Indonesia will build a new container port in the Batam Free Trade Zone and Free Port in Tanjung Pinggir, Sekupang Sub-district.
The announcement was made by Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan.
“We will build a green and smart port,” said Minister Luhut Binsar Pandjaitan during a visit to the proposed location for the port in Batam.
The design of the new port will be based around green operations being environmentally friendly, specifically protecting the surrounding lakes and mangroves.
The development area spans 94 hectares but is set to be increased to around 330 hectares through reclamation. The Minister also stated that this port will be larger than Tanjung Priok Port in Jakarta.
Port construction has been previously halted due to the COVID-19 pandemic. On top of this, the cost of building the port in Indonesia is relatively high, with logistics accounting for 23 per cent of the costs.
“We agreed that we would push the cost to drop by 17 per cent by 2040,” he continued.
Digitalisation will play a large part in the port’s infrastructure, through the use of the National Logistic Ecosystem, which was launched in Batam in March 2020.
“We [the government] act as the regulator, creating the time frame and study. The regional-owned enterprises (BUMDs) and private companies will invite the foreign investors,” the Minister concluded.
In other recent news, the Indonesia Investment Authority (INA) previously signed a strategic alliance agreement with DP World to enhance the maritime and port sector in Indonesia through investing $7.5 billion into its seaport facilities.
As per the agreement, DP World will bring its world-class technology and best practices to develop new port terminals and assets, enabling greater shipping efficiency and enhancing inter-island and international connectivity.