Unreliable Transportation Causes Rice Price Surge; Competent Logistic Service is Needed

As the primary food ofIndonesians rice has been constantly on demand. Any problems related to rice supply, including logistics problems, would demand the gov
As the primary food
ofIndonesians rice has been constantly on demand. Any
problems related to rice supply, including logistics problems, would demand the
government’s attention as it would cause the price to rise.
In the beginning of
2017, problem arose after rice supply to Cipinang Central Market decreased
because of the increasing logistics costs. It is then cause surge in rice
price.
As quoted in Kompasarticle
(February 24, 2017) titled ‘Logistics costs in Central Java spike’, Hamid
Aminudin owner of Dagang Putra Harapan, Brangsong, Kendal regency said
logistics costs had increased due to damaged roads in Central Java’s Northern
Coastal Highway.
The increase in
logistics costs forced Hamid to reduce rice supply to Cipinang Central Market
in Jakarta.
”Supplycould be
reduced by up to 50% due to the risks posed by the damaged roads. And if the
truck broke down on the way to central market, it could take a night to fix it,
thereby increasing the risks of damage to the rice,” Hamid said.
Meanwhile, in the
article published on Thursday (23/2/2017), the chairman of Indonesian Truck
Operators Association (Aptrindo) in Central Java Region, Chandra Budiwan, said that
the damaged roads in Semarang had increased the costs of spare part change up
to 30%. He added that the components often needed to be replaced were
suspensions and tires.
”Damaged roads have
not only accelerated breakage of truck components, but also lengthened delivery
time,” Chandra said.
Old Vehicle
It is undeniable that
most logistics vehicles in Indonesia are old. Thus, they are all prone to break
down anytime soon.
The Jakarta
administration has limited the age of trucks and buses up to 10 years through
bylaw No. 5/2014 on transportation. However,Aptrindodemanded the extension of
truck usage age to 20 years.
"Truck does not
necessarily have to be replaced after 10 years of usage,"said
GemilangTarigan, AptrindoCentral Board of Management Chairman atKontan.com, in
an article titled ‘Truck owners urge revision on truck usage age’ published in Thursday
(March 3, 2016).
Dilemma arises of
earning more profits by using old, not-roadworthy trucks or spending money to
buy new trucks.
Another option is eliminating vehicle
procurement and service costs by renting professional service such as SELOG,SerasiAutoraya
(SERA)’s subsidiary which provides safe, secure, and on-time delivery logistics
service.
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