Gov't Makes Progress on Japan-Backed Patimban Port Project

Patimban Port will help ease traffic at Jakarta's Tanjung Priok Port, which currently handles more than two thirds of Indonesia's international trade. (Antara Photo/Andika Wahyu)

By : Thresa Sandra Desfika | on 10:56 AM April 20, 2017
Category : Business, Economy

Jakarta. The government has issued confirmation letters for location and environmental permits for the new Patimban Port in Subang, West Java, paving way for securing a crucial loan from Japan to fund the project.

"We have completed all the requirements for an environmental permit, the spatial plan for the project and confirmed the location. From our side, there should be nothing to hold back us from securing the loan," Tonny Budiono, the director general of sea transport at the Ministry of Transportation, said on Tuesday (18/04).

Japan International Cooperation Agency (JICA) is expected provide an $1.7 billion loan to finance the new port.

Patimban will help ease traffic at Tanjung Priok Port, which currently handles more than two thirds of Indonesia's international trade.

Tonny said the transport ministry signed the confirmation letter last Thursday, earmarking five villages with a total area of 372 hectares to be converted into the new port. The environmental permit was already issued in February, he said.

Under a 2015 presidential regulation about land acquisition for public interest, land owners in project areas cannot sell their land to any other party except the government at the market price after the government issued the confirmation letter.

The government has set aside Rp 500 billion ($38 million) to acquire the land, a process which should have been started by the Central Java land agency this week, Tonny said.

He said development will begin right after the signing of the funding agreement in June or July, slightly delayed from the previous deal-signing plan in May.

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