0 Lack of trading port harms island’s exports

Trade experts have said that the absence of a large trading port on the island had played a significant role in the slowing of the island’s export growth. Bali Statistics Agency head Panusunan Siregar said that Bali relied too much on the ports of other provinces to ship goods abroad, resulting in a significant increase in freight expenses and delivery times. “Bali should be able to handle this alone, so that export activities are dynamic,” he said Wednesday. 

“Bali’s goods are well known. It would be unfortunate if we couldn’t make the most of it,” he said. To export goods by sea, Bali generally has to first send them by land and ferry to ports in East or Central Java, or Jakarta. This is due to the island’s ports being prioritized for other activities. Benoa Port in Denpasar is being developed as a cruise ship harbor, while Celukan Bawang Port in Buleleng, although used for goods delivery, is far from the economic center in southern Bali. 

The agency recorded in December that 53.02 percent of goods were dispatched directly from the island either by sea or air. Meanwhile, 44.19 percent were sent through Tanjung Perak Port in Surabaya, East Java; 2.49 percent from Tanjung Priok Port in Jakarta; and the rest, 0.30 percent, from Tanjung Mas Port in Semarang, Central Java. Trade figures in previous months did not differ greatly from December. In 2013, the island booked US$486.06 million from exports, a slight increase of 0.88 percent from 2012’s $481.84 million, far from the expected 5.24 percent rise. 

This slight increase was thanks to a windfall from the rupiah’s weakening against the US dollar and the revival of the global economy after the worldwide financial crisis. Bali Industry and Trade Agency head Ni Wayan Kusumawati acknowledged the lack of a trade port as a barrier to exports. “Some of Bali’s goods are sent from other areas, while some of the other provinces’ products are shipped from here. The island’s exports are actually high, but many aren’t recorded here,” she said. 

“Fresh produce, like fish and fruit, is normally sent by air, while handicrafts and furniture are delivered by sea,” she said. Bali, she said, actually benefited from its image as an international tourist destination. She said traders were able to promote and market products better, whether it was handicrafts, plantation or agricultural produce. “Because many also come on business, foreign businesspeople are promoting Bali to their associates,” she said. 

Meanwhile, economic observer Wayan Ramantha said that the lack of a trading port in Bali increased selling prices, thus reduced the bargaining power for other existing products. Besides that, having to send goods outside Bali would cause worse congestion along the Denpasar-Gilimanuk road and increase the possibility of accidents. Ramantha added that it was more than a port issue. Bali had problems with market access, raw materials, the minimum entrepreneurial will of the people and creativity.

source : bali daily