Indonesian Political, Business & Finance News

Tanjung Carat Projected to Become New Logistics Hub in South Sumatra

| | Source: RRI.CO.ID Translated from Indonesian | Infrastructure
Tanjung Carat Projected to Become New Logistics Hub in South Sumatra
Image: RRI.CO.ID

The government is strengthening the development of the national downstreaming ecosystem in South Sumatra. This step is being taken through the enhancement of logistics connectivity to Tanjung Carat.

This strengthening is marked by the signing of a memorandum of understanding for the construction of a toll road to the New Palembang Port. The port is located in Tanjung Carat, Banyuasin Regency, South Sumatra.

The signing was conducted by the Ministry of Public Works and the Ministry of Investment and Downstreaming/BKPM. In addition, the South Sumatra Provincial Government and several state-owned enterprises are involved.

Deputy Minister of Investment and Downstreaming/Deputy Head of BKPM, Todotua Pasaribu, stated that the integration of toll roads and ports is very important. According to him, connectivity will enhance logistical efficiency in South Sumatra.

“The existence of the toll road will improve the efficiency and quality of logistics, and it will be integrated with production centres, economic zones, and the supply chain in South Sumatra. A port without efficient road access will struggle to deliver maximum economic impact,” said Todotua in Jakarta on Wednesday, 13 May 2026.

He assessed that ports require adequate road access to provide maximum economic impact. Connectivity infrastructure is also seen as supporting the supply chains of industrial and energy zones.

According to Todotua, South Sumatra has significant potential in the coal and energy sectors. Additionally, the region is strong in plantations and processing industries.

Therefore, the development of connectivity to the New Palembang Port is considered very important. This step is expected to unlock greater economic added value for the region.

“Downstreaming requires connectivity. Downstreaming requires efficient logistics,” said Todotua.

Meanwhile, the Secretary General of the South Sumatra Provincial Government, Edward Chandra, assured the local government’s support. Support is being provided to accelerate the strategic project.

“The South Sumatra Provincial Government provides full support for the acceleration of this strategic project. Through spatial planning synchronisation, policy and regional regulation support, cross-regency/city coordination, and facilitating the resolution of various field obstacles,” said Edward.

The construction of the toll road to the New Palembang Port will later connect to the Trans-Sumatra Toll Road. This infrastructure is expected to strengthen the national supply chain and logistics distribution.

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