Jakarta, Sept 24, 2016 (Antara) - Several Indonesian seaports are notorious
for their long cargo dwelling time due to inefficiencies, poor
infrastructure and illegal levies that lead to logistics costs
multiplying for businesses.
Dwelling time is measured from the moment the container is unloaded,
until it leaves the gates of the container terminal.
Due to port inefficiencies and poor port-hinterland connectivity, many basic commodities in eastern Indonesia are twice as expensive as in Java.
Due to port inefficiencies and poor port-hinterland connectivity, many basic commodities in eastern Indonesia are twice as expensive as in Java.
For instance, the dwelling time in the country's main Tanjung Priok
Seaport handling over two-thirds of Indonesia's entire international
trade, was twice as long as that in Malaysia and five times longer than
Singapore.
Other Indonesian ports take even longer to move containers in and out
of their vicinities. Producers pass those higher costs on to consumers.
Shortening long dwelling times and introducing simple payment systems
can help make the port, and hence businesses, run more smoothly.
President Joko Widodo (Jokowi), whose ambition is to make Indonesia a
global maritime axis, has since the beginning of his administration,
instructed that the dwelling time be reduced, particularly in major
seaports such as Tanjung Priok located in North Jakarta, Tanjung Perak
in Surabaya, and Balawan in North Sumatra.
