A cross-institutional research collaboration involving Universitas Indonesia, the University of the Philippines, and the University of the South Pacific has published the first systematic comparison of last-mile delivery innovations across three archipelagic nations. The study, appearing in the Journal of Transport Geography, evaluates five delivery modalities—conventional courier, maritime freight consolidation, community logistics hubs, drone delivery, and autonomous surface vessels—against criteria of cost, speed, reliability, and scalability.
The findings paint a nuanced picture. Drone delivery scored highest on speed and reliability for payloads under five kilograms, matching results from trials in Rwanda and Ghana. However, the study found that Indonesia's more restrictive drone regulations, which require visual line-of-sight operation and prohibit flights over densely populated areas, effectively limit drones to inter-island routes between sparsely populated locations. The Philippines' more permissive regulatory environment has enabled drone delivery services to operate between Manila and several nearby islands since 2025.
Community logistics hubs emerged as the most cost-effective and scalable solution across all three countries. The model—in which a centralized facility in a regional town serves as a consolidation point for multiple villages, with local entrepreneurs handling the final delivery leg—achieved cost reductions of 40 to 55 percent compared to door-to-door courier services. In Indonesia, pilot programs in the Riau Islands and North Maluku have demonstrated the model's viability, though sustainable funding models beyond the pilot phase remain an open question.
The study's policy recommendations are pointed: governments should prioritize community logistics hub development in their infrastructure plans, harmonize drone regulations to enable cross-border learning, and create special logistics zones with simplified customs procedures for small-package inter-island trade. The researchers estimate that implementing these recommendations could reduce last-mile logistics costs in remote island communities by 35 percent within five years, with disproportionate benefits for smallholder farmers and artisanal fishers who are currently excluded from formal supply chains.
Prof. Andi Wijaya
Research Fellow, Maritime Logistics
Professor Wijaya leads the Logistics and Supply Chain Research Center at Universitas Gadjah Mada, specializing in sustainable maritime transport systems.
