Indonesia Boosts Development of Seaports

Jan 2022

The Government of Indonesia has initiated and executed many projects related to infrastructure development infrastructure projects over the last six years, including the construction of new toll and non-toll roads, new airports, seaports and dams, as well as the upgrade of existing infrastructure.

There remains a strong focus on infrastructure development in 2022, with the government budgeting IDR 384.8 trillion (USD 27 billion) for infrastructure development in the State Revenue and Expenditure Budget Draft (RAPBN) for the year, while continuing to collaborate with foreign investors in this area. The Indonesia Investment Authority (INA) has signed an agreement with Dubai-based logistics firm DP World to explore investment in port infrastructure in Indonesia.

DP World and INA will be forming a consortium and working team to explore developing port terminals, cargo parks, feeder network systems, landside transportation and industrial zones, among other related infrastructure. It is estimated that the economic value of this cooperation could reach up to USD 7.5 billion in the long term.

According to INA, Indonesia’s maritime and port sector is key to supporting trade and consumption across the archipelago, and this collaboration with DP World would enable the country to resolve issues of high logistics costs and port inefficiencies.

(Sources: Vietnam Plus; The Jakarta Post)

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