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Pelindo firms to merge into world’s ‘eighth-largest’ port operator
The State-Owned Enterprises (SOE) Ministry is set to merge port operators PT Pelindo I through IV in a bid to become a bigger, more efficient company that could become a global player in port services.
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A Pelindo I officer speaks into a walkie-talkie while a crane loads a container onto a ship during a trial run of the Kuala Tanjung Multipurpose Terminal in Batu Bara, North Sumatra, on Tuesday. State-owned port operator Pelindo I is completing construction of the first phase of Kuala Tanjung Port, which has a capacity of 600,000 twenty-foot equivalent units. (Antara/Irsan Mulyadi)
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tate-owned port operators PT Pelabuhan Indonesia (Pelindo) I, II, III and IV are to merge into one company on Oct.1, aiming to lower domestic logistic costs and expand business globally.
Deputy State-Owned Enterprises (SOE) Minister Kartika “Tiko” Wirjoatmodjo said on Wednesday that the merger would enable better port integration and business standardization, as well as optimize capital expenditures.
PT Pelindo II, also known as the Indonesia Port Corporation (IPC), will take over the assets of Pelindo I, III and IV, all three of which will then be disbanded without liquidation.
“This merger will open up the opportunity for the company to go global as the merger would make Pelindo the world’s eighth-largest container terminal operator, and we can compete globally," Tiko said during a press conference.
He went on to say that after the merger, Indonesia’s port would have a total throughput of 16.7 million twenty-foot equivalent units (TEUs). In comparison, China has the highest throughput capacity of 242 million as of 2019.
He added that the merger, which was pending approval from a government regulation (PP), would decrease Indonesia’s logistics costs by 1.6 percent by the end of 2025.
Indonesia’s logistic costs currently stand at 23.5 percent of the country’s GDP, the highest in Asia.
