Indonesia is home to world-class tourist destinations, so why is the cruise industry stalled?
Indonesia’s tourist attractions are many. The fascinating cultural diversity and natural beauty of Indonesia are second to none, as well as its diverse wildlife, beautiful beaches and world-class diving sites. Among its well-known destinations are Bali and Komodo islands, the latter with its famous dragons. “I’ve been to almost every famous cruising destination, including the Caribbean, Mediterranean and Australia. Believe me, nothing is like Indonesia,” says American Patti Seery, owner of the luxury charter ship Silolona, which is based in Indonesia.
Yet Indonesia lags behind regional cruising destinations. Singapore received 642 ship calls last year. Indonesia? Only 90, just 14% of Singapore’s figure, according to data from the Ministry of Culture and Tourism and Singapore Tourism Board. The main stumbling block is the lack of decent ports to handle cruise ships. “What Indonesia is lacking is high- quality, professionally organized port facilities to fulfill the standards of big cruise liners. Indonesia has not had a cruise facility of the same quality as those in the Caribbean in 20 years,” says Neil Hempsey, a founding partner of Indo Yacht Support, which specializes in superyacht support and logistics. Kelvin Tan, Regional Director, Asia Pacific, Royal Caribbean Cruises, agrees: “We strongly urge the Indonesian government to actively develop some port and terminal facilities for large cruise ships like ours.”
There are 31 commercial ports scattered across the country, but none meet the requirements for cruise ships. The country’s four biggest ports, Tanjung Priok in Jakarta, Tanjung Emas in Semarang, Tanjung Perak in Surabaya, and Benoa in Bali have no facilities for cruise ships. “They are purely commercial docks for container ships and tanker ships, but not for cruise ships,” Neil says.
“The infrastructure just does not exist. That was why I always anchor my boat in the sea, we never go into a harbor,” says Patti from Silolona. She gives an example of Ambon. “Ambon has the most beautiful natural harbor but it doesn’t have a dock,” says Patti. The government says it will address this problem, with plans to build cruise ship ports across the country. The government started building the Amuk cruise port at Karangasem in Bali in 2006, at an initial cost of Rp 97 billion, but it is not yet ready to accept the largest of modern cruise ships.
Yet Indonesia lags behind regional cruising destinations. Singapore received 642 ship calls last year. Indonesia? Only 90, just 14% of Singapore’s figure, according to data from the Ministry of Culture and Tourism and Singapore Tourism Board. The main stumbling block is the lack of decent ports to handle cruise ships. “What Indonesia is lacking is high- quality, professionally organized port facilities to fulfill the standards of big cruise liners. Indonesia has not had a cruise facility of the same quality as those in the Caribbean in 20 years,” says Neil Hempsey, a founding partner of Indo Yacht Support, which specializes in superyacht support and logistics. Kelvin Tan, Regional Director, Asia Pacific, Royal Caribbean Cruises, agrees: “We strongly urge the Indonesian government to actively develop some port and terminal facilities for large cruise ships like ours.”
There are 31 commercial ports scattered across the country, but none meet the requirements for cruise ships. The country’s four biggest ports, Tanjung Priok in Jakarta, Tanjung Emas in Semarang, Tanjung Perak in Surabaya, and Benoa in Bali have no facilities for cruise ships. “They are purely commercial docks for container ships and tanker ships, but not for cruise ships,” Neil says.
“The infrastructure just does not exist. That was why I always anchor my boat in the sea, we never go into a harbor,” says Patti from Silolona. She gives an example of Ambon. “Ambon has the most beautiful natural harbor but it doesn’t have a dock,” says Patti. The government says it will address this problem, with plans to build cruise ship ports across the country. The government started building the Amuk cruise port at Karangasem in Bali in 2006, at an initial cost of Rp 97 billion, but it is not yet ready to accept the largest of modern cruise ships.
While the Bali port is a start, Indonesia is late to the game. “Indonesia should learn from Singapore,” says Sylvain Croise, managing director of Bali-based cruise operator Seatrek Sail- ing Adventures. Singapore built its Singapore Cruise Center two decades ago, and a new cruise facility at Marina South
is also under development, scheduled for completion by the end of the year. “Once completed, it will double Singapore’s capacity and allow for more cruise ships to call on Singapore,” says Remy Choo, deputy director for cruise at the Singapore Tourism Board. “The new terminal will be able to accommo- date the largest cruise ships currently in service, complete with parks and a waterfront promenade, vibrant nightlife and entertainment, events and celebrations, all accessible within minutes of the new cruise terminal.”
