Indonesia is working on a project to develop 14 modern seaports to facilitate its connectivity with other ASEAN countries and prepare for the establishment of the regional common market by 2015.

Deputy Minister of Transportation Bambang Susantono said the construction of the planned seaports would significantly reduce Indonesia’s logistics costs which now account for 25 - 30 percent of its GDP, one of the highest levels in ASEAN.

Bambang said most of the capital investment for the projects will be sourced from the ASEAN Infrastructure Fund as well as credits from other countries such as Japan , China and the Republic of Korea, and capital from the private sector under the form of public-private partnership (PPP).

Indonesian Ambassador to ASEAN Ngurah Swajaya said Japan is willing to provide 200 billion USD to finance a number of projects under the ASEAN Connectivity Master Plan put forward at the 17th ASEAN Summit held in October, 2010, in Hanoi, Vietnam .

The World Bank estimated that ASEAN needs to pour in more than 7.5 trillion USD in regional and national infrastructure to realise the ASEAN Connectivity Master Plan.

The targeted projects include Belawan port in Medan, Dumai port in Riau, Panjang port in Lampung, Tanjung Priok port in Jakarta, Tanjung Emas port in Semarang, Tanjung Perak in Surabaya, Balikpapan port in East Kalimantan, Banjarmasin port in South Kalimantan, Makassar port in South Sulawesi and Sorong port in West Papua./.