APM Terminals Proposes Solutions to Indonesia’s Infrastructure Challenges
Addressing the Indonesia International Conference- Focus On Indonesian Economy 2011, APM Terminals Asia-Pacific Regional Director of Portfolio Management, Michael Lund Hansen, noted the impressive recent growth of the Indonesian economy, but cautioned on the need for port and inland infrastructure to keep up with the nation’s development requirements.
“Indonesia is not growing at its full potential, because economic growth in Indonesia faces infrastructure challenges”, Mr. Hansen told the conference, which also featured Indonesian President Susilo Bambang Yudhoyono as a keynote speaker, and included many Indonesian Government officials among conference participants and audience members.
During the conference several keynote speakers focused on the importance of public private partnerships to address the pressing need for infrastructure investment in Indonesia.
Speaking as a member of a Panel Discussion on Infrastructure examining “Public facility Infrastructure as a Main Engine of Economic Growth“, Mr. Hansen stated that five out of the six major Indonesian containerports, which combined handle 90% of Indonesian container traffic, are currently operating above capacity, reducing efficiency and adding to logistics costs, risking the loss of international trade to lower-cost rivals.
Mr. Hansen conveyed to the audience that APM Terminals strongly believes in Public Private Partnerships and that APM Terminals is committed to investing in Indonesia. Tanjung Priok and Tanjung Perak, Indonesia’s largest containerports, handled 4.7 and 3 million TEUs respectively in 2010. The economy of Indonesia, with a population of 240 million, expanded by 6.1% in 2010, and is projected to grow to $842 billion USD in 2011. Economic growth of 6.2% and 6.5% has been forecasted by the International Monetary Fund for Indonesia in 2011 and 2012.
According to World Trade Organization Data, Indonesia ranked 30 in global exports with $119 billion USD and 31st in global imports with $92 billion during the global economic downturn of 2009. Indonesia’s current’s overall annual container throughput capacity is 11 million TEUs.
Based on projected growth rates, Mr. Hansen advised that Indonesia will require a minimum of 6-7 million TEUs of new container capacity by 2015, or an additional 15 million TEUs of container capacity by 2020, and that given the time required for construction of such facilities, urged Mr. Hansen, “The time to get started is now“.
About APM Terminals
– providing the port and inland infrastructure to drive global commerce
APM Terminals is taking a leading role in addressing the critical issues facing the transportation industry. With customers and business partners, the company has designed the world’s most comprehensive port and inland network to meet the shipping community’s needs today, tomorrow and in the future. With more than 60 ports and 132 inland facilities in 63 countries – the goal is to offer the market more solutions than ever before to help companies and countries achieve their ambitions.
Source: apmterminals, July 22, 2011;