DP World, Maspion Group sign $1.2b agreements in Indonesia

Two preliminary agreements between global trade enabler DP World and Indonesia’s leading conglomerate Maspion Group were signed on Wednesday to create a $1.2 billion container port and industrial logistics park in East Java.

The exchange of agreements were witnessed by His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and President Joko Widodo of Indonesia.

Also present at the signing ceremony were the Indonesian Minister of Transportation, Budi Karya Sumadi, and Minister of State-Owned Enterprises, Rini Soewarno.

It is the first joint venture of its kind in the Indonesian transportation sector involving a private sector partnership between an FDI partner and a private sector Indonesian company in Maspion, within the context of cooperation in maritime services with the state-owned maritime services operator Pelindo III.

Two term sheet agreements aim to create a modern, integrated container terminal and industrial logistics park, expected to play a vital role as a trade gateway for Eastern Java. It includes cooperation in setting up Maspion International Container Port in Gresik, East Java, with an investment of $1.2 billion and three million TEU’s of capacity using electric power in its operations to help cut carbon emissions.

An integrated 360 hectare industrial and logistics park could also provide a world class trade environment for Indonesian and international businesses to help drive economic growth and job creation.

The project is expected to break ground later this year and commercial operations are being planned for the first half of 2022. The vision is to support East Java’s infrastructure as part of President Joko Widodo’s programme to accelerate economic growth.

Commenting on the announcement, Sultan Ahmed Bin Sulayem, DP World Group Chairman and CEO and Chairman of Ports, Customs and Free Zone Corporation, said, «This partnership will be a major addition to our global portfolio and a new step in our ongoing expansion. It will also enhance our continuing commitment to Indonesia, one of the most important world economies.»

Dr Alim Markus, President Director and CEO of Maspion Group, said, «This collaboration is a major development for the two groups, and a new step in Maspion Group’s ongoing expansion.»

Meanwhile, the Abu Dhabi National Oil Company (Adnoc), also signed a Comprehensive Strategic Framework (CSF), with Indonesia’s energy company, PT Pertamina, Persero, to explore opportunities for collaboration across the oil and gas value chain in the United Arab Emirates, Indonesia and globally.

The signing of the agreement took place in the presence of His Highness Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Force and Joko Widodo, President of Indonesia.

Dr. Sultan Ahmed Al Jaber, UAE Minister of State and ADNOC Group CEO, and Nicke Widyawati, President Director and CEO of Pertamina signed the agreement.

As part of the CSF, Adnoc and Pertamina will evaluate collaboration opportunities across the upstream, midstream and downstream sectors.

Dr Al Jaber said, «We are pleased to sign this agreement with Pertamina today, building on the strong existing relationship between our two countries. Indonesia has a thriving industrial base and is a rapidly growing market for energy. We see significant opportunity for collaboration between our two companies and the development of projects that meet our joint strategic objectives.» He added, «This collaboration with Pertamina further demonstrates ADNOC’s drive to unlock value from across our entire portfolio and our ambition to expand our international investments to become a truly global energy company.» Nicke Widyawati said, «Pertamina plans to develop an additional 1 mmbpd of refining capacity through the Refinery Development Master Plan (RDMP) and Grass Root Refineries (GRR) projects. Therefore, partnership with ADNOC will be an important milestone for Pertamina to secure energy supplies from overseas. ADNOC’s interest to participate in Indonesia’s oil and gas landscape is monumental to support Pertamina in ensuring the availability and accessibility of energy for Indonesian people.»

Separately, Mubadala, OMV and petrochemical leaders PT Chandra Asri Petrochemical Tbk and PT Chandra Asri Perkasa signed a Memorandum of Understanding to explore opportunities for collaboration in the petrochemical sector in Indonesia.

The agreement was signed by Musabbeh Al Kaabi, CEO of Petroleum and Petrochemicals Mubadala Investment Company, Dr. Rainer Seele, CEO of OMV and Erwin Ciputra, President Director of PT Chandra Asri Petrochemical Tbk and PT Chandra Asri Perkasa.

The Memorandum of Understanding affirms the intention to explore potential opportunities for collaboration in the area of petrochemicals in Indonesia. The companies will set up working groups to jointly define a schedule for the evaluation of the opportunities.

WAM