South Sumatra Gains New Port and Toll Road, BKPM Reveals Economic Impact

Bisnis.com, JAKARTA — The development of the new Palembang Port in Tanjung Carat, South Sumatra, supported by a connecting toll road to the infrastructure facility, is believed to provide a multiplier effect on the economic growth of the southern Sumatra region.

Deputy Minister of Investment and Downstreaming/Deputy Head of the Investment Coordinating Board (BKPM) Todotua Pasaribu stated that the integration of the toll road and port is aimed at strengthening logistics connectivity while increasing the distribution volume of flagship commodities from South Sumatra and surrounding areas.

According to him, one of the most tangible impacts will be felt by the coal sector, which has long faced distribution route challenges.

“One of them [related to this] is Bukit Asam [PTBA]. For several years, its volume has been relatively constrained because the export route has indeed been quite challenging,” he said in Jakarta on Wednesday (13/5/2026).

He explained that the existence of the new toll road and port is expected to increase the distribution volume of various flagship commodities such as coal, coffee, rubber, palm oil, and other commodities from South Sumatra and a series of other regions like Jambi and the Bangka Belitung Islands.

With the increased distribution volume, regional economic growth is also expected to be boosted.

According to him, the development of this logistics connectivity will also improve the quality of goods distribution while reducing logistics costs, which have long been a barrier to the competitiveness of commodities from southern Sumatra.

“The existence of this toll road will provide quality to logistics activities and that will impact costs,” he said.

Todotua stated that the integration of the toll road and port will make commodity distribution routes more efficient, thereby enhancing the competitiveness of local flagship products in both domestic and export markets.

“We can lower logistics costs and increase the volume of existing commodities,” he said.

The government previously signed a memorandum of understanding (MoU) for the Plan of Cooperation for the Integration of Toll Road Development to the New Palembang Port in Tanjung Carat, Banyuasin Regency, South Sumatra.

The signing was carried out by BKPM together with the Ministry of Public Works, PT Hutama Karya (Persero), PT Bukit Asam (Persero) Tbk. (PTBA), and PT Pelabuhan Indonesia (Persero).