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Sea toll road construction is one of the programs that was initiated by President Joko Widodo as an effort to cut logistics costs in the 3T (Outermost and Disadvantaged). Sea highway is not a toll road built on the sea, but a free shipping lane that is useful for connecting ports in Indonesia.
Jokowi's reason to link it with industrial estates in Indonesia, one of which is East Java Industrial Estate JIIPE, is that sea tolls can make a more significant contribution to the national economy. This is because sea transportation can only contribute 0.3% to the Indonesian economy, while land transportation can contribute up to 2.4%.
In connection with these efforts, East Java Industrial Estate JIIPE which already has an integrated port will feel a significant impact from efforts to connect the sea highway with the industrial estate.
So far, the port in East Java Industrial Estate JIIPEhas contributed greatly to cutting logistics costs for the factories in it. So, if the sea highway is connected to East Java Industrial Estate JIIPE, then the logistics costs will certainly be much lower.
