BKPM Boosts Logistics Efficiency through Development of Tanjung Carat Port
The Ministry of Investment and Downstreaming/BKPM is strengthening the development of Tanjung Carat Port in South Sumatra to improve national logistics efficiency and investment competitiveness.
The Ministry of Investment and Downstreaming/Investment Coordinating Board (BKPM) is taking strategic steps by bolstering the development of the new integrated Palembang Port at Tanjung Carat, Banyuasin Regency, South Sumatra. This initiative primarily aims to accelerate logistics efficiency in Indonesia, particularly in southern Sumatra. This ambitious project is expected to address various logistical challenges that have long hindered the region’s economic potential.
Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, emphasised that the construction of Tanjung Carat Port is not merely an ordinary infrastructure project. The port is designed as a comprehensive solution to enhance trade capacity and improve national competitiveness. The groundbreaking for this project took place on Thursday (9/4), marking the beginning of a new chapter for logistics infrastructure in South Sumatra.
The development of Tanjung Carat Port also forms an integral part of the government’s strategy to strengthen integrated logistics infrastructure. The port will be connected to industrial zones and other transportation networks, creating an efficient and modern logistics ecosystem. As such, it is expected to have a significant positive impact on the local and national economy as a whole.
Vision and Strategy for Tanjung Carat Port Development
The government views Tanjung Carat Port as key to optimising South Sumatra’s abundant natural resource potential, such as coal, oil and gas, and plantation commodities. To date, this vast potential has not been optimally utilised due to limitations in efficient logistics infrastructure. Todotua Pasaribu stressed that resource wealth would be meaningless without adequate commercialisation capabilities and logistics efficiency.
As an integrated port, Tanjung Carat is designed to have strong connectivity with various supporting infrastructures. This includes toll road networks and railway lines, as well as planned industrial zones within a single development cluster. This integration is expected to minimise logistics costs and travel times, enabling products from South Sumatra to compete better in both domestic and international markets.
Furthermore, the Tanjung Carat Port area is proposed to become a Special Economic Zone (SEZ) based on downstreaming. This will be Indonesia’s first downstreaming-based SEZ, expected to attract greater investments and create added value from raw products. This downstreaming SEZ concept aligns with the government’s efforts to promote economic transformation towards high-value-added industries.
Government Support and Investment Momentum
Investment realisation in South Sumatra in 2025 reached Rp62.66 trillion, dominated by the processing industry sector, particularly paper and printing, as well as mining and energy sectors. This achievement indicates a direction of economic transformation towards high-value-added industries, which requires strong support from an efficient logistics system. The development of Tanjung Carat Port is expected to maximise this investment potential.
The central government has provided full support for the Tanjung Carat Port development project, including accelerating land acquisition and integrating supporting infrastructure. This support reflects the government’s strong commitment to realising this national strategic project. Todotua Pasaribu emphasised the importance of collective commitment to execute this project quickly so as not to lose the development momentum.
With efficient logistics infrastructure like Tanjung Carat Port, the added value from investments entering South Sumatra can increase significantly. This will not only improve regional competitiveness but also provide direct benefits to the community through job creation and sustainable economic growth. This project serves as concrete evidence of the government’s efforts to strengthen the national economic foundation.