Logistics business
operators estimated that the national logistics services industry in 2014 will
maintain double-digit growth trends and is projected to reach USD170 billion,
equivalent to Rp1.951 trillion. Projection of logistics services next year is
also supported by an increase in the distribution of goods related to the 2014
general election. The estimate is higher than the estimate by the end of this
year which will reach USD 150 million, equivalent to Rp1,722 trillion. The projected
growth in the next year is in line with the development of network and supply
chain of logistics companies operating in Indonesia.
However, Chairman of the Indonesian Logistics Association
(ALI), Zaldy masita, in Jakarta on Monday (November 11), believed that the
development of infrastructure which has not been significantly implemented by
the government will keep the national logistics cost high in the next year. In
addition, the implementation of the national logistics system (sislognas) will
not run as its should be, will suppress growth of the national logistics
industry in the next year. Not to mention the rules and regulations which are
so numerous and overlapping. “In this country, logistics costs are very
expensive, because there is no significant development of infrastructure”,
Zaldy said.
He explained the industry competitiveness remain a fixed
price in order to win the business competition in ASEAN and the global arena.
Therefore, logistics problem, which is increasingly acute and cripples
competitiveness, should immediately be fixed. Handling of logistics problems
which has not been optimal until now will make the national industry a loser.
In the past year, the World Bank put Indonesia’s competitiveness in logistics
at 59th position out of 155 countries. This rank is far below Singapore,
Malaysia, Thailand and Vietnam. He saw that weak domestic logistics
competitiveness is visible from a number of indicators such as customs,
infrastructure, international shipments, quality, and logistics competence. There are also aspects of
tracking, tracing, and time management.
According to him, poor planning and government’s
commitment in infrastructure development triggered a slowdown in Indonesia’s
competitiveness. Government planned to focus more on the development of ground
infrastructure, such as toll roads, which sometimes lead to problems of land
acquisition. He added that the disparity in the development of transportation
and logistics infrastructures triggers a slowdown in Indonesia’s
competitiveness. In fact, inter-regional connectivity and intermodal
integration should be government’s attention, not just focusing on land acquisition
for road infrastructure.
Entrepreneurs urged the acceleration of improvement of
port, railway, airport and land transportation infrastructures to encourage the
national logistics competitiveness. He said that in addition to logistics
support infrastructure which is urgently needed, protection from the central
government to local logistics business continuity is needed in the midst of
intense competition in the business sector currently and ahead of the
implementation of the ASEAN Economic Community 2015.
He said that national logistics connectivity is
absolutely necessary considering that Indonesia is an archipelagic country, and
of course with the support of good transportation infrastructure in all modes.
Although it is already mandated in Sislognas, but he saw that the preparation
of logistics infrastructure was not in accordance with the expectations of the
businesses.
He
considered that high logistics cost is a serious problem that inhibits the
growth of Indonesian economy. According to a report published by Bandung
Institute of Technology based on inputs from World Bank experts, national
logistics costs in Indonesia is 24% of gross domestic product (GDP) or higher
than the neighboring countries. The annual report analyzes and provides an overview
of the progress in the tackling of logistics problem in Indonesia.
Business News - November 13, 2013
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