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Ministry of Transportation appoints Pelindo III for Handling Pilotage and Vessel Towage Services in
Tuesday, 18 February 2020

Surabaya (18/2) – Ministry of Transportation appoints Indonesian State Owned Enterprises Pelindo III to provide pilotage and vessel towage services in the Malacca Strait, Phillip Strait, and Singapore Strait. The area is declared as an exceptional pilotage watershed Traffic Separation Scheme (TSS) shipping route next to neighboring countries, Malaysia and Singapore. The subsidiary of Pelindo III, Pelindo Marine Service, will start the Surabaya headquartered maritime SOE to expand its international market.

The Decree of Directorate General of Sea Transportation was handover by the Capt. Agus Arifianto to Pelindo III Engineering Director Joko Noerhudha, who was accompanied by President Director of Pelindo Marine Service, Eko Hariyadi Budiyanto, in Surabaya, Tuesday (18/2)

“At this moment, it is historical day for Pelindo III, after having some stages of performance evaluation, infrastructures, and HR. Consequently, Pelindo III is appointed to handle pilotage service in TSS. In order to keep the competition position in global market, the pilotage service in Malacca Strait have to provide service excellent, as the protection of Indonesia’s national endurance and logistics supply,” said Agus Arifianto in opening speech.

At that time, Joko Noerhudha, appreciates the strategic performance of Directorate General of Marine Transportation, Ministry of Transportation, and Ministry of Foreign Affairs, that has succeed to strengthen Indonesia’s territory and build up the national income on maritime industry. “By having The Decree of Directorate General of Sea Transportation, Pelindo III by the hand of Pelindo Marine Service, as State Owned Enterprises, becomes more reliable and secure to handle Indonesian pilotage and vessel towage services for international ships in Malacca Strait and surroundings,” he stated.

 “Pelindo III urges all the subsidiaries to expand their business out of captive market. In addition, they have to invent by providing added value to global customers. It becomes big advantages of international expansion,” said Joko Noerhudha.

Eko Hariyadi Budiyanti declared that the business opportunity on handling pilotage and vessel towage services in that territorial has been studied by The Littoral States. The Forum Tripartite Technical Expert Group (TTEG) was attended by Indonesia, Malaysia, and Singapore. “The negotiation found out the clearness in Intersessional Meeting of The Working Group on Voluntary Pilotage Services in Straits of Malacca and Singapore, in Bandung, early 2007. This meeting was initiated at the 41st TTEG Forum, in Yogyakarta,” he said and also attended TTEG Forum.

Furthermore, it affirms the Indonesian Government’s commitment to handle the national maritime sector expansion. Ministry of Transportation awarded that chance to State Owned Enterprises, especially Pelindo III that has the subsidiary on marine service, PMS, that has handled pilotage service in Malacca Strait for recent years.

 “It becomes hard competition. There are some pilotage or marine advisory that has been handled by Malaysia and Singapore. In reality, 60 percent of the territory is owned by Republic Indonesia. It becomes the challenge for international maritime community that Indonesia is able to manage Malacca Strait. The pilotage and marine advisory services that has been handled by Pelindo Marine Service, are the initial work planning of Indonesian Government to expand vessel traffic information system (in the Malacca Strait),” he said.

The maritime educator of ITS Surabaya, Saut Gurning, also attended the event. According Straitrep (2019), at the period time of 2009-2019, there were almost 60.000-85.000 vessels that pass through Malacca Strait for a year. “There were only 300 vessels that has been handled by Indonesia. It should be around 2.000-3.000 unit. It would be successful strategic for handling service on huge vessels, for instance VLCC (very large crude carrier/tanker),” he stated. 

In addition, the amount of 60,000-85,000 ship units per year, showed that the economic value of pilotage service reached Rp 45 trillion. The total derivation value could be Rp 360 trillion. In fact, Indonesia did not aware that they handle the service in the most eastbound area (Indonesia territory), Sumatra-Natuna areas.

“Currently, the realisation value is almost 80 thousand vessels, estimated 70% is handled by Singapore, because they have a port. The Indonesia interport have to be expanded, for instance Kuala Tanjung. If we only handle hinterland segment  (proponent port area), the profit value is not significance. Several stakeholders, which are government, SOEs, private companies have to cooperate for gaining the potential sector in Malacca Strait,” he said.