With High distribution cost, Infrastructure Must Support

The businessman complains about the high cost of distribution due to the lack of supporting infrastructure, or other facilities, either damaged or lack of access. This issue is raised in the talk show "Agricultural Infrastructure" in the 7th Agrinex Expo 2013, Sunday 7/5, JCC, Jakarta.

 

"The logistic cost of food and beverage industry can reach up to 14%, and distribution cost 30%. Despite such conditions, we as entrepreneurs have to keep operating because it is the nature of the industrial world," said one food and beverage entrepreneur, Ahmad Faiz, in the talk show.

 

Present in the talk show were Deputy Minister of Public Works, Dr. Ir. Achmad Hermanto Dardak, Secretary of Intercafe Center of IPB, Dr.Nunung Nuryartono with the moderator  Ir. Rifda Ammarina, Chief Organizer of Agrinex 2013. 

 

However, according to Hermanto in 2012 the food industry increased approximately 7.7%. Not only highway facilities are less supportive of economic progress, but the irrigation facilities as well are still far from what is expected.

 

Dr. Nunung cited the data that approximately 50% of damage irrigation in Indonesia is in the regency areas. In Java alone the damage reaches 20%. "This issue should be of particular concern for the government," said Nunung.

 

With regard to this issue, Hermanto Dardak admits that the construction of the facility is hampered with the question of  authority although in his view the division of tasks has been carried out. "The local government should also support for the provision of facilities in its region because we have already shared the task of authority," he said.

 

Hermanto Dardak said, in order to support with the provision of facilities, the government has also made some efforts, for example, providing funding of over Rp 300 million to each village every year to 5000 villages spread out in Indonesia. "With such funding, they can build roads, bridges, and also some market facilities," he said.

 

As for road access to facilitate economic activities, in some selected cities the government has constructed ring roads, hoping to expedite the vehicles transporting goods in distributing goods from the upstream to the market. In order to support irrigation, the government is also building several dams such as those in Banten and West Nusa Tenggara. (Mtd)