Govt Expects Development of Kuala Tanjung Port II to Start in May

TEMPO.CO, Jakarta - The government has called on the Port of Rotterdam Authority to confirm when it is going to develop of the second phase of Kuala Tanjung Port in North Sumatra. The Transportation Minister Budi Karya Sumadi has given the Dutch government until May to start construction of Kuala Tanjung II. “If no development is carried out and no certainty is given, we will give it to other investors,” Budi said in his office yesterday.

Budi said that the Port of Rotterdam Authority has yet to confirm when to start the construction of Kuala Tanjung II despite the fact that the first phase of Kuala Tanjung is 90 percent complete already and will operate by July 2017.

Budi said that the first phase of Kuala Tanjung cost Rp2.5 trillion. State-owned port operator PT Pelabuhan Indonesia I (Pelindo I) and other state-owned enterprises to finance the project.

According to Budi, after the completion of the first phase, Kuala Tanjung Port will be named an international hub, albeit a limited one. Pelindo I had signed a heads of agreement (HoA) with the Port of Rotterdam Authority to jointly develop the second phase of Kuala Tanjung Port in 2015. The development of Kuala Tanjung Port comprises of four phases. The first phase is the development of a multipurpose terminal. The second phase is the development of 3,000 hectares of land for an industrial area.

The development of the third phase is expected to complete by 2019 through the construction of an international container terminal. In the fourth phase, Pelindo I will develop an industrial area. The total investment for the four phases of the project is amounting to Rp34 trillion.

DIKO OKTARA | KHAIRUL ANAM