After being one of the leading domestic players in container shipping (industry), Meratus has been going regional, following its moves to open some services from Indonesia to ASEAN countries and being the first Indonesia’s carrier to open direct calls to China. Meratus has been a regional (intra-Asia) player.
Meratus has been well-known as one of Indonesia’s leading shipping lines, especially domestic. Up to date, Meratus is running 30 routes in the domestic market. Since August 2021, Meratus has extensively expanded its business wings to oceangoing in the last six months, creating five oceangoing services in total.
On August 29, 2021, Meratus launched PING (Panjang-Singapore-Panjang), connecting Lampung Province via Panjang Port with Singapore. The PING Service regularly sails on weekly windows schedule.
This new route can be an opportunity to increase trade activities between Lampung Province and Sumatera in general with Singapore. The operation of this service also marks the bold new steps of Meratus Line’s expansion to stay ahead to continue as the leader of the Maritime logistics industry in Indonesia.
“As a leading operator in Indonesia, we aim to expand our regional network and serve our customers’ needs in these challenging times. Feedering network is a natural extension of our wide network capabilities,” Farid Belbouab, CEO of Meratus Line, said in a remark statement for the service.
The choice of Lampung Province, which became the pioneer of the Meratus Line innovation breakthrough, cannot be separated from the support of its partners. Namely, PT Great Giant Pineapple (PT GGP) has a high volume of export commodities, especially canned pineapple products exported from Indonesia to many countries.
After successfully running the PING Service, Meratus then continued its oceangoing service. On March 7, 2022, it launched JMX (Jakarta – Port Klang – Jakarta).
Focusing on time efficiency would have a big impact on the quality of delivery. Therefore this route would ship directly from Jakarta to Port Klang without stopping at other terminals. This service also proves Meratus’ consistency in expanding the connectivity in Indonesia, prominently with the main trading partners.
“This is our fourth international route within the last six months, completing our 30 existing domestic routes to support the national logistics chain. We aim to keep advancing the trade expansions in Southeast Asia,” Farid said for this service.
In addition to PING Service, Meratus has previously opened two other international calls of Belawan-Port Klang and Surabaya – Dili.
Then the newest and the most monumental one is the China Indonesia Service (CIX), launched on March 14, 2022. This new service is not only monumental for Meratus itself but also for Indonesia’s shipping industry. CIX is the first Indonesian-flagged direct service to sail to China
Routing Jakarta-Semarang-Surabaya-Qingdao-Shanghai, the CIX will support the trade between Indonesia and China. China itself is one of Indonesia’s largest partners, with positive growth in exports and imports every year. This growth follows the investment China made in Indonesia in several industrial sectors.
“China Indonesia Express (CIX) is a form of our commitment to continue to expand the Meratus service network throughout Indonesia and the world. We also use this opportunity to invite business sector players in Indonesia to join us in supporting government programs in terms of export-import,” said Charles Menaro, President Commissioner of Meratus, in his remark speech for the launching of CIX on March 14 at Terminal 3 Tanjung Priok.
Charles explained that after 65 years of presence in the Indonesian archipelago, Meratus is always keen to make a better contribution in supporting the improvement of the competitiveness of the Indonesian shipping & logistics industry at the global level.
“To realize those missions, starting March 14, 2022, Meratus proudly present the newest service, named CIX (China Indonesia Express),” said Alex Hadinoto, Chief Commercial Officer of Meratus.
“This route complements the international services we have launched previously and will provide additional convenience for export activities. We can make it happen. It’s because of the endless support and trust from all parties, especially our customers,” he said.
Alex said that the CIX remains the first initiative from a national operator in the international shipping market. Hence, he expects support from any parties to make these services run successful.
“Everyone wants to see national operator succeeding in the international area, so please put cargo on board on Meratus vessel and prioritize Meratus vessels. Together we can increase Indonesia’s role in the international shipping sector, open new markets abroad, increase investment and foreign exchange and encourage economic growth in Indonesia,” he said.
Logistics Integrator, Sustainable Solution
The opening of those regional services is in line with and as the realization of the Meratus philosophy, vision and mission. In addition, it is the right time for this shipping line, after being a leader in the domestic market, to go global/regional.
After being the dominant player in the domestic market, serving 30 routes, it is the right time for Meratus to expand its business to oceangoing. “It is natural to shipping lines that have become the domestic market leader to go regional,” Farid said.
“But, what is most essential is that this is in line with our philosophy, vision, and mission,” Farid said. So, in line with the vision of ‘Delivering the Future of Maritime & Integrated Logistics, Meratus, Farid said, would continue to expand its network by offering comprehensive and integrated supply chain solutions.
