The Indonesia Investment Authority (INA) and DP World have signed a strategic alliance agreement of a total estimated value of US$7.5 billion to enhance the Asian country’s maritime and port sector within the global manufacturing ecosystem.
The Dubai-based port operator will bring the technology needed and introduce its practices to develop new port terminals and assets, including operations optimisation, service innovation, disruptive technologies and safety principles.
In addition, DP World has announced it will provide its Indonesian partner with logistics technology, including fully automated stacking for increased efficiency, hyperloop systems for fast cargo delivery, and 100% electric sustainable means of cargo transport.
The partnership is expected to improve ports operations, reduce logistics costs and advance Indonesia’s national competitiveness while enhancing shipping efficiency and inter-island and international connectivity.
“DP World recognises the vast potential of Indonesia as one of the fastest-growing economies in the world, as well as projects undertaken by the government to improve port facilities,” stated DP World Group Chairman and CEO, Sultan Ahmed Bin Sulayem.
He also pointed out through the partnership, DP World is committed to supporting national initiatives that create value and bring in expertise to modernise the Indonesian maritime infrastructure.
The two allies will also explore collaboration with the Indonesia Port Corporations (Pelindo) and will form a consortium to examine investments into the logistics infrastructure of Indonesia, such as hinterland investments, inland terminals, cargo parks, feeder network systems, landside transport and industrial zones, according to a statement.
INA’s mission is to optimise investment in Indonesia’s infrastructure and resources to deliver long-term economic development and “the partnership with DP World aligns with this mission,” said INA’s Chief Executive Officer, Ridha Wirakusumah.
Furthermore, the CEO and Managing Director of DP World for Asia Pacific and Australasia, Glen Hilton commented, “Together with INA, we will focus on building mutually beneficial relationships with local governments and stakeholders to create value across Indonesia’s supply chain, and by combining our experience and disruptive technology, we are optimistic that we can elevate Indonesia’s supply chain performance.”
