Japan to help build biggest port in Indonesia
The Japanese and Indonesian governments have entered the final stage of coordinating a plan for Japan to help Indonesia build a new port with yen loans (see below). The total cost to build the port, which will be the largest in the country, is estimated at about ¥200 billion.
Last year, Japan lost out to China while competing for an order to build a high-speed railway in Indonesia. The Japanese government aims to recover the loss by helping with the development of the new port.
The two governments plan to start operations of the new port in 2019 in Patimban, which is about 150 kilometers east of Jakarta.
Patimban is also about 70 kilometers from industrial complexes where factories of Japanese automakers, electronics manufacturers and other firms are located over a wide area east of the Indonesian capital.
The two governments reached a basic agreement on the plan in February, when Indonesia’s transportation minister visited Japan.
Currently, Indonesia’s largest port is Tanjung Priok Port in Jakarta, which handles 6.5 million cargo containers annually. But it has been unable to keep up with the increase in cargo that has accompanied the country’s economic growth. Traffic congestion is chronic on the roads around the port, and the situation has caused problems with the transportation of products and parts.
The new port in Patimban is expected to be capable of handling 7 million to 8 million cargo containers a year. It will also have large piers to accommodate vessels that carry automobiles and cargo container terminals.
Construction of the new port will be conducted by a Japanese company or a business consortium led by a Japanese company. The project will be the largest-ever overseas port development by Japan. After construction is completed, the port will be managed by a venture to be jointly established by Japan and Indonesia.
big project..big dollars..
“Last year, Japan lost out to China while competing for an order to build a high-speed railway in Indonesia. The Japanese government aims to recover the loss by helping with the development of the new port.”