Port Governance Structures and Business Model Innovation: Pathways to Economic and Environmental Sustainability in Indonesian Maritime Hubs

Abstract

This research examines governance structures and business model innovations enabling Indonesian ports—including Tanjung Priok, Semarang, and Surabaya—to balance economic viability with environmental sustainability while operating effectively within global supply chains. Through focus group discussions with two veteran shipping officers, four senior maritime lecturers, and analysis of port governance case studies, this study investigates how port operational decisions affect shipping costs, environmental footprints, and maritime employment opportunities. The research identifies feasible business model innovations for mid-sized Indonesian ports, including digital port services and green port certifications, examining their competitive viability and implementation requirements. Findings reveal that economic sustainability and environmental responsibility represent interconnected rather than competing objectives when governance structures align stakeholder incentives and facilitate technology adoption. The study demonstrates that port governance effectiveness depends not on centralized control but on coordinating diverse stakeholders—shipping operators, terminal operators, port authorities, and regulatory bodies—toward shared objectives. Research results provide port management cadets with strategic frameworks for understanding port operations beyond technical logistics, positioning maritime education as preparation for informed participation in port governance systems. The study contributes evidence-based guidance for Indonesian port authorities seeking to enhance competitiveness while advancing sustainability objectives aligned with IMO and regional maritime governance goals.

Keywords :  port governance; business model innovation; Indonesian ports; supply chain sustainability; green port certification; maritime logistics; cadet education