Reuters reports that more than a hundred port workers went on strike at Jakarta’s Tanjung Priok Port this week.
The union is demanding that the CEO of the port operator, PT Pelabuhan Indonesia II (Pelindo), steps down. They blame him for a lack of transparency surrounding the expansion plans at the port.
Rima Novianti, corporate secretary for port operator PT Pelabuhan Indonesia II (Pelindo) told Reuters that there were no disruptions to work. The strike started on Sunday and was expected to continue until late on Christmas Eve.
Pelindo wants to expand and modernize its port facilities at Tanjung Priok, as it struggles to meet rising demand following years of economic growth above 6 percent.
According to Novianti, “some of the workers are unhappy with the transformation that istaking place with human capital and port development .”
Tanjung Priok Port handles around 50% of oil, containers and dry bulk good in and out of Indonesia. Indonesia is the world’s largest producer of palm oil. Global commodity markets were not impacted by the strike, as the traders said.
Pelindo II operates 12 ports in 10 of Indonesia’s provinces. The operator did not respond to a request for a comment on the strikes by Port Strategy.
RCL Agencies will continue to monitor the situation and will provide updates as they become available.