The Indonesian Chamber of Commerce and Industry (KADIN) established the Logistics and Supply Chain Agency. The goal is to adapt and build an effective supply chain ecosystem and to reduce logistics inefficiencies.
The chairman of KADIN Arsjad Rasjid said that inter-island logistics in Indonesia currently face problems with logistics costs and the length of delivery time. The logistics sector spends nearly 25 percent of Indonesia’s Gross Domestic Product (GDP) due to infrastructure problems and inefficiencies.
“Hopefully, with the existence of this Logistics Agency, it can play a maximum role in encouraging the acceleration of economic recovery with targeted logistics distribution by implementing the green concept,” he said during the grand launching, Wednesday (24/11).
The presence of the KADIN Logistics and Supply Chain Agency is expected to eliminate unnecessary obstacles and disturbances. In addition, it is also hoped that this agency can support the logistics center to continue operating.
“The Logistics and Supply Chain Agency must be able to be driven by the market system, both market-demand and market-creation,” said Head of KADIN Logistics and Supply Chain Agency Akbar Djohan at the same event.
The agency is also expected to be more responsive and effective in solving various distribution challenges. Amid a pandemic situation, challenges are indeed experienced in the logistics sector.
“In this critical situation, we need to make sure all the wheels of the economy keep moving,” said Akbar.
The agency will also drive digital transformation in both trade and connectivity. Akbar hopes that the existence of this agency can strengthen cooperation and utilization of the Logistics and Supply Chain Agency as an engine of economic growth.
Furthermore, it can provide recommendations to the government regarding regulations related to logistics, build information and communication networks to support logistics digitization, and encourage the development of logistics technology by facilitating access to funding for startup companies.
