Jakarta unwilling to offer majority stakes in ports
Despite the current administration in Jakarta’s keenness to develop a maritime highway across Indonesia, officials are not budging on allowing foreign investors to hold more than 49% of any port. The ruling – long in place, also counts for airports.
The nation’s transport minister, speaking with the Jakarta Globe, revealed that while other parts of the transportation sector would be opened up to greater foreign control, there was no plans to allow investors to take majority stakes in ports and airports. “This is a sovereignty issue,” Ignatius Jonan told the newspaper.
Announcements to changes in foreign transport holdings in the archipelago are due soon – it remains unclear however if the government will address cabotage issues. Maersk, for one, has said recently it is willing to invest up to $3bn in in Southeast Asia’s most populous nation if cabotage laws are changed.