Jakarta (Antara Bali) - The Indonesian Logistics Association (ALI) has proposed that the budget expenditure on fuel subsidies could be allocated for the development of Eastern Indonesia in a bid to reduce the cost of financing logistics distribution.
"When the budget is used to develop the eastern areas, it will help the government's program to improve the distribution of goods and logistics," ALI Deputy Chairman Mahendra Rianto stated here on Jakarta.
Mahendra remarked that diverting the funds from the budget to the industry will help to establish factories in the eastern region, thereby creating jobs and boosting production.
He pointed out that production growth will enable smoother movement of goods, so that Java's distribution costs to the east could be reduced.
The distribution of goods from Java to the eastern region would reduce logistics costs, and thus, the people would not have to bear the burden of high delivery costs.
In addition, he noted that the development of maritime transportation must be carried out quickly as the delivery of goods by sea was cheaper than land transportation.
Mahendra emphasized that land transportation will need a larger fleet than using sea transportation, so that the operational and delivery costs can be curtailed.
"If there are a thousand containers to move goods from Java to Medan by land, it will use a thousand trucks, but if transported by sea, then it will use only one ship. Thus, the cost will be cheaper," he added. (WDY)
COPYRIGHT © ANTARA News Bali 2014
"When the budget is used to develop the eastern areas, it will help the government's program to improve the distribution of goods and logistics," ALI Deputy Chairman Mahendra Rianto stated here on Jakarta.
Mahendra remarked that diverting the funds from the budget to the industry will help to establish factories in the eastern region, thereby creating jobs and boosting production.
He pointed out that production growth will enable smoother movement of goods, so that Java's distribution costs to the east could be reduced.
The distribution of goods from Java to the eastern region would reduce logistics costs, and thus, the people would not have to bear the burden of high delivery costs.
In addition, he noted that the development of maritime transportation must be carried out quickly as the delivery of goods by sea was cheaper than land transportation.
Mahendra emphasized that land transportation will need a larger fleet than using sea transportation, so that the operational and delivery costs can be curtailed.
"If there are a thousand containers to move goods from Java to Medan by land, it will use a thousand trucks, but if transported by sea, then it will use only one ship. Thus, the cost will be cheaper," he added. (WDY)
Editor : I Gusti Bagus Widyantara
COPYRIGHT © ANTARA News Bali 2014