There are evidences to say that improved infrastructures in West Java have attracted more and more investment within the province, both national/domestic investment (PMDN) and foreign investment (PMA).
In 2022 for example, West Java investment rate reached Rp 174.6 trillion, one third or around Rp 55.2 trillion was contributed by small-micro businesses.
In view of this, Chairman of Indonesia Logistics and Forwarders’ Association ALFI/ILFA Yukki Nugrahawan Hanafi encouraged logistics providers to optimize this potency. Yukki said it in opening the Focus Group Discussion (FGD) and the 3rd West Java ALFI Regional Meeting (Rapimwil III ALFI/ILFA DPW Jawa Barat 2023).
The FGD and Rapimwil entitled ‘Keberlanjutan Ekosistem Bisnis Logistik dengan Digitalisasi dan Kolaborasi’ – Sustainability of Logistics Business Ecosystem through Digitalization and Collaboration’ – was held in Bekasi, West Java, on July 5, 2023.
Some key guests and participants joining the event include Head of Port Authority (KSOP) of Patimban Port, Head of West Java Customs and Excise Regional Office, West Java Provincial Transportation Agency, Representatives of Bank OCBC NISP, and West Java ALFI members.
In addition, Adil Karim, Chairman of the ALFI DKI Jakarta, Mahendra, Chairman of Indonesian Logistics Association (ALI), West Java Chamber of Commerce and Karawang Chamber of Commerce also joint the event.
ALFI members of more than 3,000 companies throughout the nation, Yukki said, were actually the majority of the small and medium business class (UKM), so that ALFI members in West Java can take a more active role in encouraging the emergence of new entrepreneurs in the transportation and logistics sector.
“Therefore, we have to appreciate the initiation of ALFI West Java to hold this event, considering that West Java is an important pillar of the national economy, and is a supporting area for national business and production centres,” said Yukki.
He also said that global economic conditions were still contracting, even showing negative growth in some of the world’s major economies. On the other hand, the global supply chain map is undergoing a shift, in which the Asia Pacific and ASEAN regions are centres of economic growth and are centres of production and consumption as well.
Quoting some data, Yukki explained that among the ASEAN countries, Vietnam is the main destination for supply chain relocation (from China and the world) due to geopolitics and the impact of the pandemic. However, their growth is already close to a threshold, because Vietnam’s unemployment rate of 2.6% in 2022 is less than half of the average Asia Pacific country which is around 5.7%.
“This creates opportunities for other Southeast Asian countries to facilitate investment through infrastructure development and making policies that make it easier to do across borders business,” said Yukki.
Digitalization to be a winner
Yukki also reminded that digitalization of logistics and business continuity need to be a joint focus in winning future business competition, not only as local players but also as regional and international entrepreneurs.
Therefore, said Yukki, ALFI member companies need to have a plan to ensure their business continuity. He also reminded that every organizational activity has a vision and puts forward the development of a business ecosystem based on collaboration and inclusiveness.
“The potential as well as the challenge for us is how all stakeholders have the same vision and abandon sectoral egos for greater sustainable interests,” said Yukki.
He invites all parties to be grateful because as Indonesia economy continues to improve. Moreover, last year, Indonesia economy was able to grow above 5% while many other countries were still experiencing more than simple economic constraints.
“Even now, at least until July 2023, our economy is still growing and our trade balance is still in surplus,” said Yukki while emphasizing that ALFI also fully supports down streaming programs.
Meanwhile, in his remarks, Chairman of West Java ALFI M Nuh Nasution said the FGD was expected to be a place for discussion to answer future logistical challenges.
“Therefore, the logistics business must be transformed in this era for logistics business actors, by optimizing digitalization,” said Nuh.
He added, with the current economic development in West Java above 5%, it indicates that there is potential for logistics business actors to take part in this logistics business.