INDONESIA: Port Tariff Reform

The proposed activity aims to improve opportunities for private sector investments in the port sector in Indonesia, particularly in domestic ports, by reforming the methods applied by the Ministry of Transportation to regulate port tariffs, enhance the ability of the Ministry of Transportation to set and collect government fees based on cost recovery and investment needs in the port in areas where the Ministry of Transportation is responsible (a.o. access channels, basins) and accommodate these correctly in the port master planning process, as well as assisting the Ministry of Transportation in identifying subsidy needs and how to most optimally set the subsidy and effectively implement, disburse and manage the said subsidies.
This technical assistance to support the Ministry of Transportation of Indonesia in advancing port tariff reform will be built on the findings and recommendations of the earlier World Bank study on Port Tariff Levels and Structure in Indonesia and subsequent discussions and workshops with the Ministry of Transportation.