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JAKARTA (TheInsiderStories) – Maritime Coordinating Minister Luhut Binsar Pandjaitan revealed that the operators of the Patimban seaport in Subang, West Java would be managed entirely by private companies. Previously, state-owned port operator, PT Pelabuhan Indonesia II is consider to manage the new port.

He added the decision has been taken in order to encourage the competition between port operators in the country.

“Let them compete so we can find out which ones more efficient,” he said after holding a limited meeting at the presidential palace on Sunday (06/23).

Transportation minister Budi Karya Sumadi, added that his ministry will conduct a tender to pick the operator of Patimban. Now, there were around 10 private companies interested to manage the port.

The Patimban project, which is built on an area of ​​around 300 hectares, costs around Rp43 trillion (US$3.03 billion). The development has been running since August 2018 and is targeted to be completed by 2020.

The car terminal, which will operate in the mid-year, will later have a capacity of 250 to 300 thousand vehicles a year. He expect, with the presence of the car terminal in Patimban, its expected to reduce the traffic congestion, especially for the car import-export at Tanjung Priok port in Jakarta city.

During this time, heavy vehicles, including export-import vehicles, contributed to traffic congestion, especially the section between Tanjung Priok and Bekasi in West Java.

Patimban Port located about 70 kilometers from the Karawang Industrial Estate and Bekasi in West Java, where many Japanese industrial firms, particularly automotive and electronics manufacturers operated.

The project is one of several flagship projects between Indonesia and Japan, a long-time investor that now intensively seeks a tighter grip on infrastructure in Southeast Asia’s largest economy.

Other projects include the development of the MRT system and the revitalization of the Jakarta-Surabaya railway, which will reduce travel time between Java’ main cities by nearly half to only five hours.

Previously, the ministry has named PT Wijaya Karya Tbk (IDX: WIKA), PT PP Tbk (IDX: PTPP) and Japanese firm Penta-Ocean Construction as a developer of the Patimban Port. The development will be implemented in three phases, and is expected to serve export to 7.5 million TEUs by 2027.

Japanese and Indonesian Government had signed ¥118 billion ($1.09 billion) in loan deal to finance the construction of Patimban port funded mostly by the Japan International Cooperation Agency  under a 40 years tenor loan with interest rate of 0.1 per cent for the first phase and will be disbursed as soon as the project start constructing on 2018.

Indonesia has become a ‘golden place’ for overseas Japanese investors. In recent years, the economic partnership between Indonesia and Japan has strengthened and grown rapidly.

Japan has more investments in Indonesia than any other Southeast Asian country, and according to data from Investment Coordinating Board, investment from Japan to Indonesia has increased considerably, totaling $5.4 billion in 2016 and with an average growth rate of 30 percent.

Written by Lexy Nantu, Email: