BOARD OF DIRECTORS' REPORT

The company also faced a business capability gap, due to the underdevelopment of its service capabilities and abilities in the logistics, hinterland development, marine, and port services segments. To deal with these obstacles, the Company worked with potential systems or services integration with sea and land logistics businesses so that logistics costs could be optimized, as well as collaborated with industrial/logistics areas to encourage increased goods traffic. This cooperation with industrial/logistics areas was carried out to support connectivity with the hinterland section, as well as facilitate the provision of end-to-end logistics services for industry players. Relationships exist with industrial estate players in the same area as the PT Pelabuhan Indonesia (Persero) port who have the potential to improve services for customers of PT Pelabuhan Indonesia (Persero) in terms of speed and convenience.

BUSINESS PROSPECTS ANALYSIS

Global economic growth is predicted to continue a positive trend until 2026 although it will follow an upward-sloping curve from the growth seen in 2021 of 5.5%. This positive growth will be followed by growth in the flow of goods internationally. The pandemic created a new habit trend, one being the move to online shopping, and the e-commerce business has increased rapidly in response to this change. Most e-commerce goods are transported in container packaging and this will have a positive effect on global container traffic growth. This growth potential can be optimized by developing international transshipment in the Pelindo port areas located on the world’s shipping lanes.

For non-container cargo, the market for domestic goods traffic still has a huge potential as currently Pelindo only has a small market share of the national market. Pelindo will cooperate in several schemes with non-container ports including the Special Terminal (Tersus)/Terminal for Self Interest (TUKS) and ports belonging to Government Ministries/Institutions (K/L). Pelindo’s weakness in establishling these cooperations is that the tariffs are generally higher than private businesses. In addition, Pelindo needs to formulate additional value for its partners who own/ manage domestic non-container ports.

Current forecasts for improving economic conditions will provide opportunities for Pelindo to grow. Pelindo’s opportunities include:

  1. Government Vision/Program
  2. Maritime infrastructure development and the intensification of Government programs in the maritime sector have the potential to support Pelindo's integration plan.

  3. Potential for Port Service and Value Chain Development
    1. Developing a more integrated port service offering with services in the logistics, hinterland development,