State-owned port operator PT Pelabuhan Indonesia I (Pelindo I) plans to establish five subsidiaries to meet the high demand of the country’s maritime industry and help boost its revenue. The 2008 Shipping Law has changed the roles of Pelindo I and other similar state-run port companies from both port authorities and port operators to port operators only. The establishment of specialised subsidiaries would decentralise decision-making within the parent firm, while enabling it to expand to various locations under its management. Of the five subsidiaries, two will be port managers focusing on crude palm oil terminal management at Kuala Tanjung in North Sumatra and container terminal management at Dumai in Riau. The third will operate logistics at Belawan in North Sumatra. The remaining two subsidiaries – one at Belawan and Pekanbaru in Riau, and the other in Pekanbaru – will run the property development and shipbuilding businesses.
