JAKARTA (TheInsiderStories) – The Indonesian government is targeting the development of the Patimban port in Subang Regency, West Java Province to be completed in 2027. President Joko Widodo, who directly observed the port construction on Friday (11/29) said the total investment needed could reach up to Rp50 trillion (US$35.71 billion).
Aimed at improving the country’s logistics sector, the port project will facilitate the transportation of goods within and across the Indonesian borders. The port, part of Widodo’s effort to improve the country’s infrastructure to boost connectivity, will be developed in three phases until 2027.
“Yes, we hope the port will become a large port later in 2027. So it is indeed a big job so the stages are long-term,” the president told the media after the review, adding that in the first stage, the investment needed was approximately Rp29 trillion.
Following the completion of the first phase, the port will be able to handle 3.5 million twenty-foot equivalent units (TEUs) of containers. Once the second and final phases are completed, the port’s capacity will be increased to 5.5 million TEUs and 7.5 million TEUs, respectively.
According to the president, the total area of the port reaches 654 hectares as a whole. Of these, 300 hectares will be earmarked for containers and vehicle terminals. Meanwhile, another 354 hectares will be prepared to back up the area.
“Indeed, this will be a lot for the vehicle terminal to export cars from our automotive industry,” he adds, saying the development of Patimban Port has been good so far, hoping the first stage will be completed in June next year.
For access to Patimban port, the head of state said, currently non-toll road access has been done and is almost complete. The president targets the road to be completed between April-June 2020. The cost will be Rp1.12 trillion.
The total length of the access road is 8.2 kilometers (Km), consisting of 7.5 Km of the elevated road and 0.7 Km of grade. Currently, the progress has reached 55.8 percent and land acquisition has reached 95 percent, the president noted.
“We can see that the progress is very good, there is no problem. There is only another facility whose name is approximately 37 kilometers from the Cipali toll road to get here. So there is speed, efficiency is going to this port,” he said.
With the construction of the second largest port after the Tanjung Priok port in Jakarta, the president hopes that Indonesia’s competitiveness can increase. Specifically, Widodo wants this port to support Indonesia to become a major hub of automotive production.
“Indeed, the future direction is a special port for cars. Because we want to become a major hub for automotive production in our region so exports to Australia, New Zealand or ASEAN countries all depart from this Patimban port,” Widodo said.
For the development of the port, the government has selected a consortium of five companies, including Japan’s Penta-Ocean Construction, TOA, Rinkai Nissan Construction, and Indonesia’s PT Wijaya Karya Tbk (IDX: WIKA) and PT Pembangunan Perumahan Tbk (IDX: PTPP).
The port is scheduled to start operation early next year, with the initial commissioning of a car and ferry terminal. The Patimban Port is also expected to reduce heavy traffic at Tanjung Priok Port situated in North Jakarta.
Indonesia has so far received JPY118.9 billion ($1billion) loan from Japan, covering around 83 percent of the total costs of the first stage of the project. The government previously announced that 51 percent operatorship of the port will be in the hands of a local company, while foreign companies can retain the remaining stake.
Written by Lexy Nantu, Email: email@example.com