Indonesia and DP World Funds Malacca Straits’ Port Expansion

September 2022

The Indonesian state-owned port operator, Pelabuhan Indonesia (Pelindo), as well as a partnership comprised of the country’s sovereign wealth fund and logistics business, DP World, have committed to investing in the enlargement of the Belawan port in Sumatra island.

According to a joint statement published by Pelindo and the Indonesia Investment Authority (INA), the agreement, where the exact amount was not disclosed, is part of a USD 7.5 billion cooperation between INA and Dubai-based DP World.

Pelindo and the consortium will oversee the Belawan New Container Terminal (BNCT) under the deal, with the goal of transforming the port by expanding terminal capacity, direct calls, and connection with other smaller ports.

Located on Sumatra’s northeastern coast, the Belawan port is currently a feeder for other important ports in the area, notably Singapore and Malaysia. The port receives part of Indonesia’s palm oil and other agricultural goods.

The agreement includes plans of investment to more than double BNCT’s capacity to 1.4 million twenty-foot equivalent units (TEUs) during the following six years, strengthening Belawan’s position in the Malacca Straits.

(Source: Reuters)

Our Services

Orissa International provides consulting services to companies that want to develop a market entry strategy for Southeast Asia or implement their business expansion into the region. We have very strong domain knowledge of markets and industry sectors, and a business network of over 16,000 distributors, resellers, and system integrators, built through advising and guiding more than 5,000 companies with their market expansion into Singapore, Malaysia, Indonesia, Thailand, Vietnam and the Philippines over the last 25 years.