Logistics performance starts competitive, logistical costs still being PR

Bisnis.com JAKARTA – A number of logistical improvement efforts, including through infrastructure development, propelled the Indonesian logistic performance index of 63rd to 43rd place.

National Logistics Performance Index is designated as a subject title printed newspaper Bisnis Indonesia edition Thursday (26/7/2018).

However, RI is facing new challenges to maintain and improve performance amidst the aggression of the ASEAN countries, including Vietnam, which now exceeds Indonesia.

Yesterday, the World Bank published the Logistics Performance Index / Logistics Performance Indices) 2018. This index measures the economic and logistical performance of the country every two years. Measured components include customs, infrastructure, international freight, quality and logistics expertise, goods tracking and tracking, and timeliness.

This year, Indonesia has increased 17 ratings with a score of 3.15. RI recorded an increase in almost all aspects of the evaluation, with the exception of the customs component which scored the lowest at 2.67. Meanwhile, the highest aspect of the evaluation is the speed with a score of 3.67. ( see infographic )

This achievement is in line with a number of corrective efforts made in the country over the past two years, a.l. the intensive development of infrastructure undertaken by the government until the revision of the housing time is now successfully suppressed to be less than 4 days

Minister of National Development Planning (NPP) / Director of Bappenas Bambang PS Brodjonegoro believes that improvements in the logistic index are the result of improvements in the infrastructure.

"Even if there are still barriers to customs, this may be due to the application on the ground, some should go green."

Yukki Nugrahawan Hanafi, president of the Indonesian Association for Logistics and Freight Forwarders (ALFI), appreciated RI's accomplishments. However, there is still much work to be done to improve Indonesia's logistical performance.

"We will definitely have to work harder in the future because we are in an era of competition and very rapid changes."

Indonesia's position is above the Philippines, Brunei Darussalam, Laos, Cambodia and Myanmar, and Singapore, Thailand and Malaysia.

Interestingly, Vietnam managed to move from 39th position to 39th position. Indonesia which was previously in a higher position. "The rise of Vietnam's rankings is staggering."

LOGISTICAL COSTS

Logistics Research and Education Agency, Supply Chain Indonesia (SCI), badesses the need improvements to improve logistics performance Not to mention the position of the IR in relation to the countries of Asean

Although not included in the evaluation component, it points out that the logistics costs in the country remain high, 23.5% in 2017 or lagging behind other Asean countries, including Vietnam (15%), Thailand (13.2%), Malaysia (13%) Singapore (8.1%).

President of the Indonesian National Shipowners' Association (INSA) Carmelita Hartoto sees the problems inadequate connectivity makes the Indonesian logistic system lag behind Singapore, Malaysia, Thailand and even overtaken by Vietnam

"The logistics system must be strengthened by the growth of economists (19659003) Ernovian G Ismy, secretary general of the Indonesian Textile Association (API), believes that the backbone of the However, in the future, he hopes the government will also address the issue of high logistical costs.

Adhi S. Lukman, president of the Indonesian Textile Association (API), as a backbone 39, Association of All Indonesian Drinks (Gappmi)), said that food and beverage operators feel the improvement of domestic logistics in terms of port preparation and However, the problem of high logistical costs has not yet been solved.

Meanwhile, Benny Soetrisno, president of the Association of Indonesian Export Entrepreneurs (GPEI), said the increase in ratings still does not reflect the ease of doing business for exporters. instead of facing the additional costs of applying overloaded truck control programs on the road, or on dimensions and overload (ODOL). "If the logistic performance index increases, this should be reflected in logistics costs."

According to economist at the University of Indonesia, Fithra Faisal, exporters are still undergoing constraints in terms of port capacity, which has resulted in increased logistical costs. He explained that Tanjung Priok's transport costs in Amsterdam could reach US $ 1,400 per container, while from Singapore to Amsterdam, US $ 400 per container. The high cost of logistics is due to the increasing number of trucks, but the port has reached its maximum capacity. He hopes the government is also accelerating the construction of new ports. (Ilham Budhiman / Sri Mas Sari / Anggara Peñando / M.Richard / Hadijah Alaydrus / Annisa Sulistyo Rini)