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Indonesia requires $47 bn for port development

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The investment requirement to develop ports from Sumatra to Papua is based on the master plan for national ports

Indonesia requires $47 billion in investment to develop ports across the country. According to the Transportation Ministry, development of ports in Sumatra will require an investment of $12.9 billion, Java $15.3 billion, Bali and Nusa Tenggara $2.4 billion, Kalimantan $4.6 billion, Sulawesi $3.9 billion and Papua $7.9 billion. The investment requirement to develop ports from Sumatra to Papua is based on the master plan for national ports (RIIPN). 

It is reported that nearly 32 percent of the investment will be taken from the government budget and the remaining 68 percent from government bodies. “Based on the master plan for national ports (RIIPN), we need$47 billion to develop ports from Sumatra to Papua,” director of port affairs Subagiyo said. “Due to the limited state budget funds, we have been ordered to tap as much investment as possible from third parties through several cooperation schemes.” 

The development of ports in Indonesia had faced several challenges owing to high dependence on sea transportation, low access to highly remote areas, difference in geographical characteristics between areas and imbalance in growth centres. In the future, the government is expected to promote private investment for development of ports. This even includes regional government’s investments through port corporate bodies, media reports said. 

The total investments for development of ports in Indonesia is anticipated to reach $22.5 billion. The investment will comprise $6.3 billion which is 28 percent from the government and $16.2 billion which is 72 percent from the private sector.

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