Pelindo builds logistics ecosystem in Gresik
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 - Pelindo bangun ekosistem logistik di Gresik
1 November 2024
Jakarta, ID – With the swift progress of industries in Indonesia, the national logistics sector is anticipated to become more efficient in the coming years. A significant driver of this transformation is the development of Java Integrated Industrial and Port Estate (JIIPE), an integrated industrial estate in Gresik, East Java.
The initiative by PT Pelabuhan Indonesia (Persero), or Pelindo, plays a crucial role in integrating the logistics sector with various industries. This integration is expected to enhance Indonesia's economic competitiveness in the global market.
JIIPE, designated as a special economic zone (SEZ), is an integrated area that features a deep-sea port, an industrial estate, and residential housing. This infrastructure offers efficient and swift logistics solutions, particularly for export-oriented industries.
JIIPE contributes to strengthening the national supply chain by providing a port facility capable of accommodating large ships, thereby accelerating the flow of domestic and international cargo. Through JIIPE, Pelindo aims to play a role in improving the national logistics sector by enhancing operational efficiency.
The government aims to reduce logistics costs from 14.29% to 8% of the gross domestic product (GDP) between 2024 and 2045, in order to promote more efficient and competitive economic growth.
One significant achievement from this collaboration is the inauguration of PT Freeport Indonesia's copper smelter in JIIPE, which has an investment value of Rp56 trillion. The inauguration took place on 23 September 2024.
Tony Wenas, President Director of PT Freeport Indonesia (PTFI), predicts that the single-line copper smelter in Gresik, East Java, has the potential to generate state revenue of Rp80 trillion annually.
"JIIPE in Gresik, East Java, is advantageous for us [at Freeport], particularly in terms of facilities. This is one of the main reasons we chose JIIPE in Gresik for the smelter location," Tony said in his press statement, cited on Thursday (31/10/2024).
Tony stated that the relevant factors included land availability, permit and administrative readiness, and infrastructure support, such as the port, roads, laydown area, utility availability, and the supply of electricity, gas, and water, as well as waste treatment. His company has also conducted studies on the economic aspects and the accessibility for off-takers.
Tony also emphasised the status of JIIPE in Gresik as a Special Economic Zone (SEZ) in terms of technology and manufacturing. "Obviously, we can benefit in many ways. We can gain additional resources from the facilities, as outlined in the special mining permit (IUPK)," he stated.
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