Pelindo Builds Logistics Hub and Supply Chain in Kuala TanjungPelindo Builds Logistics Hub and Supply Chain in Kuala Tanjung

Pelindo is boosting the development of a port-integrated industrial area in Kuala Tanjung. Become an Indonesia Logistics and Supply Chain Hub in North Sumatra.

Jakarta, 05 February 2024 - A number of strategic steps have been taken by PT Pelabuhan Indonesia (Persero) or Pelindo to accelerate the development of the Kuala Tanjung Industrial Estate (KIKT) which is integrated with the Port of Kuala Tanjung. The area, located in Batubara Regency, North Sumatra, was built and managed by PT Prima Pengembangan Kawasan (PPK), a subsidiary of Pelindo.

The Kuala Tanjung Industrial Estate is only one kilometre away from Kuala Tanjung Port. "Last year, PT Prima Kawasan Development has acquired 57 hectares of land in one stretch," said PT Pelindo Solusi Logistik (SPSL) Subholding President Director Joko Noerhudha in Jakarta, 10 January 2024.

Starting in early 2024, PT PPK will focus on land clearing and maturation of the acquired land. "This is the first of three phases of KIKT development," Mr Noerhudha added. The next two phases are the construction of gates and entrance roads, and the phase of basic infrastructure work.

Along with the development of the industrial estate, PT PPK is also aggressively promoting and marketing KIKT through various investment activity forums. One of them was in the North Sumatra Invest Promotion Forum 2023 in Jakarta on 21 August 2023.

"An integrated port and industry will make the industry much more efficient because there are no more additional costs incurred for transport," said PT Pelindo (Persero) President Director Arif Suhartono. In addition, the delivery of goods to and from the port is also much faster.

Arif Suhartono explained that Pelindo will continue to encourage a well-connected ecosystem between the port and the industrial area (hinterland) to facilitate the flow of goods. "One of the goals is to create more efficient logistics costs and encourage the strengthening of the regional economy," Arif said again.

To develop KIKT, Pelindo is exploring strategic cooperation with three parties. First, Pelindo plans to increase share ownership in PT Prima Tank Indonesia (PTI) as a first step to making Kuala Tanjung a transhipment hub for bulk products. Currently, Pelindo has a 20 per cent stake in PTI.

The company, which is engaged in transportation and warehousing, has stockpile tanks with a total capacity of 100 thousand metric tonnes (MT). Since the end of November 2019, PTI has officially become a Bonded Logistics Centre Operator. This status will benefit customers due to various facilities and conveniences, especially in the field of customs and excise.

In addition, Arif explained, Pelindo is also exploring cooperation on land utilisation of the Kuala Tanjung Industrial Estate with PT IBC (PT Indonesia Battery Company), and potential cooperation in Kuala Tanjung with Zhejiang Provincial Seaport Investment & Operation Group Co. Ltd (China).

The development of Kuala Tanjung Port and Industrial Estate involves PT Prima Multi Terminal which manages the port and PT Pelindo Solusi Logistik (SPSL) which develops KIKT. Kuala Tanjung Port now focuses on managing bulk products.

In the long term, Kuala Tanjung Port and Kuala Tanjung Industrial Estate will become the Indonesia Logistic and Supply Chain Hub. The market potential is indeed very large. Currently, many palm oil (CPO) and derivative processing companies and metal refining industries (smelters) have been established in Kuala Tanjung.

Some of them are PT Multimas Nabati Asahan (Wilmar Group) and PT Dombas Mas. These factories process palm oil (CPO) into fatty acid, fatty alcohol, palm kernel and cooking oil, among others. Meanwhile, metal processing plants include PT Inalum (Persero), PT Dairi Prima Mineral, and PT Asahan Aluminium Alloys.