Overview

As one of the world’s largest archipelagic countries with 17,000 islands and 108,000 kilometers of coastline, Indonesia is heavily reliant on sea freight for its import activities.^[1] Data provided by the Central Bureau of Statistics (Badan Pusat Statistik/BPS) reveals that during 2021 alone, around 88.05% of Indonesia’s imported goods arrived by sea and had a total combined value of US$172,73 billion.^[2]

In addition to the country’s long coastlines and favorable geography, sea freight is also a preferred mode of transportation due to the fact that it offers the most cost-effective method available for shipping large quantities of goods over long distances. In addition, sea freight can handle a wide variety of goods, including bulky, heavy and hazardous items that may be impractical or too expensive to transport via the use of other methods.^[3]......