Indonesia-Malaysia Expands New Belawan–Penang–Perlis Logistics Route

RRI.CO.ID, Penang – The Consulate General of the Republic of Indonesia (KJRI) in Penang welcomed the signing of a Memorandum of Collaboration (MoC) between PT Belawan New Container Terminal (BNCT), Mutiara Perlis Sdn. Bhd. (a Malaysian private limited company), and Penang Port Sdn. Bhd. (a Malaysian private limited company), which is expected to strengthen regional logistics connectivity and trade.

According to a statement from the Indonesian Consulate General in Penang received in Jakarta on Saturday, May 30, 2026, the MoC was signed at Perlis Inland Port, Malaysia, on Friday, May 29, 2026, coinciding with the inauguration of the Tuanku Syed Sirajuddin Free Trade Zone in Perlis.

Indonesian Consul General in Penang, Wanton Saragih, said the collaboration would enhance the movement of goods and trade between Indonesia and the KJRI Penang’s jurisdiction, which covers Penang, Kedah, and Perlis.

“BNCT can serve as a key gateway in Sumatra to strengthen supply chain connectivity among ASEAN member states and with East Asian markets such as China in a more efficient manner,” Wanton said.

He added that the connectivity would accelerate the flow of Indonesia’s leading commodities from Sumatra, including palm oil and its derivatives, coffee, cocoa, tea, and other agricultural products, to the KJRI Penang region and beyond.

According to him, the cooperation also has the potential to boost economic growth within the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT) while opening an alternative connectivity corridor linking ASEAN with East Asia.

Through the synergy among the three ports, the parties will seek to improve supply chain efficiency, accelerate cross-border cargo movement, and integrate digital systems to ensure seamless end-to-end distribution of goods.

Operationally, the Belawan–Penang route spans approximately 255 kilometers and continues for another 133 kilometers to Perlis Inland Port, bringing the total distance to 388 kilometers. The route is considered more efficient than the conventional Belawan–Singapore route, which is nearly twice as long.

Meanwhile, PT Belawan New Container Terminal President Director Mohamed Suffian bin Abdul Manaf described the MoC as a strategic step to strengthen BNCT’s position within the international logistics network.

“This MoC opens a new logistics corridor connecting Sumatra with regional and global markets. BNCT is ready to support smoother international trade while enhancing national logistics competitiveness,” Mohamed Suffian said.

According to the Indonesian Consulate General in Penang, the cooperation aims to strengthen the movement of goods and trade linking Sumatra with northern Malaysia as well as other Southeast Asian countries, including Thailand, Cambodia, Laos, and Vietnam, extending to East Asian markets, including China.

Under the arrangement, BNCT will serve as the main gateway in Sumatra, Penang Port will function as a transshipment hub, and Perlis Inland Port will act as a land logistics gateway connecting Southeast Asia and East Asia.