Logistics business to rely on e-commerce to grow

Logistics business to rely on e-commerce to grow
Logistics business to rely on e-commerce to grow

Chairman of the Indonesian Logistics and Forwarders Association (ILFA) Yuki Nugrahawan Hanafi, revealed that logistics business continues to grow even twice from economic growth.

JAKARTA (infolog): If this year’s economic growth is estimated to grow the same as last year’s 5.3 percent, then the growth of logistics could touch 10.4 percent increase from last year which only grew about 7-8 percent.

“We are optimistic to be able to grow 10.4 percent with a record of improving economic conditions,” said Yuki in the opening of CeMAT Southeast Asia, IndoTransLog, IndoColdChain | IndoTruck (CTCT) 2018 in Tangerang, Wednesday (2/5) as quoted by Akurat.co as saying.

According to him, logistics is in close contact with the community because of logistics, the goods will definitely move. Meanwhile, Yuki admitted, if the current growth drivers of logistics business comes from e-commerce and air transport is quite increased.

As for the air transport realization of its growth in the domestic segment grew 12-15 percent last year. Then the international segment is about 6-7 percent.

“But inversely proportional to e-commerce that will be increasingly jumped and stretched,” he added.

On the other hand, there is still a lot of Indonesian homework on the sustainability of supply chain and logistics industries. Because the cost of logistics in the country is still high, touching 23.7 percent of GDP last year and the share of logistics costs accounted for at least 40 percent of the retail price of goods.

So with the logistics cost that is still 23.7 percent of GDP, when juxtaposed with infrastructure needs, most logistics costs can only go down to 21 percent.

“We hope the productivity can be high competitive, the chain good so that logistics costs can be below 20 percent 1-2 years ahead.While Malaysia and Thailand are below 15 percent, then stakeholders, private, industry must work hard especially 2020 era industry 4.0 will started, “he explained. (ac)

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