The issue of the global crisis in 2023 is of concern to national business actors, including logistics businesses in the country.
The general chairman of the Indonesian Logistics and Forwarders Association (ALFI), Yukki Nugrahawan Hanafi, said that the global economic turmoil in 2023 will affect all countries worldwide, without exception.
“However, to weather the economic storm in 2023, the (industrial) downstream program and strengthening the domestic market can be critical. We must reinforce this domestic potential, which I have often reminded my colleagues doing logistics in the country, “Yukki said in his press statement on Friday (30/12/2022).
Yukki said the prospect of the logistics sector, especially the domestic one, in 2023 is still potential because the demographics of Indonesia’s population are larger, and domestic consumption is high. However, he predicts that the logistics business, which intersects with export-import activities (ocean-going), will be affected by the 2023 global economic recession.
The International Monetary Fund (IMF) predicts global economic growth to slow from 2.9 percent to 2.7 percent. Not only that, currently, many countries still have high inflation.
However, Yukki is optimistic that Indonesia will be able to overcome these obstacles because it has the potential for downstream industries to boost the economy.
Therefore, it is necessary to encourage downstream in various commodity sectors, especially agriculture, plantations, forestry, and fisheries. Yukki assesses that these sectors significantly contribute to the economy, with the export portion needing to be maximized.
For this reason, he added, the government and business actors can collaborate to create added value from natural resources to increase the selling value and competitiveness of domestic superior export commodities.
Market Identification
Yukki said 2023 could be a transformative year if business actors identify permanent market opportunities. He also showed that this opportunity could be seen in the renewable energy sector.
He said Indonesia was blessed with various minerals and renewable energy potential. “Therefore, Indonesia must carry out downstream so that there is added value and spur economic growth,” he said.
Yukki explained industrial downstream and strengthening the domestic market needed to be carried out in addition to crashing into potential economic storms and realizing our big goal of becoming the country with the largest economy in the world in 2045 and achieving net zero emission in 2060.
In addition to the downstream potential, Indonesia must also maximize its domestic market share to develop industrial performance.
Moreover, the threat of a global recession is still the most challenging risk that entrepreneurs must face. Reduced global demand, especially for export-oriented industries, also impacts company performance, which will be at risk of reducing operational expenses, one of which is layoffs.
“Indonesia’s domestic demand is still strong, which contributes 55 percent to Indonesia’s GDP. Therefore, as long as we can maintain the purchasing power of people’s consumption, the wheels of the Indonesian economy can continue to turn,” he said.
In addition, Yukki also assesses that government support is critical to maintaining people’s purchasing power.
According to him, the domestic market must also be strengthened through the acceleration of TKDN (Domestic Component Level) and P3DN (Increased Use of Domestic Production).
“Strengthening MSMEs to support the domestic supply chain is also very much needed for the success of this effort,” said Yukki.
He said the industrial downstream program was intended to gain added value for raw material products, strengthen industrial structures, provide jobs, and provide business opportunities in Indonesia.
“This is because Indonesia has been exporting raw materials for decades, and downstream is needed so that raw materials are processed domestically,” said Yukki.
