Indonesian Political, Business & Finance News

MTI pushes for performance-based transformation of international ports

| Source: ANTARA_ID Translated from Indonesian | Infrastructure
MTI pushes for performance-based transformation of international ports
Image: ANTARA_ID

Baubau, Southeast Sulawesi (ANTARA) - The Indonesian Transport Community (MTI) is pushing for the transformation of international ports from an administrative status-based approach to a function and performance-based approach to strengthen trade connectivity, increase logistics efficiency, and boost national export competitiveness.

“Indonesia needs to transform the management of international ports from an administrative status-based approach towards a function and performance-based approach,” said Robby Kurniawan, an Advisory Board member of the Indonesian Transport Community (MTI), in a statement released in Baubau, Southeast Sulawesi, on Thursday.

According to him, Indonesia holds a strategic position within global trade networks. However, the high number of ports holding international status does not automatically reflect the effectiveness of the national port system.

Robby, who is also a lecturer at the Sekolah Tinggi Ilmu Pelagayaran (STIP), noted that empirical data shows a gap between the number of ports with international status and their actual function and performance.

“Of the 144 ports with international status, as of 2025, only 73 ports, or 50.69 per cent, are recorded as actively conducting exports. Meanwhile, only 63 ports, or 43.75 per cent, are actively conducting imports,” Robby stated.

Furthermore, Indonesia’s international trade flows remain concentrated in a few major ports. This condition indicates a gap between administrative status, actual function, connectivity, and port performance.

Based on these findings, Robby stated that the results of focus group discussions (FGD) and research recommend the implementation of the Integrated International Port Effectiveness Model (IIPEM). This model is designed to view international ports not as standalone entities, but as part of an integrated national port network system based on function and performance.

“Through IIPEM, we will no longer merely ask how many international ports we have, but what function each port must perform, how effectively that function is carried out, and how it contributes to the national trade network,” he said.

Robby explained that IIPEM is built upon six strategic capabilities. First, Strategic Port Governance, which includes regulation, institutional frameworks, coordination, and performance-based governance. Second, Maritime Connectivity, covering direct calls, shipping networks, service frequency, and maritime corridor integration. Third, Hinterland & Economic Integration, involving the connection between ports and industrial zones, economic zones, multi-modal systems, and cargo bases.

Fourth, Operational Efficiency, encompassing productivity, utilisation, service time, costs, and operational reliability. Fifth, International Trade Facilitation, including CIQP (Customs, Immigration, Quarantine, and Port Health), single submission, risk management, and data integration. Sixth, Digital, Sustainable & Resilient Port, covering the implementation of smart ports, digitalisation, decarbonisation, and port resilience against climate change.

Robby also encouraged the implementation of a functional and network-based port hierarchy. Under this model, ports can be categorised into National Global Hub Ports, International Gateway Ports, International Specialised Ports, International Supporting Ports, and Domestic Feeder & Consolidation Ports.

He noted that this hierarchy should not be static. The position of each port needs to be evaluated periodically based on performance, connectivity, hinterland strength, cargo base, and its contribution to national trade.

“Indonesia does not simply need more ports with international status. What is needed is a port system that is appropriately functional, interconnected, efficient, and performance-based,” Robby emphasised.

He assessed that port effectiveness cannot be measured solely by berth productivity or dwelling time. A more important measure of success is the extent to which the port system can reduce logistics costs, strengthen direct connectivity, increase export competitiveness, reduce dependence on transshipment, and bolster Indonesia’s position in the global supply chain.

“The transformation is from administrative designation towards functional effectiveness; from individual ports towards an integrated network; and from an infrastructure orientation towards trade competitiveness,” he concluded.

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