Indonesia: Investment in ports needs legal certainty
Investment in port development needs legal certainty owing to the fact that though the business in this sector is open wide yet challenges that could hamper the continuation of the business are also there.
“We really need to invest in ports, but the government needs to provide legal certainty for prospective operators in the business,” National Maritime Institute Director Siswanto Rusdi said.
He made the remarks in a discussion titled “Role and Fate of Private Investment in Maritime Industry in an Efforts to increase National Logistics Performance” in Jakarta.
Siswanto said port business has a great opportunity for Indonesia, an archipelagic country with the second longest coastline in the world.
Moreover, in the future, the utilization of natural resources will eventually run out.
“What can be developed in the next five years in my opinion are ports. Even we will build 5,000 ports, they will not be adequate,” he said.
However, he reminded that the big investment in this sector should be protected.
He said that there are a number of adversaries in the port business that cause legal uncertainty for the investment in this sector. This condition is feared to lay a bad precedent for the investment climate.
“For investors, the absence of turmoil would serve as a good point for investment, particularly for foreign investors” Siswanto said.
On the occasion, the Head of the National Logistics Institution of the Coordinating Ministry for Economic Affairs, Farah Heliantina, explained that the maritime sector could be the backbone of Indonesia`s economy.
However, she stressed that there needs to be a clear guarantee for the port management business that requires such a large investment.
“This sector has a bright future but sharing economy and the the continuation of policies should be underlined and they are important. The maritime industry is a long-term investment,” she said.