Economy-wide Impact of a More Efficient Tanjung Priok Port
Indonesia's growth has long been constrained by sluggish infrastructure development. An often-cited example is Tanjung Priok port, which serves more than two-thirds of the country's international trade.
This paper has two objectives: First, to examine the causes of the increased dwell time and identify solutions. Second, to analyze economy-wide benefits of improved efficiency in Tanjung Priok using IndoTERM, a bottom-up and dynamic computable general equilibrium model of the Indonesian economy.
The findings of the analysis suggest that a 50% improvement in the Tanjung Priok's efficiency over the next five years will generate additional national growth of about 1.1%. Jakarta and its surroundings will benefit the most from this improvement, while other regions trading with Jakarta will also benefit.
About ADB Papers on Indonesia
The ADB Papers on Indonesia are designed to provide information, analysis, and advice on issues of interest to Indonesia's development stakeholders. The series is produced by sector experts and maintained by the ADB Indonesia Resident Mission.