Indonesia Announce Massive Port Project

In a bid to boost its ailing maritime infrastructure, Indonesia is planning to construct a deep-sea port in Kijing, which is anticipated to reduce logistics costs from 23.5% of GDP to 19.2%, according to the Journal of Commerce.

The Indonesian government’s ‘Port Development Master Plan’, focuses on six main ports, including Batam and Tanjung Perak.

The proposed international deep-sea port at Kijing is being constructed in order for the country to keep abreast of increasing cargo demand, which has had an annual growth rate of 4.6%.

According to Indonesian port developer PT Pelabuhan Indonesia (Pelindo) II, around US$88 million will be allocated for the development of both Kijing and Cirebon ports.

A feasibility study for the port is to be conducted by risk-assessment company BMT Asia Pacific.

Mark Yong, director of BMT Asia Pacific, said: “The Kijing Deepwater Port is proposed to assist, improve, facilitate, and value-add export or import activities in resources-abundant West Kalimantan.

“Kijing port will act as a catalyst for the development of West Kalimantan,” he predicted. “The port has room to develop to support growth after 2030 and can be used as a gateway for a special economic zone.”

He added that export and transhipment cargo is normally transferred from West Kalimantan to other Indonesia ports such as Batam or Tanjung Priok.

Indonesia recently announced the development of 22 ports nationally, in order to support the Indonesian government's plan to turn the country into a maritime axis.

In other news, the Port of Townsville in Northern Australia has a Memorandum of Understanding with the Indonesian Port Corporation to enter into a sister agreement, which seeks to facilitate knowledge exchange between both port authorities.

(Source: Indonesia Ports Corporation)