Indonesian Fortune Fund Firm Invests in Malacca

A consortium of Indonesian state-owned port operator Pelindo and the country’s sovereign wealth fund and logistics company DP World has agreed to invest in the expansion of the Belawan port on Sumatra island, the companies said Thursday.

The deal, the value of which was not disclosed, is part of a $7.5 billion partnership between Indonesia’s Investment Authority (INA) and Dubai-based DP World, according to a joint statement issued by Pelindo and INA.
Under the agreement, Pelindo and the consortium will manage the new Bedok Bay Container Terminal (BNCT), which aims to transform the port by increasing terminal capacity, direct call and connectivity to other smaller ports.

Bedok Bay is located on the northeast coast of Sumatra Island and is currently a feeder to other large ports nearby, including neighboring Singapore and Malaysia. The port handles some of Indonesia’s palm oil and other plantation products.

The deal includes investment plans to more than double BNCT’s capacity to 1.4 million 20-foot equivalent units (TEUs) over the next six years, which will strengthen Belawan’s position in the Straits of Malacca, the companies said

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