Optimizing Indonesia's Maritime Logistics Infrastructure for Sustainability

A team of researchers from the National Research and Innovation Agency has conducted a study to improve the efficiency and sustainability of Indonesia's maritime logistics infrastructure. The team introduced a hub-and-spoke model integrated with Milk Run Time Windows (MRTW) to enhance cost efficiency and optimize subsidy expenditures. The study found that the proposed model significantly reduces total operational costs by 16-43% and decreases government subsidy expenditures by 10-25% per round voyage. The researchers also recommend transitioning from an annual subsidy framework to a voyage-based allocation system, which offers increased fiscal flexibility and responsiveness to dynamic operational conditions.

Key Takeaways:

• The hub-and-spoke model integrated with MRTW reduces total operational costs by 16-43% and decreases government subsidy expenditures by 10-25% per round voyage.
• The proposed model enhances vessel utilization, minimizes empty return trips, and improves overall network efficiency.
• Cargo consolidation at hub ports is a key factor in achieving these cost savings.
• Transitioning from an annual subsidy framework to a voyage-based allocation system offers increased fiscal flexibility and responsiveness to dynamic operational conditions.
• The study informs policy recommendations on subsidy restructuring, port infrastructure development, and the integration of real-time data analytics to enhance maritime transport operations.
• The research team used a deterministic optimization approach with Genetic Algorithm (GA) techniques to formulate optimal shipping routes and strategically position hub ports.
• The study's findings are applicable within Indonesia's maritime logistics framework, particularly in the East Nusa Tenggara Province.

Statistics:

• 16-43% reduction in total operational costs
• 10-25% decrease in government subsidy expenditures per round voyage
• 100% applicability of the proposed model within Indonesia's maritime logistics framework
• 9():100602 as the journal article's volume and article number
• 2025 as the publication year
• Figuring percentages (16-43%, 10-25%) reflect scenarios for cost savings and subsidy expenditure reduction

Sources:

• "Hub-and-spoke network design to optimize government subsidy costs for maritime transportation in Indonesia." Sustainable Futures, 2025,9():100602.
• Windra Priatna Humang, Research Center for Transportation Technology, National Research and Innovation Agency, South Tangerang, 15314, Indonesia.
• National Research and Innovation Agency
• Ecology, Environment & Conservation news reporters