DP World announced it has signed a strategic alliance agreement with the Indonesia Investment Authority (INA) to enhance Indonesia’s maritime and port sector within the global manufacturing ecosystem. The company estimated that the economic value of this partnership could reach up to $7.5 bn over the long term.
DP World and the INA will form a consortium and working team to explore investments into the logistics infrastructure in Indonesia, including hinterland investments, inland terminals, cargo parks, feeder network systems, landside transport, and industrial zones. The team will also explore the possibility of collaboration with the Indonesia Port Corporations.
DP World reported that the partnership hopes to improve the operation of ports, reduce logistics costs, and advance national competitiveness. By leveraging its technology and practices, the company will look to develop new port terminals and assets, enabling greater shipping efficiency and enhancing inter-island and international connectivity.
The INA reported that the strategic partnership aligns with INA’s mission to optimise investment in Indonesia’s infrastructure and resources to deliver long-term economic development. INA’s investment focuses on several key sectors, such as airports, ports, toll roads, industrial estates, digital infrastructure, healthcare services, and renewable energy.
Indonesia’s vast geography makes it reliant on a strong domestic shipping network. Indonesia is already among the top 15 countries in terms of container traffic, and the company believe it has much potential to grow further. INA’s Chief Executive Officer Ridha Wirakusumah commented: “Indonesia’s maritime and port sector is key to support trade and consumption across the archipelago, and this collaboration with DP World will enable us to resolve issues of high logistics costs and port inefficiencies”.
Source: DP World
