The Indonesian government has secured a loan of 83.4 billion yen (approximately IDR 8.5 trillion) from Japan to fund the third phase of Patimban Port’s development in Subang, West Java, according to Embassy of Japan to Indonesia.
As published in the Japan Embassy website /(www.id.emb-japan.go.jp/itpr_id/news25_01.html), this loan agreement was formalized through an exchange of notes between the Ambassador of Japan to Indonesia, Yasushi Masaki, and the Director-General of Asia, Pacific, and Africa at Indonesia’s Ministry of Foreign Affairs, Abdul Kadir Jailani, on January 10, 2025.
The signing took place just before the scheduled summit between Japanese Prime Minister Shigeru Ishiba and Indonesian President Prabowo Subianto on January 11. The total loan for the Patimban Port project amounts to 83.4 billion yen dedicated specifically to the third phase of port development.
Patimban Port, which officially began operations in 2021 as a center for car exports, will benefit from this expansion, which is aimed at increasing its capacity significantly. Once completed, the port’s car export capacity will rise to 600,000 units annually, nearly 1.5 times Indonesia’s current car export volume.
The expanded port will include additional infrastructure such as a new container terminal, a dedicated car terminal, and other essential facilities, enhancing the logistics capabilities of the Jakarta area.
This development is expected to contribute to Indonesia’s economic growth by strengthening its investment climate and boosting international trade. The project also reinforces the strategic relationship between Japan and Indonesia, which are long-standing partners in various international initiatives.
The cooperation aligns with broader efforts to support a Free and Open Indo-Pacific (FOIP) and the ASEAN Outlook for the Indo-Pacific (AOIP), both of which share similar principles and goals.
With the third phase of Patimban Port’s construction, Indonesia aims to bolster its role in the global supply chain, while fostering closer ties with Japan in the process.
Boosting Indonesia’s Economic Growth
Indonesia’s rapid economic expansion in recent years has created significant demand for container and logistics services. With the existing Tanjung Priok Port’s annual capacity of 8.63 million TEU (twenty-foot equivalent units) projected to fall short of the growing demand—estimated to reach 10.24 million TEU by 2025—Indonesia faces a pressing need for expanded infrastructure to support its thriving economy.
Compounding the issue, Jakarta’s already congested roadways, especially around Tanjung Priok Port, have made access increasingly difficult for companies, including Japanese businesses with production facilities in Jakarta’s eastern suburbs. The limited space for logistics operations in the region further exacerbates the problem, making the construction of a new port to alleviate the pressure on Tanjung Priok not only important but also highly anticipated.
To address these challenges, the Indonesian government has initiated the development of Patimban Port, a new facility designed to enhance logistics capabilities in the Jakarta area. Located to the east of Jakarta, Patimban Port will feature a state-of-the-art container terminal, a car terminal, and other essential infrastructure. This development is poised to significantly improve the flow of goods, distribute traffic more effectively, and reduce congestion around Jakarta’s existing port.
In addition to alleviating logistical bottlenecks, Patimban Port is expected to have a substantial impact on Indonesia’s economic growth. By boosting the country’s logistical efficiency and improving the investment climate, the port will attract both local and international investors, supporting Indonesia’s position as a key player in global trade. As the expansion project progresses, Patimban Port will play a critical role in accommodating the country’s increasing trade volume and providing modern infrastructure to keep pace with its dynamic economy.
Ultimately, the establishment of Patimban Port represents a critical step in ensuring Indonesia’s continued growth, both domestically and in the global market, while addressing the logistics challenges that have hindered the efficiency of its capital’s infrastructure.