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UAE's DP World sets sights on Indonesian seaports
From developing port terminals to industrial zones, an investment partnership by the UAE-based logistics company and the Indonesia Investment Authority (INA) could rise to $7.5 billion.
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Handle with care: Loading and unloading activities are carried out at a container terminal operated by PT Pelindo IV in Makassar, South Sulawesi, on Sept. 20, 2021. (Antara/Arnas Padda)
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ubai-based logistics firm DP World and the Indonesia Investment Authority (INA) have signed a deal to explore investment in port infrastructure in Indonesia.
DP World and INA wrote in a statement on Sunday that they would form a consortium and working team to explore developing port terminals, cargo parks, feeder network systems, landside transportation and industrial zones, among other related infrastructure.
The economic value of this partnership could reach up to US$7.5 billion over the long term, reads the statement.
“Indonesia’s maritime and port sector is key to support trade and consumption across the archipelago, and this collaboration with DP World will enable us to resolve issues of high logistics costs and port inefficiencies,” said INA chief executive (CEO) Ridha Wirakusumah.
Indonesia’s logistics sector struggles with high operating costs due to limited infrastructure, red tape, complicated regulations and the country’s archipelagic geography of over 17,000 islands.
The country ranks 46th of 160 countries surveyed for the World Bank’s 2018 Logistic Performance Index, lower than Southeast Asian peers Thailand (in 32nd place), Vietnam (39th) and Malaysia (41st).
“Through our partnership with INA, we are committed to supporting national initiatives that create value and bring in expertise to modernize the Indonesian maritime infrastructure,” said DP World Group chairman and CEO H. E. Sultan Ahmed Bin Sulayem.
