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Indonesia Island Connectivity Plan

By Wei Zhang
2 min read
Indonesia Island Connectivity Plan
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The Indonesian government has invited 33 companies from Norway and Denmark to explore business opportunities as part of plans to enhance inter-island connectivity by upgrading infrastructure and constructing 24 seaports and deep sea ports.

Both Norway and Denmark are eager to invest in Indonesia’s rapidly growing market, with the Indonesian government proposing investment in its business-to-business and business-to-government schemes focusing on port maritime industry sectors such as management and security.

Denmark and Norway’s fisheries, shipping, offshore energy and maritime equipment and services make the countries ideal partners, according to Susi Pudjiastuti, Indonesia’s Maritime Affairs and Fisheries Minister.

Danish energy firm Danfoss A/S, ship maker Odense Maritime Technology, Norwegian shipping company Wilh Wilhelmsen ASA and technology systems and solutions enterprise Kongsberg Digital were among the companies visiting Jakarta.

According to Stig Traavik, Norwegian Ambassador to Indonesia, Nordic countries will be able to advise Indonesia on technological matters due to the country’s development of energy efficient ships.

Traavik said: “We have produced ships running on natural gas instead of diesel, basically it’s like a mini power plant in the ship [able to] reduce the consumption of gas by 20% compared to modern ships that use diesel fuel.”

Indonesia has faced high operational costs from its ports due to facilities being located hundreds of kilometres apart and operated by different ministries in the country. Rini Soemarno , Indonesia’s State-Owned Enterprises Minister, visited Denmark, Finland, Norway and Sweden in September to approach the countries for partnerships in energy and fishery sectors.

Casper Klynge, Danish Ambassador to Indonesia, said: “Denmark is a very small country, but in the maritime area, Denmark and Norway are global superpowers. Every 15 minutes, somewhere around the world, a Danish-operated ship leaves a port.”

Klynge highlighted that Denmark transports 10% of the world’s goods despite accounting for 0.1% of the global population.

“Every 15 minutes, somewhere around the world, a Danish-operated ship leaves a port,” he added.

Questions & Answers

Q.

Which specific sectors are the Nordic companies expected to invest in?

A.

The Indonesian government is proposing investment in port maritime industry sectors, specifically focusing on management and security. This is part of their business-to-business and business-to-government schemes.

Q.

Why does Indonesia specifically need advice on technological matters from Nordic countries?

A.

Nordic countries can advise Indonesia on technological matters because of their development of energy-efficient ships. These include vessels running on natural gas, which can reduce fuel consumption significantly.

Q.

What is the primary challenge Indonesia faces with its current port operations?

A.

Indonesia's ports currently incur high operational costs because facilities are located hundreds of kilometres apart. Different ministries within the country operate these various port facilities.

Q.

Which Nordic countries did Indonesia's State-Owned Enterprises Minister visit to seek partnerships?

A.

Indonesia's State-Owned Enterprises Minister, Rini Soemarno, visited Denmark, Finland, Norway, and Sweden in September. The purpose was to approach these countries for partnerships in the energy and fishery sectors.

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