Government Seeks to Slash Logistics Costs by Improving Infrastructure

One of the efforts that the government continues making to boost improvement in the performance of national logistics system is the integration of toll ro
One of the
efforts that the government continues making to boost improvement in the
performance of national logistics system is the integration of toll roads.
Currently, the government is prioritizing the construction of Trans Java toll
roads. The toll roads have connected Jakarta and Surabaya, and will continue to
Banyuwangi by the end of 2019.
“Merak and
Banyuwangi will be connected by the end of 2019.” President Joko “Jokowi”
Widodo said (Detik.com, December 11,
2018).
Trans Java
is expected to smoothen logistics flow, because 80% to 85% logistics transport
in Java is carried out on land.
The next
project is Trans Sumatra that will connect the whole island from Lampung to
Aceh. Jokowi targeted to have Bakauheni connected to Palembang by April 2019.
The rest will be built later all the way to Aceh.
Next, there
will be big port projects that will be completed and ready to be inaugurated in
early 2019. “There will be big ports that will be completed in early 2019,
including Main Port Kuala Tanjung that we will inaugurate next month, and
Makassar New Port,” Jokowi said.
Jakarta
Outer Ring Road 2 (JORR 2) toll road is another prioritized project. The
infrastructure is slated to be completed and start operations in 2019 and is
expected to contribute to the economy around the capital.
The toll will be operated by PT Marga
Trans Nusantara with investment of Rp2.4 trillion. Sixty percent of the shares
are owned by PT Jasa Marga Tbk, while PT Astratel Nusantara owns 30% and PT
Transutama Arya Sejahtera owns 10%.
Public Works and Public Housing (PUPR)
Minister Basuki Hadimuljono said that JORR 2 will benefit commuters’ mobility,
whether they’re from Jakarta or other cities around.
“God
willing, in 2019, JORR 2 will be ready to be operated to improve the mobility
of urbanites and increase economic activities,” the minister said (Liputan6.com, September 17, 2018).
According
to Basuki, a segment of the JORR 2, the 11.4-km Kunciran-Serpong Toll Road,
when the news was published, had been 66% completed. The segment will also be
connected to Tangerang-Merak and Jakarta-Serpong toll roads that have started
operations earlier.
Land acquisition
for this toll road segment had reached 97% and was targeted to be fully paid in
October 2018 using the fund from State
Asset Management Agency (LMAN).
Jasa Marga
President Director Desi Arryani said that in 2019, there will be several toll
roads completed. One of the projects is Jakarta-Cikampek (Japek) Elevated toll
road. “Pandaan-Malang and Japek Elevated must be completed, and so must JORR
2,” she said (Detik.com, December 31,
2018).
Other toll
roads are Pandaan-Malang and Medan-Kualanamu-Tebing Tinggi; both predicted to
be completed in the second semester this year. Meanwhile the Japek Elevated
toll road will be finished in the third quarter and will be functionally
operated first during the Eid al-Fitr season in 2019.
Committee for
Acceleration of Priority Infrastructure Delivery (KPPIP)
Chair Wahyu Utomo said that the efforts to improve transport structure and
infrastructure and to increase the quality of logistics service is only a part
of the whole national logistics system. Wahyu added that special economic and
industrial zones will also be built to slash logistics costs.
According
to Wahyu, 72% of logictics costs are spent only for transportation, while the
remaining 23% are for administration fees, storage, and warehousing. “So,
transportation costs still make up a very big portion,” he said on KPPIP’s
website (February 7, 2018).
Wahyu
admitted that Indonesia still sits on the fourth position in terms of the
amount of logistics cost, below Singapore, Malaysia, and Thailand. To improve
this, the Indonesian government needs to complete the infrastructure projects
that will support the national logistics system.
SELOG as a
subsidiary of PT Serasi Autoraya (SERA) that operates in logistics service
sector supports what the government has been doing. Even with the current
infrastructure, SELOG is committed to give the best of many kinds of services
to the people.
One of the services SELOG provides is
contract logistics. The service fits the customers that want to focus on their
core competence to increase business profit through logistics service that is
integrated from the planning, implementation, to monitoring process.
Click this page to learn more
about SELOG’s services.
© Copyright PT Serasi Autoraya 2026



