1. Human Resource in Indonesia Logistics Development
Zaldy Masita
Chairman of Asosiasi Logistik Indonesia (ALI)
Bandung
19 July 2017

2. Indonesia Logistics Outlook 2015

3. 6 Logistics Key Drivers Strategic Commodity Infrastructure Regulation
Logistics Service Provider
Information Technology & Communication
Human Resources

4. Logistics Cost Structure
Contribute around 40%-60% of the cost
Contribute from 0% - 30%
Management
Labor
Network
ICT System
Asset
Contribute around 0-20%
Contribute from 5 -15%

5. Logistics Service Provider (LSP)

6. Logistics Service Provider Driver
Low
1PL/2PL
3PL
4PL
Asset Investment
High
IT Involvement
Low
High

7. Logistics Service Provider Driver
Low
1PL/2PL
3PL
4PL
Part of Selling Price
Risk
Total Logistics Cost
Part of Logistics Cost
High
Revenue
Low
High

8. Logistics Service Provider Driver
1PL/2PL
3PL
4PL
High
Business Sustainability
Low
Barrier to Entry
Low
High

9. Logistics Service Provider Driver
Low
1PL/2PL
3PL
4PL
Operation Execution
High
Planning
Low
High

10. Logistics Service Provider Driver
Low
1PL/2PL
3PL
4PL
Human Resource Quantity
High
Human Resource Quality
Low
High

11. Logistics Service Provider Capabilities
Finished goods warehousing
Inbound logistics
Production
Manuf Materials Mgt
Logistics Service Provider (LSP)
Customer delivery
After sales service
Shippers
Express couriers
1PL/2PL
Freight Forwarders
Local transport companies
3PL/4PL
Logistics companies
Strong capability
Medium capability
No capability

12. Logistics Cost vs 3PL Revenue
Global Logistics Costs and Third-Party Logistics Revenue (US$ Billions)
Region
Country
2011
GDP¹
Logistics
(GDP %)
2011 Logistics
Cost
3PL Revenue %
3PL
Revenue
North America
Canada
1,759.0
9.9%
174.2
8.4%
14.6
Mexico
1,185.0
12.0%
142.2
8.1%
11.5
United States
15,060.0
8.5%
1,282.0
10.4%
133.8
18,004.0
8.9%
1,598.4
10.0%
159.9
Europe
France
2,808.0
9.2%
258.3
10.1%
26.1
Germany
3,629.0
8.3%
301.1
30.4
Italy
2,246.0
9.4%
211.2
10.6%
22.4
Netherlands
858.3
69.5
14.2%
9.9
Spain
1,537.0
144.4
13.6
United Kingdom
2,481.0
210.9
21.1
Others
4,130.7
9.0%
371.8
36.9
17,690.0
1,567.2
10.2%
160.4
Asia Pacific
Australia
1,507.0
10.5%
158.2
15.6
China
6,989.0
18.1%
1,265.0
7.0%
88.6
Hong Kong
242.4
21.9
11.4%
2.5
India
1,843.0
13.0%
239.5
5.7%
13.7
Japan
5,855.0
8.7%
509.6
8.8%
44.9
Singapore
266.5
23.9
11.7%
2.8
South Korea
1,164.0
104.7
11.1%
11.6
Taiwan
504.6
45.5
11.0%
5.0
836.1
10.7%
89.4
7.2%
6.4
19,207.6
12.8%
2,457.7
7.8%
191.1
South America
Argentina
435.2
12.6%
54.9
6.0%
3.3
Brazil
2,518.0
11.6%
292.1
8.2%
24.0
Venezuela
315.0
11.9%
37.5
5.9%
2.2
909.5
129.1
7.7%
10.0
4,177.7
12.3%
513.6
39.5
Remaining Regions/Countries
11,080.7
15.9%
1,761.8
3.7%
65.2
Total
70,160.0
11.3%
7,898.7
616.1
3PL Revenue vs Logistics Cost
Logistics Cost vs GDP - efficient
Source: Armstrong & Associates 2011

13. The Challenge of Logistics Human Resources Development in Indonesia
Limited Logistics Education Institution (S1,S2, vocational)
Scarcity for management level in Logistics and Supply Chain
Less than 2% of annual salary for training budget in local logistics company
Limited Standarization in Logistics that also cover Safety, Health, Environment Aspect and Multimoda
Different Economy & Infrastructure condition in all region in Indonesia, and high uncertainty in Logistics Service Level
New Technology in Logistics & SCM

14. Action that need to take to improve human resource quality in Logistics
Government need to boost up education effort in Logistics by
Increase budget to support education institution (state & private) to open Logistics Program
Overseas scholarship for master degree in Logistics
Incentive for private company that provide logistics training for their employee
Open more Community College in Logistics in all province
SKKNI for Logistics
Online Course for Logistics & Supply Chain
Internship program for lecture in private company & BUMN in logistics area for 6-12 months
Support ICT & innovation in Logistics area

15. Digital supply chain Logistics Control Tower Cloud Based Application
IOT
AI & Robotic
Big Data

16. Start Up in Logistics

17. The Progress of Logistics Profession Development in Indonesia
Since 2003 – ALI run workshop/seminar/training in Logistics and Supply Chain every month.
ALI establish Sembada Pratama in 2010 as the first School in Logistics and Supply Chain (vocational)
2011 – ALI and JILS (Japan Institute of Logistics System) establish certification of Kaizen Logistics in Indonesia
December 2012 – BNSP appoint ALI as the first organization as Lembaga Sertifikasi Profesi (LSP) for Logistics
March 2013 – European Logistics Association (ELA) agree to appoint ALI to establish ELA certification in Indonesia

18. Education is long term investment and could not be measure with short term approach

19. Terima Kasih www.ali.web.id