Tanjung Priok Port has inaugurated phase one of the expansion of the new Priok container terminal, with the remaining four phases set to be completed in 2019.
"We cannot delay the development of modern ports any longer. This supports trade flows and investment in this country. If we're slow we'll be left behind,” Joko Widodo, President of Indonesia, was cited by Reuters news agency as saying.
"The expansion of Tanjung Priok may encourage shipping lines to launch more direct ship calls to Jakarta, but I do not see it as a major threat to Singapore's transhipment status,” said Jonathan Beard, head of transportation and logistics in Asia for design and consultancy firm, Arcadis.
The expansion forms part of plans laid out by the Indonesian government to speed up the loading and unloading process at ports.