Maersk Signs LOI to Boost Cargo Flows in Eastern Indonesia
Danish shipping, trade and energy conglomerate Maersk Group has signed a Letter of Intent (LOI) with Indonesia’s Coordinating Ministries for Maritime Affairs and Economic Affairs to enter an alliance on the maritime and economic development of Bitung in Eastern Indonesia.
The scope of collaboration will include areas such as the processes around customs clearance, cargo release and other border procedures; the flow of goods through the port; the regulatory environment; and the shipping liner connectivity of Bitung in a regional and international perspective.
The LOI is expected to enhance inter-island connectivity, and is in line with the Indonesia New Maritime Strategy. With trade being more developed in the Western part of Indonesia, the aim of the LOI is to accelerate trade and economic development in Eastern Indonesia. Bitung has therefore been identified as a special economic development zone and a strategic national transportation hub.
Focus will be placed on driving increased connections from Eastern Indonesia to more developed parts of the country, as well as regional and global export markets.
“We want to support the development of Eastern Indonesia by understanding the challenges and opportunities for the supply chains of key commodities such as tuna, coconut and their downstream products, as well as the potential of aquaculture development and the need to improve vocational skills in this area. We see the added value this will bring and expect this will enhance the economic activity and trade of the country,” said Jakob Friis Sorensen, President Director of Maersk Line in Indonesia.
The signing ceremony was held at the maritime seminar “Increasing Connectivity,” during the Danish State Visit to Indonesia.
“We have been operating in Indonesia for more than 50 years, and we see the potential for increased exports out of the Eastern Indonesia. We are excited to partner with the Indonesia government to enable trade and develop for example, the fishing industry, which will create jobs and economic development to the local communities. If successful, our aim is to make Bitung a model for replicating good practice in other parts of Indonesia to bring about increased trade for the country,” said Jakob Friis Sorensen.