IPB University Lecturer Proposes AI and Blockchain to Improve Port Logistics System in COVID-19 Period

The Center for Coastal and Ocean Resource Study (PKSPL) Research Institute and Community Service (LPPM) with the Tropical Marine Economic Study Program, Department of Resource and Environmental Economics, Faculty of Economics and Management (FEM) IPB University held a Webinar with the theme "Maritime Economics: Port Business The Challenge, How the Harbor Faces COVID-19, Now, Recovery and Beyond ", (5/20). This third webinar was held via the zoom application and was attended by hundreds of participants from various regions in Indonesia.

Present as keynote speaker Prof. Dr. Ir Tridoyo Kusumastanto MS, lecturer at IPB University, Professor of Maritime Economic Policy who is also the Chairperson of the Board of Trustees (MWA) of IPB University. In addition, there were three main speakers, namely Ir Kemal Heryandri Dipl HE, businessman in the field of porting, Ir Subagiyo MT, Director of Ports, Directorate General of Sea Transportation, Ministry of Transportation of the Republic of Indonesia, and Prof. Dr. Ir. Yandra Arkeman MEng, lecturer at IPB University, expert in artificial intelligence (AI) and Blockchain.

As it is known, COVID-19 has a wide impact on various aspects of life including port. Prof. Tridoyo conveyed the important role of maritime economics. Global economic growth is supported by world seaport trips because goods are transported from the sea. Trade changes that occur will have an impact on the world economy.  "The COVID 19 outbreak had a huge impact on the lives of the world economy and Indonesia, which caused the logistics system to be severely affected. There were six things that were affected at the port, namely the decrease in the number of ship calls, extra restricted ports, port delays and extra procedures, delay on transfers and transportation, increased demand the use of warehousing due to the absence of a flow of manufactured goods and facing a shortage of labor due to the Large Scale Social Restrictions (PSBB), "he said.

Large-scale Social Restrictions (PSBB) through Government Regulation (PP) No. 21 of 2020 and the policies on controlling people and goods have a direct impact on port activities. Restrictions on the operation of ports are permitted by provisions including reducing the concentration of the concentration of officers, implementing physical distancing.

According to Ir Subagiyo passenger transportation was the most severely affected. In addition COVID-19 also has an impact on the reduction in container traffic by 20 percent, general cargo traffic decreases by 10-20 percent, and decreases in the number of passengers by 15-50 percent. In accordance with the direction of the President of the Republic of Indonesia, logistical transportation is not limited, this is done for the transportation of essential and essential goods. "The solution is to control operating expenditure, debt restructuring, and accelerate the cooperation plan," he said.

Meanwhile Ir Kemal compared the impact of COVID-19 on shipping and port in the world and Indonesia. In the context of the world global trade, it fell 13-32 percent, while in Indonesia the performance of sea transportation fell by 15-20 percent, world GDP fell by 20-30 percent according to the world bank while Indonesian GDP dropped by 50 percent. World port activities are down 5-20 percent, in Indonesia gas and oil transportation activities are down 45 percent and minerals down 20 percent. He added that the pandemic was a challenge and opportunity for port activities. Uncertain supply and demand require smarter and more flexible planning. "We have to review the construction of new ports or terminals, multipurpose ports are more sustainable. Port automation is no longer an option but a necessity, port system procedures must be online and should be simpler, besides that logistics logistics in the port backup area are important," he said.

Meanwhile, Prof. Yandra explained that one of the weaknesses of the port logistics system (maritime logistics) at the moment is its inability to calculate demand and supply accurately and real-time. This causes inefficiencies in the transportation and distribution system.

"The current logistics system is also unable to transact honestly, authentic (original) and transparent so that the risk of leakage and adulteration along the supply chain is quite high. These two factors can cause scarcity and even crisis of staples. "Especially in the current Pandemic COVID-19," he said.

For this reason, according to him, it is necessary to create a high-precision maritime logistics system using Al and blockchain that can guarantee speed, accuracy, precision, real-time, authenticity and transparency. Besides blockchain can also prevent product breakdown (adulteration), guarantee the authenticity of documents and simplify the insurance process. This system will also be reliable for recovery and new normal times.

"The way to do this is by building smart modules that can be grafted into an existing logistics information system. Thus we don't need to start from scratch, so the time for system implementation can be shorter," he said. (IAAS / NAS)

Published Date : 22-May-2020

Resource Person : Prof Dr Ir Tridoyo Kusumastanto MS,

Keyword : IPB lecturer, COVID-19, logistics, port, trade, transportation, blockchain, artificial intelligence