Indonesia should consider four new initiatives to build a world class port network, Hans Patuwo and Robert Carey, partners at McKinsey and Company have urged in an opinion piece in the Jakarta Post.
Improving domestic port operations and procedures – their first suggestion - is one of the “simplest and most effective ways to encourage a maritime transformation across Indonesia”, they argue.
Leading this would be proper performance management across all ports to co-ordinate and monitor operations from arrival to departure.
Gains could be made by imposing fines and penalties on ships that do not keep to their allotted slot and on the port if the schedule is not followed.
“This would cut waiting times for ships at port and make a radical difference,” they say.
The second key reform is accelerating the pre-customs process through enforcing online document submission, for example through the National Single Window (INSW) for import documents, and the Transportation Ministry’s Inaportnet platform for manifests and business transactions.
“Third, investing in Indonesia’s domestic ports, especially in growing cities outside Java, such as Pontianak or Makassar, is also absolutely critical,” the two said.
They acknowledged though this would need increased regulatory support and clarity – their fourth recommendation – in order to attract investment.
