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)
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.
Read Also
H2SITE has Commissioned the First On-Board Ammonia Cracking System…
EDGE Reinforces Presence in Southeast Asia with Impressive Product…
Exploring New Business Opportunities, PORT Prepares Performance Strategy…
NPH Maintains Service Excellence Amid Industry
President Jokowi: Indonesia’s Fishery Products Still Promising…
Today's Industry

Kamis, 30 November 2023 - 21:54 WIB
BCSMF 2023: Progressive Dialogue to Strengthen Democracy in the Asia-Pacific
The sixth meeting of the Bali Civil Society and Media Forum (BCSMF) 2023 was held in Bali, Indonesia (28-29/11). The forum, involving representatives from governments, civil society organizations,…

Kamis, 30 November 2023 - 21:47 WIB
Indonesian Embassy in Lima Hosts Diplomatic Reception Marking 48 Years of Indonesia-Peru Diplomatic Relations
In an effort to enhance Indonesia's diplomatic relations with Peru, the Indonesian Embassy in Lima held a diplomatic reception. This event also celebrated the 78th anniversary of Indonesia's…

Kamis, 30 November 2023 - 21:43 WIB
Enhancing Religious Moderation, Indonesia and Pakistan Hold Interfaith Dialogue
As part of Indonesia's effort and contribution to creating "harmony among civilizations," Indonesia organized the Indonesia-Pakistan Interfaith Dialogue (30/11) in Jakarta. This event marked…

Kamis, 30 November 2023 - 21:39 WIB
Indonesian Foreign Minister and OIC Call for Unified Voice to Stop the Crisis in Gaza
The Indonesian Foreign Minister, together with foreign ministers from the member countries of the Organization of Islamic Cooperation (OIC), held several meetings in New York (29/11) to discuss…

Kamis, 30 November 2023 - 21:30 WIB
President Jokowi: Budget Allocation Must be Well-Targeted
President Joko “Jokowi” Widodo handed over the Budget Implementation List (DIPA) and Transfer to Regions Allocation List for 2024 Fiscal Year, at the State Palace, Jakarta, Wednesday (11/29).
News Comment