JDE (Journal of Developing Economies) Vol. 7 No. 1 (2022): 156-179 JDE (Journal of Developing Economies) https://e-journal.unair.ac.id/JDE/index TECHNICAL EFFICIENCY ANALYSIS OF CONTAINER TERMINALS IN TANJUNG PERAK, SURABAYA, EAST JAVA Bambang Eko Afatno 1 Karno Dwi Joyoutomo* 2 1,2 Department of Economics, Universitas Airlangga, Indonesia ABSTRACT Container Terminals in Tanjung Perak Port is a trading center in the East- ern Indonesia Region (KTI) with a total throughput of 3.6 million TEUs in 2020. The utlity/level of use of terminal facilites, consistng of the pier/ berth occupancy rato (BOR), has reached 60%. The feld/yard occupancy rato (YOR) is 65%, while the maximum utlity is 70% (UNCTAD). It is neces- sary to explore the technical efciency of each container terminal using the stochastc fronter analysis (SFA) because it can also capture the inefciency efects. This study is built from the analysis of producton factors in the pe- riod of 2009-2020, where the variables used are capital (k) using company asset data, labor variable (l) using data on the number of human resourc- es, energy variable (e) using energy cost data (fuel oil/fuel, electricity, and water). The inefciency variables are port draught (d) and loading and un- loading productvity (p). The container terminal in Tanjung Perak has a rel- atvely high technical efciency value of 0.94. This shows that the terminal operaton is quite optmum and is approaching the maximum point. The overall average elastcity is 2.01, which can be categorized as an increasing return to scale. The elastcity of assets has the most signifcant proporton, so it can be concluded that the port is capital intensive. Next, it’s found that the higher productvity 1% increase in loading and unloading productvity, the more inefciency with a relatvely minimal value of 0.11%. Finally, an increase of 1% in depth will increase efciency by 10.89%. Keywords: Technical Efciency, Elastcity, Inefciency JEL: O3; R4; C3; C5; D2 To cite this document: Afatno, Bambang E. & Joyoutomo, Karno D. (2022). Technical Efciency Analysis of Container Terminals in Tanjung Perak, Surabaya, East Java. JDE (Journal of Developing Economies), Vol. 7(1), 156-179. Introducton The world has acknowledged Indonesia as an archipelagic country through UNCLOS 1982, which has a total of 13,466 islands and a beach length of around 54,716 km (BIG, 2015). Indonesia also has a water area of 3,257,483 km2 and a land area of 1,922,750 km2. Thus, Indonesia is called a maritme contnent. Therefore, the maritme sector (fshery sector, mar - itme manufacturing industry/shipbuilding, water transportaton, and sea/port supportng services) is a strategic sector in Indonesia’s economic development. One supportng infra- structure for internatonal and domestc trade is a port capable of integratng the two trades. JDE (Journal of Developing Economies) p-ISSN: 2541-1012; e-ISSN: 2528-2018 DOI: 10.20473/jde.v7i1.34928 Open access under a Creatve Commons Atributon 4.0 Internatonal (CC-BY) ARTICLE INFO Received: April 9 th , 2022 Revised: May 22 nd , 2022 Accepted: May 25 th , 2022 Online: June 28 th , 2022 * Correspondence: Karno Dwi Joyoutomo E-mail: karno_dj@yahoo.com