Dialogue Series I on Logistics: Harmonizing Regulation and Opportunity for Professional Certification

Jakarta, 25 February 2015

Dialogue Series I on Logistics: Harmonizing Regulation and Opportunity for Professional Certification

Jakarta, February 25, 2015

The role of logistics sector is very significant in transporting goods from producers to consumers. Meanwhile, current policy, regulation, and even unwritten rules many times overlap thus resulted negatively to logistics service providers and end customers. On the other hand, Government program that was designed to advance logistics sector has not always materialized on the ground level.

“Government has launched National Logistic System (Sislognas) which is necessary, but not sufficient. Indonesia also needs Regional Logistic System (Sislogda) because competition in logistics sector is no longer amongst countries, but amongst Provinces in one country,” said Yukki Nugrahawan Hanafi, Chairman of Indonesian Logistics & Forwarders Association during Dialogue Series I Indonesia Services Dialogue (ISD) on Logistics with theme: “Harmonizing Regulation and Opportunity for Professional Certification”.

“Often times, services sectors are overlooked by policy makers. You know why? Because services sectors are harder to quantify, harder to identify, and services data are not always available. We need to engage the Government to join efforts to develop these strategic sectors for national economic development. ISD must stand in the forefront to become think-tank for the Government,” stated Chris Kanter, the Chairman of ISD Board of Founders, in his welcoming speech.

In the Dialogue Series I, which is held in JS Luwansa Hotel, Jakarta, Henry Sandee (Senior Trade Specialist Multi-Partner Facility For Trade and Investment Climate World Bank), Bachrul Chairi (Directorate General International Trade Cooperation Ministry of Trade Republic of Indonesia), Gusmardi Bustami (Senior Trade Policy Advisor Ministry of Trade Republic of Indonesia), Rahman Kurniawan (Country Sales Manager MAERSK Indonesia), and Nofiar Suaizi (Research and Development Agency, Ministry of Transportation Republic of Indonesia) presented materials and ideas about how to improve logistics sector.

Coordination, or lack of, is one of the main reasons why various problems exist in logistics sector. However, with commitment from the current Government whereby ego-sectoral should not be a factor to inefficiency.

“Under former President SBY’s administration, logistics was managed under Ministry of Transportation. Now, under President Jokowi’s administration, logistics sector is coordinated by Coordinating Ministry of Maritime. This change require additional coordination,” added Bachrul Chairi.

Representing private sectors, Rahman Kurniawan from MAERSK Indonesia also shared his view about logistics service from business perspective.

“Logistics’ problem is not merely about transportation, but also distribution of trade. Logistics cost is very high from Ambon to Jakarta. When we transport goods from Jakarta to Ambon, the container is fully loaded. However, when we transport goods from Ambon to Jakarta, the container is mostly half empty which is normal, but radius of distance matters. The longer the distance with empty container, the higher the cost implication,” said Rahman Kurniawan.