DP World, Maspion Group sign $1.2bn agreements in Indonesia
Two preliminary agreements between global trade enabler DP World and Indonesia’s leading conglomerate Maspion Group were signed on Wednesday to create a US$1.2 billion container port and industrial logistics park in East Java.
The exchange of agreements were witnessed by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and President Joko Widodo of Indonesia.
Also present at the signing ceremony were the Indonesian Minister of Transportation, Budi Karya Sumadi, and Minister of State-Owned Enterprises, Rini Soewarno.
It is the first joint venture of its kind in the Indonesian transportation sector involving a private sector partnership between an FDI partner and a private sector Indonesian company in Maspion, within the context of cooperation in maritime services with the state-owned maritime services operator Pelindo III.
Two term sheet agreements aim to create a modern, integrated container terminal and industrial logistics park, expected to play a vital role as a trade gateway for Eastern Java. It includes cooperation in setting up Maspion International Container Port in Gresik, East Java, with an investment of US$1.2 billion and three million TEU’s of capacity using electric power in its operations to help cut carbon emissions.
An integrated 360 hectare industrial and logistics park could also provide a world class trade environment for Indonesian and international businesses to help drive economic growth and job creation.
The project is expected to break ground later this year and commercial operations are being planned for the first half of 2022. The vision is to support East Java’s infrastructure as part of President Joko Widodo’s programme to accelerate economic growth.
Commenting on the announcement, Sultan Ahmed bin Sulayem, DP World Group Chairman and CEO and Chairman of Ports, Customs and Free Zone Corporation, said, "This partnership will be a major addition to our global portfolio and a new step in our ongoing expansion. It will also enhance our continuing commitment to Indonesia, one of the most important world economies.
"Our business model and vision are aligned with President Jokowi’s commitment to continue his infrastructure focus and to make sure it is interconnected. We believe it will further consolidate the excellent relations between the UAE, the Indonesian government and Pelindo 3 and take DP World’s presence in the country to a new level."
DP World ended its concession agreement with Pelindo 3 at the Surabaya Container Terminal in April 2019. The new agreements confirm a long-term strategic partnership in the economic development of the country which has been growing rapidly in recent years. Indonesia has the fastest rate of growth in electronic retail in South East Asia.
Dr. Alim Markus, President Director and CEO of Maspion Group, said, "This collaboration is a major development for the two groups, and a new step in Maspion Group’s ongoing expansion."
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