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• July 10, 2020

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BOOK LAUNCH AND DISCUSSION OF “URBAN LOGISTICS IN INDONESIA

Urban logistics in the future is expected to be dominated by Connected, Shared, Autonomous and E-commerce solutions, said Erwin Raza, as an Assistant Deputy for National Logistics System Development, Coordinating Ministry for Economic Affairs of the Republic of Indonesia in a Book Launch and Discussion Webinar with the title “Urban Logistics in Indonesia" published by Universitas Gadjah Mada Press on Friday, July 10, 2020. Connected, means that the future of urban logistics will be linked between the government, transportation and logistics infrastructure providers, logistics service providers, and financial institutions. Shared, means there is a collaboration between various stakeholders (retailers, consumers, service providers) under the same platform. Autonomous drives the use of autonomous logistics, from semi-autonomous trucks, robots, to autonomous aircraft (drones) that play an integral role in the future of the shipping industry. E-commerce is an important contributor to the development of urban logistics. In fact, online retail growth has increased by almost 8% in the last three years.

Erwin in his statement said about the arrangement of the National Logistics Ecosystem. NLE is a logistics ecosystem that synchronizes the traffic management and international documents shipping since the arrival of the transportation tool at the port until the goods arrive at the warehouse (hinterland). The system is cooperation oriented between government and a private company, through data exchange, simplification of processes, eliminating repetition and duplication, and also using information technology and digital technology. The system has been promulgated through Presidential Instruction number 5 of 2020 concerning National Logistics Ecosystem Management, which includes regulations on aspects of platforms, business processes, spatial planning, and payments. The system regulates logistics activities from upstream to downstream both domestically and internationally. Erwin also conveyed an example of the concept of developing connectivity nodes and economic integration between regions (superhub) to create an economic growth ecosystem, which was carried out in the new State Capital (IKN) of East Kalimantan and Bali / Nusa Tenggara.

Previously, as a speaker, Erwin conveyed several suggestions regarding the book of Urban Logistics in Indonesia. According to him, a future vision is needed which presents the landscape / re-design of modern urban logistics for these cities in the next 25 - 50 years or maybe 100 more, including infrastructure design, regulation, and spatial planning, as well as the required digital technology design. Erwin also reminded that the models which applied in other countries are good to study, but each city is unique in terms of geography, social and culture, so there is no one-size-fits-all solution (one model fit for all).

Dr. Kuncoro Harto Widodo representing the team of authors of the previous book said that the book of Urban Logistics in Indonesia contains Basic Concepts of Urban Logistics, General Issues of Urban Logistics in Indonesia, Mapping the Challenges and Perceptions of Urban Logistics Stakeholders, and Synergies between Cities and Regions along with the framework of the National Logistics System. The book is prepared based on theories and regulations in Indonesia and practices that applied in Indonesia, as well as the examples of application abroad. This book was published at the end of 2019, so it has not yet discussed the impact of the Corona Virus 19 pandemic.

Kuncoro, as a lecturer at the Faculty of Agricultural Technology (FTP) UGM and work also as a Senior Researcher at the Center for Transportation and Logistics Studies (Pustral) UGM said that one of the main problems of logistics is efficiency related to the management of logistics services, handling, and so on. In urban logistics the problem is more complex, not only focusing on efficiency / commercial issues but also non-commercial problems such as pollution and discomfort in a city that have the potential to reduce the quality of life. For this reason, the discussion of urban logistics is more comprehensive by considering aspects of welfare and quality of life in a broad sense. Furthermore, some common problems that are often encountered in urban logistics are limitations of urban areas, competition for the use of traffic space between passenger and freight transport, traffic congestion, air pollution/emissions, or limited facilities for consolidation and deconsolidation. The results of a study conducted by Pustral UGM in five cities in Indonesia (Medan, Jakarta, Yogyakarta, Denpasar, and Makassar) show that logistical arrangements can improve the quality of life. Kuncoro encouraged one city to another one for working together to solve urban logistics problems.

Yukki Nugrahawan Hanafi, Chairman of the Indonesian Logistics and Forwarder Association (ALFI) & Chairman of the ASEAN Federation for Forwarder Associations (AFFA), another speaker in this webinar said that urban logistics is increasingly urgent to be developed. Currently, logistics development is still focused on ports, even though the logistics aspect is broader. Until now, there is no clear concept, so we must continue to encourage how to integrate the logistics system. One of the important aspects that must be considered is the commodity which being transported.

Regarding the pandemic, Yukki conveyed that it is an opportunity for micro to large entrepreneurs due to social, economic and cultural transformations in new directions. Logistics services not only include the movement of goods, but also people, money and services, so that they can be grouped based on the shape and scale of the commodity being managed and the form of the transaction. Most of the logistics sector was severely affected by the Corona Virus, but there are several logistics activities that have survived and even experienced positive growth in the new and next to normal life. Some of these activities are e-commerce logistics services, shipping services (couriers), warehousing services for basic goods and retail goods, logistics services related to transactions B to C (Business To Consumer), and C to C (Consumer To Consumer).

Furthermore, according to him, the opportunity for the logistics service industry is growing along with the growth of the middle class in Indonesia (yearly disposable income US $ 5000 - US $ 35,000) which is estimated to increase by 59% in 2030 compared to 2014. Indonesia also has the largest share of the market and growth of cellular phones in Asean which encourages the logistics industry opportunities. The market share of cellular phones in Indonesia is the US $ 1,682 million, with 37% growth in the 2016 - 2020 period. As of the closing statement, Yukki said that the logistics paradigm has changed from optimization-based economic skills to disruption-based economic speed.

Another discussant, Ir. Agus Pambagio, MEA., CPN, as a Public Policy Observer, said that policies related to urban logistics are complete but often out of sync so they need to be compared. Regulatory problems also occur because regulators often make handbills (SE), even though handbills are not a legal product. Agus conveyed several important issues related to urban logistics, including loading and unloading issues, spatial problems, the uncertainty of independent city development, so it is difficult for people and goods transportation planning. In addition, there are some issues of misunderstanding at the field level, the high logistics cost due to spatial planning which is difficult to control, and unclear links so that the city distribution system is difficult to regulate. In the next ten years, logistics will still be a complex issue. The existence of "gangsters" will also increase the logistics costs. In the next book, it is better if various policies are juxtaposed so that discrepancies between the regulations may occur will be identified. It should be understood that regulations without penalties will be difficult to do, so that regulation is useless, said he.

At the opening of the webinar, Prof. Dr. Agus Taufik Mulyono as Head of Pustral UGM said that Pustral UGM always supports the development of references related to transportation and logistics, one of them is in the form of book publishing. Prof. Taufik also said that the event was held in a series of 19th Anniversary Pustral's UGM. The webinar which was attended by 338 people was closed by questions and answers session. In that session, as moderator, Dr. Imam Muthohar, DTSL FT UGM Lecturer and Pustral UGM Researcher summarized questions from participants that generally include the impact of urban logistics on a city, how to use Information Technology (IT) to support logistics performance and the impact of a pandemic in urban logistics development. [Editor: Azata]