Logistics Industry Facilities Encourage to Increase Competitiveness

By : Hariyanto And Aldi Firhand. A | Friday, March 23 2018 - 21:23 IWST

Logistic Ilustration
Logistic Ilustration

INDUSTRY.co.id - Jakarta- The Ministry of Trade (Kemendag) continues its efforts to boost national trade competitiveness and Indonesia's economic growth by optimizing the role of logistics industry facilities in the country.

Head of the Trade and Development and Trade Development Agency (BPPP) of the Ministry of Trade, Kasan said the importance of the logistics sector is seen from the placement of the sector as one of the six policy reform areas set forth in the 15 Economic Policy Package.

"From all the Packages of Economic Policy, there are three packages, they are Package 2, 9th and 15th which are directly aimed at improving national logistics in order to support the competitiveness of Indonesia," said Kasan in a written statement received on Thursday 22/3/2018)

One of BPPP's efforts to improve the competitiveness is by conducting dissemination of the results of the assessment and development of the trade sector with the theme "The Role of National Logistics in Supporting Export Competitiveness and Food Price Stability".

Kasan explained that BPPP has conducted a number of studies related to the role of logistics facilities to improve trade performance, among others by looking at the role of Bonded Logistics Center (PLB) and Warehouse Receipt System (SRG).

BPPP has conducted an evaluation study of the benefits of a bonded logistics center in order to support the competitiveness of national industries and the implementation of SRG assessment of specialty coffee plantation commodities.

"Both of the results of this study are expected to provide an overview of PLB and SRG as logistics facilities that can support the trade competitiveness and price stability of agricultural and plantation products," explained Kasan.

Based on the results of the study, the existence of PLB in general can improve the performance of national logistics because it provides improvements in terms of cost and logistics time. Especially in the case of delivery of raw materials suppliers to the PLB warehouse, delivery of goods from the warehouse PLB to business actors, and the time of storage of raw materials.

Therefore, the Ministry of Trade will continue to encourage the use of PLB facilities for business actors, especially to improve the performance of export-oriented industries.

Meanwhile, to support the stabilization of prices of agricultural and plantation products, the utilization of SRG coffee commodities should also continue to be encouraged as facilities that benefit farmers.

The study results show that coffee storage, especially arabica species for a month after the harvest, will benefit farmers rather than sell directly at harvest time.

In an effort to optimize the marketing of coffee commodities, the Ministry of Trade will also encourage the integration of SRG with special export marketing channels and auction markets.

On the same occasion the Inspector General of the Ministry of Trade, Srie Agustina added, logistics is very important in supporting food price stability and export performance. Therefore, the government will continue to seek new breakthroughs to improve the performance of national logistics system in line with the construction of logistic support facilities.

In addition, support from all parties is also needed for Indonesia's logistics performance more efficient, cheaper, and able to compete with neighboring countries.

"We hope that this forum will create a comprehensive policy recommendation for the improvement of the logistics sector through the thoughts of government agencies, business actors and universities," Srie said.

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