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Estimating the Benefit of Document-Handling Process Improvement for Seaport Reliability: The Case of Indonesia

Author

Listed:
  • Yusuf Sofiyandi

    () (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia)

  • Muhammad Halley Yudhistira

    () (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia)

Abstract

Low level of seaport reliability is one of the crucial problems amidst the increasing trend of seaborne trade in Indonesia. Main seaports in Indonesia are suffering because of longer dwelling time relative to other international seaports in South East Asian countries partly due to poor administrative process. This paper examines the Indonesian sea transport market focusing on measuring the benefit of seaport service reliability improvement in terms of handling the seaborne trade documents. Using open-ended question of contingent valuation method, our estimates show a moderate benefit, a cost reduction of the administrative process ranging from US$10.8–90.3 per TEU for each day. The cost reduction is even higher for the subsample of importing firms, indicating that the improvement of document-handling plays a more crucial role in accelerating the import activities in Indonesia.

Suggested Citation

  • Yusuf Sofiyandi & Muhammad Halley Yudhistira, 2018. "Estimating the Benefit of Document-Handling Process Improvement for Seaport Reliability: The Case of Indonesia," LPEM FEBUI Working Papers 201816, LPEM, Faculty of Economics and Business, University of Indonesia, revised Jan 2018.
  • Handle: RePEc:lpe:wpaper:201816
    as

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    File URL: http://www.lpem.org/repec/lpe/papers/WP201816.pdf
    File Function: First version, 2018
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    References listed on IDEAS

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    More about this item

    Keywords

    Seaborne Trade — Seaport Reliability — Document-Handling Process — Cost Saving — Indonesia;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • P25 - Economic Systems - - Socialist Systems and Transition Economies - - - Urban, Rural, and Regional Economics
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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