Indonesia and Dubai to Collaborate for the Development of the Belawan Seaport

July 2023

The Indonesia Investment Authority (INA), in partnership with Dubai Port World (DP World) from the United Arab Emirates (UAE), established a consortium named INA-DPWorld Investment Ltd (INA DPWorld). Together with Prima Terminal Petikemas Ltd (PTP), a subsidiary of Pelabuhan Indonesia Ltd (Pelindo), they have collaborated on the development of Indonesia’s Belawan seaport, specifically focusing on the Belawan New Container Terminal.

This seaport infrastructure development cooperation is an implementation of the master agreement signed by PTP and INA-DPWorld in August 2022 to manage the Belawan New Container Terminal, and is part of the implementation of the strategic alliance agreement between INA and DP World in November 2021, where the value of cooperation in the development of sea ports in Indonesia was estimated to reach a total of USD 7.5 billion during the cooperation period/concession period.

Belawan New Container Terminal is located in the city of Medan, North Sumatra Province. It is situated in the Malacca Strait and is in a very strategic position as one of the busiest and most important international shipping routes connecting Asia with the Middle East, Europe and Africa. The location of this terminal is well connected to the industrial area around the port, so that Belawan New Container Terminal can become a significant logistics and maritime traffic hub for Indonesia.

This terminal will play an increasingly significant role in driving economic growth in Indonesia, particularly in the developing northern Sumatra region, as well as strengthening Indonesia’s position as a key player in the global logistics industry. Belawan New Container Terminal is also expected to become a logistics gateway in northern Sumatra so that it can advance national competitiveness by lowering logistics costs, increasing port operating efficiency and strengthening the competitiveness of superior Sumatran products.

(Source: Ministry of Foreign Affairs of the Republic of Indonesia)

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