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27 Mar 2023

News

Concession Agreement Signing for Provision of Port Services in Indika Logistic & Support Services Terminal at Balikpapan Port

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The Ministry of Transportation of the Republic of Indonesia through the Directorate General of Sea Transportation has officially granted assignment and concession rights for the provision and/or service of the Kariangau Interport Terminal in Balikpapan, East Kalimantan to PT Indika Logistic & Support Services (ILSS). This agreement is the oldest agreement signed directly by Capt. Mugen Suprihatin Sartoto as Head of KSOP Class I Balikpapan and Mr Widjaja S. Sumarjadi as President Director of PT ILSS and witnessed by Plh. Director General of Sea Transportation, Dr Capt. Antoni Arif Priadi, M.Sc on Monday (27/3) morning located in the Sriwijaya Room, 4th floor of the Karsa Building, Ministry of Transportation of the Republic of Indonesia. The concession agreement stated that the agreed concession period was 31 (thirty-one) years for a terminal area covering more than 32,000 m².

The concession agreement that exists between KSOP Class I Balikpapan and PT ILSS is a form of implementation of Law No. 17 of 2008 concerning Shipping and Minister of Transportation Regulation Number 48 of 2021 which states that port service provision and/or services are carried out by business entities. Port (BUP) is carried out based on a concession or other form from the Port Authority, which is set forth in an agreement.

PT ILSS is a Port Business Entity holding permit number KP 338 of 2012 issued by the Minister of Transportation on March 15, 2012. PT ILSS has the Kariangau Interport Terminal which is a multipurpose terminal with a range of services ranging from loading and unloading of liquid cargo, and bulk cargo, to general cargo. Currently, the Kariangau Interport Terminal has also obtained an International Ship and Port Facility Security (ISPS) certificate.

The President Director of PT ILSS in his welcoming speech hopes that the signing of this concession agreement will not only improve port services to stakeholders, but also create healthy and professional competition, and can realize economic equity in the area around the terminal as a result of an increase in Non-Tax State Revenue (PNBP). from concessions.

Act. The Director General of Sea Transportation, also said that the positive impact arising from this concession agreement must be in line with the professional operation and management of terminal facilities, one of which is through a good information system and regular reporting in accordance with applicable laws and regulations.

You must be present at the rejection of the concession agreement, representatives from the Legal Bureau of the Ministry of Transportation and ABUPI who initially agreed to start the concession agreement settlement process.