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BITUNG PORT: TOWARD INTERNATIONAL HUB PORT STATUS
A. Background
Bitung City is one of the most strategic areas in the context of national development. At least, three major national
policies mandate Bitung City’s role (part of North Sulawesi province) as one important component that supports
economic, spatial, and connectivity development. The three policies are among others, National Spatial Plan,
National Medium Term Development Plan, and Masterplan of Acceleration and Expansion of Indonesia Economic
Development (MP3EI). Those policies point out Bitung City position in national constellation as the growth pole area,
which depends on agriculture, industry, and transportation sector. In addition, Bitung City is also taken into account
by international community (which is ASEAN region), because its position on the border with the Philippines. Through
the BIMP-EAGA cooperation agreement involving Malaysia, Philippines, Brunei and Indonesia (especially cities in the
eastern part of ASEAN), there are several programs prepared to speed up regional economic growth of those cities,
where Bitung City is no exception.
Strategic projects such as Manado-Bitung Tollroad (49 km), Bitung Port Facility Development and Expansion, Bitung
Minapolitan Area (Bitung as Centre of Fishery Industry), and Manado-Bitung National Growth Pole, are prepared by
the government, as outlined in the National Development policies. The projects package is expected to lead Bitung
City achieves its development in accordance with the vision of national development.
One of the important infrastructures for Bitung City in carrying out its role as a national development entity is Bitun
Port. The port is one of the largest in Sulawesi Island, which is supported by adequate infrastructure. At least, the
Port is being used as a gateway of necessary goods distribution, and thus it become the economy stimulator by
improving trades for North Sulawesi people. In international trade, Bitung Port supports Tanjung Priok and other
three international ports to distribute export and import commodities from/to North Sulawesi.
Currently, the growing issue of Bitung Port is the status upgrade into international hub port. Once, it is upgraded, the
port traffic would increase, especially from the export and import activities conducted by international vessels. As
international hub, Bitung Port may able to conduct transshipment activities (including charges and discharges of
containers and cargoes from other countries) and distribution of export commodities from Bitung Port directly to the
North East Countries such as Philippines, China, Hongkong, Japan, South Korea, or even United States without
passing Singapore or Malaysia (the current nearest hub ports). This shipping patterns could be more efficient than
the current pattern, especially for north-east trades. Therefore, the upgrading would be positive for Indonesian
economy, because it encourages eastern Indonesian export and import activities, as being expected by Indonesian
development vision
B. Regulation and Policy Review
B.1. General Regulation
In Indonesia, the highest general port regulation is Law No. 17/2008 regarding Shipping. Furthermore, the regulation
specified by Government Regulations, which is Government Regulation No. 61/2009 regarding Port is one of the
most connected. This government regulation set limits, criteria, classification and functions of ports in Indonesia. In
addition, the regulation also describes the system and mechanisms of port and its activities. However, in relations to
more technical aspects, such as port logistics systems, urban systems, and institutional systems are described in
Presidential Regulations. Especially for the provisions relating to the status, delegation, and certain authorities, those
are mandated by Presidential Decrees. Meanwhile, detailed things to the port system then regulated by Ministrial
Regulations and Decrees.
Picture A. General Regulation Hierarchy of Port Classification and Status in Indonesia
Law No. 17/2008 Explain port basic classification:

regarding Shipping (1) Main Port, (2) Collector Port, (3) Feeder Port
Government Detail port basic classification by characteristics and functions,

Regulation No. and the process of determining port status
61/2009 regarding
Port
Presidential No. 26/2012 No. 32/2011 No. 5/2010

Regulations and Port status in Port status in Port status in
Decrees National MP3EI National Plan
Logistic System
Ministrial Detail relating aspects of port, such as: provisions of

