Moving Ports of Imported Goods to Eastern Indonesia Still Under Consideration

The Indonesian government is reviewing a plan to move the port of imported goods to Eastern Indonesia. The relocation aims to avoid congestion of imported goods on Java Island. 

The Ministry of Trade and relevant stakeholders are further examining various aspects of this plan, including its social and economic impacts, as well as its potential to improve national competitiveness. The results of this study will be the basis for the government to decide on the continuation of the port relocation project. If realized, this plan has the potential to change the face of national logistics and bring positive impacts to eastern Indonesia.   

Read more: Logistics Sector Development Strategy to Support Indonesia's Economy

As for this study process, there are several commodities that are to be moved to Eastern Indonesia, including electronics, textiles and textile products (TPT), apparel, footwear, cosmetics, ceramics, valves, and traditional medicines. The selection of these commodities is based on the assessment that these sectors are considered vulnerable to calls for cheap or illegal imported goods. 
 
Previously, the Ministry of Trade highlighted to unravel the congestion in Java Island, Tanjung Priok Port and Tanjung Perak Port, as the inflow of imported goods. Both are known to have experienced the accumulation of containers up to tens of thousands. 

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However, this transfer is considered to face various challenges, ranging from limited infrastructure to significant investment costs. Port facilities in Eastern Indonesia require an increase in capacity to be able to adequately meet the distribution needs of imported goods.  

This plan has received attention from the Indonesian National Importers Association (GINSI), which considers that moving import ports to Eastern Indonesia will make product prices more expensive because it refers to infrastructure conditions.  
 
The relocation of import ports to Eastern Indonesia has the potential to increase return cargo transportation from the region to Java. Because so far, ships returning from Eastern Indonesia to Java only carry 50% of the available capacity.   

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Equally important, the Chairman of the DPP Shipowners Association (INSA) said that the government must also ensure the optimization of commodities to be imported through Eastern Indonesia due to concerns that it would be inefficient for Main Line Operator (MLO) vessels carrying imported goods to then have to divide the cargo and contact several gate ports in Indonesia.  

The relocation of import gates in Eastern Indonesia also still requires the necessary preparations, such as the development of adequate port software and hardware. In addition, Human Resources (HR) are also very important because import port operations take place 24 hours a day.

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Plan to Relocate Import Ports to Eastern Indonesia Fces Tough Challenges  
Port of Imported Goods to be Moved to Eastern Indonesia, Ministry of Trade: Still Under Review