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Indonesia To Merge Four State-Owned Port Operators

September 21, 2021
in News
Indonesia To Merge Four State-Owned Port Operators

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Four Indonesian state-owned port operators will merge on October 1st to form the world’s eight-largest container terminal operator. The said port operators are Pelindo I, II, III, and IV.

All four port operators operates more than 72 ports combined in various provinces of Indonesia which connects to China, South Korea, and Singapore.

Deputy minister for state-owned enterprises Kartika Wirjoatmodjo said: “This merger will open up the opportunity for Indonesia Port Corporation (IPC) to compete globally. As the world’s eighth-largest container terminal operator, it will be advantageous to the economy, as port management companies seek globalisation opportunities. Ultimately, we can also reduce domestic logistics costs by further developing our port network.”

As Indonesia is formed by a cluster of islands, the domestic shipping costs are usually quite high. The Indonesian freight and logistics market was valued at US$81.3 billion in 2020, and it is expected to reach US$138.04 billion by 2026, according to a study published by Mordor Intelligence.

The study also revealed that top five major players in the Indonesian logistics market consist of DHL Group, CEVA Logistics, PT Samudera, PT Siba Surya, and PT Bhanda Ghara Reksa.

Tags: ContainerIndonesiaLogisticsPortSoutheast Asia

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