Sri Vijaya Puram, April 23: A proposal to establish a direct maritime trade route between the Andaman and Nicobar Islands and Aceh has gathered renewed attention, with officials and industry stakeholders outlining a framework to operationalise the Sabang–Nicobar corridor as a viable shipping link.
At a virtual meeting involving government representatives, trade bodies, customs officials and private stakeholders, participants focused on building a structured pathway for cargo movement between the islands and Sabang. The proposed route, described as a “Sabang–Nicobar golden bridge,” is based on the short maritime distance of around 200 km between the regions, compared to nearly 1,800 km from mainland India.
Speakers noted that despite this proximity, goods bound for the islands are largely routed through mainland ports, increasing both transit time and costs. The absence of a direct shipping link has been identified as a key gap limiting trade potential between India and Indonesia at the regional level.
Trade figures shared during the discussion highlighted the imbalance. In 2025, Aceh recorded total trade of $1.15 billion, with exports of $649 million and imports of $577 million. Around 74% of Aceh’s exports, valued at $485 million, were directed to India. However, imports from India into Aceh remain negligible, suggesting that logistical barriers may be constraining trade flows.
Participants said that a direct Sabang–Nicobar route could enable India to access Aceh’s import market more effectively, while also improving supply chain efficiency for goods reaching the Andaman and Nicobar Islands.
Sabang’s designation as a free trade zone, under Indonesia’s Regulation No. 11/2000, was identified as a key enabler. The policy allows limited duty-free movement of goods, creating flexibility for trade and small-scale cargo operations. Officials said this framework could support the initial stages of the corridor’s development.
From a logistics standpoint, Sabang is being positioned as a transit and aggregation hub. Existing port infrastructure, with loading and unloading capacity estimated at 120–130 units, is expected to support cargo handling. The island could function as an intermediate node for goods moving between Aceh, the Andaman and Nicobar Islands, and other markets.
Participants also discussed the use of short-haul maritime systems, including wooden and small cargo vessels, to initiate connectivity. Similar models operating in Southeast Asia and along India’s western coast were cited as examples of cost-effective solutions that can be deployed without large upfront investment.
A cargo structuring model was proposed to ensure viability. Under this approach, at least 50% of shipments would consist of priority commodities to maintain steady volumes. These include marine products from the Andaman and Nicobar Islands, essential commodities such as sugar and rice from India, and key exports from Aceh.
The Andaman and Nicobar Islands are expected to play a central role in the route, particularly in the supply of fish and marine products. Stakeholders pointed to the region’s underutilised fisheries sector and suggested scaling up exports through the proposed corridor. Sabang, in turn, could support processing and redistribution.
However, regulatory challenges remain. Restrictions on exporting commodities like rice and sugar from specific Indian ports were flagged as constraints. Participants proposed that the Andaman and Nicobar Islands be considered as an authorised export point to facilitate smoother movement of such goods.
High import duties on products such as betel nut were also highlighted as a concern. A value-addition approach was suggested, where semi-processed goods could be routed through the islands for processing before export, improving competitiveness.
Officials from Aceh and Sabang acknowledged the need to address regulatory bottlenecks, while Indian customs representatives indicated that procedural issues could be examined further.
Institutional support is expected from Indonesia’s diplomatic and trade network in India, including its embassy in New Delhi, consulate in Mumbai, and the Indonesian Trade Promotion Center in Chennai, which is geographically closer to the islands.
Organisers said feedback from participants would be compiled to identify priority sectors and guide next steps. Discussions are also underway to convene a Joint Task Force meeting between India and Indonesia focusing on Aceh.
While the proposal remains at a planning stage, stakeholders said that aligning logistics, regulatory frameworks and trade priorities could help operationalise the Sabang–Nicobar route as a functional maritime corridor, reducing transit time and costs while opening new avenues for bilateral trade.
