628 30,658 9,719 41,954 100,958

4.7% 16.3% -2.3% 9.2% 7.7%

16,635 8,568 41,511 38,535 105,249

14,212 30,342 303,133 94,769 442,457

-1.6% 13.5% 22.0% 9.4% 15.4%

25,018 5,844 26,885 45,448 103,195

55,430 13,613 123,743 19,675 212,460

8.3% 8.8% 16.5% -8.0% 7.5%

17,535 6,525 14,499 47,334 85,893

55,430 13,610 123,771 19,675 212,485

12.2% 7.6% 23.9% -8.4% 9.5%

TOTAL General cargo 70,966 143,699 Container cargo 27,692 88,222 Dry Bulk 95,176 560,366 Liquid Bulk 148,644 176,072 Total 342,477 968,361 Source: Prepared by Nathan Associates Inc. from DGST and Pelindio data.

7.3% 12.3% 19.4% 1.7% 11.0%

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Indonesian domestic cargo handled at its ports in 2009 totaled 433.3 million tons, with dry bulk shipments of 247.8 million tons accounting for 58 percent of total domestic shipments.2 Table 3-1 and Figure 3-1 also show the growth in Indonesian port traffic for the 10-year period from 1999 to 2009. During this period, total port traffic increased at an average annual rate of 11.0 percent. However, the distribution of the growth of traffic was quite diverse. For example, dry bulk traffic increased more than five-fold from 95.2 million tons in 1999 to 560.4 million tons in 2009. Container cargo also increased at a high average annual rate of 12.3 percent from 27.7 million tons in 1999 to 88.2 million tons in 2009 3. General cargo increased at an average annual rate of 7.3 percent, while liquid bulk cargos increased at a much slower annual rate of 1.7 percent during this period. Figure 3-1 Indonesian Port Traffic by Trade Flow and Cargo Type, 1999 and 2009 (000s tons)

180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 1999 2009 General Cargo 70,966 143,699 Container Cargo 27,692 88,222 Liquid Bulk 148,644 176,072

000's tons
000's tons

600,000
500,000 400,000 300,000 200,000 100,000 Dry Bulk 1999 95,176 2009 560,366

The reason for a significant discrepancy between domestic unloading and loading statistics in 1999 is not known. Conceptually, these figures should be close as they are in 2009. 3 Container cargo volumes were estimated by multiplying TEU reported by 10 tons per TEU.

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Figure 3-2 Indonesian Port Traffic by Trade Flow and Cargo Type, 2009 (000s tons)

000's tons

600,000 500,000 400,000 300,000 200,000 100,000 Loading Unloading Export Import General Cargo 55,430 55,430 14,212 18,628 Container 13,610 13,613 30,342 30,658 Dry Bulk 123,771 123,743 303,133 9,719 Liquid Bulk 19,675 19,675 94,769 41,954

Within trade flows, exports increased the most from 195.2 million tons in 1999 to 442.5 million tons in 2009, corresponding to an average annual increase of 15.4 percent. Imports and domestic commerce volumes experienced annual growth in the range of 8-10 percent from 1999 to 2009.

3.2.1 Indonesian Port Traffic in 2009


Further detail of Indonesian port traffic in 2009 by trade flow and principal commodity/ commodity group is presented in Table 3-2. Within the dry bulk cargo type, coal accounts for nearly 90 percent of the total dry bulk foreign trade but only 56 percent of the domestic dry bulk trade. Other substantial volumes of dry bulk commodities shipped on domestic trades include fertilizer (30.7 million tons), cement (14.9 million tons), grains (2.3 million tons) and other dry bulk products (60.1 million tons). Within liquid bulk cargoes, virtually all of the 91.5 million tons of petroleum and petroleum products handled at Indonesian ports in 2009 was for foreign trade and only 385 thousand tons were reported as domestic shipments. For CPO, domestic shipments totaled 38.5 million tons in 2009, while 22.4 million tons of CPO was shipped as foreign trade (exports). Samarinda is the top port in terms of dry bulk cargo due to the 65.6 million tons of coal handled in 2009, followed by Tanjung Bara that handled 41.0 million tons of dry bulk. Tanjung Priok is the top port in terms of container traffic with 39.2 million tons of containerized cargo handled in 2009 followed by Tanjung Perak at 17.4 million tons. Tanjung Priok is also the top port for handling cement at 3.9 million tons followed by Bintuni at 3.0 million tons. Cigading is the top port for iron ore at 1.8 million tons. For fertilizer, both the ports of Pontianak and Teluk Melano each handled around 9.0 million tons in 2009. Tanjung Perak is the leading port for handling grains at 5.7 million tons in 2009, followed by Bau-Bau at 4.2 million tons. The port of Kendawangan is the leading port for other dry bulk commodities, handling 31.3 million tons in 2009.

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Table 3-2 Indonesian Port Traffic by Trade Flow and Cargo Type and Principal Commodity, 2009 (000s tons)
Type of cargo General Cargo Container Dry Bulk Cement Coal Iron Ore Fertilizer Grain Other Dry Bulk Liquid Bulk Petroleum & Products CPO Other Liquid Bulk Foreign Trade Imports Exports Subtotal 18,628 30,658 9,719 685 1,862 3,360 3,469 343 41,954 31,801 269 9,884 14,212 30,342 303,133 144 278,618 8,669 1,802 363 13,537 94,769 59,309 22,169 13,291 32,840 61,000 312,852 144 279,303 10,531 5,162 3,832 13,879 136,723 91,110 22,438 23,175 Domestic Trade Unloading Loading Subtotal 55,430 13,613 123,743 7,459 69,674 46 15,331 1,172 30,062 19,675 192 19,243 240 55,430 13,610 123,771 7,483 69,674 46 15,334 1,172 30,062 19,675 192 19,243 240 212,485 110,859 27,223 247,514 14,941 139,349 91 30,665 2,343 60,124 39,349 385 38,485 479 424,946 Total 143,699 88,222 560,366 15,085 418,652 10,623 35,828 6,175 74,003 176,072 91,495 60,923 23,654 968,361

Total 100,958 442,457 543,415 212,460 Source: Prepared by Nathan Associates Inc. from DGST shipping data.

For liquid bulk cargo, Bontang is the lead port in terms of petroleum and petroleum products at 25.6 million tons followed by Tanjung Balai Karimun at 12.9 million tons. For CPO, there are four major ports led by Dumai at 10.1 million tons, followed by Satui and Kuaro each at around 9.0 million tons and Tanjung Perak at 7.5 million tons. Balikpapan and Merak handle the largest volume of other liquid bulk products, each at around 3.6 million tons in 2009. Figures 3-3 and 3-4 presents total traffic by trade flow and cargo type, respectively, for Indonesias top 50 ports. The presentation of port volumes in this chapter up to now has been in terms of tons of cargo so as to be uniform across cargo types. However, for the discussion of container shipments, it is customary to speak in terms of twenty foot equivalent units (TEU) which has become a standard measurement unit within the container industry. Hence in this subsection, all information regarding containers handled at Indonesian ports is expressed in TEU. Table 3-3 presents containers handled at the top 50 Indonesian ports for containers in 2009 by type of trade flow. In 2009, a total of 8.8 million TEU were handled at Indonesian ports, consisting of 6.1 million TEU for foreign trade (69 percent) and 2.7 million for domestic trade (31 percent). The top 50 ports that handled containers account for 99.7 percent of the total container traffic. Due to the requirement of specialized handling equipment, the handling of containers is concentrated at just a few ports with the top 5 ports handling 84 percent of the total volume in 2009 and the top 10 ports handling 91.5 percent.

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Figure 3-3 Indonesian Top 50 Ports for Total Traffic by Trade Flow, 2009 (000s tons)

Legend:
60,000 Pie Chart of indo_plab250plus 30,000 45,000 22,500 4,500

Export Exp09 Import Imprt09 Unload09 Unloading Load09 Loading

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Figure 3-4 Indonesian Top 50 Ports for Total Traffic by Cargo Type, 2009 (000s tons)

Legend:

Pie Chart of indo_plab250plus 60,000


40,000 30,000 20,000 4,000

General Cargo Gencar09 Container Container09 Dry Bulk Drybulk09 Liquid Bulk Liquidbulk09

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Table 3-3 Indonesian Top 50 Ports for Container Traffic by Trade Flow, 2009 (000s TEU)
Port Tg. Priok Tg. Perak Belawan Tg. Emas Panjang Makassar Banjarmasin Pontianak Samarinda Pekanbaru Merak Perawang Bitung Palembang Batu Ampar Teluk Bayur Balikpapan Batam Jayapura Buatan Kabil Kuala Tungkal Sorong Tarakan Ambon Batu Licin Bau-Bau Biak Merauke P. Burung Talang Duku Palu Timika Kendari S. Guntung Fak-Fak Manokwari Nabire Benoa Benete Jambi Muntok Sampit S. Buatan Pantoloan Pangkal Balam Malili Tg. Pandan Kumai Luwuk Top 50 ports All other ports Foreign Trade Imports Exports Subtotal 1,605 1,485 3,090 630 576 1,206 302 309 610 291 253 543 137 139 277 2 2 0 0 11 32 44 25 36 61 1 53 54 16 16 33 18 29 47 1 2 3 1 3 4 2 26 27 12 15 27 0 22 22 10 10 4 5 9 8 8 2 3 5 2 2 5 2 2 4 0 3 4 1 1 3 3,064 3,031 6,095 1 3 5 Domestic Trade Unloading Loading Subtotal 328 505 833 256 282 539 180 98 278 17 15 32 14 11 25 144 104 249 61 57 118 70 29 99 50 45 95 16 13 30 1 1 3 4 5 9 27 36 63 14 15 29 20 22 42 19 16 35 15 11 26 12 15 28 0 0 0 13 9 22 9 8 17 7 8 15 7 7 14 7 4 11 7 3 10 6 4 10 5 4 9 5 4 9 6 3 9 4 3 7 4 3 7 4 3 6 3 3 6 2 2 4 2 1 3 0 0 1 1 2 1 1 2 1 1 2 1 0 2 1,347 1,354 2,700 14 7 22 Total 3,923 1,744 888 575 302 250 118 99 95 73 64 63 63 62 47 42 38 30 28 27 27 22 22 17 15 14 11 10 10 10 9 9 9 9 8 7 7 6 6 5 5 4 4 4 3 3 2 2 2 2 8,796 26 8,822

Total all ports 3,066 3,034 6,100 1,361 1,361 2,722 Source: Prepared by Nathan Associates Inc. from DGST Shipping Database, 2009.

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As can be seen from Table 3-6, there seems to be a demarcation between the volume of containers at the top 6 container ports from those lower in the list. The top 6 ports are Tanjung Priok (3.9 million TEU), Tanjung Perak (1.7 million TEU), Belawan (0.9 million TEU), Tanjung Emas (0.6 million TEU), Panjang (0.3 million TEU) and Makassar (0.3 million TEU). No other Indonesian port handled much more than 100 thousand TEU in 2009. It is interesting that for Tanjung Priok, 3.1 million TEU of its total 3.9 million TEU were of containers for foreign trade (78.8 percent), whereas Tanjung Perak handled 1.2 million TEU of its total 1.7 million TEU for foreign trade (69 percent). At Makassar, nearly all of the containers handled in 2009 were for domestic trade. A longer perspective on the growth of container traffic at Indonesian ports is presented in Table 3-4 for the period of 1990 to 2009. During this period, container traffic in Indonesia increased nearly nine-fold from 1.0 million TEU in 1990 to 8.9 million TEU in 2009 4. The growth in container volumes is shown graphically in Figure 3-5. The corresponding average annual growth rates for container traffic at the main Indonesian ports is presented in Table 3-8 for the entire period of 1990 to 2009, and for the sub-periods of 1990 to 2000, 2000 to 2009 and 2000 to 2008. Figure 3-5 displays the growth in container traffic at the main container ports during this period. For the entire period of 1990 to 2009, container traffic at Indonesian ports increased at an average annual rate of 12.2 percent, which is very high for a 19-year period. Equally impressive is the average annual growth rate of 17.3 percent that was recorded from 1990 to 2000. For the most recent period of 2000 to 2009, the average annual growth rate has been lower but still quite robust at 6.9 percent. If one discounts the financial crisis year of 2009 and looks at the 2000 to 2008 period, the average annual growth rate was 7.3 percent.

There are differences between the figures reported in Table 3-6 and Table 3-7 for container traffic in 2009. For purposes of computing average annual growth rates, it was decided to use the same Pelindo-based data sources for 2009 as for other years shown in Table 3-7.

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Table 3-4 Indonesian Main Ports for Containers, Selected Years, 1990-2009 (TEU)
Avergae annual growth rate (%) Port Tanjung Priok Tanjung Perak Belawan Tanjung Emas Makasar Banjarmasin Samarinda Pontianak Panjang Palembang Bitung Pekanbaru Balikpapan Jambi Teluk Bayur Batam a/ Jayapura Sorong Subtotal Other ports 1990 643,582 198,135 82,585 37,361 6,457 2,766 847 19,386 8,300 134 754 1,000,307 2000 2,494,606 915,000 311,089 262,697 164,684 142,958 68,685 93,098 76,090 45,657 66,737 14,236 22,401 36,655 12,383 133,345 264 2,163 4,860,585 67,915 2008 3,973,661 2,213,477 590,069 468,177 362,452 258,034 167,387 132,732 106,935 78,469 105,405 50,548 70,952 54,276 48,503 125,000 30,405 18,832 8,836,482 45,984 2009 3,799,411 1,744,300 888,400 576,100 463,818 284,282 266,438 133,419 104,175 84,403 61,914 57,612 52,844 52,086 47,633 104,200 25,592 24,110 8,746,627 224,911 1990-2009 1990-2000 2000-2009 2000-2008 9.8 14.5 4.8 5.8 12.1 16.5 7.4 12.3 13.3 15.5 25.2 27.6 30.5 9.3 13.0 38.1 25.1 12.1 14.2 21.5 38.2 48.4 60.0 14.7 18.6 86.1 40.4 17.1 17.3 12.4 9.1 12.2 7.9 16.3 4.1 3.6 7.1 (0.8) 16.8 10.0 4.0 16.1 (2.7) 66.2 30.7 6.7 14.2 6.9 6.4 7.3 9.3 11.3 11.8 3.5 4.3 7.8 5.9 (10.0) 10.1 5.8 16.0 (0.9) 72.0 23.3 7.4 (4.7) 7.3

Total 1,000,307 4,928,500 8,882,466 8,971,538 12.2 a/Batam includes Batu Ampar and Kabil. Source: Compiled by Nathan Associates Inc. from DGST, Pelindo II and other data.

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Figure 3-5 Indonesian Main Ports for Containers, Selected Years, 1990-2009 (TEU)
Legend:
2,000,000

1,000,000

Bar Chart of indo_plabcont09


250,000
1990 Cntnr90 Cntnr00 2000 Cntnr08 2009 Cntnr09

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Figure 3-6 Major International Trade Flows for Indonesia Container Traffic 2009

Legend (in 000 TEUs): 1500 750

Figure 3-7 Major Domestic Trade Flows for Indonesia Container Traffic 2009

Legend (in 000 TEUs): 350 175

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Figure 3-8 Major International Trade Flows for Indonesia General Cargo Traffic, 2009

Legend (in 000 tons): 1000 500

Figure 3-9 Major Domestic Trade Flows for Indonesia Container Cargo Traffic, 2009

Legend (in 000 tons): 5000 2500

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Figure 3-10 Major International Trade Flows for Indonesia Dry Bulk Cargo 2009

Legend (in 000 tons): 10000 5000

Figure 3-11 Major Domestic Trade Flows for Indonesia Dry Bulk Cargo 2009

Legend (in 000 tons): 5000 2500

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Figure 3-12 Major International Trade Flows for Indonesia Liquid Bulk Cargo 2009

Legend (in 000 tons): 20000 10000

Figure 3-13 Domestic Trade Flows for Indonesia Liquid Bulk Cargo 2009

Legend (in 000 tons): 10000 5000

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Chapter 4. Forecast of Indonesian Port Traffic


4.1 Approach
First, the forecast is driven by the top-down approach, working first at the national level based on macroeconomic trends and conditions in Indonesia, the region and its trading partners (Figure 4-1). Forecasts at the national level are then assigned to individual port areas based on historical patterns adjusted for special conditions such as implementation of the economic development corridor strategy. Figure 4-1 General Approach for Traffic Forecast
Voyage data; maritime traffic by port pair, 2009 Socioeconomic data (GRDP, population) & port statistics Future condition (MP3EI, specific commodity trend) Growth of specific commodities demand and productions

Data

Commodity Type (11 types) Modeling Port Demand by Commodity Type Intl & Domestic Modeling Alternative High ( with MP3EI accelerated growth) and Low Forecast (smaller GDP growth)
Future Port Demand by Commodity Type Assigning National Port Demand to Port Clusters

Forecast

Components of trade such as international container traffic and domestic container traffic that have different determinants of growth are forecasted separately taking into consideration customized regression models developed for this study.

4.2 Containers
Due to the high rate of traffic growth and the anticipated requirement for investment in new and expanded facilities, a particular focus was placed on the development of a traffic forecast for containers. The first step was to separate Indonesian container flows into those for international trade and those for domestic trade, as the characteristics and determinants of future growth for these two trade flows are quite different.

4.2.1 Forecast of International Container Flows


Comprehensive data on the classification of container traffic between International and domestic trade flows are not publicly available. We have compiled available data from DGST and the Pelindos for the main container ports of Tanjung Priok, Tanjung Perak, Belawan, Makassar and Tanjung Emas. As was described in Chapter 3, these five container ports handled 83 percent of the total container volume in Indonesia in 2009.

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International container flows were forecast through 2030 based on a multiple regression model that assesses the relationship between historical international container TEU and the independent variables of trade-weighted GDP of Indonesias major trading partners and Indonesias own GDP. GDP in constant US dollars of 2000 were obtained for Indonesia, Europe, China, and the United States from the World Banks on-line databank for the period of 1990 to 2009. For Indonesias trading partners, their GDP was weighted in accordance of their share of Indonesian foreign trade in manufactured goods. The Indonesian trade data for manufactured goods was obtained from the on-line United Nations Statistics Division, Commodity Trade Statistics Database (COMTRADE) for 1990 to 2009. The resulting regression model and the statistical results are presented in Table 4-1. The model has a coefficient of determination (R-squared) of 98 percent and the variables have t-statistics of nearly 4.0 with the exception of Europe that is still significant at a value of 2.0. The regression, based on the historical container traffic volumes, implicitly takes into account trends in the propensity to trade and containerization rates of general cargo. Table 4-1 Regression Equation and Statistics for Forecast of Indonesian International Container Traffic
Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA df Regression Residual Total Coefficients Intercept Europe TW-GDP US TW-GDP Indonesia GDP China TW GDP (2,546,444.4) (553.3) 1,373.0 19,050.0 6.1E-06 4 15 19 SS MS F 185.3371032 Significance F 1.41913E-12 4.74331E+13 1.18583E+13 9.59732E+11 63982134104 4.83928E+13 Standard Error 674,378.4 278.4 329.0 4,996.2 1.6E-06 t Stat (3.776) (1.987) 4.173 3.813 3.746 P-value 0.002 0.065 0.001 0.002 0.002 Lower 95% -3.98E+06 (1,146.803) 671.727 8,400.881 2.650E-06 Upper 95% (1,109,041.016) 40.133 2,074.246 29,699.091 9.647E-06 0.990 0.980 0.975 252,946.900 20

Source: Prepared by Nathan Associates Inc.

To apply this regression model to develop forecasts of Indonesian international container volumes in future years, it is necessary to develop assumptions regarding the future growth of GDP for Indonesia and each of its main trading partners. We have used the real GDP growth rates projected by the International Monetary Fund (IMF) as published in the Statistical Appendix of the April 2011 issue of the World Economic

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Outlook. The IMF projections are for 2011 through 2016. From 2016 through 2030, we have assumed GDP growth rates as shown in the Table 4-2. Table 4-2 Projected GDP Growth for Selected Regions and Countries, 2011-2030
Region or country Europe US 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2025 2030

1.7% 1.6% 1.8% 1.8% 1.7% 1.7% 1.7% 1.8% 1.8% 1.8% 1.8% 2.0% 2.0% 2.8% 2.8% 2.9% 2.9% 2.8% 2.8% 2.7% 2.4% 2.4% 2.4% 2.4% 2.4% 2.4%

Indonesia 6.1% 6.2% 6.5% 6.6% 6.8% 6.9% 7.0% 6.8% 6.6% 6.4% 6.0% 5.5% 5.5% China 10.3% 9.6% 9.5% 9.5% 9.5% 9.5% 9.5% 8.5% 8.5% 8.5% 7.5% 7.5% 7.5% Source: IMF World Economic Outlook for 2011-2016; Nathan Associates inc. own estimates for 2016-2030.

Alternative assumptions regarding future GDP growth are developed and applied in the alternative scenarios discuss later in this chapter. Based on the regression model and these GDP projections, Table 4-3 presents the Base Case forecast of Indonesian international container traffic through 2030. International containers handled at Indonesian ports are projected to increase from 6.2 million TEU in 2009 to 10.7 million TEU in 2015 and to reach 15.7 million TEU in 2020. With continued growth through 2030, the total volume of international containers is projected to reach 29.4 million TEU that year. In terms of average annual rates of growth, from 2009 to 2015, the international container volume is projected to increase at an average rate of 9.5 percent, declining slightly to 8.0 percent from 2015 to 2020 and 6.5 percent from 2020 to 2030. From 2009 to 2020, Indonesian GDP has been projected to grow at an overall average rate of 6.5 percent, as compared to the average growth rate of international container traffic during this period of 8.8 percent. Thus the implicit elasticity of container growth relative to GDP is 1.35 which is considered to be at the lower end of expected values. Tanjung Priok in Jakarta is by far the largest container port in Indonesia for handling international containers, accounting for 50 percent of the national volume. Within Tanjung Priok, the specialized container terminal of Jakarta International Container Terminal (JICT) handles only international traffic and accounts for more than 50 percent of the international containers at Tanjung Priok. As can be seen from Table 4-4, the ratio of TEU per box handled at JICT has remained relatively flat from 2000 through 2009 at a ratio of approximately 1.5. This means that there is roughly an equal distribution of 20-foot and 40-foot boxes handled at the terminal. It would be expected that due to the efficiencies and cost-savings achieved with the handling of 40-foot containers, during the forecast period, the ratio of TEU per box would increase to 1.6 or 1.65 as experienced in other major international container ports. One of the impediments to the greater use of 40-foot containers is the narrow roads and maneuverability issues. Nonetheless, over time, it is expected those impediments would be removed or mitigated.

