Indonesian Logistics Infrastructure: The Performance and Fiscal Support
Abstract
In the globalization and ASEAN Economic Community era, the competitiveness of Indonesian industries to sell goods and services is facing more severe challenges. It is partly due to the low performance of Indonesian logistics sector, and one of the contributing factors to the unsatisfactory logistics is poor logistics infrastructure. In this regard, this paper has several research objectives. The first is to analyze the performance of Indonesia logistics infrastructure in the past decade. The second is to analyze Indonesian logistics infrastructure development with its relevant fiscal policy support and evaluate its short-term progress. The research method adopted in this study is descriptive analytical method. In comparison with other countries, especially ASEAN region, the performance of Indonesian logistics infrastructure over the past decade tends to be steadily incompetitive, below the average of ASEAN countries. It is found to be one of the prime determinants of the high logistics costs in Indonesia. The government serious attention and the consistency of its policy towards improving logistics infrastructure during the 2014-2019 period has been partially seen, but the program sustainability is required in subsequent periods. In the short term, a temporary evaluation until 2017 of the sea toll program integrated with the construction of logistics infrastructure shows a positive impact. The positive impact is indicated from the decreasing prices of basic necessities in the eastern region of Indonesia by 20%-40%, and the economic revival of Eastern Indonesia region due to currently cheaper transportation costs.
References
AN Secretariat (2007). Roadmap for the Integration of Logistics Services. 39th ASEAN Economic Ministers.
ASEAN Secretariat (2015). Implications of the ASEAN Economic Communicty to Logistics Industry. Asian Development Bank & Asian Development Bank Institute (2009). Infrastructure for a Seamless Asia.
Global Business Guide Indonesia (2013). Indonesia’s Logistics Sector. http://www.gbgindonesia.com/en/services/article/2013/indonesia_s_logistics_sector.php. Accessed on 22 Sept 2016.
Kemenkeu (2016). Informasi APBN 2016.
Kementerian PPN/Bappenas (2014). Konektivitas Infrastruktur Wilayah dan Antar Wilayah. Deputi Bidang Sarana dan Prasarana Kementerian PPN/Bappenas.
Jones LangSalle (2013). Southeast Asia’s Rising Logistics Market: Discovering the growing wealth of ASEAN economies.
Mulyadi, D. (2011). Pengembangan Sistem Logistik yang Efisien dan Efektif dengan Pendekatan Supply Chain Management. Jurnal Riset Industri Vol. V, no.3.
PWC (2014). Developing Infrastructure in Asia Pacific: Outlook, Challenges and Solutions.
Shepherd, B. (2011). Logistics Costs and Competitiveness: Measurement and Trade Policy Applications. Transport Research Support Program – World Bank.
Tongzon, J. L. (2009). Indonesia’s Interests in Logistics Services at International Trade Negotiations.
Vitasari, L. N. (2017). Analisis Evaluasi Implementasi Kebijakan Tol Laut. Undergraduate thesis. Institut Teknologi Sepuluh Nopember.
World Economic Forum & PwC (2012). Strategic Infrastructure: Steps to prioritise and deliver infrastructure effectively and efficiently.
Yean, T. S., & Basu, S. (2016). Logistics Integration in ASEAN Faces Serious Challenges. Perspective Issue No. 55. ISEAS – Yusof Ishak Institute, Singapore.
Copyright (c) 2019 International Journal of Finance & Banking Studies (2147-4486)
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
Authors contributing to IJFBS agree to publish their articles under the Creative Commons Attribution- 4.0 NC license, allowing third parties to share their work (copy, distribute, transmit) and to adapt it, under the condition that the authors are given credit, that the work is not used for commercial purposes, and that in the event of reuse or distribution, the terms of this license are made clear. Authors retain copyright of their work, with first publication rights granted to IJFBS. However, authors are required to transfer copyrights associated with commercial use to the Publisher. The authors agree to the terms of this Copyright Notice, which will apply to this submission if and when it is published by this journal
Submission of an article implies that the work described has not been published previously( exceptin the form of an abstract or as part of a published lecture or academic thesis), that it is not under consideration for publication elsewhere, that its publication is approved by all authors and tacitly or explicitly by the responsible authorities where the work was carried out, and that, if accepted, it will not be published elsewhere in the same form, in English or in any other languages, without the written consent of the Publisher. The Editors reserve the right to edit or otherwise alter all contributions, but authors will receive proofs for approval before publication