Regulations and infrastructure, institutional, financing, and operation
Decrees
Law No. 17/2008 regarding Shipping
The highest regulation of shipping in Indonesia, Law No. 17/2008 regarding Shipping, arranges basic principle of
port. It includes port definitions, general function, classification and status in Indonesian shipping. Article (1) from the
regulation states whether port is one of the major part of shipping system in Indonesia. It is divided into three basic
classifications, which are:
1) Main port; this class of port is able to serve domestic and international shipping activities, large scale of domestic
and international transshipments, as origin and destination of passengers and goods, as well as connecting
inter-province crossing
2) Collector port; this class of port is able to serve domestic shipping activities, medium scale of domestic
transshipments, as origin and destination of passengers and goods, as well as connecting inter-province
crossing
3) Feeder port; this class of port is able to serve domestic shipping activities, limited domestic transshipments,
feeder activities for collector port and main port, as well as connecting only inter-province crossing
The above classification is principal port status in Indonesia. The more detail regulation, especially the process to
determine port classification as above mentioned are derived by the Government Regulation.
Government Regulation No. 61/2009 regarding Ports
Instead of detailing port classification, this regulation explains general legal standings, policy directions, provisions to
determine port classification relating to status. One of the most fundamental direction from this regulation is whether
the port classification relating to status is determined by port physical condition and supporting infrastructure.
Basically, the determination of port classification is undertaken by Minister level referring to the consideration of
official policy and planning documents. One of the official documents is National Spatial Plan (Rencana Tata Ruang
Wilayah Nasional). It mentions national port hierarchy and status, the process of determining port location,
development/expansion, operation, and planning programs.
As above mentioned, port status is determined by physical conditions and availability of infrastructure. Therefore,
increasing the port status is closely related to the improvement of port capacity and infrastructure. If the port
improves its supporting infrastructure, hence its status can be considered for upgrading. This stipulation is stated in
the article (99) to (100).
According to the article (100), port status is determined by the availability of permanent mooring facility, container
terminal, adequate container cranes, container yard and warehouse, communication and information system,
competent human resources, and the most important factor, adequate cargo volume.
Furthermore, in case of international status, the provisions of special port and terminal for international trade are
determined by president through ministrial considerations. Several points to be considered in the process are as
follows:
a. Economic feasibility
b. Safety and security of shipping route
c. Technical aspect of port facilities
d. Shipping operator, government officer, customs, immigration, and quarantine offices
e. Additional regulation to control special commodities
Port Status Determination Process by Physical Condition
Policy and Plan
President National Other

Logistic MP3EI national
System plans
Status
Improvement
Port Status
Minister Main Port

Ports
Collector Port
Feeder Port
Aspect of Considerations
a. Economic feasibility
b. Safety and security of shipping route
c. Technical aspect of port facilities
d. Shipping operator, government officer, customs, immigration,
and quarantine offices
e. Additional regulation to control special commodities
Ministry of Transportation Decree No. 53/2002 regarding National Port System
The regulation derives basic classification of port into several functions and criteria. It can be seen in article (9),
where the three classification, main ports, collector ports, and feeder ports are detailed as follows:
1) Main port divided into three types, which among others:
a. Primary main port (as international hub port),
b. Secondary main port (as international port), and
c. Tertiary main port (as national port)
2) Collector port divided into two types, they are:
a. Primary collector port (as regional port), and
b. Secondary collector port (as local port)
3) Feeder port
The detail criteria of each type, as stated in article 10, are explained as follows:
Class Function Criteria
Primary Main Port International Hub  Role as international hub port that serves international container
transshipment with worldwide scale shipping activities
 Role as main port that serves national and international container
movement with 2,500,000 TEUs/year or other equal size modes
 Role as transshipment port with capacity 3,000,000-3,500,000
TEUs/year or other equal size modes
 Located within 500 mill of international shipping routes
 Has a minimum depth 12 m LWS
 Has a container wharf with minimum 350 m2, supported by 4
cranes, and 15 hectares container terminal
 Located about 500-1,000 mill from other international hub ports
Secondary Main Port International Port  Role as national container distribution and international container
activities
 Role as passengers and container transportation gates
 Located beyond 500 mill of international shipping routes and
within 50 mill of national shipping routes
 Has a container wharf with minimum 250 m2, supported by 2
cranes, and 10 hectares container terminal
 Located about 200-500 mill from other international ports
Tertiary Main Port National Port  Role as national container feeder and distribution
 Role as national passengers and cargoes transportation gates
 Located near to 50 mill of national shipping routes
 Has a multipurpose wharf with minimum 150 m2, supported by 50
tons capacity of mobile cranes
 Located about 50-100 mill from other national ports
Class Function Criteria

