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Jokowi's Sea Toll: A Decade of Connecting Indonesia and Reducing Price Disparities

Hendro D Situmorang
October 17, 2024 | 8:33 pm
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Transportation Minister Budi Karya Sumadi speaks at the discussion
Transportation Minister Budi Karya Sumadi speaks at the discussion "10 Years Connecting Indonesia for Equity and Justice" in Jakarta on September 30, 2024. (Beritasatu.com/Hendro Situmorang)

Jakarta. The Sea Toll program, initiated by President Joko "Jokowi" Widodo at the start of his administration, plays a crucial role in connecting the outermost, leading, underdeveloped, and border regions with key economic centers in Indonesia, primarily located in the western part of the country.

The program improves maritime logistics by establishing sea routes and increasing the number of vessels for efficient goods transport. It has expanded to connect numerous ports across the archipelago.

Transportation Minister Budi Karya Sumadi highlighted that a primary objective of this initiative is to reduce price disparities across regions, especially in eastern Indonesia, which has historically faced significant price differences compared to the west.

“With the Sea Toll program, the prices of basic goods can drop by up to 30 percent, particularly in remote areas. This will help lower inflation and enhance community welfare,” he stated during a discussion titled “10 Years Connecting Indonesia for Equity and Justice” in Jakarta not long ago.

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Significant advancements in connectivity have resulted from this initiative. The Sea Toll currently links 115 ports with 39 active routes, facilitating faster distribution of goods to previously inaccessible areas.

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According to Budi, the program promotes equitable distribution of goods in isolated regions. For instance, communities in Papua and Maluku, which once struggled to obtain essential items, can now access products at more stable and affordable prices.

“In Merauke, for example, it was previously just a stopping point for the Sea Toll. Now, it has evolved into a rice producer serving almost all of Papua, and we aim to replicate this model at other stopping points,” he explained.

The Sea Toll also significantly supports the growth of small and medium enterprises (SMEs) in these regions. Products such as fish from Maluku, seaweed from Nusa Tenggara, and rice from Merauke can now be distributed more effectively throughout Indonesia.

Additionally, the program has been pivotal in fostering economic development in 3TP areas. Regions like East Nusa Tenggara and Papua, despite being among the poorest, have benefited from new economic opportunities.

“For instance, Kupang has developed small industries due to improved access to distribution provided by the Sea Toll program. This is a vital initial step toward reducing development gaps between regions,” Budi noted.

With achievements over the past decade, the Sea Toll program is expected to continue expanding. The government plans to introduce new routes and enhance national logistics integration through this initiative.

“We aim to increase routes by 10-25 percent in the coming years, particularly in areas that remain underdeveloped,” he concluded.

Through ongoing development, the Sea Toll program aspires to create a more balanced economic chain between western and eastern Indonesia. This initiative demonstrates that with thorough planning, strong support from the central government, and local government initiatives, previously underdeveloped regions can become productive contributors to national economic stability.

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