Benoa Port to be developed through reclamation
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 - Pelabuhan Benoa dikembangkan lewat reklamasi
2 September 2024
By Ichsan Amin
Jakarta, ID - The government will develop Benoa Port, Bali, through land reclamation. The reclaimed land will serve as an important legal basis for orderly administration and good governance.
This reclamation will be carried out after the government, through the Directorate General of Sea Transportation of the Transportation Ministry, together with PT Pelabuhan Indonesia or Pelindo (Persero), signed an agreement to utilise the reclaimed land as a concession project for the development area I of Benoa Port, Bali.
The signing marks a strategic step in the development of maritime transport infrastructure, particularly in the port sector. The Director General of Sea Transportation at the Transportation Ministry, Antoni Arief Priadi, stated that this signing is also an effort to improve services in the maritime transport sector.
"This is a tangible manifestation and our commitment to boost productivity, efficiency, and the quality of growth in the maritime transport sector," said Antoni in his statement, quoted on Sunday (01/09/2024).
The agreement includes the utilisation of reclaimed land covering 247,700 square metres at Benoa Port. The land will be used for the construction, management, and development of port supporting facilities, in accordance with the Benoa Port Master Plan, which is also part of the Bali Maritime Tourism Hub (BMTH) National Strategic Project.
"The reclaimed land will serve as an important legal basis for orderly administration and good governance. This is also a prerequisite for registering land rights to support the improvement of services and operations at Benoa Port," explained Antoni.
The agreement is valid for 30 years, during which 5% of the land, or 12,385 square metres, will be handed over to the Harbourmaster’s Office and Port Authority (KSOP) Class II Benoa for governmental purposes.
Antoni also emphasised the importance of collaboration between the government and state-owned enterprises in port management. "With the signing of this agreement, we demonstrate a joint commitment between the Transportation Ministry and PT Pelabuhan Indonesia to enhance port management to be more professional, effective, and efficient amidst increasingly complex global challenges," he added.
The signing of this agreement is expected to provide optimal benefits, both in increasing state revenue and public welfare, as well as strengthening Benoa Port's position as one of Indonesia's major maritime hubs.
"I extend my gratitude and appreciation to KSOP Class II Benoa, PT Pelabuhan Indonesia, and all parties who have worked hard," he concluded.
Prominent tourism
As known, BMTH is a National Strategic Project initiated by PT Pelindo to develop Benoa Port Bali into a prominent maritime tourism hub. BMTH integrates the tourism, port, and entertainment sectors to create a multiplier effect for regional and national economic growth.
Pelindo President Director, Arif Suhartono, explained that the BMTH project absorbed approximately 1,900 local workers during its construction phase. BMTH is also expected to drive local economic growth and open new job opportunities for the community around the Benoa area.
"The progress of BMTH construction has now almost reached 100%. This demonstrates the commitment and hard work of all parties involved in this project, and in line with the directives of the State-Owned Enterprises Minister, it will be completed by September 2024," Arif said recently.
Arif explained that the progress of BMTH Benoa's construction is quite significant and is targeted to be completed this year, supported by related ministries such as the Transportation Ministry, local and provincial governments, and the Marine Affairs and Fisheries Ministry (KKP).
"Of course, we hope this will later create a tourism ecosystem in Bali and also potentially generate a multiplier effect contributing to Bali's Gross Regional Domestic Product (GRDP) and increase foreign tourist visits to Benoa Port by 1.5 times and domestic tourists by up to 2 times," he said.
Arif added that the presence of BMTH has become an attraction for international tourists through cruises, proven by Benoa Port successfully docking 48 cruises with passenger traffic reaching 77,000 people in 2023. This is one indication of the potential for new tourist visits to Bali from the sea.
"This is a good potential. This year, with various capacity additions at BMTH, we are confident the numbers will increase," he concluded.
Potential development
Meanwhile, maritime expert from Institut Teknologi Sepuluh Nopember Surabaya, Raja Saut Oloan Gurning, revealed that the management of Benoa Port is expected to become a source of revenue for the state through PT Pelindo's management.
"This sector is closely related to tourism, where the port can be utilised for foreign and local tourists using cruise ships, including yachts and other pleasure vessels," he said to Investor Daily.
The Benoa Port BMTH Development Project is one of the National Strategic Projects (PSN) in the port sector with an investment value of around Rp6 trillion. To support the realisation of the completion target, several works such as gate development and expansion of the international passenger terminal have been successfully completed.
"Of course, it will be a new source of revenue, and we all hope the market is large because we know Bali is also an international tourist destination frequently visited by foreign cruise ships," he said.
As a maritime hub, Bali Maritime Tourism Hub provides docking facilities for yachts on the west side, with facilities such as Wet Berth, Dry Berth, Yacht Club, Sport Facility, Lounge & Bar, as well as supporting facilities like Bali Fish Market and MSME Retail.
"In addition to supporting the tourism sector, BMTH also provides facilities for Bulk Liquid Terminal and Container Terminal. Access to these cargo terminals will be different from access to tourism facilities. So everything is complete, which we hope will also be managed optimally in the future," he concluded.
