Since the very beginnings of human trade itself, the sea has been a primary mode of cargo transportation, and today the forces of mass production are still indebted to the sea as method of moving their goods around the world. As one of the largest archipelagic nations in the world, seaports have secured a vital place in the Indonesian economy and continue to prove their commercial worth.
At present, all port activities in the country are controlled by the state-owned enterprise better-known as Pelindo I – IV. This was created through Presidential Regulations No. 56 – 59 of 1991. With such a huge investment being monopolized by one legal entity, the question of whether or not the private sector has the slightest chance of dipping its hand into port-related business activity is a pertinent one.
Assegaf Hamzah and Partner, as well as Chandra Hamzah and Partner have offered an answer to this question by referring to the Maritime Law. This law leaves no interpretative room for any private-sector involvement in the country’s ports, as it only specifies the role of central government as well as State and Regional-Owned Enterprises where port industries are concerned.
“It is stated specifically by the Law, and there is no ambiguity,” Mr. Chandra Hamzah recently stated.
Referring to Article 344 (3) of the Maritime Law, which states that, “Business activities conducted at ports organized by State-Owned Enterprises will continue to be organized by the State-Owned Enterprise in question.” In essence, the State-Owned Enterprises which this Article refers to are the State-Owned Enterprises formulated through the Presidential Regulation mentioned above.
Article 90 (1-4) of the Maritime Law also regulates port-related several business activities, and this includes all port basins, operational services, and land activities. These business activities are to be implemented according to the relevant laws and regulations.
“These rights are extended by the Law itself to three parties, namely the central government, the State-Owned Enterprise, and the Regional-Owned Enterprise. If the Law regulates such facts and there happens to be a concession, then it would lose its legal basis,” Mr. Hamzah further explained.
A Faculty Law educator at the University of Indonesia, Kurnia Toha is in full support of the state-controlled policy, as he believes that such a large economic doorway as consists in the country’s ports should be able to compete with those of other nations, instead of domestically-owned businesses struggling to compete with the state and against each other.
“Indonesian ports will and should remain firmly in the hands of the State-Owned Enterprise,” Mr. Toha stated firmly.
Can this type of control be considered a monopoly? Referring to Article 51 of the Antitrust Law, “Monopoly and/or central-business activities dealing with production and/or sales of goods/services that so many depend on for their livelihoods, as well as imperative production branches for the state, are regulated under the Law and organized by the State-Owned Enterprise, entities and/or institutions formed or appointed by the government.”
Meanwhile, competitive behavior with regard to port business activities are regulated under Article 91 (1-2). Mr. Toha further emphasized that to support the Law and the Constitution, the implementing regulation must be made with close reference to the law itself.
Since the very beginnings of human trade itself, the sea has been a primary mode of cargo transportation, and today the forces of mass production are still indebted to the sea as method of moving their goods around the world. As one of the largest archipelagic nations in the world, seaports have secured a vital place in the Indonesian economy and continue to prove their commercial worth.
At present, all port activities in the country are controlled by the state-owned enterprise better-known as Pelindo I – IV. This was created through Presidential Regulations No. 56 – 59 of 1991. With such a huge investment being monopolized by one legal entity, the question of whether or not the private sector has the slightest chance of dipping its hand into port-related business activity is a pertinent one.
Assegaf Hamzah and Partner, as well as Chandra Hamzah and Partner have offered an answer to this question by referring to the Maritime Law. This law leaves no interpretative room for any private-sector involvement in the country’s ports, as it only specifies the role of central government as well as State and Regional-Owned Enterprises where port industries are concerned.
“It is stated specifically by the Law, and there is no ambiguity,” Mr. Chandra Hamzah recently stated.
Referring to Article 344 (3) of the Maritime Law, which states that, “Business activities conducted at ports organized by State-Owned Enterprises will continue to be organized by the State-Owned Enterprise in question.” In essence, the State-Owned Enterprises which this Article refers to are the State-Owned Enterprises formulated through the Presidential Regulation mentioned above.
Article 90 (1-4) of the Maritime Law also regulates port-related several business activities, and this includes all port basins, operational services, and land activities. These business activities are to be implemented according to the relevant laws and regulations.
“These rights are extended by the Law itself to three parties, namely the central government, the State-Owned Enterprise, and the Regional-Owned Enterprise. If the Law regulates such facts and there happens to be a concession, then it would lose its legal basis,” Mr. Hamzah further explained.
A Faculty Law educator at the University of Indonesia, Kurnia Toha is in full support of the state-controlled policy, as he believes that such a large economic doorway as consists in the country’s ports should be able to compete with those of other nations, instead of domestically-owned businesses struggling to compete with the state and against each other.
“Indonesian ports will and should remain firmly in the hands of the State-Owned Enterprise,” Mr. Toha stated firmly.
Can this type of control be considered a monopoly? Referring to Article 51 of the Antitrust Law, “Monopoly and/or central-business activities dealing with production and/or sales of goods/services that so many depend on for their livelihoods, as well as imperative production branches for the state, are regulated under the Law and organized by the State-Owned Enterprise, entities and/or institutions formed or appointed by the government.”
Meanwhile, competitive behavior with regard to port business activities are regulated under Article 91 (1-2). Mr. Toha further emphasized that to support the Law and the Constitution, the implementing regulation must be made with close reference to the law itself.