DP World and Indonesia's leading conglomerate Maspion Group have inked two separate preliminary agreements to develop a US$1.2 billion container port with an annual handling capacity of three million TEU and a 360-hectare industrial and logistics park in east Java.
It is the first joint venture of its kind in the Indonesian transportation sector involving a private sector partnership between a foreign direct investment partner and a private sector Indonesian company in Maspion, within the context of cooperation with the state-owned maritime services operator Pelindo III, reported Gulf Today.
The partnership paves the way for the creation of a modern, integrated container terminal and industrial logistics park. It includes cooperation in setting up Maspion International Container Port in Gresik, east Java, which will use electricity to power its operations to help reduce carbon emissions.
The project is expected to break ground later this year and commercial operations are being planned for the first half of 2022. The vision is to support east Java's infrastructure as part of President Joko Widodo's programme to accelerate economic growth.
DP World Group CEO Sultan Ahmed Bin Sulayem said: "This partnership will be a major addition to our global portfolio and a new step in our ongoing expansion. It will also enhance our continuing commitment to Indonesia, one of the most important world economies."
Maspion Group CEO Dr Alim Markus said: "This collaboration is a major development for the two groups, and a new step in Maspion Group's ongoing expansion."
In a separate development, the Abu Dhabi National Oil Company (Adnoc) has signed a comprehensive strategic framework (CSF) with Indonesia's energy company, PT Pertamina, Persero, to explore opportunities for collaboration across the oil and gas value chain in the United Arab Emirates, Indonesia and globally.
As part of the CSF, Adnoc and Pertamina will evaluate collaboration opportunities across the upstream, midstream and downstream sectors, as Indonesia has a thriving industrial base and is a rapidly growing market for energy.
Pertamina CEO Nicke Widyawati said: "Pertamina plans to develop an additional one million bpd [barrels per day] of refining capacity through the Refinery Development Master Plan (RDMP) and Grass Root Refineries (GRR) projects. Therefore, partnership with ADNOC will be an important milestone for Pertamina to secure energy supplies from overseas."