Primary Collector Port Regional Port  Role as national passengers and cargoes transportation gates
connecting feeder ports and main ports
 Serves crossing activities between districts and cities within
province
 Located near to 50 mill of national shipping routes
 Has a multipurpose wharf with minimum 70 m2
 Located about 20-50 mill from other regional ports
Secondary Collector Local Port  Role as feeder port for hub international, international, national
Port and regional ports
 Serves remote, isolate, border areas
 Has a minimum depth 1.5 m LWS
 Has a multipurpose terminal for passengers and local scale
cargoes
 Located about 5-20 mill from other local ports
Feeder Port Feeder  Role as feeder port for hub international, international, national
and regional ports by specific directions
B.2. Special Policy
Basically, the general pattern of port status and function determination is regulated as above mentioned. In additions,
Ports infrastructure’s functions and roles in the context of national development and planning are mandated by
several planning policies, which among others:
a. National Medium Term Development Plan (Rencana Pembangunan Jangka Menengah Nasional)
b. National Spatial Plan (Rencana Tata Ruang Wilayah Nasional)
c. Masterplan of Acceleration and Expansion of Indonesia Economic Development (MP3EI)
d. National Logistic System (Sistem Logistik Nasional)
e. National Port Plan (Rencana Induk Pelabuhan Nasional)
f. Waters Transportation System (Sistem Angkutan Perairan)
g. Minnapolitan Development Zone (Pengembangan Kawasan Minapolitan-Industri Perikanan)
The following reviews are important matters related to the port status and function.
National Medium Term Development Plan
The policy is legalized by Presidential Regulation No. 5/2010 regarding National Medium Term Development Plan
2010-2014. In terms of transportation planning, the policy mandates several missions particularly to improve inter-
regional connectivity, through the development of transportation infrastructures that integrated with national and
multimodal transport. In that sense, integrated transportation means good connectivity between land, sea and air
transports as the priority of development. It is aimed to encourage national economic development that support the
regional economic equality among regions.
Several policies relating to the port development are as follows:

