S.Korea opens logistics center at Surabaya port, Indonesia

South Korea said it opened a logistics center at a port in Surabaya, Indonesia, to support exports to Southeast Asia’s top economy.

The Ministry of Oceans and Fisheries and the Busan Port Authority on May 26 launched operations at the center in the capital of the Indonesian province of East Java, according to the ministry on Thursday.

They secured the facility as South Korean companies, which had focused on Jakarta, are expanding their businesses into Java, Indonesia’s second-largest economic area, and seeking distribution facilities, the ministry said.

The center is set to first handle the products of companies that face difficulties in finding such facilities or pay more than market prices as they manage small quantities of various items. It plans to provide product warehousing, releasing and transporting services to South Korean companies for fees about 10% less than market levels.

“The government will help our exporters expand their markets across the world by continuing to secure overseas logistics bases needed for companies,” said Minister of Oceans and Fisheries Cho Seung-Hwan in a statement.

The ministry and the port authority in South Korea’s second-largest metropolitan have been operating logistics centers in Rotterdam, Netherlands, Barcelona, Spain and Probolinggo, Indonesia, to handle products of South Korean companies with priority.

Write to Jung-hwan Hwang at jung@hankyung.com
 
Jongwoo Cheon edited this article.