New Container Terminal May Transform Indonesia Trade: Analysis
During the past five years, trade between Indonesia and the rest of Asia has mushroomed, particularly when compared to trade with North America and Europe (see the graph shown here). How much of this is due to proximity, or Indonesian goods being re-labelled by another Asian country, is beyond the scope of this analysis, but the lack of deep-sea services to the main consumer markets of Europe and North America must play a part, considers the analysis. Although Indonesia is the world’s fourth most populous nation and South East Asia’s largest economy, ocean carriers currently offer no direct mainline services to either Europe or the US due to port capacity shortages.
Indonesia to Build Three New Ports
In addition to the much anticipated Kalibaru Port that is expected to cost Rp 22.6 trillion (US$2.39 billion) in the first investment phase, Pelindo II will construct new ports in Tanjung Sawuh, Batam; Riau Islands province; and Sorong in West Papua, said president director Richard Joost Lino. “At the end of July, we will sign an agreement with the China Merchant Holding to construct a container terminal and an iron ore trans-shipment terminal in Batam,” Lino said on the sidelines of a logistics discussion with the Indonesian Chamber of Commerce and Industry (Kadin). Pelindo II is set to begin construction of the 4 million 20-foot equivalent units (TEUs) facility next year. Total investment for the Tanjung Sawuh Port is projected to reach Rp 20 trillion, Lino said.
