Sustainability in Maritime Logistics: A Framework for Indonesian Shipping

New research from Universitas Gadjah Mada proposes a comprehensive sustainability framework for Indonesia's maritime logistics sector, addressing the environmental impact of the world's largest archipelagic shipping network while maintaining economic viability.

Prof. Andi WijayaBy Prof. Andi Wijaya
Jun 17, 20268 min read
Container ship on calm ocean waters at sunset
Photo

A landmark study published by the Logistics and Supply Chain Research Center at Universitas Gadjah Mada has proposed the first comprehensive sustainability framework tailored to Indonesia's unique maritime logistics context. The framework addresses the tension between environmental stewardship and the economic imperative of maintaining affordable shipping across an archipelago of over 17,000 islands, where sea transport is not a choice but a necessity for national cohesion.

The research identifies three pillars that must be addressed simultaneously: fleet modernization to reduce emissions, port electrification to eliminate diesel generator dependency at berth, and route optimization algorithms that balance fuel consumption against delivery speed. The study's modeling shows that implementing all three pillars could reduce the sector's carbon footprint by 31 percent by 2030 without increasing average shipping costs by more than 4 percent—a figure the researchers argue could be offset by fuel savings within five years.

A particularly novel contribution of the framework is its treatment of the informal shipping sector, which accounts for an estimated 40 percent of inter-island cargo movement in eastern Indonesia. Rather than excluding these operators—many of whom use aging wooden vessels with poor fuel efficiency—the framework proposes a tiered compliance pathway with government-backed financing for gradual fleet upgrades. The researchers conducted field studies in Maluku and North Sulawesi, documenting the operational patterns and constraints of traditional shipping networks that larger formal carriers have been unable to serve profitably.

The study has attracted attention from international development agencies, with the Asian Development Bank expressing interest in funding a pilot implementation across the Makassar Strait trade corridor. If successful, the pilot could serve as a model for other archipelagic nations facing similar logistics-sustainability challenges, including the Philippines, Pacific Island states, and Caribbean nations.

Prof. Andi Wijaya

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.

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