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IPC to ‘be world-class trade facilitator’
State-owned port operator Pelindo II, also known as the Indonesia Port Corporation (IPC), plans to pursue digital transformation over the next five years to evolve into a world-class trade facilitator
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span>State-owned port operator Pelindo II, also known as the Indonesia Port Corporation (IPC), plans to pursue digital transformation over the next five years to evolve into a world-class trade facilitator.
The IPC currently manages 12 seaports in Java, Sumatra and Kalimantan, including Jakarta Bay’s Tanjung Priok Port, Indonesia’s busiest port that handles more than 30 percent of the country’s non-oil and gas exports.
IPC president director Elvyn G. Masassya said the company had plans to integrate its ports under a digital platform and diversified logistical services for traders, including freighter leasing and truck rental.
“One way to do this is to prepare [an online] ‘marketplace’ for our port operating system to provide our customers easier access and the best service,” Elvyn told reporters during a press briefing in Jakarta.
He added that digitizing IPC’s operations would help streamline its services and improve efficiency.
For instance, the company planned to install an automated gate system, or “auto gate”, at Tanjung Priok Port by the end of June.
The auto gate would employ optical character recognition (OCR) embedded in smart cameras to eliminate the need for physical inspections and documentation on containers entering a port.
The technology would reduce dwelling time for incoming cargo from currently 36 hours to less than 24 hours, IPC senior vice president for port services David P. Sirait said at the press briefing.
“This auto gate facility will undergo trial in April, and we plan to have it fully implemented this semester,” said David. “The government and customs and excise [directorate general] have urged us to become fully automated.”
He said that the IPC’s ports in Pontianak, West Kalimantan, and Palembang, South Sumatra, had already implemented the auto gate system, and that Lampung’s Panjang Port was next in line.
The IPC had been taking steps toward achieving its digitalization goals since 2017, setting aside Rp 1 trillion (US$70.84 million) in capital expenditures (capex) specifically for developing its digital infrastructure until 2020.
Elvyn said the company would use the remaining 30 percent of the digital infrastructure capex this year.
The company had allocated Rp 11.6 trillion of its annual capex for its ongoing port development projects and facility upgrades.
All would be funded internally, said Elvyn, as the IPC had no plans to seek external funding.
“This year, we will also explore partnerships with more cargo ports abroad, such as the Port of Lázaro Cárdenas in Mexico, several ports in the Philippines and in Indochina,” he said.
The IPC targeted revenues of Rp 13.50 trillion this year, 18 percent higher than its 2018 revenue target, as well as profits of Rp 2.61 trillion, 7.4 percent higher than last year’s profits.
IPC acting commercial director Dani Rusli added during the press briefing that the port operator would continue to maintain efficiency in achieving its financial targets.
By this month, Dani said, the IPC had attained 93.8 percent of its 95 percent equipment utilization target for the year as a result of its digital management and analysis systems.
“We plan to reduce costs by 30 percent this year through a more complete database and maintenance schedule with the help of our digitized [systems],” he said.