Meratus continues to actively contribute to efforts to recover the national economy by increasing Indonesia’s connectivity with various countries worldwide. Through increasing competitiveness, productivity, accelerating infrastructure and expanding international market access through the development of connectivity and cooperative relationships.
“This is in line with our philosophy and commitment to building a sustainable and long-term solution for the industry,” Alex Hadinoto told Indonesia Shipping Gazette on the sideline of the CIX launching.
“If we just consider short-term business orientation, the routes to the US or Europe are more promising at this time as the freight rate is better. But, we don’t do it in view of our philosophy and commitment to a sustainable and long-term solution. It is also in line with our vision to be a logistics integrator in Southeast Asia,” said Alex.
In realizing the vision and mission to the integrator of shipping, maritime, and logistics in Southeast Asia, Meratus, in addition to expanding shipping services to regional, Meratus also massively invests in digitalization, improves customer-centric services, and reinforces the logistics ecosystem to support end to end service.
Government Support and Appreciation
Indonesia’s Minister of Transportation Budi Karya Sumadi appreciates Meratus’ steps of opening oceangoing services, including the CIX direct call, hoping it to support Indonesia’s export competitiveness, support more efficient cost for cargo owners with a direct service, and show the world that Indonesia’s carriers (shipping lines) can become a global player.
“Finally, Indonesia has a direct route to China. This will greatly facilitate export players in the midst of the national economic recovery,” said Budi Karya.
Budi Karya is so proud of this Meratus direct service. “Though the competition is very tough in the international market, our national shipping can join the competition as Meratus has done. Thanks to Meratus, especially Pak Farid (Farid Belbouab, Meratus CEO) who pioneered the national shipping to handle direct call, go regional and global,” Budi Karya said in his remark speech for the CIX Launching.
“What the Meratus has done is absolutely inspiring the country. The message is that our national shipping can compete in the global market,” Budi Karya said, expecting other national shipping can soon follow the step to support Indonesia’s export and products to go global.
This service will benefit more than just cutting the logistics cost as most of Indonesia’s exports are shipped via feeders. According to Budi Karya, this will encourage Indonesia’s products to be more competitive in the global market.
“Surely, this will cut the ocean freight rate, which is now sky-rocketing amid the pandemic covid-19 outbreak. Our oceangoing trade, mostly shipped via feeders, has made our ocean freight rate more and more expensive. This direct call is expected to cut this as there is no need for our export to China to be transhipped in our neighbour ports.”
“Further, if the freight rate is cheaper, our products will be more competitive in the international market,” Budi Karya said further.
Budi Karya promises to help Meratus and other national shipping lines do international lobbies and negotiations to support them in opening more direct calls. “The government will support and is ready to do international negotiation.”
He urges the infrastructure providers, especially the state port operator PT Pelindo, to back up shipping lines in opening direct calls by providing adequate infrastructures and facilities.
He also calls the Indonesian exporters and cargo owners to optimize this service.
In addition, Budi Karya also expects the other national shipping lines and INSA (Indonesian National Shipowners’ Association) to build more direct calls. “We have to build a partnership or Indonesia (shipping) incorporated to open more international services. Now, Meratus has opened a direct call to China. Next, we hope for other international direct calls, let us say to Japan or another destination. These can be done through Indonesia incorporated,” he said.
Ports Fully Back up
The launches of the Meratus international services are supported by Indonesia’s state ports operator PT Pelindo and its subsidiaries of container terminal operators. Moreover, these services are expected to increase the ports/terminals’ productivity.
“Pelindo fully supports and appreciates Meratus’ efforts to facilitate international trade access. Hopefully, these routes can be used optimally by export players to accelerate the recovery of the national economy in Indonesia,” President Director of PT Pelindo Arif Suhartono said on the sideline of the launching of CIX at Terminal 3 Tanjung Priok on March 14, 2022.
President Director of IPC TPK Wahyu Hardiyanto appreciates these Meratus’ international services, saying IPC TPK will support any Meratus international services.
IPC TPK is a subsidiary of Sub holding Pelindo Peti Kemas that operates some terminals, including Terminal 3 Tanjung Priok container terminal Panjang in which Meratus opens its oceangoing services.
“We are very enthusiastic and support Meratus expansion by opening various new routes. The collaboration between shipping companies and terminal operators needs to be intensified to achieve a reduction in logistics costs and accelerate Indonesia’s economic recovery.”
“As a terminal operator that handles Meratus international calls, we commit to providing the best services and ensuring our infrastructure, facilities, and human resources are ready,” said Wahyu.
“We appreciate the trust of Meratus to use our terminal (Terminal 3) for its new service. Hopefully, this proves our better services to customers. We hope that this new additional international service can encourage increased trade flows through Indonesia’s export-import activities,” added IPC TPK Commercial and Business Development Director David Sirait.
This article was published in ISG Print Magazine April 2022 Edition.
