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National Entrepreneurs to invest IDR15 trillion in logistic this year

JAKARTA: Indonesian Chamber of Commerce and Industry (Kadin) will invest IDR15 trillion in logistic this year for procurement of short-sea shipping vessels.

Vice Chairman of Trade, Distribution, and Logistic Natsir Mansyur stated that such procurement will be carried out by importing 2,500 small vessels with a capacity of 1,500-3,000 from China. As planned, those vessels will serve interisland distribution and its procurement begins this year until the next 5 years.

 “We will import 500 units each year using loan facility from Investment Coordinating Board,” he said on the sideline of the 2013 Government Working Meeting, Monday (1/28).

He added that Kadin has cooperated with several banks for this vessel procurement, including Bank Mandiri. This is one of Kadin’s contributions toward the Government’s efforts to reduce logistic cost to 10% in 2015. “Tight time, we have two more years left. This is the business world’s effort in reducing logistic cost,” he said.

Currently, logistic cost for interisland distribution in Indonesia is more expensive compared to distribution for export needs.

This procurement of short-sea shipping vessels is expected to reduce interisland logistic cost.

The vessel procurement requires supporting infrastructure in form of small port. Therefore, the Government needs to accelerate its establishment.

“Port establishment must be accelerated and there are 40 small ports. Kadin will prepare the vessels, while the Government establishes the port infrastructure,” he said.

Natsir also expects the dwelling time to be accelerated to 3-2 days from currently 6.7 days and the payment transaction in port should use IDR currency rather than US$.

“This is a hard work for the Government and business world. It’s not easy to reduce logistic cost, particularly food logistic cost,” he added. (msw)

Source: http://en.bisnis.com/articles/national-entrepreneurs-to-invest-idr15-trillion-in-logistic-this-year

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