The Indonesian government has decided to self-finance the project to upgrade the Batu Ampar seaport at Batam in Riau Islands Province. Work on the project, estimated to cost Rp 360 billion, has already commenced and is expected to be completed by 2014. The source of the funding for the project is the state budget; the disbursal will be carried out in three phases: Rp 63 billion in 2012, Rp 200 billion in 2013, and the remaining Rp 97 billion in 2014. The seaport will serve as the main container port for supporting industrial activities in theBatam Island. The Batam Free Trade Zone Authority had earlier signed an MoU with the French shipping company Compagnie Maritime d’Afretement-Compagnie Generale Maritime for this project. However, the latter decided to withdraw from the project. Consequently, the Indonesian government decided to fund the project on its own, though with a significant reduction in its scope and components.