Car exporters demand bigger terminal

The Jakarta Post ,  Jakarta   |  Fri, 02/22/2008 5:00 AM  |  Business

With the country's car exports expected to further increase this year, exporters have demanded the government expand the capacity of Tanjung Priok's car terminal.

Toyota Motor Manufacturing Indonesia chief of corporate planning Irwan Priyantoko told The Jakarta Post on Thursday the terminal's capacity would soon no longer be adequate for the country's car exports.

This year Toyota expects a 40 percent increase in its exports, he said.

According to data from the Industry Ministry, the number of cars and components exported by Indonesian manufacturers is rising.

In 2007, car manufacturers here exported around 55,000 cars overseas with a total value of US$2.1 billion, up from 30,000 cars and $1.7 billion in 2006.

This year, the ministry expects manufacturers to export 75,000 to 85,000 units valued at about $2.9 billion.

The total capacity of 350,000 cars per year at the terminal is likely to be inadequate within three years, Irwan said.

"At shipping time, the terminal is always close to running over its capacity," he said, adding that the carriers often arrived on the same day.

Because their arrivals were scheduled internationally, he said, manufacturers could not do much except comply and hope the terminal was capable of handling the shipments.

Besides expanding the terminal's capacity, Irwan also hoped the government would make service charges more competitive.

"The government should conduct a study to determine whether or not the price in Indonesia is higher compared to the prices in other countries," he said.

Director general of transportation, telecommunication and information technology industries of the Industry Ministry, Budi Darmadi, said the expansion of the terminal was necessary, but not immediately.

"The current maximum capacity of the terminal is 350,000 cars per year. Thus, for the time being, the capacity is sufficient," Budi said.

"However, in the next few years, observing the 80 percent growth of car exports from 2006 to 2007, the terminal's capacity will absolutely need to be expanded."

Capacity aside, the car terminal also suffers from weak accessibility as access roads often flood and fill with traffic, Budi said.

"The expansion of the terminal should be made alongside improvements in accessibility, such as developing more toll roads," he said.

Key to sustainable export growth, Budi said, was stronger coordination among related state institutions.

"The responsibility for improving the port's accessibility is in the hands of the Public Works Ministry and the Jakarta City Administration, while the Transportation Ministry is responsible for expanding the port," he said. (uwi)

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