Through our partnership with INA, we are committed to supporting national initiatives that create value and bring in expertise to modernise the Indonesian maritime infrastructure.
Indonesia Investment Authority and DP World partner to invest $7.5 billion
The Indonesia Investment Authority (INA) signed a strategic alliance agreement with DP World to enhance Indonesia’s maritime and port sector within the global manufacturing ecosystem. The economic value of this partnership could reach up to $7.5 billion over the long term.
This partnership will improve the operation of ports, reduce logistics costs, and advance national competitiveness.
As a global leader of data-driven logistics expertise and global infrastructure, Dubai-based DP World will bring world-class technology and best practices to develop new port terminals and assets, enabling greater shipping efficiency and enhancing inter-island and international connectivity.
DP World and INA will form a consortium and working team to explore investments into the logistics infrastructure in Indonesia, including hinterland investments, inland terminals, cargo parks, feeder network systems, landside transport, and industrial zones. They will also explore collaboration with the Indonesia Port Corporations (Pelindo). DP World will seek to leverage its joint investment platform with Caisse de dépôt et placement du Québec (CDPQ) which since its launch in 2016 has invested in 12 port terminals globally across various stages of the asset lifecycle.
INA’s Chief Executive Officer, Ridha Wirakusumah, said this strategic partnership with DP World aligns with INA’s mission to optimise investment in Indonesia’s infrastructure and resources to deliver long-term economic development. INA's investment focuses on several key sectors, such as airports, ports, toll roads, industrial estates, digital infrastructure, healthcare services, and renewable energy.
Indonesia is the largest archipelago in the world with more than 17,000 islands. Its vast geography makes it reliant on a strong domestic shipping network. Despite historically trailing neighbouring countries in containerization rate and currently facing issues of high logistics costs, Indonesia is already among the top 15 countries in terms of container traffic and has much potential to grow further. Furthermore, containerization rate in Indonesia will only increase given the burgeoning domestic consumption and production.
“Indonesia’s maritime and port sector is key to support trade and consumption across the archipelago, and this collaboration with DP World will enable us to resolve issues of high logistics costs and port inefficiencies. Following INA’s rigorous partner selection process, we are confident that DP World can work well with us to create a strong domestic shipping network and add value to investors, businesses and employees. We would like to extend our gratitude to the Ministry of State-Owned Enterprises, Ministry of Finance, Ministry of Transportation, other government agencies and Pelindo for their strong support,” said Mr Wirakusumah.
DP World Group Chairman and CEO H. E. Sultan Ahmed Bin Sulayem said, “DP World recognises the vast potential of Indonesia as one of the fastest-growing economies in the world, as well as projects undertaken by the government to improve port facilities. Through our partnership with INA, we are committed to supporting national initiatives that create value and bring in expertise to modernise the Indonesian maritime infrastructure.”
DP World CEO & MD Asia Pacific and Australasia Glen Hilton said, “Together with INA, we will focus on building mutually beneficial relationships with local governments and stakeholders to create value across Indonesia’s supply chain. By combining our experience and disruptive technology with INA’s mandate to maximise economic impact, we are optimistic that we can elevate Indonesia’s supply chain performance.”
DP World will also introduce its global best practices to Indonesia, including operations optimisation, service innovation, disruptive technologies, and safety principles. Cutting-edge logistics technology includes fully automated stacking to eliminate inefficiency, hyperloop systems for fast cargo delivery, and 100% electric sustainable means of cargo transport.
We are the leading provider of worldwide smart end-to-end supply chain logistics, enabling the flow of trade across the globe. Our comprehensive range of products and services covers every link of the integrated supply chain – from maritime and inland terminals to marine services and industrial parks as well as technology-driven customer solutions.
We deliver these services through an interconnected global network of 129 business units in 55 countries across six continents, with a significant presence both in high-growth and mature markets. Wherever we operate, we integrate sustainability and responsible corporate citizenship into our activities, striving for a positive contribution to the economies and communities where we live and work.
Our dedicated, diverse and professional team of more than 55,000 employees from 134 countries are committed to delivering unrivalled value to our customers and partners. We do this by focussing on mutually beneficial relationships – with governments, shippers, traders, and other stakeholders along the global supply chain – relationships built on a foundation of mutual trust and enduring partnership.
We think ahead, anticipate change and deploy industry-leading technology to further broaden our digital vision to disrupt world trade and create the smartest, most efficient and innovative solutions, while ensuring a positive and sustainable impact on economies, societies and our planet.
About Indonesia Investment Authority (INA)
Established in 2020 through Law No. 11 of 2020 on Job Creation, Indonesia Investment Authority (INA) is mandated to grow investment to support Indonesia’s sustainable development and build wealth for future generations. INA collaborates with reputable global and domestic institutions to co-invest in various sectors that aims to generate optimal returns and strengthen Indonesia’s competitiveness.
For more information, please visit www.ina.go.id