Use of Physical Internet System to Increase Effectiveness of Sea Toll Logistics Operations in Indonesia

Sea Toll implementation provides opportunities to promote and improve welfare amongst the people of Indonesia, especially those living in the underdeveloped, remote, outer region, and the bordering areas. A study undertaken by the Ministry of Transportation in 2017 shows that Sea Toll faces challenges of low return cargo load factor of 9.5 percent. The low return cargo load factor in turn contributed to high operational cost of the Sea Toll. Physical Internet (PI) is as global logistics system based on the interconnection of logistics network by a standardized set of collaboration protocols, modular containers and smart interfaces for increased efficiency and sustainability. One of the objectives of invention of PI is to solve inefficiencies of logistics chains, including underutilized transports and distribution centers. A project exploiting PI, called Modulushca, has already been completed by the European Union (EU). Project outcomes include finalization of PI framework to enable interconnected FMCG logistics system, and identification of obstacles and success factors of a PI-enabled system. The purpose of this research is to propose high-level information technology architecture for implementation of PI in Indonesia with the objective of increasing effectiveness of Sea Toll logistics operations. The proposed architecture is modelled after that of EU's Modulushca and will exploit existing Indonesia's National e-Logistics Architecture, specifically the Indonesia National Logistics Ecosystem.