Topic: 2024-Supply Chain Stability
Country: Indonesia
Delegate Name: Noah Lewis
Supply chain stability is key to a country’s success. Without a stable supply chain, a country will crumble and be unable to function. Many factors, such as natural disasters, conflict, and labor shortages, can affect a country’s supply chain.
For years, Indonesia’s supply chain has been inefficient. It faces significant challenges such as poor infrastructure and a weak logistics industry. Indonesia’s inadequate transportation infrastructure, such as poor road networks and limited port capacity, leads to delays and increased costs for businesses and makes it difficult to transport goods within the country and to international markets. Indonesia’s logistics industry is also underdeveloped. These logistical difficulties result in poor operations and domestic delivery times that are two to three times greater than in comparator countries. A bottleneck is created in inbound logistics due to Indonesia’s lengthy turnaround times, which are more than twice as long as those in foreign ports. Indonesia is being prevented from having an effective logistics and supply chain sector by these issues, which range from planning to last-mile delivery. Due to its underutilized transportation infrastructure, high domestic demand, and lengthy domestic delivery times, Indonesia’s logistics cost-to-GDP ratio is up to three times higher than that of other nations.
The country’s progress toward a better national logistics and supply chain is being delayed by these underlying problems, which are causing a vicious loop. However, recently Indonesia has begun to pay greater attention to improving the efficiency of the supply chain. Indonesia has set a goal of being the fifth to seventh largest economy in the world by 2045. Indonesia has started projects to support this goal by reducing logistics and supply chain costs by 17%. Another way to achieve this goal is digitalization. Many other countries around the world have used digital technology to rebuild their supply chains and logistics industries, and this strategy is having a significant influence. Indonesia has started this process, but there is still a long way to go. Continuing on this path in Indonesia has the potential to significantly enhance operations and give the nation the tools it needs to grow.
Bibliography:
Uncovering the challenge of Indonesia’s supply chain: https://blog.fleetx.io/uncovering-the-challenges-of-indonesia-supply-chain/#:~:text=In%20conclusion%2C%20Indonesia%27s%20supply%20chain,the%20efficiency%20of%20its%20economy
Indonesia’s Digital Economy
https://www.trade.gov/country-commercial-guides/indonesia-digital-economy#:~:text=National%20Focus%3A%20Indonesia’s%20government%20has,leading%20digital%20economy%20by%202030
