Tanjung Priok Strike Ended, No Big Consequences for Trade
The strike, organized by more than 600 workers of Jakarta International Container Terminal (JICT) at Jakarta's Tanjung Priok port, seemingly had a limited negative impact on trade. The strike took place from Thursday (03/08) to Monday (07/08) and was used by the workers to urge the transfer of bonus payments. JICT, which operates the container terminal at Tanjung Priok, is owned by Hong Kong-based Hutchison Port Holding Group (51 percent) and Koperasi Pegawai Maritim (48.9 percent). The latter is part of state-owned port operator Pelindo II.
Although originally the strike was planned to continue up to Thursday 10 August 2017, it was cut short out of consideration for "national interests". The strike led to some disruptions as at least 20 ships had to be redirected to other terminals for loading and discharging. However, JICT executives stated that activities went in a smooth manner.
The sudden end of the strike on Tuesday (08/08) could be related to the Jakarta government's mediating role in the dispute between the union and JICT management.
Kariyanto Hardjosoemarto, Deputy Director Sales Operation and Network Development at Mercedes Benz Distribution Indonesia, said the company, which uses the terminal operation by JICT, had not received any reports of disturbances to its completely built up (CBU) and completely knocked down (CKD) car exports and imports.
Also Toyota Motor Manufacturing Indonesia, the biggest producer and exporter in Indonesia, said it has not yet felt real negative effects as a result of the strike.
The Indonesian Automotive Industry Association (Gaikindo) also stated that the nation's car trade has not been affected by the strike because import and export activities could be relocated to a different terminal.
Tanjung Priok is Indonesia's biggest port handling about two-thirds of Indonesia's total international trade. Meanwhile, JICT operates the largest container terminal at Tanjung Priok, handling about 42 percent of total exports and imports at the port.