Energy Infrastructure Unveiled at Port of Kuala Tanjung

MINISTRY OF ENERGY AND MINERAL RESOURCES

REPUBLIC OF INDONESIA

PRESS RELEASE

NUMBER: 385.Pers/04/SJI/2020

Date: 4 December 2020

Energy Infrastructure Unveiled at Port of Kuala Tanjung

Ministry of Energy and Mineral Resources (EMR) is committed to providing adequate and fair supply of energy despite the new normal era due to the Covid-19 pandemic, Minister of EMR Arifin Tasrif has said at the Groundbreaking of Supporting Bunker of Oil Fuel Terminal (TBBM) and the Inauguration of Kuala Tanjung Gas Pipelines at Port of Kuala Tanjung in North Sumatra Province. The event was held virtually in Jakarta on Friday (4/12). Minister of Transportation, Budi Karya Sumadi, also attended the ceremony.

"A seaport is a gateway to the global business which will drive national economy. For this reason, we must ensure that energy is available at every port in Indonesia," Minister Arifin said, adding that he appreciated the synergy between state-owned enterprises PT Pertamina (Persero) and PT Pelindo I (Persero) in using PT Pelindo's port asset for energy distribution by PT Pertamina.

Minister of EMR also expressed his appreciation to PT Pertamina (Persero) for the successful completion of the Kuala Tanjung gas distribution network amid the pandemic. The gas distribution infrastructure is expected to meet the gas demand of the Kuala Tanjung Industrial Zone while turning it into a clean energy area.

Additionally, the energy infrastructure in Kuala Tanjung is expected to distribute regasification output from Arun LNG Receiving Terminal or tail gas from gas fields in Aceh Province for the industries in Kuala Tanjung.

Meanwhile, Minister of Transportation said that Port of Kuala Tanjung is a strategic port in the Malacca Strait and to the north of Singapore and Malaysia. With a draft--the vertical distance between the waterline and the bottom of a ship's hull--from 15 meters to 17 meters, the port can accommodate large, international vessels.

"Mr. President always wants to have high national growth. One way to achieve this is by increasing our logistic performance index. What we're doing in Kuala Tanjung is part of our efforts to increase it (logistic performance index)," he said.

Kuala Tanjung is also supported by Sei Mangkei, a very prospective industrial zone. Thus, Budi suggested that Pertamina and Pelindo I develop Sei Mangkei in cooperation with strategic, multinational partners.

Port of Kuala Tanjung is a sea port at Batubara Regency, North Sumatra Province, Indonesia. Once fully functional, the port can accommodate 60 million TEUs (twenty-foot equivalent units) per year, bigger than Port of Tanjung Priok in Jakarta. Located in the strategic location near the busy waters of the Malacca Strait, Kuala Tanjung will be Indonesia's largest transit hub once finished. Sei Mangkei Special Economic Zone is being built along with Port of Kuala Tanjung as part of the strategy to turn North Sumatra as an international hub. (IY)

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