Article Sidebar

Download
Download PDF

Main Article Content

Abstract

Maritime infrastructure development plays a strategic role in strengthening the national economy, especially in an archipelagic country like Indonesia. This article explores the relationship between investment in maritime infrastructure, such as ports, shipping lanes and logistics facilities, and national economic growth. Through secondary data analysis and case studies of major ports in Indonesia, the research finds that improvements in port capacity and efficiency contribute significantly to increased trade volumes, logistics efficiency, and international competitiveness. Adequate maritime infrastructure is able to reduce logistics costs, speed up delivery times, and improve inter-island connectivity, thereby supporting regional and national economic growth. In addition, this article also discusses the challenges faced in developing maritime infrastructure, including issues of financing, regulation, and environmental impacts. Sustainable financing and private sector involvement through public-private partnership schemes are considered crucial in accelerating infrastructure development. Clear and consistent regulations are also needed to create a conducive investment climate. On the other hand, the environmental impacts of port and shipping line development must be well managed to ensure long-term sustainability. The results show that planned and integrated maritime infrastructure development can drive sustainable economic growth, create jobs and improve people's welfare. Policy recommendations include increased co-operation between the public and private sectors, as well as the adoption of new technologies to improve operational efficiency. Thus, maritime infrastructure development not only improves national logistics performance but also contributes to stability and sustainable economic growth.

Keywords

Infrastructure, economy, ports, logistics, investment, international competitiveness

