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JAKARTA (TheInsiderStories) – Indonesia’s Transportation Ministry has named two Indonesian companies PT Wijaya Karya Tbk (IDX: WIKA), PT PP Tbk (IDX: PTPP) and Japanese firm Penta-Ocean Construction as the winner of Japanese funded Patimban Port Project located in Subang, West Java. The minister Budi Karya Sumadi named the winner on Sunday (20/05).

The operator of Patimban port state-owned PT Pelabuhan Indonesia (Pelindo) II. Previously the consortium of PT Adhi Karya Tbk (IDX: ADHI),PT Astra International Tbk (IDX: ASII) and Japan’s Toyota Motor Corp. entering the final phase of the tender for the Port of Patimban contractor with the winner.

Sumadi met the executives from the consortium on Sunday near the site to notify them formally of their selection. These companies will handle part of the project’s first phase and will break ground in July.

in a press statement released on May, 20, the minister said, Port Patimban will be focused to send automotive products and industrial products from Karawang in West Java. The development of the port is also aimed at streamlining export costs and completing traffic congestion in Jakarta.

“The government hopes that with the operation of this port will be able to streamline the cost for export and also to solve traffic jam in Jakarta, because so far, from Java and Cibitung to Tanjung Priok Port is very long and cause traffic jam in Jakarta,” said Sumadi.

The progress of the Port of Patimban development to date has reached the stage of contractor selection and will soon begin construction. The development will be implemented in three phases, and is expected to serve export to 7.5 million TEUs by 2027.

“The port is built in stages, first is next year, after that approximately 2023, and last year 2027. By the year 2027 Patimban already in the capacity of 7.5 million TEUs such as Tanjung Priok Port now,” added the minister.

Previously, Japanese and Indonesian Government had signed ¥118 billion (US$1.09 billion) in loan deal to help finance construction of Patimban port funded mostly by the Japan International Cooperation Agency (JICA) 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.

The first stage of is the construction of the port and a 8.1 kilometer road access connecting Patimban and north coasts line. The project will require 570 hectares of land, and the acquisition will be funded using the State Budget. It will cost Rp500 billion.

The second stage of development involve road access to the Port of Patimban, which connects Subang with the national road and Cikopo – Palimanan toll road in West Java. This phase is still being discussed with JICA. The project’s second phase, and a 40 km road access will cost around Rp5.35 trillion. Constructon is set to begin in 2020.

Indonesia hopes the port, once in operational, will help stimulate its automotive exports by 30 per cent. The port will have the capacity to handle 1.5 million 20-foot equivalent units (TEUs) of containers once it is partly complete in 2019 and 7.5 million TEUs by 2027.

The Patimban Port project is one of several Indonesia’s flagship projects being done in collaboration Japan, a long-time investor for the countey that is now intensely seeking a stronger grip on infrastructure in Southeast Asia’s largest economy.

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.