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The term logistics is becoming increasingly familiar to Indonesians as new business sectors emerge and grow while the existing ones continue to develop, prompting people to understand what it actually is.
Several literatures quoting experts’ opinions define a logistics business as an activity involving the planning, controlling, and organizing of goods and services movement from one place to another. This activity includes transporting, warehousing, processing, packaging, and goods distribution.
Along with human resources, a logistics activity also requires transportation from land transportation, such as cars, pickup trucks, trucks, and trains, to other transportation modes like ships and planes.
See also: Get to Know Types of Cargo Ships As Logistics Transportation
Logistics is one of the promising business sectors in Indonesia. According to Supply Chain Indonesia, the country’s logistics business is estimated to reach IDR 4,000 trillion by 2024.
Many business players and economic observers believe that the 2024 General Election does not seem to negatively impact the logistics sector.
Some sectors will indeed benefit from the community’s increased consumption during the election.
In addition to food and beverages, other sectors, such as the clothing, textile, and campaign paraphernalia industries, are also expected to surge in demand.
Moreover, in the 2024 Draft State Budget (APBN), the government and the House of People’s Representatives (DPR) agreed to use APBN as a reliable policy instrument to address economic volatility in 2024.
The government has determined the state budget to be IDR 3,325.1 trillion, of which IDR 2,467.5 trillion is allocated to central government spending. The spending is focused on strengthening the allocation, distribution, and stabilization functions. The remaining IDR 857.6 trillion will be allocated to regional governments.
See also: Logistics Services vs Freight Forwarding: Understanding The Distinctions
The APBN has been drafted with the macroeconomic growth assumptions projected to be 5.2 percent, inflation at 2.8 percent, and the exchange rate at IDR 15,000 per US dollar.
To achieve these macroeconomic assumptions, the national economic performance is strengthened with a focus on the industrial, trade, agricultural, mining, and construction sectors.
However, the largest share is the industrial sector, especially the consumer sector, as one of the most significant contributors to economic growth.
In other words, the import of raw materials will remain significant. The export of industrial, agricultural, plantation, and mining products will also continue to be significant. All these operations will involve logistics activity.
The Chief of National Single Window (LNSW), Agus Rofiudin, stated that the government has reaffirmed its commitment to strengthening the key sectors driving the economy.
This is achieved through implementing the National Logistics Ecosystem (NLE), a government’s strategic move to face challenges of logistics performance in the future so it can make the maximum contribution to economic growth.
See also: What You Need to Know About RORO Ships: Types and Functions in Logistics
Furthermore, the key sectors of economic growth, such as consumption, industry, trade, agriculture, and construction, are still expected to perform well in 2024. However, they are confronted with inefficiency in logistics operations, leading to high costs.
Data from the World Bank in the Logistics Performance Index (LPI) 2023 stated that Indonesia’s logistics performance still ranked 63rd globally with a 3.0 score. The national logistics cost is still relatively high at 14.29% of gross domestic product (GDP).
Hence, for businesses in consumer products, textile, agricultural and plantation processing, or other industries, choosing a reliable and professional logistics company is essential.
SELOG is one of the best options available in Indonesia. It is part of PT Serasi Autoraya or SERA, a subsidiary of PT Astra International Tbk, with experience in this industry for decades.
Initially established to provide vehicle rental solutions, SERA has become the largest, industry-leading transportation provider.
With over 32 years of experience, SERA continues innovating, providing effective, efficient, and high-quality logistics services through SERA Logistic (SELOG).
SELOG is here to serve the customers’ needs in end-to-end logistics through diverse services, including Contract Logistics, Shipping Services, Shipping Agency, Freight Forwarding, Warehouse and Yard Management, and Courier Services.
SELOG services are supported by cutting-edge digital technology, making customers’ businesses easier, more effective, and more efficient.
With its Astra Fleet Management Solution (FMS), SELOG provides businesses in Indonesia with IT-based comprehensive solutions for managing fleet vehicles.