Indonesia Shipping Agencies Association (ISAA) encourages members to do innovation, adaption, and transformation with the trend within the industry (shipping). Since the shipping industry continues changes in line with the application of updated information and technology (IT), ISAA members are expected to go digital.
Such conclusion has been called by the ISAA executive boards and some key speakers for this association’s national yearly-meeting (Rakernas) 2021. ISAA Rakernas conducted on December 9, in Jakarta, highlighted the future opportunities and challenges within the business, especially some challenges coming from the digitalization trend.
On his welcoming speech for the Rakernas, ISAA Acting Chairman Rheinhad LB Tobing explained both the association and members have actually understood with the trend, saying many ISAA members have taken some key steps to go digital.
“We are ready to go digital (digitalization). In addition to consolidation and update the association programs, digitalization is on our top talk on this Rakernas,” Rheinhad said.
Executive boards of ISAA chapters nationwide joint this Rakernas, including DPW/DPC DKI Jakarta, North Sumatera, Gresik, West Sumatera, Jambi, Riau, Lampung, Batam, Tanjung Pinang, Bangka Belitung, South Sumatera, Bengkulu, Banten, West Kalimantan, South Sulawesi, North Sulawesi, West Java, East Nusa Tenggara (NTT), Sunda Kelapa, Cilacap, Maluku, Central Java, Patimban, East Java, North Kalimantan, East Java, and Samarinda.
For Competitiveness, Logistics Efficiency
On his keynote speech for the Rakernas, Mugen S. Sartoto, Director for Sea Traffic at Directorate General of Sea Transportation reminds some challenges the shipping agencies will face in the future. In addition to the challenges from this digitalization trend, Mugen also expects all shipping agencies to support the government program creating logistics efficiency.
“There are some challenges of this business in in the future. First is our lower logistics performance index compared to our neighbours and our higher logistics cost compared to GDP. Second, the trend in digitalization in which our neighbours are probably more adaptable with it, making them more competitive in the global market,” Mugen noted.
According to Mugen, adoption of digital service, including in the shipping agent sector, is a must, in addition to build up their competitiveness and to support the national logistics efficiency.
Mugen encourages shipping agencies to take advantage of digitalization in their business activities and not have to worry about technological advances that continue to develop at this time.
“No need for shipping agencies to worry about digitalization, but they have to be prepared with strategies to compete in the current era of technology 4.0,” he recalled.
Mugen affirmed some potential consequences of current technological changes and advancements (disruption) that lead to digitalization in various business activities, including jobs lost. “But, but there will be new opportunities from this disruption process,” he said.
“What I am saying is that if the shipping agents only rely on normal practices, it is possible that later they will no longer survive because shipowners can also apply for activities (ship services) by application or online,” he said.
He also emphasized that ship agency companies should not be afraid to compete openly with similar businesses.
Keep Solidity
Meanwhile, Juswandi Kristanto, former ISAA Chairman, reminds the association and all members to keep solidity in facing the future challenges in this sector. Juswandi has just retired from ISAA Chairman and decided to focus on handling Indonesia Stevedoring Companies Association (APBMI). Juswandi has been just appointed as Chairman of APBMI for the 2021-2026 period.
“There will be more challenges this association and business will face in the future. In addition to be ready with digitalization and human resources, keeping solidity among the members is also so crucial,” Juswandi said.
As one of founders of the association, Juswandi reminded that to make this association in this position, ISAA has come through some ‘stormy steps’, especially in getting acknowledgement from the government and in making this business covered by the Indonesia’s law and regulations.
“So, I really expect that we can keep solidity. There will be more and more challenges in the future,” he said.