PT. Formosa Sejati Logistics (PT. FSL), TIPC’s first overseas business investment, is continuing to actively expand its activities in the Indonesian market. This month (September 2022), PT. FSL signed a memorandum of understanding with PT. Probolinggo Logistic Center (PT. PLC), a Busan Port Authority-invested Indonesian enterprise, on cooperation to expand container terminal, container yard, and warehousing logistics business operations in the country. The new partnership between PT. FSL and PT. PLC promises to significantly upgrade the quality and scope of logistics services available to Taiwanese and Korean companies operating in Indonesia.
Reflecting Taiwan’s New Southbound Policy and optimism about regional economic growth prospects, Taiwan International Ports Corporation (TIPC) founded Surabaya-based PT. FSL in a joint venture with Yang Ming Marine Transport and local Indonesian partners in May 2018. PT. FSL focused initial efforts on serving extant inland container yard and warehousing logistics needs in the greater Surabaya area, while putting out feelers to identify of other investment opportunities in Indonesia.
PT. PLC was established in May 2021 in Probolinggo City as a joint venture among Busan Port Authority, Korea Overseas Infrastructure & Urban Development Corp. (KIND), and local Indonesian partners, with a primary focus on developing warehousing logistics opportunities at the Port of Probolinggo.
The nation of Indonesia has a relatively young population profile and is rich in natural resources. The Indonesian government passed the Omnibus Law in 2021 to stimulate inbound and outbound investment activity and significantly boost domestic employment. Both PT. FSL and PT. PLC are bullish on the prospect of many new Taiwanese and Korean investments in Indonesian manufacturing facilities. The two companies will cooperate closely on developing new container yard and warehousing logistics business opportunities to improve the quality and scope of services available to Taiwanese and Korean enterprises in Indonesia.
