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Inland waterway link to Tanjung Priok could construction approval by mid-yearInland waterway link to Tanjung Priok could construction approval by mid-year

Indonesia continues to make progress, albeit convoluted, towards getting its logistics infrastructure into shape, with local media reporting that approvals to build a canal linking industrial areas to the main Tanjung Priok Port could be given by mid-year.

Vincent Wee, Hong Kong and South East Asia Correspondent

April 19, 2017

1 Min Read
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The reports cited Pelindo II’s operations and information system director Prasetyadi as saying the government is in the process of preparing a presidential regulation on the construction of inland waterways connecting Cikarang, Bekasi and Java Sea (CBL).

The channels will link Indonesia's busiest port, Tanjung Priok in Jakarta, with hinterland area of Bekasi, West Java, where there are major industries, through a river-canal route.

"I hope it can be [issued] soon, at least in the first semester," Prasetyadi said.

The project, included in the list of strategic national projects, is estimated to cost IDR3.4trn ($255.6m) and is expected to bring down logistics costs by 20% to 25%. It is expected to be completed by 2019.

However, the issuance of the presidential regulation is key to securing Pelindo II’s role in the project. The state-owned port operator had previously applied for permits from the Public Works and Public Housing Ministry to use the waterway while also trying to clear environmental impact assessments from the Environment and Forestry Ministry.

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About the Author

Vincent Wee

Hong Kong and South East Asia Correspondent

Vincent Wee is Seatrade's Hong Kong correspondent covering Hong Kong and South China while also making use of his Malay language skills to cover the Malaysia and Indonesia markets. He has gained a keen insight and extensive knowledge of the offshore oil and gas markets gleaned while covering major rig builders and offshore supply vessel providers.

Vincent has been a journalist for over 15 years, spending the bulk of his career with Singapore's biggest business daily the Business Times, and covering shipping and logistics since 2007. Prior to that he spent several years working for Brunei's main English language daily as well as various other trade publications.

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