President Jokowi Inaugurates 11 Logistics Centers

President Joko “Jokowi” Widodo said that the current logistics cost in Indonesia does not make any sense because it is higher than other countries, such as Malaysia and Singapore. Indonesia’s logistics cost reaches 24 percent of the Gross Domestic Product (GDP) or Rp 1,820 trillion per year. According to the President, Indonesia’s industry becomes less competitive with other countries due to the inefficient logistics cost.

The President added that there are several reasons behind the very high price of logistics in Indonesia. One of them is because many import industrial raw materials have been piled up in other countries, such as Singapore and Malaysia. The same situation also happens to export goods; the materials have been piled up in Singapore and Malaysia while waiting for the buyers. The President took an example when Indonesia bought cotton, it will be piled up in other countries.

“If we can not resolve this problem, we can not compete with other countries. It does not make sense, while the production of cotton is done in Indonesia, the storehouse is in other countries. We can not do that. Bring it to our country,” President Jokowi said when inaugurating the facilities of Bonded Logistics Center (PLB) in Cakung, Jakarta, on Thursday (10/3) morning.

Therefore, President Jokowi reminded ministries and institutions to continue to improve and develop an efficient system, including those related to PLB which was inaugurated today. Thus, Indonesia shall not be left behind and could compete in this era of competition.

“We have to change everything quickly, if we don’t, I ensure you that we will be left behind. Our country will be left behind,” the President said.

Dwelling Time

On that occasion, President Jokowi also mentioned the time needed to dwell goods in the seaport or in other words the dwelling time.

The President asserted that he will continue to observe logistics process and distribution of goods, including the dwelling time. The President mentioned that dwelling time in Indonesia takes 4-5 days, while in other countries such as Singapore and Malaysia, it just takes 1-2 days.

According to President Jokowi, if other countries are able to shorthen the time, Indonesia must be able too, so that the efficiency could be achieved. “Do not let dwelling time put us at disadvantages anymore,” the President firmly said.

The President hopes through the establishment of the PLB, it could be a solution for national logistics problems. The President assessed that the establishment of PLB could tighten the gap between business doers and raw materials so that Indonesia’s industry can be more competitive because we can get raw materials quickly and at lower price. ”A swift process and service will bring efficiency to the country,” the President added.

With the PLB, President Jokowi believes that national logictics cost will reduce, dwelling time in seaport will be accelerated, and it will attract investment for the sake of national economic growth.

“I hope business doers in PLB could move the heap of goods from overseas to this place,” the President said.

In the event, there are 11 PLBs which were inaugurated. They are located in various locations and store various goods, such as:

1.  PT Cipta Krida Bahari, in Cakung, Jakarta, which stocks goods for oil and gas, as well as mining supporting industries;

2. PT Petrosea Tbk, in Balikpapan, East Kalimantan, which stocks goods for oil and gas, as well as mining supporting industries;

3. PT Pelabuhan Panajam Banua Taka, in Balikpapan, East Kalimantan, which stocks goods for oil and gas, as well as mining supporting industries;

4. PT Kamadjaja Logisticss, in Cibintung, West Java, which stocks goods for food and beverage supporting industry;

5. PT Toyota Motor Manufacturing Indonesia, in Karawang, West Java, which stocks goods for automotive supporting industry;

6. PT Agility Internasional, in Halim, Jakarta, and in Pondok Ungu, West Java, which stocks goods for personal care/home care supporting industry;

7. PT Gerbang Teknologi Cikarang (Cikarang Dry Port), in Cikarang, West Java, which stocks goods for textile (cotton) supporting industry;

8. PT Dunia Ekspress, in Sunter, Jakarta, and in Karawang, West Java, which stocks goods for textile (cotton) supporting industry;

9. PT Khrisna Cargo Internasional, in Benoa and Denpasar, Bali, which stocks goods for medium and big supporting industries;

10. PT Vopak Terminal Merak, in Merak, Banten, which stocks goods for synthetic textiles (chemical products) supporting industry;

11. PT Dahana (Persero), in Subang, West Java, which stocks goods for oil and gas, as well as mining (explosives) supporting industries;

Until the end of the year, as many as 50 PLBs are planned to be established around Indonesia and it will be developed into logistics hubs in Asia Pacific.

Attending the inaguration were Minister of Finance Bambang Brodjonegoro, Minister of Communication and Informatics Rudiantara, and the officials of Directorate General of Customs and Excise. (FID/ES)(RAS/MMB/YM/Naster)