Govt asked to restore SOE's role in transportation and logistic sector

REPUBLIKA.CO.ID, JAKARTA -- The next president is expected to restore the role of state owned enterprises (SOE) in transportation and logistic sector, from profit oriented to service oriented.

Deputy Chairman of Indonesian Chamber of Commerce and Industry (Kadin) for Logistic Affairs, Carmelita Hartoto said that both of seaport and airport should not be imposed by dividend liability and high profit target, but in terms of service efficiency and productivity to create more competitive tariff.

"Both sectors are still in state's control," Hartoto said recently.

Logistic businessmen also complained about the tariff approach in solving a number of problems, such as poor dwelling time at Tanjung Priok port. According to Hartoto, the profit oriented forced SOE's companies to raise the tariff. It made logistic costs increasing and becoming expensive.

"Indonesia is the most wasteful country in term of logistic costs, which is 26 percent of gross domestic product (GDP). It should be reviewed and SOE's companies should balance it.