Nowadays, Cost Logistics in Indonesia is still high, this problem should resolve immediately. According to Poltak Ambirata, Head of Logistics Development. Moreover, He said that ministry of trade doing steps to reduce logistics cost in Indonesia consists of:

1. To support sea toll, ministry of trade already make program known as Gerai Maritim. Gerai Maritim is process to reduce disparity of cost in east region by providing trader in east region to get compensation price and providing trader that they can do business and directly connected within supplier.
2. This program initially designing to anticipate being goods transport of PSO which realize in compensation. In fact, President was issued regulation number 106 in 2015.
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2. In other perspective view, Representative of Senior Consultant at Supply Chain Indonesia. Anang Hidayat said disparity of cost in east region and west was normal because cost logistics to east area actually expensive caused by unbalanced condition of trading. Moreover, there are several factors consists of:
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• Fequency sailing is low, short route, low of pay load, operational cost was high than freight can be gather.
• Low of turnover container, impact of this condition, maintenance cost and idle were very high.
• Condition of portland especially for hinterland not support to be receiving delivery between hinterland and portland, industries, population.
• Facilities and Infrastructure + Human, in effect of dwelling time will be higher despite vessel or cargo dwelling time

In addition, How to reduce logisctics cost so that to ensure disparity of cost can be reach if those condition can be sormounted. There are many opinions which comparing fright condition instead of east region within overseas.

Flow Diagram of Port Management

In the picture above illustrated that there is only one part can be moved from implementation budgeting number (7 clause verse 2) which already agreed for each stakeholders. (to be continued)

Adopted from article in SCI, original article can found here

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Demand of halal products in Indonesia tend increasingly both from domestics and foreign. In other hand, halal supply chain management in Indonesia is very low for example distributing halal products. Regulation about Halal Supply Chain Management is not arranged clearly. Indonesia Ulama Council (MUI) also didn’t give a formal instruction. Certifications about halal supply chain be required by considering Indonesia as the largest country with Muslim population in the world, so these regulations need to be calculated clearly in order that UMKM (Micro, Small, Medium Enterprises) couldn’t collapse. Regulation about special transport can be included to regulate halal supply chain management.

Now, small business already has halal certification from MUI so few, approximately 3.000 small business. While, total of small business and home industry approximately 1,2 million, added medium business as much as 6.000. Law of Halal Product Guarantee (UU JPH), will be implemented in 2019, so this regulation will useless to small industry because it’s not already to fulfill halal certification. Halal certification of company and logistics supplier in Indonesia is very low. To ensure halal of product until consumer must be started from upstream and downstream, as described by the figure bellow.

Figure 1: Flow representation of Logistics (FMCG)

Figure shown representation of Logistics, the supply chain is viewed as a single entity consists a series of fragmented elements such as procurement, manufacturing, distribution. In this area there are many strategy about planning process, with a particular emphasis on strategic decision making rather than on the operational cost. Halal Supply Chain Management consists of product, modal transport and warehouse. Each of parts from suppliers, logistics, and distributes to customers must be kept not be interfered with forbidden products (haram), to ensure that the products are halal and getting certificate from the authority in Indonesia (MUI). It’s still has great opportunity because the awareness of Indonesia society about halal product tend increasingly, each company which is targeted expanding to Indonesia, can be get opportunity and profit if they are aware of halal certification. Central of the success of effective halal supply chain management is the use of integrated information system and full supported from stakeholder.

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