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Indonesia sets up domestic cargo handling JV

Indonesia sets up domestic cargo handling JV
Jakarta: Indonesia looks like it is making some inroads into solving its logistics issues, with four state-owned port operators reportedly signing a joint venture agreement to revitalize the domestic cargo handling business.

Pelindo I, II, III and IV, will each hold a 25% stake in the Terminal Petikemas Indonesia joint venture. which is expected to help cut the price differential between the eastern and western parts of the sprawling archipelago.

The venture will provide container-handling services and other related services and link up with the government’s Nusantara Pendulum programme, which is expected to create a single sea corridor for goods movement within Indonesia with a 3,000-teu ship, owned and operated by the government, trading regularly between the six main seaports of Belawan, Batam, Tanjung Priok, Tanjung Perak, Makassar and Sorong to reduce logistics costs.

The government has allocated IDR1.5trn ($155m) for the first phase and expects the programme to be implemented next year.

Arif Suhartono, formerly director for marketing and business development at Multi Terminal Indonesia, a subsidiary of Pelindo II, has been appointed as the president director of the new joint venture. The president director of Pelindo III, Djarwo Surjanto, is the venture’s president commissioner.