BOARD OF DIRECTORS' REPORT

implications of this trend for the port business are the need for port infrastructure development around wholesale trade, the possibility of developing international and domestic maritime hubs & spokes, increasingly complex operational processes, and increased risk for port operators and owners.

Currently, maritime container trade in Asia is still centered in China with a regional route volume of 24.4 million TEU and a high volume of trade between China-East Asia and China-Southeast Asia. However, China’s regional route trade volume growth rate in 2019 was 0%. On the other hand, Southeast Asia experienced higher growth in container in/outbound traffic. The Southeast Asian regional route had a trade volume of 40.4 million TEU with a growth rate of 3%.

In the non-container market, the highest trade volume occurred between China and Southeast Asia with a volume reaching 397.7 million tons. The trade volume between Southeast Asia and Northeast Asia was also quite high with 120.1 million tons. In regional routes, Southeast Asia has the higher volume with a volume of 212.3 million Tons, but the growth rate on China’s regional routes is higher with the 2019 growth rate of 10%.

In the face of the economic and port industry conditions, each business entity determined and implemented a strategy to form the basis for the post-merger strategy. PT Pelabuhan Indonesia (Persero) established a long-term post-merger strategy in the 2021-2025 strategic roadmap, which was divided into the following 4 (four) strategy pillars:

  1. World Class Port Transformation

    This strategy pillar is carried out to increase PT Pelabuhan Indonesia (Persero) capabilities as a world-class port service provider. This strategy pillar’s focus is to improve the operation and service performance of PT Pelabuhan Indonesia (Persero) ports, by improving the operational quality standards of PT Pelabuhan Indonesia (Persero) ports by utilizing digital technology, while improving the quality of port services is carried out by providing customer-centric services. In addition, performance improvement is also carried out by starting the development of PT Pelabuhan Indonesia (Persero) sustainable ports. The final focus of this pillar is to prepare PT Pelabuhan Indonesia (Persero) to expand regionally in the Southeast Asian Region.

  2. Strengthening the Logistics Ecosystem

    The second strategic pillar is carried out to build relationships with marine and land logistics ecosystem players to optimize national logistics costs. The focus of this strategic pillar is to establish cooperation and also the potential for system or service integration with sea and land logistics players so that logistics costs can be optimized, as well as establishes