1) Improving the quality of infrastructure in 11 container ports in order to improve their functions in supporting
export and import activities. The ports include Tanjung Priok, Tanjung Perak, Tanjung Emas, Belawan, Long,
Makassar, Banjarmasin, Pontianak, Bitung, Samarinda, and Palembang (targeted 2013)
2) Improving the strategic role of marine sector to stimulate Eastern Indonesia Zone (KTI) economic development
through the development of fishing ports with industrial centers, as further stipulated in the marine regulation
(targeted 2013)
3) Development of export hub port for leading commodities, especially fishery and agricultural commodities. The
ports are Makassar Port and Bitung Port (targeted 2014)
4) Implementation of National Single Window System in 14 location. Those are Palembang Port, Panjang Port,
Bitung Port, Ambon Port, Makassar Port, and Banjarmasin Port (targeted 2014)
National Spatial Plan
It is under Government Regulation No. 26/2008 regarding National Spatial Plan. In terms of spatial planning, port
status is determined by its functions in supporting the activity centers (growth pole, or called pusat kegiatan in
Indonesia – PKN). Port is expected to be the knot of activity centers ranging from the highest, which is national
activity centers (PKN), regional activity centers (PKW), and the lowest local activity centers (PKL). The following are
detail classification of port in relations to activity center:
1) International Port is a port that connects national activity centers with international areas. This port category is
recognized as the national window of international connectivity.
2) National Port is a port that connects between national activity centers, and national activity centers with regional
activity centers.
3) Regional Port is a port that connects between regional activity centers, and activity centers with local activity
centers.
4) Local Port is a port that connects between local activity centers, and local activity centers with hinterlands.
National Spatial Plan proposes several main ports in Indonesia to be upgraded to international hub port. The ports
are Kuala Tanjung Port, Belawan Port, Tanjung Priok Port, and Bitung Port. The development of International Hub
Ports is aimed to increase export of leading commodities from Indonesia to international market, especially in Asia
Pacific region. In this case, most of the proposed ports are already levelled as international port. However, to be the
International Hub Port, they require recognition from international maritime organization. In additions to that
achievement, the proposed ports are being improved, especially in two priority aspects which are qualified security
standard (port security) and efficiency standards (port efficiency).
For the National Spatial Plan itself, government will propose international ports in Indonesia to be upgraded to
International Hub Port candidates based on cargo volume consideration, instead of infrastructure assesments. The
criteria are as follows:
1) 2.500.000 TEU’s/year for main international hub ports
2) 3.000.000 - 3.500.000 TEU's/year for transshipment international hub ports
3) 1.500.000 TEU’s/year for international port
So far, Indonesia has 25 international ports listed in the National Spatial Plan, where Belawan, Dumai, and Bitung
Port are included.
Masterplan of Acceleration and Expansion of Indonesia Economic Development (MP3EI) 2011-2035
The status of MP3EI has been clear since it followed by the issuance of Presidential Regulation No. 32/2011
regarding Masterplan of Acceleration and Expansion of Indonesia Economic Development. Currently, the progress of
this development plan is under first year programs implementation. The main objective of this development plan is
national economic acceleration through the progressive and steady regional developments.
In relations to port development, the plan proposes several ports to be upgraded to international hub ports to support
the economic growth in certain corridors. There are among others Sumatra Economic Corridor as a “Center for
Production and Processing of Natural Resources and As Nation’s Energy Reserves,” Java Economic Corridor as a
“Driver for National Industry and Service Provision,” Kalimantan Economic Corridor as a “Center for Production
and Processing of National Mining and Energy Reserves,” Sulawesi Economic Corridor as a “Center for Production
and Processing of National Agricultural, Plantation, Fishery, Oil & Gas, and Mining.” In this case, Bitung Port is
among the proposed international hub ports to support the economic activity in Sulawesi Economic Corridor. It is
expected to smooth the export activities of several potential commodities such as rice, corn, soybean, cassava,
cocoa, fishery, nickel, oil and gas.
Development projects for Bitung Port listed in MP3EI are among others:
1) Development of Bitung Fish Port (targeted 2015)

