Establishment of Pelindo Incorporated Equipment Transformation Sub-holding Board in Jakarta on Monday ()2/18) - Photo by SOEs Ministry

JAKARTA (TheInsiderStories) – State-owned port operators, PT Pelabuhan Indonesia (Pelindo) I, II, III, and IV signed a framework of implementing Equipment Sub-holding Transformation Board for Pelindo Incorporated in Jakarta, on Monday (02/18).

The transformation board will work to ensure the plan to form Pelindo Incorporated in the near future. Pelindo II’ CEO Elvyn G. Masassya stressed this merger is expected to make the business scope of the subsidiary business even greater.

“After the merger, Pelindo Incorporated will standardize business operations as a whole. Especially in the internal IPC (International Port Corporation). The holding will also calculate the overall valuation, to determine the share ownership of the merger,” he explained.

Previously, Pelindo I, II, III and IV agreed to merge all port services into the Integrated Billing System (IBS), the implementation of which will begin in stages until the end of May 2019. The port services included in the IBS include billing , booking, tracking, and payment.

Masassya stressed that the application of IBS is a form of efficiency for service users. Because later they will no longer open one by one portal owned by Pelindo to access their port services information, she added.

Besides IBS, Pelindo Incorporated also agreed to unify the optimization of port equipment such as Hopper, Container Spreader, Crane, trailer and so on. With regard to port equipment, we agree to unite the supports, namely maintenance, spare parts, optimization of equipment, said Evelyn.

The collaboration of the equipment usage became an embryo for the joint maintenance operation between Pelindo Incorporated, he added. This cooperation has begun with PT Jasa Peralatan Pelabuhan Indonesia with PT Berkah Industri Mesin Angkat dan PT Equiport Inti Indonesia.

Pelindo IV Finance Director, Yon Irawan added, for the company this equipment cooperation can certainly overcome the imbalance between the volume of goods and equipment that is happening now. The logistical costs that are too high in the east when compared to the west certainly can also be suppressed through this cooperation.

He added, overall Pelindo Incorporated will be able to make the company’ performance more efficient. Equipment cooperation will also strengthen negotiations with suppliers to get better prices with good quality, noted by Irawan.

This agreement also shows their readiness to realize other collaborations that support government programs such as sea tolls or inter-port connections in Indonesia and tourism development on remote islands.

While SOEs Minister Rini Soemarno said that there were many benefits from Pelindo integration. First, the increasing value of four port companies, both in terms of size, business volume, performance and equity and assets. “Remember, we now live in a global age in the regional phase. Competition in this era is clearly increasingly fierce,” said her.

Second, the greater the size of the company and the capacity to obtain funding, both from domestic and foreign sources. Soemarno believes that in the future the infrastructure business, especially ports, will be very attractive to investors. With the new name Pelindo Incorporated, the funds that have been collected will certainly be far greater.

Written by Lexy Nantu, Email: lexy@theinsiderstories.com