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Table 4-3 Base Case Forecast of International Container Traffic at Indonesian Ports, 2009-2030 (TEU)
Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 TEU 6,199,333 6,926,383 7,557,376 8,248,675 8,997,260 9,809,023 10,689,382 11,644,330 12,602,702 13,613,965 14,680,035 15,727,137 16,789,736 17,918,258 19,116,975 20,390,444 21,682,352 23,052,639 24,506,338 26,048,815 27,685,799 29,423,403

Average Annual Growth Rate 2009-15 9.5% 2015-20 8.0% 2020-30 6.5% Source: Nathan Associates Inc.

Table 4-4 Characteristics of Container Traffic at JICT, 2000-2009


Item 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

TEU 1,596,366 1,265,103 1,509,013 1,502,883 1,636,290 1,470,467 1,619,495 1,821,282 1,985,781 1,676,886 Box 1,037,379 842,939 1,013,087 1,002,155 1,133,202 994,352 1,085,977 1,212,584 1,340,898 1,128,040 TEU/ Box 1.54 1.50 1.49 1.50 1.44 1.48 1.49 1.50 1.48 1.49 Source: Prepared by Nathan Associates Inc. from data provided by Pelindo II.

4.2.2 Forecast of Domestic Container Flows


A regression model was also prepared to project the future volume of containers on Indonesian domestic trade flows. The model consists of a simple regression of number of domestic TEU as the dependent variable and Indonesias GDP in constant US$ of 2000 as the independent variable. The data for Indonesias GDP is the same as that used for the international container forecast described earlier.

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The resulting regression model and the statistical results are presented in Table 4-5. The model has a correlation coefficient (R-squared) of 86 percent and the Indonesian GDP variable has t-statistic of 10.4. Table 4-5 Regression Equation and Statistics for Forecast of Indonesian Domestic Container Traffic
Regression Statistics Multiple R R Square Adjusted R Square Standard Error Observations ANOVA df Regression Residual Total Coefficients Intercept Indonesia GDP (2,635,746) 24,376 1 18 19 SS MS F Significance F 4.97275E-09 1.91812E+13 1.9181E+13 107.863086 3.20092E+12 1.7783E+11 2.23821E+13 Standard Error 424,646 2,347 t Stat (6.21) 10.39 P-value 0.00 0.00 Lower 95% (3,527,894) 19,445 Upper 95% (1,743,597) 29,307 0.926 0.857 0.849 421,697.504 20

Source: Prepared by Nathan Associates Inc.

The resulting Base Case forecast of Indonesian domestic container traffic is presented in Table 4-6. The volume of domestic containers is projected to increase from 2.7 million TEU in 2009 to 6.6 million TEU in 2015 and to reach 10 million TEU by 2020. In terms of average annual rate of growth, the projection results in an average rate of 15.4 percent from 2009 to 2015, 8.8 percent from 2015 to 2020 and 8.2 percent from 2020 to 2030. The high rate from 2009 to 2015 is due the fact that the volume of domestic containers in 2009 was at a depressed level. If 2009 had been a typical year, then the average growth rate from 2009 to 2015 would be around 10 percent. As mentioned earlier, it is difficult to obtain comprehensive information about the composition of container traffic in Indonesia. Table 4-7 presents data provided by Pelindo II for containers handled at its port excluding the JICT terminal. As such, this data provides an interesting look at the composition of domestic containers handled at Pelindo II ports. The ports included in this data set are Tanjung Priok (excluding JICT), Panjang, Palaembang, Teluk Bayer, Pontianak, Banten, Jambi, Sunda Kelapa, Bengalu, Balam, and Panadan.

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Table 4-6 Base Case Forecast of Domestic Container Traffic at Indonesian Ports, 2009-2030 (TEU)
Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 TEU 2,772,205 4,049,710 4,464,208 4,925,705 5,426,651 5,970,863 6,562,567 7,206,449 7,875,719 8,569,475 9,286,609 10,001,951 10,697,024 11,430,326 12,203,960 13,020,144 13,802,939 14,624,873 15,487,904 16,394,086 17,345,578 18,344,644

Average Annual Growth Rate 2009-15 15.4% 2015-20 8.8% 2020-30 6.3% Source: Nathan Associates Inc.

As can be seen from Table 4-7, tons per TEU at these ports consistently averaged around 10 tons while the ratio of TEU per box has remained at about 1.24 from 2002 through 2009. This means that the mix of container was roughly 75 percent 20-foot containers and 25 percent 40-foot containers. The percent of TEU that are empty has averaged around 20 percent while generally ranging from 15 percent to 25 percent. For the forecast, we have assumed a national average factor of 10 tons per TEU for both international and domestic trade flows. While we believe the ratio of TEU per box will increase somewhat over time, it does not affect the container forecast in this report that are presented in terms of TEU. The ratio of TEU per box, however, is significant in assessing port capacity and investment requirements to be presented in Chapter 5.

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Table 4-7 Characteristics of Container Traffic at Pelindo II Ports excluding JICT, 20002009
Item 2000 2001 9,991 2002 15,102 2003 16,752 2004 19,819 2005 22,564 2006 21,901 2007 23,645 2008 26,683 2009 26,005

Tons in containers (000s) 12,136 Boxes (000s) Full 20' Full 40' Empty 20' Empty 40' Total TEUs (000s)

424.8 209.8 220.6 58.4 913.6 1,180.9

388.9 177.3 155.7 47.6 769.4 994.2

660.7 230.9 212.6 60.7 1,164.8 1,456.4

780.9 259.9 225.1 54.4 1,320.2 1,634.4

991.9 321.9 239.8 49.0 1,602.7 1,973.6

1,111.4 402.8 234.1 56.0 1,804.2 2,262.9 10.0 1.25 15.3%

1,094.2 370.7 262.4 66.2 1,793.4 2,230.3 9.8 1.24 17.7%

1,065.4 384.6 345.9 70.1 1,866.0 2,320.6 10.2 1.24 20.9%

1,115.3 427.1 342.4 74.2 1,959.0 2,460.4 10.8 1.26 19.9%

1,187.8 424.1 404.4 77.6 2,093.9 2,595.7 10.0 1.24 21.6%

Tons/TEU 10.3 10.0 10.4 10.2 10.0 TEU/Box 1.29 1.29 1.25 1.24 1.23 Percent Empty 28.6% 25.2% 22.9% 20.4% 17.1% Source: Prepared by Nathan Associates Inc. from data provided by Pelindo II.

The combined container traffic for Indonesian international and domestic trade is presented in Figure 4-2. Total container traffic is forecast to double from 8.8 million TEU in 2009 to 17.2 million TEU in 2015 and to reach nearly 26 million TEU by 2020. This corresponds to an overall annual growth rate of 11.8 percent from 2009 to 2015 and 8.3 percent from 2015 to 2020. Figure 4-2 Indonesian Base Case Container Forecast for Domestic and International Trade, 2009-2030 (000s TEU)
50,000 45,000 40,000 35,000 30,000 25,000 20,000 15,000 10,000 5,000 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

000's TEUs

Domestic International

2024

2025

2026

2027

2028

2029

Year

2030

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The Base Case container forecast indicates the Indonesia will experience sustained high levels of container traffic growth over the next 10 years. For both domestic and international trade flows, we believe the forecasted rates of growth are justified taking into account the following considerations: Both the Government of Indonesia and independent multilateral organizations such as the IMF are forecasting real GDP growth for Indonesia of at least 6.57.0 percent for the next decade. Implementation of economic development corridors will accelerate growth and also directly affect the volume of container traffic due to o overall higher GDP growth of at least one percent per year due to accelerated program o policies for promoting and facilitating increased value-added will mean that commodities previously exported in bulk may soon be shifted to further processed materials and products that are traditionally shipped in containers. Indonesia has a history of high growth of container traffic dating back to 1990. There remains substantial potential for domestic general cargo traffic and some further international general cargo traffic to be shifted to more efficient container transport. Favorable demographic conditions means that productive age population will continue to increase faster than overall population resulting in a larger productive workforce and lower dependency ratios. Projected Increases in GDP per capita will generate a burgeoning middleclass that in the next 10 years could be double or triple in size. The growing middle class will have greater demand for manufactured and consumer products that are important determinants of key segments of container traffic.

The confluence of the considerations above are also mutually supporting in some respects. For example, the policy of shifting to increased value added not only affects the type of cargo to be traded but also reinforces the growth in GDP and GDP per capita and the burgeoning middle class. It is important to note that the container forecasts presented herein do not include any international transshipment traffic. There are several reasons for this. First, there is no history of Indonesian ports serving as international container transshipment hubs, as this business has been dominated by Singapore and Malaysia within the region that are located on major international trade routes and have efficient port operations developed for the transshipment market. Second, the focus of the present study is more on the development requirements of Indonesian ports to support national economic growth, and as such, on ports that accommodate Indonesian foreign and domestic trade flows. The development of an international container transshipment hub in Indonesia should be regarded as a commercial investment decision that should be implemented with private sector financing if market conditions warrant.

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4.3 Other Cargo Types and Commodity Groups


In this section, we present the forecast for other cargo types and commodities handled at Indonesian ports. Again, the forecasts are presented separately for international and domestic trade flows. The forecast of other cargo types was not based on regression analysis due to the lack of adequate time series of port traffic by cargo type. Instead, the forecast has been prepared taking into consideration national trends in production, consumption and foreign and domestic trade for each cargo type/ commodity A discussion of the assumptions and approach used to prepare the forecast of other cargo types and commodities is presented in the sections below. Table 4-8 presents the forecast for total cargo handled at Indonesian ports by cargo type and commodity from 2009 through 2030. Total port traffic is forecast to increase from 1.0 billion tons in 2009 to 1.3 billion tons in 2015 and 1.5 billion tons in 2020. The corresponding annual average rate of growth is 4.5 percent from 2009 to 2015 and 3.7 percent from 2015 to 2020. These figures include cargo that is carried in containers. As can be seen from Table 4-8, the annual growth rates for other cargo types (with some notable exceptions) are generally less than 5 percent.

4.3.1 General Cargo


As shown in Table 4-8, the growth rates for domestic and international general cargo traffic are about one-third of those forecast for containers. This reflects the recent growth rates experienced for international general cargo traffic and the expectation that there will be further containerization of domestic general cargo. From 2009 to 2015, international general cargo is forecast to increase at an annual rate of 3 percent while domestic general cargo is forecast at an annual rate of 5 percent. During subsequent forecast periods, general cargo is still forecast to increase but at further reduced rates of growth.

4.3.2 Dry Bulk


Within the dry bulk cargo type, we discuss the forecast separately for cement, coal, iron ore, fertilizer, grains and other dry bulk.

Cement
In 2009, Indonesian cement factories produced 37 million tons of cement, 37 million tons were sold in domestic market, and 4 million tons of cement/clinker were sold in overseas markets. In 2009, utilization of production capacity of the nine Indonesian cement companies averaged 82 percent. The Indonesia Cement Association prepares forecasts cement industry sales which are forecast to increase to 49 million tons in 2015 corresponding to an average annual growth rate of 4.8 percent. JICA prepared a regression model of domestic cement sales relative to construction GDP which resulted in a forecast 113 million tons of domestic cement sales by 2030, corresponding to an average growth rate of 5.7 percent.

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Table 4-8 Base Case Forecast of Total Cargo Handled at Indonesian Ports, 2009-2030 (000s tons)
2009 Type of cargo General Cargo Container Dry Bulk Cement Coal Iron Ore Fertilizer Grain Other Dry Bulk Type of Trade Foreign Domestic 32,840 61,000 312,852 144 279,303 10,531 5,162 3,832 13,879 110,859 27,223 247,514 14,941 139,349 91 30,665 2,343 60,124 39,349 385 38,485 479 424,946 Total 143,699 88,222 560,366 15,085 418,652 10,623 35,828 6,175 74,003 176,072 91,495 60,923 23,654 968,361 2015 Type of Trade Foreign Domestic 39,213 106,894 328,918 6,700 279,303 13,714 7,323 4,316 17,562 178,042 118,649 30,069 29,323 653,066 3.0 9.8 0.8 89.7 4.5 6.0 2.0 4.0 4.5 5.0 4.0 148,562 65,626 342,135 21,925 203,330 400 39,934 2,639 73,907 52,718 501 51,574 642 609,040 5.0 15.8 5.5 6.6 6.5 27.9 4.5 2.0 3.5 4.5 5.0 5.0 6.2 Total 187,775 172,519 671,053 28,625 482,633 14,114 47,257 6,954 91,469 230,759 119,151 81,643 29,965 1,262,107 4.6 11.8 3.0 11.3 2.4 4.9 4.7 2.0 3.6 4.5 5.0 4.0 4.5 2020 Type of Trade Foreign Domestic 43,294 157,271 310,318 8,757 250,000 16,686 9,346 4,672 20,858 216,653 144,355 37,471 34,827 727,537 2.0 8.0 (1.2) 5.5 (2.2) 4.0 5.0 1.6 3.5 4.0 4.5 3.5 2.2 180,748 100,020 438,906 28,655 272,101 1,000 48,586 2,885 85,679 65,700 610 64,271 819 785,374 4.0 8.8 5.1 5.5 6.0 20.1 4.0 1.8 3.0 4.0 4.5 5.0 5.2 Total 224,043 257,291 749,224 37,411 522,101 17,686 57,932 7,557 106,537 282,353 144,965 101,742 35,646 1,512,911 3.6 8.3 2.2 5.5 1.6 4.6 4.2 1.7 3.1 4.0 4.5 3.5 3.7 2030 Type of Trade Foreign Domestic 50,245 294,234 284,436 14,264 200,000 23,537 14,514 5,422 26,700 315,952 213,681 55,467 46,805 944,867 1.5 6.5 (0.9) 5.0 (2.2) 3.5 4.5 1.5 2.5 4.0 4.0 3.0 2.6 242,911 183,446 675,731 48,947 443,224 2,000 68,536 3,348 109,676 97,252 903 95,136 1,213 1,199,340 3.0 6.3 4.4 5.5 5.0 7.2 3.5 1.5 2.5 4.0 4.0 4.0 4.3 Total 293,155 477,680 960,167 63,210 643,224 25,537 83,050 8,770 136,376 413,204 214,584 150,603 48,017 2,144,207 2.7 6.4 2.5 5.4 2.1 3.7 3.7 1.5 2.5 4.0 4.0 3.0 3.5

Liquid Bulk 136,723 Petroleum & Products 91,110 CPO 22,438 Other Liquid Bulk 23,175 Total 543,415

Average annual growth rate (%) General Cargo Container Dry Bulk Cement Coal Iron Ore Fertilizer Grain Other Dry Bulk Liquid Bulk Petroleum & Products CPO Other Liquid Bulk -

Total 3.1 Source: Prepared by Nathan Associates Inc. as described in text.

In order to increase the utilization rate of the manufacturing plants, Indonesian cement companies expanded overseas markets after the economic crisis in 1998 and about 7 to 9 million tons of cement/clinker, which were nearly 20 percent of the production capacity, were annually exported to overseas market. With the increase of the domestic demand, export volume decreased significantly, and in 2009 the export volume of cement/clinker dropped to 4 million tons, which were equivalent to 8.4 percent of the total production capacity. Considering these situations surrounding the Indonesian cement market, JICA study team assumed that 5 percent of the cement production capacity will be sold to overseas markets in the form of cement and clinker.

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Coal
Indonesia is one of the world leading producers of coal and leads the world in exports of thermal coal. In 2010, coal production in Indonesia totaled 325 million tons, of which 265 million tons were exported and 60 million tons were consumed domestically. Trends in Indonesian coal production, exports and domestic consumption from 1996 to 2010 is shown in Figure 4-3. Figure 4-3 Indonesian Coal Production, Exports and Domestic Consumption, 19962010 (million tons)

The Government of Indonesia has a policy to encourage further consumption of coal as an energy source as part of its overall energy strategy to diversify from crude petroleum and petroleum products. Also, the further development of the coal sector in Indonesia is a priority of the MP3EI. Potential areas of expansion in Central Kalimantan and inland locations in Sumatera will require development of costly inland transportation systems. It is expected that until such inland transport systems are developed, coal production in Indonesia will increase modestly at an annual rate of 2.4 percent. As domestic consumption increases with the implementation of the national energy policy, Indonesian exports of coal are expected to remain flat or decline slightly. Obviously, major new investments in inland transport system and coal production will also require additional port capacity for the shipment of coal. Those considerations are included in the High Growth traffic scenario.

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Iron Ore
Large quantities of iron ore reserves are located in Kalimantan. However, the national iron ore production is mostly exported and not used in domestic steelmaking as Indonesia does not currently process iron ore into sponge iron or iron pellet. As such, and also due to the ferrous content of the iron ore, the domestic steel company PT. Krakatau Steel imports iron ore from Chile, Brazil and other countries. Hence, Indonesian port traffic for iron ore is in foreign trade, both for imports and exports. Iron ore port traffic is forecast to increase at an annual rate of 4.9 percent from 2009 to 2015 and 4.6 percent from 2015 to 2020 reflecting the increased demand for steel domestically and the resulting requirement for increased iron ore imports as well as modest increases in iron ore production and exports. It is possible that, due to the policy of increasing value added, Indonesia may develop an iron ore processing facility and shipped exports as pellets or sponge iron. This would remain, however, a dry bulk cargo.

Fertilizer
The increased use of fertilizer in Indonesian agriculture is a significant component of the MP3EI plans for increasing yields of Indonesian principal crops. In 2011, Indonesian production of urea fertilizer is estimated at 7.1 million tons, about 81 percent of the estimated production capacity of 8.8 million tons. Other major types of fertilizer produced in Indonesia are ammonia-based products and nitrogen-phosphorous and potassium (NPK) products. Information on the number and capacity of Indonesian fertilizer plants in 2010 is shown in Table 4-9 below, while Figure 4-4 presents the location and capacity of urea fertilizer plants. Fertilizer port traffic is forecast to increase at an annual rate of 4.7 percent from 2009 to 2015 and by 4.2 percent from 2015 to 2020.

Grains
Grain traffic handled at Indonesian ports consists of foreign imports of wheat and other grains and domestic shipments of rice, corn and other common crops. The major grain that is imported is wheat. Presently Indonesian imports a total of about four and a half million tons of wheat annually, and more than half are passing through Tanjung Priok. Historical trends of Indonesian import of wheat were obtained by JICA from the FAO statistics, and its future volume was forecast by a regression model, in which total population in Indonesia served as a regressor (R=0.90). JICA forecast that Indonesia will import a total of about 7 million tons of wheat in 2030 as both population and per capita GDP increase. Currently Indonesias per capita wheat flour consumption is around 15kg/capita, and the forecast above results in around 20 kg/capita in 2030 compared to 71 kg per capita in Singapore and 40 kg per capita in Malaysia in 2002.

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Table 4-9 Indonesian Fertilizer Plants and Annual Capacity (000s ton)

Source: Indonesia Fertilizer Producers Association (APPI), Presentation on APPI Experience, Kota Kinabalu, Malaysia, Dec 8-10, 2009. Figure 4-4 Indonesian Urea Plants and Annual Capacity, 2010 (000s tons) Source: Indonesia Fertilizer Producers Association (APPI), Presentation on APPI Experience, Kota Kinbalu, Malaysia, Dec 8-10, 2009

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Other Dry Bulk


Other dry bulk commodities include other ores and minerals, sand and aggregates used for construction, chemical products, iron and steel and forestry products. This category of port traffic is forecast to increase at an average annual rate of 3.6 percent from 2009 to 2015 and 3.1 percent from 2015 to 2020.

4.3.3 Liquid Bulk


Within the liquid bulk cargo type, we discuss the forecast separately for petroleum and petroleum products, CPO and other liquid bulk.

Petroleum and Petroleum Products


Indonesia is currently a net importer of both crude oil and refined products. Indonesia's crude oil production has been declining since 1998, due to the maturation of the country's largest oil fields and failure to develop new, comparable resources. Indonesia was a member of the Organization of Petroleum Exporting Countries (OPEC) from 1962 to 2009. In 2004, the country became a net oil importer (see Figure 4-5) and in January 2009, suspended its OPEC membership. The Indonesian government announced a basic policy on energy through presidential decree No. 05 of Year 2006 and Blue Print: National Energy Policy 2006 2025. According to the government policies, the share of petroleum shall decrease from 54.5 percent in 2005 to 20 percent in 2025 while that of coal shall increase to 33 percent from 16.8 percent at present. Sales of petroleum in the domestic market and import volume of petroleum product have been decreasing since 2004. Figure 4-5 Indonesian Crude Oil Production and Consumption, 1999-2009

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The Technical Report on the Development of the National Port Master Plan prepared a forecast of future petroleum port volumes taking into consideration: Crude oil production has been falling consistently since 1990 and at an escalating rate in recent years. Although the average rate of decline between 1996 and 2008 was 3.8 percent, yeartoyear declines have been 4 percent to 5 percent in most recent years. Increasing rates of decline are a common feature in mature oil fields such as Indonesias. They projected crude oil production to decline at 4 percent a year between 2009 and 2030. Crude oil exports have fallen at 6 percent a year over 1996 to 2008 but have been stable in recent years. We projected these exports to continue to decline, but at a modest rate of 1 percent a year. Crude oil imports have been falling slowly in recent years. They projected these imports to continue to decline at a modest rate of 1 percent a year. Because crude oil imports are projected to decline at 1 percent a year, we used the same rate of decline for product exports. Apparent domestic demand increased slowly between 1996 and 2008, at about 1 percent a year. Indonesian consumption figures from the U.S. Department of Energy for the same period increased at 2.5 percent a year. Before the oil subsidy reduction in 2005, typical yeartoyear growth rates in consumption were between 5 percent and 7 percent. We expect generally a low growth rate in future because of the probable removal of fuel subsidies and the likely high world price of crude oil in the long term, perhaps US$100 a barrel in todays dollars. Under these circumstances, petroleum demand in Indonesia will increase but at a modest rate. The factors affecting demand will be increasing population and rising per capita incomes. They estimated that demand will grow at 3.0 percent a year between 2009 and 2030.

Crude Palm Oil (CPO)


Indonesia is the largest producer of palm oil in the world with 19.5 million tons in 2009. Malaysia is a close second at 17.5 million tons in 2009. Together these two countries account for about 82 percent of global CPO production. Crude palm oil is an important commodity highlighted in the MP3EI for the economic corridors of Sumatra and Kalimantan. More than 70 percent of Indonesian CPO production area is in Sumatra, although in recent years, the production area in Kalimantan has been growing rapidly. In 2009, Sumatra had approximately five million hectares of palm oil plantations, of which 75 percent were mature plantations. However, further expansion of palm oil plantations in both Sumatra and Kalimantan is limited due to environmental consideration. Hence, the strategy is to improve palm oil yields that are substantially below those achieved in Malaysia. According to the MP3EI report, the low productivity for small holders is primarily caused by:

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Use of low quality seeds. Research shows that the use of higher quality seeds can increase yields by up to 47 percent from current levels; Inadequate use of fertilizer due to high prices for fertilizers; Time between Fresh Fruit Bunches (FFB) to the old mill (above 48 hours) decreases the productivity of CPO produced.

