Indonesian port operator Pelindo III looking to expand into energy sector

Pelindo III wants to expand beyond its core port operating and management business and hopes to increase revenue this year to IDR2trn ($150m), from its initial target of ISR1.65trn.

President director Ari Ashkara said the three main services that the company currently provides, passenger terminals, tug operations and piloting for vessels, and loading services, are limited to just the ports.

“That is why we are attempting to gain more revenues outside those services,” Ari said.

“For example, we are now offering cooperation in operating tugboats,” he said, adding that the company recently bought 15 new tugboats to increase the fleet to 90.

He said the company also had plans to try to enter the energy sector through cooperation with fellow state-owned firms, such as oil and gas firm Pertamina and electricity firm PLN, as well as considering expanding into heavy machinery or project logistics.

With all the expansion plans, the company hopes to increase turnover from its non-core business from 30% to 40% of total revenue.

Ari noted that out of the three main port services the company offers, 70% comes from loading services, 27% from tug and pilot operations, and only 3% from passenger services.