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Port of Malayahati, Aceh Besar (Image credit: Pelindo I)

Indonesia state-owned port operators set higher capex in 2019

JAKARTA (RambuEnergy) – State-owned port operators – Pelindo II, Pelindo I, Pelindo III and Pelindo IV – have set higher capital expenditure (capex) in 2019 to fund various existing and new port-related projects, company top officials have said.

Pelindo II, the largest port operator and also the operator of Indonesia’s largest port Tanjung Priok in north Jakarta, has set Rp11 trillion in capital expenditure this year. Bisnis Indonesia daily quoted Director Technique of Pelindo II, Dani Rusli Utama said large portion of the source of the capital expenditure will come from internal cash flow.

Of the amount, he said, Rp1 trillion will be allocated to support the operation of its 12 port operator subsidiaries, Rp4 trillion will be used to fund national strategic projects and Rp2 trillion will be allocated as equity in subsidiaries. The remaining funds Rp3.5 trillion will be allocated to support the development of New Port Container Terminal (NPCT 2), NPCT 3 as well as the development of Kijing Terminal in Mempawah, West Kalimantan.

Pelindo II, also known as Indonesia Port Corporation (IPC), will also allocate funds to develop the Patimban Port in Banten, purchasing the shares of PT Krakatau Bandar Samudera and the development of Cibitung-Cilincing toll road.

Pelindo I, which operates main ports in Western Indonesia including Belawan port in North Sumatera, sets aside Rp8 trillion in capital expenditure this year, higher than realized Rp4.5 trillion spent last year. Portion of the funds, around Rp2 trillion, will be used to develop Kuala Tanjung industrial area in North Sumatera, Belawan Port phase one, strengthening the digtial system.

Meanwhile, Pelindo III has decided to set Rp6.4 trillion in capital expenditure in 2019 to fund multi-years projects well as new projects. The capex will be financed by internal cash-flow as well as the proceeds of global bonds worth US$500 million raised last year.

The funds will be used to develop port supporting infrastructures, such as road access to the Lamong Bay Port in Esat Java as well as Gilimas Terminal in West Lombok, West Nusa Tenggara. Gilimas Terminal is designed  to accommodate international cruise ships that visited the region as well as to support the Mandalika Special Economic Zone).

Meanwhile, Pelindo IV sets capex of Rp6.4 trillion for 2019, according to its President Director Farid Padang. Portion of the funds will be used to fund joint projects with Pertamina, the state run energy company, while other portions will be used to buy new equipment, as well as developing new facilities. (*)

 

 

 

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