PT Pelabuhan Indonesia inks $500m port development project
Indonesian shipping company PT Pelabuhan Indonesia (Pelindo) I has inked a joint commitment with private firms and local governments on a port development program estimated to be worth US$500 million in total investment, the Jakarta Post reported.
Those involved in signing the commitment agreement include state oil company PT Pertamina, shipping company Maersk Line, Regional Container Line (RCL), Langkat Regency of North Sumatera, Sabang Regency and the North Aceh Regency of Aceh and the Dumai Regency of Riau.
The program mainly involve expansion of existing ports in Aceh, Batam, North Sumatra and Riau with financing both from company internal cash and from Indonesia's development partners including the Islamic Development Bank (IDB) and the Japan Bank for International Cooperation (JBIC).
Bambang Eka Cahyana, a director of commercial and business development at Pelindo I, said the company had so far secured a loan worth $87 million from IDB and expected to secure another from JBIC. "The $500 million in funds will be used to finance projects in the next five years," he said.
The program, Bambang said, aims to improve services given in ports through work space expansion and procurement of new infrastructure.
"For Belawan and Batam, we plan to expand the ports so that they will be able to handle more containers. It is estimated these projects will spend $83 million and $100 million respectively," he said.
Those involved in signing the commitment agreement include state oil company PT Pertamina, shipping company Maersk Line, Regional Container Line (RCL), Langkat Regency of North Sumatera, Sabang Regency and the North Aceh Regency of Aceh and the Dumai Regency of Riau.
The program mainly involve expansion of existing ports in Aceh, Batam, North Sumatra and Riau with financing both from company internal cash and from Indonesia's development partners including the Islamic Development Bank (IDB) and the Japan Bank for International Cooperation (JBIC).
Bambang Eka Cahyana, a director of commercial and business development at Pelindo I, said the company had so far secured a loan worth $87 million from IDB and expected to secure another from JBIC. "The $500 million in funds will be used to finance projects in the next five years," he said.
The program, Bambang said, aims to improve services given in ports through work space expansion and procurement of new infrastructure.
"For Belawan and Batam, we plan to expand the ports so that they will be able to handle more containers. It is estimated these projects will spend $83 million and $100 million respectively," he said.