Learning More about Indonesia’s Transportation and Logistics

How Do They Contribute to the Country’s Economic Growth?

Logistics is the management of the movement of goods from a place of origin to a destination to fulfill the demand for such goods by individuals and companies alike. Thus, a region or country’s logistics sector is critical to the area’s production and consumption activities, determining how big the economy will grow.

Vehicles or transportation, which are used to transfer goods between locations, have become a key element of logistics activities. The means of transportation or vehicles used determines how efficient and effective certain logistics activities are.

See also: Transportation’s Crucial Role in Logistics

Because Indonesia is geographically made up of an archipelago of islands (approximately 17,500 in total), extending for 5,120 kilometers from east to west and 1,760 kilometers from north to south, logistics and transportation are undoubtedly a challenge that requires special attention. This includes logistics that have yet to be cost-efficient.

Therefore, the government is committed to its transformation efforts, including eliminating counterproductive regulations and developing the country’s infrastructure, which includes everything from roads and railway stations to harbors and airports. In addition, the government of Indonesia has also allocated 24% of GDP for the transportation and logistics sectors.

Both sectors define how smooth the country’s manufacturing supply chains will be, as well as the success of different companies’ operating activities, and even their profitability.

See also: Transportation and Logistics Boost National Economic Growth

Fostering Effectiveness in the Transportation and Logistics Sectors

Transportation and logistics sectors that are both effective and efficient require not only vehicles with reliable performance, but also vehicles that are cost-efficient. If these requirements are met, companies that rely on the sector’s services will be able to improve or even maximize their revenues.

You should be aware of different types of logistics vehicles available, as well as their effectiveness and efficiency.  Admittedly, these various means of transportation used in logistics activities can all be interconnected. For example, you can transport goods using land transportation, such as trucks, and then ship them; or you can switch from airplanes to trucks; or from trains to ships, and finally using trucks.

On the one hand, cost efficiency is the most significant problem in national logistics and transportation, while on the other hand, the effectiveness and efficiency of vehicles used in logistics activities play a critical role in the success of a supply chain, on which businesses’ operating activities rely.

See also: Industrial Revolution 4.0 Relies on the Roles Played by Digital Logistics

With all these facts in mind, having third parties (outsourcing) manage your logistics transportation needs is the best option because it is more efficient and effective than doing everything on your own. However, one thing to note is that you should work with a reputable logistics company.

PT Serasi Autoraya, also known as SERA, is a well-known transportation and logistics company in Indonesia. As of 2020, this Astra International subsidiary will have branches in 26 cities across Indonesia, making it the largest transportation and logistics company in the country.

With over 30 years of experience, the company understands what Indonesian consumers require, particularly in logistics and transportation solutions. SERA offers best-in-class service to all Indonesians by utilizing cutting-edge technology.

See also: Digital Platforms: The Key to Growing a Transport and Logistics Business

SERA’s primary transportation and logistics businesses range from a used car business with mobil88 and a used car auction business with Balai Lelang Serasi (IBID) to TRAC, a car rental business that serves both individuals and companies. 

SERA also runs a logistics business unit called Serasi Logistik (SELOG). This business unit offers quick, accurate, safe, and always timely logistics services with capable technological support and competent, highly-trained, and reliable human resources in providing services.