Build logistics infrastructures to enhance agribusiness

agribusiness logistics

The agricultural sector in the last 3 years to contribute 12% – 14% of GDP. Meanwhile, products of agricultural commodities are vulnerable to the risk of damage during storage and shipping, so need to build infrastructures in the aims to maintain the contribution of agricultural, improve the competitiveness and to strengthen the supply chain logistics in the country.

Purposes / Objectives:

  • To strengthen the supply chain logistics of agricultural products in the country
  • To enhance the competitiveness of agricultural exports

Conditions and Why?

Chairman Supply Chain Indonesia, Setiajadi said that the agricultural sector is the third contributor to Gross Domestic Product (GDP).  The agricultural sector in the last 3 years to contribute 12% – 14% of GDP. Currently, the GDP value reached Rp 8,000 trillion  that agriculture contributed about Rp 1200 trillion.

Hence, country needs to maintain and improve the contribution of agricultural.

Challenges ?


Sekretaris Peternak Sapi dan Kerbau Indonesia (PSKI), Robi Agustiar explained that logistics costs for moving the cattle in the country is more expensive than importing livestock from abroad. For example, if compare the cost of transfering cattle from Kupang in NTT (Eastern of Indonesia) to Jakarta city than imports is more expensive relatively .

Products of agricultural commodities are vulnerable to the risk of damage during storage and shipping, so need to build infrastructures (including human resource, hardware, software) e.g. the logistics equipments, transportation, loading and unloading, and the specific ports.

What ?

Logistics infrastructures to be prepared better, e.g.:

  • To provide the specific dock at sea ports for handling livestock so that cattle do not need to be pushed into the water when transfering from / to the carrier ship at the beach.
  • To provide special mode of transportation for moving livestock. e.g., special cattle trains and ships.
  • To provide a more complete supporting facilities (infrastructures) for inspection of cattle at livestock quarantine centers in seaports, in the aims for logistics cost savings and speed up the inspection process.
  • To develop appropriate policies/rules/beleid to support agricultural logistics activities.
  • etc.

This challenge on the one hand is a business opportunity for investors / reputed companies / who are interested, of course, need to be studied before further investment.

Hopefully the more advanced agricultural sector in the country because Indonesia has a lot of natural potential in the field that could be developed.

Examples of enterpreneur (Susi Pudjiastuti) who builds air transportation for logistics solution :

susi pudjiastuti_pengandaran

With capital of Rp 750,000.00 (seven hundred thousands and fifty thousands rupiah) by selling jewelry , Susi began in 1983 as a professional fish collector in Pangandaran, West Java. Susi business continues to grow , and in 1996 Susi set up a fish processing plant PT ASI Pudjiastuti Marine Product with superior products such as lobster with brand ” Susie Brand ” .

When the fish processing business market expanded into Asia and America , Susi requires air transportation that can quickly transport the lobster , fish , and other marine products to buyers in the state are still fresh.

Supported her husband , Christian von Strombeck , an German who worked as aircraft mechanics and pilot in Indonesia , in 2004 Susi decided to buy a Cessna Caravan for Rp . 20 Billion using a bank loan . Through PT . ASI Aviation Pudjiastuti founded later , the only aircraft that she has used to haul lobster and fresh fish catch of fishermen in the shores of Indonesia to Jakarta and Japanese markets . Call sign used is Susi Air Cessna .

Two days after the earthquake and tsunami struck the tectonic Aceh and the west coast of Sumatra on December 26, 2004 , a Susi Cessna was the first aircraft to successfully reach the affected areas to distribute relief to the victims who were in an isolated area . Events that change the course of business at time the fisheries business started declining , Susi rent plane was originally used to transport marine products then also for humanitarian missions and people air transportation.

For three years running , the airline is growing up to have 14 aircraft , there are 4 in Papua , 4 aircraft in Balikpapan , Java and Sumatra . her company has 10 Cessna Grand Caravan , Pilatus Porter aircraft 2 , 1 plane and 1 star Diamond Diamond Twin star aircraft . Now Susi Air has 45 different types of aircrafts.

Susi Pudjiastuti ( born in Pangandaran , January 15, 1965 , age 49 years ) is a businessman and owner of President Director of PT . ASI Pudjiastuti Aviation or Susi Air flight from West Java .

Until early 2012 , Susi Air has 46 aircrafts with various types such as Cessna Grand Caravan , Pilatus PC – 06 Piaggio P180 Avanti and Porter . Susi Air employs 179 pilots , with 175 of them are foreign pilots . The 2012 Susi Air receives income of Rp. 300 billion and serves 200 pioneer flights.

Reference /  source:


6 responses to “Build logistics infrastructures to enhance agribusiness

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