Sunday, 30 November 2014


The National Planning and Development Board [BAPPENAS] stated they would focus effort on building harbor and road infrastructure to promote national logistics sector. Infra structure building was an effort to increase effectiveness on national logistics system building.

Amalia Adininggar Widyastuti Director of Trading, Investment, and International Economic Cooperation of Bappenas stated in Jakarta on Tuesday [14/10] explained that harbor infra structure and roads in industrial estates today needed to be developed and promoted to support performance of the logistics sector at home. Amalia stated that development of infra structure and other supporting factor which was exercised simultaneously had positive impact on the performance of national logistics

Amalia mentioned that build logistics sector of high competitive edge there were six steps needed, i.e. to promote trading of main commodities, infra structure, service providers, human resources, technology, information and communication and harmonization of regulations. She felt sure that various measures taken by the Government would enhance positive growth of the logistics sector in the future.

He admitted that infra structure was an unending homework to be done. Poor infrastructure was often accused as the culprit of National economic slowdown. Infra structure being unprioritized caused infra structure being slow. For example it took 7 years to build a small harbor at the cost of Rp. 10 billion instead of 2 years.

To learn a lesson from the above, the next Government needed to prioritize building of infra structure since many infra structure projects were more than ready to begin construction. He also proposed that the new Government relaxed policies which had been the obstacle for real sector investment and infrastructure building.

Amalia stated that many harbors and roads around industrial estates needed development to support the logistics sector at home. The water on Indonesia waters were mostly only around 6 meters deep while in Singapore and Malaysia they were more than 16 meters deep therefore flow of goods in Singapore and Malaysian harbor was high and in Indonesia it was low.

Amalia saw that sea freight transportation by big ships and container carriers were still only concentrated in West and Central Indonesia. In East Indonesia was still limited. Use of small boats in East Indonesia caused prices of goods to be high compared to that in West Indonesia. This Pendulum was expected to enhance efficient and well integrated distribution system.

But thankfully according to Logistics Performance Index Survey [LPI] 2014 released by the World Bank, Indonesia’s position went up to 53 against 59 in 2012. Performance of Indonesian logistics was showing significant improvement in some aspects, i.e. logistics quality and competence, infra structure and tax & customs service.

Meanwhile chairman of the Indonesia Logistics Association Zaldy Masita rated that readiness of basic infra structure of harbors should be prerequirement before any harbor was put in operation. Basic infra structure might be defined as electrification, road access to and from harbor, water supply and drainage system whereby harbors could be operated to the maximum. However there was something more important than building maximizing harbor functions, i.e. development of national sea transportation as whole.

Many harbors were built without increased number if ships that anchored such was not contributive to national sea transportation system and national economy. (SS) 

Business News - October 17, 2014

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