Minister of Transportation Budi Karya Sumadi is working on the concept of a main port (Hub) and a feeder port (Spoke) in order to strengthen international logistics routes. The concept of Hub and Spoke is a network pattern that utilizes collecting ports. The Hub and Spoke concept creates a port network that can become an alternative in the marine logistics sector "When we talk about strengthening international logistics routes, we try the concept of Hub and Spoke. So how to position Jakarta more centrally than before, so that goods originating from all parts of Indonesia are concentrated in Jakarta or Surabaya, thus as Spoke supports the Hub, namely Jakarta, Patimban Port or Surabaya," said Budi Karya in an online seminar in Jakarta, Tuesday (11/23).

Thus, continued the Minister of Transportation, the large number of goods can be directly sent to export destination countries. The Hub concept in this transportation sector is by building the Patimban Port. Indonesia has Patimban Port which is close to Kertajati Airport and there is also a new golden triangle area, where goods in West Java are concentrated at Patimban Port. Meanwhile, Bekasi and Tangerang can be concentrated at Tanjung Priok Port, Jakarta. "This certainly makes it more efficient, and we hope that the construction of the port can increase GDP, absorb labor and also make collaborative efforts between Tanjung Priok Port and Patimban Port better," said the Minister of Transportation. The hub and spoke concept is in line with the desire of SOE Minister Erick Thohir to make ports in Indonesia a super hub in Southeast Asia that goes to Europe and other regions after the merger of Pelindo. "Since the unification of Pelindo, the Ministry of SOEs has assigned five targets for the development of the national port industry, namely, of course, how to increase our global competitiveness. We don't want to be a hub but we want to become a super hub in Southeast Asia that goes to Europe and other regions. We are rich in natural resources and our market," said Erick Thohir in an online seminar in Jakarta, Tuesday (23/11).

The Minister of State-Owned Enterprises also added that the next target is to increase operational efficiency, whether it is later called clean management by reducing expensive costs and eliminating corruption. "I believe that the new Pelindo directors and commissioners have that commitment," he said. The third target is to continue to increase synergy with various parties. Synergize port development in the national transportation system and national logistics system. Then the fourth target is capacity building, to meet needs and support economic growth and development. Next is the development of human resources, developing the capacity of human resources in the port industry. "The integration of Pelindo is carried out so that the effectiveness of the sea highway goes according to plan, while at the same time overcoming various obstacles, especially high logistics costs," said Erick Thohir. As is known, the ability to overcome logistics costs is very influential and increases Indonesia's competitiveness as a country. Logistics costs in Indonesia are still expensive, namely 23 percent of GDP, still high when compared to other countries such as Singapore which can reduce logistics costs by 8 percent or India and Malaysia 13 percent then why can't Indonesia. "Of course, the merger of Pelindo is expected to help with the efficiency of logistics costs," said the Minister of SOEs.

Sources: https://www.republika.co.id/berita/r30xux383/indonesia-perkuat-jalur-logistik-lewat-konsep-hub-spoke