Pelindo and INA to Transform Belawan Port into Global Logistic Hub

PT Pelabuhan Indonesia (Pelindo) and the Indonesia Investment Authority (INA) consortium will take transformative measures to develop and operate the Belawan Port in Medan, North Sumatra.

Belawan port must improve its performance and capacity to integrate into the global logistics ecosystem quickly," Special Staff III of SOE Minister Arya Sinulingga said. By joining this ecosystem, Belawan Port can directly serve the transportation of goods to their destination countries (direct call).

About 95 percent of Sumatra's exports must transit through other countries before reaching their final destination. In 2021, nearly half of the export containers from Sumatra were shipped to Malaysia, while the remaining half were transported to Singapore, Thailand, and Taiwan through Myanmar. Afterward, these containers are transferred to larger vessels and taken to over 30 export destinations.

This transit requirement imposes expensive sea freight costs and longer travel times on exporters. Additionally, the country spends more on foreign exchange because most shipping services, such as ship rental, insurance, and berthing fees, are paid in foreign currency.