Distribution Track Improvement In Tanjung Priok Is Urgent

JAKARTA—The employers urged infrastructure improvement of distribution track to and from Tanjung Priok Port Jakarta following the severe damage to the main access export import in Indonesia.

Chairman of Indonesia Logistics and Forwarder Association(ALFI) Jakarta Sofian Pane said flooding in Jakarta and surrounding region has paralyzed the activities of logistics and infrastructure damage in Tanjung Priok distribution channels.

“Logistics entrepreneurs suffer losses of billions dollars per day due to the goods distribution obstructed. As a result, Forwarder Company as goods owner representative claimed if there’s an export delay or return import containers in the depot,” he told Bisnis, Monday (2/10).

He explained forwarder that has to cover the extra costs due to goods distribution hamper at the port. Though there is no intentional factor in the container traffic delays.

“All due to the circumstances that currently we have faced together, floods and traffic jams everywhere,” he said.

He explained additional costs that ultimately impact the selling price of goods will soar. The public as end consumers are predicted would bear the entire additional load.

“In order to reduce logistic cost, infrastructure improvement and capacity increasing in Tanjung Priok Port is urgent to be actualized,” he said.

During this time, port plays a vital role for the competitiveness of the country because the port as one of the elements of national logistics costs.

If infrastructure less supportive, it will impact the goods traffic both for export and import.

Infrastructure improvement in the port cannot wait long considering the national export growth rate continues to increase.

He cited the December 2013, surplus trade balance of US$ 1.5 billion due to surging exports.

In 2013, national export totaling US$182.57 billion with import amounted to US$186.63 billion.

At the time, export target was set at US$179 billion. In 2014, the government targeted export growth by 5% to US$190 billion.

With export growth rate so high, he assumed the carrying capacity of the Port of Tanjung Priok absolutely must be fixed.

“More than 65% of Indonesia export-import traffic passes through Tanjung Priok. If the capacity and access to the Port Priok not immediately enhanced the goods price hike will continue to occur due to the high cost of logistics


The Highest

Chairman of the port affairs of National Importers Association of Indonesia (GINSI), Erwin Taufan said the availability of infrastructure inside and outside the port as a key trigger of high logistics costs.

“If infrastructure supports and sufficient, automatically logistics costs can be minimized,” he said.

He said, national logistics costs compared to neighboring countries still classified as highest.

That’s what makes Indonesia’s competitiveness is weak compared with competitors such as China, Thailand, and Vietnam.

Based on the Blueprint of the National Logistics System (Sislognas), logistics costs reached 27% of the national Gross Domestic Product (GDP), far behind compared with Japan 10.6%, U.S. 9.9%, South Korea 16.3% and . “The higher the logistics costs, the lower competitiveness,” he said.

On the other hand, Director of the National Maritime Institute (Namarin) Siswanto Rusdi said the government must accelerate infrastructure development in Tanjung Priok, good road access to the container the port’s own capacity.

Currently, more than 9,000 units’ goods and freight containers come and out of the Port of Tanjung Priok every day.

With the vehicles volume that continue to grow while the access road which has not changed much, he said, the cost of transportation to and exit ports are becoming increasingly expensive.

He explained, Government should maximize the role of PT Pelabuhan Indonesia (Pelindo) II and its assets to accelerate the port capacity increasing, as if waiting Kalibaru Terminal development is too long.

“Pelindo II should be encouraged to increase investment in assets that already exist, thus increasing Priok capacity can be done and immediately perceived by employers,” he said.



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