Given the importance of CPO to the economic corridor goals and objectives for Sumatra and Kalimantan, it is believed that CPO production and shipments will increase at an average annual rate of 5.0 percent from 2009 to 2015 and 4.5 percent from 2015 to 2020, based on the assumption that new areas being brought under production are limited. The rate of growth for CPO production is thus assumed to be approximately equal to the long-term growth rate of global CPO demand.

Other Liquid Bulk


Other liquid bulk products include chemical products and other edible oils and products, such as vegetable oil and molasses. These other liquid bulk products are shipped as international trade and consist roughly of 60 percent exports and 40 percent imports. Indonesian port traffic of other liquid bulk products is forecast to increase at an average annual rate of 4.0 percent from 2009 to 2015 and by 3.5 percent from 2015 to 2020.

4.4 Alternative Traffic Scenarios


In this section, we present the forecasts of Indonesian port traffic through 2030 for alternative assumptions regarding macroeconomic assumptions for Indonesia and trade partners. The alternative GDP growth rates used for the three scenarios is presented in Table 4-10 below. Table 4-10 GDP Growth Assumptions for Alternative Traffic Scenarios, 2010-2030 (%)
Scenario
High Growth Europe US Indonesia China 1.7 2.8 6.1 10.3 2.0 3.3 6.2 10.0 2.2 2.9 7.0 10.0 2.3 3.1 7.1 10.0 2.4 3.2 7.3 10.0 2.4 3.4 7.4 10.0 2.5 3.5 7.5 10.0 2.5 3.0 7.5 8.5 2.5 3.0 7.5 8.5 2.5 3.0 7.5 8.5 2.5 3.0 7.0 8.0 2.0 2.7 7.0 7.5 2.0 2.7 7.0 7.5 2.3 2.7 6.5 7.5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2025 2030

Base Case
Europe US Indonesia China Low Growth Europe US Indonesia China 1.7 2.8 6.1 10.3 1.5 2.4 6.2 9.6 1.5 2.4 6.0 8.5 1.5 2.4 6.0 8.5 1.5 2.4 6.0 8.5 1.5 2.4 6.0 8.5 1.5 2.4 6.0 8.0 1.5 2.4 5.5 8.0 1.5 2.4 5.5 8.0 1.5 2.4 5.5 8.0 1.5 2.0 5.0 8.0 1.5 2.0 5.0 7.5 1.5 2.0 5.0 7.5 1.5 2.0 4.5 6.5 1.7 2.8 6.1 10.3 1.6 2.8 6.2 9.6 1.8 2.9 6.5 9.5 1.8 2.9 6.6 9.5 1.7 2.8 6.8 9.5 1.7 2.8 6.9 9.5 1.7 2.7 7.0 9.5 1.8 2.4 6.8 8.5 1.8 2.4 6.6 8.5 1.8 2.4 6.4 8.5 1.8 2.4 6.0 7.5 2.0 2.4 5.5 7.5 2.0 2.4 5.5 7.5 2.0 2.4 5.5 7.5

Source: Prepared by Nathan Associates Inc.

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Using the same regression models as the Base Case Scenario, forecasts of international and domestic container traffic were prepared after applying the trade-weighted GDP for each region/ country. As can be seen from Table 4-11, under the High Growth Scenario total Indonesian container traffic would reach 57 million TEU by 2030 as compared to 48 million forecasts for the Base Case Scenario and 42 million for the Low Growth Scenario. Figure 4-6 presents the forecasts for total container trade for the three scenarios graphically. Table 4-11 Indonesian Container Traffic under Alternative Growth Scenario, 20092030 (000s TEU)
Year 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Low Growth InternationalDomestic 6.199 2.772 6.926 4.050 7.548 4.464 8.172 4.890 8.838 9.549 10.308 11.099 11.904 12.761 13.673 14.585 15.527 16.524 17.582 18.704 19.894 21.014 22.195 23.439 24.750 26.132 5.342 5.820 6.328 6.866 7.388 7.939 8.521 9.079 9.665 10.280 10.925 11.604 12.316 12.988 13.691 14.426 15.194 15.996 Base Case Total InternationalDomestic 8.972 6.199 2.772 10.976 6.926 4.050 12.012 7.557 4.464 13.062 8.249 4.926 14.180 15.370 16.636 17.965 19.293 20.701 22.194 23.664 25.191 26.804 28.508 30.307 32.209 34.003 35.887 37.865 39.944 42.128 8.997 9.809 10.689 11.644 12.603 13.614 14.680 15.727 16.790 17.918 19.117 20.390 21.682 23.053 24.506 26.049 27.686 29.423 5.427 5.971 6.563 7.206 7.876 8.569 9.287 10.002 10.697 11.430 12.204 13.020 13.803 14.625 15.488 16.394 17.346 18.345 High Growth Total InternationalDomestic 8.972 6.199 2.772 10.976 6.926 4.050 12.022 7.577 4.464 13.174 8.308 4.961 14.424 15.780 17.252 18.851 20.478 22.183 23.967 25.729 27.487 29.349 31.321 33.411 35.485 37.678 39.994 42.443 45.031 47.768 9.107 9.981 10.937 11.984 13.033 14.161 15.375 16.603 17.883 19.252 20.716 22.282 23.958 25.678 27.513 29.472 31.563 33.790 5.502 6.093 6.736 7.439 8.195 9.007 9.880 10.756 11.694 12.697 13.770 14.919 16.147 17.368 18.669 20.053 21.528 23.099 Total 8.972 10.976 12.041 13.269 14.609 16.073 17.673 19.423 21.228 23.168 25.255 27.359 29.577 31.949 34.486 37.201 40.106 43.046 46.182 49.525 53.091 56.889

Average Annual Growth Rate 2009-15 8,8% 14,7% 2015-20 7,2% 7,5% 2020-30 6,0% 5,8% Source: Nathan Associates Inc.

10,8% 7,3% 5,9%

9,5% 8,0% 6,5%

15,4% 8,8% 6,3%

11,5% 8,3% 6,4%

9,9% 8,7% 7,4%

15,9% 9,8% 7,9%

12,0% 9,1% 7,6%

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Figure 4-6 Forecast of Indonesian Total Container Traffic under Alternative Growth Scenarios, 2015-2030 (000s TEU)
60,000 Low Growth Base Case

000's TEUs

50,000
40,000 30,000 20,000 10,000 2015 2020 2025 2030 Year

High Growth

Figure 4-7 presents the forecast of total Indonesian traffic by cargo type for the three scenarios. Total traffic is forecast to reach 2.7 billion tons by 2030 for the High Growth Scenario as compared to 2.1 billion tons in the Base Case Scenario and 1.8 billion tons in the Low Growth Scenario. Figure 4-7 Forecast of Total Indonesian Port Traffic by Cargo Type Under Alternative Growth Scenarios, 2015-2030 (000s tons)

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Table 4-12 and Table 4-13 provide further detail regarding the alternative traffic forecast by cargo type for the High Growth Scenario and Low Growth Scenario, respectively. Table 4-12 High Growth Scenario Forecast of Total Cargo Handled at Indonesian Ports, 2009-2030 (000s tons)
2009 Type of cargo General Cargo Container Dry Bulk Cement Coal Iron Ore Fertilizer Grain Other Dry Bulk Type of Trade Foreign Domestic 32,840 61,000 312,852 144 279,303 10,531 5,162 3,832 13,879 110,859 27,223 255,914 14,941 139,349 91 30,665 2,343 60,124 39,349 385 38,485 479 433,346 Total 143,699 88,222 568,766 15,085 418,652 10,623 35,828 6,175 74,003 176,072 91,495 60,923 23,654 976,761 2015 Type of Trade Foreign Domestic 40,369 109,370 503,082 6,706 314,541 151,783 7,532 4,444 18,075 184,105 122,097 31,829 30,179 836,925 3.5 10.2 8.2 89.7 2.0 56.0 6.5 2.5 4.5 5.0 6.0 4.5 152,858 67,360 346,293 22,676 203,330 400 41,095 2,717 76,076 55,769 516 54,592 661 622,280 5.5 16.3 5.2 7.2 6.5 27.9 5.0 2.5 4.0 5.0 6.0 5.5 6.2 Total 193,226 176,730 849,375 29,382 517,871 152,184 48,627 7,161 94,150 239,873 122,612 86,421 30,840 1,459,205 5.1 12.3 6.9 11.8 3.6 55.8 5.2 2.5 4.1 5.0 6.0 4.5 6.9 2020 Type of Trade Foreign Domestic 46,799 166,030 575,209 9,188 330,586 198,375 9,845 4,907 22,309 231,466 152,155 42,594 36,718 1,019,504 3.0 8.7 2.7 6.5 1.0 5.5 5.5 2.0 4.3 4.5 6.0 4.0 4.0 190,488 107,560 449,686 30,345 272,101 1,000 52,448 3,000 90,791 74,563 643 73,057 863 822,298 4.5 9.8 5.4 6.0 6.0 20.1 5.0 2.0 3.6 4.5 6.0 5.5 5.7 Total 237,287 273,590 1,024,895 39,533 602,687 199,375 62,293 7,907 113,101 306,029 152,797 115,651 37,581 1,841,802 4.2 9.1 3.8 6.1 3.1 5.6 5.1 2.0 3.7 4.5 6.0 4.0 4.8 2030 Type of Trade Foreign Domestic 59,906 337,900 758,098 15,694 365,172 323,131 16,036 5,981 32,083 360,024 236,291 69,381 54,352 1,515,928 2.5 7.4 2.8 5.5 1.0 5.0 5.0 2.0 3.7 4.5 5.0 4.0 4.0 268,703 230,990 634,983 53,327 365,681 2,479 85,433 3,657 124,406 121,407 998 119,002 1,406 1,256,082 3.5 7.9 3.5 5.8 3.0 9.5 5.0 2.0 3.2 4.5 5.0 5.0 4.3 Total 328,609 568,890 1,393,081 69,021 730,854 325,611 101,468 9,638 156,489 481,430 237,290 188,383 55,758 2,772,010 3.3 7.6 3.1 5.7 1.9 5.0 5.0 2.0 3.3 4.5 5.0 4.0 4.2

Liquid Bulk 136,723 Petroleum & Products 91,110 CPO 22,438 Other Liquid Bulk 23,175 Total 543,415

Average annual growth rate (%) General Cargo Container Dry Bulk Cement Coal Iron Ore Fertilizer Grain Other Dry Bulk Liquid Bulk Petroleum & Products CPO Other Liquid Bulk -

Total 7.5 Source: Prepared by Nathan Associates Inc. as described in text.

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Table 4-13 Low Growth Scenario Forecast of Total Cargo Handled at Indonesian Ports, 2009-2030 (000s tons)
2009 Type of Trade Foreign Domestic 32,840 61,000 312,852 144 279,303 10,531 5,162 3,832 13,879 110,859 27,223 255,914 14,941 139,349 91 30,665 2,343 60,124 39,349 385 38,485 479 433,346 2015 Type of Trade Foreign Domestic 36,983 140,272 103,080 63,280 289,314 314,218 182 19,458 247,419 181,468 13,714 123 6,723 38,802 4,215 2,577 17,061 71,791 172,491 115,284 28,720 28,488 50,354 487 49,261 606 2020 Type of Trade Foreign Domestic 40,434 166,600 145,850 90,790 261,307 385,699 227 24,248 212,467 231,605 16,288 156 8,101 46,084 4,541 2,776 19,683 80,829 206,052 138,917 34,111 33,025 59,813 587 58,507 720 2030 Type of Trade Foreign Domestic 46,009 261,320 217,576 352 156,678 19,855 11,427 5,270 23,993 284,072 195,956 45,842 42,275 808,977 1.3 6.0 (1.8) 4.5 (3.0) 2.0 3.5 1.5 2.0 3.5 3.0 2.5 2.2 203,084 159,960 545,654 37,656 342,832 267 63,146 3,222 98,530 80,423 828 78,628 968

Type of cargo General Cargo Container Dry Bulk Cement Coal Iron Ore Fertilizer Grain Other Dry Bulk

Total 143,699 88,222 568,766 15,085 418,652 10,623 35,828 6,175 74,003 176,072 91,495 60,923 23,654 976,761 -

Total 177,256 166,360 603,532 19,640 428,887 13,837 45,524 6,792 88,852 222,846 115,771 77,981 29,094 1,169,994 3.6 11.2 1.0 4.5 0.4 4.5 4.0 1.6 3.1 4.0 4.2 3.5 3.1

Total 207,033 236,640 647,005 24,475 444,072 16,445 54,185 7,317 100,512 265,866 139,504 92,617 33,745 1,356,544 3.2 7.3 1.4 4.5 0.7 3.5 3.5 1.5 2.5 3.8 3.5 3.0 3.0

Total 249,092 421,280 763,230 38,008 499,510 20,123 74,573 8,492 122,524 364,496 196,784 124,470 43,242

Liquid Bulk 136,723 Petroleum & Products 91,110 CPO 22,438 Other Liquid Bulk 23,175 Total 543,415

601,869 568,125 2.0 9.1 (1.3) 4.0 (2.0) 4.5 4.5 1.6 3.5 4.0 4.2 3.5 1.7 4.0 15.1 3.5 4.5 4.5 5.0 4.0 1.6 3.0 4.0 4.2 4.0 4.6

653,643 702,902 1.8 7.2 (2.0) 4.5 (3.0) 3.5 3.8 1.5 2.9 3.8 3.5 3.0 1.7 3.5 7.5 4.2 4.5 5.0 5.0 3.5 1.5 2.4 3.8 3.5 3.5 4.3

989,121 1,798,098 2.0 5.8 3.5 4.5 4.0 5.5 3.2 1.5 2.0 3.5 3.0 3.0 3.5 1.9 5.9 1.7 4.5 1.2 2.0 3.2 1.5 2.0 3.5 3.0 2.5 2.9

Average annual growth rate (%) General Cargo Container Dry Bulk Cement Coal Iron Ore Fertilizer Grain Other Dry Bulk Liquid Bulk Petroleum & Products CPO Other Liquid Bulk Total -

4.5 Implications of Indonesian Port Traffic Forecast for 2009-2030


The Indonesian port traffic forecast presented in this report has a number of key implications that need to be considered for the future development of the national port system. These include: By 2020 Indonesia container traffic will be more than double 2009 volumes and will double again by 2030. New and expanded container terminals are urgently required in many locations. Increased container volumes will likely lead to a need for new container hub ports such as in Kuala Tanjung and bulk facilities at Balikpapan/ Maloy5. Feasibility of development of a new container hub ports needs further study.
5

These container hub ports will more likely serve as domestic container distribution centers to other Indonesian ports, rather than handle international transshipment containers.

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Slower growth of dry and liquid bulk traffic means that total cargo tonnage will only increase by 50 percent by 2020 and another 50 percent by 2030. Additional bulk port capacity will be needed in some locations and may be undertaken by the private sector.

The high rates of forecast traffic growth should serve as an important opportunity for Indonesia to expand and modernize it ports system to meet the coming demand and to enhance competitiveness with other nations and regions.

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Chapter 5. Port Location and Development Plan


This chapter presents the investment requirements prepared for Indonesian port system through 2030. It builds upon the information on historic port traffic and operational performance presented in Chapter 3 and the projections of port traffic through 2030 presented in Chapter 4.

5.1 Approach and Methodology


The approach of estimating Indonesias port sector investment requirements through 2030 using the most rigorous methodology feasible taking into account the quantity and accuracy of data, port master planning and investment prioritization assignments. Identification of port development requirement, first of all, will be based on port capacity aassessment approach. Because of port demand projection in national level, the port capacity approach is lack of detailed development scheme in individual port level. Therefore, it will be adopted also port development program proposed by Pelindo as main port operator in Indonesia, as far as the projects are still in line with the government policy. The identification of port development requirement will therefore follow development scenario approach based on government policy. The government policy which will be considered are: (a) Prioritized Actions for Connectivity and Port Infrastructure Development to Support the Program of Indonesia Economic Corridor 2030, (b) Blueprint of Multimodal Transport/ Intermodal Transportation to support National Logistic System, (c) Strategic port development target, such as promoting international hub port6 (in Kuala Tanjung, Batam, Bitung or Sorong ), national heritage port and maritime centre (Sunda Kelapa) and tourism port (Benoa Bali) and terminal passenger/ cruise ship in Tanah Ampo Bali. The methodology employed consisted of the following steps listed in Figure 5-1.

5.2 Port Facilities and Capacity Assessment


In this section, we present an analysis of the capacity of existing facilities at Indonesias main ports and a comparison of estimated capacity with forecasted traffic through 2030. Physical requirements for additional port facilities are identified and the corresponding investment requirements are estimated.

Subject to further feasibility studies

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Figure 5-1 Investment Requirement Methodology


Step 1 Step 2 Step 3 Collect and analyze information on existing and planned port facilities, and separate terminal Review cargo handling productivity and estimate terminal capacity, and compare with existing throughput (calculate capacity utilization) Identify potential for productivity improvements over time due to improved operations and more and higher capacity equipments, and recalculate terminal capacity based on assumed productivity increases. Estimate additional facilities based on projected port demand and recalculated port capacity. Identification of port development requirement, by combining the estimation additional port facilities based on capacity approach, and the port development scenario proposed by port operator, and accommodating the action plan specified on Sislognas blueprint and MP3EI document. Estimate investment required for identified port development (in specific development phase), using unit cost for construction of main port facilities or unit cost based port capacity. Allocate also investment requirement for other small ports. Estimate indicative funding requirement, by identify potential for private sector investment (i.e. commercial terminal) and requirement for public investment (other terminal, basic infrastructures, lands)

Step 4 Step 5

Step 6

Step 7

As described in Chapter 4, international and domestic container traffic is projected to experience the highest rate of growth during the forecast period through 2030. As such, the principal focus of this chapter is on assessing the investment requirements for expanded and new container facilities. However, in order to have a complete profile of Indonesias port sector investment requirements, the; requirements for CPO, petroleum and other cargoes are summarized incorporated from the DWA analysis presented in IndII 2010 Technical Report on the Development of the National Port Master Plan.

5.2.1 Container and General Cargo Port Facilities


The NPMP Revision Team collected information on container and general cargo port facilities from several sources. The primary source was an inventory of port facilities provided by DGST, organized by region and province. This inventory included current data on berth length and depth for each port and specific facilities within the port. Other information was obtained from a 2006 compendium of information on Indonesias main ports and summaries for 26 ports presented by DWA in the 2010 IndII Technical Report on the Development of the National Port Master Plan. We compiled and compared information on general cargo and container terminal berth length and depth; however, information on depth did not appear up-to-date or accurate and was not used in the analysis.

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Table 5-1 presents information collected on container and general cargo facilities at 22 main Indonesian container ports. The ports are grouped by region that corresponds to economic development corridors used in the MP3EI. Table 5-1 Container and General Cargo Berth Facilities at Selected Indonesian Ports, 2011 (meters)
Container Region and port North Sumatera Belawan/Kuala Tanjung Teluk Bayur Pekanbaru Batam West Kalimantan Pontianak South Sumatera Palembang Panjang Jambi East-South Kalimantan Balikpapan Samarinda Banjarmasin South Sulawesi Makassar Java Tg. Perak Tg. Emas Tg. Priok Bali- NT Benoa The East Bitung Jayapura Merauke Ambon Pantoloan Sorong TPK 850 222 405 266 848 240 General Cargo Total 3,272 1,060 362 2,142 827 741 1,380 438 589 937 865 Conventional Total Container Conventional 242 181 428 88 98 234 2,180 838 181 1,714 422 475 532 350 491 703 625

850 1,870 495 3,308 225 -

210 235 494 800 41 86 102 58 30 85

735 7,281 577 5,845 206 1,187 128 152 851 573 226 26,272

1,795 9,385 1,566 9,953 247 1,412 214 254 909 603 310 39,261

Total above ports 9,579 3,411 Source: Nathan Associates Inc. as described in text.

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There are 11 Indonesian ports that have specialized container terminals with total berth length of 9.6 km. Another 3.4 km of conventional berths are estimated to be used at the main Indonesian container ports listed in Table 5-2. Those ports also have conventional berths for general cargo that total 26.3 km. Tanjung Priok has the most berth facilities dedicated to container operations at 3,308 m followed by Tanjung Perak at 1,870 m. The ports of Belawan, Makassar and Panjang each have approximately 860 m of berths of specialized container terminals. These 22 ports handled 8.7 million TEU in 2009 or 98 percent of Indonesias total container traffic. The location of each port and the container traffic volumes for 2009 and forecast through 2030 is presented graphically in Figure 5-2. The forecast of general cargo and container traffic from 2009 to 2030 is also shown in Table 5-2. Table 5-2 General Cargo and Container Traffic Forecast at Main Indonesian Container Ports, 2009-2030 (Base Scenario)
Region and port North Sumatera Belawan/Kuala Tanjung Teluk Bayur Pekanbaru Batam West Kalimantan Pontianak South Sumatera Palembang Panjang Jambi East-South Kalimantan Balikpapan Samarinda Banjarmasin South Sulawesi Makassar Java Tg. Perak Tg. Emas Tg. Priok Bali- NT Benoa The East Bitung Jayapura Merauke Ambon Pantoloan Sorong 2009 4,062.8 927.4 229.7 2,305.8 338.8 296.1 760.4 140.8 924.7 639.0 809.4 GenCar (000 tons) 2015 2020 5,309.0 1,211.8 300.2 3,013.0 442.7 386.9 993.7 183.9 1,208.3 835.0 1,057.6 6,334.4 1,445.9 358.2 3,594.9 528.2 461.7 1,185.6 219.5 1,441.7 996.3 1,261.9 2030 8,288.4 1,891.9 468.7 4,703.9 691.1 604.1 1,551.3 287.2 1,886.4 1,303.7 1,651.2 2009 888.4 42.1 73.1 104.2 99.2 62.0 301.7 32.0 38.1 95.0 118.0 Container (000 TEU) 2015 2020 1,737.3 82.3 143.0 203.7 194.1 121.2 590.0 62.5 74.5 185.9 230.8 2,591.0 122.7 213.3 303.8 289.4 180.8 880.0 93.2 111.1 277.2 344.1 2030 4,810.4 227.7 396.0 564.0 537.4 335.7 1,633.7 173.0 206.2 514.6 638.9

1,166.1 3,763.7 703.9 6,686.0 10.0 1,043.2 63.7 100.8 307.4 10.9 319.3

1,523.8 4,918.1 919.8 8,736.7 13.0 1,363.1 83.3 131.7 401.6 14.3 417.3

1,818.1 5,867.9 1,097.4 10,424.1 15.6 1,626.5 99.4 157.2 479.2 17.0 497.8 39,929

2,379.0 7,678.1 1,436.0 13,639.8 20.3 2,128.3 130.0 205.7 627.8 22.3 651.4 52,247

456.2 1,744.3 575.2 3,922.8 5.7 62.6 27.8 10.1 15.2 3.4 22.0 8,699

892.0 3,411.1 1,124.9 7,671.0 11.2 122.3 54.4 19.8 29.8 6.6 42.9 17,011

1,330.4 5,087.2 1,677.6 11,440.4 16.7 182.5 81.1 29.5 44.4 9.9 64.0 25,370

2,469.9 9,444.7 3,114.6 21,239.9 31.0 338.8 150.5 54.8 82.5 18.4 118.9 47,102

Total above ports 25,610 33,465 Source: Nathan Associates Inc. as described in text.

