L

ogistics costs will increase by about 1 percent following the increased toll road tariffs set to take effect on Friday, the Indonesian Logistics Association (ALI) said Monday.

ALI chairman Zaldy Masita said that the impact of logistics costs was inevitable as most shipments must pass over toll roads.

“Toll tariffs contribute less than fuel or warehousing in total logistics costs,” Zaldy told The Jakarta Post.

Public Works Minister Djoko Kirmanto said last week that he had signed a ministerial decree stipulating an increase of between 11 and 13 percent in toll tariffs.

He said the increase was based on the 2004 law on toll roads stipulating that tariffs would be adjusted every two years in line with inflation.

The tariff increase will be implemented on 14 toll roads in Jakarta-Tangerang, Jakarta-Bogor-Ciawi, the Jakarta inner-ring road, the Jakarta outer-ring road, Serpong-Pondok Aren, Pondok Aren-Ulujami, Cikampek-Purwakarta-Padalarang, Padalarang-Cileunyi, Palimanan-Kanci, Semarang, Surabaya-Gempol, Belawan-Medan-Tanjung Morawa and Ujung Pandang sections I and II.

Natsir Mansyur, vice chairman for trade, distribution and logistics for the Indonesian Chamber of Commerce and Industry (Kadin), shared a similar opinion with Zaldy. Natsir warned, however, that even such a small increase would still contribute to higher logistics costs.

He pointed out that logistics costs have currently reached 17 percent of the price of most goods. The percentage is among the highest in the Southeast Asian region, which averages logistic costs of around 10 percent.

ALI estimates that logistics expenses in Indonesia to be between 25-30 percent of the nation’s gross domestic product (GDP), double the ideal figure of 15 percent. Costs in Thailand and Singapore are respectively estimated at 16 percent and 10 percent of GDP.

Didi Sumedi, director for logistic and distribution facilities at the Trade Ministry, said that the government was working on a national system to help reduce logistics costs.

“Through the system, the government hopes to synchronize efforts in various fields in order to gain optimal benefits,” Didi said.

Didi declined to provide details about the system. However, he cited that the synchronization stipulated the system could take form as further development of roads as a result of increases in toll tariff
revenues. (JP/rcf)