National Logistic Shipping Industry Lucrative


JAKARTA: Indonesia’s logistic sales are expected to exceed US$150 billion this year, or up by 25% from last year’s level of US$120 billion, contributed majority from online courier segment.

Chairman of the Indonesian Logistics Association (ALI) Zaldy Ilham Mashita says the prediction of Indonesia’s fast-growing logistic sales as cited from Frost & Sullivan International Consultant data is driven by large demand this year.

He continues, market for logistic transportation services are dominated by shipping  sector, in which it controls some 60% of the total market share, while the rest of 40% is taken by, among others, online courier services. This mode grows by 40%; the highest among the other delivery systems, with their majority service coverage area is around Great Jakarta, including DKI Jakarta, Bogor, Depok, Tangerang and Bekasi.

Online currier services have been in the market since since 2 years ago thanks to facebook, Twitter as well as the other social media. The sales is still small in size, however, it grows very rapidly impacted online business currier growth rapidly, as reflected by growth percentage.

The Association estimated logistic shipping business revenue during the first semester this year grow by 12%, compared with same period of last year, due to high logistic demand during the last Ramadhan and Idul Fitri.

The revenue growth of this business touched IDR1.43 trillion, boosted by lucrative market amid inefficiency in this sector.

Vice President of Malaysia-based Transportation and Logistic Practices Asia Pacific Frost & Sullivan, Gopal R projected the total logistics industry market will reach IDR1.232,9 trillion.

The value is accumulated from logistic market,warehousing and courier services which reached IDR2325.70 trillion and logistics service provider contract worth IDR997.22 trillion.

Earlier, Gopal said logistics industry in Asia is potential and prospective, considering the world’s population which will top at 2.56 billion by 2012. Majority of them are in productive age.

However, Frost & Sullivan assessed logistics port infrastructure  in Indonesia is still a constrain which ideally should be improved to be more qualified logistic ports.

The other important issue is that, the Indonesia Government needs to observe their foreign trade policies, since those policies also impacted to logistics and transportation systems.

Zaldy said various index measuring the country’s logistic industry performance at the global level shows miserable result, since logistic performance of  Indonesia is still far below the other countries, even if compared to its neighboring countries of Asean.

Therefore, the socialization on the importance of national logistics development is expected to be a strategic plan to increase efficiency in this sector.

Meanwhile, Indonesia National Shipowners Association asked for financial assistance to Asian Development Bank (ADB) and other institution in order to accelerate the development of modern port in Indonesia.

The renovation and modernization of some 29 ports across Indonesia is the main priority in The Masterplan for the Acceleration and Expansion of Economic Development of Indonesia (MP3EI). According to the calculation in MP3EI, the renovation and modernization need funds totaling US$13 billion or IDR117 trillion.

The General Chairman of Indonesian National Shipowners Association (INSA) Carmelita Hartoto said the key to the decline of logistic cost is in the efficiency of port management.

“Insufficient ports and general cargo facilities, limited loading and unloading equipments, in-and- out accesses, extortions, high shipping tariff and port management system are main problems behind the high logistics cost,” said Carmelita yesterday


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