As the world’s largest archipelagic nation, Indonesia faces unique logistical challenges in distributing goods across its thousands of islands — particularly to the remote and scattered regions of Eastern Indonesia. When it comes to distribution strategies, two primary models dominate the conversation: the Hub & Spoke system and Direct Shipping. But which model is more effective for reaching remote areas in the east?
1. The Hub & Spoke System
This model concentrates cargo at major seaports (hubs) before distributing it to smaller, regional ports (spokes) using feeder vessels. Ports such as Tanjung Perak (Surabaya) and Makassar have long served as critical logistics hubs linking the national supply chain to Eastern Indonesia.
Advantages:
2. Direct Shipping
In this model, goods are shipped directly from the origin port to the final destination without transshipment. This is typically used for large-volume or time-sensitive shipments going to destinations with active ports.
Advantages:
Regions such as Maluku, NTT (East Nusa Tenggara), and Papua face complex geographical and infrastructural constraints:
In these cases, Direct Shipping can be inefficient and costly due to low cargo volumes and minimal backhaul potential. Meanwhile, the Hub & Spoke model allows for cargo consolidation at larger ports, making it more economical and operationally feasible.
As one of the major players in Indonesia’s domestic shipping industry, PT SPIL has effectively utilized the Hub & Spoke model.
SPIL operates regular routes from major hubs such as Tanjung Perak (Surabaya) and Makassar, reaching remote ports like:
By integrating digital solutions like mySPIL, customers can easily track and manage shipments, even when destined for remote areas.
PT SPIL also deploys feeder vessels that connect major hubs with smaller spokes, allowing cargo to move regularly without the need for full container loads, ensuring continuity and accessibility in underserved areas.
The answer is: it depends on the context.
However, given the unique challenges of Eastern Indonesia’s geography and economy, a hybrid strategy that blends both models — much like the one implemented by PT SPIL — is often the most effective approach.
Distribution effectiveness isn’t solely about speed. It’s also about consistency, cost-efficiency, and reliability. By leveraging key hub ports like Tanjung Perak and Makassar, and strengthening feeder services to remote areas, Indonesia’s logistics industry can extend its reach further across the archipelago — ensuring no island is left behind.
