The Maersk Group has signed a Letter of Intent (LOI) with the coordinating ministries for Maritime Affairs and Economic Affairs, to enter an alliance on the maritime and economic development of Bitung in Eastern Indonesia.
Maersk announced the aim of the LOI is to accelerate trade and economic development in Eastern Indonesia with Bitung identified as a special economic development zone and a strategic national transportation hub
Focus is expected to be placed on driving increased connections for Eastern Indonesia to more developed parts of Indonesia, regional, and global export markets such as Europe and USA.
Jakob Friis Sorensen, President Director of Maersk Line in Indonesia said, “We want to support the development of Eastern Indonesia by understanding the challenges and opportunities for the supply chains of key commodities such as tuna, coconut and their downstream products, as well as the potential of aquaculture development and the need to improve vocational skills in this area. We see the added value this will bring and expect this will enhance the economic activity and trade of the country.”
The scope of collaboration is expected to include areas such as understanding the key drivers in the two industries; the processes around customs clearance, cargo release and other border procedures; the flow of goods through the port; the regulatory environment; and the shipping liner connectivity of Bitung in a regional and international perspective.
“We have been operating in Indonesia for more than 50 years, and we see the potential for increased exports out of the Eastern Indonesia. We are excited to partner with the Indonesia government to enable trade and develop for example, the fishing industry, which will create jobs and economic development to the local communities. If successful, our aim is to make Bitung a model for replicating good practice in other parts of Indonesia to bring about increased trade for the country,” concluded Jakob Friis Sorensen.
Maersk Line began offering a direct service linking the Bitung port to the transshipment hub Port of Tanjung Pelepas in Johor in April 2014.
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