Heaptalk, Jakarta — The Indonesian Logistics and Forwarders Association (ALFI), representing logistics entrepreneurs, has responded to the government’s plan to eliminate import quotas and relax domestic content requirements (TKDN).
Akbar Djohan, Chairman of ALFI, stated that scrapping import quotas could stimulate logistics sector growth. “Import liberalization will likely increase the volume of goods entering Indonesia, which would drive up activities in unloading, transportation, and warehousing,” Akbar said in a statement on Wednesday (04/09).
Relaxing domestic content rules could also ease imports of components currently challenging to source locally, such as those for the automotive and electronics industries. “This policy may lower logistics costs, as companies won’t need to seek more expensive alternatives,” he added.
However, Akbar warned that an import surge could strain Indonesia’s already overburdened logistics infrastructure. He cautioned, “Our ports and airports frequently face congestion. Without capacity expansions, we risk container pile-ups and shipping delays.”
He highlighted risks for small logistics firms, noting that local forwarders might struggle to compete with larger foreign operators without policy safeguards. ALFI urged the government to implement strategic mitigation steps: infrastructure upgrades, local operator incentives, and industry collaboration.
Infrastructure upgrades include prioritizing port, airport, and land distribution network expansions to prevent bottlenecks. Local operator incentives are expected to support domestic logistics companies in enhancing competitiveness. Industry collaboration covers synergy with manufacturing sectors to smooth the transition. He emphasized, “Domestic logistics firms need mentoring schemes and easier financing access to compete effectively.”
ALFI remains optimistic that balanced measures could maximize the policy’s benefits. “If managed well, this could be a turning point to elevate Indonesia’s logistics performance to global standards,” Akbar said.
He also emphasized the need for banking support—particularly from state-owned banks (Himbara)—for logistics entrepreneurs, including SMEs, facing global challenges, including U.S. reciprocal tariff policies. Logistics SMEs require easier access to financing and competitive interest rates to survive and thrive amid global economic uncertainty.
