Batam – The government is planning to build a new port in Batam as part of efforts to streamline port operations in Indonesia, aiming for greater efficiency and reduced logistics costs. On Monday (24/1), Minister of Transportation Budi Karya Sumadi, accompanied by the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, inspected the proposed location of the new port, situated in the Tanjung Pinggir area of Batam City, in the Riau Islands Province.
Minister Luhut stated that the construction of a new port in Batam is one of the government’s initiatives to lower logistics costs in Indonesia, which are still relatively high.
“Currently, logistics costs are around 23%, while in other countries, the average is 13%. We are targeting to reduce logistics costs to 17% by 2024, if possible, even sooner,” said Minister Luhut.
Minister Luhut also mentioned plans to revamp existing ports on Batam Island. Currently, several existing ports are located on Batam Island, including Batu Ampar Port, Sekupang Port, Nongsa Pura Port, Batam Center Port, Kabil Port, and Telaga Punggur Port.
“In the future, Tanjung Pinggir Port will be developed into a green and smart port,” Minister Luhut explained.
Tanjung Pinggir Port is projected to be larger than Tanjung Priok Port and will be integrated with Kuala Tanjung Port. The current land area in Tanjung Pinggir is approximately 94 hectares and is planned to expand to 330 hectares, with a water depth of around 40 meters.
During the same visit, the Minister of Transportation explained that the proposed location for the new port in Batam is strategically positioned, directly facing the major ports in Singapore.
The Minister of Transportation stated that the construction of this new port will follow a Business-to-Business (B2B) scheme, which means it will not rely on the state budget (APBN). The government will provide opportunities for private sector investment in the development of the new port.
“As regulators, we will oversee and establish a well-structured timeline and thorough studies. We will ensure efficient governance while expediting the process. We hope that this port will be completed and operational before 2024,” said the Minister of Transportation.
Also present during this working visit were Mayor of Batam Muhammad Rudi, Chief Expert to the Chief of Staff of the President Ali Mochtar Ngabalin, Acting Director General of Sea Transportation Arief Toha, and various other relevant officials.
