New Seaport in South Sumatra Will Benefit Local Farmers, Miners: Governor

TheIndonesia.id - The governor of South Sumatra said the development of a new port in the province will create positive impacts for locals as it will support trade and trigger economic development.

Governor Herman Deru revealed South Sumatrans are hoping a deep seaport in Tanjung Carat area, Banyuasin subdistrict, can be developed soon because the economic implications will be huge.

“South Sumatra is rich of commodities, but we find it difficult to get them outside because there’s no seaport,” Deru said on Sunday, June 19, as reported by Antara.

As producer of rubber, oil palm, and coal, Riau’s local farmers and miners continue to struggle to gain benefit since cost of transport for those commodities remains high. Due to the nonexistence of a major port, the province depends on Boom Baru river port that is located in the middle of capital city Palembang.

As a result, only small-sized vessels have been in use, and only 40 percent of these vessels’ capacity can be utilized.

“The bigger vessels can only transport 8,000 tons of 40 percent of capacity while the cost is similar to those that transport 20,000 tons,” the governor explained.

This inevitably affects the price of rubber and oil palm, and Deru said a proper seaport will change the current condition and improve the livelihood of the people in South Sumatra by supporting export activities.

“That is why I hope for the emergence of a leading figure from Sumatra who can oversee development program in South Sumatra.”

As of now, the deep seaport project has been approved to be included in the National Strategic Project and is currently finalizing the land provision process.