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What Everybody Ought to Know About Soft Launch Impact of Patimban Port on Indonesia

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Denny Darmodihardjo
What Everybody Ought to Know About Soft Launch Impact of Patimban Port on Indonesia

Indonesia: Gross domestic product (GDP) in current prices from 1985 to 2025

Indonesia is a land of many exotic, mysterious, and interesting things. Some call it the land of promise while others think Indonesia as the “land of then unknown”. For newcomers, whatever you think, it is a beautiful archipelago with tremendous economic potential and is on its way to becoming one of the world’s largest economies alongside India and China.

The Indonesian Government’s commitment to expanding its infrastructure is making Indonesia a hub for many things. And while other Asian countries are struggling with this global health crisis, Indonesia continues to move forward with its initiative by continuing to construct large deep seaports, new airports, and many more toll roads. (The GDP growth is showing the impact)

This one article will provide you all the insights you need to know about the impact of the Patimban deep seaport, in particular, in Indonesia, especially in the Subang Region.

Economic Status of Indonesia

Indonesia is known for it’s natural resources. It is the largest economy next to China in Southeast Asia, according to the World Bank. As the fourth largest populous nation in the world, Indonesia has been challenging its neighbors like Japan, China, and India for its deep labor pool and great manufacturing capacity.

Indonesia has always been a trading hub in the Southeast Asian region for centuries. Countries in the west like India, Pakistan, and Iran facilitate their trade with the east using the Indonesian ports. This gives Indonesia a superior advantage.

But still there were some underdeveloped regions in Indonesia which made the overall growth slower. According to a latest report, the most developed region was Jakarta, Special Region of Yogyakarta, and East Kalimantan.

Provinces in Indonesia

Indonesia Human Development Report 2020

Jakarta

0.807

Special Region of Yogyakarta

0.799

East Kalimantan

0.762

Source: https://en.wikipedia.org/wiki/List_of_Indonesian_provinces_by_Human_Development_Index

The Subang Regency is one of the strategic locations in West Java where some development efforts can make a huge impact on the country’s economy. Let’s talk about the launch of a new port in Subang regency — Patimban Deep Seaport.

A Soft Launch of Patimban Amid the Pandemic

The construction of Patimban deep seaport was started with a hope to complement the Tanjung Priok Port. Tanjung is the busiest port in Indonesia.

However, the real interest for making the deep seaport was to develop the Subang regency which was previously untouched by the Government.

Patimban deep seaport saw its official launching on December 2020, amid the Coronavirus fear around the world. Since Patimban is situated in a strategically suitable location, it was able to send a maiden automotive export to Brunei in December 2020.

This is a good opportunity for the development of Subang regency as the trademark car brands like Toyota, Daihatsu, and Suzuki are willing to use the port as a new hub. The President of Indonesia expressed his gratitude by saying, “In the midst of this pandemic, we have completed one of the national strategic projects, namely the construction of Patimban Port.”

This marks the importance of Patimban Port and the entire Subang regency in the eyes of the policy makers. The timely soft launching in midst of the global economic downturn could bring massive economic growth to the country and the West Java province. “And we certainly plan on being in the middle of this. The multi-family housing opportunity here is too great to ignore” claims Denny Darmodihardjo.

Why the Soft Launching was Significant?

Patimban Port was estimated $3 billion before the construction started. Analysts estimated 7.5 million TEU capacity of the port which will develop in three stages within 2027. However, with a soft launch, this port is ready to make trades right now when Indonesia needed it the most.

The Patimban Port is 145 kilometers away from the city of Jakarta. High speed roads are already in place to improve and help the logistics of the deep seaport.

It has also encouraged the growth and need for bigger roads, additional terminals, super-fast highways, more airports, and has created better real estate opportunities in the region. “There is a desperate need for housing in these areas as people from all over the Country flock there looking for work. This is an absolute game changer and for those who have the connections to develop there, the opportunities are endless”, says Denny Darmodihardjo.

They’ve already constructed toll roads connecting the Subang regency with the other parts Indonesia. The new airport near Patimban also reduced the pressure on the overcrowding City of Bandung.

This made the Patimban port one of the most Nationally Strategic Projects for the country. In fact, international and sovereign investment money came pouring in to make this project more of a common interest. The first phase of the port will be constructed using the Japan International Cooperation Agency (JICA) funds.

Patimban Port is a game changer for both the Subang regency and the Indonesian government. It should open many opportunities for every stakeholder in the country.

More and more trading and financing opportunities are becoming a possibility in Subang thanks to the soft launching of the port. Although, there were doubts about the launching of the Patimban port amid the Covid-19 pandemic, but the President of Indonesia made it possible.

Sources:

https://www.indoindians.com/indoindians-com-the-information-hub-for-living-in-indonesia/

https://www.worldbank.org/en/country/indonesia/overview

https://en.wikipedia.org/wiki/List_of_Indonesian_provinces_by_Human_Development_Index

https://www.hellenicshippingnews.com/patimban-port-sends-maiden-automative-export-to-brunei-darussalam/

https://www.deklangroup.com/indonesia

https://www.statista.com/statistics/320142/gross-domestic-product-gdp-in-indonesia/

 

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