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Figure 5-2 Location and Forecasted Container Traffic at Main Indonesian Container Ports, 2009-2030 (TEU)

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Port Productivity Factors


The common methodology for calculating capacity of container terminals is based on separating the terminals into its main components, calculating the capacities of each, and identifying the most constraining one as that of the entire terminals. Typically, the main terminal components include: Berth (Pier, Dock) where ships are moored and shore cranes transfer containers between ship-board and shore (first point of rest); Container Yard (container yard) where containers are transported to/from ship-side are temporary stored and trucks and railcars are loaded/unloaded; and Gate where containers, trucks and railcars are processed underway to/from the terminal, including pre-gate parking for trucks. Sometimes the list above is expanded to include three additional components outside the terminal: the access channel and turning basin on the water side, and the road and rail connections to the hinterland on the land side. The capacity of the container terminal is determined by its most restricted component (bottleneck). In most port areas worldwide, there is acute shortage of waterfront area. Hence, the container yard, which typically consumes about 70 80 percent of the waterfront area, is the most restricting component and the determining component of the overall terminal capacity. The gate usually does not restrict capacity since it consumes relatively small land area. Also, in some cases, the gate and the pregate parking area can be located away from the waterfront area where there is plenty of land. The berth, despite being the most expensive terminal component, usually has a much larger capacity than the yard. Berth capacity is a function of berth productivity and the time that the berth is expected to operate at this level of productivity. This time is also measured as a percentage of the available (usually calendar) time and therefore defined as berth utilization. Berth productivity, in turn, is a function of crane productivity and the average number of cranes that can serve this berth. Terminal capacity is simply the product of berth capacity multiplied by the number of berths. The key factor in the above formula is berth utilization. Defining this utilization level is based on a trade-off between ship and terminal time (who waits for whom). This trade-off is often analyzed using a queuing simulation model whereby the waiting time is defined as a fraction of the working time (e.g., 10 percent), or as an absolute value (e.g., 4 hours). The concept of capacity is closely related with the concepts of productivity and utilization. Operating the same terminal at higher crane productivity would result in a higher capacity. This can be seen from the formula above whereby increase in crane productivity results in a higher berth capacity (and vice-versa) without increasing the number of berths or cranes. This is not the case with utilization, however. Increasing

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utilization beyond a certain level, whether of the berth or the yard, usually results in congestion and lower operational performance and level of service to terminal users. This in turn would result in increasing the waiting times of ships and trucks along with overall system cost. Table 5-3 presents an outlook for berth capacity indicators developed by Nathan Associates Inc. taking into account industry trends and expected developments for container ports worldwide. Table 5-3 Container Terminal Berth Capacity Indicators, 2009-2025
Berth Depth Berths Design Berth Berth-m Length Alongside per Ship Capacity Capacity Year Type of Berth (m) (m) Terminal (TEU) (TEU/ Berth) (TEU/m) 2009 Multipurpose 150 10-11 2 1,000 100,000 667 2009 Sub Panamax 250 12 3 3,000 350,000 1,400 2012 Panamax 280 14 3 4,500 450,000 1,607 2012 Panamax 280 14 4 4,500 495,000 1,768 2014 Post Panamax I 300 15 3 5,700 500,000 1,667 2014 Post Panamax I 300 15 4 5,700 550,000 1,833 2017 Post Panamax II 350 16 4 8,000 700,000 2,000 2025 Post Panamax III 400 16-18 4 12,000 1,000,000 2,500 Source: Nathan Associates Inc.

For this report, the approach used to estimate port capacity for this report is based on an overall factor for throughput per meter of berth. The productivity factor is affected by a number of variables, including: Volume of containers or general cargo handled; Composition of traffic between international and domestic trades; Size and type of vessels served; Adequacy of space available in container yard or dock area/ storage facilities; Capacity and quantity of cranes and other handling equipment; Training and operational performance of operators; Traffic flow and level of congestion in and near port; Hours worked; Increased use of 40-foot containers.

It is not possible to account for the variability of all of these factors for all of the ports assessed in this report. However, from observations of port the performance in Indonesia and elsewhere, the overall productivity of ports often falls into discrete categories based on the size and type of the terminals analyzed. This is because often a number of the above factors are inter-related and mutually supporting. For example the greater volume of traffic and the larger vessels will tend to call at ports that are capable of accommodating them. Thus the type and quantity of cranes and other cargo handling equipment is correlated to the type and size of terminal. Similarly, the training

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and operating performance of port operators is frequently correlated to the volume of port traffic. The productivity factors presented in Table 5-4 are based on experience in Indonesia as developed from the following sources: DWA, 2010 IndII Technical Report on the Development of the National Port Master Plan; JICA, Study on the Development of Domestic Sea Transportation and Maritime Industry in the Republic of Indonesia (STRAMINDO), March 2004; Nathan Associates experience in Indonesia and other similar ports worldwide.

The resulting productivity factors were calibrated with actual 2009 port throughputs to reflect the level of port utilization for various types and sizes of Indonesian ports. Table 5-4 Assumed Indonesian Port Productivity Factors by Type of Facility, 20092030
Type of cargo and terminal Containers (TEU/ m of berth) Specialized Terminal Tanjung Priok Other ports over 750,000 TEU Other ports 300,000-750,000 TEU Other ports under 300,000 TEU Conventional Terminal 2009 2015 2020 2030

1,250 1,000 750 650 500

1,625 1,300 975 845 650

2,031 1,625 1,219 1,056 813 3,528

2,031 1,625 1,219 1,056 813 4,939

General cargo (tons/ m of berth) 1,800 2,520 Source: Nathan Associates Inc. as described in text.

We have incorporated improvements in the productivity factors over time. This is to reflect: projected increases in traffic volumes; increased vessel sizes; provision of higher capacity cranes and more overall cargo-handling equipment; improved training and performance of operators. Container productivity is assumed to improve by 30 percent between 2009 and 2015 and another 25 percent between 2015and 2020. General cargo productivity is assumed to increase by 40 percent during each of the periods shown from 2009 through 2030. This is due to factors cited above, plus the greater use of unitized or palletized cargo handling in place of individual bags for break-bulk cargo. Even still, the rate of general cargo handling per meter of berth is only 4.9 thousand tons in 2030, as compared to the handling of containerized cargo at conventional terminals of 8.1 thousand tons per meter of berth (assuming an average of 10 tons per TEU). Cargo at a specialized container terminal has an assumed productivity in 2030 of over 20 thousand tons per meter of berth.

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Container Capacity and Requirements for Additional Capacity


We have applied the port productivity factors described in the section above to the estimates of existing meters of berth by type at each of the 22 main container ports. The results are presented in Table 5-5. The analysis indicates that many of Indonesias main port are approaching the limits of their effective capacity given current productivity factors. For containers, the ports of Belawan, Tanjung Emas, Tanjung Perak, Tanjung Priok are each operating at around 90 percent of effective capacity, while the ports of Pekanbaru and Samarinda, are each operating at around 80 percent of effective capacity. With the exceptions of Balikpapan and Belawan, general cargo operations generally have sufficient or excess capacity. Table 5-5 Capacity Analysis for Main Indonesian Container Ports, 2009
Container General Cargo TPK Conventional Total Container Conventional Length TEU/ m Capacity Length TEU/ m Capacity Total Capacity Length Tons/ m Capacity Capacity (000 teu) (000 teu) Capacity Utiliz. % (000 tons) Utiliz. % (000 teu) 850 222 405 266 848 240 1,000 650 650 650 650 650 650 650 650 650 650 650 850 144 263 173 551 156 242 181 428 88 98 234 500 500 500 500 500 500 500 500 500 500 500 500 121 91 214 44 49 117 971 144 91 214 263 173 551 44 49 117 156 91% 29% 81% 49% 38% 36% 55% 73% 78% 81% 76% 2,180 838 181 1,714 422 475 532 350 491 703 625 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 3,924 1,508 326 3,084 760 855 958 631 884 1,265 1,125 104% 61% 71% 75% 45% 35% 79% 22% 105% 51% 72%

Region and port

North Sumatera Belawan/Kuala Tanjung Teluk Bayur Pekanbaru Batam West Kalimantan Pontianak South Sumatera Palembang Panjang Jambi East-South Kalimantan Balikpapan Samarinda Banjarmasin South Sulawesi Makassar Java Tg. Perak Tg. Emas Tg. Priok Bali- NT Benoa The East Bitung Jayapura Merauke Ambon Pantoloan Sorong

850 1,870 495 3,308 225 -

750 1,000 750 1,250 650 650 650 650 650 650 650 650

638 1,870 371 4,135 146 -

210 235 494 800 41 86 102 58 30 85 3,411

500 500 500 500 500 500 500 500 500 500 500 500 500

105 117 247 400 21 43 51 29 15 42 1,705

743 1,987 618 4,535 21 146 43 51 29 15 42 11,003

61% 88% 93% 87% 28% 43% 65% 20% 53% 23% 52% 79%

735 7,281 577 5,845 206 1,187 128 152 851 573 226 26,272

1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800

1,323 13,105 1,038 10,521 371 2,137 231 274 1,533 1,031 406 47,289

88% 29% 68% 64% 3% 49% 28% 37% 20% 1% 79% 54%

Total above ports 9,579 971 9,298 Source: Nathan Associates Inc. as described in text.

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Tables 5-6 through 5-8 present the capacity analysis for the main Indonesian container ports for 2015, 2020, and 2030, respectively. By 2015, the growth in forecasted container traffic results seven Indonesian port requiring additional capacity. The largest increase is needed for Tanjung Priok that will need to increase capacity by 1.8 million TEU and Tanjung Perak that will need to add 0.8 million TEU of capacity 7. Belawan/Kuala Tanjung will also require a substantial capacity increase of 0.4 million TEU. In terms of meters of berth, Tanjung Priok will require an additional 1,200 m; Tanjung Perak, 800 m; and Belawan/Kuala Tanjung 400 m8. The ports of Tanjung Emas, Banjarmasin and Pekanbaru will also need to add container capacity in 2015; however, it seems likely that this could be accomplished by converting some under-utilized conventional general cargo berths for container operations. This is typically done by demolishing warehouses and sheds on the quay, strengthening the quay for mobile cranes and adding ancillary container handling equipment. It should be noted, that for this report, an engineering assessment of the feasibility of converting general cargo berths for container operations has not been conducted. The capacity analysis for 2020 shown in Table 3-7 assumes that the additional capacity needed for 2015 had been provided. It then shows that with the continued robust growth of container traffic, six ports again will need to expand container capacity to meet demand. As in 2015, the ports of Tanjung Priok, Tanjung Perak, Belawan/Kuala Tanjung and Tanjung Emas will need to bring on-line new container berths. In addition, the ports of Pekanbaru and Balikpapan will each now need to add a new berth of a t least 200 m. By 2030, 16 of Indonesian main container ports will need to provide additional capacity. This includes accommodation for 9.4 million TEU at Tanjung Priok, 4.3 million TEU at Tanjung Perak 1.9 million TEU at Belawan/Kuala Tanjung and 0.9 million TEU at Makassar.

While the names of the existing ports are used to identify the areas where additional container capacity is needed, the capacity may well be provided by the development and construction of a new port in the area. However, the location of new ports will be determined by a masterplan study that looks at several alternatives. Master plan studies for specific ports arebeyond the scope of this present study. While the requirements for capacity expansion are expressed here in terms of meters of berth, there will also need to be additional yard capacity and cargo handling equipment provided. These elements are included in the unit investment costs presented later in this chapter.

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Table 5-6 Capacity Analysis for Main Indonesian Container Ports, 2015
Region and port Container TPK Conventional Total Cont. Length TEU/ m Capacity Length TEU/ Capacity Total Capacity Capacity Length (000 teu) m (000 teu) (000 teu) Utiliz. % General Cargo Additional Conventional Cont. Capacity Tons/ Capacity Capacity TEU Berth m (000 tons) Utiliz. % (000s) (m)

North Sumatera Belawan/Kuala Tanjung Teluk Bayur Pekanbaru Batam West Kalimantan Pontianak South Sumatera Palembang Panjang Jambi East-South Kalimantan Balikpapan Samarinda Banjarmasin South Sulawesi Makassar Java Tg. Perak Tg. Emas Tg. Priok Bali- NT Benoa The East Bitung Jayapura Merauke Ambon Pantoloan Sorong

850 222 -

1300 845 845 845 845 845 975 845 845 845 845 845

1,105 188 342 225 827 203

242 217 428 88 98 234 156

650 650 650 650 650 650 650 650 650 650 650 650

157 141 278 57 64 152 102

1,262 188 141 278 342 225 827 57 64 152 304

138% 44% 101% 73% 57% 54% 71% 110% 117% 122% 76%

2,180 838 145 1,714 422 475 532 350 491 703 469

2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520

5,493 2,112 365 4,318 1,063 1,197 1,341 883 1,238 1,771 1,181

97% 57% 82% 70% 42% 32% 74% 21% 98% 47% 90%

475 2 6 11 34 -

400 36 200 156

405 266 848 240

850 1,870 495 3,308 225 -

1300 1300 1300 1625 845 845 845 845 845 845 845 845

1,105 2,431 644 5,376 190 -

210 235 687 800 41 86 102 58 30 85

650 650 650 650 650 650 650 650 650 650 650 650

137 152 446 520 27 56 66 37 20 55

1,242 2,583 1,090 5,896 27 190 56 66 37 20 55

72% 132% 103% 130% 42% 64% 98% 30% 80% 34% 78%

735 7,281 384 5,845 206 1,187 128 152 851 573 197

2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520 2,520

1,852 18,347 969 14,729 519 2,991 324 384 2,146 1,444 497

82% 27% 95% 59% 3% 46% 26% 34% 19% 1% 84%

828 35 1,776 3,165

800 192 1,200 2,985

Total above ports Source: Nathan Associates Inc. as described in text.

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Table 5-7 Capacity Analysis for Main Indonesian Container Ports, 2020
Container General Cargo Additional Cont. TPK Conventional Total Cont. Conventional Capacity Length TEU/ m Capacity Length TEU/ m Capacity Total Capacity Length Tons/ m Capacity Capacity TEU Berth (000 teu) (000 teu) Capacity Utiliz. % (000 tons) Utiliz. % (000s) (m) (000 teu) 1,250 222 405 266 848 200 240 1,625 1,056 1,056 1,056 1,056 1,056 1,625 1,056 1,056 1,056 1,056 1,056 2,031 234 428 281 1,378 211 254 242 217 428 88 98 234 156 813 813 813 813 813 813 813 813 813 813 813 813 197 176 348 71 79 190 127 2,228 234 176 348 428 281 1,378 71 79 402 380 116% 52% 121% 87% 68% 64% 64% 131% 140% 69% 90% 2,180 838 145 1,714 422 475 532 350 491 703 469 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 7,690 2,956 511 6,046 1,489 1,676 1,877 1,236 1,733 2,479 1,654 82% 49% 70% 59% 35% 28% 63% 18% 83% 40% 76% 363 37 22 32 400 200 200 -

Region and port

North Sumatera Belawan/Kuala Tanjung Teluk Bayur Pekanbaru Batam West Kalimantan Pontianak South Sumatera Palembang Panjang Jambi East-South Kalimantan Balikpapan Samarinda Banjarmasin South Sulawesi Makassar Java Tg. Perak Tg. Emas Tg. Priok Bali- NT Benoa The East Bitung Jayapura Merauke Ambon Pantoloan Sorong

850 2,670 495 4,508 225 -

1,625 1,625 1,625 2,031 1,056 1,056 1,056 1,056 1,056 1,056 1,056 1,056

1,381 4,339 804 9,157 238 -

210 235 687 800 41 86 102 58 30 85

813 813 813 813 813 813 813 813 813 813 813 813

171 191 558 650 33 70 83 47 24 69

1,552 4,529 1,362 9,807 33 238 70 83 47 24 69

86% 112% 123% 117% 50% 77% 117% 36% 95% 40% 93%

735 7,281 384 5,845 206 1,187 128 152 851 573 197

3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528 3,528

2,593 25,686 1,356 20,621 727 4,188 453 538 3,004 2,021 696

70% 23% 81% 51% 2% 39% 22% 29% 16% 1% 71%

558 315 1,634 12 2,972

400 200 1,000 2,400

Total above ports Source: Nathan Associates Inc. as described in text.

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Table 5-8 Capacity Analysis for Main Indonesian Container Ports, 2030
Region and port Container TPK Conventional Length TEU/ m Capacity Length TEU/ m Capacity (000 teu) (000 teu) General Cargo Total Cont. Conventional Total Capacity Length Tons/ m Capacity Capacity Capacity Utiliz. % (000 tons) Utiliz. % (000 teu) 2,878 234 420 348 494 281 1,378 71 291 434 419 167% 97% 94% 162% 109% 119% 119% 243% 71% 119% 152% 2,180 838 145 1,714 422 475 532 350 491 703 469 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 10,766 4,139 715 8,464 2,084 2,346 2,628 1,731 2,426 3,471 2,315 77% 46% 66% 56% 33% 26% 59% 17% 78% 38% 71% Additional Cont. Capacity TEU Berth (000s) (m)

North Sumatera Belawan/Kuala Tanjung Teluk Bayur Pekanbaru Batam West Kalimantan Pontianak South Sumatera Palembang Panjang Jambi East-South Kalimantan Balikpapan Samarinda Banjarmasin South Sulawesi Makassar Java Tg. Perak Tg. Emas Tg. Priok Bali- NT Benoa The East Bitung Jayapura Merauke Ambon Pantoloan Sorong

1,650 222 200 405 266 848 200 200 240

1,625 1,056 1,219 1,219 1,219 1,056 1,625 1,056 1,056 1,056 1,219 1,219

2,681 234 244 494 281 1,378 211 244 293

242 217 428 88 98 234 156

813 813 813 813 813 813 813 813 813 813 813 813

197 176 348 71 79 190 127

1,932 216 44 55 256 102 81 219

1,200 200 200 200 200 200 200 200

850 3,070 695 5,508 225 -

1,625 1,625 1,625 2,031 1,056 1,056 1,056 1,056 1,056 1,056 1,056 1,056

1,381 4,989 1,129 11,188 238 -

210 235 687 800 41 86 102 58 30 85

813 813 813 813 813 813 813 813 813 813 813 813

171 191 558 650 33 70 83 47 24 69

1,552 5,179 1,687 11,838 33 238 70 83 47 24 69

159% 182% 185% 179% 93% 143% 216% 66% 176% 75% 173%

735 7,281 384 5,845 206 1,187 128 152 851 573 197

4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939 4,939

3,630 35,960 1,899 28,870 1,017 5,863 634 753 4,205 2,829 975

66% 21% 76% 47% 2% 36% 21% 27% 15% 1% 67%

918 4,265 1,427 9,402 101 81 36 50 19,185

600 2,800 1,000 4,800 200 200 200 200 12,600

Total above ports Source: Nathan Associates Inc. as described in text.

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5.3 Strategic Port Development Plan Identified by Government and Pelindos


As stated in Section 5.2, the identification of port development requirement was initially based on an assessment of port capacity relative to forecasted traffic for the largest Indonesian ports. However, an analysis of capicty expansion requirements for all Indonesian ports was not possible within the framework of this study. Therefore the port development program proposed by Pelindo as main port operator in Indonesia also provides an indication of priority port investments consistent with government strategy. The government strategies which have been considered are: Prioritized Actions for Connectivity and Port Infrastructure Development to Support the Program of Indonesia Economic Corridor 2030, Blueprint of Multimodal Transport / Intermodal Transportation to support National Logistic System, Strategic port development target, such as promoting international hub port (in Kuala Tanjung, Batam, Bitung or Sorong), national heritage port and maritime centre (Sunda Kelapa) and tourism port (Benoa Bali) and terminal passenger/ cruise ship in Tanah Ampo Bali. The location of these strategic ports within the economic development corridors is presented in Appendix B. Figure 5-3 through 5-8 provides a summary of the port planning parameters and strategies for port devlopemts in each of the six economic development corridors through 2030. The summary includes forecasts of port traffic by type of cargo, design ships and productivity targets, strategic investments and key port business enterprises. These planning parameters and strategies were used to identify specific port development requiriements for the strategic ports. The port development requirements based theseplanning parameters and strategies are presented in Appendix C for the 100 strategic ports.

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Figure 5-3 Sumatra Economic Development Corridor: Port Planning Parameters and Strategies through 2030

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Figure 5-4 Java Economic Development Corridor: Port Planning Parameters and Strategies through 2030

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Figure 5-5 Kalimantan Economic Development Corridor: Port Planning Parameters and Strategies through 2030

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Figure 5-6 Bali and Nusa Tenggaraa Economic Development Corridor: Port Planning Parameters and Strategies through 2030

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Figure 5-7 Sulawesi Economic Development Corridor: Port Planning Parameters and Strategies through 2030

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Figure 5-8 Papua Kepulauan Maluku Economic Development Corridor: Port Planning Parameters and Strategies through 2030

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5.4 National Port Development Plan


This section describes determination of investment requirements based on port development plans indicated in Sections 5.2 and 5.3 and unit investment cost as stated below.

