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'Livestock vessel' to reduce logistics costs
Livestock watch: President Joko âJokowiâ Widodo (second right), accompanied by First Lady Iriana (center) and Transportation Minister Ignasius Jonan (right), inaugurates the countryâs first livestock carrier at the PT Adi Luhung Sarana Segara Indonesia (ALSSI) shipyard in Bangkalan, Madura, East Java, on Tuesday
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Livestock watch: President Joko âJokowiâ Widodo (second right), accompanied by First Lady Iriana (center) and Transportation Minister Ignasius Jonan (right), inaugurates the countryâs first livestock carrier at the PT Adi Luhung Sarana Segara Indonesia (ALSSI) shipyard in Bangkalan, Madura, East Java, on Tuesday. The President expects the vessel to help reduce logistics costs for livestock shipments, allowing more competitive prices.(Cabinet Secretariat) (second right), accompanied by First Lady Iriana (center) and Transportation Minister Ignasius Jonan (right), inaugurates the countryâs first livestock carrier at the PT Adi Luhung Sarana Segara Indonesia (ALSSI) shipyard in Bangkalan, Madura, East Java, on Tuesday. The President expects the vessel to help reduce logistics costs for livestock shipments, allowing more competitive prices.(Cabinet Secretariat)
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span class="inline inline-center">Livestock watch: President Joko 'Jokowi' Widodo (second right), accompanied by First Lady Iriana (center) and Transportation Minister Ignasius Jonan (right), inaugurates the country's first livestock carrier at the PT Adi Luhung Sarana Segara Indonesia (ALSSI) shipyard in Bangkalan, Madura, East Java, on Tuesday. The President expects the vessel to help reduce logistics costs for livestock shipments, allowing more competitive prices.(Cabinet Secretariat)
President Joko 'Jokowi' Widodo on Tuesday inaugurated a vessel specifically designed to transport livestock in a bid to reduce logistics costs between cities on different islands.
Named KM Camara Nusantara I, the 'livestock vessel' has a capacity to transport 500 cattle and is claimed to meet international standards.
'We always lose on the high logistics costs between the provinces in Indonesia. This is what we target to solve, one at a time,' Jokowi said in an official statement made available by the presidential communications team.
As an example, the President said the price of Australian cattle sold in Indonesia was lower than local cattle because the imported cattle had lower logistics costs.
Jokowi said he hoped the new ship could help increase the competitiveness of local cattle and, eventually, reduce the price of the livestock in various areas, especially in remote areas with limited infrastructure.
After its launch, the vessel will operate en route from Kupang, East Nusa Tenggara, Bima, West Nusa Tenggara, Tanjung Perak, East Java and Tanjung Emas, Central Java. East Nusa Tenggara is known as the country's cattle supplier.
Currently, shipments in the archipelago are clouded by uncertainties surrounding the shipping schedule, contributing to higher prices.
According to the World Bank, logistics costs account for 24.6 percent of the country's gross domestic product (GDP), among the highest in the region. In addition, basic food commodities, including chicken and beef, also had a significant impact on the inflation rate in the country.
Previously, Transportation Ministry director general for sea transportation Bobby Mamahit said that he would build five more livestock vessels based on a request from Agriculture Minister Amran Sulaiman.
'Those five ships will be ready in 2017,' he said, adding that the ministry had allocated around Rp 180 billion (US$13.2 million) for the livestock vessels.
During the launch, the President also reiterated his commitment to developing the maritime transportation system by building no fewer than 200 ships this year to solve logistics issues.
So far, the government has built around 56 ships this year, according to Transportation Minister Ignasius Jonan.
Jokowi said that the government aimed to add 160 more ships next year.
Jokowi also inaugurated two other ships with a capacity of 750 deadweight tonnage (DWT) each. The ships will transport people and goods from and to remote islands.
He also added he would add six more ships for scheduled cargo service in January.
'We believe that this will strengthen the maritime axis and maritime highway [program]. The distribution of goods will get better,' Jokowi said, referring to his vision of developing the country's sea transportation system. (fsu)
