Effectiveness of Shipping Routes through Public Service Obligation for PT Pelni (PERSERO)

Abstract

PT Pelayaran Nasional Indonesia (PT PELNI) has faced criticism for inefficiencies and ineffectiveness in its 
utilization of Public Service Obligation (PSO) funds, which are often diverted from their primary purpose of 
improving passenger transport services. This misallocation has exacerbated infrastructure disparities, 
particularly in remote areas, regions with weaker economies, and routes managed by operators incurring 
losses. Such gaps present significant challenges to achieving equitable access to maritime transportation. As 
stipulated in Law No. 17 of 2008, the shipping system encompasses waterborne transportation, ports, safety, 
security, and marine environmental protection, all of which significantly influence the mobility of people and 
goods. However, service quality perceptions vary across different socio-economic groups, highlighting the 
need for targeted improvements. This study evaluates the effectiveness of PSO implementation at PT PELNI, 
focusing on optimizing subsidized shipping routes to enhance service delivery and contribute to regional 
economic development. The findings aim to inform policymakers and stakeholders in improving PSO 
administration and maritime infrastructure.