The Indonesia Investment Authority (INA) has signed a strategic alliance agreement with DP World to strengthen the Indonesian maritime and port sector within the global manufacturing ecosystem.
The economic value of this partnership could reach up to $ 7.5 billion in the long term.
This partnership will improve the functioning of ports, reduce logistics costs and advance national competitiveness.
As a global leader in data-driven logistics expertise and global infrastructure, Dubai-based DP World will bring world-class technology and best practices to develop new terminals and port assets, enabling more high shipping efficiency and improving inter-island and international connectivity.
DP World and INA will form a consortium and task team to explore investments in logistics infrastructure in Indonesia, including investments in hinterland, inland terminals, cargo fleets, network systems food, land transport and industrial areas. They will also explore collaboration with Indonesian port companies (Pelindo). DP World will seek to leverage its joint investment platform with the Caisse de dépôt et placement du Québec (CDPQ) which, since its launch in 2016, has invested in 12 port terminals around the world at various stages of the lifecycle of active.
INA CEO Ridha Wirakusumah said this strategic partnership with DP World aligns with INA’s mission to optimize investments in Indonesia’s infrastructure and resources to ensure long-term economic development . INA’s investment is focused on several key sectors, such as airports, ports, toll roads, industrial zones, digital infrastructure, health services and renewable energy.
Indonesia is the largest archipelago in the world with over 17,000 islands. Its vast geography makes it dependent on a strong national maritime network. Despite a historically lower containerization rate than neighboring countries and currently facing problems with high logistics costs, Indonesia is already among the top 15 countries in terms of container traffic and has great growth potential. In addition, the containerization rate in Indonesia will only increase given the boom in domestic consumption and production.
“Indonesia’s maritime and port sector is essential to support trade and consumption in the archipelago, and this collaboration with DP World will allow us to solve the problems of high logistics costs and port inefficiencies. Following INA’s rigorous partner selection process, we are confident that DP World can work well with us to create a strong national transportation network and add value to investors, businesses and employees. We would like to express our gratitude to the Ministry of Public Enterprise, Ministry of Finance, Ministry of Transport, other government agencies and Pelindo for their strong support, ”said Mr. Wirakusumah.
DP World Group Chairman and CEO, HE Sultan Ahmed Bin Sulayem, said: “DP World recognizes the vast potential of Indonesia as one of the fastest growing economies in the world, as well as the projects undertaken. by the government to improve port facilities. Through our partnership with INA, we are committed to supporting national initiatives that create value and provide expertise to modernize Indonesia’s maritime infrastructure.
Glen Hilton, CEO of DP World and Managing Director Asia-Pacific and Australasia, said: “With INA, we will focus on building mutually beneficial relationships with local governments and stakeholders to create value in the community. Indonesian supply chain. By combining our experience and disruptive technology with INA’s mandate to maximize economic impact, we are optimistic about our ability to improve the performance of Indonesia’s supply chain.
DP World will also present its global best practices to Indonesia, including operations optimization, service innovation, disruptive technologies and security principles. State-of-the-art logistics technology includes fully automated stacking to eliminate inefficiency, hyperloop systems for fast delivery of goods and sustainable 100% electric transportation.