PT Pelabuhan Indonesia II (Persero) is a leading provider of port management services in Indonesia and is setting new standards in the industry having recently transformed into the Indonesian Port Corporation (IPC). IPC strives to be a world class port operator having undergone fundamental restructuration to improve its efficiency, technology, infrastructure and human resources in preparation for Indonesia’s imminent emergence as a global trade and business hub.
IPC enjoys a nationwide presence throughout the Indonesian archipelago with 12 branches including Tanjung Priok port in Jakarta which handles over 50% of Indonesia’s total trade volume. Made up of four subsidiaries and two affiliated companies, IPC’s expertise spans the full scope of port management activities and auxiliary services such as car and international container terminals.
Human resources and soft infrastructure lay at the heart of IPC’s strategy to lower logistics costs and invigorate Indonesian trade by positioning the country’s ports as facilitators of sustainable growth. To achieve this, the company heavily invests in human resources training through collaboration with international educational institutions. Streamlining operations through close cooperation with all facets of the customs and transportation has been a further pillar of the company’s vision to overhaul Indonesia’s logistics sector.
IPC is now entering the next stage of its expansion through the construction of the New Priok Development which will dramatically increase the capacity of Tanjung Priok to 11 million TEUs for containers and 9 million cubic meters for oil and gas products. The company is now inviting international partners to participate in this landmark $2.4 billion USD development which will have a far reaching impact on Indonesia and Asia.
Year of Establishment: 1960
Type: State Owned Enterprise
Number of Employees: 2,500
Authorized Capital : 4 Trillion RP
Branches, Subsidiaries and Affiliates : 12 branches, 4 subsidiary companies and 2 affiliated companies.
Accreditatons : ASEAN Port Association, International Association of Ports and Harbours, PIANC.
The Nusantara Pendulum is a shipping pathway conceived by IPC that is designed to significantly lower logistics costs in Indonesia by creating economies of scale when shipping to the country’s ports outside of Java. The intended route passes through Indonesia’s main ports using ships of 3,000 TUs capacity. At each of these main hubs, smaller scale ships will operate loops that access the surrounding area. Once the supporting infrastructure has been completed, this plan will lower logistics costs as well as reducing dwelling time due to congestion at the main ports thus revitalising Indonesia’s domestic trade and local industries.
Indonesia’s interisland trade has been increasing at over 37% CAGR for the past five years with routes to the East of Indonesia showing the most striking growth therefore presenting highly lucrative opportunities for the pendulum’s related infrastructure investment projects.
Indonesia’s external trade volumes are continuing on an unabated upward trend and future international free trade agreements with that of Europe and the ASEAN among others are creating further opportunities for exports. IPC is therefore preparing for Indonesia’s future as a major business and export centre on a regional and global scale by addressing the pressing need to bring down logistical costs. The Europe-Asia-Transpacific Pendulum connects Indonesia with the main shipping hubs around the world to facilitate the country’s growing businesses in their international activities. Indonesia will serve as a regional connection point between Singapore and Australia to the rest of Asia Pacific, Europe, North and South America thus enhancing Indonesia’s global trade reach.
