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onstruction firm PT Astratel Nusantara, a subsidiary of diversified conglomerate PT Astra International, plans to expand its port in Balikpapan, East Kalimantan, and upgrade the port’s management system following the government’s decision to authorize the facility as one of the country’s bonded logistics centers (PLBs).

The firm has tasked the port’s operator, PT Pelabuhan Penajam Banua Taka, one of its subsidiaries, with tripling the size of Balikpapan’s Eastkal Port before 2025.

“The extension will increase the port’s total area to 95 hectares from the current 30 ha,” said Pelabuhan Penajam Banua Taka’s president director Billy P. Kadar.

With the extension, Astratel is expected to be able to triple the port’s handling capacity as well. Currently the port’s loading capacity stands at 2,500 tons per day or 750,000–800,000 tons per year.

The port now only specializes in handling the supply of oil and gas from business players to and from the East Kalimantan province. “We are still considering expanding into another fields such as commodities,” Billy said.

The port is currently undergoing organizational restructuring and upgrades so it can better handle the flow of goods when the port obtains the PLB license from the government in the next one or two months, Billy said.

The improvements include the introduction of a web-based system for storage management and creation of a 13,712 square-meter area for a container yard, and a 4,000 square-meter water area for PLB activities.

The improvements aim to fulfill the government’s expectations for the port when it finally acquires a license as one of 11 government-authorized PLBs.

As a PLB, the port will be able to increase the range of services it offers, including a longer storage period of up to three years, compared to a bonded warehouse that is only allowed to store materials for one year. It will also be allowed to store goods owned by other companies, including companies from other ASEAN nations.

In March, President Joko “Jokowi” Widodo announced his plan to inaugurate 11 PLBs across the country in an effort to transform Indonesia into an emerging logistics hub of the Asia-Pacific.

The PLBs are part of the implementation of the second economic policy package, which focuses on accelerating the convoluted procedure to obtain business or investment permits.

The permit to operate Eastkal as a PLB will certainly help Astratel in its plan to strengthen its foothold in the country. In addition to the port, Astratel is currently focusing on constructing four toll roads in Java.

The toll roads under development are the Kunciran–Serpong road in Banten, West Java, Mojokerto–Jombang in East Java and Semarang–Solo in Central Java. In April, Astratel also won a bid to construct the Serpong–Balaraja toll road project by property developer PT Bumi Serpong Damai.

“The level of progress on each project is different. For instance, we are aiming to finish the Mojokerto – Jombang toll road within two-three weeks, so that it can be accommodate the upcoming Idul Fitri exodus in July,” Astratel’s toll road director, Wiwiek D. Santoso said.

Astratel was established in 1992, initially as Astra International’s telecommunications business line, hence its familiar name to people in the industry. It cooperated with PT Telekomunikasi Indonesia for 11 years until 2005 before switching to infrastructure.

Currently a holding company for the afore mentioned toll roads and marine logistics hub, it also owns 49 percent of PT PAM Lyonnaise Jaya, a water supply operator in Jakarta.

“As our company grows, we also are looking into the possibility of tapping into other fields such as airport construction and real estate,” Astratel’s president director Irawan Santoso said. (adt)