Efficient Logistics Encouraging Export Growth

There are evidences to say the efficient logistics services has been significantly encouraging the export growth. The export data of April 2021 has proven it, according to Indonesia Logistics and Forwarders’ Association ALFI/ILFA.

In the meantime, the efficient logistics services, according to ALFI, can be clearly seen in the performance of some Indonesia’s leading ports.

“We hope this performance will sustain thus we can realize our economy growth target as the government has set up for this year,” Yukki Nugrahawan Hanafi, ALFI Chairman said in press statement this morning (Saturday, May 22).

In line with the implementation of National Logistic Ecosystem (NLE), Yukki is so optimistic the logistics service will be more and more efficient, supporting a higher and higher economy growth in the future. The NLE, he said, will fasten the process of export/import delivery order (DO).

“Realizing this, from the beginning, ALFI is so committed to support the implementation of this NLE. As an integrated logistics platform, the NLE will integrate all export import logistics service with any related parties. And, this will create a more logistics service in export import process, of course,” he further said.

Yukki, who is now also the Chairman ASEAN Federation of Forwarders’ Association (AFFA), underlined his optimism for a better logistics performance in the future in line with the government commitment to soon integrate the eight ports with NLE. “This commitment should be appreciated,” he said.

The eight ports that will be integrated with the NLE include Tanjung Priok (Jakarta), Patimban (West Java), Tanjung Emas (Central Java), Tanjung Perak (East Java), Makassar (South Sulawesi), and Belawan Medan (North Sumatera).

“By implementing the NLE, the port services for export import will be more efficient as the dwelling time is shorter,” he said.

Indonesia’s trade activity has demonstrated a good growth, proved by the export/import volume and values in the first quarter (Q12021).  Data from Central Bureau of Statistics BPS says the Q12021 export value reaches US$48.90 billion, increasing 17.11% year on year.

During the period, the export in March led the growth. The March export value reached US$18.35 billion, increasing 20.31% month to month (compared to February 2021) and up 30.47% year on year (compared to March 2020). Just like export, the import in March also grew up the highest. The March import value reaches US$16.79 billion, up 26.55% month to month and 25.73% year on year.

Such export high growth was dominantly contributed by non-oil and gas sector. The Ministry of Industry explained that Indonesia’s trade balances of non-oil and gas enjoyed surplus by $3.69 billion in the first quarter (Q12021), thanks to the increasing export of manufacturing products. The cumulative value of manufacturing export during the period reached $38.96 billion, increased 18.06% year on year.

Minister of Industry Agus Gumiwang Kartasasmita explained that the manufacturing products continued its contribution domination to Indonesia’s export value amid the pandemic Covid-19 outbreak. “During Q1 this year, the manufacturing sector contributed more than 79.66% of the total national export value, which was accounted to $48.90 billion,” he said.

Gumiwang named three leading commodities: food and beverage ($9.69 bln); steel products ($5.87bln); and chemical and related-chemical products ($4.18 bln).

In addition to this data, the recovery of economy and trade in Q1 were also reflected in the export/import volume and the port’s productivity.

Refinement in a number of economic indicators in the first quarter of this year were seen in the performance of trade that shows the imports of raw/supporting material and capital goods that the produced goods will be re-exported. Indonesian manufacturers are on an expansion path throughout the first quarter this year. The export performance also shows significant increase, so in March 2021 reached a surplus in national trade balance.

The export and import activities via Tanjung Priok port in March 2021 also experienced increase. In March 2021, the international volume (throughput) in Tanjung Priok grew double digit, by 18% month to month, while the accumulative for Q1 (January-March) 2021 grew 0.99% year on year.

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