The government is committed to continuing to spur infrastructure development in order to improve connectivity, which has been the cause of high operational costs in the logistics sector. This is evidenced by World Bank data, which states that logistics costs in Indonesia reach 23 percent of Gross Domestic Product (GDP), higher than the average for other ASEAN countries of around 14 percent.
Therefore, Deputy Minister of Industry (Wamenperin) Faisol Riza fully supports the plan of InJourney Aviation Services (IAS) to develop the Aerotropolis area, which integrates the airport with the surrounding area, including industry, housing, warehousing, meeting places, and retail businesses.
“The government actually supports this IAS initiative, because it is hoped that the ecosystem will help encourage and drive various industrial sectors, especially the cargo and logistics industry,” said Wamen Faisol when receiving a visit from IAS representatives at the Ministry of Industry Office, Jakarta, on Friday (10/1).
The Deputy Minister of Industry said that the presence of the aerotropolis area allows the growth of new promising business clusters, and has a broad economic multiplier effect, along with easy connectivity of goods and people.
In terms of investment, continued Deputy Minister Faisol, the aerotropolis area has several advantages. First, it benefits from the transportation facilities that are already available and integrated with adequate roads.
“In addition, there is infrastructure support, both to meet water and electricity needs that are already good. These advantages must be mentioned in the area development plan, because not many have something like this,” said the Deputy Minister of Industry.
IAS President Director, Dendi Tegar Danianto said that his party as a government partner has had long experience over the past five years in the logistics and cargo terminal industry. Currently, there are nine major air cargo hubs and 39 cargo terminals managed by IAS throughout Indonesia, in order to meet the needs of industrial distribution, both domestically, export and import.
“When compared to land and sea, air cargo does tend to be more expensive. But for some industries that focus on time sensitive or require speed, we can enter. “The price is also quite competitive compared to other countries,” said Dendi.
In order to optimize the existence of this air cargo hub, continued Dendi, IAS plans to build an 80-hectare aerotropolis area at Yogyakarta International Airport. On the area, there will be residential, office, sports center, hospital, retail business, warehouse, hotel, and exhibition location.
“Later this warehouse will be close and have special access to the airport, close to the MICE center for exhibitions, so it will be a single area to improve the economy in Kulon Progo,” added Hendi.
It is known that the global logistics market is estimated to reach USD12.68 trillion in 2025. This positive trend follows the growth of e-commerce which is predicted to reach USD7.4 trillion in 2025, thus requiring innovation in the logistics sector that is more efficient.
The meeting between the Deputy Minister of Industry and IAS representatives was accompanied by the Head of the Center for Optimization of Industrial Technology Utilization and Industrial Services Policy of the Ministry of Industry, Bambang Riznanto, and the Director of Access to Industrial Resources and International Promotion of the Ministry of Industry, Syahroni Ahmad.
Meanwhile, also present were IASS President Director M. Putra Patriadi, Gapura President Director Troficiendy Suroso, AP Support Director Bambang Arsanto, IASH President Director Yundriati Erdani, SEGH Business Technology and Technology Muchdian Muchlis, SEGH Cargo Logistic Wynand Renee Van Joost, GH IAS Corporate Secretary Agus Rosadi, IAS Stakeholder Relations Eka Aryani.
