T

he Indonesia Chambers of Commerce and Industry (Kadin) will hold a logistics summit in November to connect various domestic logistical industry stakeholders.

Organized in cooperation with the Office of the Coordinating Minister for the Economy, the second Indonesia Logistics Summit will be held on Nov. 10-12 at the Jakarta Convention Center and would, among other things, map key problems in the nation’s logistical system, Kadin vice chairman for trade, distribution and logistics, Natsir Mansyur, said on Tuesday.

“We’ll also try to measure our logistical system’s strengths in various aspects in our national blueprint of logistical system, such as information and communication technology, transportation industry and infrastructure, in regards to the establishment of the ASEAN Economic Community in 2015,” he told The Jakarta Post on the sidelines of a pre-event workshop.

The single market and single production base envisioned by the community will cover Brunei Darussalam, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand and Vietnam.

Poor logistics have been one of the major bottlenecks that reduce domestic products’ competitiveness on the international market, Natsir said.

“Our main target is to cut our logistical costs, which currently are 17 percent of total production costs, to at least 10 percent by 2015,” he said, adding that one of the solutions would be using information technology to synchronize logistical chains and support efficient electronic-based logistics.

The Indonesian Logistics Association (ALI) has noted that Indonesia’s logistical cost, ranging between 25 and 30 percent of the nation’s gross domestic product (GDP), was among the highest in Southeast Asia.

That figure is much higher compared to neighboring countries such as Thailand and Singapore, which stand at 16 percent and 10 percent of their GDPs, respectively.

Operational costs for freight delivery by truck in Indonesia, for example, are US$34 per kilometer. The average cost in Asia is around $22 per kilometer, according to the Transportation Ministry.

In line with the ALI, the 2010 World Bank’s Logistics Performance Index (LPI) ranked Indonesia 75th of 155 countries surveyed, far behind Malaysia (29th), Thailand (35th), the Philippines (44th) and Vietnam (53rd).

The summit, which will be opened by President Soesilo Bambang Yudhoyono, will run alongside a conference themed, “Locally integrated, globally connected”, and expects 1,000 participants, including government representatives at the national and local levels, logistics and logistics supporting firms, financial institutions and the ASEAN Business Advisory Council.

There will also be an exhibition related to logistics and its supporting businesses.