The Role of Port Performance and Logistics Efficiency in Regional Economic Competitiveness: Evidence from Indonesia

Authors

  • Adenanthera Lesmana Dewa Universitas Maritim AMNI, Semarang, Indonesia

DOI:

https://doi.org/10.63208/21013-894

Keywords:

Indonesia, Logistics Efficiency, Maritime Transport, Port Performance, Regional Economic Competitiveness

Abstract

Ports play a crucial role in maritime transportation by facilitating trade and supporting regional economic development. In Indonesia, an archipelagic country, port performance and logistics efficiency are important factors in ensuring effective goods distribution and strengthening regional economic competitiveness. This study aims to examine the individual and simultaneous effects of port performance and logistics efficiency on regional economic competitiveness in Indonesia. A quantitative approach was employed using secondary data from government statistical publications, port authority reports, and international logistics databases covering the 2018–2025 period. The data were analyzed using descriptive statistics and multiple linear regression. The results indicate that port performance has a positive and significant effect on regional economic competitiveness, with a regression coefficient of 0.462 and a significance value of 0.001. Logistics efficiency also demonstrates a positive and significant effect, with a coefficient of 0.398 and a significance value of 0.005. Furthermore, the model explains 59.1% of the variation in regional economic competitiveness, while the F-test confirms the joint significance of both independent variables. These findings highlight the importance of improving port operational productivity, reducing logistics costs, and strengthening supply chain reliability. The study concludes that port performance and logistics efficiency are important factors associated with regional economic competitiveness in Indonesia.

References

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/10.1016/j.ajsl.2021.01.004

Bagus, M. R. D., & Hanaoka, S. (2022). The central tendency of the seaport-fulcrum supply chain risk in Indonesia using a rough set. The Asian Journal of Shipping and Logistics, 38(4), 222-233. https://doi.org/10.1016/j.ajsl.2022.08.003

Dewa, A. L., Nugroho, S. B. M., Thohir, M., & Susilowati, I. (2018). Analysis of seaports efficiency in supporting inter-island transportation. Economic Journal of Emerging Markets, 53-60. https://doi.org/10.20885/ejem.vol10.iss1.art6

Grassia, M. G., Marino, M., Mazza, R., Misuraca, M., Zavarrone, E., & Friel, M. (2024). Regional Competitiveness: A Structural-Based Topic Analysis on Recent Literature: MG Grassia et al. Social Indicators Research, 173(1), 83-108. https://doi.org/10.1007/s11205-022-02951-4

Indriastiwi, F., Hadiwardoyo, S. P., & Nahry. (2021). Port connectivity model in the perspective of multimodal transport: a conceptual framework. In IOP Conference Series: Materials Science and Engineering, 1052(1), 012008). IOP Publishing. https://doi.org/10.1088/1757-899x/1052/1/012008

Li, N., Ma, T., & Deng, X. (2024). Analysis of the coupling degree between regional logistics efficiency and economic development coordination. Plos one, 19(1), e0293175. https://doi.org/10.1371/journal.pone.0293175

Liang, R., & Liu, Z. (2020). Port infrastructure connectivity, logistics performance and seaborne trade on economic growth: an empirical analysis on “21st-century maritime silk road”. Journal of Coastal Research, 106(SI), 319-324. https://doi.org/10.2112/si106-074.1

Al-Shboul, M. A. (2022). An investigation of transportation logistics strategy on manufacturing supply chain responsiveness in developing countries: The mediating role of delivery reliability and delivery speed. Heliyon, 8(11), e11283. https://doi.org/10.1016/j.heliyon.2022.e11283

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), 1-19. https://doi.org/10.1186/s41072-018-0027-0

UNCTAD, U. (2022). Review of Maritime Transport 2022. https://unctad.org/rmt2022 (2022-12-21). Available on https://unctad.org/rmt2022. Accessed May 5, 2025.

Wijaya, W. M., & Nakamura, Y. (2025). Port performance indicators construction based on the AIS-generated trajectory segmentation and classification. International journal of data science and analytics, 20(3), 2473-2492. https://doi.org/10.1007/s41060-024-00614-w

World Bank. (2023). Connecting to compete 2023 : Trade logistics in an uncertain global economy - the logistics performance index and its indicators. In World bank. Washington D.c.: World Bank Group. https://documents.worldbank.org/en/publication/documents-reports/documentdetail/099042123145531599. Accessed May 15, 2025.

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

Downloads

Published

2025-06-30

How to Cite

The Role of Port Performance and Logistics Efficiency in Regional Economic Competitiveness: Evidence from Indonesia. (2025). Finance Innovations Digest, 3(1), 64-75. https://doi.org/10.63208/21013-894

About this article

Check for updates
Submitted: Jan 12, 2025
Final Revised: May 10, 2025
Accepted: May 27, 2025
Published: Jun 30, 2025
Volumes:
Vol. 3 No. 1 (2025) Pages 64-75
DOI:
10.63208/21013-894
Abstract view: 2
Download: 3