•    HOME   
•    NEWS   
•    BUSINESS   
•    INTERNATIONAL   
•    TECH   
•    SPORTS   
•    LIFE & TIMES   
•    OPINION   
•    MY JAKARTA   
•    BLOGS   
•    EYEWITNESS   

If the plan to expand Indonesia’s largest seaport, Tanjung Priok, is realized, it will go a long way toward easing the inordinate amount of time it takes to move goods in and out of the country. The important words here, however, are “if realized.”

The government has been talking about expanding Tanjung Priok for several years now so the business community can be forgiven for being somewhat skeptical of the latest plan to build four new terminals at a cost of Rp 22 trillion ($2.5 billion) over the next five to six years.

Located in North Jakarta, Tanjung Priok is Indonesia’s largest and most strategic port, handling 50 million tons of cargo a year. It is run by state-owned port operator Pelindo II, but in recent years has been stretched to breaking point.

The new plan calls for a phased expansion of the port so that when completed, it will have the capacity to handle 10 million 20-foot equivalent units per year, up from four million TEUs currently.

This will be a significant expansion and will go a long way toward easing container congestion at the port as well as helping to keep pace with economic growth.

The plan will also allow Tanjung Priok to handle larger container vessels and thus become a regional hub.

This is vital if Jakarta is to be seen as a major port of call for international shipping companies and for Indonesia to be perceived as a major economic player.

The government also plans to build a second port just outside Jakarta by 2025, but that is a long way from realization because the land has not been acquired yet.

As Sofyan Wanandi, chairman of the Indonesian Employers Association (Apindo) noted, the business community will need to see concrete evidence of the government’s intent with regard to these plans before it gets excited.

There is no question that infrastructure at all levels throughout the country is at breaking point and the government needs to act swiftly to address this issue.

Tanjung Priok is only one of a handful of ports, though the most strategic, needing to be upgraded.

The Soekarno-Hatta International Airport is also in dire need of an makeover.

There has been talk of building a new international terminal for years now, but no significant improvements have been made so far. An upgrade is both necessary and vital and must be carried out in coordination with the upgrading of the Tanjung Priok port.

Finance Minister Agus Martowardojo has indicated that he would begin discussions on the funding needed for the port upgrade next week.

It is critical that he puts this on the top of his priority list so work can begin as quickly as possible. Too much time has been lost to talking.

It is now time for action.