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Japan grants Indonesia ¥1.43b to build vessel traffic system in Dumai
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Transportation Minister Budi Karya Sumadi (right) and the ministry's sea transportation director Tonny Budiono speak to journalists in Jakarta. (Antara/Sigid Kurniawan)
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ndonesia will construct its second vessel traffic system (VTS) in an effort to improve its guiding service for ships passing through the Malacca straits with a ¥1.43 billion (US$12.9 million) grant from Japan.
The VTS is an integrated system of navigation and communication to aid the vessels crossing the Malacca and Singapore straits, one of the busiest trade routes in the world.
The new VTS will be constructed in Dumai, Riau. The first VTS, constructed in Batam, in Riau Islands province, was finished on June 10 last year, after construction began in October 2010.
“This device will help Indonesia provide better service in the straits,” Transportation Minister Budi Karya Sumadi said on Monday.
Indonesia officially started the guidance service in the Malacca and Singapore straits in April this year, implemented by state-owned port operator Pelindo I. (bbn)