2) Improvement facilities and expansion area of Bitung Port toward International Hub Port (targeted 2015)
3) Development of Manado-Minahasa Utara-Bitung Tollroad (49 km), also expected to connect Bitung Port and
North Sulawesi Provincial capital city, Manado (targeted 2014)
National Logistic System D
National Logistic System is formalized under Presidential Regulation No. 26/2012 regarding Blueprint of National
Logistic System Development. It is prepared to support the implementation of Masterplan of Acceleration and
Expansion of Indonesia Economic Development.
Following to the system, currently Indonesia is supported by 25 ports for national conventional cargo shipping
movement, and 15 ports for international cargo shipping movement. The ports are operated under four main ports
including Belawan, Tanjung Priok, Tanjung Perak, and Makassar. However, in line with National Spatial Plan and
MP3EI, to strengthen national logistic system, the plan proposes Kuala Tanjung Port as international hub port for
western Indonesia (KBI) and Bitung Port for eastern Indonesia (KTI).
The figures below show current pattern of national cargo in Indonesia under National Logistic System scheme.
Source: National Logistic System
National Port Plan
The plan focuses on the linkages and hierarchy between transportation system. In the aspect of maritime transport,
there are several further expectations such as, (1) the integration of main transports and (2) ports with hinterlands
transports and ports. Such integrations are widely expected to be implemented in all development clusters in
Indonesian, as illustrated in the MP3EI. It is also expected that the plan can provide clear patterns and role sharings
among shipping stakeholders regarding cargo handling, both international, regional and local level.
Eastern Indonesia Zone (KTI) is directed to have sustainable port system with main cargo promoted is primary
commodities, as also defined in the MP3EI. The commodities are fisheries, agriculture, and mining. In this case,
Bitung Port is expected to be the main port of the region, with Ambon Port and Sorong Port as its collector ports for
northen shipping line. Thus, in year 2020, it is expected that the total throughput in Bitung reached 23,000,000 TEUs
or equal to 1.70 j, through the provision of 2,000 TEU container vessel, with capacity utilization of 40% -70%.
Waters Transportation System
Government Regulation No. 20/2010 regarding Water Transportation System introduces cross-border routes. The
routes are expected to encourage trade activities between Indonesia and neighboring countries. The cross-border
routes are decided by Ministry of Transportation after receiving the proposal that submitted by sub-regional and
bilateral cooperations. In this case, the route will be accepted by the minister if:
1) Route is agreed by two parties or members of sub regional cooperations
2) Route distance is not exceed 150 mills
3) Shipping operation should be given to national shipping company using not more than 175 GT vessels
4) Traditional shipping companies are allowed to operate in this cross-border routes under Minister acceptance
The terminology of regional cooperation is mosty refers to ASEAN community, where the cross border routes listed
by the regulation are among others:
1) Batam-Singapore
2) Nunukan-Tawai
3) Belawan-Penang
4) Sambas-Kuching
5) Nyamuk-Tawau
6) Dumai-Melaka
7) Tahuna-General Santos
8) Jayapura-Vanimo
9) Oecussi-Dili
Minnapolitan Development Zone
Minapolitan is a representation of the National Spatial Plan mandatory. It is legalized under Ministry of Marine Affairs
and Fishery Regulation No. 16/2006 regarding Fishery Port .Through this regulation, government determines the
number of areas to be focused as the center of fishing industry. The center includes development of the fishing port,
fish processing industrial estates, and other related supporting infrastructure.
There are four types of fishing port according to this regulation, which are:
a. Ocean Fishing Port (type A)
b. National Fishing Port (type B)
c. Coastal Fishing Port (type C)
d. Fishing landing base (type D)
Ocean Fishery Port is the only type that is allowed to do international shipping activities for fishery commodities. The
detail condition of Ocean Fishery Port are:
1) Able to serve fish boats that doing fishing activities in Indonesian area, Exclusive Zone of Indonesia, and
International sea
2) Supported by anchoring/mooring facility for fish boats with at least 60 GT capacity
3) Length of jetty is at least 300 m, and sea depth is 3 m
4) Able to accommodate 100 unit fish boats or 6,000 GTs
5) Supported by land/potential land about 20 hectare
6) Fishery products that are collected in the port should be prioritized for export purposes
7) Has minimum stevedoring activities and marketing of fish products on average 50 ton/day
8) Supported by fish processing and supporting industries near the port
Existing Condition
Roles
Port Classification Function Policy Implication
National Spatial Plan MP3EI
Belawan Main Port Secondary Main Port International Port connecting International hub port to support  Can serve international vessels and cargoes containers
for International national activity centers with the sumatera economic corridor, directly from/to the nearest Hub Port
Main Class in terms of Connectivity International areas which mainly focused on  Will be developed by government as an alternative hub
administration Production and Processing of port with Kuala Tanjung port to cover Sumatera
Ocean Fish Port Natural Resources and As Nation’s Economic Corridor
Energy Reserves  International container vessels can go directly from hub
First Priority National Single port/or origin international port to this port and discharge
Window Port import containers
 International container vessels can go directly from this
port to destinated international port/hub port
Dumai Main Port Tertiary Main Port for National Port connecting International industry port to  Can serve international vessels and cargoes containers
National Port (become national activity centers with support the sumatera economic directly from/to the nearest Hub Port under cross-border
Class I in terms of International Port) other national activity corridor, which mainly focused on regulation and international port status
administration centers, but then allowed for Production and Processing of  Will be developed by government as an alternative
International gate Natural Resources and As Nation’s supporting port for Kuala Tanjung port to cover Sumatera
Energy Reserves Economic Corridor
 International container vessels can go directly from hub
port/or origin international port to this port and discharge
import containers
 If the cargo volume does not meet the recognition
volume as mentioned in national spatial plan criteria,
container vessel may go to the main international
port (Tanjung Perak, Tanjung Emas, Tanjung Priok,
Belawan, Makassar)
Bitung Main Port Tertiary Main Port National Port connecting International hub port to support  Can serve international vessels and cargoes containers
(become International national activity centers with the sumatera economic corridor, directly from/to the nearest Hub Port under international
Class I in terms of Port) other national activity which mainly focused on port status
administration centers, but then allowed for Production and Processing of  Will be developed by government as an alternative hub
International gate Natural Agricultural, Plantation, port with makassar port to cover Sulawesi Economic
Fishery, Oil and Gas, Mining Corridor
Ocean Fish Port  Processed fishery products can be exported from this
port directly to destinated countries
Third Priority National Single  International container vessels can go directly from hub
Window Port port/or origin international port to this port and discharge
import containers
 If the cargo volume does not meet the recognition
Port Classification Function Roles Policy Implication

