Expectations are always high for lower logistics costs as it will be difficult for Indonesian industries to compete in the current common market of ASEAN Economic Community where goods, labor skills and investments are flowing free. Highly responsive to the market expectations, the new Indonesian government has now embarked on infrastructure development realization, and at the same time new pro-market reforms packages have been introduced to boost Indonesia's business environment competitiveness. In addition, the central bank - Bank Indonesia, has been cutting its key interest rate in the first quarter of 2016. The development of e-commerce in Indonesia has also made the logistics sector need to adapt the rapid changes in this digital era. Thus, it needs well connected infrastructure to support the e-platform. Opportunities and challenges are consequently arising as a lot of foreign forwarders eye this big opportunity, especially in the ASEAN economic community.
By making infrastructure development a top priority of its working programs, the government has tried to improve logistics efficiency, narrow down price differences between provinces and the tradability of goods and services in remote areas. Part of the top priority, fortunately, includes establishment of 50 new logistics centers to open in 2017 in addition to the building of 11 bonded logistics centers in 2016 in five provinces of Jakarta, Banten, East Kalimantan, West Java and Bali, which then later will open other center at different location following the specific commodities.
The establishment of the centers, the first of their kind to operate in the country, were part of the government's second economic policy package, issued in September, which aims to lower logistics costs by locating them close to several industrial areas, namely Cikarang, Cibitung in West Java and Balikpapan in East Kalimantan. However, at present, Indonesia ranks 109th on the World Bank's ease of doing business list, having risen by only one notch from its position in 2015 while Singapore continues to top the list and while Malaysia sits at the 18th position.
In line with the government's infrastructure development acceleration and economic reforms, the time is high for further promoting the most recent business and economic improvements in Indonesia and Southeast Asia alike direct with global market players. Closely related to the importance of supply-chain logistics and forwarding industry promotion, the Indonesian Logistics and Forwarder Association (ILFA/ALFI) in cooperation with PT Debindo-ITE, ITE Group Plc and Deutsche Messe organize the following tradeshow:
"CeMAT Southeast Asia 2017", TransAsia Jakarta 2017" and Cold Chain Indonesia 2017", 2-4 March 2017 at the Indonesia Convention Exhibition (ICE) BSD City.
The first of its kind of comprehensive supply-chain industry business platform event in the region also marks the new era of Indonesia's maritime power rebirth with much improved national, regional and global connectivity. It is sincerely hoped for logistics and forwarder industry business players to take part in the event for prospecting new partnership, cooperation and businesses. As Indonesia is currently part of G20 countries and with positive annual economic growth, the highest growth and the biggest population in the ASEAN Region, it will attract new business opportunities and ensure better future for Indonesia and ASEAN that will lead to more contribution to the global economy.
Yukki Nugrahawan Hanafi - Chairman
Indonesian Logistics and Forwarders Association (ALFI/ILFA)
Indonesia Chambers of Commerce and Industry (KADIN Indonesia)
ASEAN Federation Forwarders Association (AFFA)
Federation of Asia Pacific Aircargo Association (FAPAA)
International Federation of Freight Forwarders Associations (FIATA)