Press Release

PT Indonesia Kendaraan Terminal Tbk

IN REALISING A SYNERGY TO DEVELOP VEHICLE TERMINAL IN EASTERN INDONESIA, PT. INDONESIA KENDARAAN TERMINAL TBK (IPCC) IN COOPERATION WITH INDONESIA PORT CORPORATION (PELINDO IV), HAVE FORMED AN AGREEME

2018-06-13

Makassar, 13th July 2018 – PT. Indonesia Kendaraan Terminal Tbk (IPCC), have signed a Memorandum of Understanding (MoU) with regards to the cooperation in respect to the operations of car terminals in Makassar and Samarinda Ports with Indonesia Port Corporation (Pelindo IV). Taking place in Makassar, the MoU was signed by Mr. Chiefy Adi K, President Director of IPCC and Mr. Farid Padang, Director of Facilities and Equipment of Pelindo IV.

This event was witnessed by Mr. Doso Agung (President Director of Pelindo IV) along with Mr. Riman S Duyo (Operations & Commercial Director) and Mr. M Asyahari (Director of Human Resources & General Management), while from IPCC it was represented by Mr. Arif Isnawan (Commercial & Business Development Director).

According to Chiefy, this cooperation was motivated by both parties’ intention in realizing the business potentials of providing an international standard terminal management services for automotive vehicles, especially when it comes to the handling of loading and unloading of automotive vehicles, heavy equipment, spare parts etc. in eastern part of Indonesia, which covers 50% of the entire Indonesia area in order to strengthen the national distribution network as well as cost effectiveness of national logistics cost. This cooperation was made on the basis of mutual trust, understanding, respect and benefit to all parties involved.

According to Mr. Farid Padang during his opening remark, this cooperation will be initiated from Makassar and Samarinda. The ports of Makassar and Samarinda are very strategically located as they are both situated within the international shipping lanes with one of the busiest routes in Eastern part of Indonesia, and to date it has been developed as an industrial, trans-shipment and tourist sites, in which the consumption needs of automotive and heavy equipment are fulfilled through these 2 ports. For this purpose, the provision of special vehicle terminal will become a necessity in ensuring the smooth operations of port services. Furthermore, Indonesia has quite a large market for the distribution of heavy equipment due to the existence and development of mining and infrastructure sectors as stipulated by the Indonesian Government Program.

During the same occasion, President Director of Pelindo IV said that the business prospects of vehicle terminals are promising due to the fact that Pelindo IV’s area covers more than 50% of the entire Indonesian territory which operates 24 ports. The business potential of loading and unloading of heavy equipment in Sulawesi and Kalimantan are also promising due to the existence and development of mining and other industries in those regions. Mr. Doso Agung also expects to introduce Direct Shipment in order to import automotive vehicles and heavy equipment in order to reduce the selling price in Eastern part of Indonesia.

Furthermore, Mr. Chiefy Adi K has stated that for their partnership with Pelindo IV, PT Indonesia Vehicle Terminal Tbk (IPCC) provides a guarantee for the operations of Car Terminal in the ports of Makassar and Samarinda, because the business that IPCC operates not only provides terminal services for automotive vehicles, however also for heavy equipment, buses, trucks and spare parts.

IPCC has several other advantages, in which among them are that they are the only commercial terminal management company that provides vehicle terminal services in the world’s 4th most populous country, which has 100% captive market for export & import vehicles, as well as attractive margins, which expects to provide benefits for both parties that ultimately will provide greater benefits for Indonesia’s greater society.

On a separate occasion, Mr. Elvyn G. Masassya (President Director of Pelindo IV) also welcomed this cooperation which expects to create a synergy between State Owned Enterprises (SOEs) and their subsidiaries in order to provide a real contribution to the Indonesia as a nation in supporting its national automotive industry, with the form of efficient loading and unloading services with international standards so as to lower logistics costs. Furthermore, Managing Director of Pelindo II, Riri S Jetta said this MoU shall be immediately followed to realize an Indonesia Incorporated Vehicle Terminal within the Indonesia region with international and integrated standards.

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