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

Fuse, The insurtech companies

Jumat, 26 November 2021 - 16:11 WIB

FUSE Being The Only Insurtech From Indonesia Included In "The World's Top 100 Insurtech 2021"

Sønr Global, the world's leading market intelligence platform designed specifically for the insurance industry, along with leading consultant Ernst & Young (EY), have just released the World's…

PT Dharma Polimetal Tbk's advanced robot technology to produce electric vehicle components

Jumat, 26 November 2021 - 15:00 WIB

Ahead of IPO, DRMA Stimulates Electric Vehicle Component Business Opportunities in Indonesia

PT Dharma Polimetal Tbk (“DRMA”), an automotive component manufacturing company belonging to the Triputra Group which is planning to conduct an Initial Public Offering (IPO) at the end of…

Dr Maria Corlianò Co-Founder and Chief Technology Officer, OSbiome

Jumat, 26 November 2021 - 14:10 WIB

OSBIOME: Personalised Self-Care Platform For Optimum Health Management Through The Gut

Discussing gut issues such as bloating, diarrhoea and constipation with your partner, family or close friends can be embarrassing and disheartening. Many also tend to shrug off the pain and…

Citi Indonesia CEO, Batara Sianturi

Jumat, 26 November 2021 - 13:25 WIB

Citi Indonesia Posted Rp869 Billion in Net Income during Third Quarter of 2021

Citibank N.A., Indonesia (Citi Indonesia) posted a Net Income of Rp869 billion during the third quarter of 2021. The earning is lower than the same period last year, driven by lower trading…

Cybersecurity Jobs. PHOTO: Cybercrime Magazine.

Rabu, 24 November 2021 - 21:00 WIB

What vulnerabilities and security issues plague web and mobile apps?

One of the most compelling reasons organisations use third-party application security testing is to extend their own software security testing capability when circumstances make adding new resources…