The route will be launched by Indonesian President Joko Widodo and Philippine President Rodrigo Duterte during the 2017 Asean Summit in Davao City.
The key project within the initiative is expected to boost trade between Indonesia and the Philippines in the long run and improve connectivity among Southeast Asian countries by reducing shipping time by more than half.
“It is going to be easier to access the Philippine market through the Bitung Port (in North Sulawesi), especially for products and commodities from Indonesia’s eastern regions,” Indonesian Chamber of Commerce and Industry (Kadin) chairman Rosan Roeslani said.
Meanwhile products from the huge southern Philippines market of Mindanao can also be easily shipped to Indonesia at lower cost through the new Ro-Ro route.
At present, it takes three to five weeks to ship goods from Bitung to Davao, while the new route will cut shipment time to around 36 hours, excluding port stay.
Among products that can be exported to the Philippines from Indonesia’s eastern regions are charcoal, coffee beans, matured coconut and cement.
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