Transportation Ministry, Pelindo sign two port concession agreements

By Romel S. Gurky

The Ministry of Transportation has signed two strategic concession agreements with state-owned port operator PT Pelabuhan Indonesia (Persero) (Pelindo) aimed at improving port services and increasing state revenue from the maritime sector.

The agreements were signed during a ceremony at the Ministry of Transportation headquarters in Jakarta on Wednesday, covering the Third Addendum to the Port Service Concession Agreement for Tanjung Priok Port and a concession agreement for operations in specific waters around Nipa Island in the Singapore Strait.

Director General of Sea Transportation Muhammad Masyhud said the agreements reflected the government’s commitment to strengthening more efficient and competitive port governance.

“On behalf of the leadership of the Ministry of Transportation, I appreciate the implementation of this activity as a manifestation of our shared commitment to strengthening both the quantity and quality of services, as well as improving the efficiency of port service operations,” Masyhud said in a statement.

He added that the agreements would also contribute to higher state revenue through concession payments categorized as Non-Tax State Revenue (PNBP).

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Under the Third Addendum to the Tanjung Priok concession agreement, the scope of operations includes management of shipping lanes connected to Pulau Baai Port in Bengkulu. Pelindo will pay concession fees equal to 5% of gross revenue throughout the concession period.

Meanwhile, Pelindo was granted a 32-year concession for operations in waters surrounding Nipa Island in the Singapore Strait through an assignment mechanism. The concession fee for the area was set at 7% of gross revenue, following a fairness review by Indonesia’s Financial and Development Supervisory Agency (BPKP).

 “With the signing of these two agreements, we hope to improve services for users in a more efficient and competitive manner while continuing to prioritize shipping safety and security,” Masyhud said.

He also emphasized the importance of coordination between Port Business Entities (BUP) and Port Authorities to ensure operational compliance with existing regulations.

The agreements were signed by Pelindo President Director Achmad Muchtasyar together with the heads of several port authority offices under the Directorate General of Sea Transportation, including the Main Harbormaster and Port Authority Office (KSOP) of Tanjung Priok, KSOP Class I Tanjung Balai Karimun and KSOP Class III Pulau Baai.

The signing ceremony was attended by Pelindo executives, Transportation Ministry officials and other stakeholders from Indonesia’s maritime transportation sector.

Editing by Reiner Simanjuntak