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Government Ponders Shifting Import Ports of Entry Eastward
WINDONESIA August 2, 2024
Port of Sorong in West Papua. (Pelindo).
There is a plan to move Indonesia's import entry point to Eastern Indonesia.
"This proposal has been discussed in a meeting between the Industry Minister and the Trade Minister. This import port of goods was actually proposed by the Industry Minister and approved by the Trade Minister. Furthermore, this proposal will be brought up in a limited cabinet meeting," Industry Ministry Special Staff and Spokesman Febri Hendri Antoni Arif revealed in Jakarta on July 31, 2024.
He added that there are fundamental reasons behind the proposal to move the import ports of entry. One of them is the accumulation of 26,000 containers that occurred at the Ports of Tanjung Priok and Tanjung Perak in May 2024.
"We proposed this change based on the experience of container stacking in May of this year. If the transfer of the import material port is approved and actually implemented, we also see market potential in Eastern Indonesia that can be filled by domestic manufacturing," Febri added.
The market potential in Eastern Indonesia is also considered promising. If the transfer of the import entry point is implemented, there will be an opportunity to increase demand, especially in the textile sector. Many textile small and medium enterprises (SMEs) have so far imported raw materials and then faced competition with products from large producing countries.
The Industry Ministry is eyeing ports in Sorong, West Papua, and Bitung, North Sulawesi, as potential locations for new import port of entry.
"If the import port of entry is moved there then downstream goods will reach the region, which is expected to encourage economic growth. We also hope that the transfer of this import port of entry will create new business opportunities and improve the shipping and logistics sectors," he explained.
The port will focus on seven main commodities, namely textiles, ceramics, footwear, apparel, cosmetics, electronics, and other apparel.
"While we are still focusing on the 7 commodities, especially downstream goods. But later we will see how big the influence is outside of those commodities, if it really has to be included or prioritized in the eastern Indonesian port, we will include it," Febri concluded.
Source: nasional.kontan.co.id