Another factor hampering the cruise industry is the forthcoming cabotage law, set to go into effect in May. Thelaw obliges all vessels operating in Indonesian waters to fly an Indonesian flag. Although it’s unclear whether cruise ships would be included under the new law, it could severely hamper, or even block, most cruise ships flying other flags from entering Indonesian waters. “The law is designed for commercial shipping but it would block cruise ships from coming,” says Cilian Budarlaigh, another founding partner of Indo Yacht Support along with Neil.
Cilian notes that a foreign flagged vessel would need to have temporary permit should it plan to cruise more than 40 hours and berth in more than one port in Indonesia. “Cruise ships generally travel thousands of miles, and they don’t want to visit only one place,” says Cilian, who hopes the government would clarify the treatment of cruise ships under the new law. Otherwise, warns Neil of Indo Yacht Support, “They will choose to go somewhere else.” The situation is made even worse with the uneven regulations for permits to visit certain ports. “If we process a permit with the customs office in Jakarta, it will cost about $400, but if we process one in local offices, [the same permit] may cost us $3,000 to $4,000,” says Cilian, whose company handled the permits for 47 superyachts that visited Indonesia last year. Nationally flagged vessels, such as the Silolona, Seatrek, or Yongline cruises do not require permits. Yet even they are not entirely happy with the situation. Rimayanti, director of Yongline Cruise that operates 30 vessels in Indonesia, says: “We’re disappointed with the lack of supporting facilities at the ports, including clean water, electricity and fuel supply.”
Currently, two giant foreign-flag cruise operators that call on Indonesian destinations are Princess Cruise and Royal Caribbean. Their passengers depart out of Singapore or Melbourne to stop in destinations such as Bali or Semarang. The ships would normally anchor at sea and then ferry passengers ashore, which is not as convenient as offloading passengers directly onto the land, as these ships can do in Singapore.
Cilian strikes an optimistic note: “Make everything simpler for cruise ships to come in. Change the worst situation [in Asia] into the best cruising destination.”
is also under development, scheduled for completion by the end of the year. “Once completed, it will double Singapore’s capacity and allow for more cruise ships to call on Singapore,” says Remy Choo, deputy director for cruise at the Singapore Tourism Board. “The new terminal will be able to accommo- date the largest cruise ships currently in service, complete with parks and a waterfront promenade, vibrant nightlife and entertainment, events and celebrations, all accessible within minutes of the new cruise terminal.”
Another factor hampering the cruise industry is the forthcoming cabotage law, set to go into effect in May. Thelaw obliges all vessels operating in Indonesian waters to fly an Indonesian flag. Although it’s unclear whether cruise ships would be included under the new law, it could severely hamper, or even block, most cruise ships flying other flags from entering Indonesian waters. “The law is designed for commercial shipping but it would block cruise ships from coming,” says Cilian Budarlaigh, another founding partner of Indo Yacht Support along with Neil.
Cilian notes that a foreign flagged vessel would need to have temporary permit should it plan to cruise more than 40 hours and berth in more than one port in Indonesia. “Cruise ships generally travel thousands of miles, and they don’t want to visit only one place,” says Cilian, who hopes the government would clarify the treatment of cruise ships under the new law. Otherwise, warns Neil of Indo Yacht Support, “They will choose to go somewhere else.” The situation is made even worse with the uneven regulations for permits to visit certain ports. “If we process a permit with the customs office in Jakarta, it will cost about $400, but if we process one in local offices, [the same permit] may cost us $3,000 to $4,000,” says Cilian, whose company handled the permits for 47 superyachts that visited Indonesia last year. Nationally flagged vessels, such as the Silolona, Seatrek, or Yongline cruises do not require permits. Yet even they are not entirely happy with the situation. Rimayanti, director of Yongline Cruise that operates 30 vessels in Indonesia, says: “We’re disappointed with the lack of supporting facilities at the ports, including clean water, electricity and fuel supply.”
Currently, two giant foreign-flag cruise operators that call on Indonesian destinations are Princess Cruise and Royal Caribbean. Their passengers depart out of Singapore or Melbourne to stop in destinations such as Bali or Semarang. The ships would normally anchor at sea and then ferry passengers ashore, which is not as convenient as offloading passengers directly onto the land, as these ships can do in Singapore.
Cilian strikes an optimistic note: “Make everything simpler for cruise ships to come in. Change the worst situation [in Asia] into the best cruising destination.”
*The Article published on Forbes Indonesia vol 2, issue 3
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