More maritime highway routes to be added next year
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 - Tahun depan trayek tol laut ditambah
14 October 2024
By Ichsan Amin
Jakarta, ID – Next year, the government plans to add more routes to the maritime highway, expanding from the existing 39 routes. The increase in maritime highway routes is expected to facilitate the distribution of goods to the outermost regions of Indonesia.
Sea Transportation Director General of the Transportation Ministry, Capt Antoni Arif Priandi, stated that the effectiveness of the maritime highway programme, which has been ongoing for 10 years, has significantly impacted price disparity.
“Moreover, due to our high number of islands, exceeding 17,000, we need to be present to bring basic necessities. So, in the future, we will establish new routes,” Antoni said in Jakarta on Sunday (13/10/2024).
Antoni mentioned that issues regarding the maritime highway are still very complex, necessitating further improvements. “We are planning to add three more routes next year.
However, we will still discuss it, as it depends on the available budget,” he stated.
The Sea Transportation Directorate General is proposing a budget of Rp1.124 trillion for next year's maritime highway programme. Antoni explained that coordination with maritime highway operators would be strengthened. “Next year, we will have a more comprehensive concept to provide better services,” he revealed.
Meanwhile, Sea Traffic and Transportation Director Hartanto explained that the maritime highway programme would be expanded by increasing the number of ships. Until now, most of the ships operated have been government pioneer ships.
“We need a scheme where, in the future, we can utilise ships from the Human Resources Development Agency (BPSDM) and the Transportation Ministry, in addition to the existing ships operated by PT Pelni,” he revealed.
Hartanto revealed that the maritime highway programme, which has been implemented for ten years, continues to improve year by year. “We continuously evaluate the routes, return cargo, and ship availability. Our goal is to reach all areas in the outermost regions,” he added.
New economic potential
Previously, Transportation Minister Budi Karya Sumadi stated that the maritime highway programme was deemed effective as it created hubs and spokes, fostering new economic centres in regions through the return cargo on the maritime highway programme.
According to the Transportation Minister, the return cargo on the maritime highway programme reflects Indonesia’s rich natural resources. “From there, we can see our vast natural potential. There are sea, forest, and other natural products. It is only a matter of how investors can enter. This cannot be resolved by a single ministry,” the Transportation Minister revealed recently.
Budi Karya mentioned that, over the last 10 years, the programme has seen significant improvements in terms of routes, cargo, and ships. This is evident from the increase in cargo volumes, the number of ships, and the expansion of routes.
“The cargo volume increased from 30 tonnes with 88 TEUs in 2015 to 989.75 tonnes with 31,878 TEUs in 2023. The number of ships has also grown from just 3 in 2015 to 39 in 2024,” he added.
Moreover, the number of routes has increased from 3 in 2015 to 39 in 2024. Additionally, the number of ports visited has grown from 11 in 2015 to 114 in 2024.
Throughout the development, the Transportation Ministry has consistently sought input from stakeholders and the public to ensure that the maritime highway programme can continue to evolve and provide benefits.
Ship procurement
One of the challenges faced by the maritime highway programme is the number of ships operated. Indonesian Logistics and Forwarders Association (ILFA) Chairperson Akbar Djohan mentioned that his association has proposed to the government that the private sector be allowed to purchase ships with government support through a national strategic project (PSN).
“We are requesting that ship procurement be included as a national strategic project to support the government’s programmes through the maritime highway. One of the issues in the maritime highway programme is the number of ships operated. Despite the large number of ships, the number of operational ships is still too few,” he stated.
According to him, ship procurement and purchase have not been recognised as having potential. Meanwhile, operational ships on Indonesian waters must be viewed as essential infrastructure.
“So, ships must be seen as infrastructure. In the future, this can be facilitated by the government through a PSN. Until now, we have only considered PSNs as infrastructure projects, such as bridges, roads, or industrial estates. Indonesian ships must also be viewed as infrastructure. Not all businesses are capable of easily purchasing ships, so they need to be supported,” he added.
Support required
On a separate occasion, Raja Oloat Saut Gurning, a maritime expert from Institut Teknologi Sepuluh Nopember in Surabaya, revealed that the maritime highway programme has a significant impact on enhancing the regional economy. However, it requires support from regional governments and relevant ministries.
“The benefits of the maritime highway are quite substantial, especially in distributing basic needs to outermost regions, which can be complemented by return cargo. Focusing on both the distribution of goods and return cargo is essential to create new industries,” he told Investor Daily.
For example, he mentioned that another benefit of the maritime highway is that when basic needs are delivered to a port in a certain area, not all residents can enjoy the same prices as those in Java.
“Why does this happen? Because the government only controls goods on the port side. Once basic needs have reached an agent, they are no longer under control. There needs to be subsequent oversight from the regional government or other relevant ministries,” he stated.
He added that there must be a leader to regulate goods distribution, including return cargo. “It has not been coordinated, so, in the future, there must be strong oversight from a coordinating body, whether it be from other ministries or institutions,” he added.
Contact us
