The Indonesian consul-general in Penang, Wanton Saragih, said Belawan port would serve as a key gateway in Sumatra to strengthen the distribution of goods across regional markets; Penang Port as a transshipment hub, and Perlis inland port as a land logistics link to Southeast Asia and East Asia.

A memorandum of collaboration between the three parties was signed today in conjunction with the opening of the Perlis inland clearance depot and free trade zone, he said in a statement quoted by Bernama

“This connectivity will accelerate the flow of Indonesian commodities from the Sumatra region, such as palm oil, coffee, cocoa, tea and other agricultural products, to Penang, Kedah and Perlis, as well as surrounding areas,” he said.

Belawan port is 255km from Penang, while Perlis inland port lies a further 133km away. Wanton said the route was more efficient than the conventional Belawan-Singapore route, which was almost twice as long.