Maintaining Logistic Distribution Streamlined


Last week, issue of logistic stagnation at Tanjung Priok port came up to the surface. Following the problems faced by customers of Indonesian largest port in processing export import documents that led to long queue.

Indonesia Bisnis Daily, over the last week highlighted the problems faced by port’s users. The point is Tanjung Priok port need a thorough revamping. Moreover, the problems at Tanjung Priok also faced by many other ports in Indonesia, which seriously impact to the logistic distribution in the country, both for domestic and international trade.

The main problems occur at Priok port basically includes loading and unloading slowdown process which led to long queue.

One of causes was dwelling time on Red Line Tanjung Priok Port, which was relatively long. This was partly due to changes in documentation mechanism at the port by customs procedures.

The data showed, containers dwelling on red line continue to increase to an average 13-17 days in June from 10-13 days in April. As a result, there were many containers stuck in storage terminal. The condition was exacerbated by customs inspection delay on the red line. Therefore, goods on red line have reached 25% total imports at port.

Other factors because of increased activity and trading volume in the Indonesian busiest port, which wasn’t offset by increased infrastructure capacity and technology.

If it’s not overcome, then the national logistics inefficiency is inevitable. Therefore, Coordinating Minister of Economic Affairs Hatta Rajasa promised Tanjung Priok problems will be resolved in this week.

At least there are some measures prepared by the government through Finance Minister M.Chatib Basri to solve the problems. The anticipation is done considering momentum of fasting month and Eid which would trigger logistic distribution hike significantly.

A number of steps which prepared by the government are additional service hours as well as customs staff to accelerate customs clearance, improving risk management, integrated coordination among related parties at the port and other steps.

Related to above, Tanjung Priok Custom and Excise Office is required to deliver goods checking until 11 PM every working days, hence there are more service hours.

The government will also facilitate synergic steps between port operator and provider of integrated physical check, and settlement of long stay containers in Tanjung Priok port.

To streamline the strategic steps, Deputy Minister of Finance is assigned to work at least twice a week in the office to coordinate the necessary steps and to do follow-up actions.

It is clear that immediate re-arrangement of problems in Priok is very necessary. Those steps at least are expected to solve problems in short term.

Certainly other steps are still needed which support more sustainable port service in middle and long term, particularly the capacity improvement along with economical development, ad addition of infrastructure and technology.

Some months ago President Susilo Bambang Yudhoyono organized cornerstone laying of Priok port in Kalibaru as an effort to balance the massive good flow in the country’s biggest port.

Surely this would take time, whereas Priok port now has quite a burden. It is seen from its yard occupancy ratio (YOR) which currently above 106%. This shows that activity in the port indeed surpasses the existing capacity.

While waiting for the effectivity of government’s solution, all parties should restrain and need not accuse each other. Collective effort and mutual support are very necessary given that currently Priok port is the barometer of national logistic management and the main gate of international trade in the country







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