DP World and the Indonesia Investment Authority (INA) have signed an agreement to form a consortium and working team to explore investments into the logistics infrastructure in Indonesia.
The investments, which could reach $7.5 billion in the long run, would include inland terminals, cargo parks, feeder network systems, landside transport and industrial zones.
They will also explore collaboration with the Indonesia Port Corporations (Pelindo).
DP World will seek to leverage its joint investment platform with Caisse de dépôt et placement du Québec (CDPQ) which, since its launch in 2016, has invested in 12 port terminals globally across various stages of the asset lifecycle.
The partnership will enhance Indonesia’s maritime and port sector within the global manufacturing ecosystem, improve the operation of ports, reduce logistics costs and advance national competitiveness.
In a statement, DP World said that as a global leader of data-driven logistics expertise and infrastructure, it will bring world-class technology and best practices to develop new port terminals and assets, enabling greater shipping efficiency and enhancing inter-island and international connectivity.
INA’s CEO, Ridha Wirakusumah, said this strategic partnership with DP World aligns with INA’s mission to optimize investment in Indonesia’s infrastructure and resources to deliver long-term economic development.
Indonesia is the largest archipelago in the world with more than 17,000 islands. Its vast geography makes it reliant on a strong domestic shipping network.
DP World Group Chairman and CEO Sultan Ahmed Bin Sulayem said, “DP World recognizes 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.”