Indonesia is the largest archipelago in the world, which its sea area is twice greater than its land area. The archipelago is on a crossroad between two oceans, the Pacific and the Indian, and bridges two continents, Asia and Australia. This strategic position implies that maritime transport is become very important. Maritime transport today plays a vital role in international transport. Most of the total volume of goods in the world goes by sea although this varies from one region to another. This indicates that international trade carried by sea is more favorable. Maritime transport, and consequently port services, is therefore vital for the economies of developing countries. Indonesia Port Corporation II is the largest port in Indonesia, which has responsibility in port services. It provides vessel services, cargo handling services, and other services. As a big corporation in port services, Indonesia Port Corporation II has a critical roles in supporting economic growth sustainability. Omission of interest will influence economic activities of this country. Furthermore, poor management of this port will bring down logistic performance that would, at the end of the day, put the competitive edge of national products to the lowest point. Finally, Indonesia Port Corporation II is one important factor of the various points in supply chain of products’ transportation in a very fast economic activity. People are intangible asset of company, which is consisted of personnel’s competency and commitment. This perspective perceives that people as the main contributor of leading company succeed in competition. Whatever the investment in port infrastructure and equipment or in modern technology, port management can only be efficient if it has the required number of skilled and committed personnel carrying out daily tasks to provide high quality services to port customers. For implementing them, port has to master human resources management allowing the workforce to acquire the required skills and attitudes that ensure growth to face world competition and adapt new technologies. These are challenges for HR people, thus HR Department roles become very important in port business. Nowadays, HR roles in port business are more than functional expertise. The HR function roles give increasingly significant contributions to organization sustainability. Furthermore, HR people play their role as business strategic partner. In this role, HR people contribute to the development and accomplishment of port business plan and objectives. The HR business strategy and objectives in port are established to support the achievement of the overall strategic business plan and objectives. HR System are designed alligning to corporate directions. This strategic partnership impacts HR services such as the design of human resource acquisition, recognition and strategic pay, performance development and apraisal systems, career management and succession planning system, and employee development. These have to assure each member of the workforce at every hierarchical level understand the importance of his or her tasks in giving contribution throughout the transport chain. In the future, competition in port operation will be tighter due to the Law No. 17/2008 on Shipping in the year 2008. The Law opens wider range of opportunities for private enterprises in operating ports. This is a new fact in the nation’s port business atmosphere. It is time to turn these challenges into opportunities to be more professional to then transform the company from port regulator into a world class port operator. Regarding to the law No. 17/2008 together with its implementating regulation, Indonesia Port Corporation II needs to incorporate the new regulation as a basis for formulation of business strategy and objectives going forward. In order to face the implementation of the law, Indonesia Port Corporation II needs to realize that the expected improvement focus on services, especially customer satisfaction. It challenges this port to maintain its existence and to prepare the company to continue growing in the future through strategic and comprehensive measures. To meet customer needs, port management commit to improve company’s productivity by changing working time to be 24/7 to achieve “zero waiting time”, restructuring organization, improving working method, investing on port handling facilities and equipments, improving bussiness process and ICT, and developing service oriented human resources. In terms of organizational development and improvement of the quality of personnel to be more service oriented, HR Department has to redesign strategic and objectives by implementing a number of activities including improving recruitment strategy of workers with specific requirments, human resource competences through education and training, career management and succesion planning, and world class culture corporate building. HR Department also needs to improve cadre acceleration management by indentifying, assessing, and retaining them to stay in organization and achieve high performance of organization.
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