PELINDO IV Signs Deals with SOEs to Further Expand

November 18, 2017, The Jakarta Post

State port operator PT Pelindo IV aims to improve its business by working with several other state enterprises. Pelindo IV, which is in charge of 27 ports in the eastern part of the country, has inked eight memorandums of collaboration (MoC) and cooperation agreements with state enterprises and several private companies.

The state enterprises range from state lenders such as Bank Rakyat Indonesia (BRI) and Bang Negara Indonesia (BNI) to state construction firms Wijaya Karya (Wika) and Adhi Karya. Pelindo IV president director Doso Agung said the cooperation with the banks was part of the company’s efforts to develop smart ports and terminals.

With BRI, for example, Pelindo will launch a co-branding of electronic payment card Brizzi e-port. “Thanks to BRI, BNI, [state owned] Bank Mandiri, now port related cashless payments can be done even in ships,” he said recently.

Cashless payment are aksi expected tocradicate the illegalfees that are rampant at ports. The company has so far applied an integrated billing system (IBS) from docks to the terminals. The IBS has been applied at six of its ports so far, including its ports in Ternate in North Maluku, Ambon in Maluku, Bitung in North Sulawesi and Nunukan in North Kalimantan.

Pelindo IV facilities and equipment director Farid Padang said the company planned to build the infrastructure for the IBS and to apply its remaining 21 ports by next year.

“Currently, trucks and cars entering the port create a chaotic situation. The system will fix that,” he said.

The IBS will also complement the government integrated port billing program Inaportnet, currently actinve in five ports managed by Pelindo IV.

The company estomates the sustem’s implementation will const more than Rp 20 billion (US $1,47 million). Meanwhile, on its cooperation with Adhi Karya and Wika, the company plans to optimize 15 hectares of land for hotels and tourist spots. The plots of land are mostly located around its ports.

“There are 21 ports in total located in strategic locations. We want to develop tourism and porperty in those areas,” said Farid. In Kendari, Southeast Sulawesi for example, Pelindo IV has 3 hectares of land that can be optimized, while it has 2 ha in Sorong, West Papua.

Farid said the development cost of hotels could reach more than Rp 20 billion. Adhi Karya and Wika, as the developers, will have a revenue-sharing scheme with Pelindo IV.

He said he expected cooperation agreements with the state construction firms to be signed by the end of this year so that construction could start early next year. The company has also inked an agreement with China Communiation Construction Engineering Indonesia to develop ports in eastern Indoneisam in which the letter will fund a study and the detailed engineering design (DED).

Pelindo IV also intends to issue a Rp 5 trillion to Rp 6 trillion bond to fund the development of projects and to refinance debts. Mandiri Sekuritas is in discussion to be the underwriter for the bond.

The company has been tasked by the government with building the Makassar New Port in South Sulawesi, where progress has reached 50% so far.

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