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The potency and prospect of sea connectivity between Indonesia – The Philippines: case study of the revitalization of sea connectivity between Bitung (North Sulawesi) and Davao City (Mindanao)
Maritime transport is crucial to the economic growth and welfare of Indonesia and the Philippines. Efficient and competitive shipping services between the two countries will play an important role in assisting to realize the commitment of both governments to increase the relations, especially in the field of trade between Indonesia and the Philippines since the Philippines is one of the major partners of trade for Indonesia.
To improve economic and trade relations between Indonesia and the Philippines, especially between North Sulawesi (Indonesia) and Davao City (the Philippines), both sides realized one of their collaborations by inaugurating the Bitung-Davao City shipping route. It is expected that this inauguration could advance sub-regional trade and tourism as well as increase connectivity, not only between Indonesia and the Philippines but also between ASEAN member countries. The planning before the inauguration of the RO-RO ship was not mature so the shipping or trade relations between the two countries using the Bitung-Davao City route did not go as expected. Even though there are still challenges to following up the Bitung-Davao City shipping route, there is a need to revitalize sea connectivity between North Sulawesi and Davao City.
Based on the analysis, this paper suggests that Indonesia should revitalize the Bitung-Davao City shipping route to strengthen its economic relations with the Philippines. To analyze the strategy for revitalizing the sea connectivity between Bitung and Davao City, I utilize the scenario planning with 2 (two) factors as critical uncertainty: the lack of load cargo and the transportation cost.
For the scenarios presented, there are several policy options are put forward. In general, the policy requires the Ministry of Foreign Affairs, in collaboration with relevant Ministries, Institutions, the Indonesian Representative Office in the Philippines, the local government, and other concerned stakeholders should conduct efforts to revitalize the Bitung-Davao City sea connectivity.
| 2022-0089 | Sesparlu 71-2022 | Training Materials Repository | Tersedia |
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