The strategic partnership forged between the Indonesia Investment Authority (INA), the Indonesian government-owned port operator Pelindo, and DP World is set to establish Indonesia’s most direct link with the Malacca Strait, renowned as one of the world’s busiest shipping routes.
The agreement, signed by Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, Arif Suhartono, President Director of PT Pelabuhan Indonesia (Persero), and Ridha Wirakusumah, CEO of Indonesia Investment Authority, holds significant promise for the country’s future.
Expanding Capacity and Enabling Direct Calls
In the long term, this partnership aims to amplify BNCT’s capacity, increasing it from its current 600,000 TEUs to an impressive 1.4 million TEUs. Furthermore, BNCT strives to attract more direct calls, effectively reducing North Sumatra’s reliance on regional hub ports and enabling direct access to both regional and global markets.
Solidifying the Position as a Major Trade and Logistics Gateway
BNCT currently operates as a local hub for the neighboring provinces in Sumatra. With the planned expansion and modernization initiatives, it is poised to cement its status as a key trade and logistics gateway within the Malacca Strait.
Connecting Sumatra’s Terminals and Small Ports
DP World, in collaboration with its partners, will not only focus on modernizing maritime infrastructure but also extend efforts to connect other terminals and small ports on the Island of Sumatra. This strategic move aims to harness BNCT’s potential in reducing container logistics costs within Northern Sumatra.
Government Perspective: Promoting Economic Growth and Strengthening Trade Routes
Erick Thohir, the Minister of State-Owned Enterprises, expressed the government’s stance:
“Under President Joko Widodo’s guidance, port development holds immense strategic value for equity and accelerated economic growth in both regional and national contexts. The establishment of this new container terminal at the Port of Belawan is expected to support downstream activities, maximize exports through innovative approaches, and further boost the economy of North Sumatra, which is experiencing sustained growth. This aligns perfectly with the objectives of the terminal port development, which aims to strengthen the national port industry ecosystem while enhancing the competitiveness of Indonesian ports as crucial trade routes within Southeast Asia and internationally.”
Industry Leaders’ Perspectives: Infrastructure, Efficiency, and Global Trade
Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World, expressed his pride in contributing to the expansion of the Belawan New Container Terminal and supporting Indonesia’s infrastructure development ambitions. By investing in cutting-edge sustainable technologies, offering world-class training, and adhering to the highest standards of health and safety, DP World strives to eliminate inefficiencies and facilitate seamless trade between Indonesia and the global market.
Arif Suhartono, President Director of PT Pelabuhan Indonesia (Persero), regarded the Shareholder Agreement as a significant milestone following the Master Agreement signed in August 2022. Recognizing the complexities and duration of the process, Suhartono expressed his delight in seeing the agreement come to fruition, attributing its success to the relentless efforts and collaboration of all parties involved. With an optimistic outlook, Suhartono believes that this agreement will serve as a catalyst for the further development of BNCT, positioning it as a world-class, interconnected, and fully integrated container terminal. Such progress will undoubtedly foster increased trade opportunities, benefiting exporters, downstream industries, and the populace. The realization of the Belawan Investment and Operations collaboration signifies business expansion and strategic partnership, two pillars central to the 2023 roadmap. Moreover, this collaboration stands as a testament to the heightened investor confidence in Pelindo after the merger.
Ridha Wirakusumah, CEO of INA, emphasized the significance of INA’s investment in the Belawan New Container Terminal. This transformative project marks a critical step toward establishing Indonesia as a prominent maritime axis and a key player in the global logistics industry. Wirakusumah emphasized that this endeavor supports Indonesia’s economic growth while advancing its maritime sector, playing a pivotal role in driving economic progress in the country.
Conclusion
The strategic partnership among INA, Pelindo, and DP World for the development of the Belawan New Container Terminal is set to revolutionize connectivity and trade in Indonesia. With its expanded capacity, improved infrastructure, and direct access to the Malacca Strait, the BNCT is poised to become a world-class gateway for trade and logistics. This endeavor aligns with the government’s vision of fostering economic growth and strengthening Indonesian ports as strategic trade routes within Southeast Asia and beyond. Through concerted efforts and collaboration, this partnership will undoubtedly contribute to Indonesia’s emergence as a global maritime force, driving economic development and unlocking new opportunities for exporters and industries alike.