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

PT Surya Esa Perkasa Tbk. (ESSA: IJ)

Selasa, 26 September 2023 - 07:45 WIB

ESSA Secures Gas Contract Extension for LPG Refinery

PT Surya Esa Perkasa Tbk. (ESSA: IJ), a publicly listed company engaged in the Energy and Chemical sectors through its LPG (Liquefied Petroleum Gas) refinery and Ammonia plant today (22/9) announced…

(kiri-kanan) Cahyo (operations manager PT Eco Paper Indonesia), Kuswara ( Direktur ALDO), Herwanto Sutanto (Presdir ALDO), dan Herlambang Putra Sujadi (Direktur PT Eco Paper Indonesia)

Selasa, 26 September 2023 - 06:45 WIB

ALDO Strengthens PT Eco Paper’s Business of Recycled Brown Paper Production

PT Alkindo Naratama Tbk (ALDO), a listed company engaged in the integrated paper and chemical business, plans to inject additional working capital of around IDR 40 billion into its subsidiary…

"CLEO", PT Sariguna Primatirta Tbk (Tanobel Group)

Sabtu, 23 September 2023 - 11:33 WIB

Growing Above Industrial Average, CLEO Strives for Innovation

Producer of bottled drinking water with the brand "CLEO", PT Sariguna Primatirta Tbk (Tanobel Group) targets its sales in 2023 to grow above the average of the bottled drinking water (AMDK)…

PT Inocycle Technology Group Tbk ("INOV")

Kamis, 14 September 2023 - 15:15 WIB

INOV Poised to Absorb PET Recycling Market Potential

The prospects of PT Inocycle Technology Group Tbk ("INOV") a public company in the field of recycling plastic (PET) bottle waste into Recycled Polyester Staple Fiber (Re-PSF), looks bright for…

Participants of the 43rd ASEAN Summit enjoy the gala dinner at Hutan Kota GBK in Jakarta, Wednesday (09/06). (Photo by: BPMI of Presidential Secretariat)

Senin, 11 September 2023 - 09:07 WIB

Indonesian Cuisine, Cultural Performances Enliven Gala Dinner of 43rd ASEAN Summit

President Joko “Jokowi” Widodo and First Lady Iriana Jokowi hosted a gala dinner for leaders of ASEAN member states, partners, and international organizations at Hutan Kota restaurant in…