5.4.1 Unit Investment Costs


In this section, we first estimate unit investment costs for container port development and construction followed by the presentation of investment requirements by port and time period. For this report, we have adopted the unit costs for container terminal development and construction presented in the DWA 2010 IndII Technical Report on the Development of the National Port Master Plan. For that study, DGST developed rough cost estimates for the developments identified as being required for the major cargoes and ports. Costs were estimated for each port terminal facility (including directlyrelated infrastructure) for each port and cargo category by developing measures of physical requirements for port terminal facilities and applying unit construction costs. The unit costs were from the DGST records of construction costs from past projects and were crosschecked with some international unit costs from recent projects. The values are presented in constant US dollars of 2010. The differentiation in unit costs for specific ports resulted in the range of unit cost estimates shown In Table 5-9. As can be seen, the cost of land acquisition varies from a low of US$ 50,000 per hectare for Pelabuhan Ratu, a small fishing village in West Java, to US$ 500,000 per hectare for Tangerang near Jakarta. A major factor is the cost of reclamation that varies from US$ 100,000 per hectare in Palembang to US$ 5 million per hectare in Tanjung Perak. Container handling and equipment unit costs shown in Table 5-8 are for a package of equipment including gantry cranes and associated yard equipment. Table 5-9 Range of Unit Cost Estimates for Container Terminal Development and Construction (US$ of 2010)
No 1 Description Preparation & Earth Work Land Acquisition Reclamation Break Water Dredging Quay Side Concrete Slab Approach Trestle Trestle, 1 Unit Trestle, 2 Unit Trestle, 3 Unit Trestle, 4 Unit Trestle, 5 Unit Jetty/Wharf Dolphin Storage and Pavement Pavement Buildings Handling Equipment Unit Ha Ha m m3 m2 m2 m2 m2 m2 m2 m2 m2 m2 Ha m2 unit Min 50,000 100,000 1,000 7 2,500 15,000 2,500 1,500 2,500 1,400 1,500 2,000 Max 500,000 5,000,000 100,000 8 2,500 15,000 2,500 3,000 2,500 1,500 1,500 5,000

3 4 5

500,000 500,000 300 300 8,000,000 16,300,000

Total Cost

Source: IndII, 2010 Technical Report on the Development of the National Port Master Plan.

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The corresponding calculation of total direct unit cost per meter of berth for development and construction of container terminals is summarized in Table 5-9. These were calculated by dividing the total investment cost by the meters of berth constructed. Due to the cost of land reclamation, the highest total unit cost per meter of berth is at Tanjung Perak at US$ 872,000 per m followed by Balikpapan at US$ 832,000. Most other ports have total unit investment costs in the range of US$ 400,000 to US$ 600,000 per meter of berth. For ports that did not have specific investment costs estimates, unit costs were used from the reference port as shown in Table 5-10. Table 5-10 Unit Investment Cost for Indonesian Container Terminal Development (US$ 000 of 2010)
Region and Port North Sumatera Belawan/Kuala Tanjung Teluk Bayur Pekanbaru Batam West Kalimantan Pontianak South Sumatera Palembang Panjang Jambi East-South Kalimantan Balikpapan Samarinda Banjarmasin South Sulawesi Makassar Java Tg. Perak Tg. Emas Tg. Priok Bali- NT Benoa Reference port Cost per m of berth

Belawan Belawan Belawan Belawan Belawan Pontianak

546 546 546 546 546 501

Palembang Panjang Panjang

771 400 400

Balikpapan Pontianak Banjarmasin

832 501 602

Makasar

499

Tg. Perak Tg. Priok Tg. Priok

872 610 610

Tg. Perak

872

The East Bitung Bitung Jayapura Sorong Merauke Sorong Ambon Ambon Pantoloan Bitung Sorong Sorong Source: Nathan Associates Inc. as described in text.

656 407 407 439 656 407

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5.4.2 Investment Requirements


In this section, we present a summary of Indonesian port investment requirements for all cargo types through 2030. This is followed by a discussion of short-term improvements that can be implemented for Tanjung Priok and Tanjung Perak to relieve near-term capacity constraints before additional berths and terminals are constructed ad operational. The estimates of container investment requirements are based on those presented in Chapter 3, while those for other cargo types are extracted from the DWA, 2010 IndII Technical Report on the Development of the National Port Master Plan. 9 To determine total port investment requirement, port development program proposed by Pelindo and the government plan are also considered, which consistent with the government strategy as stated in Section 5.3. Table 5-11 provides the detailed breakdown of the total port investment requirement through 2030 by region and port as well as type of cargo. Figure 5-9 depicts the distribution of port sector investment requirements by economic corridor and period, while Figure 5-10 shows the distribution of port sector investment requirements by economic corridor and type of facility. Annex D provides the detailed breakdown of the total port investment requirement through 2030 by economic corridor and port as well as type of port facilities. Total investment of US$ 46,112 billion consist of US$ 12,114 billion (2011-2015), US$ 11.954 billion (2016-2020) and US$ 22.044 billion (2021-2030).

5.5 Port Sector Financing


It is estimated that about 68 percent of the total investment in new Indonesian port facilities could be provided by the private sector under long-term concession arrangements, mainly for commercial port terminal such as container terminal, bulk terminal and other commercial port facilities. The remaining 32 percent of the investment for land provision, common port infrastructure such as channel deepening and breakwaters, provision of uncommercial port terminal, rehabilitation and development of new small ports, will need to be provided by the public sector. Table 5-12 provides an indication of the amount of funding that may need to be generated by the private and public sectors during the 20112030 periods. Indonesia will have to mobilize somewhere between US$ 40-50 billion in port sector financing in order to meet the requirements for developing necessary port capacity through 2030. It is clear that the majority of the financing will have to be generated by the private sector. Public sector investment will need to be targeted towards strategic investment that can leverage private sector funding or provide port infrastructure for common use that should not be under the control of the private sector, such as port access channels and breakwaters. In this chapter, we examine options for generating private sector and public sector financing for port sector development.
9

The DWA 2010 IndII Technical Report on Development of the National Port Master Plan added a high contingency allowance of 40 percent on top of the direct investment costs. We have not included this contingency as the unit direct investment cost factors are deemed sufficient for preparation of an order of magnitude estimate of investment requirements.

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Table 5-11 Port Sector Investment by Economic Corridor and Port Facility 2011-2030 and Total 2011-2030 (US$ million, 2011)

Note: *) Other terminal: conventional (general cargo) terminal, car terminal, multipurpose terminal and passanger terminal

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Figure 5-9 Port Sector Investment by Economic Corridor and Period (US$ million)

Note: (US$ Mill.)

Figure 5-10 Port Sector Investment by Economic Corridor and Type of Port Facility 20112030 (US$ million)

Note: (US$ Mill.)

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Table 5-12 Indicative Funding Requirements by Private and Public Sector for Development of Port Facilities, 2011-2030

No

Stage

Total US$ million %

Government US$ million %

Private US$ million %

1 2 3

2011-2015 2016-2020 2021-2030

12,114 11,954 22,044

100 100 100

5,148 3,303 6,161

42.5 27.6 27.9

6,966 8,650 15,883

57.5 72.4 72.1

Total

46,112

100

14,613

31.7

31,499

68.3

Note: It is estimated that part of 2011-2015 private sector funding of US$ 12,114 million is financed by SOE (Pelindos) which is amount to US$ 3,521 millions. In some developed countries with abundant access to capital financial markets, a highly profitable project may have no difficulty attracting private sector investment. In these cases, traditional project financing vehicles such as loan syndications prepared with multi-lateral investment bank support may be obtained. Other vehicles include loans from international commercial banks and equity and debt participation by specialized infrastructure investment funds. However, in developing markets, attracting private sector financing and investment is often a critical hurdle to overcome due to perceptions about project, market and country risks, lack of depth of capital markets and competing requirements for scarce project financing.

5.5.1. Conditions for Attracting Private Sector Investment in Ports


A successful strategy for attracting private sector investment in Indonesian ports depends on an amalgam of general factors which influence the investment environment and specific policy, regulatory and institutional measures which governments must implement to provide an enabling environment. In this section, we identify attributes that are conducive to attracting private sector investment in ports. Generally, a countrys policy, legal and regulatory framework can be regarded as reflecting best practice if it meets the following criteria: A formal private sector investment policy is in place. An approved, documented policy is important in signaling governments commitment to develop a stable and attractive investment environment. This enhances the interest of potential investors and also influences their perception of risk positively. Comprehensive enabling laws. Legislation is an important vehicle to translate governments policy commitments into practice. Generally, countries should adopt a general private sector investment law or sector-specific laws in order to place its investment regime on a sound legal footing. 85

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Clear project identification and preparation procedures. Good project preparation is critical for attracting private sector investment. The law must require a project proposal to be thoroughly screened to verify that it is affordable, represents value for money and is financially- viable. A well prepared project will, in turn, once it is bid, attract the interest of qualified investors with sufficient technical and financial resources to implement a project successfully. Competitive bidding procedures. As a general rule, private sector investment in public ports must be competitively bid to ensure that government derives the full benefit from the competitive process in terms of price, services and quality. Additionally, provision should be made for equal treatment of potential investors, opportunity to challenge rules and bid awards and specific rules on unsolicited proposals. Clear identification of contracting authorities. The law must specifically identify the government entities which are empowered to enter into private sector investment arrangements. Freedom of contract. Legislation should not impose unnecessary restrictions on the ability of the parties to negotiate contractual terms. This is important to allow flexibility in the allocation of risks to ensure a financially efficient approach and secure the best possible value for money for government. Performance monitoring framework. Legislation must establish a clear management and monitoring framework. As many private sector port investments have a lifespan of many years or even decades, it is important that government allocate clear responsibility for monitoring implementation and contract compliance. At the same time, the private investor should be fully aware of the oversight procedures that will apply and of the frequency and nature of its performance monitoring obligations. Statutory authority for tariff collection (and/or payments by government). The ability to collect user charges or fees from port users is critical to the investors perception of the financial risks associated with a project (where applicable). The law must, therefore, expressly permit the private investor to collect tariffs (or alternatively, make clear provision for the investor to be reimbursed through payments by government). Clear rules on tariff regulation. Port sector investments can be long term in nature (20 30 years). Over this period there will be a need for regular adjustment in the tariffs or charges levied by the private party for the service. While procedures for tariff adjustment can be regulated by contract, the law must provide clear guidelines on how tariffs may be adjusted and what criteria will be applied, as discussed in Chapter 1. Comprehensive regulatory framework for safety and environmental regulation. As private sector investments in ports entail the provision of a public service, it is necessary that the public interest be protected through effective safety and environmental regulation. The private investor must be fully aware of which safety and environmental standards apply and how they will be enforced. Effective protection of investors rights. The law must protect the investor against arbitrary government action that may impact revenue flows, restrict access to finance or otherwise or deprive him of the benefit if his investment. This includes a requirement that the parties should be free to agree on appropriate methods of dispute resolution. A countrys membership to MIGA helps to provide such guarantee. Institutional capacity. The identification, preparation, procurement and management of private sector investments require a combination of high-level legal, 86

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financial and technical skills. The ability of government to manage its program is an important factor influencing investors both in their decisions to invest and in their perception of the project risks. Countries that have established dedicated private sector investment units in order to build capacity have generally been more successful in attracting private investment. Independent regulation. The law must provide for regulators that are sufficiently autonomous to ensure that regulatory decisions are not influenced by political interference or pressure from interest groups.

In the section that follows we examine Indonesias legal and regulatory framework that sets the environment for attracting private sector investment in ports.

5.5.2. Indonesias Legal Framework for Private Sector Investment in Ports


As Indicated in the Chapter 2, the Law introduces the concept of private sector participation, but fails to give strong direction to ensure a concerted effort in developing time-bound plans to secure greater private investment. PAs (and PMUs) face a particular challenge to develop capacity to implement private investment programs, especially given their limited capacity, uncertainty about the future role of Pelindos, and lack of clarity about their control over port land. Pelindos need to be restructured to assume the role of PBEs, but the Law fails to spell out how this is to be achieved. The investment required for development of new or expanded liquid bulk and dry bulk terminals in Indonesia would typically come from private sector businesses or associations of companies that seek to handle their own bulk cargo. However, several restrictive and inflexible provisions are likely to discourage private investors from investing in special terminals. These include: The short validity period of a special terminal permit. As mentioned in Chapter 2, five years is too short for investors to recover investments of this magnitude, especially given the risk that a permit may not be renewed. This risk is exacerbated by the fact that the legislation does not stipulate the specific grounds permits will not be renewed or provide for a transparent review procedure. The ban on handling non-proprietary cargoes. Large up-front investment in planning and preparation costs to obtain a construction license. The potential investor is required to invest in preparing engineering drawings for both land and water side facilities, construction plans, an environmental impact assessment and related documents without any guarantee that the license application will be favorably considered. Inflexible provisions governing construction. Regulations oblige the special terminal operator to complete construction no longer than one year after the license is issued10. This may well not be feasible in the case of many terminals. Constraints on operational flexibility. The operator must seek the Ministers approval to embark on 24 hour operations11.

Proprietary cargo handling is authorized for Own Interest Terminals12, but cargo handling can be extended to third party cargoes only after obtaining a concession from the Port
10

Art 119 (GR 61) GR 61 Art 126

11

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Authority or Port Management Unit.13 But the concession cannot be awarded unless it is shown additional capacity is needed14, among other requirements. However, this avenue could be a solution to enhancing competition as long as the Law regarding Pelindo jurisdiction is clarified.15 Certain port facilities such as container terminals that are often situated within a broader port with other cargo facilities typically have the government providing funding for shared items such as breakwaters, channel dredging and access, turning basins and road access. Depending on the circumstances, these items may represent 25-30 percent of container terminal development costs. On the other hand, specialized dry and liquid bulk terminals may often be developed separate from other port cargo facilities. As such, the government role may typically be limited to provision of road and land access. Passenger facilities such as a cruise or ferry terminal that serve multiple port users, typically need a greater degree of public sector participation often up to 50 percent of the total investment. As shown in Table 8-1, as much as 80 percent of the total port sector investment requirement of US$ 19.2 billion may be expected to be provided by the private sector. As long-term investments, private sector participation in port development and construction requires access to long-term financing. However, the lack of prior experience and expertise to assess port infrastructure projects and the maturity mismatch between assets and liabilities hinder Indonesian banks from providing the financing. While foreign port sector investors can get access to long-term financing in the capital markets, it is often difficult for potential Indonesian investors to get long-term financing from banks. Recognizing this problem, Indonesia established PT Indonesia Infrastructure Finance (PT IIF), a non-bank financial institution focused on providing long term funding for infrastructure projects. PT IIF was established on January 15, 2010 by the Ministry of Finance through PT SMI 16. The purpose of PT IIF is to enhance funding options for infrastructure projects by providing funding towards commercially feasible, mainly private, infrastructure projects through debt instruments, equity participation or infrastructure financing guarantee for credit enhancement. Its financing capacity is supported by equity commitments of its founding shareholders: PT SMI (Rp600bn); ADB (Rp400bn); IFC (Rp400bn) and DEG (Rp200bn) (a total of US$176mn). The fund may seek more cash infusions to ramp up its initial capital to Rp 2 trillion (US$220mn) 17.
12

GR 61 Art 139(1) GR 61 Art 140(1) GR 61 Art 140(2)(a)

13

14

15

The position of the Pelindos on this issue is perhaps characterized by one Pelindo principals comment, in referring to the plan for a new terminal, that competition can be accomplished if terminals compete only on the basis of service, as opposed to both cost and service. In fact, competing on only one or the other does not promote competition and attempts to justify monopoly pricing. Additionally, by definition, a monopoly operator has monopoly control over information provided to regulators. Applications for tariff increases can be justified on the basis of information provided by the operator, but regulators are hard-pressed to determine the accuracy of the information provided.
16

PT IIF via PERPRES No.9/2009 on Finance Institution and MOF Decree No.100/PMK.010 /2009 concerning Infrastructure Finance Company. 17 Morgan Stanley, Indonesia Infrastructure, A US$250bn Opportunity, May 2011.

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PT IIF will also receive ADB and World Bank loans, each worth the equivalent of Rp1 trillion (US$110mn). Debt issuance to raise another Rp 2 trillion (US$220mn) is planned. PT IIF can leverage its funding by taking on up to Rp 30 trillion (US$3.3bn) in debt, normally taking a 25 percent portion of the total cost for projects 18. In many developed countries, long-term financing can also be provided by the pension and insurance sectors. As Indonesia continues to develop its capital markets, these sectors may also serve as an alternative funding source. Inadequate project preparation has been an impediment for private investors. The ability to hire international consultants for feasibility studies and prepare bidding documents of international standards through a new facility developed by BAPPENAS should help in this arena. BAPPENAS Project Development Facility (PDF) is in operation and has an initial funding of US$33mn from ADB and the Dutch government. The function of PDF is to conduct project preparation with detailed feasibility studies and internationally recognized bidding documents before it is offered to the market. PDF funds project preparation and transaction under the various government contracting agencies.

5.5.3. Framework of Government Support and Guarantee


Due to the budgetary constraints, the interaction between public and private parties is governed by three sets of laws and regulations, namely PPP regulations, sector-specific regulations, and other general regulations governing business activities in Indonesia. There are four principal investment policies in this category: a. Government Policies on Infrastructure Provisions

Government aims to concentrate on (i) maintaining and upgrading the existing infrastructure, (ii) focusing on the development of infrastructure which are economically feasible but financially non-viable, (iii) providing subsidies and compensation for Public Service Obligation (PSO) in infrastructure services, and (iv) fulfilling the financing gap for infrastructure development, GoI will offer PPP Projects to the market. b. Regulations in the Acceleration of Infrastructure Development
Regulations for the acceleration of infrastructure development are shown in Table 5.13. PPP regulation mainly refers to Presidential Regulation No. 67/2005 concerning the Infrastructure Provision through Public-Private Partnership, as amended by Presidential Regulations No. 56/2011 and No. 13/2010 which allowed government to provide government support and guarantee. In addition, two other regulations on government guarantee refer to Presidential Regulation No. 78/2010 concerning Infrastructure Guarantee through Infrastructure Guarantee Fund and Ministry of Finance Regulation No. 260/2010 concerning the Implementation of Infrastructure Guarantee through Infrastructure Guarantee Fund. Further, based on the MoU between Ministry of Finance, Bappenas, and National Investment Agency (BKPM), Ministry of Finance will provide (i) provision of bridging fund
18

Ibid.

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through the Government Investment Unit (PIP), (ii) guarantee for infrastructure risks through the Indonesia Infrastructure Guarantee Fund/IIGF (PT Penjaminan Infrastruktur Indonesia/PT PII;, and (iii) project development services through PT Sarana Multi Infrastruktur (PT SMI). Table 5-13 Legal Basis for Private Sector Investment No. PSP / PPP Regulations Description

PPP Schemes and Guidelines


1 2 3 Presidential Regulation No. 67 Year 2005 Presidential Regulation No. 13 Year 2010 Presidential Regulation No. 56 Year 2011 Regulation of Minister of National Development Planning / Head of Bappenas No. 4 Year 2010 Regulation of Minister of Transportation No. PM 83 Tahun 2010 Regulation of Minister of Finance 38/PMK.01/2006 Presidential Regulation No. 78 Year 2010 Regulation of Minister of Finance No. 260/PMK.011/2010 Public Private Partnership in Provision of Infrastructure Amendment to Presidential Regulation No. 67 Year 2005 on Public Private Partnership in Provision of Infrastructure Second Amendment to Presidential Regulation No. 67 Year 2005 on Public Private Partnership in Provision of Infrastructure Operating Guidelines Manual for Public and Private Partnership in Provision of Infrastructure

Guidelines for Implementing Public Private Partnership in Provision of Transport Infrastructure

Risk Management, Government Support, and Guarantee


6 7 8 Implementing Guidelines for Risk Management and Mitigation for Provision of Infrastructure Infrastructure Guarantee in Public Private Partnership Project under the Indonesia Infrastructure Guarantee Fund Guidelines for Implementing Infrastructure Guarantee in Public Private Partnership Project

PPP Book, Organisation, and Procedures


9 Regulation of Minister of Public Private Partnership (PPP) Book National Development Planning / Head of Bappenas No. 3 Year 2009 Public Private Partnership Book, Sector of Transportation, 2010-2014, Ministry of Transportation (2010) Presidential Regulation No. 42 Committee for Policy for Acceleration of Infrastructure Year 2005 Provision (KKPPI) Presidential Regulation No. 12 Amendment to Presidential Regulation No. 42 Year 2005 on Year 2011 Committee for Policy for Acceleration of Infrastructure Provision (KKPPI) Regulation of Minister of Organisation and Working Procedures of the Committee of Coordinating Economic Affairs Policy for Acceleration of Infrastructure Provision (KKPPI) as Head of the Committee of Policy for Acceleration of Infrastructure Provision No. PER-01/M.EKON/05/2006 Regulation of Minister of Procedures and Criteria for Preparation of Priority List of Coordinating Economic Affairs Public Private Partnership (PPP) Infrastructure Project as Head of the Committee of Policy for Acceleration of Infrastructure Provision No.

10 11 12

13

14

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15

PER-3/M.EKON/06/2006 Regulation of Minister of Coordinating Economic Affairs as Head of the Committee of Policy for Acceleration of Infrastructure Provision No. No. PER-4/M.EKON/06/2006 Government Regulation No. 50 Year 2007 Presidential Regulation No. 36 Year 2005 Presidential Regulation No. 65 Year 2006 Regulation of Head of National Land Agency No. 3 Year 2007

Procedures for Evaluation of Public Private Partnership (PPP) in Provision of Infrastructure which Requires Government Support

Regional Cooperation
16 Procedures for Implementing Regional Cooperation

Land Acquisition
17 18 Land Acquisition for Implementing Development for Public Interest Amendment to Presidential Regulation No. 36/2006 on Land Acquisition for Implementing Development for Public Interest Implementing Guidelines for Presidential Regulation No. 36 Year 2005 on Land Acquisition for Implementing Development for Public Interest (as amended by Presidential Regulation No. 65 Year 2006 on Amendment to Presidential Regulation No. 36 Year 2005 on Land Acquisition for Implementing Development for Public Interest)

19

c. Role of the Indonesia Infrastructure Fund (IIF) in Provision of Financing in Infrastructure Indonesia Infrastructure Fund (IIF) is established to satisfy offering long term, mainly local currency and financing for infrastructure. To mobilise domestic currency financing of appropriate tenor, terms and price for creditworthy infrastructure projects by:

Using its good credit rating to borrow from domestic institutional investors and banks looking for long-term placements with risk margins higher than sovereign and large corporate offerings, and; Providing financial products which meet the needs of infrastructure PPP and wholly private projects.

d. Role of the Indonesia Infrastructure Guarantee Fund (IIGF) in Provision of Critical Support for Indonesias Infrastructure Development
IIGF is established to satisfy the following objectives: To provide a political risk guarantee for PPP Infrastructure Projects; To improve creditworthiness and quality of PPP infrastructure projects by; providing a credible guarantee on political risk; To improve the governance and transparency of guarantee provisions; To protect Government contingent liability vis--vis guarantees (ring-fencing the contingent liability exposure of the State Budget.

5.5.4. Possible Sources of Funding for Public Sector Investment19


The intention of Shipping Law No. 17 is that basic infrastructure investment in ports will be undertaken by the Port Authority. The new Indonesian Port Authorities, however, will be
19

Portions of this section are adapted from DWA, 2010 INDII Technical Report on Development of the National Port Master Plan.

