“The port will especially be used for cargo and logistics that will serve exports and imports between Indonesia and Vietnam, particularly coal,” Intra Asia Indonesia commissioner Lutfi Ismail said on thejakartapost.com.

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Coal prepared for shipment at a port in Indonesia. (Photo for illustration: thejakartapost.com) 

The port, worth USD 1 billion, is designed to have a capacity of 15-20 million tons of coal per year and will help cut logistics costs for importing coal from Indonesia. Hence, it will facilitate the sustainable development of coal exports from Indonesia to Vietnam and supply fuel to coal power plants in Vietnam.

Indonesia’s Central Statistics Agency recorded that trade between Indonesia and Vietnam reached USD 6.3 billion last year, while Indonesia suffered a USD 182.9 million deficit.

This year, Indonesia is targeting to export 4.5 million tons of coal to Vietnam, Lutfi added.

Source: VNA