ONE OF THE LOGISTICAL PROBLEM

Ministry of Trade Deal with Problems Logistics SolutionsPosted on April 11, 2013 by Esther Meryana
There are a number of factors behind the high cost of logistics in Indonesia. One of them is a logistical infrastructure is still limited in a number of places. Right now, the government with relevant stakeholders working to address the logistical problems that exist in order to enhance the competitiveness of national products.
In the event logistics workshop with the theme "Challenges and Opportunities Facing Global Markets Logistics Indonesia," in the Ministry of Commerce, on Wednesday (04/10/2013), Gita Wirjawan, Minister of Trade, explained, logistics costs in Indonesia reached 24.64% of Indonesia's GDP in 2011. In fact, the cost of logistics in the United States only reached 9.9%, Japan 10.6%, and South Korea as much as 16.3%.
In fact, according to the survey Logistics Performance Index (LPI) by the World Bank in 2012, Indonesia was ranked 59, or under Singapore, Malaysia, Thailand, and Vietnam.
Gita was delivered, one of the causes of the high cost of logistics is the logistics infrastructure in Indonesia is still very limited in eastern Indonesia. In effect, economic growth between the western region with the eastern region is not balanced.
Gita Wirjawan, Minister of Trade (middle)
The other cause is the absence of collateral behind the charge of the eastern region for cargo transport (backhaul), which resulted in freight to the eastern region is higher compared to the western part of Indonesia. "This addition resulted in a disparity between the western and eastern regions, also resulted in a lack of investors to invest their capital, which in turn slows economic growth in the eastern region," he added.
The high cost of logistics in the end led to the competitiveness of Indonesian products will be lower than the same product produced by competing countries. Low competitiveness not only in domestic market but also in international markets.
Supposedly, Gita mentions, integrated logistics systems effectively and efficiently so as to improve the competitiveness of national products on the global and regional markets, and to improve the welfare of the community. "It can be done by lowering logistics costs and ensure the availability of basic and strategic commodities up to the village level," he said.
The Ministry of Trade is actively involved in developing a national logistics system as well as facilitate inter-regional connectivity and logistics between the vertices, through the Revitalization of Traditional Markets, Development of Regional Distribution Centers / Provincial, and development of logistics network logistics between the vertices in each economic corridor.
In the last four years, the Ministry of Commerce through the Assistance has revitalized the traditional market and 461 units of five National Distribution Center / province with more than Rp 2 trillion. The Ministry is also actively encouraging the establishment and development of special economic zones, optimizing Cikarang Dry Port, as well as encourage the establishment of an international seaport at Kuala Tanjung hub for the western region and Bitung in eastern Indonesia.
Additionally, in an effort to accelerate the world voyage Indonesia as part of the national logistics system, the Ministry of Commerce has initiated so that the shipping industry may choose to use Indonesian-flagged vessels to transport cargo through the application of systems Cost, Insurance and Freight (CIF), is no longer a Free On Board ( FOB). Thus, the cruise industry has a greater opportunity to contribute in the export as well as to increase national economic growth.