Sustainability Assessment of the Tanjung Priok Port Cluster
Corresponding email: armand.omar@ui.ac.id
Published at : 21 Apr 2020
Volume : IJtech
Vol 11, No 2 (2020)
DOI : https://doi.org/10.14716/ijtech.v11i2.3894
Moeis, A.O., Desriani, F., Destyanto, A.R., Zagloel, T.Y., Hidayatno, A., Sutrisno, A., 2020. Sustainability Assessment of the Tanjung Priok Port Cluster. International Journal of Technology. Volume 11(2), pp. 353-363
| Armand Omar Moeis | Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Kampus UI Depok, Depok 16424, Indonesia |
| Fenny Desriani | Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Kampus UI Depok, Depok 16424, Indonesia |
| Arry Rahmawan Destyanto | Faculty of Technology, Policy, and Management, Delft University of Technology, 2626BX Delft, the Netherlands |
| Teuku Yuri Zagloel | Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Kampus UI Depok, Depok 16424, Indonesia |
| Akhmad Hidayatno | Department of Industrial Engineering, Faculty of Engineering, Universitas Indonesia, Kampus UI Depok, Depok 16424, Indonesia |
| Aziiz Sutrisno | School of Innovation Sciences, Eindhoven University of Technology, 5600 MB Eindhoven, the Netherlands |
A seaport attracts firms to it; such
firms are often complementary and find ways to interact with one another,
forming port clusters. The growth and decline of these clusters largely depend
on government policies. Large port clusters have more economic activity but are
also characterized by negative externalities, such as air pollution. This study
investigates the dynamics and sustainability of the Tanjung Priok port cluster.
System dynamics are used to examine the issue, and port cluster sustainability
is assessed by modeling the dynamics of the system over a 20-year timespan. The
growth of a port cluster has been found to positively influence the regional
economy and the level of employment while also damaging the environment. This
study investigates further the impact of an alternative port cluster
development program (namely a free trade policy) and shore power system (SPS)
program policies on the sustainability of a port cluster. The model indicates
that when a free trade policy and an SPS program are implemented in tandem to
maximize the economy and reduce environmental damage, they provide additional
benefits.
Economy of port city; Port cluster; Sustainable port; Shore power system; System dynamics
The largest port in Indonesia for cargo traffic is Tanjung
Priok, and its trend of growth is upward, especially for container cargo. This
port has attracted many firms to locate near it. The government of Indonesia
provides a special area as an option for these firms to do business, called the
Nusantara Bonded Zone (Kawasan Berikat Nusantara/KBN, Jakarta, Indonesia).
According to KBN, the state-owned enterprises that together administer the
zone, it is “a certain territory within the customs area of Indonesia which has
incentives specifically [for] the suspension of import duties and other state levies”
(KBN Persero, 2016). Together, these firms
form a so-called port cluster. De Langen (2003)
defined a cluster as “a population of geographically concentrated and mutually
related business units, associations and public (or private) organizations
centered around a distinctive economic specialization” (p. 10). Clusters that
form around seaports and are made up of firms that engage in port-related
activities are called port clusters (Haezendonck,
2001).
The firms in a port cluster contribute to the economy by giving
wages to their
We could
establish behavioral possibilities and progressive variable effects if we
consider a port cluster as a complex system consisting of many interrelated
actors, the understanding of which would involve many disciplines, such as
those focusing on ports, economics, trade, and the environment (Grösser, 2017). In this regard, a more holistic view is needed to provide a
better understanding of the underlying structure and causal relationships
between the elements influencing port cluster development. Such a holistic view
would provide better insights for policymakers to assess the impact of the
Tanjung Priok port cluster in terms of its economic and environmental
performance as well as its sustainability. Nevertheless, research addressing
this issue is insufficient.
This
study aims to investigate the dynamics and sustainability of the Tanjung Priok
port cluster as the basis for assessing the feasibility of existing policies in
improving the sustainability of this port cluster. This study uses the system
dynamics approach (Sterman, 2000; Hidayatno et al., 2015;
Yuliawati et al., 2015) incorporated with the policy analysis framework (Thissen and Walker, 2013) to model a port cluster system and analyze
how it affects the economy, society, and the environment. For this purpose, two
policies will be examined, namely the port cluster development program (free trade zone policy)
and the shore power system (SPS). These two policies are chosen for their
effectiveness in accelerating economic growth and significantly reducing air
pollution. In doing so, this study enriches the literature in maritime
logistics and sustainable development in a broader sense. In practice, this
research sets the stage for the application of a sustainability assessment
framework of a port cluster.
We
can conclude that by applying simple and straightforward programs such as the
SPS, the government/port regulator and other stakeholders could be benefited in
two ways. First, the establishment of the SPS will mitigate the current
emission level. Second, even if port activities are expanded (through the
implementation of a free trade zone policy), thus increasing emission levels,
the implementation of this policy combined with the SPS will allow the port to
increase economic activities while managing emission levels.
The research was funded by Universitas Indonesia under the Tugas Akhir
Doktor (TADOK) research grant (TADOK/122/FT/2018).
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