Focus on Logistics in West Java

12 July 2023

A meeting called the Sustainability of Logistics Business Ecosystem through Digitalization and Collaboration (‘Keberlanjutan Ekosistem Bisnis Logistik dengan Digitalisasi dan Kolaborasi’) was held in Bekasi, West Java, on 05 July 2023. It was opened by Chairman of Indonesia Logistics and Forwarders’ Association (ALFI/ILFA), Yukki Nugrahawan Hanafi, who encouraged logistics providers to optimize the strength of the region.

West Java has provided significant contribution to the national economy growth, thanks to the high input of industries and agricultural products. In 2022 for example, West Java investment rate reached Rp 174.6 trillion, one third of which was contributed by small-micro businesses.

Some key guests and participants joining the event included Head of Port Authority (KSOP) of Patimban Port, Head of West Java Customs and Excise Regional Office, West Java Provincial Transportation Agency, Mahendra, Chairman of Indonesian Logistics Association and other West Java ALFI members.

ALFI members of more than 3,000 companies throughout the nation, Yukki said, were actually the majority of the small and medium business class (UKM), so that ALFI members in West Java could take a more active role in encouraging the emergence of new entrepreneurs in the transportation and logistics sector.

He also said that global economic conditions were still contracting, even showing negative growth in some of the world’s major economies. On the other hand, the global supply chain map is undergoing a shift, in which the Asia Pacific and ASEAN regions are centres of economic growth and are centres of production and consumption as well.

Quoting some data, Yukki explained that among the ASEAN countries, Vietnam is the main destination for supply chain relocation (from China in particular, and globally in general) due to geopolitics and the impact of the pandemic. However, with a low unemployment rate, their growth is already close to a threshold.

He encouraged attendees to be grateful as the Indonesian economy continues to improve – last year growing above 5% – while many other countries were still experiencing more than simple economic constraints.

He concluded by saying that all ALFI member companies need to have a vision and plan to ensure their business continuity.

Read our related article: DP World to Expand Indonesian Container Terminal.

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