Indonesia’s Strategic Port –Tanjung Priok

Colless Young’s network of services is well established in Indonesia, and by now many of our clients have discovered there is a lot more to our northern neighbour than the beaches of Bali. Those who explore the potential in this thriving economy often come up against logistics bottlenecks and bureaucratic procedures – issues that make our forwarding services indispensable to a smooth flow of cargo – leave the headaches to us!

Australia and Indonesia share the world’s longest maritime boundary. Importers and exporters will be familiar with the bustling Port of Tanjung Priok, located in North Jakarta. It handles around two-thirds of the country’s international trade and serves as the primary gateway for the Greater Jakarta area.

The Port’s strategic location and extensive road and rail connections make it a pivotal hub for international shipping. With an annual container throughput capacity of over 7 million TEUs (Twenty-foot Equivalent Units), it features deep-water berths capable of accommodating large vessels, and boasts modern container terminals with state-of-the-art equipment.

As the world’s largest archipelagic nation, Indonesia’s maritime sector plays a crucial role in its economic development and global trade connectivity. With over 17,000 islands spanning three time zones, the country’s ports serve as vital gateways connecting its vast territory to international markets.

A glaring challenge that faces Indonesia’s port sector is the need for continuous infrastructure development and modernization. Many of the country’s other ports still lack the necessary facilities and equipment to handle larger vessels and increasing cargo volumes efficiently.

To stay competitive, the Indonesian government has been implementing a major expansion plan for Tanjung Priok, known as the “New Priok” project. This ambitious development aims to significantly increase the Port’s capacity, improve its efficiency, and establish it as a major transshipment hub in Southeast Asia.

The operator of the Port, Pelindo, has launched a program to streamline port logistics at Tanjung Priok, in a move intended to slash logistics costs and boost global competitiveness. Their target is to improve two key performance indicators: Ship Turnaround Time (TAT) and Container Dwelling Time (DT).

Indonesia is a vitally important partner for Australia. We enjoy extensive cooperation including on strategic, economic, security, development and education matters. In 2024, it was our 9th largest two-way trading partner by value ($16.13 billion) and our 10th largest export market.

The relationship is underpinned by regular high-level meetings, with the most recent being the Annual Leaders’ Meeting held in Jakarta on 15 May 2025. Prime Minister Anthony Albanese was accompanied by Foreign Minister Penny Wong and Home Affairs Minister Tony Burke.

On 05 July 2025, the two countries celebrated the fifth anniversary of the Indonesia-Australia Comprehensive Economic Partnership Agreement’s (IA-CEPA) entry into force. The agreement’s economic cooperation program, Katalis, takes a user-friendly approach to maximising the benefits of IA-CEPA through improved market access, increased two-way trade, and inclusive economic growth.

Katalis was developed as a five-year (2020-25) program, but a new phase is planned to commence in early 2026. For those interested, the Katalis Podcast offers insight into business, policies, the economy, and everything else related to the IA-CEPA.

Colless Young’s comprehensive network covers all the major provinces and ports of Indonesia. Let our experienced staff guide you through the processes of your import and export shipping—contact Andrew, Tel: +61 7 3890 0800 email enq@collessyoung.com.au