Determination of Optimum Domestic Hub Port for Eastern Indonesia in Container Shipping

Abstract

As a largest archipelagic country in the world, Indonesia has potential to become “the
world’s maritime axis”. Consequently, the Blueprint of Development of National
Logistics System (SISLOGNAS) was established in order to accomplish the objective. In
line with the Masterplan for Acceleration and Expansion of Indonesia’s Economic
Development (MP3EI) 2011 – 2025, the vision and mission were set to create the national
logistics hubs and to develop efficient connectivity inter-region and inter-islands. The
“Sea Toll” program was thus be introduced to improve connectivity so that it can deliver
goods efficiently and effectively across Indonesia. This study will find optimum domestic
hub port in order to accommodate the container movement from the West to the East of
Indonesia. This study uses integer linear programming to determine the most optimum
domestic hub port and collects a total of 37 ports across Indonesia including 2 origin
ports, 12 hub port candidates, and 23 destination (spoke) ports at the Eastern Indonesia.
By using a mathematical method, this study finds the cheapest transportation cost for all
container distribution system. Finally, this study results Samarinda port and Banjarmasin
port with a cost of IDR 783.596.604.509, -. as the optimum domestic hub ports for the
Eastern Indonesia.