In other developments, preparation is underway for the merger of JICT and Koja Container Terminal, which is also in Tanjung Priok, as part of a program to develop Jakarta into an international hub, said Syafii.
Indonesian state-owned operator wants to regain control of terminal
Indonesian state-owned port operator PT Pelabuhan Indonesia (Pelindo) II wants to buy back a 51% stake in the Jakarta International Container Terminal (JICT) from Hong Kong's Hutchison Port Holdings. Pelindo II sold the 51% stake to HPH subsidiary Grosbeak Ltd for $215 million during the privatization of JICT in 1999, which saw it gaining the remaining 48.9% while JICT employees got the rest.Abdullah Syaifuddin, president director of Pelindo II, said that HPH has been informed about their intentions to buy back the stake this year. Syaifuddin said the company has already set aside sufficient funds for the buyback of the container terminal located in Tanjung Priok. HPH has rejected earlier proposals by Pelindo II to buy back the stake. Pelindo II says it wants to to control JICT to ensure its competitiveness in the face of competition from other container facilities. Syaifuddin said Pelindo II could not embark on any upgrading, improvement or expansion projects for JICT since it is only a minority shareholder. According to the Minister of Transportation Jusman Syafii Djamal the buyback is “the right of Pelindo II.”