IDENTIFYING THE ROLE OF PORT INFRASTRUCTURE ON REGIONAL ECONOMICS

• Main Author: Hakim Ardiansyah, Iqbal
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/61925
• Institution: Institut Teknologi Bandung

Ports are considered a key infrastructure in supporting maritime trade and spreading development over an area. However, there has not been any research in Indonesia that explores the economic impact of port infrastructures comprehensively. This research aims to explore and identify the role of port infrastructure on the regional economy, both directly and indirectly. This research contextualizes the existing port infrastructure research framework used by researchers globally and in developed countries to Indonesia which is considered a maritime developing country. PLS-SEM method is used to identify and predict the strength of direct and indirect effects of port infrastructure on the regional economy. This research did not find any statistically significant relation between port infrastructure and the regional economy. However, there is a strong positive relation between maritime trade and the regional eocnomy and also a negative relation between port infrastructure and maritime trade. It can be concluded that in developing countries such as Indonesia, maritime trade plays a crucial role in suppoting the growth of the economy. It can also be concluded that there are a lot of factors outside the research parameters that affects the logistical performance, maritime trade, and regional economy in Indonesia.