volume as mentioned in national spatial plan criteria,
container vessel may go to the main international
port (Tanjung Perak, Tanjung Emas, Tanjung Priok,
Belawan, Makassar)
 The port is on progress to meet basic requirement
standard for international hub port infrastructure, until
2014 under MP3EI projects such as port expansion,
infrastructure development
Additional informations:
 Most of shippers in Bitung complained about the shipping route of their cargoes that must pass through Tanjung Priok and Tanjung Perak. They requested to
be allowed to do direct exports/imports to destinated countries, especially Philippines (interview conducted during 2nd field survey)
 According to Samudera Indonesia, Bitung Port is allowed to process unloading of international vessels from international origin/hub ports. However, loading
process should be shipped by national flag vessels from Bitung to Tj Priok/Tj Perak, and distribute to destinated countries/hub ports, for example: Bitung – Tj.
Priok (by national flag vessels), Tj Priok – Singapore (by national/international flag vessels), Singapore – China (by national/international flag vessels) (phone
interview conducted by Mardiansyah)
 According to Almanar Pasaribu (transport academician), all international ports (outside Belawan, Tj Priok, Tj Perak, Semarang, Makassar) in Indonesia are
allowed to ship export commodities to other countries/international hub ports. However, due to limited cargo volume, most of cargo vessels take transit route
to 5 major ports to increase their load fit to the minimum recognition of economic capacity. In case of import, many cargo vessels go through 5 major ports,
although having direct route to other international ports is allowed. This situation could be happened due to Ministry of Finance regulation regarding several
commodities that must be discharged only in selected ports, which usually the major 5 ports.
Conclusion Points
 Regarding the RORO operation between Bitung-General Santos, the shipping route permit from Indonesian
government in principle is possible to obtain. Because, Government Regulation 20/2010 explains that selected
area include Tahuna Island-General Santos are allowed to open shipping routes for people movement and trade
purposes. However, additional requirements should be proposed under Ministry of Transportation and Ministry of
Foreign Affairs coordination
 In case of direct export between Bitung to other countries (for example: General Santos, Philippines), the
shipping routes that pass through Tj Priok/Tj Perak may be happened due to limited cargo volume or product
prohibitions from Ministry of Finance regulation.
 To be upgraded to international hub port, Bitung Port is expected to complete all infrastructure improvement by
2015. In this case, after all project completed and Bitung Port meet the minimum standard for international hub
port recognition by government (refers to governent regulation criteria), government will propose this port to the
international maritime community.

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BITUNG PORT: TOWARD INTERNATIONAL HUB PORT STATUS

B. Regulation and Policy Review

B.1. General Regulation

Picture A. General Regulation Hierarchy of Port Classification and Status in Indonesia

Law No. 17/2008 Explain port basic classification:

Government Detail port basic classification by characteristics and functions,

Presidential No. 26/2012 No. 32/2011 No. 5/2010

Ministrial Detail relating aspects of port, such as: provisions of

Law No. 17/2008 regarding Shipping

Government Regulation No. 61/2009 regarding Ports

Port Status Determination Process by Physical Condition

Policy and Plan

President National Other

Minister Main Port

Ministry of Transportation Decree No. 53/2002 regarding National Port System

Class Function Criteria

B.2. Special Policy

National Medium Term Development Plan

Several policies relating to the port development are as follows:

National Spatial Plan

Masterplan of Acceleration and Expansion of Indonesia Economic Development (MP3EI) 2011-2035

1) Development of Bitung Fish Port (targeted 2015)

National Logistic System D

Source: National Logistic System

National Port Plan

Waters Transportation System

Minnapolitan Development Zone

d. Fishing landing base (type D)

Port Classification Function Roles Policy Implication

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