Business · Trade · 2 hrs ago
Sabang seeks national backing to become a regional shipping hub
Sabang’s port authority is pushing for the port in Aceh, Indonesia, to become a regional transshipment hub.
Such a hub would transfer cargo between ships and distribute goods to other ports.
The port was designed for this role, but the plan has not taken off despite work on a container terminal that began years ago.
The authority says national policy is needed to give the port a clear direction and allow goods to enter, be processed and move on to other areas.
India has expressed interest in cooperating since 2018, and a study completed in 2003 estimated the project would need US$104 million in investment.
The authority is also considering the port as a logistics base for oil and gas activity in the South Andaman area, where some facilities are already available.
The proposal still needs government direction, while a Danamon economist has suggested Danantara as a possible investor.
Sabang’s free trade and free port authority is seeking national policy support to make Sabang Port a regional transshipment hub.
BPKS chief Iskandar Zulkarnaen said the port’s facilities were built for that purpose, but the hub has not become operational.
India has expressed interest in cooperating on port development five times since 2018, according to Iskandar.
A 2001 study by an Indian consultant estimated that developing the port as a regional transshipment hub would require US$104 million.
BPKS also sees potential for the port to support oil and gas logistics in the South Andaman area.
- Who
- The Sabang Free Trade Zone and Free Port Authority (BPKS), led by Iskandar Zulkarnaen, is seeking national backing.
- What
- BPKS wants Sabang Port designated as a regional transshipment hub.
- When
- Iskandar discussed the proposal on November 5; the report was published November 6, 2026.
- Where
- Sabang, Aceh, Indonesia.
- Why
- BPKS says national policy is needed to clarify the port’s use and realize its trade and logistics potential.
This story does not have two clearly opposing sides.
An Indian consultant conducted a study on investment needs for developing Sabang Port as a regional transshipment hub.
The study was completed and estimated investment needs of US$104 million.
India has expressed interest in cooperating on Sabang Port development five times, according to Iskandar.
Iskandar discussed the proposal at a media forum in Sabang.
- Port
- Sabang Port, Aceh
- Terminal
- Container Terminal 3 covers about 12 hectares
- Study estimate
- US$104 million
- Potential India financing
- India offered 80–85% of investment; Indonesia was expected to provide 15–20%
- Oil and gas logistics
- BPKS sees potential to support activity in the South Andaman area
- Warehouse space
- Sabang has about 4,000 square metres; around 10,000 square metres is needed
What people are saying
The main thing we need is national policy to designate this port as a transshipment hub
Until now, that logistics center has not been realized. We are still proposing to the government that the port, which has been built with adequate facilities, have a clear direction for its use through a national agenda