SOE Port Official Merger, Erick Thohir Melts Pelindo I, III, And IV Into One

Source: VOI

Date: 2 September 2021

The government through the Ministry of State-Owned Enterprises (BUMN) has decided to merge four port operator companies, namely PT Pelabuhan Indonesia (Pelindo) I, II, III, and IV into one Pelindo.

Deputy Minister of SOEs Kartika Wirjoatmodjo said that this merger was carried out in order to create a stronger national port industry, and improve maritime connectivity throughout Indonesia.

"The government hopes that the merger will improve the performance and competitiveness of SOEs in the port sector," he said at a press conference on the merger of the state entities as quoted on Thursday, September 2.

Tiko, Kartika's nickname, said that the integration of Pelindo is part of the government's strategic program and the initiative of the Ministry of SOEs to continue the process of consolidating state-owned companies.

"This strategy is proposed to be included in the National Strategic Program (PSN) in accordance with the President's direction," said the subordinate of SOE Minister Erick Thohir.

To note, based on studies that have been carried out on the option of restructuring the Port BUMN, the merger is claimed to be the most suitable option because it can maximize synergies and create added value.

"In the merger plan, Pelindo II will be the recipient company for the merger. Meanwhile, Pelindo I, Pelindo III and Pelindo IV will be dissolved by law without a liquidation process," he said.

It is planned that the Pelindo integration process will be carried out in early next month or October 2021. Meanwhile, the Government Regulation regarding the merger of Port SOEs is still in the process of issuance. Then it will be effective after the signing of the Deed of Merger.

On the same occasion, Pelindo II President Director Arif Suhartono said that in the future Pelindo would have better strategic control and control.

"Development of planning will become more holistic for the port network which will ultimately lower logistics costs," he said.

Furthermore, the integrated Pelindo will not be managed based on region but based on business lines so that it can focus on developing business potential in the future.

According to Arif, focusing on business clusters will improve capabilities and expertise which will have an impact on increasing customer satisfaction through better service quality and increased efficiency in the use of financial resources, assets, and human resources.

"The integration of Pelindo has many benefits for the company as well as for the national economy. One of them is by opening up opportunities for companies to go global. This integration will increase Pelindo's position to become the 8th largest container terminal operator in the world with a total container throughput of 16.7 million TEUs," he concluded.