The Logistics Performance
Report Index [LPI] 2014 promoted Indonesia’s position in terms of logistics by
6 graders to level against the previous position of 59. However LIPI’s report
which had been spread still had no formal recognition from the World Bank as a
body to make logistic survey since 2007. In a report based on the World Bank’s
evaluation Indonesia was in the 53th position with average percentage of 66.7%.
Deputy Chairman of the Indonesia Logistics Association
[ALI] Mahendra Rianto stated in Jakarta on Wednesday [16/4] that Indonesia was
still at the lower-middle income group together with fellow ASEAN country
Vietnam. On the other had Promotion of ranking by LPI was still regarded as
unsatisfactory by logistics companies. They believed that the promotion could
not be referred to as criteria for national logistics progress especially to
compare with Asean states. The report placed Singapore in 5th
position, Malaysia 25th and Thailand 35th. Indonesia was
only close to Vietnam at 48th level.
Mahendra supported Government’s policy to reduce import
consumption. According to Mahendra the Government must be serious about running
national logistics system which protected local business people. He said that
supply shortage and imbalanced inter-provincial supply caused logistics costs
to soar high. The Government was obliged to seek for solutions through full
understanding of the implementation of the national logistics system
[SISLOGNAS]. Meaning the Government should not focus on strengthening of infra
structure but ignore building of industrial centers.
He said that the Government should map out the potential
of commodities in all of Indonesia. Thereafter the Government could identify
the market demand so the commodities would make infra structure relevant. So
far infra-structure building were underway but there was no attention in
premium commodities in the regions. He recommended the Government to realize
the east-gate west-gate policy for export activities.
Data of Supply Chain Indonesia [SCI] had it that growth
of logistics service in 2014 was predicted to reach 14.7% with transactions
amounting to Rp.8,816 trillion. However, of that amount, national commodities
constituted only 23.8%. Mahendra mentioned that national commodities of the
processing industry, non oil-gas sector, had the potential to yield transaction
of logistics services worth Rp.237.5 trillion. This sector consisted of food
and beverages industry, machineries, transportation equipments, and chemical
products. The second sector which put added value to logistics services was the
agricultural sector. The total transaction was around Rp.183.3 trillion,
originating from logistic cost of industrial plantation products, fishery, and
plantation.
He said that growing income of the middle class group
would increase demand for goods, which eventually jacked up demand for
transportation. The condition would advantage sea transportation. This industry
was predicted to grow by 4.3% with total transportation volume of 1.04 billion
tons per year. Beside the volume of railway cargo would increase by 8.5% to
become 25.5 million tons against 23.6 tons. Meanwhile volume of goods delivery
also increased by 15.3% to become 1.34 million tons. Soekarno Hatta airport as
the main gateway to international trading would post cargo volume growth around
5% - 7%.
He further disclosed that so far, as written in the
Blueprint of the National Logistics System [SISLOGNAS], the Government had not
stipulated strategic commodities. The point was that stipulation downturn of
logistics cost and to supply goods. At this point, national logistics companies
had the opportunity to spread wings at regional level as there was public trust
to do it. (SS)
Business New - April 23, 2014
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