We have conducted strategic planning and prepared hot spots for several potential ports along these straits with this MFO businessJakarta (ANTARA) - Indonesia will start offering bunkering services and boost port services at Sunda Strait for providing Low Sulphur Marine Fuel Oil (MFO) to foreign vessels.
Deputy for Coordination of Maritime Sovereignty and Energy Basilio Dias Araujo made the statement while steering and witnessing the signing of a memorandum of understanding between PT Krakatau Bandar Samudera (KBS) and PT Pertamina Patra Niaga on Wednesday (July 4) at the Office of the Coordinating Ministry for Maritime and Investment Affairs.
The memorandum of understanding was inked to strengthen cooperation in bunkering services for providing Low Sulphur MFO at the International Port of PT Krakatau Bandar Samudera in Sunda Strait, according to the Coordinating Ministry for Maritime and Investment Affairs’ statement received in Jakarta, Friday.
"This memorandum of understanding is a realization of Indonesia's commitment to creating and improving the provision of Low Sulphur MFO services at various strategic ports in Indonesia," Basilio Araujo emphasized.
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Low Sulphur MFO, with a sulfur content of a maximum of 0.5 percent mass by mass (m/m), is a ship fuel that aligns with the International Maritime Organization (IMO) mandate on ship fuel with a maximum sulfur content of 0.5 percent, with effect from January 1, 2020.
Araujo is not only tasked with maintaining maritime sovereignty but also handles energy issues, which in this context, is Low Sulphur MFO for ships.
Taking into account the huge untapped economic opportunities, especially the thousands of ships and international cargo passing along Sunda Strait, he attributed the "economic opportunity loss" to the absence of fuel oil bunkering services for ships from Sunda Strait to the Strait of Malacca.
He estimated some US$173 billion in opportunity loss from bunkering services, crew change, and logistics provision for ships passing through the Malacca Strait, Singapore Strait, Sunda Strait, and Lombok Strait.
Data for the year 2020 indicated that 53,068 ships passed through Sunda Strait, or around 150 ships daily, while around 120,000 ships passed through the Malacca Strait and Singapore Straits, with 350 ships passing daily only through Malacca Strait.
"We have conducted strategic planning and prepared hot spots for several potential ports along these straits with this MFO business," he revealed.
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"We believe that this collaboration (between ports operators and Pertamina) can increase state revenues and offer extraordinary benefits, especially for state revenue, communities welfare, and most importantly, Indonesia is ready and able to provide Low Sulphur MFO services in our strategic waters. In future, ports in Indonesia can provide the best services and be able to compete with other neighboring countries," Araujo affirmed.
He also remarked that this was in accordance with the national and international regulations: Ministry of Transportation Regulation No. 29 of 2014 on prevention of pollution of the maritime environment due to sulfur content in ship fuel and international production of Low Sulphur MFO as low as 180 CST. Through business cooperation to offer bunkering services, the development of economic potential through bunkering services for providing Low Sulphur MFO at various strategic ports in Indonesia will further improve the profile of Indonesian ports while bolstering the country’s energy posture, especially the provision of 180 CST Low Sulphur MFO with the Pertamina Group.
Pertamina, through the Refinery Unit (RU) III Plaju, has introduced 180 CST Low Sulphur MFO and will produce 380,000 KL per year or approximately 200 thousand barrels per month for distribution to Indonesian and non-Indonesian-flagged vessels entering ports in the Indonesian waters.
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Translator: Azis Kurmala
Editor: Fardah Assegaf
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