The Economic Impact of Container Capacity In East Java Province Using System Dynamic

Sea transportation is the most important mode of transportation for international and domestic trade in East Java province. In recent years, the port capacity did not keep pace with increased trade volumes. This research studies the economic impact of container port capacity in East Java province. The dynamics system approach used to a container port model would be constructed to capture the dynamic, the feedback relationship, uncertainty, and complex factors in the economy. This paper will measure the increment of the economic impact from the industrial investment and the GDRP variable. Moreover, this research is offering 2 scenarios, which is an equipment revitalization scenario and revitalization of the container yard scenario. Finally, the revitalization of the container yard scenario is picked up because it could increase the industrial investment and GRDP.