Rupiah Weakens, Depressed Shipping Industry

By : Ridwan And Aldi Firhand. A | Wednesday, September 19 2018 - 19:52 IWST

Carmelita Hartoto, Chairman of the Indonesian National Shipowners Association (INSA) (Foto Ist)
Carmelita Hartoto, Chairman of the Indonesian National Shipowners Association (INSA) (Foto Ist)

INDUSTRY.co.id - Jakarta, Strengthening the exchange rate of the United States (US) dollar against the rupiah depresses the performance of the logistics sector, including the shipping industry. The reason is, this sector conducts more transactions and other payments in US dollars. As a result, this sector needs to take efficiency measures strictly.

This was conveyed by Carmelita Hartoto, Deputy Chairperson of the Indonesian Chamber of Commerce and Industry for Transportation, who is also the Chairperson of the Indonesian National Shipowners Association (INSA) DPP in Jakarta (18/9).

"Our revenues are large in Rupiah but there are many operating expenses in US dollars, in this case like spare parts so we hope that in the future our industry will be built faster and provide convenience to entrepreneurs who want to build industries in the region," Carmelita said.

According to him, many spare parts were imported from abroad and purchased in US dollars due to domestic unavailability.

This is what makes the exchange difference, because of income in Rupiah but expenditure in US Dollars, therefore he asks the government to develop a logistics support industry.

"We are encouraging the industry to be built as soon as possible, for example, just like small nuts and bolts that are still from abroad, the industry is not here, so we have to buy from the outside," he continued.

But he is confident that with the current government's focus on developing the world's maritime axis, the industry that is related to logistics and supply chains in the future will also be good.

What is clear, he hopes the government provides facilities for logistical actors so that their business continues to grow.

So far around 90% of shipments of export-import goods use foreign vessels paid using US dollars. Thus, when the rupiah weakens, the cost of logistics becomes an additional burden.

News Comment

Today's Industry

Mechatronic Calotte Loader mWL.cs

Sabtu, 23 Januari 2021 - 17:50 WIB

Mechatronic Systemtechnik Unveils Proprietary Calotte Loader mWL.cs

A fully automated stand-alone system for transferring wafers between cassettes and calottes, the mWL.cs provides integrated device manufacturers (IDMs) an opportunity to increase yield and improve…

Synopsys Software

Rabu, 13 Januari 2021 - 18:40 WIB

Synopsys Recognised as a Leader in Static Application Security Testing by Independent Research Firm

Synopsys receives highest score among 12 SAST providers in current offering category.

Electro-Balancer (E-Balancer)

Rabu, 13 Januari 2021 - 16:00 WIB

ZASCHE Handling Rolls Out New Range of Electric Balancers

the E-Balancer is a versatile tool suited for a broad range of heavy-duty industrial applications.

Taylor Armerding, Software Security Expert at Synopsys Software Integrity Group (Photo by Linkedin)

Rabu, 13 Januari 2021 - 15:40 WIB

What is the Cost of Poor Software Quality in the U.S.?

And if you doubt its credibility, or that it applies to software, check out the latest report from the Consortium for Information & Software Quality (CISQ), in partnership with Synopsys, “The…

Nivedita Murthy - Senior Security Consultant, at Synopsys Software Integrity Group

Jumat, 08 Januari 2021 - 17:35 WIB

DevSecOps: The good, the bad, and the ugly

DevSecOps is the practice of integrating security into every stage of the DevOps pipeline.