The subsidies in the sea toll road program must be accompanied by other instruments for minimizing price differences.
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Kompas/Fransiskus Pati Herin
Goods transported on so-called sea-toll vessels are carried by motorboat from Saumlaki City to Selaru Island in West Maluku Tenggara regency, Maluku, on Sunday (28/1). While the vessels were hoped to bring down logistical costs, the prices of goods remain high.
MAKASSAR, KOMPAS — The subsidies in the sea toll road program must be accompanied by other instruments for minimizing price differences. This is because many factors affect the pricing mechanism in regions.
Agussalim, a lecturer at the Economics and Business School of Makassar’s Hasanuddin University, said that subsidies could not be the sea toll road program’s sole instrument for alleviating the price disparity. "Even though transportation has already been subsidized, if other pricing factors are not corrected, it is difficult to expect prices to decline," he said Tuesday (6/2).
He mentioned alternative instruments such as distribution patterns, distribution speed and the availability of goods. The country’s eastern regions had thus far depended on goods transported from other areas, so the reliability of distribution was an important key.
Moreover, Agussalim said, in the long term, regional economies had also been encouraged to produce the goods that had thus far been imported from other areas. This would help reduce the regional trade deficit for a more equal trade balance, which would in turn lead to lower logistics costs. "As long as the flow of goods is only one way, logistics costs will remain high," he said.
Meanwhile, the Transportation Ministry will optimize the sea toll road by integrating it with the Rumah Kita (logistics center) program this year. This is intended to achieve the program’s targets of reducing the price differences between the western and eastern regions.
Sea Traffic and Transportation director Dwi Budi Sutrisno of the Transportation Ministry’s Sea Transportation directorate general disclosed the planned integration of the sea toll road and Rumah Kita programs in a recent interview. "Up to 19 locations have been prepared as Rumah Kita, or logistics centers, to warehouse goods to accommodate the logistics and distribution of goods in the regions," Dwi Budi said.
The management of Rumah Kita will fall under the responsibility of state-owned sea transportation companies, such as PT Pelindo I for Nias and Mentawai, PT Pelindo II (Natuna and Tahuna) and PT Pelindo III (Dompu, Waingapu, Rote, and Kalabahi), as well as PT Pelindo IV (Nabire, Tobelo, Sebatik, Tidore, and Sangatta/Lhoktuan), PT Pelni (Morotai, Saumlaki, Manokwari, and Timika) and PT ASDP (Merauke, Namlea).
The state-owned enterprises will be in charge of developing work plans and facilities for the Rumah Kita program, which will be central to the efforts to control the price disparity.
New application
Moreover, in order to prevent monopolization, maintain the types of cargo and ensure that the sea toll road subsidy reaches the appropriate target, the Sea Transportation directorate general is readying the Loading and Stowage Information (IMRK) application on the quota and priority of goods, schedules, service standards and provision of valid and complete shipping data. The information is needed to facilitate proper and accountable decision-making.
The IMRK app will also play a part in controlling the price disparity by utilizing its data in supervising the selling prices of first- and second-tier distributors.
Pelindo IV-Manokwari general manager Teguh Firdaus suggested that special labels be developed for goods transported by sea toll road vessels. The aim would be to enable the public to be aware of and monitor the prices of goods under the sea toll road program that they bought from retailers.
West Maluku Tenggara Industry, Trade and Manpower Office head Mesak Rahandekut said his team would inventory the goods prices in a number of outlets in Saumlaki, the regency capital, referring to the goods transported by sea toll road vessels.
Later, the office will also send a team to Surabaya to check the prices of goods there. The prices in Surabaya will be used as the benchmark for adjusting the prices in Saumlaki.