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Sibali, A., & Jainuddin, J. (2024). Maritime Infrastructure Development and its Impact on National Economic Growth. Economics and Digital Business Review, 5(2), 911–920. https://doi.org/10.37531/ecotal.v5i2.1292
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Amelia, P., Lathifah, A., & Astawa Yasa, I. N. (2022). Analysis of the impact of maritime sector development in supporting Indonesian Navy Ship operations. Procedia Computer Science, 197, 317–325. https://doi.org/https://doi.org/10.1016/j.procs.2021.12.146
  2. Amin, C., Mulyati, H., Anggraini, E., & Kusumastanto, T. (2021). Impact of maritime logistics on archipelagic economic development in eastern Indonesia. The Asian Journal of Shipping and Logistics, 37(2), 157–164. https://doi.org/https://doi.org/10.1016/j.ajsl.2021.01.004
  3. Gamage, R. N. (2016). Blue economy in Southeast Asia: Oceans as the new frontier of economic development. Maritime Affairs: Journal of the National Maritime Foundation of India, 12(2), 1–15. https://doi.org/10.1080/09733159.2016.1244361
  4. Gede Wahyu Wicaksana, I. (2021). Economic nationalism for political legitimacy in Indonesia. Journal of International Relations and Development, 24(1), 27–50. https://doi.org/10.1057/s41268-019-00182-8
  5. Jansen, M., van Tulder, R., & Afrianto, R. (2018). Exploring the conditions for inclusive port development: the case of Indonesia. Maritime Policy & Management, 45(7), 924–943. https://doi.org/10.1080/03088839.2018.1472824
  6. Karimah, I. D., & Yudhistira, M. H. (2020). Does small-scale port investment affect local economic activity? Evidence from small-port development in Indonesia. Economics of Transportation, 23, 100180. https://doi.org/https://doi.org/10.1016/j.ecotra.2020.100180
  7. Kurniawan, R., & Managi, S. (2018). Economic Growth and Sustainable Development in Indonesia: An Assessment. Bulletin of Indonesian Economic Studies, 54(3), 339–361. https://doi.org/10.1080/00074918.2018.1450962
  8. Lescar, S. (1999). Indonesia: the largest archipelago in the world. Medecine Tropicale: Revue Du Corps de Sante Colonial, 59(3), 229–232.
  9. Li, W., Bai, X., Yang, D., & Hou, Y. (2023). Maritime connectivity, transport infrastructure expansion and economic growth: A global perspective. Transportation Research Part A: Policy and Practice, 170, 103609. https://doi.org/https://doi.org/10.1016/j.tra.2023.103609
  10. McCawley, P. (2015). Infrastructure Policy in Indonesia, 1965–2015: A Survey. Bulletin of Indonesian Economic Studies, 51(2), 263–285. https://doi.org/10.1080/00074918.2015.1061916
  11. Munim, Z. H., & Schramm, H.-J. (2018). The impacts of port infrastructure and logistics performance on economic growth: the mediating role of seaborne trade. Journal of Shipping and Trade, 3(1), 1. https://doi.org/10.1186/s41072-018-0027-0
  12. Mursitama, T. N., & Ying, Y. (2021). Indonesia’s Perception and Strategy toward China’s OBOR Expansion: Hedging with Balancing. The Chinese Economy, 54(1), 35–47. https://doi.org/10.1080/10971475.2020.1809816
  13. Park, J. S., Seo, Y.-J., & Ha, M.-H. (2019). The role of maritime, land, and air transportation in economic growth: Panel evidence from OECD and non-OECD countries. Research in Transportation Economics, 78, 100765. https://doi.org/https://doi.org/10.1016/j.retrec.2019.100765
  14. Prayoga, P. (2022). The Indonesian Political-Economy: Maritime Development in Fisheries and Commerce. In Khanisa & F. Farhana (Eds.), ASEAN Maritime Security: The Global Maritime Fulcrum in the Indo-Pacific (pp. 43–63). Springer Nature Singapore. https://doi.org/10.1007/978-981-19-2362-3_4
  15. Resosudarmo, B. P., & Abdurohman. (2018). Is Being Stuck with a Five Percent Growth Rate a New Normal for Indonesia? Bulletin of Indonesian Economic Studies, 54(2), 141–164. https://doi.org/10.1080/00074918.2018.1521776
  16. Rochwulaningsih, Y., Sulistiyono, S. T., Masruroh, N. N., & Maulany, N. N. (2019). Marine policy basis of Indonesia as a maritime state: The importance of integrated economy. Marine Policy, 108, 103602. https://doi.org/https://doi.org/10.1016/j.marpol.2019.103602
  17. Sandee, H. (2016). Improving Connectivity in Indonesia: The Challenges of Better Infrastructure, Better Regulations, and Better Coordination. Asian Economic Policy Review, 11(2), 222–238. https://doi.org/https://doi.org/10.1111/aepr.12138
  18. Song, L., & van Geenhuizen, M. (2014). Port infrastructure investment and regional economic growth in China: Panel evidence in port regions and provinces. Transport Policy, 36, 173–183. https://doi.org/https://doi.org/10.1016/j.tranpol.2014.08.003
  19. Talib, N. L., Utomo, A., Barnett, J., & Adhuri, D. S. (2022). Three centuries of marine governance in Indonesia: Path dependence impedes sustainability. Marine Policy, 143, 105171. https://doi.org/https://doi.org/10.1016/j.marpol.2022.105171
  20. Tu, N., Adiputranto, D., Fu, X., & Li, Z.-C. (2018). Shipping network design in a growth market: The case of Indonesia. Transportation Research Part E: Logistics and Transportation Review, 117, 108–125. https://doi.org/https://doi.org/10.1016/j.tre.2017.10.001
  21. Wang, C., Kim, Y.-S., & Kim, C. Y. (2021). Causality between logistics infrastructure and economic development in China. Transport Policy, 100, 49–58. https://doi.org/https://doi.org/10.1016/j.tranpol.2020.10.005
  22. Wicaksana, I. G. W. (2017). Indonesia’s maritime connectivity development: domestic and international challenges. Asian Journal of Political Science, 25(2), 212–233. https://doi.org/10.1080/02185377.2017.1339618
  23. Yudhistira, M. H., Karimah, I. D., & Maghfira, N. R. (2022). The effect of port development on coastal water quality: Evidence of eutrophication states in Indonesia. Ecological Economics, 196, 107415. https://doi.org/https://doi.org/10.1016/j.ecolecon.2022.107415
  24. Yudhistira, M. H., & Sofiyandi, Y. (2018). Seaport status, port access, and regional economic development in Indonesia. Maritime Economics & Logistics, 20(4), 549–568. https://doi.org/10.1057/s41278-017-0089-1