India proposes US$104 million investment to develop Indonesia’s Sabang Port as transhipment hub

India has reiterated its proposal to invest approximately US$104 million in developing Sabang Port in Aceh, Indonesia, into a regional transhipment hub. The proposal, first submitted in 2018, includes an Indian financing contribution of 80–85% of the estimated project cost, with Indonesia expected to cover the remaining 15–20%. However, the project has yet to receive final approval from the Indonesian government. Meanwhile, Sabang’s port authority is exploring opportunities in Andaman oil and gas logistics and cruise tourism.

India has made multiple proposals to participate in the development of Sabang Port in Aceh, Indonesia, with an estimated investment requirement of US$104 million. The proposed project aims to position the port as a regional transhipment hub supporting international shipping and trade.

According to Iskandar Zulkarnaen, Head of the Free Trade Area and Free Port of Sabang (BPKS) Management Agency, India has raised the proposal five times during high-level bilateral discussions, including meetings involving the Indonesian President and Indian Prime Minister Narendra Modi.

“Since 2018 until the last meeting yesterday, India has asked five times for Sabang Port to be a port that is cooperated with them,” Iskandar said during a media-focused group discussion in Sabang, Aceh.

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