With over 17 000 islands, Indonesia should have a flourishing maritime sector for its domestic and international trade. However in reality, the nation’s maritime sector and its potential as a catalyst for growth has been neglected. Only recently, Indonesia’s Government is optimizing its potential.

President Jokowi’s main agenda and ambition is to turn Indonesia into a global maritime axis.

7-9th of October, the Indonesia Maritime Expo took place and the exhibitors provided various maritime solutions from both international and national companies. In addition to the exhibition, organizer had prepared a two days conference. Some key players highlighted the changes, challenges and opportunities in the market. For further info visit Indonesia Maritime Expo.

Few key takeaways from the conference:

  • Positive regulatory changes: Indonesia has made some positive changes on the maritime sector related regulation. This has created more conducive business environment. It will eliminate the monopoly business practices, broader opportunities and healthy competition etc.
  • 4 operators manage strategic ports: With more than 2000 ports and terminals throughout nation, 111 ports (including the nation’s 25 strategic ports) are managed by the 4 state owned operators. Indonesia has more than 1100 non commercial ports and more than 800 terminals which are managed by private sector
  • Land transport is more convenient today: Land transportation is preferred to sea transportation in Indonesia today. This is due to the high shipment cost compared to the faster delivery and more convenient services provided by land transport (most of them offer door to door delivery instead of picking up at the port).

 

The government’s, public- and private stakeholders’ within the maritime industry predicts new business opportunities to arise in the coming years. It is important for companies to start the footwork early, understand the business climate and develop relationships with key stakeholders.

Tick Tock Consulting can provide support to ensure that you capture these opportunities.