This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Ekspansi Makassar New Port: Poros penghubung logistik timur
1 February 2024
By Nugroho Nafika Kassa
The capacity expansion of the container terminal in Makassar New Port is forecasted to invigorate logistics stevedoring activities in eastern Indonesia. The activity is predicted to open new opportunities and industries in Bumi Ewako.
PT Pelabuhan Indonesia (Persero) Regional 4 is actively formulating multiple strategies to enhance the physical construction of Makassar New Port (MNP). The goal is to optimize stevedoring activities and position it as a key hub for eastern Indonesia.
Pelindo Regional 4 Head Enriany Muis said that his company was currently expanding MNP to increase the capacity of its container stackyard to 2.5 million TEUs.
The enhancement of the facility will include the extension of the dock from 320 metres to 1,600 metres. Moreover, the yard will also be expanded from 39 hectares (ha) to 55 ha.
The initiative aims to optimise stevedoring performance, positioning it as the primary service that will establish MNP as a central hub.
“With the capacity, MNP has the potential to serve as a central hub for eastern Indonesia. This involves consolidating goods from western Indonesia, unloading and reloading them, and subsequently distributing them to regions such as Kalimantan, Maluku, and Papua,” he explained to Bisnis on Wednesday (31/1).
He added that currently, stevedoring activities in MNP were still dominated by domestic commodities, such as mixed goods and basic needs that include rice and cement.
There are also several foreign commodities that will be imported, such as seaweed and nickel.
Hence, Pelindo has devised strategies to increase the interest of shipping operators to visit the port.
The strategies encompass the development of modern facilities and infrastructure, incorporating advanced container-handling equipment. This includes the establishment of supporting facilities such as fuelling stations, repair and maintenance shops, as well as warehousing facilities. Additionally, emphasis is placed on ensuring easy access to the terminal.
Besides modernisation, a range of comprehensive services has also been prepared. These services encompass container stevedoring, container stockpiling, integrated distribution, storage warehouses, container provision, and various others.
“A terminal that is increasingly modern with complete services is predicted to make container operators more interested in operating at the terminal. They will be able to fulfil their needs and satisfy their customers,” he stated.
Moreover, his company is also currently designing competitive tariffs and costs to attract operators. Hence, he added that they must be able to optimise operations and reduce operating costs to offer costs lower than other terminals.
Enriany mentioned that upcoming strategies involved enhancing services and customer satisfaction. This includes boosting effectiveness and operational efficiency, reducing waiting times, enhancing security and service reliability, and providing ample technical support.
“By improving services and customer satisfaction, the terminal will attract the interest of container operators to use its services continuously,” he stated.
New opportunity
The expansion is reckoned to accelerate the economic growth of areas in eastern Indonesia, especially in South Sulawesi. Extensively, the new port will affect the movement of the national economy.
An economist from Universitas Hasanuddin (Unhas), Hamid Paddu, explained that the capacity development of MNP would lead to a reduction in logistics costs, in line with the anticipated increase in the circulation of goods.
He added that this would accelerate a growth of industries in South Sulawesi.
He reckoned that MNP’s position as a logistics hub was forecasted to expand the potential for direct calls from Makassar to various destination countries. This, in turn, would make export costs more affordable, enhancing the competitiveness of commodity prices in South Sulawesi.
If it can be realised and carried out consistently, it can escalate South Sulawesi’s economic growth by around 9%-10% and national economic growth by up to 6%-7%.
“Propelling the economic cycle in regions beyond Java, like Sulawesi, through port development is the way forward, given the saturation in Java. With this initiative, I am optimistic that Indonesia can achieve a growth rate of approximately 6%-7%. This move, at the very least, holds the potential to lift us out of the middle-income trap.,” he explained when contacted by Bisnis.
Hamid explained that areas in eastern Indonesia only needed to prepare additional infrastructure, such as direct access from production centres to ports and modes of transportation, which are still serious challenges.
For example, in South Sulawesi, the toll road is only available in Makassar, and it has not extended to the surrounding areas that are recognised as production centres.
The construction of railways intended for carrying logistics has not been completed.
Besides that, he added that the width of roads in the area could not accommodate container chassis trucks, leading to suboptimal delivery capacity.
Hamid stressed that infrastructure remained the primary issue. According to Hamid, there is a need for a transportation network to connect production centres directly to their respective hubs, such as ports.
“In South Sulawesi, at least the railway needs to reach MNP. The toll road must connect the industries to ports. The point is, goods can directly enter ports quickly,” he explained.