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new institutions that will have little in the way of financial assets and no track record of operations. They will generate little cash flow and have essentially no borrowing capacity in their early years of existence. We therefore believe the only main source of infrastructure funding in the short term is the Government of Indonesia. Until the Port Authorities have established strong cash flows and balance sheets, the possible sources of funding for port infrastructure investment are: Government of Indonesia fiscal income. General Government of Indonesia borrowing. Loans from international financial institutions. Loans from bilateral financial institutions.

The first two sources of financing are in the category of Government general revenue. The second two loans from international and bilateral financial institutions involve commitments by the institutions and probably some form of sovereign guarantee. International and bilateral financing will probably also involve Government payments of principal and interest on the loans although if structured properly the Port Authorities may be able to service the loans out of their cash flow. Even if the Port Authorities do make the loan payments, however, it is still Government revenue because Port Authority income is defined as Government revenue in both the Law and GR 61 regarding Port Affairs. In the longer term sources of Port Authority infrastructure financing should evolve from increasingly strong financial statements of the Port Authorities. This will of course only happen if they are allowed to retain their earnings, including those from port authority charges (e.g. port dues), leases, and concession fees. If so, the Port Authorities could accumulate retained earnings and develop cash flow that can support borrowing.

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Chapter 6. Legal, Regulatory and Administrative Actions Needed


The course of the National Port Master Plan preparation highlighted areas in legislation, regulation, and policy that needed to be strengthened in order to facilitate Indonesias progress towards a competitive port system. The Government of Indonesia (GOI) appears to recognize this and has alluded to the need to revise legislation to accelerate the separation of the regulatory role of port authorities from the operating functions of the Pelindos. The GOI has also set December 2011 as the target date for the separation of these functional areas20. Nevertheless, the process of adopting a new Law may take longer and hence both interim and longer term actions are proposed here that may be undertaken to improve the Laws effectiveness. This requires a number of implementation actions in the following areas: Subsidiary regulations required by the Law on Shipping; Subsidiary regulations required under Government Regulation on Port Affairs; and Actions to support policy implementation.

6.1 Subsidiary Regulations under the Law on Shipping


In numerous areas, the Law on Shipping identifies a need for subsidiary rules to implement policies, programs and administrative actions. Some areas are now covered in GR 61, as shown in Table 6-1, while in other areas, subsidiary regulations still need to be promulgated.

6.2 Subsidiary Regulations Required under Government Regulation on Port Affairs


While GR 61 contains a wide-ranging set of provisions giving effect to the Law, it in turn mandates the Minister of Transport to issue regulations with regard to a long list of topics (see Table 6-2).

6.3 Policy Actions


Port policy requires certain actions for effective policy implementation (Table 6-3). The Ministry of Transport will assure that an integrated planning process is in place and that the port sector is fully represented in the Ministrys planning deliberations. Mechanisms also need to be developed to assure continuous open dialogue with stakeholders on the range of policy, planning, and regulatory issues. Finally, the ministerial regulations such that port authorities have management autonomy reflected in modernized port organizations. Pursuing the status of Indonesia public service organization21 for port authorities is an obvious remedy for achieving the needed autonomy.

20 21

See Master Plan for the Acceleration and Expansion of Indonesias Development 2011 2025, p 179. Badan Layanan Umum (Public Service Organization). A public service organization is a stand-alone organization within the public service with features that provide a measure of independence and financial self-sufficiency. This status would thus providing Port Authorities with the structure and autonomy enjoyed by the modernized port organizations previously described.

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Table 6-1 Regulatory Mandates for the Ministry in Shipping Law No. 17 of 2008
Regulations Proposed for Law on Shipping No. 1 2 3 4 5 6 7 Subject Matters to be Promulgated (Ministerial Regulations) Guidance for Commercial Port Tariff and Provincial and Local Port Tariff Design and Execution of Dredging and Reclamation / Certification of Service Providers Designation of Compulsory Pilotage Areas, Training and Examination of Pilots and Pilotage Operations Port Security Port Operations (ship repair, cargo transfer, towage, hazardous goods handling) Port Pollution Shipping and Port Information System Target Date 4th Quarter 2012 4th Quarter 2012 4th Quarter 2012 4th Quarter 2012 4th Quarter 2012 4th Quarter 2012 4th Quarter 2012 Remarks Article 110 of the Shipping Law Article 197 of the Shipping Law Article 198 of the Shipping Law Article 212 of the Shipping Law Article 216 of the Shipping Law Article 238 of the Shipping Law Article 272 of the Shipping Law

Table 6-2 Scope of Government Regulation No. 61 of 2009


No. 1 2 3 4 Subject Matters to be Promulgated (Ministerial Regulations Port Location Procedures Procedures for Formulation and Evaluation of Port Master Plans Procedures for Formulation and Evaluation of Port Working Areas and Port Interest Areas Procedures for Provision, Maintenance, Standards, and Specifications for Breakwaters, Port Basins, Navigational Channels, Road Networks and Port Security and Order Requirements and Procedures for Granting and Revoking Concessions Port Development Licensing Port Expansion Licensing Requirements and Procedures for Port Operations, Operational Improvement and Capacity Upgrades Licensing Procedures for Port Location, Construction and Operational Licenses for Dry Ports Requirements and Procedures for Special Terminals (location approval, construction and operational licenses, third party use, operational improvement, change of status to port, license revocation, transfer to government control) Time Target 4th Quarter 2012 4th Quarter 2012 4th Quarter 2012 2nd Quarter 2013 2nd Quarter 2012 2nd Quarter 2012 2nd Quarter 2012 2nd Quarter 2012 4th Quarter 2012 4th Quarter 2012 Remark Article 19 of GR 61/ 2009 Article 29 of GR 61 Article 36 of GR 61 Article 67 of GR 61 Article 78 of GR 61 Article 86 of GR 61 Article 93 of GR 61 Article 104 of GR 61 Article 109 of GR 61 Article 134 of GR 61

5 6 7 8 9 10

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No. 11 12

Subject Matters to be Promulgated (Ministerial Regulations Procedures for Approval of Own-Interest Terminals Type, Structure and Classification of Port Business Entity Tariff for Port Services, Mechanism for determining tariff for use of port land and waters Procedures for Determining Foreign Trade Status of Port and Special Terminals Procedures for Data Processing and Reporting and Preparation of Port Information System

Time Target 4th Quarter 2012 4th Quarter 2012 4th Quarter 2012 4th Quarter 2012

Remark Article 144 of GR 61 Article 148 of GR 61 Article 153 of GR 61 Article 161 of GR 61

13 14

Table 6-3 Actions for Policy Implementation


No. 1 Subject Matters to be Promulgated Establish stakeholder/port user committees in each port authority jurisdiction to serve as a consultative mechanism with the Ministry of Transport on policy formulation, review, and implementation Incorporate integrated planning considerations in port master plan guidelines Time Target 4th Quarter 2012 Remark Essential for port policy formulation, implementation, and review Essential for integrated planning, facilitation, and performance monitoring policy area Essential for integrated planning, facilitation, and performance monitoring policy area Essential for integrated planning, facilitation, and performance monitoring policy area Essential to tariff regulation policy area Essential to tariff regulation policy area Essential to tariff regulation policy area Essential to Promoting Port Sector Competition policy area Essential to Promoting Port Sector Competition policy area Essential to Promoting Port Sector Competition policy area Essential to Enhance Labor

4th Quarter 2012

Issue internal mandate in the Ministry to engage with other government agencies and port users to continuously review port sector performance and adopt practices to to eliminante constraints to good performance Issue a set of performance indicators for planning and performance monitoring purposes and establish procedure for publishing indicators Issuelight handed tariff policy Establish procedure for submitting tariffs for approval in the case of port authorities and PMUs and for review in the case of port business entities Develop and publish tariff and service agreement review process; review process to consider anticompetitive effects Consider development of memorandum of understanding with KPPU as to the monitoring and promotion of port sectror competition Incorporate consideration of competition effects in national and local master plan formulation and review. Introduce complaint and dispute resolution procedure for addressing complaints regarding tariffs and anticompetitive behavior Assess training requirements for DGST, port

1st Quarter 2012

4th Quarter 2012

5 6

4th Quarter 2012 4th Quarter 2012 4th Quarter 2012 4th Quarter 2012 4th Quarter 2012 2nd Quarter 2013 4th Quarter

10

11

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No.

Subject Matters to be Promulgated authorities/PMUs, labor cooperatives, and port business entities and develop strategy for meeting training needs Engage in memorandums of understanding with training centers, vocational institutes, and higher education institutions to promote port sector careers and the development of port-centric curriculums Engage in dialogue with labor coops to formulate incentives for increasing productivity Develop and implement strategy for recruitment and retention of women workers in the port sector Issue regulations which entrust port authorities with effective powers to oversee landside safety and security Promulgate framework setting forth port authority obligations for safety regulation compliance Promulgate port environmental protection code to be agreed to between Ministry and port authorities/PMUs Issue regulations to provide for harbor master with sufficient authority to manage and control pollution in ports Engage partners and enter into cooperative agreements to assure effective emergency response in the prot sector Establish autonomous status for port authorities and PMUs

Time Target 2012

Remark Competitiveness policy area

12

4th Quarter 2012

Essential to Enhance Labor Competitiveness policy area

13 14 15

2nd Quarter 2012 4th Quarter 2012 4th Quarter 2012 2nd Quarter 2012 4th Quarter 2012 4th Quarter 2012 2nd Quarter 2012 4th Quarter 2013

Essential to Enhance Labor Competitiveness policy area Essential to Enhance Labor Competitiveness policy area Essential to Supporting Effective Safety Regulation policy area Essential to Supporting Effective Safety Regulation policy area Essential to Supporting Effective Enironmental Regulation policy area Essential to Supporting Effective Enironmental Regulation policy area Essential to Supporting Effective Enironmental Regulation policy area Essential for effective management of port sector

16

17

18

19

20

6.4 Short-Term Initiatives for Facilitating Policy Implementation


While actions for policy implementation are what is needed to effect policy, there are also a number of initiatives, intended for the short-term, that can be implemented to facilitate policy implementation, generally focusing on port performance, including administration, labor, and development. These are identified in Table 6-4. Table 6-4 Near-term Initiatives for Facilitating Policy Implementation
No. 1 Subject Matters to be Promulgated Preparation of a Port Administration Operations Toolkit for Port Authority and Port Management Unit: Model Concession and Other Form of Agreements Model Licenses Tariff Financial Time Target 4th Quarter 2012 Remark Essential for empowering of Port Authority/PA and Port Management Unit/PMU

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No.

Subject Matters to be Promulgated Analysis Model Port Operational Performance Indicator System Intensify collaboration with higher education institutions and Pelindo training centers addressing topics related to: Planning analysis Trade forecasting methodology Operations analysis Capacity assessment Port market assessments and Tariff analysis

Time Target

Remark

4th Quarter 2012

Essential to enhance capabilities of PA, PMU and DGST personnel

Assessment of Port Labor Competitiveness Formulation of strategies for divesting small ports (addressing asset transfer, port management, and capacity building) Streamlining approval procedures and regulatory bottlenecks (in view of the scope of regulatory responsibilities of the Minister/DGST, PA/PMU, and regional governments) Assessment on transferring port land and water management rights to port authorities Option assessment and implementation of flexible and autonomous port authorities (including BLU/Badan Layanan Umum) Assessment of development of international hub ports (including Kuala Tanjung and Bitung) Design and implementation of a Port Information System

4th Quarter 2012 4th Quarter 2012

Essential to enhance labor performance

Essential to facilitate management of ports at regional level

4th Quarter 2012

Essential for ease of regulatory burden on the private sector and clarification of government agency responsibilities

4th Quarter 2012 2th Quarter 2013

Essential for empowering of Port Authority

Essential for empowering port authority

4th Quarter 2012 4th Quarter 2012

Essential for future port development

Essential for developing data base of port statistics, facilities, accesses, and services (a web based Port Information System that is integrated with the National Shipping Information System, incl. NSW applications)

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No. 10

Subject Matters to be Promulgated Prepare Port Master Plan and/or feasibility Study for PSP / PPP model projects Optimisation of traffic mitigation strategies with port operations requirements (including Tanjung Priok, Tanjung Perak, and Belawan ports)

Time Target 2nd Quarter 2013 2nd Quarter 2012

Remark Essential for developing PSP / PPP port model projects

11

Essential for smoothness of strategic port operations

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Appendix 1. Port Hierarchy


Appendix A-1 Port Hierarchy
No. Regency / Municipality Port Name 2011 Province : Nangroe Aceh Darussalam 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 Aceh Barat Aceh Jaya Banda Aceh Aceh Barat Daya Aceh Selatan Aceh Selatan Aceh Timur Langsa Aceh Utara Aceh Utara Pidie Sabang Sabang Simeulue Simeulue Aceh Selatan Aceh Singkil Aceh Singkil Aceh Singkil Meulaboh Calang Malahayati Susoh Tapaktuan Sibade Idi Kuala Langsa Kuala Beukah Lhokseumawe Sigli Sabang Ule Lheu Sibigo Sinabang P. Banyak P. Serok Singkil Gosong telaga Collector Collector Collector Regional Feeder Collector Local Feeder Local Feeder Collector Local Feeder Collector Local Feeder Main Collector Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Main Regional Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Collector Collector Local Feeder Regional Feeder Local Feeder Collector Collector Collector Regional Feeder Collector Local Feeder Local Feeder Collector Local Feeder Collector Local Feeder Main Collector Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Main Regional Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Collector Collector Local Feeder Regional Feeder Local Feeder Collector Collector Collector Regional Feeder Collector Local Feeder Local Feeder Collector Local Feeder Collector Local Feeder Main Collector Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Main Regional Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Collector Collector Local Feeder Regional Feeder Local Feeder Collector Collector Collector Regional Feeder Collector Local Feeder Local Feeder Collector Local Feeder Collector Local Feeder Main Collector Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Main Regional Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Collector Collector Local Feeder Regional Feeder Local Feeder Port Hierarchy 2015 2020 2030

Province: Sumatera Utara 1 Batubara Kuala Tanjung 2 3 4 5 6 7 8 9 10 11 12 Batubara Batubara Batubara Batubara Serdang Bedagai Serdang Bedagai Asahan Langkat Langkat Langkat Langkat Pangkalan Dodek Perupuk Tanjung Tiram Teluk Nibung Sialang Buah Pantai Cermin Tanjung Balai Asahan Pangkalan Susu Pulau KampaI Tanjung Pura Tapak Kuda

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No.

Regency / Municipality Langkat Deli Serdang Deli Serdang Deli Serdang Deli Serdang Deli Serdang Labuhan Batu Labuhan Batu Labuhan Batu Labuhan Batu Mandailing Natal Mandailing Natal Nias Nias Nias Nias Selatan Nias Selatan Nias Selatan Tapanuli Tengah Tapanuli Tengah Tapanuli Tengah Tapanuli Tengah Mandailing Natal

Port Name 2011

Port Hierarchy 2015 Local Feeder Main Local Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Collector Collector Collector Collector Collector Regional Feeder Regional Feeder Local Feeder Collector Regional Feeder Local Feeder Local Feeder Collector Collector Collector Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Collector 2020 Local Feeder Main Local Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Collector Collector Collector Collector Collector Regional Feeder Regional Feeder Local Feeder Collector Regional Feeder Local Feeder Local Feeder Collector Collector Collector Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Collector 2030 Local Feeder Main Local Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Collector Collector Collector Collector Collector Regional Feeder Regional Feeder Local Feeder Collector Regional Feeder Local Feeder Local Feeder Collector Collector Collector Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Collector

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Kuala SaraMain Belawan Pantai Labu Percut Rantau Panjang Tanjung Beringin Labuhan Bilik Sel Barombang Teluk. Lidong Tg. Sarang Elang Natal/Sikarakara Sikara-Kara Gunung Sitoli Lahawa Sirombu Mainlau Tanah Masa Mainlau Tello Teluk Dalam Barus Manduamas Sibolga Oswald Siahaan/ Labuhan Angin Batahan Bagan Siapi-api Panipahan Sinaboi Pancur Penyalaman Bandul Melibur Selat Panjang Tanjung Samak Tanjung Kedadu Batu Panjang Bengkalis

Local Feeder Main Local Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Collector Collector Collector Collector Collector Regional Feeder Regional Feeder Local Feeder Collector Regional Feeder Local Feeder Local Feeder Collector Collector Collector Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Collector

Province: Riau 1 Rokan Hilir 2 3 4 5 6 7 8 9 10 11 12 Rokan Hilir Rokan Hilir Rokan Hilir Rokan Hilir Kep.Meranti Kep.Meranti Kep.Meranti Kep.Meranti Kep.Meranti Bengkalis Bengkalis

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No.

Regency / Municipality Bengkalis Siak Bengkalis Siak Siak Siak Dumai Dumai Indragiri Hilir Indragiri Hilir Indragiri Hilir Indragiri Hilir Indragiri Hilir Indragiri Hilir Indragiri Hilir Indragiri Hilir Indragiri Hilir Indragiri Hilir Indragiri Hilir Indragiri Hilir Indragiri Hulu Palalawan Pekanbaru

Port Name 2011

Port Hierarchy 2015 Local Feeder Local Feeder Collector Local Feeder Collector Collector Main Collector Collector Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Collector Collector 2020 Local Feeder Local Feeder Collector Local Feeder Collector Collector Main Collector Collector Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Collector Collector 2030 Local Feeder Local Feeder Collector Local Feeder Collector Collector Main Collector Collector Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Collector Collector

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35

Buatan Sel Apit Sungai Pakning Kurau/ Sei Lalang Sungai Siak Tanjung Buton Dumai Tanjung Medang Kuala Enok (including Pembuangan) Kuala Gaung Kuala Mandah Kuala Raya Concong Luar Bekawan Luar Sungai Buluh Perigi Raya Pulau Kijang Sapat Tambilahan Sungai Guntung Rengat Penyalai Pekanbaru (including Perawang) Batam/ Batu Ampar Batam/ Sekupang Kabil Nogsa Pulau Bulan Pulau Sambu Tanjung Sauh P Buku Meral Pos Telaga Moro

Local Feeder Local Feeder Collector Local Feeder Collector Collector Main Collector Collector Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Collector Collector

Province: Riau 1 2 3 4 5 6 7 8 9 10 11 Batam Batam Batam Batam Batam Batam Batam Karimun Karimun Karimun Karimun Main Main Main Regional Feeder Regional Feeder Collector Local Feeder Local Feeder Local Feeder Collector Main Main Main Regional Feeder Regional Feeder Collector Main Local Feeder Local Feeder Local Feeder Collector Main Main Main Regional Feeder Regional Feeder Collector Main Local Feeder Local Feeder Local Feeder Collector Main Main Main Regional Feeder Regional Feeder Collector Main Local Feeder Local Feeder Local Feeder Collector

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No.

Regency / Municipality

Port Name 2011

Port Hierarchy 2015 Regional Feeder Collector Collector Local Feeder Collector Main Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Main Collector Collector Local Feeder Collector Local Feeder Local Feeder Collector Local Feeder Collector Local Feeder Collector Collector Local Feeder Collector Regional Feeder Collector Local Feeder Local Feeder Local Feeder Collector Collector Regional Feeder Local Feeder 2020 Regional Feeder Collector Collector Local Feeder Collector Main Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Main Collector Collector Local Feeder Collector Local Feeder Local Feeder Collector Local Feeder Collector Local Feeder Collector Collector Local Feeder Collector Regional Feeder Collector Local Feeder Local Feeder Local Feeder Collector Collector Regional Feeder Local Feeder 2030 Regional Feeder Collector Collector Local Feeder Collector Main Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Main Collector Collector Local Feeder Collector Local Feeder Local Feeder Collector Local Feeder Collector Local Feeder Collector Collector Local Feeder Collector Regional Feeder Collector Local Feeder Local Feeder Local Feeder Collector Collector Regional Feeder Local Feeder

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41

Karimun Karimun Karimun Karimun Karimun Karimun Lingga Lingga Lingga Lingga Lingga Bintan Bintan Bintan Bintan Bintan Bintan Kep. Anambas Kep.Anambas Kep. Anambas Natuna Natuna Natuna Natuna Natuna Natuna Natuna Natuna Natuna Natuna

Pasir Panjang Sikumbang Kundur Tanjung Batu Urung/Tg. Berlian Malarko Tg. Balai Karimun Dabo Singkep Daik Lingga Panuba Sei Buluh Senayang Lagol Lobam Sei Kolak Kijang Tanjung Uban Tambelan Tanjung Berakit Letung Matak Tarempa Anoa Natuna Kakap Natuna Midai Ranai Maro Sulit Sedanau Selat Lampa Serasan Udang Natuna Belion Belida Hang Tuah Batu Enam Tanjung Pinang

Regional Feeder Collector Collector Local Feeder Collector Main Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Main Collector Collector Local Feeder Collector Local Feeder Local Feeder Collector Local Feeder Collector Local Feeder Collector Collector Local Feeder Collector Regional Feeder Collector Local Feeder Local Feeder Local Feeder Collector Collector Regional Feeder Local Feeder

42 Natuna 43 Natuna 45 Tg. Pinang 46 Tg. Pinang Province: Sumatera Barat 1 2 Kep. Mentawai Kep. Mentawai

Muara Siberut Muara Sikabaluan

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No.

Regency / Municipality

Port Name 2011

Port Hierarchy 2015 Regional Feeder Collector Collector Local Feeder Collector Collector Main Regional Feeder Regional Feeder Collector Regional Feeder Regional Feeder Collector Regional Feeder Local Feeder Collector Local Feeder Regional Feeder Local Feeder Regional Feeder Collector Regional Feeder Local Feeder Local Feeder Local Feeder Collector Collector Regional Feeder Regional Feeder Local Feeder Collector Regional 2020 Regional Feeder Collector Collector Local Feeder Collector Collector Main Regional Feeder Regional Feeder Collector Regional Feeder Regional Feeder Collector Regional Feeder Local Feeder Collector Local Feeder Regional Feeder Local Feeder Regional Feeder Collector Regional Feeder Local Feeder Local Feeder Local Feeder Collector Collector Regional Feeder Regional Feeder Local Feeder Collector Regional 2030 Regional Feeder Collector Collector Local Feeder Collector Collector Main Regional Feeder Regional Feeder Collector Regional Feeder Regional Feeder Collector Regional Feeder Local Feeder Collector Local Feeder Regional Feeder Local Feeder Regional Feeder Collector Regional Feeder Local Feeder Local Feeder Local Feeder Collector Collector Regional Feeder Regional Feeder Local Feeder Collector Regional

3 4 5 6 7 8 9 10 11 12 13 14

Kep. Mentawai Kep. Mentawai Kep. Mentawai Kep. Mentawai Kep. Mentawai Padang Padang Pasaman Barat Pasaman Barat Pasaman Barat Pesisir Selatan Pesisir Selatan

Pokai Sikakap Siuban Tapak/Baka Tua Pejat Muara Padang Teluk Bayur Air Bangis Sasak Teluk Tapang Muara Haji Carocok Painan

Regional Feeder Collector Collector Local Feeder Collector Collector Main Regional Feeder Regional Feeder Collector Regional Feeder Regional Feeder Collector Regional Feeder Local Feeder Collector Local Feeder Regional Feeder Local Feeder Regional Feeder Collector Regional Feeder Local Feeder Local Feeder Local Feeder Collector Collector Regional Feeder Regional Feeder Local Feeder Collector Regional

Province: Jambi 1 2 3 4 5 6 7 8 9 10 11 12 13 14 1 2 3 4 Jambi Jambi Jambi Tg. Jabung Barat Tg. Jabung Timur Tg. Jabung Timur Tg. Jabung Timur Tg. Jabung Timur Tg. Jabung Timur Tg. Jabung Timur Tg. Jabung Timur Tg. Jabung Timur Tg. Jabung Timur Tg. Jabung Timur Kaur Kaur Bengkulu Selatan Muko - Muko Jambi Pangkal Duri Sungai Jembat Kuala Tungkal Air Hitam Laut Kuala Mandahara Lambur Luar Muara delli Muara Sabak Nipah Panjang Pamusiran Simbur Naik Sungai Lokan Talang Duku Pulau Baai Bintuhan/ Linau Malakoni/P. Enggano Muko-Muko

Province: Bengkulu

Province: Bangka Belitung 1 Bangka Belinyu 2 Bangka Lok. Palembang

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No.

