Pelindo and the INA-DPWorld Consortium Achieve Important Moments in Transforming Belawan New Container Terminal into a Maritime Gateway

Jakarta, 23 June 2023 - PT Pelabuhan Indonesia (Persero) (Pelindo) through its grandson, PT Prima Terminal Petikemas (Prima TPK), and the consortium formed by the Indonesia Investment Authority (INA) together with DP World FZE (DP World), namely PT INA DPWorld Investment (INA DPWorld), today executed the Signing of a Shareholders Agreement (SHA) for the establishment of a Joint Venture Company that will carry out market development and operation of the Belawan New Container Terminal (BNCT), in order to strengthen Indonesia's port infrastructure. This agreement is a continuation of the previous agreement signed by the two entities (Master Agreement) in August 2022 to manage BNCT.

This investment partnership marks an important milestone for Indonesia's port infrastructure, in order to accelerate Indonesia's economic growth through capital investment and strategic expertise.

The strategic location of Belawan New Container Terminal in the Malacca Strait as one of the busiest and most important international shipping routes connecting Asia with the Middle East, Europe and Africa, supported by its strong connectivity to the industrial area around the port, presents a unique opportunity for Belawan New Container Terminal to become a significant logistics and maritime traffic hub.

With a focus on optimizing the supply chain network, the investment in Belawan New Container Terminal is poised to unlock the full potential of Indonesia's critical infrastructure assets. This terminal will play an increasingly significant role in driving economic growth in Indonesia, particularly in the developing northern Sumatra region, as well as strengthening Indonesia's position as a key player in the global logistics industry.

The realization of today's collaboration was made possible through a strategic and synergistic partnership with DP World, a world leader in global supply chain solutions with extensive experience in investing and operating ports in various parts of the world. Supported by the Coordinating Ministry for Maritime Affairs and Investment, Ministry of Finance, Ministry of State-Owned Enterprises, and Ministry of Transportation, this partnership seeks to advance national competitiveness by lowering logistics costs and improving port operations.

Present to witness the signing of the shareholder agreement was the Minister of State-Owned Enterprises, Erick Thohir. The signing was carried out by the Main Director of PT Pelabuhan Indonesia (Persero), Arif Suhartono, Group Chairman and CEO of DP World, Sultan Ahmed Bin Sulayem, and Ridha Wirakusumah, Chairman of the Board of Directors of the Indonesia Investment Authority.

Minister of Finance Sri Mulyani Indrawati stated, "The completion of the investment process between Pelindo, INA and DP World is a significant progress in the utilization of Belawan Port as one of Indonesia's strategic assets. INA and Pelindo have a mandate, in their respective functions, to make the best use of good capital and assets owned for the benefit of the community in accordance with the state capital participation that has been given. We have to admit, equity participation from the government cannot fully meet the needs needed to unlock Indonesia's potential, so creative funding arrangements and partnerships like this are very important to fully optimize the potential of the country's important assets.

"With the availability of modern international standard ports, our industry will be more connected and we will be stronger in realizing our exports. Which in the end, accelerates structural transformation and strengthens the resilience of the national economy," added Sri Mulyani.

BUMN Minister Erick Thohir said that this agreement had been planned for two years ago and could finally be realized this year, in line with BUMN's mission to continue to encourage the development of the logistics ecosystem because the logistics sector in Indonesia is large and challenging.

"In accordance with President Joko Widodo's directives, there is always strategic value for equity and acceleration of economic growth at the regional and national level through the construction of ports, including the new container terminal at Belawan Port which is believed to support downstream to maximize exports in new ways and also accelerate the economy in North Sumatra continues to grow. This is in accordance with the objectives of the development of the Terminal port which will strengthen the national port industry ecosystem, as well as the competitiveness of Indonesian ports as strategic trade routes in Southeast Asia and internationally," said Erick.

"This event is a continuation of the signing of the Master Agreement on August 24, 2022 and is a major milestone that has gone through a long process, a complex process, and a process that requires collaboration with all parties. I am optimistic that the Belawan Investment and Operations collaboration can be a catalyst for BNCT as an international standard container terminal that takes on the main role of being a world-class trade facilitator through strategic connectivity, integrated port ecosystem and modern operations including business development through containers. The realization of the Belawan Investment and Operations collaboration is one form of manifestation of the company's 2023 roadmap, namely Business Expansion and Strategic Partnership. This collaboration is also proof that after the merger, the level of investor confidence in Pelindo has increased," said Arif Suhartono, Main Director of PT Pelabuhan Indonesia (Persero).

"INA's investment in the Belawan New Container Terminal is an important step to position Indonesia as a leading maritime axis, as well as a key player in the global logistics industry. This transformative project supports economic growth and advances Indonesia's maritime sector, providing an important role in driving economic growth in Indonesia," said Ridha Wirakusumah, Chairman of the INA Board of Directors.

"We are proud to be part of Indonesia's efforts to expand the Belawan New Container Terminal, supporting Sumatra's economic development ambitions through infrastructure development. By continuously investing in cutting-edge technology, world-class training, and implementing the highest health and safety standards, we are on a mission to eliminate inefficiencies, and further increase trade flows between Indonesia and the world," said Sultan Ahmed Bin Sulayem, Group Chairman and CEO of DP World.