Ports in Indonesia; Patimban Seaport Soon Ready to Become Indonesia’s Automotive Export Hub
In November 2020 the Patimban seaport is expected to open in Subang (West Java). Although it is only the soft launch of the project’s first phase, it is no small matter as this port is set to be developed into Indonesia’s biggest port by 2027.
Moreover, the Patimban seaport is designed to become the main hub for Indonesia’s automotive exports. Considering Indonesia holds high ambitions for its automotive industry (aiming to become ASEAN’s leader, taking over the top spot from Thailand), including for the electric vehicle industry, this port will need to play a key role.
The location of the Patimban seaport is therefore a strategic one. The port is located about 70 kilometers away from the Karawang industrial estate in West Java, where many of the nation’s car manufacturing facilities are located (in particular Japanese carmakers). More importantly, unlike access roads to Indonesia’s (currently still) largest seaport Tanjung Priok (located in North Jakarta) roads between Karawang and Patimban are unlikely to be clogged with traffic once Patimban operates fully (as residential traffic and non-export/import businesses are very limited around the new seaport). Hence, logistics costs should ease, particularly once the toll road to Patimban is completed.
The Patimban Seaport is one of the central government’s national strategic projects (declared via Presidential Decree No. 47/2016). This status means that the project is regarded a priority project that benefits the Indonesian economy and society as a whole. It also means that all ministers, government agencies, and governors need to support the development of the project.
Initially, the government wanted to develop a brand new, grand port at a different location: Cilamaya, also in West Java. However, the plan was cancelled as the location was too close near an oil and gas block operated by Pertamina Hulu Energi Offshore North West Java (which is a unit of state-owned energy firm Pertamina). Authorities then decided to find another location. The choice fell on Subang, a location some 100 kilometers from Indonesia's capital city of Jakarta.
Read the full article in our September 2020 report. You can order the report by sending an email to info@indonesia-investments.com or message to +62(0)8.788.410.6944 (incl. WhatsApp).
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