One of the world's largest port operators, DP World, says it will not be renewing its contract in Indonesia after failing to agree on renewal terms with the government.
The Dubai government-backed port operator is a 49% shareholder in Indonesia's PT Terminal Petikemas Surabaya, located on the northern shore of Java island, with the other 51% owned by the state's Indonesia Port Corporations.
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DP World Group Chairman and CEO Sultan Ahmed bin Sulaymen said Sunday in a company statement that the operating contract renewal terms offered by the Indonesian authorities "did not meet our threshold for continued investment." The contract expires at the end of the agreement in 2019.
DP World, which trades on the Nasdaq Dubai, operates 78 terminals and ports in 40 countries.