This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - TPK Batu Ampar didorong jadi pelabuhan berkelas internasional
7 May 2024
Jakarta, ID – PT Danareksa (Persero) that is a state-owned enterprise (SOE) holding company with one of its holding members, PT Perusahaan Pengelola Aset (PPA), is fully supporting the investment to develop Batu Ampar Container Terminal (TPK) in Batam operated by Persero Batam to be an international transhipment port.
The development of Batu Ampar TPK will modernise Batu Ampar Port from a multipurpose terminal to be a container terminal. So, it can create economic value and support Batam in becoming a main node in global trade.
To mark the transformation of Batu Ampar TPK into a transhipment port, a signing ceremony for the container yard construction at Batu Ampar TPK was held at the field in Batu Ampar TPK in Batam on Monday (6/5).
Danareksa President Director Yadi Jaya Ruchandi said that his company supported and gave strategic directions to PPA to optimise the restructuring process and revitalise Persero Batam.
“The signing ceremony for the development of Batu Ampar TPK today signifies the transformation driven by Danareksa in Persero Batam. This transformation prioritises synergy between the SOE ecosystem and the local government, enabling all parties to fulfil their roles in creating value and generating positive economic and social impacts in Batam and Indonesia as a whole,” Yadi said in his statement quoted on Monday (6/5/2024).
Meanwhile, PPA President Director Muhammad Teguh Wirhadikusumah added that PPA, having received a special power of attorney from the SOE Minister, has fully revitalised Persero Batam. This revitalisation aims to bolster its strategic role as an integrated logistics terminal operator, thereby enhancing the connectivity of regional and international supply chains.
The development of Batu Ampar TPK operated by Persero Batam is a concrete step of PPA to support sustainable infrastructure provision, increase productivity, enhance connectivity, optimise logistics costs, and provide international-standard services.
The investment plan to develop Batu Ampar TPK, covering 32 hectares of land, will modernise the port by introducing quay cranes, rubber-tyred gantries, a container yard, the reclamation and construction of the northern pier, and the operation of an international-standard container terminal.
The development of Batu Ampar TPK has been underway in stages since November 2023. It includes the installation of one ship-to-shore (STS) crane and two harbour mobile cranes (HMCs) to facilitate the stevedoring process of container ships. This initiative has significantly improved stevedoring productivity from 8 boxes per hour to 24 boxes per hour. Consequently, ship dwell time has decreased from 3-5 days to just 1 day.
“Persero Batam achieved a historic milestone by inaugurating the maiden voyage of MV SITC Hakata Voy 2407N, serving the Batam-China route with a direct call. This direct call from Batam is expected to make logistics costs more competitive, potentially reaching US$600 per TEU.,” Teguh said.
Next, through the second stage of development, the capacity of the container terminal will increase from 600 thousand TEUs per year to 1.6 million-2.1 million TEUs per year in 2028. The total investment value for the development of Batu Ampar TBK is predicted to reach around Rp3-4 trillion.
Batu Ampar Port, situated near the Malacca Strait and Singapore, is strategically positioned along one of the world's primary trade routes. In 2022, container traffic volume in the Malacca Strait reached 66 million TEUs. This makes Batu Ampar Port a potential international transshipment port, positioning Indonesia as a central player in global industrial trade and maritime shipping.
Furthermore, Batam benefits from its status as a free trade zone (FTZ) and a special economic zone (SEZ), offering significant potential for investment and economic growth. In 2023, Batam experienced an economic growth rate of 7.04%, propelled by infrastructure development that improved accessibility and business processes, including the development of the Batu Ampar Port.
Yadi revealed that developing Batu Ampar TPK with the trade traffic potential in the Malacca Strait would strongly appeal to investors interested in partnering with Persero Batam. Currently, Persero Batam has successfully secured non-binding offerings from several potential investors, which are now undergoing a thorough due diligence process.
“We hope that the development of Batu Ampar TPK will open the door for more opportunities and economic growth in Batam. Therefore, Danareksa through PPA is actively seeking cooperation opportunities with strategic partners to usher in a new era in Batam as a global trade and industry centre,” Yadi added.
