Indonesian Govt to Establish Nusantara Ring Corridor to Boost Economy
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25 January 2024 19:55 WIB
TEMPO.CO, Jakarta - Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted the government’s plan to establish the Nusantara Ring Corridor project as a new national economic driver.
“We see that we will have a lot of National Strategic Projects (PSN) in the future, but the regions in the north of Java should not experience disruption,” he stated during the Daily Roundtable event in Cirebon, West Java, on Thursday.
The Nusantara Ring Corridor encompasses the northern part of Java, South Sumatra, South Sulawesi, and East Kalimantan.
Hartarto stated that the development of Patimban Port in Subang and the construction of the Patimban Toll Access are the first steps in creating the Nusantara Ring Corridor.
Currently, Patimban Port can accommodate the manufacturing sector, especially the automotive industry, in the northern part of Java. The port has a container capacity of 250,000 twenty-foot equivalent units (TEUs) and a vehicle terminal with a capacity of 218,000 completely built-up units (CBUs).
One of the objectives of the Nusantara Ring Corridor is to reduce logistical costs to below 10 percent.
“This shows an outstanding north (region’s) economy. As we can see, we have the Java Sea, which has potential, as its eastern and western sides have been connected by toll roads. Only the north part remains to be discussed,” Hartarto stated.
He also remarked that the Nusantara Capital City (IKN) may become one of the Nusantara Ring Corridor’s support cities. In addition to driving economic growth, the region is expected to equalize the economy so that it is not centered only on Java Island.
He said that the north of Java, South Kalimantan, South Sumatra, and South Sulawesi can form an economic ring corridor with marine infrastructure.
“The sea is calm and not too deep, but goods from Sumatra can be transported to Java, and goods from Kalimantan can be transported to Java,” he explained.
“It can move the economy as a whole,” Hartarto stated.
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