Govt to build a new port in Tanjung Pinggir area of Batam
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.
Investor Daily - Pemerintah akan bangun pelabuhan baru di kawasan Tanjung Pinggir Batam
25 January 2022
Jakarta – The government will build a new port in Batam to organise ports in Indonesia to be more efficient, which is expected to reduce logistics costs. Transportation Minister Budi Karya Sumadi, accompanying Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan on Monday (24/1), inspected the potential new port location in Tanjung Pinggir, Batam City, Riau Islands Province.
Coordinating Minister Luhut stated the new port construction in Batam was one of the government's efforts to reduce logistics costs in Indonesia, which are still quite high.
"Currently, logistics costs are still around 23%, while [logistics costs] in other countries have reached an average of 13%. We target logistics costs to decline to 17% by 2024, sooner if possible," stated Coordinating Minister Luhut.
Coordinating Minister Luhut stated he would organise existing ports in Batam. Currently, on Batam Island, there are several existing ports, including Batuampar Port, Sekupang Port, Nongsa Pura Port, Batam Centre Port, Kabil Port, and Telaga Punggur Port.
"Later, the port in Tanjung Pinggir will be made into a green and smart port," stated Coordinating Minister Luhut.
The port in Tanjung Pinggir is projected to be larger than Tanjung Priok Port and will be integrated with Kuala Tanjung Port. Currently, the land size of Tanjung Pinggir is 94 hectares, which will be further expanded to 330 hectares with a water depth of about 40 metres.
On the same occasion, the Transportation Minister explained, the potential new port location in Batam was very strategic because it is directly opposite a large port in Singapore. The Transportation Minister stated the construction of this new port would use a business to business (B2B) scheme, so it will not use the state budget.
The government will provide opportunities for the private sector to invest in the new port construction.
"We regulators will support and make a timeline and a thorough study. We will do it with proper but fast governance. We hope that, before 2024, this port will be completed and operational," stated the Transportation Minister.
