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Prabowo Subianto and Gibran Rakabuming Raka have officially assumed the roles of President and Vice President of Indonesia, starting on 20 October 2024. Their inauguration and oath-taking ceremony took place at the House of Representatives (DPR & MPR) Building in Jakarta.
As the Prabowo-Gibran presidency begins, there are numerous hopes and suggestions to tackle existing challenges, particularly in the economic sector, with a focus on the logistics industry.
Business actors in the logistics industry continue to face numerous problems and challenges. The logistics sector, which is vital for the national economy, not only impacts people's livelihoods but also stimulates overall economic growth at the national level.
For example, Hedy Rahadian, the Chairman of the Indonesian Road Development Association (HPJI), highlighted these issues during a public seminar held in mid-September at the University of Indonesia in Salemba, Central Jakarta.
See also: Direct Impacts of Toll Road Network on the Logistics Business
Hedy, a former Director-General of Highways at the Ministry of Public Works and Housing, identified three key factors that continue to challenge the logistics industry:
Inefficiency due to poor road infrastructure leads to delays in the delivery of industrial raw materials and the distribution of manufactured goods.
Traffic jams significantly affect delivery times, which in turn increases logistics costs and
Road damage caused by over-dimensional overload (ODOL) trucks costs the country tens of trillions annually.
“Moreover, logistics activities in Indonesia heavily depend on land routes, accounting for up to 90 percent of the total. The remaining transportation methods consist of sea lanes and railways. It’s crucial to address these issues and challenges to ensure that our logistics costs remain affordable and don’t burden the consumers," stated Hedy.
In addition to these three factors, Setijadi, the Chairman of Supply Chain Indonesia (SCI), has identified the high cost of logistics as an urgent issue that needs to be addressed. According to the SCI website, he highlighted that these elevated logistics costs could contribute to rising inflation in the country.
This concern is significant given that Bank Indonesia has projected national economic growth of 4.7 to 5.5 percent in 2024 and 4.8 to 5.6 percent in 2025.
See also: Logistics Industry to Contribute More Significantly in 2024
Despite this, inflation is expected to remain under control at around 2.5 percent, plus or minus 1 percent, in 2024 and 2025. This stability is supported by consistent monetary, fiscal, and National Movement of Food Inflation Control (GNPIP) policies.
Setijadi highlighted the need for a more comprehensive approach to the logistics sector in efforts to control inflation. He pointed out that food logistics costs are still relatively high, representing around 20-40 percent of commodity costs.
“Therefore, improving the efficiency of the logistics system is crucial to maintaining the inflation rate,” he stated.
Businesses must also achieve logistics efficiency by utilizing quality logistics services. Choosing a professional logistics company with high credibility is essential.
A business line of PT Serasi Autoraya or SERA and part of Astra Group, SELOG has extensive experience in the logistics and shipping industry.
SELOG is here to serve the needs of customers in end-to-end logistics through a series of diverse services, such as Contract Logistics, Shipping Services, Shipping Agency, Freight Forwarding, and Warehouse and Yard Management.
See also: 4 Types of Warehouses Based on Needs
We offer domestic cargo shipping services via quality sea transportation, focusing on the automotive, heavy equipment, and other cargo industries.
We collaborate with S5 Agency World, Asia’s largest shipping agency, to provide comprehensive shipping solutions.
Our freight forwarding services ensure the safety, punctuality, and zero-defect transportation of heavy equipment and other cargo using various modes of transportation.
We provide warehousing and storage services for your supply chain needs, utilizing a Warehouse Management System (WMS) to continuously track receipts, picking, shipping, detention, damaged goods, and completed orders.
WMS allows customers to monitor real-time inventory status. In addition, SELOG also provides additional services of inbound and outbound transportation to ensure that the goods arrive safely without any damage.
See also: Some Common Issues in the Logistics Industry
SELOG services are also supported by cutting-edge digital technology, which makes 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.