Indonesian shipping firm PT Pelabuhan Indonesia I is planning a $500m port development project together with local governments and private firms, according to local reports.

The participants in the joint collaboration include Dumai Regency of Riau, the North Aceh Regency of Aceh, Sabang Regency, Langkat Regency of North Sumatera, Regional Container Line, shipping firm Maersk Line and state oil company PT Pertamina, according to the Jakarta Post.

The project involves extending ports in Riau, North Sumatra, Batam and Aceh, Indonesia.

Project funding is expected to come from Indonesia’s development partners the Japan Bank for International Cooperation (JBIC) and the Islamic Development Bank (IDB).

The director of commercial and business development at the company, Bambang Eka Cahyana, said the port project would help enhance services provided in ports through procurement of new infrastructure and work space extension.

Cahyana said that the company has obtained an $87m loan from IDB, and is likely to receive a loan from JBIC. He added that $500m would be utilised to fund projects over the next five years.

Up to $83m and $100m will be allocated for the expansion of the Belawan and Batam ports to accommodate more containers.