Competitive Advantage Strategy of Port Enterprise in Indonesia

Abstract

Abstract In general, ports in Indonesia do not have sound capabilities to face competition with foreign ports. For example, Pelindo III is the largest port company in Indonesia that controls the logistics distribution area of Eastern Indonesia and also faces global port competition. This study explores the competitive advantages of ports in Indonesia through a case study on Pelindo III. The present study focused on desk research and was explored through interviews. The five forces competition model analysis found that Pelindo III has very high competitiveness in domestic environments. Still, this competitiveness tends to be biased because Pelindo III stands behind its strength as the leading authority for managing port services in Indonesia as a state-owned enterprise. In global port competition, Pelindo III has a weakness in providing bargaining power to users in import activities. The global ports’ competitive advantages can be achieved if each port’s privatization and cargo sovereignty prerequisites are met.