With the Traffic Separation Scheme (TSS) in ALKI, KlP is Optimistic in Bringing Progress to the Indonesian Economy

The sea lanes of communication pass through seven straits which are politically and economically highlystrategic due to their involvement in the survival of a number of countries, four of which are under Indonesian sovereignty. Namely; located in the territory of Indonesia’s sovereignty are the Strait of Malacca, the Sunda Strait, the Lombok Strait and the Makassar Strait.

In the era of Trans-Pacific trade, the Malacca Strait takes a very important role due to its presence as the shortest sea route that is able to connect two important oceans in the world, namely the Indian and Pacific Oceans.

The trade route from the Indian Ocean to the Pacific Ocean will cause the Sunda Strait to become a strategic route between these two oceans, which connects the South China Sea and the Indian Ocean.

The Traffic Separation Scheme (TSS) in the Indonesian Archipelagic Sea Lanes (ALKI) in the Sunda Strait and Lombok Strait by 2020, Indonesia can benefit economically from this policy.

The CEO of Krakatau International Port, Akbar Djohan, said that the implementation of the TSS will have a positive impact for the future, along with the increase in shipping volume and activities. Basically; Indonesia, Fiji, Papua New Guinea, the Bahamas, and the Philippines are the 5 sovereign countries as stated in the 1982 UNCLOS as countries that qualify as archipelagic countries.

He also said that ALKI—which is a sea lane in Indonesian waters that is free to be navigable by international ships (freedom of passage)—was stated in UNCLOS 1982.

Krakatau International Port, which is a subsidiary of PT Krakatau Steel (Persero) Tbk, under PT. Krakatau Bandar Samudera is a national asset due to its presence as a port which is an integrated industrial port and is also located right in the Sunda Strait, which is the route of ALKI. Until now, Krakatau International Port is 25 years old and has 17 docks with a depth of minus 21 meters. As for one pier, it has a length of up to 3.5 kilometers,” said Akbar Djohan.

The Head of the Logistics and Supply Chain Agency of the Indonesian Chamber of Commerce and Industry (KADIN) added that, “due to the highly strategic placement of KIP in the Sunda Strait, which is located in the Indonesian Archipelago Sea Lane or ALKI I, it is a golden location for ships that move and sail in the Sunda Strait, with an estimation of 53,000 ships per year moving through it. We will be able to realize this potential together. Therefore; it is highly appropriate of KIP’s ability to provide integrated services to attract these ships, at least 10 percent of which can stop at Krakatau International Port.”

“Integration services, starting from bunkering services that we have collaborated with Pertamina. So that KIP hopes that apart from being an integrated industrial port, it can also become an energy supply chain port,” explained Akbar.

Akbar added that to increase the demand for ships with international standard services, Krakatau International Port is developing the first bunkering. Thus, ships that operate and sail in the Sunda Strait can refuel and operate within other logistics services.

“In addition to bunkering Marine Fuel Oil (MFO), KIP will realize integrated port services by completing its port facilities such as the Port Reception Facility, Ship Chandler, first emergency call for ships and crew members (ABK), especially during the COVID-19 pandemic, and crew change. So starting from high speed diesel, low sulfur, MFO, we can serve this for the needs of both international commercial ships and domestic shipping vessels,” said Akbar.

The Secretary General of the Indonesian Logistics and Forwarders Association (ALFI) also explained that until now, Krakatau International Port serves 800 ships per year. As many as 70 percent of them are foreign ships. This has become a captive market (potential market) for Indonesia through SOEs to carry out activities that bring economic value to the acceleration and economic growth in Indonesia.

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