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Ministry to optimize ‘maritime highway’

Mardika Parama (The Jakarta Post)
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Jakarta
Fri, June 26, 2020

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T

he Transportation Ministry is relying on a long-running sea transportation program – the maritime highway – to support logistics in the country amid disruption induced by the COVID-19 pandemic.

Transportation Minister Budi Karya Sumadi on Sunday stated that optimizing the maritime highway, a flagship program in President Joko “Jokowi” Widodo’s first term in office, was part of the government’s efforts to ensure the movement of goods during the health crisis.

“The maritime highway is expected to secure supply logistics all across Indonesia during the pandemic,” Budi said according to a press release. “To optimize the maritime highway program, all stakeholders need to take part to maximize the carrying capacity of the ships and reduce price disparity [among islands].”

COVID-19 restrictions, which are now being phased out in some places, have caused logistical disruptions along the supply chain by limiting mobility in an effort to contain the spread of the coronavirus, which has infected more than 46,000 people nationwide.

The maritime highway, which has run since 2015, is a subsidized cargo program that to distribute staple goods and major consumer items — including rice, sugar, flour, cooking oil and eggs — as well as steel and cement to remote regions of the archipelago.

It aims to reduce the price disparity across the country’s many islands, which is generally caused by costly logistics.

Seven of the 26 maritime highway routes are operated by private shipping companies, while the majority of the rest are run by state-owned shipping company Pelayaran Nasional Indonesia (Pelni). The routes connect major cities with more remote areas, including Tanjung Perak in East Java and Timika, Papua.

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