Pelindo I Assigned to Build and Operate Kuala Tanjung Port
Date 12 Oktober 2018
Considering that Kuala Tanjung port and industrial zone in North Sumatra is part of National Strategic Projects, the Indonesian Government considers it necessary to assign a state-owned enterprise to accelerate the construction and the operation of the port.
Based on this consideration, President Joko Jokowi Widodo on 17 September, 2018 signed Presidential Regulation Number 81 of 2018 on Acceleration of the Construction and the Operation of Kuala Tanjung Port and Kuala Tanjung Industrial Zone in North Sumatra Province.
“Acceleration of the construction and the operation of Kuala Tanjung port and industrial zone in Batubara, North Sumatra, is carried out to improve connectivity, maritime infrastructure, logistics center, industrial development and regional development in North Sumatra,” Article 1 paragraph (1) of the Regulation reads.
The aforementioned Kuala Tanjung Industrial Port and Industrial Zone consist of: 1. Kuala Tanjung International Hub Port; and 2. Kuala Tanjung Industrial Zone.
“The Kuala Tanjung International Hub Port is an international port that serves container loading and unloading activities, general cargo, liquid bulk and dry bulk and is supported by Kuala Tanjung Industrial Zone,” Article 1 paragraph (4) of the Regulation reads.
The Government, according to the Presidential Regulation, assigns a state-owned enterprise PT Pelabuhan Indonesia (Pelindo) I to: 1. Build and operate the Kuala Tanjung International Hub Port; and 2. Build, develop and manage the Kuala Tanjung Industrial Zone.
The assignment to build and operate the Kuala Tanjung International Hub Port includes funding, technical planning, land acquisition, construction, operation, management and maintenance, the Presidential Regulation stipulates.
The Regulation further stipulates that another state-owned enterprise PT Indonesia Asahan Aluminum (Inalum) shall support PT Pelindo I to build, develop, and operate Kuala Tanjung Industrial Zone.
The aforementioned assignment is carried out through the establishment of a joint venture between PT Pelindo I and PT Inalum,” Article 5 paragraph (2) of the Regulation reads
The funding for the construction and the operation of the Kuala Tanjung International Hub Port and for construction, development and management of the Kuala Tanjug Industrial Zone, according to the Presidential Regulation, can be provided by: a. corporate capital; b. loans from financial institutions, including multilateral financial institutions; c. loans and/or other forms of Government investment agencies; and / or d. other funding.
The Presidential Regulation stipulates that PT Pelindo I shall gradually carry out the construction of Kuala Tanjung International Hub Port and shall operate some parts of the Port in 2018.
As for the Kuala Tanjung Industrial Zone, PT Pelindo I, PT Inalum, and the joint venture company shall gradually carry out construction, development, management and operation of some parts of Kuala Tanjung Industrial Zone in 2018.
According to the Presidential Regulation, Coordinating Minister for the Economy, as Chairman of the Committee of Priority Infrastructure Development Acceleration, shall coordinate the construction and operation of the Kuala Tanjung International Hub Port and the Kuala Tanjung Industrial Zone, and shall report to the President at least once in 6 months or anytime if needed.
The Presidential Regulation was promulgated by Minister of Law and Human Rights Yasonna H. Laoly on 18 September, 2018 and shall come into force on the date of promulgation.