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Major Indonesian port operators sign concession agreement

Major Indonesian port operators sign concession agreement
Indonesian state-owned port operators PT Pelindo I, III and IV have signed a concession agreement with the Transportation Ministry, effectively ending their role as both operators and regulators, local reports said.

The agreement, in accordance with Law No. 17/2008 on shipping, stipulates that the services provided by port operators should be based on concession, as opposed to previously, when they also served as regulators.

Transportation Minister Ignasius Jonan said that the concession rate had been temporarily set at a minimum of 2.5% of each port operator’s gross annual revenue, and will vary depending on the development of the ports.

PT Pelindo III president director Djarwo Surjanto said that the firm would abide by the law, although the agreement could potentially reduce their profits.

The biggest port operator in Indonesia, PT Pelindo II, however postponed signing the agreement as ts president director Richard Lino had to attend a National Police questioning regarding a corruption case.