Asia/Pacific News
Three New Ports Planned for Indonesia
State-owned port operator PT Pelabuhan Indonesia II (Pelindo II) has plans to build three new ports in the country funded by issuing US $1 billion worth of bonds, Jakarta press reports.
The ports are currently planned for Tanjung Api-Api, Sorong and West Kalimantan, according to Pelindo II president director Richard Joost Lino.
"We will issue the bonds in April next year to reap $1 billion in funds for financing the new ports' construction, which will kick off in the third quarter next year," he said.
The ports are slated to finish construction in two and a half years from the start date, with both the West Kalimantan and Sorong ports to cost between Rp 2-3 trillion ($248.4 million).
The remaining lion's share of the fund will go towards the Tanjung Api-Api port.
Lino has also previously mentioned a larger, more ambitious plan to construct or develop 22 seaports in five years, with plans to spend between $5-6 billion.
At the time, he said that the project would be financed though external loans, bonds or partnerships.
He also said that the development of the 22 ports was significant, with the potential to increase the country's economic growth rate by around 0.31 percent to 0.78 percent.
It was reported earlier this year that the country is also currently exploring the possibilities of liquefied natural gas (LNG) bunkering for its state-owned operations.
