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Suyana Pandiangan, Bona Vintura
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Economics, Econometrics & Finance

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Optimizing Port Development as an Economic Equity Policy in Underdeveloped Regions: A Case Study of Tapaleo, North Maluku Apriyani, Gresia; Tumangger, Siti Sarah; Siregar, Sri Ramadhani; Situmeang, Romauli Br; Suyana Pandiangan, Bona Vintura
Journal of Regional Economics and Development Vol. 3 No. 2 (2026): February
Publisher : Indonesian Journal Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47134/jred.v3i2.972

Abstract

The development of ports in underdeveloped regions plays a strategic role in enhancing connectivity, accelerating economic distribution, and reducing interregional disparities. This study analyzes the development of Tapaleo Port in Central Halmahera, North Maluku, through the lens of public economics and equity-oriented policy. The research adopts a case study approach with an analytical framework based on market failure theory, positive externalities, the Lindahl financing model, and the Kaldor–Hicks welfare criterion. The findings indicate that the port’s development has generated positive impacts on the regional economy, including a 22% reduction in logistics costs, an 18% increase in fisheries exports, and contributions to local job creation. However, its implementation still faces several challenges, such as delays in budget absorption, limited readiness of supporting infrastructure, and inadequate community involvement. This study recommends improving governance transparency, strengthening cross-sectoral coordination, and adopting an inclusive development model that   actively engages local communities to achieve long-term and sustainable economic equity.
Co-Authors Apriyani, Gresia Siregar, Sri Ramadhani Situmeang, Romauli Br Tumangger, Siti Sarah