Busiest Indonesian Port to be Affected by Strike Next Week

Around 2,000 union members are expected to go on strike from May 15-20 at the Tanjung Priok port to protest against an affiliate of Hutchinson Ports, Reuters reports.  All port operations would be halted during the strike, said Nova Sofyan Hakim, chairman of the union at PT Jakarta International Container Terminal (JICT).

The industrial action is expected to disrupt shipping operations at Jakarta’s main port, which is Indonesia’s biggest gateway port and is completing upgrading works to boost annual capacity to 11.5m TEU

The union opposes a decision by state-owned port operator Pelindo II to extend an operating contract held by JICT, a company that Pelindo II runs with Hutchison Ports to handle container loading and unloading.

JICT’s contract was due to expire in 2019, but in 2014 Pelindo II extended it until 2039. Pelindo II’s decision to continue to partner with Hutchison drew public criticism and parliament has been investigating the extension since 2015.

A parliamentary committee in February said it found the contract extension to have potentially caused state losses of 36 trillion rupiah ($2.70 billion) and that it was awarded without shareholders’ approval, including the government, media reported.

Government officials expressed concerns the strike could hurt Indonesian exports.

Please be guided accordingly. RCL Agencies will provide more updates once available.