The Sea Toll Road (Tol Laut) is a government program involving several ministries/agencies (Ministry of Transportation, Ministry of Trade, Local Governments and ship operators) to achieve sea connectivity effectively through ships that sail routinely and scheduled from west to east Indonesia with the goal of increasing smooth distribution and reducing disparities prices in disadvantaged, remote, outermost, and border areas in order to improve the welfare of the community.
The indicators of the success of the sea highway can be seen from the availability of basic and other important goods so that they can reduce price disparities in the sea toll destination areas, the logistics connectivity of goods so that they can reach 3TP (Outermost, Foremost, Remote, and Border) area, as well as the availability of scheduled and regular ships to be able to transport essential goods and connecting sea, land and air transportation mode to Hinterland Area.
The 2021 sea highway program provides 32 vessels and 14 state vessels to serve 32 routes and stop at 106 ports throughout Indonesia with a budget of 523 Billion rupiahs. The government provides subsidies in the form of ship operations, subsidies for containers and cargo. Meanwhile, pioneering sea transportation routes in 2021 will reach 519 transit ports and serve 13% of western Indonesia, 38% of central Indonesia, and 49% of eastern Indonesia. Until early 2020, the Ministry of Transportation has built 295 new ships to support the marine highway program.
Land Logistics Infrastructure Issues
Problems with the condition of the road network infrastructure in Indonesia:
- Limited capacity of national (non-toll) roads across economies (Trans Java and Sumatera), only 10% of freight transport uses inter-city toll roads.
- Inadequate technical conditions and supported by low discipline of road users, neglecting Rumaja (road benefit room) and Rumija (street property) disturbances.
- Limited logistic terminals as nodes for loading and unloading goods, especially in dense urban areas.
This has an effect on the problems of road transportation-based freight transportation in Indonesia:
- Delivery of small volume goods is running partially, not yet consolidated and coordinated across operators, burdening road transportation space
- More cargo terminals for truck fleet parking functions, because the general cargo conditions are still LCL and very ineffective
- The role of toll roads shortens travel time but increases operational costs
- The field phenomenon shows that only 10% of freight transport moves to inter-city toll roads
- ODOL as an effort to maximize efficiency in terms of transporting goods without being balanced with the readiness of road infrastructure capacity in the regions
The government has compiled guidelines for road transportation-based freight rates listed in Minister Decree No. 60/2019 concerning the Implementation of Goods Transport by Motorized Vehicles on the Road. However, logistics costs are still expensive, indicating the weakness of intermodal transportation. The components of logistics costs include:
1. Shipping Document Administration Fee:
- Customs and Excises
- Tax
- Packing list
- Insurance and Security
2. Handling and Inventory Fees:
- Ship Services at the port (Anchoring, Mooring, Scouting and Tug)
- Wharfage
- Handling (container transfer)
- Loading and unloading
- Stockpiling and warehousing
- Haulage (lifting of containers to ships)
- Demurrage (delay in loading and unloading)
- Container Rental
- Repair Container
- Equipment Rental Services (Fork lift, Container Crane, Rubber Tyred Gantry)
3. Transportation Fee:
- BBM (producer - port - shipping - port - consumer)
- Ship Crew and Truck/Train drivers
- Ship and Truck/Rail operations
- Tariffs in and out of ports (land and sea)
Railway Logistics Infrastructure Issues
