Ferry shipping in Indonesia

Project duration
01.2009 - 10.2009
Projekt order
Ministry of Transportation, Jakarta

Indonesia belongs to the regional centers of interest of the ISL. Owing to its insular structure the country is one of the largest in the world and its ferry shipping network replaces the railway and motorway networks of other countries. Thus, a well organized ferry transport is not only a must for trade and industry but also for the development of the more distant parts of the country and the welfare of their inhabitants. Like everywhere, a network including routes which cannot cover their costs can only be operated by the state or with state subsidies. The company which provides such network spanning all over the country with a fleet of around 30 ships is PT. PELNI. Over many years the company showed a reasonable balance sheet, but the rise of fuel costs and the emergence of low fare airlines increased the losses significantly.

The task of the ISL was to scrutinize all expenses and earnings and to improve the financial performance. An experienced team discussed the problems with several stakeholders and collected data during ferry trips on board and in the ports. Finally a lot of recommendations could be made for increased earnings and decreased expenses. They included slow steaming on selected route legs, a reconstruction of the tariff system, an improved calculation of the PSO subsidies, changes to some routings, the reconstruction and new construction of ships and many more. Some of the recommendations have an immediate effect; others are the basis of a strategy change with focus on increasing the share of cargo transport.

The positive effect for Germany is the intention to order more ferries from German shipyards.