Batam-Singapore is only 18 km but fare reaches $500

Singaporean forwarders enjoy $700 per 40 feet containers
Singaporean forwarders enjoy $700 per 40 feet containers

Batam Enterprises Agency  or BP Batam continues to inventory a number of issues that are considered to inhibit industrial activity in Batam. Among them the problem of container tariffs from Batam to Singapore is much more expensive than other countries.

BATAM (infolog); Head of BP Batam Lukita Dinarsyah Tuwo said, for containers measuring 20 feet destination Batam-Singapore fare reached 500 US dollars.

The tariff is much more expensive than Japan, Korea and China with the same goal, namely Singapore.

“From Japan to Singapore only 280 US dollars. So also from Korea and China, “said Lukita during a discussion with the manager of Batamindo Industrial Estate at Wisma Batamindo, Monday (5/2) as quoted by Batampos.co.id as saying.

“The distance from Batam to Singapore is only 18 kilometers,” said Lukita.

The cause of the high container tariffs from Batam, said Lukita, due to lack of capacity Port of Batuampar. So that large bertonase ship can not lean in the port.

As a result, containers to be shipped to Singapore must be brought by a small vessel to Singapore. This is what makes the container tariff from Batam exorbitant.

So is the delivery of containers from Singapore to Batam. Containers to be transported to Batam must be unloaded in Singapore and transferred to a small vessel to be shipped to Batam. So there are additional costs that make Singapore-Batam container tariffs melammbung.

After arriving in Batam, containers containing raw materials or semi-finished goods are processed. Once completed, it should be loaded again in small ships to Singapore to then be exported to Europe by large ships.

“The issues we received were related to logistics costs. So we are aware that the Port of Batuampar must be repaired, “he said.

Not only visiting Wisma Batamindo, the leadership of BP Batam also saw the production process at PT Infineon Technologies in Batamindo Industrial Zone.

In addition to logistical barriers, industrial estate entrepreneurs also suggested that the implementation of the Free Trade Zone (FTZ) regulation stipulated in Regulation of the Minister of Finance (PMK) 229/2017 should be implemented immediately.

“They want the results of production here immediately sent to other areas in Indonesia. So it must be implemented immediately, “he explained.

Then the industrial estate entrepreneur also asked when the second flyover bridge was built. They consider the construction of a new flyover will further facilitate the logistics process from airports and ports to industrial areas.

“Yes, they are waiting for the second flyover plan and this is already planned by Pemko (municipality) and the Ministry of Public Works and People’s Housing,” he explained.

General Manager of PT Batamindo Investment Cakrawala, Mook Soi Wah, said daily issues such as congestion and infrastructure problems should also be a priority for BP Batam.

“Road infrastructure is built so that the flow of traffic smoothly,” he explained.

Next is to develop Batu Port to make Batam more competitive because then the logistics cost will decrease.

“I really appreciate their concern and believe the leadership of BP Batam will continue our suggestion,” he said

Meanwhile, Chairman of the Association of Industrial Zone (HKI) Kepri, Oka Simatupang admitted deeply appreciate the visit of BP Batam. Their advice is also well accommodated.

“Yes, about the limited restriction is also one of the issues we raised, so that the delegation enough in BP Batam alone,” he explained.

Next is the road infrastructure from Mukakuning to Batamcentre and Batuampar should be widened.

“Because at certain hours jammed quite badly,” he explained.

In other words, for the development of Batam in the future, industrial estate entrepreneurs asked for an important point of concern is to minimize logistics costs.

“Effective costs are needed to compete with neighboring countries such as Malaysia, Vietnam, Myanmar, the Philippines, Thailand and the surrounding areas,” Oka said.

According to Oka, certainty through investment guarantee is necessary for the existing subsidiaries in Batam to convince their headquarters to want to expand business in Batam.

“It’s not easy for companies to convince their headquarters. Because they also have to compete with similar subsidiaries in other ASEAN countries, “he said. (ac)

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