The Center for Transportation and Logistics Studies at Universitas Gadjah Mada (Pustral UGM) has completed a feasibility study for the opening of the Batam-Johor Roro route in collaboration with the Batam Concession Agency (BP Batam).
Following this success, a Management Expose of the feasibility study for the opening of the Batam–Johor Roro route was held at the Borobudur Hotel Jakarta on Tuesday (Jul. 22). The event was attended by Fary Djemy Francis, Deputy for Investment and Business at BP Batam.
During the event, Francis had the opportunity to deliver a speech and open the event. He also handed over the study results from BP Batam to Bobby Chriss Siagian, Assistant Deputy for Regional Economic Cooperation, Coordinating Ministry for Economic Affairs.
For Francis, the opening of this Roro route is one of the national strategic agendas to boost regional economic growth.
The Batam area, he said, is a target as well as a role model for national economic growth, and one way to achieve this is by seizing opportunities from the opening of the Roro route to Johor.
He stated that the study results show the project is feasible from technical, financial, environmental, and social aspects. This expose served as a platform to present the study results comprehensively.
“The goal, of course, is for all parties to understand that this project is indeed feasible to develop,” Francis revealed.
Overall, the study results were presented by representatives of the study team, including Professor Nur Yuwono as Head of the Technical and Operational Aspect Review Team.
Also present were Dr. Harry Purwanto, from the Legal Aspect, and Dwi Ardianta Kurniawan, from the Market, Financial, Socio-Economic Impact, and Risk Aspect. The project leader, Juhri Iwan Agriawan, served as moderator.
Professor Yuwono, who examined the operational side, stated that this service is feasible to operate due to the availability of adequate facilities and infrastructure.
According to Professor Yuwono, the operational aspect is currently determined by the limited berthing capacity for Roro vessels at Bintang 99 Persada Port, accommodating only one vessel.
Meanwhile, in terms of infrastructure readiness, he believes this service is ready to be implemented, especially concerning the availability of development areas.
“However, renovations are needed at both port locations. At Bintang 99 Persada Port, rearrangement or renovation is required to serve the functions of a Type A PLBN (Cross-Border Post) and to ensure facility quality is suitable for international tourist passenger services,” Professor Yuwono said.
He added, “Meanwhile, at Tanjung Belungkor Port, Johor, the installation of a linkspan for Roro ferries is needed as its current condition is damaged. Additionally, repairs or improvements are necessary to serve larger vehicles.”
Dr. Harry Purwanto, who highlighted the legal aspect, revealed that the operation of the Batam–Johor Roro Ferry is feasible and can be implemented because general regulations are already available.
Nevertheless, it is necessary to consider the principles of bilateral cooperation. Several matters need attention, such as the preparation of an MoU to accommodate balanced rights and obligations among parties.
This applies both at the MoU level and in its implementation.
“It is necessary to reconsider the facilities and infrastructure needed as per regulations set by IMO, such as SOLAS, MARPOL, and others, the Tokyo MoU, as well as national legislation,” Dr. Purwanto explained.
Regarding the examination of documents, supporting facilities and infrastructure are needed, such as valid passports and/or cross-border passes, Domestic Driving Licenses, International Driving Licenses, ATA Carnet, and CPD Carnet.
It is also necessary to consider Batam’s status as a free trade zone, which is certainly different from Johor.
Dr. Purwanto also mentioned Minister of Trade Regulation No. 8/2024 regarding consumer goods, where Batam is not designated as a destination port for food and beverage products, cosmetics, health supplements, footwear, mobile phones, and other items. Therefore, preparations are needed if Johor requests entry.
According to Dr. Purwanto, regulations are required to govern the principles of mutual benefit and reciprocity. This includes the need for regulations on exemptions for certain goods, as requested by Johor.
Dwi Ardianta Kurniawan argued that risks encompassing technical and operational risks, regulatory and legal compliance risks, bilateral and political risks, financial risks, environmental risks, social and security risks, and marketing (marketing & branding) risks need to be considered.
Regardless of the risks that need to be mitigated, the study results show that the Batam–Johor Roro service is financially viable, with a payback period of approximately seven years.
The operation of Roro Batam–Johor, he said, provides economic benefits.
These include backward linkages (such as other sectors as factors of production for sea transport services), for example, the use of fuel, ship repair services, banking, and so on.
It also includes forward linkages (such as sea transport services) as factors of production/facilitation for other sectors, for example, in freight transport, trade, and so on.
“Quantitatively, the Roro operation will provide a multiplier effect from the sea transportation sector on the regional economy in both Batam and Johor,” he explained.
Author: Agung Nugroho
Post-editor: Afifudin Baliya
Illustration: ulasan.co