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Dry Port Project in Entikong Stalls

Bisnis Indonesia, 22 November, 2012, Page 8, Section: Regional
Author not mentioned

Borneo Putra Lestari has seen tariff and legal umbrella issues as obstacles.

PONTIANAK - The plan to develop an international dry port in Entikong, Sanggau Regency, West Kalimantan, has ground to a halt.

The corporation that has been appointed to carry out the construction has not begun the construction due to several issues, one being the absence of legal umbrella.

“Until now, we have not yet found any legal umbrella for an international dry port that connects directly with foreign countries, be it in the form of law, government regulation, or ministerial regulation”, said Hengky R.N, Director of PT Borneo Putra Lestari (BPL), in the Meeting Room of West Kalimantan Regional Secretary on Tuesday (20 November).

In the coordination meeting, which discussed the construction of the dry port, he also explained that the currently existing legal umbrella is relevant specifically for dry ports that are parts of seaport systems. Thus, the legal umbrella is not suitable for the plan to develop the dry port in Entikong.

The dry port in Entikong is intended as a free port that connects directly to the international world, with its own port registration number and is independent from any seaports.

According to Hengky, his company is requested to acquire land for the construction of the dry port. However, this has yet to be realised.

He expressed concern that the land acquisition will instead cause issues in the future, considering the absence of a clear legal umbrella regarding the dry port.

In addition, Hengky also raised the issue of tariff in the dry port, which has not been established until now. “How are we supposed to conduct a feasibility study if the tariff or income of the dry port is still obscure?”

He admitted that there has been a plan for the tariff to be determined later on by the governor. However, for PT BPL, the plan has instead raised a question.

According to Hengky, the question arises since an international dry port with international connection is usually the authority of the central government instead of the governor. “We are thus confused”, he said.

At the beginning of the meeting, Deputy Governor of West Kalimantan, Christiandy Sanjaya, expressed his disappointment toward the company because it has never got to commence the construction. Moreover, the company was also not present in the meeting with National Agency for Borders Management (BNPP) in Jakarta at the end of October.

According to him, the central and local governments strongly agree with the dry port development. However, due to limited budget in the State Budget (APBN) and local government budget (APBD), the development is left up to the private party.

In reality, there are many other private companies that are interested in building the dry port in Entikong. However, PT BPL gets priority because it is a local company. “Unfortunately, the development has not begun since PT BPL, as developer, has objections in regard to the issue of legal umbrella and tariff”, he said.

Christiandy also mentioned that Sanggau Regency Government, West Kalimantan Provincial Government, and the central government, has given their support in regard to the initiation of the dry port development in Entikong. The support have come in many forms, such as the recommendation from Sanggau Regency Government, a letter of support from West Kalimantan Governor, and a letter from Coordinating Ministry for Economic Affairs.

Coordinating Ministry for Economic Affairs considered the development of dry port in Entikong as an implementation of National Logistics System policy.  There was also support from the National Agency for Borders Management provided to PT BPL on 3 October, 2012 containing technical guidelines on dry port development.

“According to the timetable, PT BPL is supposed to have reached the detailed engineering design (DED) phase by December”, he said.

In the meeting, Christiandy also requested inputs from various agencies that are invited into the meeting, such as the Department of Transportation, Regional Office of Ministry of Law and Human Rights, Chamber of Commerce and Industry, Investment Agency, and other associated agencies. (k36)  (