Pelindo merger realizes Jokowi's hopes for Indonesia's port future: Minister

Jakarta (ANTARA) - State-Owned Enterprises (SOEs) Minister Erick Thohir affirmed that Pelindo's merger had helped to realize President Joko Widodo's (Jokowi's) aspirations regarding Indonesia's readiness and competitiveness in the global market.

"This merger had been able to realize President Jokowi's hopes for these past seven years," Minister Thohir said as quoted from his official Instagram account @erickthohir on Friday.

The minister later noted that the merger of Pelindo I, II, III, and IV to create one entity Pelindo could cut logistics costs and strengthen maritime connectivity in a bid to make Indonesia more competitive.

As a result of the merger, Pelindo also becomes the eighth-largest container terminal operator in the world.

"Mr. President tells us that this merger is a big step that should be followed by other SOEs. Let us join our forces to strengthen our position in the industrial era 4.0," he affirmed.

President Jokowi had earlier conveyed that the merger of the four Pelindo companies will strengthen the state-owned port sector to become better, cheaper, and faster, as well as be able to boost Indonesia's competitiveness.

The president also requested that the merged state-owned Pelindo seek partners for port companies with extensive networks in a bid to help Indonesian goods to penetrate the global supply chain.

The president lauded SOE Minister Erick Thohir and several officials from SOEs for realizing this merger. As a result of this corporate action, SOE Pelindo became the eighth-largest container terminal operator in the world, with a total container flow or throughput of 16.7 million TEUs (twenty foot equivalent units).

The state-owned PT Pelabuhan Indonesia (Pelindo) earlier comprised Pelindo I, Pelindo II, Pelindo III, and Pelindo IV, with each of them operated in different ports.

President Jokowi merged the four port operators through Government Regulation Number 101 of 2021 on the Merger of PT Pelindo I, III, and IV into PT Pelabuhan Indonesia II. The regulation was signed by President Jokowi on October 1, 2021. (*)