President Joko Widodo’s administration is focusing more on developing and providing more proper infrastructure, especially in the eastern part of Indonesia such as Papua. This infrastructure development priority is different from the previous administrations, which tend to be Java-centric.
One of the projects proposed by the government is the development of Sorong Port as a sea highway that offers investment opportunities.
Sorong is the largest city in West Papua province. It is arguably the most developed city on the island as it is fairly accessible compared to other cities such as Jayapura due to its location on the western tip of the island.
Integrated port development
The proposed Sorong Port project is valued at IDR5.45 trillion and will be handled by PT Pelabuhan Indonesia (Pelindo) IV, the Investment Coordinating Board (BKPM) as well as Sorong City Administration.
They aim to focus on the development of container loading and unloading activities and logistics and passenger service only for large passenger ships. Meanwhile, small passenger ships will be served at the “people’s harbor” that will see the development of an integrated port consisting of passenger terminals, docks, offices, hotels and other tourism-support buildings that will connect Sorong to Raja Ampat tourism archipelago.
With a payback period of 20 years, some may seem too reluctant to jump in into the project, but based on the financial and operational data, there has been a steady increase in terms of operational performance as well as revenues and ship traffics.
Sorong serves as a gateway to Papua as it is the major city that has proper infrastructures and is strategically located on the west coast of the island.
Considering the strategic location and the consistent rise in terms of operational performance as well as revenues, the project could prove as a profitable investment as most of the ships would and should come through to Sorong before going deeper to other cities such as Jayapura. However, there are some factors that need to be considered.
Potential earthquakes and floods
Geographically speaking, Papua is right in the Ring of Fire, which means it is prone to earthquakes and there is a possibility of tsunami.
Investors should consider constructing earthquake-proof buildings and should have either insured or have some sort of backup plan in case catastrophic accidents happen.
Another consideration is the distance between Papua and other key ports, which is very far and could put a more expensive cost if the necessary resources are not available on the island.
Moreover, the possibility of flood should also be considered as it might cut access to inland connectivity as 33.65% of Sorong is prone to flood.
