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Shipping ministry needed for next maritime journey

The two candidates for the 2019 presidential election have so far aired a score of plans to win the public’s vote

Siswanto Rusdi (The Jakarta Post)
Jakarta
Wed, January 16, 2019

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Shipping ministry needed for next maritime journey

T

he two candidates for the 2019 presidential election have so far aired a score of plans to win the public’s vote. Unfortunately, maritime issues are hardly found in their campaigns.

President Joko “Jokowi” Widodo has said nothing on whether the vision of a global maritime axis — sometimes also dubbed the global maritime fulcrum — will be carried on or not. This initiative was launched by Jokowi when he was running in the 2014 presidential election. It was said that one of the winning factors of the former Jakarta governor in the election was the maritime issue.

On the other hand, twice-presidential candidate Prabowo Subianto, the former commander of the Indonesian Army’s Special Forces (Kopassus), seems to lack any maritime perspective at all.

During his campaign as the presidential candidate in 2014, he did not say much on the subject. Perhaps there were no aides briefing him on key domestic maritime problems like ailing shipping businesses, underpaid seafarers and so on.

Jokowi was much luckier. The nation’s top maritime minds, ranging from shipping executives, port experts and others, were behind him. They turned the former Surakarta mayor into a “maritime man” with a vision to transform Indonesia into a global maritime axis.Additionally, they also rebranded the so-called Nusantara (archipelago) pendulum, a ready-to-implement the tol laut (maritime highway) during president Susilo Bambang Yudhoyono’s administration

However, some of those experts may have been disappointed with the implementation of the president’s maritime vision. The martime highway is considered to have deviated from its initial design. As disclosed by a prominent economist who was part of the earlier campaign team, it was basically plotted as a subsidy-free program.

In fact, since its launch in 2015, maritime highway has been absorbing Rp 300 billion (US$20.6 million) in subsidies annually.

What we have now are two candidates with an inadequate maritime vision for their match in the 2019 presidential election. As the world’s biggest archipelago state whose territory is covered by water, Indonesia is supposed to be a national leader with at least a strong maritime commitment. This was reflected in the policies of former presidents Sukarno, Soeharto, Habibie, Abdurrahman “Gus Dur” Wahid and Yudhoyono.

However they had not executed the plans. In the case of the Patimban Port, the first phase required an investment of about Rp 17.16 trillion, of which Rp 14.17 trillion will be borrowed from Japan through the Japan International Cooperation Agency (JICA). This is the biggest government-to-government loan in developing maritime infrastructure. Usually, port construction is handled by the state-owned port company Pelindo under a business-to-business scheme.

Now what is the maritime platform that maybe adopted by Jokowi or Prabowo?

Whoever wins the presidency, a new post is urgent in the 2019-2024 ministerial Cabinet: the shipping ministry. Isn’t the sector already handled by the transportation ministry with its directorate general of sea transportation?

Sure; but the bureaucratic model is totally obsolete in the ever-changing maritime domain. When Jokowi announced his Cabinet line-up, the domestic maritime community expected him to appoint a minister with a maritime portfolio.

Instead, the President established the Coordinating Maritime Affairs Ministry, a non-portfolio post; with all the executing powers in the hands of the ministries under its supervision. This means Jokowi’s maritime vision is being carried out by existing agencies. Yet those ministries have their own programs as predescribed by various rules, from the Constitution to presidential decrees. The Transportation Ministry, for example, mainly focuses on programs or policies on how to develop better land, air and sea transportation.

Shipping is hence a small portion within the Transportation Ministry governed only by a directorate-level unit. In Vietnam, a minister is assigned to oversee the sector.

Slowly but sure, the country’s shipping has become bullish, as indicated in the World Bank’s 2018 Logistics Performance Index (LPI). Vietnam is ranked at 39th with an LPI score of 3.27. India also has a minister in charge of shipping management.

Indonesia needs to follow suit in organizing its shipping sector as the existing system has continuously damaged the country’s balance of payment. A larger part of the current account deficit is partly due to the use of foreign ships in the shipment of the country’s exports and imports.

Nearly 90 percent of shipments are controlled by foreign shipping companies.. Meanwhile, in logistical indicators, Indonesia is ranked at 46th and its LPI score is 3.15. So, the next Indonesian president, whoever he is, should embrace maritime awareness; and the establishment of a shipping ministry is a way to materialize it.
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The writer is director of the Jakarta-based National Maritime Institute (NAMARIN).

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