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Government Measures to Improve Transportation and Logistics on Java Island

Development of Transportation and Logistics on Java Island


Java and Sumatra are the two regions in Indonesia with the highest population density. In addition, they also showed higher household expenditure compared to the other Indonesian regions.


Nevertheless, Java still has the highest household spending. According to Statistics Indonesia (BPS), provinces in Java continue to have the largest populations, with 154.34 million people, or 56.05% of the total population, in 2022.


In addition to having the highest household expenditure and population, the distribution of manufacturing industries and services in Java is also the largest. The industrial estates on Java are expected to be the nation’s key driver of economic growth.


Thus, the government continues to provide incentives and policy support to improve the industry’s competitiveness. One of the strategies implemented is to lower production costs for the upstream and downstream sectors.


In the upstream sector, the government continuously reduces the transportation and logistics costs for industrial raw materials or final products that the public uses. Thus, industries or communities can purchase raw materials and final products at competitive prices.


See also: The Important Contributions of Logistics to Distribution


In this way, the inflation caused by a high-cost economy in the logistics sector and community consumption can be reduced. Eventually, it will result in healthy and sustainable economic growth.


The Government Prioritizes Infrastructure Rehabilitation to Improve Transportation and Logistics Sectors

National road repair, maintenance, and stabilization are parts of the government’s policy to provide a competitive cost for transportation and logistics. This policy is implemented on Java’s northern coast route (Pantura), central and southern roads, and southern coast route (Pansela).


The Director General of Highway Construction and Maintenance, Ministry of Public Works and Housing (PUPR), Hedy Rahadian, said that the government constantly evaluates the routes in those areas to reduce the cost of transportation and logistics.


“The total budget for the national road preservation in Pantura from 2018 to 2023 is Rp6.52 trillion. Indeed, this is still very less compared to the needs of repair on our national road in Pantura,” said Hedy Rahardian at the public hearing (RDP) with the Fifth Commission of the House of Representatives of Indonesia on Wednesday (4/12/2023) in Jakarta.


See also: Transportation and Logistics Collaboration for Economic Growth


Moreover, new road segments are constructed continuously to improve access to industrial areas and encourage national economic expansion at the Trans-Java toll. According to research, Java’s economic output has increased to Rp23.23 trillion annually thanks to the toll road network.


Not only attempting to repair infrastructure, the government also implements the National Logistic Ecosystem (NLE). As a digital platform for upstream-to-downstream logistics services, NLE facilitates collaboration between ministries/agencies, related companies, and logistics actors.


However, all the infrastructure repairs and logistics service improvements would only be optimal if the logistics and infrastructure businesses worked efficiently. Therefore, it is important to use an accurate and reliable logistics service.


See also: Freight Forwarder vs. Freight Broker: What’s the Difference?


Choose a Reliable Transportation and Logistics Company

If you are looking for the most reliable transportation and logistics company in Indonesia, PT Serasi Autoraya is here for you. Also known as SERA, this company is a subsidiary of Astra International that operates in the transportation industry. 


SERA’s various lines of business. It includes a car rental business managed by TRAC, a used car market under mobil88, a car auction under IBID, and a logistics service business under SELOG.


SELOG provides effective, efficient, and high-quality logistics services. SELOG is available to serve customers’ needs in end-to-end logistics with various services, including Contract Logistics, Shipping Services, Shipping Agencies, Freight Forwarding Agencies, Warehouse and Yard Management, and Courier Services.


To learn more details about SERA’s profile and its services, visit its official website at https://www.sera.astra.co.id/

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