Kadin Names Indonesia’s Top 5 Priority Infrastructure Projects
The Indonesian Chamber of Commerce and Industry (Kadin) says there are at least five infrastructure projects that need prioritization and at least Rp 25 trillion ($2.65 billion) in investment.
Natsyir Mansyur, Kadin deputy chairman for trade, distribution and logistics, told Investor Daily that the five infrastructure projects should be a priority for the 2012-25 period.
“We hope that the Rp 25 trillion in investment funds for logistics support facilities will come from pure private sector commitments,” Natsyir said in Jakarta on Wednesday.
Anwar Satta, the deputy chairman of Kadin’s permanent committee for intermode logistics, listed the five projects as the fuel terminal in Tanjung Priok (North Jakarta); the toll road access to Tanjung Priok harbor; commodity silos in Belawan (Medan), Tanjung Priok, Tanjung Emas (Semarang), Tanjung Perak (Surabaya) and Makassar; dry port in Sanggau-Entikong and cross border port in Badau (West Kalimantan); and the construction and expansion of the national and international fishery logistics port.
“The construction of the fuel terminal can be started in Tanjung Priok and later built in other regions as well. The construction’s cost is projected at Rp 5 trillion,” Anwar said.
He said the toll road access would support the Kalibaru terminal expansion as an international logistics port and will be worth Rp 15 trillion. The silos, to store commodities such as corn, rice and soy beans, will be build at a cost of Rp 1 trillion. The dry port and cross border port in West Kalimantan will cost Rp 4 trillion.
For the international and national fishery logistics port, costs are still being determined.
“At present, that project is entering the estimation of the investment needed as well as the determination of its location by the Fisheries and Maritime Affairs Ministry,” Anwar said.
Natsyir said Kadin was asking the Transportation Ministry to prioritize the Kalibaru terminal expansion project because Tanjung Priok harbor in North Jakarta was already overloaded. It is estimated that construction of a new terminal to be known as New Priok will almost double Tanjung Priok’s handling capacity.
Natsyir said 65 percent of activities at Tanjung Priok were related to exports and therefore an expansion was urgently needed ahead of the integrated economic community of the Association of Southeast Asian Nations.
“The business world really hopes that the expansion of the Tanjung Priok harbor can be realized soon so that the logistic costs can be reduced from 17 percent now to 10 percent of production costs when we enter the Asean economic community in 2015,” he said.