Regency / Municipality

Port Name 2011 Feeder Regional Feeder Collector Collector Regional Feeder Collector Regional Feeder Collector Collector Collector Regional Feeder Regional Feeder Regional Feeder Collector Regional Feeder Regional Feeder Regional Feeder Main

Port Hierarchy 2015 Feeder Regional Feeder Collector Collector Regional Feeder Collector Regional Feeder Collector Collector Collector Regional Feeder Regional Feeder Regional Feeder Collector Regional Feeder Regional Feeder Regional Feeder Main 2020 Feeder Regional Feeder Collector Collector Regional Feeder Collector Regional Feeder Collector Collector Collector Regional Feeder Regional Feeder Regional Feeder Collector Regional Feeder Regional Feeder Regional Feeder Main 2030 Feeder Regional Feeder Collector Collector Regional Feeder Collector Regional Feeder Collector Collector Collector Regional Feeder Regional Feeder Regional Feeder Collector Regional Feeder Regional Feeder Regional Feeder Main

3 4 5 6 7 8 9 10

Bangka Bangka Barat Bangka Tengah Bangka Tengah Bangka Selatan Bangka Selatan Belitung Timur Belitung

Sungai Liat Muntok Pangkal Balam Sungai Salam Tanjung Sadai Toboali Manggar Tanjung Pandan

11 Belitung Tanjung Batu Province: Sumatera Selatan 1 2 3 4 5 6 7 8 Banyu Asin Banyu Asin OKI OKI OKI OKI OKI Palembang Tanjung Api-Api Karang Agung Sungai Lumpur Sungai Lais Kuala Duabelas Sungai Batang Sugihan Boom Baru/ Palembang Teluk Betung Krui Kalianda Lagundi P. Sambesi Panjang Way Seputih Kuala Penat Labuhan Maringgai Way Penat Way Sekampung Masuji

Province: Lampung 1 Bandar Lampung 2 3 4 5 6 7 8 9 10 11 12 Lampung Barat Lampung Selatan Lampung Selatan Lampung Selatan Lampung Selatan Lampung Tengah Lampung Timur Lampung Timur Lampung Timur Lampung Timur Lampung Utara

Collector Local Feeder Local Feeder Regional Feeder Regional Feeder Main Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Regional

Collector Local Feeder Local Feeder Regional Feeder Regional Feeder Main Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Regional

Collector Local Feeder Local Feeder Regional Feeder Regional Feeder Main Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Regional

Collector Local Feeder Local Feeder Regional Feeder Regional Feeder Main Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Regional

104

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality

Port Name 2011 Feeder

Port Hierarchy 2015 Feeder Collector Regional Feeder Regional Feeder Regional Feeder Local Feeder Collector Regional Feeder Regional Feeder Regional Feeder Collector Regional Feeder Local Feeder Regional Feeder Collector Collector Main Regional Feeder Regional Feeder Local Feeder Regional Feeder Collector Main Collector Collector Collector Local Feeder Local Feeder Collector Collector Collector 2020 Feeder Collector Regional Feeder Regional Feeder Regional Feeder Local Feeder Collector Regional Feeder Regional Feeder Regional Feeder Collector Regional Feeder Local Feeder Regional Feeder Collector Collector Main Regional Feeder Regional Feeder Local Feeder Regional Feeder Collector Main Collector Collector Collector Local Feeder Local Feeder Collector Collector Collector 2030 Feeder Collector Regional Feeder Regional Feeder Regional Feeder Local Feeder Collector Regional Feeder Regional Feeder Regional Feeder Collector Regional Feeder Local Feeder Regional Feeder Collector Collector Main Regional Feeder Regional Feeder Local Feeder Regional Feeder Collector Main Collector Collector Collector Local Feeder Local Feeder Collector Collector Collector

13 14 15 16 17 18 19

Tanggamus Tanggamus Tulang Bawang Tulang Bawang Tulang Bawang Tulang Bawang Tulang Bawang

Kota Agung P. Tabuan Teladas Manggala Sungai Burung Tulang Bawang Kelumbayan

Collector Regional Feeder Regional Feeder Regional Feeder Local Feeder Collector Regional Feeder Regional Feeder Regional Feeder Collector Regional Feeder Local Feeder Regional Feeder Collector Collector Main Regional Feeder Regional Feeder Local Feeder Regional Feeder Collector Main Collector Collector Collector Local Feeder Local Feeder Collector Collector Collector

Province: Jawa Barat 1 2 3 4 5 6 7 8 9 10 11 Bekasi Ciamis Cirebon Cirebon Indramayu Indramayu Indramayu Subang Karawang Sukabumi Sukabumi Muara Gembong Pengandaran Cirebon Muara Gebang Eretan Indramayu Balongan Pamanukan Cilamaya Pelabuhan Ratu Muara Citewis

Province: Banten 1 2 3 4 5 6 7 8 Lebak Pandeglang Serang Cilegon Cilegon Serang Serang Tangerang M. Binuangan Labuhan Anyer Lor Banten Cigading Karangantu Bojonegara Kresek/ Kronjo Muara Dadap Kalibaru Muara Baru Sunda Kelapa

9 Tangerang Province: DKI Jakarta 1 2 3 Jakarta Utara Jakarta Utara Jakarta Utara

105

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality

Port Name 2011 Tg. Priok (including Tarumanegara, Marunda Center, FRSU LNG (Bekasi)) Marunda Muara Angke P.Kelapa/Kep. Seribu Batang Brebes Luwut Tanjung Intan Jepara Karimun Jawa Juwana Wiradesa Pemalang Rembang Sluke Tanjung Emas Tegal Kendal Kamal Sepulu Glimandangi Telaga Biru Banyu Wangi/Boom Tanjung Wangi Bawean Gresik Masalembo Brondong Branta Pasean

Port Hierarchy 2015 2020 2030

Jakarta Utara

Main

Main

Main

Main

5 6 7

Jakarta Utara Jakarta Utara Kep. Seribu

Collector Regional Feeder Collector

Collector Regional Feeder Collector

Collector Regional Feeder Collector

Collector Regional Feeder Collector

Province: Jawa Tengah 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Batang Brebes Brebes Cilacap Jepara Jepara Pati Pekalongan Pemalang Rembang Rembang Semarang Tegal Kendal Collector Regional Feeder Local Feeder Main Regional Feeder Regional Feeder Collector Local Feeder Local Feeder Regional Feeder Collector Main Collector Collector Collector Local Feeder Local Feeder Collector Regional Feeder Collector Collector Collector Local Feeder Collector Collector Regional Feeder Collector Regional Feeder Local Feeder Main Regional Feeder Regional Feeder Collector Local Feeder Local Feeder Regional Feeder Collector Main Collector Collector Collector Local Feeder Local Feeder Collector Regional Feeder Collector Collector Collector Local Feeder Collector Collector Regional Feeder Collector Regional Feeder Local Feeder Main Regional Feeder Regional Feeder Collector Local Feeder Local Feeder Regional Feeder Collector Main Collector Collector Collector Local Feeder Local Feeder Collector Regional Feeder Collector Collector Collector Local Feeder Collector Collector Regional Feeder Collector Regional Feeder Local Feeder Main Regional Feeder Regional Feeder Collector Local Feeder Local Feeder Regional Feeder Collector Main Collector Collector Collector Local Feeder Local Feeder Collector Regional Feeder Collector Collector Collector Local Feeder Collector Collector Regional Feeder

Province: Jawa Timur 1 Bangkalan 2 Bangkalan 3 Bangkalan 4 Bangkalan 5 6 7 8 9 10 11 12 Banyu Wangi Banyu Wangi Gresik Gresik Gresik Lamongan Pamekasan Pamekasan

106

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Pasuruan Probolinggo Probolinggo Sampang Sampang Situbondo Situbondo Situbondo Situbondo Sumanep Sumanep Sumanep Sumenep Sumenep Sumanep Sumenep

Port Name 2011

Port Hierarchy 2015 Collector Collector Collector Collector Local Feeder Regional Feeder Local Feeder Local Feeder Collector Local Feeder Regional Feeder Collector Local Feeder Collector Collector Local Feeder 2020 Collector Collector Collector Collector Local Feeder Regional Feeder Local Feeder Local Feeder Collector Local Feeder Regional Feeder Collector Local Feeder Collector Collector Local Feeder 2030 Collector Collector Collector Collector Local Feeder Regional Feeder Local Feeder Local Feeder Collector Local Feeder Regional Feeder Collector Local Feeder Collector Collector Local Feeder

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28

Pasuruan Probolinggo/ Tg.Tembaga Paiton Sampang/ Tadan Tanlok Panarukan Besuki Jangkar Kalbut Gayam Kaliangat Kangean P. Raas Sapudi Sepekan Keramaian Tanjung Perak (including Teluk Lamong, Socah dan Tanjung Bulupandan) Tuban Tg. Awar-awar Pacitan Kusamba Nusa Lembongan Nusa Penida Buleleng Celukan Bawang Pos Sangsit Gilimanuk Benoa Sanur Labuhan Lalang Padang Baai Labuan

Collector Collector Collector Collector Local Feeder Regional Feeder Local Feeder Local Feeder Collector Local Feeder Regional Feeder Collector Local Feeder Collector Collector Local Feeder

29

Surabaya

Main

Main

Main

Main

30 31

Tuban Tuban

32 Pacitan Province: Bali 1 2 3 4 5 6 7 8 9 10 11 12 Klungkung Klungkung Klungkung Buleleng Buleleng Buleleng Jembrana Denpasar Denpasar Karangasem Karangasem Karangasem

Regional Feeder Regional Feeder Collector Local Feeder Local Feeder Collector Regional Feeder Collector Regional Feeder Collector Main Local Feeder Local Feeder Collector Collector

Regional Feeder Regional Feeder Collector Local Feeder Local Feeder Collector Regional Feeder Collector Regional Feeder Collector Main Local Feeder Local Feeder Collector Collector

Regional Feeder Regional Feeder Collector Local Feeder Local Feeder Collector Regional Feeder Collector Regional Feeder Collector Main Local Feeder Local Feeder Collector Collector

Regional Feeder Regional Feeder Collector Local Feeder Local Feeder Collector Regional Feeder Collector Regional Feeder Collector Main Local Feeder Local Feeder Collector Collector

107

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality

Port Name 2011

Port Hierarchy 2015 2020 2030

Amuk/Tanah ampo Province: Nusa Tenggara Barat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Bima Bima Bima Dompu Dompu Dompu Lombok Barat Lombok Barat Lombok Barat Lombok Barat Lombok Barat Lombok Timur Lombok Timur Lombok Timur Lombok Utara Sumbawa Barat Sumbawa Barat Sumbawa Barat Sumbawa Mataram Bima Sape Waworada Dompu/ Campi Calabahi Kempo Lembar Pemenang/Tanju ng Belang Senggigi Bangko -Bangko Labuhan Haji Labuhan Lombok Tg. Luar Carik Labuhan Lalar Badas Benete Alas Ampenan Collector Regional Feeder Regional Feeder Regional Feeder Regional Feeder Local Feeder Collector Regional Feeder Collector Local Feeder Local Feeder Regional Feeder Collector Local Feeder Regional Feeder Local Feeder Collector Collector Local Feeder Collector Regional Feeder Local Feeder Collector Local Feeder Collector Local Feeder Collector Local Feeder Collector Collector Local Feeder Collector Collector Regional Feeder Regional Feeder Regional Feeder Regional Feeder Local Feeder Collector Regional Feeder Collector Local Feeder Local Feeder Regional Feeder Collector Local Feeder Regional Feeder Local Feeder Collector Collector Local Feeder Collector Regional Feeder Local Feeder Collector Local Feeder Collector Local Feeder Collector Local Feeder Collector Collector Local Feeder Collector Collector Regional Feeder Regional Feeder Regional Feeder Regional Feeder Local Feeder Collector Regional Feeder Collector Local Feeder Local Feeder Regional Feeder Collector Local Feeder Regional Feeder Local Feeder Collector Collector Local Feeder Collector Regional Feeder Local Feeder Collector Local Feeder Collector Local Feeder Collector Local Feeder Collector Collector Local Feeder Collector Collector Regional Feeder Regional Feeder Regional Feeder Regional Feeder Local Feeder Collector Regional Feeder Collector Local Feeder Local Feeder Regional Feeder Collector Local Feeder Regional Feeder Local Feeder Collector Collector Local Feeder Collector Regional Feeder Local Feeder Collector Local Feeder Collector Local Feeder Collector Local Feeder Collector Collector Local Feeder Collector

Province: Nusa Tenggara Timur 1 2 3 4 5 6 7 8 9 10 11 12 Alor Alor Alor Alor Alor Alor Ende Ende Flores Timur Flores Timur Flores Timur Flores Timur Baranusa Kabir Kalabahi Kolana Atapupu Paitoko Maritaing Pulau Ende Ippi Waiwadan Waiwarang Ende

108

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Flores Timur Flores Timur Lembata Lembata Lembata Lembata Lembata Sabu Timur Rote Ndao Rote Ndao Rote Ndao Rote Ndao Rote Ndao Rote Ndao Kupang Kupang Kupang Kupang Manggarai Barat Manggarai Barat Manggarai Timur Manggarai Barat Manggarai Manggarai Manggarai Ngada Ngada Ngada Sikka Sikka Sikka Sikka Sikka Sumba Barat Sumba Barat

Port Name 2011

Port Hierarchy 2015 Local Feeder Regional Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Collector Local Feeder Collector Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Main Collector Collector Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Regional Feeder Collector Local Feeder Regional Feeder Regional Feeder Local Feeder Regional 2020 Local Feeder Regional Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Collector Local Feeder Collector Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Main Collector Collector Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Regional Feeder Collector Local Feeder Regional Feeder Regional Feeder Local Feeder Regional 2030 Local Feeder Regional Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Collector Local Feeder Collector Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Main Collector Collector Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Regional Feeder Collector Local Feeder Regional Feeder Regional Feeder Local Feeder Regional

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47

Dulionang Menanga Balauring Larantuka Leoleba Lembata Lamakera Biu Batutua Baa/Rote Ndao Oelaba Papele/ P. Baru Papela Naikliu Raijua Seba Tenau/ Kupang Komodo Labuhan Bajo Mborong Nangalili Reo Robek Waiwole Aimere Maropokot Maumbawa Wuring Maumere Maurole Piru Palue Rua Waikelo

Local Feeder Regional Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Collector Local Feeder Collector Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Main Collector Collector Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Regional Feeder Collector Local Feeder Regional Feeder Regional Feeder Local Feeder Regional

109

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Daya

Port Name 2011 Feeder Local Feeder Collector Collector

Port Hierarchy 2015 Feeder Local Feeder Collector Collector 2020 Feeder Local Feeder Collector Collector 2030 Feeder Local Feeder Collector Collector

Sumba Timur Baing Sumba Timur Waingapu Timor Tengah 50 Wini Utara Province: Kalimantan Barat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Ketapang Ketapang Ketapang Ketapang Pontianak Pontianak Kubu Raya Sambas Sambas Sambas Kubu Utara Kubu Utara Kayong Utara Kayong Utara Kayong Utara Air Hitam Kendawangan Ketapang Teluk Melano/Teluk Batang Pontianak Mempawah Paloh/Sakura Jaruju Sambas Sintete Singkawang Teluk Air Karimata Tg. Satai Sukadana

48 49

Collector Collector Collector Collector Main Regional Feeder Collector Regional Feeder Collector Collector Collector Collector Regional Feeder Local Feeder Local Feeder

Collector Collector Collector Collector Main Regional Feeder Collector Regional Feeder Collector Collector Collector Collector Regional Feeder Local Feeder Local Feeder

Collector Collector Collector Collector Main Regional Feeder Collector Regional Feeder Collector Collector Collector Collector Regional Feeder Local Feeder Local Feeder

Collector Collector Collector Collector Main Regional Feeder Collector Regional Feeder Collector Collector Collector Collector Regional Feeder Local Feeder Local Feeder

Province: Kalimantan Tengah Kumai Kota Waringin 1 (including Barat Bumiharjo) Kota Waringin 2 Pangkalan Bun Barat Kota Waringin 3 Natal Kuini Barat 4 Sukamara Sukamara 5 Sukamara Kuala Jelay Kota Waringin 6 Kuala Pembuang Timur Kota Waringin Pegatan 7 Timur Mendawai Kota Waringin 8 Sampit Timur Kota Waringin 9 Samuda Timur 10 Kapuas Behaur 11 Kapuas Kuala Kapuas

Collector Collector Regional Feeder Collector Local Feeder Regional Feeder Regional Feeder Main Regional Feeder Local Feeder Collector

Collector Collector Regional Feeder Collector Local Feeder Regional Feeder Regional Feeder Main Regional Feeder Local Feeder Collector

Collector Collector Regional Feeder Collector Local Feeder Regional Feeder Regional Feeder Main Regional Feeder Local Feeder Collector

Collector Collector Regional Feeder Collector Local Feeder Regional Feeder Regional Feeder Main Regional Feeder Local Feeder Collector

110

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Kapuas Kapuas Palangka-raya Palangka-raya Palangka-raya Barito Selatan Barito Selatan Seruyan

Port Name 2011

Port Hierarchy 2015 Collector Collector Regional Feeder Regional Feeder Regional Feeder Regional Feeder Regional Feeder Collector Main Local Feeder Collector Collector Collector Main Local Feeder Collector Regional Feeder Regional Feeder Collector Collector Main Collector Local Feeder Collector Collector Collector Collector Collector Regional Feeder Collector Collector 2020 Collector Collector Regional Feeder Regional Feeder Regional Feeder Regional Feeder Regional Feeder Collector Main Local Feeder Collector Collector Collector Main Local Feeder Collector Regional Feeder Regional Feeder Collector Collector Main Collector Local Feeder Collector Collector Collector Collector Collector Regional Feeder Collector Collector 2030 Collector Collector Regional Feeder Regional Feeder Regional Feeder Regional Feeder Regional Feeder Collector Main Local Feeder Collector Collector Collector Main Local Feeder Collector Regional Feeder Regional Feeder Collector Collector Main Collector Local Feeder Collector Collector Collector Collector Collector Regional Feeder Collector Collector

12 13 14 15 16 17 18 19

Pulang Pisau Batanjung Kereng Bengkirai Teluk Sebangau Kahayan Kelanis Rangga Ilung

Collector Collector Regional Feeder Regional Feeder Regional Feeder Regional Feeder Regional Feeder Collector Main Local Feeder Collector Collector Collector Main Local Feeder Collector Regional Feeder Regional Feeder Collector Collector Main Collector Local Feeder Collector Collector Collector Collector Collector Regional Feeder Collector Collector

Teluk Sigintung/ Seruyan Province: Kalimantan Selatan 1 Banjarmasin Banjarmasin Gunung Batu 2 Kotabaru Besar 3 Kotabaru Stagen 4 5 6 7 8 9 10 11 12 Kotabaru Kotabaru Kotabaru Tanah Bumbu Tanah Bumbu Tanah Bumbu Tanah Bumbu Tanah Laut Tanah Laut Kota Baru Sebuku Mekar Putih Satui/ Sel Danau Simp. Empat Batu Licin Pegatan Sungai Loban Kintap Pelaihari

Province: Kalimantan Timur 1 Balikpapan Balikpapan 2 Balikpapan Kampung Baru 3 4 5 6 7 8 9 10 11 Berau Berau Bontang Bontang Bontang Nunukan Bulungan Tarakan Kutai Kertanegara Talisayan Tanjung Redep Lhok Tuan Tanjung Laut Tanjung Santan Nunukan Tanjung Selor Tarakan Kuala Semboja

111

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Kutai Kertanegara Kutai Timur Kutai Timur Kutai Timur Nunukan Paser Paser Samarinda Penajam Paser Utara Tana Tidung Tana Tidung

Port Name 2011

Port Hierarchy 2015 Regional Feeder Collector Collector Regional Feeder Collector Collector Collector Collector 2020 Regional Feeder Collector Collector Regional Feeder Collector Collector Collector Collector 2030 Regional Feeder Collector Collector Regional Feeder Collector Collector Collector Collector

12 13 14 15 16 17 18 19

Sabulu Sangata Maloy Sangkulirang Sungai Nyamuk Tanah Grogot Teluk Adang Samarinda (including Palaran, Tanjung Isuy) Penajam Paser Pulau Bunyu Sesayap

Regional Feeder Collector Collector Regional Feeder Collector Collector Collector Collector

20 21 22

Collector Collector Local Feeder Regional Feeder Main. Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder

Collector Collector Local Feeder Regional Feeder Main. Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder

Collector Collector Local Feeder Regional Feeder Main. Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder

Collector Collector Local Feeder Regional Feeder Main. Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder

Province: Sulawesi Utara 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Bitung Bitung Minahasa Minahasa Utara Minahasa Utara Minahasa Utara Minahasa Utara Minahasa Utara Minahasa Utara Minahasa Utara Minahasa Utara Minahasa Selatan Minahasa Selatan Minahasa Selatan Minahasa Selatan B. Mangondow B. Mangondow B. Mangandow B. Mangondow Utara B. Mangondow Utara Air Tembaga Bitung Kora-Kora Montehage Munte/ Likupang Barat Gangga Bangka Talise Nain Wori Likupang Amurang Kema Belang Tumbak Ketabunan Molibagu Torosik Labuhan Uki Boroko

