Infrastructure problem is the
focus of attention of all of us in the recent years in order to respond to
national economic activities. Infrastructure is not only the supporter of
national economic activities and domestic interconnectivity (within and between
islands), but it is also expected to increase connectedness with international
world. One once hand, demand for found for infrastructure development which is
quite high in the midst of limited fiscal movement space requires a strategic
attempt by optimizing investment. Therefore attempt to invite local as well as
foreign investors in the form of public-private partnership is a manifestation
to optimize momentum without denying national interest.
Deputy General Chairman of
Indonesian Chamber of Commerce and Industry (Kadin) for Trade, Distribution and
Logistics, Natsir Mansyur, Thursdays (12/27), regretted over Indonesia’s
economic growth which is not in line with increase of food production and
manufacture so it causes Indonesia to depend on import. He said that
Indonesia’s economic growth next year is projected at 6.8%. But, unfortunately,
such a high growth could not provide any changes. According to Natsir,
improvement can be started from logistics system and adequate infrastructure
for industries in the regions.
Concerning infrastructure
development, Natsir said that Kadin is serious and will prepare an investment
fund of Rp 72 trillion until 2015 if national logistics system and distribution
channel infrastructure are improved. Kadin jointly with the related ministries
continually arranges meeting to discuss about development of national logistics
system. We, business operators, expected the government to immediately improve
the national logistics system, Natsir said.
So far, logistics cost
stands at 14.08% and it is set to be reduced up to 10% by end of 2014. It is
expected that logistics cost by 2025 will be less than 10%. According to him,
logistics cost is currently very high and it significantly affects competitiveness
of local product. Therefore, the central and regional government must be
responsible in reducing logistics cost. The government should accommodate
interests of regional government to reduce logistics cost. One of them is
infrastructure development which is a problem, to almost all regions.
According to Natsir, the
attempt to reduce national logistics cost is important in the framework of
downstreaming of industries which are being cultivated. Sumatera, for example,
as a region that produces plantation, agricultural commodities and minerals
requires adequate infrastructures, whether to boost development acceleration as
well as speed of marketing of downstream products. He is in the opinion that if
infrastructure is bad, not only logistics cost that will increase, but also
development cost.
The business community
support government’s attempt to accelerate improvement of logistics system and
infrastructures connecting rural areas to economic growth centres. The aim is
to reduce Indonesia’s logistics cost which reaches 24% and to improve business
climate. He toot an example that 70% of differences in rice price in some
regions in Indonesia is due to logistics cost. This is a reflection of bad road
infrastructure, crowded seaports, and inter-island transportation system which
has not been improved.
By improving connectivity,
logistic costs will be cheaper and delivery time will be faster. Additionally,
infrastructure and transportation reform will provide a huge economic benefit.
This policy will also help to improve social services, create a more conducive
business climate, promote private sector participation in infrastructure
services, increase technology and innovation, and expand work opportunities.
(E)
Business News - January 04,2013
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