The new system, to be built in Dumai, Riau, will help Indonesia improve its efforts in guiding ships through the busy straits.
Indonesia's first VTS in Batam, also in Riau province, was completed in June last year, after construction began in October 2010.
The VTS is an integrated navigation and communication system to guide vessels crossing the Straits of Singapore and Malacca. Indonesia officially started operation of the service, run by state-owned port operator Pelindo I, in April this year.
“This device will help Indonesia provide better service in the straits,” Indonesian Transportation Minister Budi Karya Sumadi said.
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