Logistics Industry Predicted to Sail Smoothly This Year

Indonesian logistics industry is predicted to improve even more in 2019. One of the factors is that logistics business players will gradually take advantage of the advancement of digital technology to stay competitive—especially since people nowadays have begun shifting their preference to digital means, causing e-commerce transactions to increase every year in Indonesia.

Indonesian Chamber of Commerce and Industry's Sea Transportation Standing Committee Chair Darmansyah Tanaman explained that logistics business in Indonesia cannot be separated from the development of information technology, including e-commerce. That's why logistics entrepreneurs need to adjust to technological development.

"We have to seek the strategy to keep up with technological development from time to time, so that we can prepare ourselves to stay competitive," Darmansyah told Kontan.co.id, Wednesday (September 5, 2018).

The impacts of e-commerce on logistics industry in Indonesia are seen in, for instance, Central Java. According to the Indonesian Logistics, Posts, and Express Delivery Service Association (Asperindo) Central Java Chair Tony Winarno, e-commerce has helped to create a spike in deliveries throughout 2017.

"What's interesting is that, if we count in the contribution of e-commerce in logistics business potential, then ther's an up to 30% potential growth in courier and logistics service business," Tony said as quoted by Tempo, Friday (December 1, 2017).

The growth was driven by the fast expansion of e-commerce, such as from home industry which uses the courier service of Asperindo members. Tony said that clothing and handicraft products, as well as dry processed food, currently make up the bulk of deliveries to customers.

Other than the impacts of e-commerce expansion, the fact that some infrastructure projects in transportation are slated to begin operating in 2019 is also predicted to give positive effects to the growth of logistics business.

Some Trans Java and Trans Sumatra toll roads will begin operations in 2019, Okezone.com reported on Monday (December 31, 2018). These toll roads include section VII of the Medan-Kualanamu-Tebing Tinggi (MKTT) toll road, Jakarta-Cikampek Elevated II, Pandaan-Malang, and Jakarta Outer Ring Road (JORR) II.

With the support of transportation infrastructures, it is expected that the still-high logistics costs in Indonesia can be slashed.

Logistics Performance Index (LPI) data that were released by the World Bank at the end of 2018 showed that the performance of Indonesian logistics industry improved, moving up to the 46thposition from the previous year’s 63rd position. However, the positive achievement still has not been accompanied by the reduction in logistics costs.

The success of the government in building various infrastructure projects that will support logistics activities, such as toll roads, ports, or sea toll roads, is predicted to cut down logistics costs.

"We truly support the development of infrastructures, including the construction of toll roads, the upgrade of some airports, the establishment of sea toll roads, and the procurement of fast trains. They're expected to accelerate logistics distribution process that can cut down economic costs," Bogor Agricultural University economics expert Didin S. Damanhuri told Indopos.co.id, Tuesday (October 16, 2018).

SELOG as a subsidiary of PT Serasi Autoraya (SERA) which operates in logistics service sector is part of the very promising industry. Even with the current infrastructures, SELOG is committed to give the best of many kindsof services to the people.

One of the services SELOG provides is contract logistics. The service fits the customers who want to focus on their core competence to increase business profit throughlogistics service that is integrated from the planning, implementation, to monitoring process.

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