Political economic capacity traps on the development of Indonesia's international hub ports

Abstract

Investment in seaport development is crucial to support economic growth, especially in the countries experiencing under-investment infrastructure problems. Political economic traps exist in Indonesia to develop its international hub ports (IHPs). Solid and continuous political will and business–government collaboration to develop integrated IHPs are still in question under the traps of imbalance cargoes, inadequate infrastructure facilities, and lack of proper industrial zones. The country also faces a development dilemma as a seaport is a sensitive national security and sovereignty issue and causes the pressures for the national government to reluctantly deliver the projects to private sectors even though the country has been under-investment in the maritime sector.