Malaysian firm eyes Tanjung Api-Api Port<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Malaysian infrastructure firm PT Orient Technology Indonesia will
\ninvest some US$250 million for the construction and operation of
\nthe Tanjung Api-Api international port in South Sumatra.<\/p>\n
As reported by Antara, the plan was conveyed during a meeting
\nbetween Orient president commissioner Mohd Sopian Rashdi and
\nSouth Sumatra Governor Syahrial Oesman in Palembang on Friday.<\/p>\n
After the meeting, Rashdi said a consultant had recently begun
\ndesigning the port and construction was expected to commence
\nafter the company signed a memorandum of understanding (MOU) with
\nlocal administrations.<\/p>\n
\"The construction will start after we sign the MOU with the
\nadministrations of South Sumatra and Banyuasin regency. We have
\nprojected that construction will be completed in December 2007,\"
\nRashdi said.<\/p>\n
The Banyuasin administration is involved in the project
\nbecause the port will be located in the regency, some 90
\nkilometers south of the South Sumatra capital Palembang.<\/p>\n
Banyuasin Regent Amiruddin Inoed said the port was expected to
\nprovide a boost to the South Sumatra economy as a whole and the
\neconomy of the newly established regency in particular. Banyuasin
\nused to be part of Musi Banyuasin regency.<\/p>\n
\"Improvement in the local economy will help reduce
\nunemployment in the province, as well as the number of people
\nliving below the poverty line,\" said Amiruddin, adding that the
\nport would help connect the province with international importers
\nand exporters.<\/p>\n
South Sumatra is rich in natural resources such as oil, gas,
\ncoal, palm oil, rubber and coffee. However, most of these
\nresources have not been fully exploited because of limited
\ntransportation facilities such as ports.<\/p>\n
In order to send its resources to other provinces, South
\nSumatra currently relies on Boom Baru Port in Palembang, which
\nhas limited shipping capabilities and is not designed for
\nshipping to international destinations.<\/p>\n
Alex Kurniawan Edi, chairman of the South Sumatra Association
\nof Rubber Producers, conveyed his association's support for the
\nconstruction of the new port, which he said would help rubber
\nproducers in the province increase their exports.<\/p>\n
\"The port will enable us to easily export our commodity
\ndirectly to the United States and Japan. This will in turn help
\nus increase our output,\" said Alex after a separate meeting with
\nGovernor Syahrial.<\/p>\n
Aside from benefiting coffee and palm oil producers, the port
\nshould also help reduce shipping costs, making all local
\ncommodities more competitive in the international market, Alex
\nsaid.<\/p>\n
Currently, export-oriented commodities from South Sumatra have
\nto be shipped to other ports in nearby provinces before being
\ntransported to Singapore for shipment to Japan, the United States
\nand Europe.<\/p>\n
This forces local producers to shoulder extra costs, making
\ntheir products less competitive.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/malaysian-firm-eyes-tanjung-api-api-port-1447893297",
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"sponsor": "Okusi Associates",
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