Nearly 10,000 Containers Piled Up at Jakarta Port as Firms Delay Pickup

According to the latest information received by Yihangyun, Tanjung Priok Port—Indonesia's largest container port—is currently facing a severe backlog of containers, with nearly 10,000 import containers piling up at the terminal.
In response to external speculation that "slow customs clearance is causing port congestion," Indonesian customs authorities have denied the claim. They emphasized that the massive container backlog is not due to clearance procedures; rather, it stems from many companies failing to move their goods out of the port area promptly after customs release, thereby placing continuous strain on the terminal's storage yards.

Last Tuesday (local time), Djaka Budhi Utama, Director General of Customs and Excise, stated at a parliamentary hearing in Jakarta that customs operations at Tanjung Priok Port consistently adhere to national service standards. He affirmed that clearance efficiency meets regulatory requirements and that there is no issue of port congestion caused by slow customs processing.
"The rising number of containers at the port is not caused by customs clearance procedures," Djaka Budhi Utama stated. "Even after goods receive release authorization, a large number of containers remain in the port area because many companies do not immediately arrange for their transport out of the terminal."
He further revealed that some companies continue to use the port's temporary storage yards for their goods even after obtaining customs release. Chinese automakers BYD and Wuling Motors were specifically named in this context. Customs officials noted that these companies kept containers in temporary port storage for up to three days after release, with some containers remaining in the port area for more than two weeks.
Djaka stated that at the peak of the congestion, the number of imported containers backed up at Tanjung Priok Port approached 10,000.
Regarding the reasons for the delay in cargo pickup, Indonesian customs explained that it was not entirely due to insufficient transport capacity, but rather a choice made by some companies based on cost considerations. Due to limited off-port warehousing resources and the fact that storage fees within the port area are lower than those at private off-port logistics warehouses, many importing companies choose to keep their containers at the port, effectively using the terminal yard as a temporary warehouse. This has resulted in a persistent backlog of containers within the port area.
Customs officials noted that while this practice lowers warehousing costs for the companies themselves, it severely hampers port turnover efficiency and places increased strain on Indonesia's logistics system.
As large numbers of containers occupy the yard for extended periods, logistics efficiency at Tanjung Priok Port continues to decline, raising market concerns regarding the resilience of Indonesia's supply chain. Industry insiders point out that the prolonged average container dwelling time not only affects port operational efficiency but also threatens to disrupt the supply of raw materials to industrial enterprises, thereby negatively impacting manufacturing production.
In fact, the Indonesian government launched an investigation into the port congestion issue earlier this month. Indonesian Finance Minister Purbaya Yudhi Sadewa personally inspected Tanjung Priok Port and discovered that approximately 3,100 container-related documents were still awaiting processing. This backlog is a key factor contributing to extended dwelling times and has begun to disrupt the supply of raw materials to industrial firms.
Purbaya stated that the current congestion has led to a significant increase in container dwelling times and is beginning to affect the steady supply of raw materials required for corporate production.
To restore normal port operations as quickly as possible, the Indonesian government has directed customs authorities to increase staffing and implement 24-hour shift schedules to accelerate the processing of the backlog, aiming to reduce the number of queued containers back to a normal level of around 500.
"I have instructed them to increase staff and implement 24-hour shifts until the number of containers queuing at the port drops to around 500," Purbaya said.

Meanwhile, the Indonesian government plans to introduce stricter management measures. Reports indicate that the government is considering a financial penalty mechanism for companies that occupy port yard space for extended periods; companies that deliberately use the port as a long-term storage facility—thereby causing excessive occupation of port resources—may face fines or other financial penalties in the future. Analysts believe that as Indonesia's most important international container port, Tanjung Priok in Jakarta handles the vast majority of the country's international trade cargo; consequently, its operational efficiency has a direct impact on Indonesia's overall logistics system and supply chain stability. This incident also highlights that port congestion is not solely determined by customs clearance efficiency; factors such as insufficient off-port warehousing capacity, corporate considerations regarding logistics costs, and the pace at which cargo owners collect their goods also play significant roles in port turnover efficiency.
It remains to be seen whether port congestion can be effectively alleviated as the Indonesian government continues to optimize import regulatory frameworks, strengthen port management, and encourage businesses to collect cargo in a timely manner.