The Indonesian Logistics and Forwarders’ Association (ALFI/ILFA) will host the International Federation of Freight Forwarders Associations Regional Asia Pacific (FIATA RAP) Meeting at Merusaka, Nusa Dua, Bali on July 11-12, 2024.
Entitled “The Future of Logistics Investment: Navigating Towards Sustainability,” the meeting that is done on the sideline with the ALFI Meeting of National Executive Boards (RAPIMNAS) will be officially opened by Indonesia Vice President Mr, Ma’ruf Amin.
Talking to pre meeting press conference, FIATA-RAP Chairman Yukki N. Hanafi said that this event brings together industry leaders, investors and stakeholders from all over the world, especially Asia Pacific. He said this meeting will discuss the future of investment in the logistics sector and how to build sustainability in global supply chains.
In addition to Mr Vice President, some Indonesia ministers will also join the meeting, including Minister of Transportation Budi Karya Sumadi and Minister of Tourism and Creative Economy Sandiaga Uno. FIATA President Turgut Erkeskin will also join.
In the FIATA – RAP 2024 panel discussion, meanwhile, top executives from some institutions and corporates will become speakers, including Deputy for Investment Planning, Ministry of Investment/BKPM, PT Pelindo (Persero), PT Kilang Pertamina Internasional (KPI), PT Pertamina International Shipping (PIS), and FIATA representatives.
“As many as 200 national and international logistics entrepreneurs will join the meeting. Meanwhile, the panel discussion will explore new business potential, either through strategic partnerships, investment, asset management, tax consulting, or adopting technology that increases operational efficiency. and competitiveness,” Yukki told the press on Wednesday, July 10, 2024 in Merusaka.
Meanwhile, Chairman of ALFI/ILFA Akbar Djohan said that international benchmarks noted that the global freight and logistics market is expected to grow to USD 18.69 billion in 2026, with an average annual growth rate (CAGR) of 4.4 percent. The logistics freight forwarder market includes sales of services by companies that transport goods and commodities by land, sea and air. This includes carrier warehousing, transportation, shipping, and packaging.
In Asia Pacific, Mordor Intelligence said the value of the logistics and forwarder market will reach USD 3.55 trillion in 2024, which is expected to reach USD 4.56 trillion in 2029. “With a total of around USD 3.9 trillion, the logistics market in the Asia Pacific region is the largest globally, driven by increasing demand from the manufacturing sector and the expected return to use of space from the e-commerce sector,” said Akbar.
He said the logistics sector in Indonesia continues to show positive growth, even though it is faced with global challenges. In 2023, the logistics sector’s contribution to national Gross Domestic Product (GDP) will reach around 5.5 percent, with annual growth of 7 percent. This growth is driven by increasing trade volumes, infrastructure expansion, and the adoption of new technologies in supply chain management.
“Investing in green technology and sustainable logistics solutions is no longer an option, but an urgent necessity. The use of technology such as Artificial Intelligence and Big Data in supply chain management has shown significant efficiency, reducing operational costs by up to 20 percent and carbon emissions by up to 15 percent,” he explained.
The logistics industry in Indonesia, explained Akbar, is at a critical crossroads facing both challenges and hopes. Geopolitical crises in Europe, Asia and North Africa, increasingly stringent regulations, trade wars and changing market dynamics are challenges. On the other hand, there is a great opportunity to innovate and adapt to technological developments and changing industry trends.
The FIATA-RAP Meeting 2024 will be a platform to discuss various challenges and opportunities in the logistics industry. “In addition to bringing together new ideas, FIATA member participants can also formulate ideas and proposals to regulators and governments of each country regarding support for the logistics sector,” he said.
FIATA President Turgut Erkeskin expressed optimism about the future of the sector. “Through the FIATA-RAP Meeting, we can find effective solutions and strategies to encourage sustainable investment in the logistics sector. This meeting is a golden opportunity to exchange insights and innovative ideas for a better future,” said Turgut.