“The port will especially be used for cargo and logistics that will serve exports and imports between Indonesia and Vietnam, particularly coal,” said Intra Asia Indonesia commissioner Lutfi Ismail in a statement.

Capacity of the port will reach between 15 and 20 million tonnes of coal per year, he said, adding that it would cut logistics costs for coal imports from Indonesia.

Lutfi said construction of the port would facilitate the sustainability of coal exports from Indonesia to Vietnam, and would help fuel power plants in the country. Indonesia targets to export 4.5 million tons of coal to Vietnam this year, said Lutfi.