Pelindo II refuses to cancel HPH contract
State-owned Pelindo II has refused to bow to government demands to cancel a contract with Hutchison Port Holdings for Jakarta International Container Terminal.
The contract renews the international operator’s concession at JICT through to 2039.
The Indonesian transportation ministry’s director general for sea transportation, Bobby Mamahit requested in writing that Pelindo II cancel the contract because it had not complied with government procedures.
Mr Mamahit claimed that Pelindo II must gain permission from the ministry before renewing contracts, which is disputed by Pelindo II. “Why should we ask for the government’s permission to renew our cooperation with our partners?” Pelindo II’s Richard Joost Lino asked.
Under the agreement, Pelindo II has increased its holdings in JICT from 49% to 51% and HPH will have to pay $250m in advances to Pelindo II. The state operator has also reportedly doubled HPH’s rent.
Related Articles
CONTAINER & CARGO HANDLING
TERMINAL OPERATIONS
EQUIPMENT