General Chair of the Indonesian Logistics Association (ALI) Zaldy Ilham said, there were four causes of high logistics costs in Indonesia. The fourth is that the volume of goods flows is not balanced, infrastructure is inadequate, subsidies are temporary, and are often repaid by State-Owned Enterprises (BUMN).
He further explained, the cause of the first high logistics costs was the non-balanced flow of shipping and return from containers. Most when sent then return it in an empty position.
“The volume is not balanced in Java and outside Java. The classic problem is to send containers to Sorong and to the US cheaper to the US, to Sorong because there is no return,” he said in Jakarta, Wednesday (02/08/2017).
The second cause, Zaldy added, was due to the high cost of infrastructure. The high cost of transportation should be addressed by the government by providing subsidies.
“Then the second cause of logistics costs is high because transportation infrastructure is inadequate. If we look at the infrastructure that is inadequate, the government if it wants to reduce logistics costs in East Indonesia, give subsidies to shipping and flights,” he said.
He continued, the third cause was temporary subsidies from the government were not effective. The money should be used to build transportation facilities and infrastructure.
“Third, if we look at subsidies that are permanent rather than given to shipping that will run out, it will be better to the port. So, the waiting time will not be long, turn over ships quickly and those who take profits are not only Pelni but all, long-term,” said Zaldy.
The last cause, he continued, came from state-owned companies that like to charge fees to logistics companies. This was judged to be similar to illegal levies but carried out structurally and systematically.
“Fourth, state-owned enterprises are one of the main logistical costs. BUMNs that increase the cost of logistics tariffs are similar to illegal fees. Big profits in BUMN are used from service users, you are happy, we are difficult, it’s not right,” he concluded .
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