Jakarta, Indonesia.go.id – The government has decided to designate Kertajati Airport as a cargo airport hub and Patimban as a container port.
The government intends to establish Patimban Port and Kertajati Airport in West Java as logistics hubs. Consequently, the government is advancing several ongoing strategic projects, such as the high-speed railway.
"The high-speed railway will soon be operational. We will conduct trials in September 2022, and—God willing—it will be ready for operation by June of next year," said Minister of State-Owned Enterprises (SOE) Erick Thohir at the State Palace on Wednesday, August 24, 2022.
According to Erick, the operation of the high-speed railway will enrich Jakarta's transportation ecosystem, which already features the Mass Rapid Transit (MRT) and will soon operate a lighter rail system with lower passenger capacity: the Light Rail Transit (LRT).
He noted that this more comprehensive ecosystem would extend into West Java through the high-speed railway. "This will drive new economic growth," Erick stated.
Erick is optimistic that the infrastructure development aimed at boosting West Java's economy will be further complemented by the development of economic zones in Subang and Sukabumi. "We have just been tasked with developing the Subang Industrial Estate, which is an integrated area. This creates a unified connection between logistics and people," Erick said.
Logistics Systems vs. Goods Prices
Erick added that inefficient logistics systems contribute significantly to the prices of goods borne by consumers. The establishment of logistics centers is expected to reduce shipping costs while simultaneously driving local economic growth.
Furthermore, the government plans to develop an industrial estate in Subang Regency, West Java. This industrial estate will be connected to the logistics hubs at Patimban Port and Kertajati Airport.
The Subang industrial estate is located in the southern part of West Java, an area with the potential to become a new center for economic growth. The region is now served by Patimban Port in Subang and Kertajati Airport in Majalengka. According to Erick, ministers in the Jokowi cabinet held a meeting last week and decided to designate Kertajati as a cargo airport hub.
As is known, the airport's operations for scheduled passenger flights were suspended due to low demand. Additionally, the government is developing Patimban Port, which is set to become a competitor to Tanjung Priok. Construction of the port is targeted for completion by 2027.
The investment value for Phase 2 of the Patimban Port construction project in West Java stands at IDR 7.58 trillion. Meanwhile, the investment value for Phase 3 is projected at IDR 3.86 trillion and will be executed under a Public-Private Partnership (PPP) scheme.
This investment progress regarding Patimban Port stems from a visit to Japan some time ago. During a meeting with Japanese Prime Minister Fumio Kishida in Tokyo in July 2022, President Jokowi requested that Japan expedite the completion of several projects in Indonesia, such as the Jakarta MRT and Patimban Port.
"Several strategic projects for which I requested expedited completion include the Jakarta MRT—specifically the North-South line (Phase II) and the East-West line (Phase I)—as well as the industrial estate in West Papua, the expansion of Patimban Port, and the Patimban access toll road," said President Jokowi, as quoted from the official website of the Cabinet Secretariat (Setkab) on Wednesday, July 27, 2022.
Further construction of the vehicle and container terminals is set to enter the contracting phase in October 2022. "October marks the continuation [of construction]. The container terminal structure is already in place, but the equipment is not yet installed; that is what the next phase entails," explained Arif Toha, Acting Director General of Sea Transportation at the Ministry of Transportation.
Previously, Phase 1 of Patimban Port was inaugurated by President Jokowi on December 20, 2020. The government hopes that Patimban will eventually complement Tanjung Priok Port, with the capacity to handle 7.5 million TEUs of containers and 600,000 Completely Built-Up (CBU) vehicles annually.
Statistics Indonesia (BPS) reported that West Java's economy—measured by Gross Regional Domestic Product (GRDP) at current prices—reached IDR 2.21 quadrillion throughout 2021. When measured by GRDP at constant 2010 prices, West Java's economy grew by 3.74% in 2021 compared to the previous year.
Meanwhile, West Java's GRDP growth, which previously hovered above 5% annually, declined sharply in 2020 and 2021 due to the pandemic. However, in the first quarter of 2022, West Java recorded positive growth of 5.61% (year-on-year/yoy)—a rate exceeding the national economic growth and the highest on the island of Java.
The manufacturing industry, the largest contributor to West Java's GRDP, appears to be recovering in 2022. This sector recorded the highest growth and played a key role in driving the overall increase in West Java's GRDP.