• Ironically, the Contribution of the Logistics Sector is High But The Costs Are Also Exorbitant

    JAKARTA – Indonesia is listed as one of the countries with the highest logistics cost. Indonesia’s logistics cost comparison to gross domestic product (GDP) is about 26%.

    Vice Chairman of Kadin for Logistics and Supply Chain Rico Rustombi said it was an irony. The reason, based on data Kadin logistics sector contribution to GDP reached 7.16%.

    “The contribution of the logistics sector is very large, so if the logistics cost comparison to GDP can be reduced to 20% it will be extraordinary,” he said in Jakarta on Thursday (5/10/2017).

    The problem now, Rico said, of the many infrastructure projects built by the government has not been specifically targeted for logistics.

    According to him, logistics costs can go down not only related to infrastructure or human resources alone, but there must be an agreed platform.

    “The infrastructure gap is good, but there must be infrastructure built specifically for logistics, until now there is no information, we can only general data,” he added.

    Kadin hopes the government can identify any infrastructure that has a correlation to the decrease in logistics costs.

    Regarding the platform, the government actually already has a national logistics system (Sislognas). However, its implementation has not been felt by business actors.

    Vice Chairman of Transportation Chamber of Commerce Carmelita Hartoto explained, logistic actors want Sislognas run in accordance with the initial draft. However, he considered the government did not do the socialization with the maximum. As a result government policy is interpreted differently by local government.

    “In the field of entrepreneurs face different problems when the skin remains one,” he explained.

    ———
    Sources: http://industri.bisnis.com/read/20171005/98/696355/ironis-kontribusi-sektor-logistik-tinggi-api-biayanya-juga-selangit
    Translated by Aryaputra PandeBIC

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