112

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Manado Kep Siau Togalondang Biaro Kep Siau Togalondang Biaro Kep Siau Togalondang Biaro Kep Siau Togalondang Biaro Kep Siau Togalondang Biaro Kep. Sangihe Kep. Sangihe Kep. Sangihe Kep. Sangihe Kep. Sangihe Kep. Sangihe Kep.Sangihe Kep.Sangihe Kep.Sangihe Kep.Sangihe Kep.Sangihe Kep.Sangihe Kep.Sangihe Kep.Sangihe Kep.Sangihe Kep.Talaud Kep.Talaud Kep.Talaud Kep. Talaud Kep. Talaud Kep. Talaud Kep. Talaud Kep. Talaud Kep. Talaud Kep. Talaud

Port Name 2011

Port Hierarchy 2015 Collector Local Feeder Regional Feeder Collector Regional Feeder Local Feeder Collector Collector Collector Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Collector Regional Feeder Local Feeder Collector Collector 2020 Collector Local Feeder Regional Feeder Collector Regional Feeder Local Feeder Collector Collector Collector Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Collector Regional Feeder Local Feeder Collector Collector 2030 Collector Local Feeder Regional Feeder Collector Regional Feeder Local Feeder Collector Collector Collector Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Collector Regional Feeder Local Feeder Collector Collector

21 22

Manado Biaro

Collector Local Feeder Regional Feeder Collector Regional Feeder Local Feeder Collector Collector Collector Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Collector Regional Feeder Local Feeder Collector Collector

23

Sawang

24

Pehe

25

Tagulandang

26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

Ulu Siau Marore Petta Tahuna Tamako Kawaluso Kep. Talaud Makalehi Pananaru Para Kahakitang Kalama Lipang Bukide Matutuang Kawio Gemeh Kokorotan Intata Beo Essang Karatung Lirung Mangarang Marampit Melangoane

113

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Kep. Talaud Kep. Talaud Kep. Talaud

Port Name 2011

Port Hierarchy 2015 Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Collector Collector Local Feeder Regional Feeder Local Feeder Collector Collector Collector Collector Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Collector Local Feeder Regional Feeder Local Feeder Local Feeder Collector Regional Feeder Collector Local Feeder Regional 2020 Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Collector Collector Local Feeder Regional Feeder Local Feeder Collector Collector Collector Collector Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Collector Local Feeder Regional Feeder Local Feeder Local Feeder Collector Regional Feeder Collector Local Feeder Regional 2030 Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Collector Collector Local Feeder Regional Feeder Local Feeder Collector Collector Collector Collector Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Collector Local Feeder Regional Feeder Local Feeder Local Feeder Collector Regional Feeder Collector Local Feeder Regional

52 53 54

Miangas Dapalan Rainis Lemito Marisa Papayato Anggrek Bumbulan/ Tambalo Gentuma Gorontalo Kwandangan Tolinggula Tilamuta Wongosari

Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Collector Collector Local Feeder Regional Feeder Local Feeder Collector Collector Collector Collector Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Collector Local Feeder Regional Feeder Local Feeder Local Feeder Collector Regional Feeder Collector Local Feeder Regional

Province: Gorontalo 1 Pohuwato 2 3 4 5 6 7 8 9 10 11 Pohuwato Pohuwato Gorontalo Gorontalo Gorontalo Gorontalo Gorontalo Gorontalo Bualemo Bualemo

Province: Sulawesi Tengah 1 Banggai Banggai 2 Banggai Bunta 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 Banggai Banggai Banggai Banggai Banggai Banggai Banggai Banggai Morowali Morowali Morowali Morowali Morowali Morowali Buol Buol Buol Buol Parigi Moutong Parigi Moutong Luwuk Pagimana Sabang/P. Peleng Salakan Tinakin Laut Dodung Liana Banggai Tangkiang Bungku Kolonedale Wosu Menuai Sambalagi Baturube Kumaligon Lokodidi Palele Leok Moutong Parigi

114

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality

Port Name 2011 Feeder

Port Hierarchy 2015 Feeder Collector Regional Feeder Collector Collector Main Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder 2020 Feeder Collector Regional Feeder Collector Collector Main Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder 2030 Feeder Collector Regional Feeder Collector Collector Main Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder

23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51

Donggala Donggala Donggala Donggala Palu Poso Tojo Una-Una Tojo Una-Una Tojo Una-Una Tojo Una-Una Toli-Toli Toli-Toli Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan

Donggala Sabang Wani Ogoamas Pantoloan Poso Ampana Wakai Popoli Mantangisi Ogotua Toli-toli Lampio (I,II,III) Posisi/Banggai Lokotoy Matanga Kapela Gonggong Bungin (III,IV) Gasuang Ndindibung MbuangMbuang Panapat/ Mandel Panapat/ Dendek Panapat/ Konalu Panapat Kokondang (I,II) Toropot Paisubebe

Collector Regional Feeder Collector Collector Main Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder

115

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan Banggai Kepulauan

Port Name 2011

Port Hierarchy 2015 Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder 2020 Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder 2030 Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder

52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76

Kaukes Timpaus Kasuari Sonit (I,II) Komba-Komba Oluno Bulagi Lupamenteng Bolonan Lolantang Palapat Lumbilumbia Batangono Lalengan Tataba Popisi Tolulos Kindandal Liang Boyomoute Salakan (I,II) Bulungkobit Bungin (I,II) Bakalan Tinangkung

Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder

116

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality

Port Name 2011

Port Hierarchy 2015 Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder 2020 Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder 2030 Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder

Banggai Tebing Kepulauan Banggai 78 Kalumbatan Kepulauan Banggai 79 Mansalean Kepulauan Banggai 80 Paisulamo Kepulauan Banggai 81 Alasan Kepulauan Banggai 82 Padingtian Kepulauan Banggai 83 Talas Kepulauan Banggai 84 Lipulalongo Kepulauan Banggai 85 Lalong Kepulauan Banggai 86 Sasabobok Kepulauan Banggai 87 Tabulan Kepulauan Banggai 88 Mbeleang Kepulauan Banggai 89 Kalupapi Kepulauan Banggai 90 Togong Sagu Kepulauan Banggai 91 Tadono Kepulauan Banggai 92 Lantibun Kepulauan Banggai 93 Ponding - Poding Kepulauan Province: Sulawesi Selatan 1 Bantaeng Bantaeng Awarange/ 2 Barru Barru 3 Barru Pancana 77 4 5 6 7 8 9 10 11 Barru Barru Bone Bone Bone Bone Bone Bone Labuange Garongkong Bajoe Barebbo/ Kading Uloe/Cendrana Wartuo Tujuh-Tujuh Pattirobajo

Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder

Local Feeder Collector Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Regional Feeder Regional

Local Feeder Collector Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Regional Feeder Regional

Local Feeder Collector Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Regional Feeder Regional

Local Feeder Collector Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Regional Feeder Regional

117

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality

Port Name 2011 Feeder

Port Hierarchy 2015 Feeder Local Feeder Local Feeder Collector Local Feeder Collector Collector Local Feeder Local Feeder Collector Local Feeder Local Feeder Regional Feeder Regional Feeder Regional Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Collector Collector Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Collector Collector Local Feeder Local Feeder 2020 Feeder Local Feeder Local Feeder Collector Local Feeder Collector Collector Local Feeder Local Feeder Collector Local Feeder Local Feeder Regional Feeder Regional Feeder Regional Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Collector Collector Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Collector Collector Local Feeder Local Feeder 2030 Feeder Local Feeder Local Feeder Collector Local Feeder Collector Collector Local Feeder Local Feeder Collector Local Feeder Local Feeder Regional Feeder Regional Feeder Regional Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Collector Collector Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Collector Collector Local Feeder Local Feeder

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43

Bone Bulukumba Bulukumba Bulukumba Jeneponto Luwu Luwu Luwu Luwu Luwu Luwu Timur Luwu Timur Luwu Timur Luwu Timur Luwu Utara Pangkajene Kepulauan Pangkajene Kepulauan Pangkajene Kepulauan Pangkajene Kepulauan Pangkajene Kepulauan Takalar Palopo Pinrang Pinrang Pinrang Pinrang Selayar Selayar Selayar Selayar Selayar Selayar

Lapangkong Bira/ Tanah Beru Bulukumba Kajang Jeneponto Malili Larompong Ulo-Ulo/Belopa Siwa Maccini Baji Wotu Lampia Belantang Tanjung Mangkasa Coppasolo Biringkasi S.Pangkajene P.Balang Lompo P. Kalukalukuang P.Sapuka Galesong/ takalar Palopo Kayuanging Marabombang Langnga Ujung Lero Bonerate Jampea Pammatata Selayar Bone Lohe Appatana

Local Feeder Local Feeder Collector Local Feeder Collector Collector Local Feeder Local Feeder Collector Local Feeder Local Feeder Regional Feeder Regional Feeder Regional Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Collector Collector Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Collector Collector Local Feeder Local Feeder

118

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Selayar Selayar Selayar Selayar Selayar Selayar Selayar Sinjai Sinjai Sinjai Makasar Makasar Wajo Wajo Wajo Wajo

Port Name 2011

Port Hierarchy 2015 Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Main Collector Regional Feeder Regional Feeder Local Feeder Local Feeder Collector Collector Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Regional 2020 Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Main Collector Regional Feeder Regional Feeder Local Feeder Local Feeder Collector Collector Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Regional 2030 Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Main Collector Regional Feeder Regional Feeder Local Feeder Local Feeder Collector Collector Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Regional

44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59

Batongmata Padang Benteng/ Rauf Rahman Kayuadi Kalatoa Biropa P.Jinto Burung Leo Kambuna Sinjai/ Larea-rea Makassar Paotere Wajo Jalang/ Cendrane Doping Danggae Pare-Pare Capa Ujung Liukang

Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Main Collector Regional Feeder Regional Feeder Local Feeder Local Feeder Collector Collector Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Regional

60 Pare-pare 61 Pare-pare 62 Pangkajene Province: Sulawesi Barat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Majene Majene Majene Majene Majene Mamuju Mamuju Mamuju Mamuju Mamuju Mamuju Mamuju Utara Polewali Mandar Polewali Mandar Polewali Mandar

Majene Mulunda Palipi Pamboang Sendana Belang-belang Budong-Budong Kaluku Mamuju Sampaga Tapalang Pasang Kayu Campalagiang Polewali Tinambung

16 Morowali Ulunambo Province: Sulawesi Tenggara 1 Buton Banabungi

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TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality

Port Name 2011 Feeder

Port Hierarchy 2015 Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Collector Local Feeder Collector Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder 2020 Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Collector Local Feeder Collector Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder 2030 Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Collector Local Feeder Collector Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36

Buton Buton Buton Buton Buton Buton Buton Buton Buton Buton Buton Bau-Bau Bombana Bombana Bombana Kendari Kendari Kendari Kendari Kendari Konawe Utara Konawe Utara Konawe Utara Konawe Utara Konawe Selatan Kolaka Kolaka Kolaka Kolaka Kolaka Kolaka Kolaka Kolaka Utara Kolaka Utara Kolaka Utara

Siompu Dongkala Wamengkoli Lawele Keledupa Labuhan Belanda Lasalimu Maligano Papeliya Waha/ Usuku Wanci Bau--Bau Sikeli Kasipute Boepinang Bungkutoko Kendari Langara Munse Torobulu Molawe Konawe Matarape Lameluru Lapuko Dawi-dawi Kolaka Wollo Pomalaa Rante Angin Tangke Tada Toari Lasusua Malombo lo Oloho

Local Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Collector Local Feeder Collector Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Regional Feeder

120

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No.

Regency / Municipality Kolaka Utara Muna Muna Muna Muna Muna

Port Name 2011

Port Hierarchy 2015 Collector Local Feeder Collector Local Feeder Regional Feeder Regional Feeder Regional Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder 2020 Collector Local Feeder Collector Local Feeder Regional Feeder Regional Feeder Regional Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder 2030 Collector Local Feeder Collector Local Feeder Regional Feeder Regional Feeder Regional Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder

37 38 39 40 41 42

Watunohu Borange Raha Tempo Ereke Telaga Raya

Collector Local Feeder Collector Local Feeder Regional Feeder Regional Feeder Regional Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder

Province:: Maluku Utara 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Tidore Kep. Tidore Kep. Halmahera Barat Halmahera Barat Halmahera Barat Halmahera Barat Halmahera Utara Halmahera Utara Halmahera Utara Halmahera Utara Halmahera Utara Halmahera Utara Halmahera Utara Halmahera Utara Halmahera Utara Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Gita/Payahe Soa-siu Matui Ibu Kedi/ Loloda Jailolo (Including Ujung Pulau) Tobelo Bobane Igo Salimuli Tolonuwo Dama Kao P. Amutu Besar Galela Bataka Pigaraja Loleo Jaya Pelita Taneti Lelei Lata-lata Busua Laluin Makian

121

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Selatan Halmahera Tengah Halmahera Tengah Halmahera Tengah Halmahera

Port Name 2011

Port Hierarchy 2015 2020 2030

25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49

Dolik Fulai Doro Kotiti Tawa Gane Dalam Posi-Posi Gane Wosi Bisui Obilatu Mandopolo Pasipalele Wayaloar Wayauwa Labuha Babang Laiwui Saketa Pulau Kayoa Guruaping Kayoa Mafa P. Gebe Patani Weda Mesa

Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Regional

Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Regional

Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Regional

Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Regional

122

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Tengah Halmahera Tengah Halmahera Tengah Halmahera Tengah Halmahera Timur Halmahera Timur Halmahera Timur Halmahera Timur Halmahera Timur Halmahera Timur Halmahera Timur Halmahera Timur Halmahera Timur Pulau Morotai Pulau Morotai Pulau Morotai Pulau Morotai Pulau Morotai Ternate Ternate Ternate Ternate Ternate Ternate Ternate Ternate Tidore Kepulauan Tidore Kepulauan Tidore Kepulauan

Port Name 2011 Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Main Regional Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector

Port Hierarchy 2015 Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Main Regional Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector 2020 Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Main Regional Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector 2030 Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Main Regional Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector

50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77

Banemo Paniti Gemia Manitingting Lolasita Akelamo Sepo Dorosagu Subaim Buli Wasile Bicoli Daruba Bere - Bere Posi-Posi Wayabula Sopi Ternate/A.Yani Bastiong Dufa-Dufa Sulamadaha Hiri Miyau Moti Tifure Galala Guruaping Oba Mangole

123

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Tidore Kepulauan Tidore Kepulauan Tidore Kepulauan Tidore Kepulauan Tidore Kepulauan Tidore Kepulauan Tidore Kepulauan Tidore Kepulauan Tidore Kepulauan Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula Kepulauan Sula

Port Name 2011

Port Hierarchy 2015 Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Regional Feeder Main Local Feeder Local Feeder 2020 Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Regional Feeder Main Local Feeder Local Feeder 2030 Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Regional Feeder Main Local Feeder Local Feeder

78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105

Goto Rum Maitara Mare Sofifi Somadehe Maidi/Lifofa Loleo Lola Sanana Bobong Dofa Penu Samuya Loseng Pas Ipa Nggele Lede Bapenu Tikong Jorjoga Malbufa Kabau Fuata Waitina Baruakol Gela Falabisahaya

Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Regional Feeder Main Local Feeder Local Feeder

Province: Maluku 1 Ambon Maluku 2 Tenggara Barat 3 Maluku

Ambon Adault Larat

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TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Tenggara Barat Maluku Tenggara Barat Maluku Tenggara Barat Maluku Tenggara Barat Maluku Tenggara Barat Maluku Barat Daya Maluku Barat Daya Maluku Barat Daya Maluku Barat Daya Maluku Barat Daya Maluku Barat Daya Maluku Barat Daya Maluku Barat Daya Maluku Barat Daya Maluku Barat Daya Maluku Barat Daya Maluku Tengah Maluku Tengah Maluku Tengah Maluku Tengah Maluku Tengah Maluku Tengah Maluku Tengah Maluku Tengah Maluku Tengah Maluku Tengah Maluku Tenggara Maluku Tenggara Maluku Tenggara

Port Name 2011

Port Hierarchy 2015 2020 2030

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Saumlaki Seira Mahaleta Sera Dawera/ Dawelor Hila/Romang Ilwaki Kaiwatu/Moa Serwaru Tepa Wonreli Wulur Marsela Serwaru Lirang Wolu Kabisadar Hitu Kobisonta Amahai Saparua/Haria Tulehu Wahai Banda Naira Kesui Tehoru Elat Kur

Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Collector Local Feeder Collector Regional Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder

Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Collector Local Feeder Collector Regional Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder

Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Collector Local Feeder Collector Regional Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder

Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Collector Local Feeder Collector Regional Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder

125

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Seram Bagian Timur Seram Bagian Timur Seram Bagian Timur Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Seram Bagian Barat Kepulauan Aru Kepulauan Aru Tual Buru Selatan Buru Selatan Buru Selatan Buru Selatan Buru Selatan Buru Selatan

Port Name 2011

Port Hierarchy 2015 Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder 2020 Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder 2030 Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder

32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58

Bula Geser Bemo Upisera Kairatu Kataloka/ Ondor Lakor Waimeteng Piru Taniwel Hatu Piru Pelita Jaya Lokki Waisala Wailey Manipa Toyando Waisarisa Larokis Batu Goyang/ Kalar-kalar Dobo Tual Air Buaya Leksula Namrole Wamsisi Tifu Fogi

Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Local Feeder Regional Feeder Regional Feeder Local Feeder Local Feeder Regional Feeder

126

TECHNICAL PAPER TO SUPPORT NPMP DECREE

No.

Regency / Municipality Buru Selatan Buru Buru Buru Buru

Port Name 2011

Port Hierarchy 2015 Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Collector Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder 2020 Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Collector Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder 2030 Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Collector Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder

59 60 61 62 63

Ambalau Namlea Waplau Ilath Bilorro Adijaya Etna Kaimana Kanoka Lobo P.Adi Senini Susunu Bomberai Fak-fak Karas Kokas Sagan Selasi Weti Saukorem Arandai Babo Bintuni Monokwari Oransbari Ransiki Wasior Windesi Fatanlap Kabare Kalobo Sailolof Saonek Pam Waigama Arar Makbon Mega Muarana

Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Collector Collector Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder

Province: Papua Barat 1 Kaimana 2 Kaimana 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 Kaimana Kaimana Kaimana Kaimana Kaimana Kaimana Fak-fak Fak-fak Fak-fak Fak-fak Fak-fak Fak-fak Fak-fak Tambrauw Teluk Bintuni Teluk Bintuni Teluk Bintuni Monokwari Monokwari Monokwari Teluk Wondana Teluk Wondana Raja Ampat Raja Ampat Raja Ampat Raja Ampat Raja Ampat Raja Ampat Raja Ampat Sorong Sorong Sorong Sorong

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No.

Regency / Municipality Sorong Sorong Sorong Sorong Sorong Sorong Sorong Sorong Selatan Sorong Selatan Sorong Selatan

Port Name 2011

Port Hierarchy 2015 Local Feeder Local Feeder Local Feeder Local Feeder Main Local Feeder Main Collector Local Feeder Collector Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder 2020 Local Feeder Local Feeder Local Feeder Local Feeder Main Local Feeder Main Collector Local Feeder Collector Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder 2030 Local Feeder Local Feeder Local Feeder Local Feeder Main Local Feeder Main Collector Local Feeder Collector Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder

36 37 38 39 40 41 42 43 44 45

Kasim Kiamano Salawati Sausapor Seget Sele Sorong Inawatan Konda Taminabuan

Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Main Collector Local Feeder Collector Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder

Province: Papua 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Boven Digul Boven Digul Boven Digul Boven Digul Boven Digul Boven Digul Boven Digul Boven Digul Boven Digul Boven Digul Biak Numfor Biak Numfor Biak Numfor Biak Numfor Biak Numfor Biak Numfor Biak Numfor Supiori Supiori Supiori Supiori Supiori Supiori Sarmi Sarmi Sarmi Sarmi Sarmi Sarmi Sarmi Prabu Alaska Asiki Anggamburan Cabang Tiga Eci Gantenteri Tanah merah Tanah miring Kaptel Mindiptanah Biak Korem Bosnik Wardo Manggari Padaido Warsa Janggerbun Kameri Korido Miosbipondi Numfor Marsram Armopa Bagusa Kasonaweja Sarmi Takar Teba Wakde

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Regency / Municipality Sarmi Jayapura Jayapura Jayapura Jayapura Jayapura Jayapura Asmat Asmat Asmat Asmat Asmat Asmat Asmat Asmat Mappi Mappi Mappi Mappi Merauke Merauke Merauke Merauke Merauke Merauke Merauke Merauke Merauke Merauke Merauke Mimika Mimika Mimika Mimika Mimika Nabire Nabire Nabire Nabire Nabire

Port Name 2011

Port Hierarchy 2015 Local Feeder Collector Local Feeder Collector Main Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Main Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder 2020 Local Feeder Collector Local Feeder Collector Main Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Main Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder 2030 Local Feeder Collector Local Feeder Collector Main Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Main Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder

31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 70

Apauwer Depapre Betaf Demta Jayapura Metabor Yanma Agats Atsy Jipawer Pirimapun Sawaerma Yamas Yaosakor Kamur Kepi Bade Bayun Moor Arambu Bian Bulaka Bupul Kimaan Kumbe Merauke Muting Okaba Semanggi Senggo Pomako I & II (including Timika) Ammapare Hiripau Kokonao fvg Kuatisora Nabire/Tlk.Kimi Napan Nusa Wanggur

Local Feeder Collector Local Feeder Collector Main Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Main Local Feeder Local Feeder Local Feeder Local Feeder Collector Collector Local Feeder Local Feeder Local Feeder Local Feeder Collector Local Feeder Local Feeder Local Feeder

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No.

Regency / Municipality Nabire Yapen Yapen Yapen Yapen Yapen Yapen Yapen Yapen Waropen Waropen Waropen Waropen

Port Name 2011

Port Hierarchy 2015 Collector Local Feeder Local Feeder Collector Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder 2020 Collector Local Feeder Local Feeder Collector Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder 2030 Collector Local Feeder Local Feeder Collector Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder

71 72 73 74 75 76 77 78 79 80 81 82 83

Wapoga Ambai Ansus Dawai Poom Serui Sumberbaba Wainapi Owe Waren Kalpuri Barapasi P Nau

Collector Local Feeder Local Feeder Collector Local Feeder Regional Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder Local Feeder

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Appendix B: Strategic Ports by Economic Corridor


Appendix B-1 Strategic Ports within Sumatra Economic Corridor

Appendix B-2 Strategic Ports within Java Economic Corridor

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Appendix B-3 Strategic Ports within Kalimantan Economic Corridor

Appendix B-4 Strategic Ports within Sulawesi Economic Corridor

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Appendix B-5 Strategic Ports within Bali Nusa Tenggara Economic Corridor

Appendix B-6 Strategic Ports within Papua Kepulauan Maluku Economic Corridor

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Appendix C: Port Development Plan

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Appendix C-1 Port Physical Development Plan by Economic Corridor and Type of Port Facilities, 2011-2030

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138

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139

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Appendix C-2 Port Sector Investment by Economic Corridor and Type of Facility, 2011-2030 (US$ millions)

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151