Transportation Minister boosts logistics strengthening in 4 BIMP-EAGA countries
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Investor Daily - Menhub dorong penguatan logistik 4 negara BIMP-EAGA
23 February 2023
By: Amrozi Amenan
Jakarta - Transportation Minister Budi Karya Sumadi is strengthening logistics in the four member countries of Brunei Darussalam-Indonesia-Malaysia-Philippines-East Asean Growth Area (BIMP-EAGA). This is carried out by collaborating ports in the countries with international ports to establish a mutually beneficial reciprocal relationship.
“I think that the collaboration with international [ports] in Spain and China are excellent. If cargo is collected at a single location in Europe or China, they will be reciprocal with Pelindo ports,” the Transportation Minister said at BIMP-EAGA Maritime 2023 in Jakarta on Wednesday (22/02/2023).
The Transportation Minister explained that BIMP-EAGA Maritime 2023 was a form of collaboration in the maritime sector among the four countries to become global logistics powers.
“The four member countries must collaborate to improve their ports to become global logistics powers,” he said.
According to the Transportation Minister, the four ASEAN countries, Indonesia, Malaysia, the Philippines, and Brunei Darussalam, are lucky as they are located in the middle of Europe’s and China’s logistics routes. With that condition, he is asking the four BIMP-EAGA countries to collaborate and race to create a real program.
“We have been talking about collaborating, so today we are holding an exhibition. I am specifically asking Pelindo to execute what can be executed,” the Transportation Minister said.
The Transportation Minister affirmed that the number of ports in Indonesia is an advantage and a responsibility for the government to continuously improve their competitiveness.
“So, later, Pelindo must select several ports that they manage to be used as hubs,” the Transportation Minister said.
The Transportation Minister also affirmed that the maritime sector plays a large role in improving the economy of a country, especially ASEAN countries.
“Excellent collaboration, participation, and connectivity among the countries are required to improve the export value of each country and to improve the economy of ASEAN countries,” Budi said.
Challenges
During the occasion, Logistics and Supply Chain Agency Head Akbar Djohan said that, among the abundance of opportunities in the maritime sector of BIMP-EAGA countries, there are several challenges such as the lack of infrastructure, especially in the transportation, communication, and electricity sectors, and the lack of harmonisation of policies and regulations among member countries.
“To face current challenges in the industry, more investment is required in the infrastructure sector, especially in the transportation, communication, and power plant sectors, to support regional development,” Akbar said.
Then, he continued that cooperation and coordination among BIMP-EAGA countries are crucial, especially regarding policies and regulations, to create a more business-friendly environment. Lastly, every member country must provide support for micro, small, and medium enterprises (MSMEs).
Meanwhile, Indonesia Chamber of Commerce and Industry (Kadin) Transportation Division Deputy Chairperson Denon Prawiraatmadja said that business players, especially the ones in the logistics and shipping sectors, are demanded to be more sensitive about global development and to be more agile in facing difficult situations with many uncertainties.
“In the future, the logistics and shipping sectors, especially in Indonesia, will be more strategic as our maritime economy is pushed to contribute more to the construction and the economy in Indonesia. Indonesia’s maritime economy is also set to contribute 12.5% to the national GDP in 2045,” Denon said.
Denon added that the national shipping sector will be the backbone of national logistics activities thanks to a balanced construction in Indonesia. So, it will also make logistics costs more efficient in the future.
“With support from various stakeholders and suitable investments, Kadin believes that the maritime area of BIMP-EAGA [countries] can be a developing and dynamic economic area in Southeast Asia,” Denon mentioned.
