The G20 and B20 Summit in Bali has encouraged so many benefits. The summit has attracted more investment to the country (Indonesia), including in the sector of logistics and supply chain, according to Yukki Nugrahawan Hanafi, Chairman of Indonesia Logistics and Forwarders’ Association.
Even, in a bid to ensure global supply chain connectivity, the as the Presidency of G20, Indonesia has introduced concrete deliverables or a list of project proposals, programs or real initiatives as a new approach to achieving these goals.
“The global supply chains was a key issue on top discussion during G20 and B20 Summit. Moreover, Indonesia has succeeded in showing the world its success in maintaining a trade balance surplus for 22 consecutive months since May 2020 amidst the spread of COVID-19,” Yukki said in a press statement this morning (Tuesday, November 22, 2022).
“This certainly opens up more opportunities to attract world investors to invest in Indonesia, especially in the logistics sector which is recovering faster than other sectors,” Yukki added.
Yukki admitted that the logistics industry remained the sector firstly affected by the pandemic, but also the fastest getting recovery.
However, since Indonesia’s logistics and transportation sector is a part of the global supply chain, it needs a tighter collaboration for a better success. “For example, we have to build a tighter collaboration with information technology (IT) companies that support the logistics industry.”
In addition, Yukki who is also Chairman ASEAN Federation of Forwarders’ Association (AFFA), collaboration can also be done by utilizing logistics facilities that have not been operated optimally so that national products are able to be globally competitive.
He said that the Indonesian government continues to improve logistics and national supply chain problems to be effective and efficient by taking four ways.
First, by prioritizing infrastructure development in national strategic projects, including land roads, railways, ports and airports to ensure that access to national supplies continues to be connected.
Second, Indonesia continues to develop special economic zones to improve connectivity among logistics stakeholders.
Third, the development of a digital system that is integrated with the national logistics economic platform, covering the traffic of goods and documents to customer lists.
Fourth, Indonesia has so far encouraged logistics improvements with e-commerce and the initiation of start-up companies to collaborate to reach the logistics market place.
Kadin Encourages UMKM
Yukki, who is also Coordinating Vice Chairman of Organization, Legal Affairs, and Information for Kadin (Indonesia Chamber of Commerce and Industry) and directly involved in the G20 and B20 Summit, underlined that the collaboration and synergy is also needed for development of micro, small, and medium-scale businesses (UMKM). The collaboration and synergy, he said, is done among government, private sectors, and UMKM.
“Capital assistance and technical assistance to market access are needed to upgrade the UMKM. Collaboration and synergy can be done through these,” said Yukki.
The G20 and B20 Summit in Bali is a momentum to show the world that Indonesia is a big country. Yukki said that currently the world is facing various challenges, starting from the energy transition, as well as the threat of various crises such as the economy, food, health, and other problems more.
“Therefore, we continue to encourage the MSME development model in Indonesia to be stronger and wider at the global level,” said Yukki.
The G20 Summit has successfully made a joint declaration called the G20 Bali Leaders’ Declaration. The G20 Summit also produced a number of concrete achievements. These achievements include, among others, the formation of a pandemic fund which to date has reached 1.5 billion United States (US) Dollars. Another achievement was the establishment and operation of a resilience and sustainability trust (RST) under the International Monetary Fund (IMF) amounting to USD 81.6 billion to help countries facing crises. Another achievement related to the energy transition mechanism in which Indonesia received a commitment from the just energy transition partnership (JETP) of US$ 20 billion.