Infrastructure becomes a challenge in relocating import ports

  • 26 May 2025

This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.

Investor Daily - Infrastruktur jadi tantangan pemindahan pelabuhan impor

26 May 2025

By Heru Febrianto

Jakarta, ID – The government’s plan to relocate import entry points for certain commodities to eastern Indonesia has been positively received by shipping industry associations. However, a key challenge remains the limited infrastructure, particularly international ports outside Java.

Chair of the Indonesian National Shipowners Association (INSA), Carmelita Hartoto, stated that shifting the country’s primary export-import gateway to eastern Indonesia is a strategic proposal that has the potential to transform the national maritime landscape.

She welcomed discussions on this proposal, seeing it as both a golden opportunity and a challenge that requires thorough evaluation by all stakeholders.

"The idea of relocating the gateway presents a highly intriguing prospect. It offers immense potential to strengthen our domestic industry while also fostering economic distribution by creating dynamic new growth centres in the eastern region," Carmelita stated in a press release issued on Sunday (25/5/2025) in Jakarta.

She outlined several key benefits, including a significant increase in cargo handling activity, the creation of thousands of new jobs, opportunities to develop innovative Special Economic Zones (SEZs), and positive impacts on local logistics services and the national shipping industry. Additionally, the plan could stimulate ship repair and docking facilities in eastern Indonesia.

This initiative aligns with the principles of the cabotage policy and collective efforts to maximise the utilisation of the national fleet. However, Carmelita pointed out that there are challenges to address through collaboration and careful planning, such as infrastructure readiness and potential adjustments in logistics costs.

"Certain aspects need to be prepared collectively, ranging from port infrastructure to workforce readiness. However, with strong cooperation and sound planning, we are optimistic that these challenges can become opportunities for improvement," she noted.

She also highlighted the need for a prudent approach, particularly in managing the impact on the manufacturing industry and ensuring the smooth flow of goods.

Carmelita stressed the importance of conducting thorough studies and open dialogue to develop the best solutions. Possible measures include differentiating import entry policies between raw materials and finished goods, as well as strengthening trade route monitoring systems to maintain integrity.

She further emphasised that this proposal is still in the early stages of discussion and requires deeper exploration.

Its success in the future will depend on infrastructure readiness, supportive regulatory frameworks, and effective commodity differentiation strategies, all of which require close coordination among stakeholders.

Separately, maritime expert Raja Oloan Saut Gurning from Institut Teknologi Sepuluh Nopember in Surabaya viewed the government’s plan to relocate import ports to eastern Indonesia as a move that could revitalise the region and boost its economic growth.

However, he cautioned that relocation must be carefully considered, as not all ports meet the criteria to serve as import hubs. "I think it is a good move because it can support regional economic growth through port logistics. However, many ports in eastern Indonesia are not equipped to handle imported vessels due to limited dock capacity," he told Investor Daily.

He explained that ports in the eastern region should remain open to import and export shipments for areas that qualify as international ports. The government only needs to implement a hub-and-spoke system. "This means creating a central collection port that distributes cargo to smaller ports, ensuring more balanced trade flow," he said.

Opening import and export access in eastern Indonesia would provide added value, leveraging each region’s unique commodity advantages. "This would promote economic distribution by allowing imported goods to enter ports in the eastern region rather than concentrating solely in Java," he concluded.

Impact on product prices

Previously, Director-General of Sea Transportation at the Ministry of Transportation, Antoni Arif Priadi, stated that the relocation of import entry points for specific commodities to eastern Indonesia is already in progress.

"The process is underway, and we are currently in discussions with the Ministry of Industry and the Ministry of Trade," Antoni said, as quoted by Antara in Jakarta recently.

He also proposed that luxury goods should be permitted to enter ports located in Makassar.

Furthermore, Antoni noted that six categories of imported goods would be redirected to Makassar's ports, including footwear, ready-to-wear clothing and accessories, electronics, and ceramics.

"If imports are redirected to Indonesia, logistics costs will inevitably rise. However, this measure is aimed at avoiding situations like the collapse of Sritex and similar cases. It is a double-edged sword, but we are discussing it carefully," he added.

Meanwhile, PT Pelabuhan Indonesia (Pelindo) Strategic Director, Prasetyo, stated that the company would adhere to government directives regarding the relocation of import entry points to ports in eastern Indonesia.

He expressed hope that the policy would be based on thorough studies and take logistics costs into consideration. Pelindo has also provided input regarding the logistics route relocation to enhance distribution efficiency.

"We have provided suggestions and are collaborating with Bappenas to monitor national logistics costs, ensuring accuracy," said Prasetyo.

He added that shifting import entry points would eventually impact product prices. However, overall logistical processes would become significantly more efficient compared to concentrating operations solely in Tanjung Priok, Jakarta, and Tanjung Perak, Surabaya.

"When shipments are sent to Makassar, cargo balance becomes more stable. Previously, when sending goods to eastern Indonesia, return trips were often empty, making costs high. But with the relocation, luxury goods sent to Makassar or Sorong will generate return cargo, increasing supply chain efficiency and business viability. We must assess this carefully," Prasetyo explained.

Quick wins programme

The relocation of import entry points for selected commodities to eastern Indonesia has been designated a priority programme or "quick wins" by the Ministry of Industry (Kemenperin). This follows directives from President Prabowo Subianto.

"We have held a limited meeting under the coordination of the Coordinating Minister for Economic Affairs. Several priority programmes for the industrial sector were discussed, and a task force will be established to review these plans in detail," said Minister of Industry, Agus Gumiwang Kartasasmita.

Agus stated that shifting import ports to eastern Indonesia is aimed at protecting the domestic manufacturing industry. This move aligns with his proposal to relocate import entry points to safeguard the domestic market for locally produced goods while also enhancing Indonesia’s logistics capacity.

Priority commodities under the relocation programme include electronics, textiles and textile products, ready-to-wear clothing, footwear, cosmetics, ceramics, valves, and traditional medicines.

"The selection of these commodities is well-founded, considering that these industries are vulnerable to an influx of cheap or illegal imports. This has become a key focus of the Red and White Cabinet’s policy to designate import ports in Sorong, Bitung, and Kupang," Agus added.

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