Indonesia's port operator prepares $140m to join Patimban Port bidding
JAKARTA (The Jakarta Post/ANN) - Indonesia's port operator PT Pelindo II has earmarked 2 trillion rupiah (US$140 million) from its capital expenditure (capex) this year to take part in a bidding for Patimban port operatorship.
Located in Subang, West Java, the port development, worth $3 billion in total, is one of the flagship projects between Indonesia and long-time major investor Japan.
For 2018, Pelindo II has allocated Rp 11.4 trillion in capex, all of which will be sourced internally.
Pelindo II president director Elvyn Masassya said it was ready to join in the bidding process, which may begin in February or March, and had prepared the necessary capital.
To become the operator of the port, a company is required to provide 10 percent of the project’s total value of Rp 40 trillion.
Indonesia is set to hold a majority share of 51 percent in the operatorship, while Japan will control 45 percent.
“Of the Rp 4 trillion, Indonesia’s portion is 51 percent. We have the cash [to cover the requirement],” Elvyn said on Wednesday.
He added that Pelindo II had some offerings from other companies eager to become its partners in a consortium to manage the port, but declined to specify names.
The Patimban port will be situated around 70 kilometers from the Karawang Industrial Estate and Bekasi in West Java, where many Japanese firms, especially automotive producers, set up their manufacturing facilities.
The construction of a car terminal is part of the development plan of the port.