Development of Tanjung Carat Port Accelerated to Strengthen Downstreaming and Logistics

The government is accelerating the development of Tanjung Carat Port in South Sumatra. This project is deemed strategic to support downstreaming and improve national logistics efficiency. Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, stated that the project serves as a solution to logistical challenges in the region. This development is also expected to enhance investment competitiveness. “Our main issue is not resources, but the ability to commercialise them and logistical efficiency. Tanjung Carat Port is the solution to increase trade capacity and improve our competitiveness,” he said during the Project Launching of the New Palembang Port in Tanjung Carat, Banyuasin Regency, South Sumatra, on Thursday, 9 April 2026. He assessed that South Sumatra has vast natural resource potential. However, its utilisation has not been optimal due to limited logistics infrastructure. “We are rich in resources, but if not competitive, it means nothing. Ultimately, the people bear the burden, so logistics infrastructure is key to increasing added value,” he said. Todotua explained that the port will be integrated with supporting infrastructure, including toll roads, railway lines, and industrial areas. In addition, the Tanjung Carat area is planned to become a Special Economic Zone (SEZ) based on downstreaming. This step aims to strengthen investment competitiveness and drive regional economic growth. “This consolidation is part of investment projects and national strategic projects, and it is planned to open a special economic zone area. This will be the first time it becomes a downstreaming-based special economic zone,” he said. He added that investment realisation in South Sumatra in 2025 reached Rp62.66 trillion. This investment was dominated by the processing industry sector as well as mining and energy. “The investment potential is already large. But we must push it with efficient infrastructure so that the added value can be maximised and competitiveness increased,” he said. Governor of South Sumatra, Herman Deru, reaffirmed his commitment to building an ocean port in his region. The construction target is expected to be realised by 2028 or at the latest 2029. He said the development of this port is a long-standing aspiration that has been fought for over decades. This effort has been pioneered by previous regional leaders. “If traced back, this has been fought for more than 40 years. From what was just a sign or ‘crescent’, today it becomes a reality with the start of the project launching,” he said. According to him, the existence of an ocean port is very important for South Sumatra. This is considering the region has wealth in natural resources such as coal, rubber, and coffee. He explained that so far, commodity distribution has relied on ports outside the region. This condition causes higher logistics costs and decreased competitiveness. In addition, the shallowing of the Musi River also poses a serious obstacle to shipping activities. Large ships cannot operate optimally at Boom Baru Port. “This is not just about trade, but also humanity. Congestion and accidents in the city also become impacts from port activities that are no longer adequate,” he said. Herman is optimistic that the development of Tanjung Carat Port will be the solution. This project is expected to replace the role of Boom Baru Port while improving logistics efficiency.