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Indonesia may review Pelindo II's JICT concession extension contract with HPH

Indonesia may review Pelindo II's JICT concession extension contract with HPH
The latest changes in Indonesia's port policy could have wider reaching consequences for the big players with the Transportation Ministry raising the possibility of reviewing a controversial contract between Pelindo II and Hong Kong's Hutchison Port Holdings (HPH), local reports said.

Pelindo II last year extended HPH's rights to operate the Jakarta International Container Terminal (JICT) for another 20 years, five years before the expiry of the existing contract which runs out in 2019. This contract is now at risk after Pelindo II followed its fellow state-owned port operators Pelindo I, II and IV and signed a concession agreement in which Pelindo II accepted its role as a port operator only and not as a port operator and regulator as well.

“Based on today’s agreement, there should be a review into the contract regarding the operatorship of JICT,” Transport Ministry director for port and dredging Mauritz Sibarani was quoted as saying.

Mauritz noted however, that the ministry could not immediately review or cancel the contract because the office had not yet received a copy of it and indeed barely knew of its existence, having found out through media reports. “We didn’t even know what date it was signed,” he said.

Meanwhile, Tanjung Priok Port Authority head Bay Hasani said that cancellation of the contract was possible.

“Once we know the details of the contract — whether it is B2B [business to business] or a concession — we can make adjustments. We will also check if Pelindo II acts as a regulator or operator,” he added. In addition, Bay said a cancellation would be possible if the Supreme Audit Agency (BPK), which is currently doing an audit on Pelindo II, recommended one.