The port sector is an industrial sector that become priority for Indonesian government. The status quo in the governance and investment climate of the port sector has been likely change by the recent port reforms policy from government. The port reform was started by the implementation of Law No.17 Year 2008 (Shipping Law). Specifically, the concession agreements provide more certainty to the attribution of roles between port regulators and port operators. On the other hand, the concession agreements may also take pressure off the Badan Usaha Pelabuhan (BUP) like Pelindo’s as they may feel more secure of their monopoly rights for the term of the agreement. This could adversely affect the efficiency of their operations and allow to increase their rents at the expenses of the users.
Key Issues At Implementation of Shipping Law
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