Indonesian companies trimmed the capital expenditures (CAPEX) due to slowing business during COVID-19 pandemic - Photo by Transportation Ministry Office

JAKARTA (TheInsiderStories) – Two state-owned companies, PT Wijaya Karya Tbk (IDX: WIKA) and PT PP Tbk (IDX: PTPP) has won contract of Patimban Port project in Subang, West Java from the the government. The signed ceremony held on Thursday (02/13) at the transportation ministry office. 

Patimban project is one of the new National Strategic Projects. The package III costs Rp544 billion (US$38.86 million) and concentrated on the construction of a connecting bridge or connecting access road to the terminal located on the reclamation land.

“The project to connect road with the back up area and the sea. The soft opening is targeting in September 2020, ” said the director general at the transportation ministry, Agus Purnomo, on Thursday (02/13).

All the Patimban project carried out in a joint venture with a Japanese construction company, Toyo Construction Co., Ltd., and Wakachiku Construction Co., Ltd., as well as state-owned construction firms, consisted of a total of nine packages.

In details, the Package I worth Rp6.1 trillion, consisting of terminal and pier construction, dredging of swivel pools and shipping lines, reclamation, soil improvement, building works, water supply, dirty water disposal, and electricity supply.

Package II worth Rp1.8 trillion consists of breakwater construction, seawall, dredging of the shipping lanes, and installation of Sailing Navigation Supporting Facilities. Then, Package III worth of Rp524 billion consists of the construction of a connecting bridge.

While, Package IV consists of the construction of an access road from the north coast to the connecting bridge. “Package IV for the construction of road access from public work and public house is valued at Rp1.2 trillion,” he added.

Package V is the construction of the terminal for phases 1 – 2, Package VI is Dredging the shipping lane to a depth of 14 meters, Package VII is dredging the port pool to a depth of 14 meters, Package VIII is the supervision consultant and the supervision and design Consultant for Phase 1 – 2, and Package X the Supervision Consultant for the construction of the access road of Package IV.

The Patimban Port development project aims to reduce logistics costs by bringing production centers closer to ports, strengthening economic resilience, reducing traffic density in Jakarta by distributing vehicle traffic flows, and ensuring shipping safety including the oil and gas exploration area.

The development of the port as a whole is targeted to be completed in 2027 with a reclamation area of ​​300 hectares and a backup area of ​​up to 354 hectares.

US$1: Rp14,000

Written by Staff Editor, Email: theinsiderstories@gmail.com