Indonesia eases private investment in RoRo logistics

Jakarta (ANTARA) - Indonesia is removing business barriers and additional operational costs to encourage private investment in roll-on/roll-off (RoRo) logistics shipping, Transportation Minister Dudy Purwagandhi said.

During a media briefing in Jakarta on Friday evening, he said the government welcomes businesses interested in investing in RoRo logistics services, provided the projects are commercially viable.

"We are removing obstacles so businesses can operate more smoothly without incurring additional costs," Dudy remarked.

According to the minister, the government will not restrict private participation in the sector, saying broader involvement is needed to strengthen the country's logistics system.

He clarified that no subsidy scheme would be provided for RoRo vessel operators because logistics services are commercial businesses that must be managed based on each company's economic considerations.

Instead, the government is committed to creating a more favorable business climate by removing barriers, including additional costs and cumbersome licensing procedures.

Dudy said eliminating those obstacles would allow companies to focus on improving operational efficiency, making investment in the sector more attractive.

If companies still consider RoRo operations commercially unviable, the underlying factors, particularly market demand, need to be assessed, he added.

To stimulate demand, the government is also preparing various measures, including incentives to encourage greater use of RoRo-based logistics services.

Dudy noted that state-owned ferry operator ASDP Indonesia Ferry has begun planning RoRo container shipping services on several routes.

However, he stressed that the government cannot compel private companies to follow suit because investment decisions depend entirely on each company's financial capacity and business calculations.

The minister expressed confidence that expanding RoRo logistics services would help reduce the burden on roads by shifting part of freight transportation from trucks to sea routes.

He added that stronger demand and more competitive shipping costs would encourage businesses to move more cargo by sea, improving the efficiency of Indonesia's national logistics system.

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Translator: Muhammad Harianto, Raka Adji

Editor: Anton Santoso

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