The Indonesian government has started reorganizing the authorities of Batam Port in Riau Islands as the new system is planned to be implemented by the end of this year.
The Transportation Ministry and the Batam Indonesia Free Trade Zone Authority (BP Batam) signed a memorandum of understanding (MoU) on Tuesday facilitated by the Administrative and Bureaucratic Reform Ministry.
Under the MoU, the Transportation Ministry will act as regulator and party responsible for port security while BP Batam will act as the operator.
“Now the delegation of authority is clear. There is no longer overlapping duties between regulator and operator,” Administrative and Bureaucratic Reform Minister Asman Abnur said after the MoU signing in Jakarta.
He added the Transportation Ministry was required to establish the harbor master office, while BP Batam was required to establish a separated port management office.
The Administrative and Bureaucratic Reform Ministry, meanwhile, will soon finish drafting the government’s regulation on the issue, and is expected to be signed by President Joko “Jokowi” Widodo at the end of this year, Asman added. “We hope the new regulation will be effective next year so that the new system could be implemented,” Asman said.