DP Dubai and Maspion collaboration will lower national logistics costs
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 - Kolaborasi DP Dubai dan Maspion akan tekan biaya logistik nasional
7 October 2023
By: Amrozi Amenan
Surabaya - Business players believe that the cooperation between DP World and Maspion to construct an international container port and a logistics industrial estate in Gresik will lower national logistics costs.
“The cooperation between DP World and Maspion to build an international container terminal and an industrial estate will smooth out trade flow and suppress logistics costs,” East Java Chamber of Commerce and Industry (Kadin) Institution and Industrial Estate Relationship Division Deputy Chairperson Fitra Djadja said to Investor Daily on Friday (6/10/2023).
Fitra explained that the terminal that will be constructed would positively impact industries in East Java in terms of off-island and overseas trade as it will facilitate cargo distribution.
“It will surely facilitate business players who need to distribute their cargo. Moreover, with the capacity and the cooperation with Dubai, we have the option to ship cargo overseas without going through Singapore,” he stated.
In the future, the terminal is expected to be sustained by large-capacity ships so that shipping costs will be more efficient.
“With ships that can berth at the port, mobilisation can be carried out to various countries,” he said.
For example, he mentioned that, if a business player wanted to ship their cargo to the Philippines, the cargo usually must first go through China or Singapore. Hence, travel time will be longer.
“There are actually three shipping routes. First, direct shipping the destination country. Second, the cargo can go through a larger terminal first. Third, the cargo can be carried wherever the ship goes,” he added.
East Java Indonesian Exporters Association (GPEI) Fisheries Industry Affairs Deputy Chairperson Ari Indarwanto said that rapid and balanced industrial growth in several areas made East Java a gate for international trade that requires cooperation with global players, such as DP World. The cooperation is expected to address the logistical issues of port players in East Java. One of the issues is container supply that often ran out due to the imbalance of outgoing and ingoing traffic, which is expected to be addressed by the cooperation.
“It will also smooth out export trade flow and lower national logistics costs,” PT Kelola Mina Laut Gresik Logistics Manager said.
Very supportive
Meanwhile, Transportation Minister Budi Karya Sumadi is very supportive of the collaboration between the global private company DP World and the national private company Maspion Group to commence the construction of the container terminal that has a capacity of 3 million TEUs in East Java. The construction of the terminal started with the signing of the concession agreement and the launching of the DP World-Maspion East Java Container Terminal project earlier this week.
“Indonesia is currently the destination country of global investors, especially the ones in the infrastructure sector. The partnership is expected to accelerate national economic growth,” the Transportation Minister said.
The Transportation Minister mentioned that the container terminal in East Java would be a world-class terminal that will strategically function as an important trade route that bridges Indonesian companies to regional and global markets.
During the occasion, DP World Group Chairperson and CEO Sultan Ahmed Bin Sulayem explained that the partnership was expected to be an investment that can establish a wider trade connectivity and expand the global logistics port network of DP World.
He said that Indonesia was rapidly developing as one of the most important economies in the world.
The project will create a modern and efficient infrastructure as well as an industrial estate that provides quality logistics. The business model and the vision of DP World are in line with the vision of President Jokowi to boost economic growth through trade infrastructure development, more investment opportunities, and job creation.
“We are offering a solution to all of our customers to improve the resilience of the supply chain,” Sultan Ahmed Bin Sulayem said.
Meanwhile, Maspion Group Chairperson and CEO Alim Markus said that the partnership with DP World was the embodiment of Maspion Group’s commitment to contribute to sustainable economic development by taking advantage of investment opportunities that can improve the country’s fiscal growth.
“It is strong proof of how both companies, with support from the government, are developing infrastructure in East Java. It is in line with the vision of President Joko Widodo to realise Golden Indonesia 2045. We are optimistic about the prospect and the long-term economic impact,” he stated.
In the concession agreement, the government is providing a right to PT Pelabuhan Indonesia Maspion to carry out business activities at the container terminal in Gresik. The total value of the asset is Rp109.51 trillion with a concession period of 71 years and a concession fee of 3.00%.
Alim added that Maspion Group was committed to supporting sustainable economic development in Indonesia to realise the master plan of President Jokowi to make Indonesia the fifth largest economy in the world.
“Surabaya is an important gate in Indonesia, and the container port will also improve economic development and investment opportunities in Indonesia,” he explained.
