The Impact of the Trans-Sumatran Highway Development on Logistic Cost Efficiency

Reslyana Dwitasari, Yandra Rahadian Perdana, Yessi Gusleni, Zusnita Meyrawati


The development of transport infrastructures of the Trans-Sumatran Highway is the policy of the Indonesian government to boost the economic growth. However, on the other hand, this idea needs to be proven since Indonesia has unique regional characteristics in terms of natural, social, and cultural conditions that bring impacts on congestion, low levels of travel security, and illegal costs or surcharges. This problem triggers inefficient logistics activities which can be seen from the high costs of shipping, transportation, and administrative. Therefore, this paper aims to examine the impact of the Trans-Sumatran Highway construction on logistics cost. The result of this study indicates that there are several benefits obtained from the toll road development. For the manufacturers, they may get a faster shipping process so that inventory turnover is getting higher. High inventory turnover can make inventory costs lower. While for the transporters, faster travel times and smooth toll road conditions can reduce the costs of vehicle maintenance and fuel. In addition, the toll road is able to eliminate the surcharges that previously often arise on trips between Lampung and Palembang. This paper argues that the Trans-Sumatra Highway can enhance the transportation and logistics activities.


Highway; Transportation; Logistics Cost

Full Text:



P. Hayaloglu, “The Impact of Developments in the Logistics Sector on Economic Growth: The Case of OECD Countries,” Int. J. Econ. Financ. Issues, vol. 5, no. 2, pp. 523–530, 2015.

X. Liu, “The impact of logistics costs on the economic development: The case of Thailand,” Bus. Public Adm. Stud., vol. 10, no. 1, pp. 37–42, 2016.

K. Sharipbekova and Z. Raimbekov, “Influence of logistics efficiency on economic growth of the CIS countries,” Eur. Res. Stud. J., vol. 21, no. 2, pp. 678–690, 2018.

R. Beysenbaev and Y. Dus, “Proposals for improving the Logistics Performance Index,” Asian J. Shipp. Logist., vol. 36, no. 1, pp. 34–42, 2020.

B. Erkan, “The Importance and Determinants of Logistics Performance of Selected Countries,” J. Emerg. Issues Econ. Financ. Bank., vol. 3, no. 6, 2014.

A. Gani, “The Logistics Performance Effect in International Trade,” Asian J. Shipp. Logist., vol. 33, no. 4, pp. 279–288, 2017.

Z. H. Munim and H.-J. Schramm, “The impacts of port infrastructure and logistics performance on economic growth: the mediating role of seaborne trade,” J. Shipp. Trade, vol. 3, no. 1, p. 1, 2018.

J.- Rodrigue, The Geography of Transport Systems, 4th ed. 2017.

A. Banerjee, E. Duflo, and N. Qian, “On the road: Access to transportation infrastructure and economic growth in China,” J. Dev. Econ., vol. 145, 2020.

C. Ferrari, A. Bottasso, M. Conti, and A. Tei, “The Economics of Transport Infrastructure,” Econ. Role Transp. Infrastruct., pp. 5–38, 2019.

Y. R. Perdana, W. S. Ciptono, and S. Kusdhianto, “Broad span of supply chain integration: theory development,” Int. J. Retail & Distrib. Manag., vol. 47, no. 2, pp. 186–201, 2019.

K. Kogan and C. S. Tapiero, “Investment and Supply Chain Infrastructure,” in IFAC Proceedings Volumes, 2006.

J. Wessel, “Evaluating the transport-mode-specific trade effects of different transport infrastructure types,” Transp. Policy, vol. 78, pp. 42–57, 2019.

J. T. Mentzer and T. M. McCarthy‐Byrne, “Integrating supply chain infrastructure and process to create joint value,” Int. J. Phys. Distrib. Logist. Manag., vol. 41, no. 2, pp. 135–161, 2011.

J. Arnold, “The Role of Transport Infrastructure, Logistics, and Trade Facilitation in Asian Trade BT - Pan-Asian Integration: Linking East and South Asia.”

J. Gonzalez, J. Guasch, and T. Serebrisky, “Improving logistics costs for transportation and trade facilitation,” 2008.



  • There are currently no refbacks.

View my Stat: Click Here

Creative Commons License
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.