Vol.10 (2020) No. 6 ISSN: 2088-5334 Institutional Coordination of the Multimodal Logistic Transportation Systems at Tanjung Priok Port, Indonesia N. Budisiswanto a , M. Miharja a,1 , B. Kombaitan a , P. Pradono a a School of Architecture, Planning, and Policy Development, Institut Teknologi Bandung, Indonesia E-mail: mimingm@pusat.itb.ac.id Abstract— The improvement of multimodal logistics transportation systems in developed countries has been developing rapidly to reduce transaction costs and increase competitiveness. However, the development of the multimodal logistic transportation system in Indonesia is still relatively slow. This study aims to assess the multimodal transportation institutional coordination of the multimodal logistics transportation system at Tanjung Priok Port. Institutional coordination analysis was assessed from the Transaction Cost Theory and Principal-Agent Theory (PAT) perspectives. Stakeholder Analysis and Q-methodology are chosen as an analysis tool based on the two theories above. Q-Methodology produces a simpler structure of actor perception called actor perception pattern (PP). The perception pattern represents several actors' main perception themes, which would help the analysis focus on the most significant perceptual themes regarding substantial elements of transaction costs. Stakeholder's analysis explains further the results of Q-methodology by mapping the actor, influence, urgency, and importance. This study found that the actor's perception, which is an element of transaction costs, has hampered the coordination in the logistics transport system at Tanjung Priok port due to conflict of interest and adverse selection of informal institutions. This situation becomes more complicated since a specific institution does not yet cover the coordination between actors in multimodal transportation. Therefore, the study suggests establishing the permanent institution as a coordination and management agency to facilitate the strategic concept of relational contracts in the long term, which is expected to expand and deepen institutional coordination. Keywords— multimodal transportation; coordination; institutional; Tanjung Priok’s Port. I. INTRODUCTION Indonesia's geographical condition, as the largest archipelago in the world and its location between two continents and two oceans dominated by waters, requires a reliable logistics system to support an efficient and reliable distribution system of goods [1]. Recently, it is felt that Indonesia's national logistical system is still far behind when compared to other developed countries, which make price disparities between Java island and outside Java island. The high cost of port services has caused the low competitiveness of exports and imported products with lower prices than domestic products [2]. This statement is supported by the fact that Indonesia faces a high logistics cost of 23.5% of the Gross Domestic Product. Based on data from the Logistics Performance Report [3], the Logistic Performance Index (LPI) has been issued from 160 countries in 2018 based on six indicators, namely: the existence of customs, build infrastructure, international shipments, competencies of logistics, tracking & tracing, and timelines. Although Indonesia's LPI ranking has improved, Indonesia's ranking among ASEAN countries has dropped from rank 4 to rank 5 [3]. Based on empirical experience in many developed countries, one of the development strategies on the transportation system to support the logistics system's efficiency is the development of multimodal transportation, particularly at the vertices of import and export ports [4]. Multimodal transportation described as the transportation of things and goods with different modes of transportation with multi-actor network management and has different market forces in the logistics transportation system [4]–[6]. Multimodal logistics transportation, which has functions related to the development of containerization and aims to improve cargo security, reducing handling costs, standardizing, and accessibility to several modes of transportation [7], is also related to the aspect of sustainability [3]. Infrastructure as the main capital, which influences logistics performance, is very influential on logistics costs. The Indonesian government develops the programs “Pendulum Nusantara” since June 2012 to improve freight movement through Indonesian waters and reduce the cost of logistics ocean freight. The multimodal transportation system, as one of the solutions to improve the performance of the logistics system, requires 4 (four) core components in the development; which are 1) the existence of a transport 2441