The transformation of Pelindo I

Pelindo I – one of the four state-owned port companies in Indonesia, which manages ports in the west of Indonesia – has made significant improvements in the last five years since Bambang Eka Cahyana was named Commercial and Business Development Director in 2009 and took over as President Director (PD) in 2013.

Mr. Bambang has strived to turn the state-owned company, once stifled by bureaucracy, into one that resembles a private firm. In the last five years, the PD says that he has overseen “the greatest performance upgrade of any Indonesian port in history”.

“Coming from the private sector, I made sure to make ‘customer focus’ our first new corporate value. This helps us change the business culture to one of a customer-oriented company,” he says.

Mr. Bambang’s efforts to change the culture have paid off significantly: profits have skyrocketed from IDR 138 billion ($ 11.8 million) in 2010 to IDR 489 billion in 2013. This year the PD expects the company to make more than IDR 600 billion.

The PD’s first five-year transformation plan, which came to a close last year, had one focus: to improve container terminal operations. The second transformation plan, launched this year, is focused on expanding the existing business (with plans to open facilities in Timor Leste), developing Kuala Tanjung Port as West Indonesia’s hub port and container terminal focused on crude palm oil, as well as plans to expand into new areas. These include entering the biodiesel industry in a venture with one of Indonesia’s major power companies to build an independent power plant, and to add subsidiary companies and provide marine services.

“At the end of this five year period, in 2018, I want to achieve an after tax profit of IDR 1.8 trillion, “ says Mr. Bambang.

“It’s time for Pelindo I to grow and expand into the international market. In order to effectively integrate into the 2015 Asean Economic Community, Indonesia needs to improve the ports sector. Before we can compete with the likes of Singapore and Malaysia we need to catch up with them.”