Private Sector Encouraged to Invest in Indonesia's Port Sector

Jakarta: Minister of Transportation Budi Karya Sumadi encouraged the private sector to partake in investing in the port sector by forming a Port Business Entity (BUP).
The minister remarked that establishing a BUP will further improve port governance, so that the services provided will be more optimal.
“Currently, we have several terminals for own interest (TUKS) or special terminals, which are only used exclusively. In future, we will strive to have many TUKS and continue to become BUP,” Sumadi noted in a statement here, Thursday.

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The minister explained that with the increasing number of TUKS and special terminals to become BUP, the ports can be used for public purposes and will be easier to control, as they are properly registered.
He revealed that the government will grant concession rights for up to 30 years and ensure the ease of licensing process of special terminals and TUKS until the terminals become BUP.
“The TUKS and special terminals cannot be used for other people. If that is done, then legally, it is wrong. We want the port to be managed professionally, and we will make it easy to manage BUP permits,” he remarked.
Furthermore, the transportation minister lauded several BUPs that had entered into concession agreements and cooperated well with the Ministry of Transportation as the port operator.
In addition, Sumadi commended the Association of Indonesian Port Business Entities (ABUPI) that has protected port entrepreneurs as well as been a good partner for the government in supporting the progress of the port sector in Indonesia.
President Joko Widodo (Jokowi) earlier inaugurated the opening of three ports and one ferry to serve the community in Wakatobi District, Southeast Sulawesi Province, and its surrounding areas at Wanci Port.
The three ports are Kaledupa Port, Tomia Port, and Binongko Port.
“In addition, there is a ferry unit, Passenger Motor Vessel (KMP) Sultan Murhum II, which is also ready to operate,” he stated.
The ship will serve the crossing routes of the Kamaru-Kaledupa, Kaledupa-Tomia, and Tomia-Binongko — which are the group of islands in the Wakatobi National Tourism Strategic Area (KSPN) — with four trips per week, he noted.
The president stated that with the operation of the ports and ferry, the activities and mobility of the community will increase, especially for the transport of basic necessities.
“In addition, we expect that connectivity among islands in Wakatobi KSPN will get better,” he remarked.

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