This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content. Investor Daily Pemerintah Tetapkan Pelayaran Swasta Layani 7 Trayek Tol Laut 05 April 2019 By Thresa Sandra Desfika Jakarta — The Transportation Ministry picked three private shipping companies as the winners of the operator tender for seven 2019 maritime highway transportation routes. The three companies are PT Mentari Sejati Perkasa Mentari Lines, PT Pelayaran Tempuran Emas Tbk Temas Line, and PT Pelangi Tunggal Ika. The three companies were pronounced the tender winners on 25 March 2019 and the seven routes will soon begin operation to serve the public across many regions. Director of Sea Traffic and Transportation in the Transportation Ministry, Capt. Wisnu Handoko, mentioned that Mentari Lines will become the operator of four routes, namely H-2 route covering Tanjung Perak – Wanci – Namlea – Namrole – Tanjung Perak, H-3 route covering Tanjung Perak – Tenau – Saumlaki – Dobo – Tanjung Perak, T-9 route between Tanjung Perak – Oransbari – Waren – Teba – Ambon – Tanjung Perak, and T-12 route covering Saumlaki – Larat – Teba – Moa – Kisar – Kalabahi – Saumlaki. Meanwhile, Temas Line will be the operator of T-11 route Tanjung Perak – Fakfak – Kaimana – Timika – Agats – Boven Digoel – Tanjung Perak. “While PT Pelangi Tunggal Ika will be the operator of Tenau – Rote – Sabu – Lamakera – Tenau route T-13 and Tenau – Lewoleba – Tabilota – Larantuka – Marapokot – Tenau route T-14,” explained Wisnu in his official statement in Jakarta, Thursday 4/4. According to Wisnu, there are differences in the forms of subsidies provided by the government for the maritime highway operators. If the services use state ships built by the government, the subsidy will be given in the form of ship operating subsidy. If the services use operator-owned ships, the subsidy will be provided in the form of container rent subsidy. “Especially for routes that use state ships, we have asked the tender winning operators to use their ships should the load increases one day,” said Wisnu. This year, the government has allocated a budget of Rp222 billion for maritime highway subsidy program to run 18 routes, which consist of 11 routes operated by state-owned enterprises and seven routes operated by private shipping companies. “Before, early this year, the Transportation Ministry has assigned three state-owned enterprises to serve 11 maritime highway routes, namely PT Pelni Persero, PT ASDP Indonesia Ferry Persero, and PT Djakarta Lloyd Persero, which presently have been fully operating,” said Wisnu. Dumai – Malaka Route On the other hand, Secretary of Sea Transportation Directorate General Arif Toha revealed that his agency is aiming to immediately operate roll on-roll off roro ships for Dumai – Malaka route at the end of 2019. The Dumai – Malaka roro route is a pilot project for ASEAN Single Shipping Market ASSM between Indonesia and Malaysia. Indonesia has been holding intensive discussions on preparation for Dumai – Malaka roro operation since the 2nd Joint Task Force Meeting in Palembang, Indonesia in September 2018. The discussion was then followed up in the 3rd Task Force Malaka – Dumai RoRo Ferry Operation Meeting held in Kuala Lumpur, Malaysia, Thursday 4/4. “In this meeting, we discussed a follow-up to the previous meeting which led to a number of deals between Indonesia and Malaysia,” said Arif. In the previous meeting, one of the discussions was on Standard Operation and Procedure SOP for Customs, Immigration, Quarantine and Security CIQS in both countries. It has been agreed that the two countries should carry out and exercise the existing CIQS requirements in each country. Therefore, said Toha, his agency will not draft a new SOP or rules, but it will harmonise port SOP in each country. “All CIQS Departments will work together with respective port operators and they the operators will later receive review and feedback on CIQS technical requirements and administration in the implementation of Dumai – Malaka roro at each port,” explained Arif. Requirements in land transportation regulations are also among the focuses of discussion between Indonesia and Malaysia. The two countries agree to improve existing regulations on land transportation in their countries. In addition, SOP needs to be decided prior to the implementation of Dumai – Malaka roro service, including restrictions on the types of vehicles allowed to enter the two countries. “In relation to that matter, we have agreed to form sub-committee which will specifically discuss about land transportation with a working period of four months,” revealed Arif. Arief went on to say that the sub-committee will go for a site visit to Dumai in July 2019 to check road conditions in Dumai. “The Dumai – Malaka roro is expected to be implemented through the signing of memorandum of understanding between Indonesia and Malaysia at the end of this year,” added Arif.