Indonesia and Dubai Collaborate on Belawan Seaport Development

The Indonesian Investment Authority (INA) achieved a milestone by participating in the construction and development of infrastructure projects in Indonesia, especially seaports.

INA, together with Dubai Port World (DP World) of the United Arab Emirates (UAE), formed the consortium INA-DPWorld Investment Ltd (INA DPWorld), and collaborated with Prima Terminal Petikemas Ltd (PTP), a subsidiary of Pelabuhan Indonesia Ltd. (Pelindo), in the development of the Belawan seaport, especially the new Belawan container terminal. The parties have signed the Shareholders Agreement relating to the Association in the New Belawan Container Terminal.

Husin Bagis, Ambassador of the Republic of Indonesia to the UAE, stated: “The Indonesian Embassy in Abu Dhabi will continuously and tirelessly facilitate various cooperation and investment opportunities between Indonesia and the UAE. The collaboration on the New Belawan Container Terminal project is a concrete example of how all parties have worked hard to bring Indonesian infrastructure projects to the international scene and to be demanded by major global investors. We hope that this terminal can bring great benefits to the efficiency of domestic logistics costs, so as to increase the competitiveness of Indonesian products abroad and Indonesia to become an important hub on international shipping routes.”

Belawan Seaport

This cooperation agreement for the development of maritime port infrastructures is an implementation of the framework agreement signed by PTP and INA-DPWorld in August 2022 to manage the New Belawan Container Terminal, and is part of the implementation of the strategic alliance agreement between INA and DP World in November 2021, where the value of cooperation in developing seaports in Indonesia was estimated to total US$7.5 billion during the cooperation/grant period.

Belawan New Container Terminal is located in the city of Medan, North Sumatra province. It is located in the Strait of Malacca and occupies a very strategic position as it is one of the busiest and most important international shipping routes connecting Asia with the Middle East, Europe and Africa. The location of this terminal is well connected to the industrial zone surrounding the port, so the New Belawan Container Terminal can become an important logistics and shipping hub for Indonesia.

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This terminal will play an increasingly important role in driving Indonesia’s economic growth, especially in the developing region of North Sumatra, as well as reinforcing Indonesia’s position as a key player in the global logistics industry. The new Belawan Container Terminal is also expected to become a logistics gateway in North Sumatra so that it can boost national competitiveness by reducing logistics costs, increasing port operational efficiency and strengthening the competitiveness of superior Sumatran products.

INA’s cooperation with DP World and Pelindo has further strengthened the bilateral relations that have been consolidated between Indonesia and the UAE in various fields.

The Minister of Public Enterprises of Indonesia, Erick Thohir, has participated today as a witness in the signing of the shareholders’ agreement. The signing was carried out by the main director of Pelindo, Arif Suhartono, the president of the Group and CEO of DP World, Sultan Ahmed Bin Sulayem, and Ridha Wirakusumah, president of the Board of Directors of INA.

“We hope that this terminal can bring great benefits to the efficiency of domestic logistics costs, so as to increase the competitiveness of Indonesian products abroad”

Pelindo is a state-owned company, the largest port operator in Indonesia. Pelindo has a vision to become a world-class, integrated maritime ecosystem leader, and a mission to realize a national maritime ecosystem network through increased network connectivity and service integration to support the economic growth of Indonesia.

DP World is a world leader in global supply chain solutions, with extensive experience in investing and operating ports in various parts of the world, and has succeeded in turning Dubai Seaport into an international logistics hub and making the city Dubai a major world trading city.