Indonesia logistics industry will be benefited from the high investment the country enjoyed last year as the investment would trigger higher cargo delivery, people movement, and financial transaction, Chairman of Indonesia Logistics and Forwarders’ Association (ALFI/ILFA) Yukki Nugrahawan Hanafi has said.
The Investment Coordinating Board (BKPM) noted that investment realization in 2021 totalled Rp901.02 trillion, slightly higher of the target which was contracted to Rp900 trillion. This investment was allocated to more than 133,258 projects and absorbed as many as 1.2 million employees.
“I am absolutely sure that these 133,258 projects require logistics. It is certain that an investment activity will encourage the movement of people, goods and money,” he said at Angkasa Pura Logistik (APLOG) Logistics Forum Webinar, Wednesday (16/2/2022).
Yukki further explained that logistics services to support investment projects in Indonesia are also getting more and more evenly distributed. This is in line with the investment trend that is increasingly balanced regionally between Java and outside Java.
BKPM data explains that investment trend was still more centralized Java in 2019, absorbing 53.7% of total investment. Then until third quarter in 2020 (Q3 2020), investment outside Java was bigger, reaching 52.0%, versus Java 48.0%.
This investment composition distribution has changed the spectrum of logistics activities, according to Yukki. He gave an example that logistics in Eastern Indonesia was still lower in line with the lower investment. Lower investment causes the limited movement of people and goods in the area. Activities were centralized in Java and Sumatra.
As a result, Yukki said, the logistics costs in Eastern Indonesia would be much more expensive than those in Java and Sumatra.
He appreciates the massive infrastructure development in President Jokowi’s first term of government. The investment of infrastructure projects in Eastern Indonesia has triggered higher logistics activities.
On the same occasion, Director of Operations of PT Angkasa Pura Logistik (AP Log) Troficiendy Suroso said that logistics services in Indonesia would continue to experience growth for the next five years. He claimed that logistics has helped the business activities of at Angkasa Pura during 2021.
“In 2021, Angkasa Pura business was mostly contributed by logistics activities,” he explained.
Troficiendy predicts the same trend will continue in 2022. He is optimistic that this will happen in line with the assumption of growth and development in the manufacturing industry. Troficiendy’s optimism also stems from developments in the e-commerce, which is also predicted to continue to grow in the future.
“We must also carry out this logistics with optimism that I am very sure that it will be better than 2021. Because, from the last one, we also know that e-commerce will be booming in 2022,” he said.