Transportation Ministry allocates Rp83 billion for Teluk Tapang Port development

The West Sumatra administration has secured Rp83 billion in funding from the Transportation Ministry for 2026 to accelerate the development of Teluk Tapang Port in West Pasaman regency, a project aimed at boosting crude palm oil (CPO) exports and regional economic growth.

West Sumatra Governor Mahyeldi said the allocation underscores the central government’s commitment to developing Teluk Tapang as a strategic economic hub.

Alongside the funding, the provincial administration is processing a change in forest status at the project site to enable full-scale development. Around 168 hectares of land are planned to be developed in coordination with the West Pasaman regency administration.

“The change in forest area status is crucial so the land can be utilized optimally for port development,” Mahyeldi said on Friday (Feb. 13, 2026), expressing hope that the process would proceed smoothly.

Although construction is not yet fully complete, investor interest has begun to surface. Mahyeldi said several investors have inquired about securing approximately 100 hectares for palm oil processing and downstream industries.

West Pasaman is one of the largest palm oil-producing areas in the province, and the port is expected to strengthen the region’s downstream capabilities. According to Mahyeldi, palm oil processing could generate value-added products such as biodiesel, aviation fuel (avtur) and other derivatives.

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Once operational, Teluk Tapang Port is projected to serve as a key driver of West Sumatra’s economy, particularly for West Pasaman. The facility is expected to accelerate exports of CPO and other commodities, including agricultural and mining products.

Mahyeldi said the port would reduce reliance on costly land transportation by enabling more efficient sea-based logistics. Millions of tons of plantation produce, corn and mining materials from West Pasaman and surrounding areas are expected to benefit from improved export access.

To support the port’s operations, the provincial government is also preparing road infrastructure to ensure safer and smoother freight mobility.

Strategically located near Mandailing Natal in North Sumatra, Teluk Tapang Port is also expected to serve as an outlet for plantation and mining products from the neighboring province, potentially expanding its regional economic impact.

The project forms part of broader efforts to enhance West Sumatra’s export infrastructure while encouraging downstream investment in the palm oil sector.

Editing by Reiner Simanjuntak