Global economy in 2019 was slow down, according to any sources, resulting in a decrease of trade volume among the countries. Many countries, including Indonesia, faced a drop in both export import values.
Indonesia’s total exports last year fell by 6.9 percent to $168 billion, while imports shrank 9.5 percent to $171 billion, according to Central Bureau of Statistics BPS. Many factors caused such drop of Indonesia international trade, some are external pressures, some others are internal.
No doubt, the drop of trade activities has certainly affected the productivity of transportation and logistics sectors, including in port activities. But, how far?
Elvyn G Masassya, President Director of PT Pelabuhan Indonesia II/IPC affirmed such pressures, but fortunately, the port sector still enjoyed a positive growth. In addition to the trade war between US and China, the drop of Indonesia’s international trade in 2019 was also due to the national political event, the president election, according to Elvyn.
However, though there some pressures, but IPC still enjoyed container volume increase, revenue, and net profit, thanks to some appropriate strategies the company took.
In 2019, IPC handled 7.66 million TEUS, a slightly increase from 7.60 million TEUS in previous year. The revenue and profit also increased. The revenue reached Rp 12 trillion, up from Rp 11.4 trillion in 2018. The profit was up from Rp 2.4 (2018) to 2.8 trillion. IPC’s profit exceeded the target of Rp 2.6 trillion in this tough year.
Evlyn admitted the political events reduced the economy activity, while the trade war between China and US also reduced Indonesia’s raw material export to China. But, though there were pressures from them, IPC still enjoyed a slight increase in volume and could create a higher growth in revenue and profit.
“There were some key strategies that can trigger such high revenue and its bottom line (profit),” said Elvyn, named the optimizing the transhipment cargoes and application of digital services that could cut many items of expenses.
(Full version of this article, see it in Indonesia Shipping Gazette Magazine, February 2020 Issue)