Strategies for Advancing Hub Ports to Boost International Container Ship Trade in Indonesia

In international trade, the distribution of goods via sea freight, particularly container ships, remains irreplaceable. There are multiple options to route cargoes (containers) from the port of loading (POL) to the port of destination (POD). The use of container shipping in Indonesia is increasingly evolving. Indonesia, as a major country with a strategic location in Asia, still depends on foreign hub ports for international container ship routes. Establishing a hub port in Indonesia is constrained by various factors, both technical and regulatory. This article offers a scenario analysis approach to explore various potential strategies for developing a hub port in Indonesia. This research aims to assess the development strategy for hub ports in Indonesia. The results of this study indicate that Jakarta is ready to be developed as a hub to attract larger vessels or direct services. However, vessel operators face difficulties in fulfilling the minimum volume (TEUs) on their direct service (big vessel). Collecting cargo (containers) from surrounding ports also faces several obstacles. One of the obstacles was trainway connectivity, as they were connected to Surabaya port, but not to Jakarta port. Another issue is that shipping lines cannot optimize the use of their vessels to collect containers from Semarang and Surabaya going to Jakarta because of the cabotage principal. This study is expected to serve as a reference for stakeholders in developing their business strategies and for the government in future regulatory formulation and implementation.