First phase of Indonesia’s ‘pendulum’ program to cost $159 M

The Indonesian government will allocate IDR1.5 trillion (US$159 million) for the first phase of the Pendulum Nusantara (Pendulum of the Archipelago), a seafreight transport program that aims to cut logistics cost by improving the movement of goods along the country’s waterways.

Pendulum Nusantara calls for the creation of a single sea corridor, with six seaports—Belawan, Batam, Tanjung Priok, Tanjung Perak, Makassar and Sorong—as the main gateways for shipping activity.

A “mother ship” would travel regularly through the main seaports “like a pendulum,” with the schedule of the smaller vessels built around its movements, according to Deputy Transportation Minister Bambang Susantono, who made the announcement last week.

“It will cut domestic logistics costs by a third or a half,” he was quoted as saying by the Jakarta Globe.

The first phase involves developing the existing ports so they can handle ships of 3,000 20-foot equivalent units.

Also part of the overall plan is the development of new ports in Batam and Sorong for IDR10 trillion each, and the construction of Jakarta’s second international seaport, New Priok, for IDR20 trillion.

Poor infrastructure is a major factor in the high transportation costs in Indonesia. The cost of delivering goods by sea rose 18 percent in the first quarter of this year compared to the same period in 2011, data from the Central Statistics Agency showed.

Photo courtesy of  IPC