Tuesday, 2 March 2021
Improving Cargo and Logistics Services, AP 1 MoU with ALFI on Five Things

In a bid to improve its cargo and logistics services throughout its airports, State Airport Operator PT Angkasa Pura I (Persero) – AP 1 commits to involve related parties, including the logistics and forwarding companies. This vision has encouraged AP1 to make a memorandum of understanding (MoU) with the Indonesian Logistics and Forwarders’ Association (ALFI/ILFA).

The MoU was signed by AP 1 Business Development Director Dendi T. Danianto and ALFI Chairman Yukki Nugrahawan on Monday 1 March 2021 at the Angkasa Pura I Head Office, Kemayoran, Jakarta.

The scope of this MoU includes First, security protection for users of air cargo services provided by AP 1; second, Increasing service level agreement (SLA), key performance index (KPI), and competence of human resources (HR) who handle cargo and logistics at all AP 1’s airports; third, standardization of cargo handling and logistics services at AP 1’s airports; fourth, provision of implementation supporting facilities such as storage, warehousing, rooms for logistics business players and forwarders, cold storage, fast track services, and others that can increase cargo volume; and Fifth; provision of multimodal logistics services, meaning that AP 1 will serve not only air cargoes but also land and sea cargoes.

In addition, the MoU also includes data and information exchange activities related to the development and improvement of cargo and logistics services.

Commending this MoU, AP 1 Business Development Director Dendi T. Danianto explained that within this uncertain era, building collaboration is more preferred than doing competition.

"In this increasingly complex and uncertain era, collaboration is imperative compared to competition,” he said, explaining that this MoU remain the realization of AP 1 collaboration with key stakeholders in the logistics sector which also aims to accelerate the implementation of the NLE (national logistics ecosystem) initiated by the government (Directorate General of Customs and Excise of the Ministry of Finance in 2020).

Echoing this view, Yukki Nugrahawan Hanafi, ALFI Chairman, added: "Collaboration is better than competition.” This MoU, he said, is a form of collaboration that can support the implementation of the NLE.

Yukki, who is also Chairman of Asean Federation of Forwarders’ Association (AFFA), expects the realization of NLE will support to increase Indonesia competitiveness. He expects Indonesia’s logistics performance index (LPI) to join top 30 in the world and in top 3 in ASEAN by 2024.

In addition, Dendi said, this collaboration is also an effort to support AP 1 revenue enhancement strategy, particularly in the logistics and cargo business areas.

Amid the pandemic Covid-19 outbreak, last year (2020), the air cargo traffic of AP 1’s grew by 2.09%, while the passenger and airplane traffic dropped drastically. In responding this and to anticipate the air cargo growth this year (2021) which was targeted to grow 2.1% to around 445,300 tonnes, AP 1 has carried out several initiatives, including collaboration with ALFI.

"It is hoped that this collaboration can support the company's cargo business optimization plan in the short and medium term," said Dendi.

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To maintain and optimize the potential growth in cargo traffic, AP 1 will carry out several initiatives such as initiating collaborative cargo and logistic development which aims to invite Local Governments to make efforts to increase trade in various industrial sectors that can indirectly encourage cargo traffic at AP 1’s airports. In addition, AP 1 will make focus group discussion on cargo services with stakeholders to discuss efforts to realize integrated air cargo services, implementation of single integrated IT platform as an effort of revenue safeguarding, and cargo transhipment to avoid cargo congestion and efforts to ensure safety and security.

Author: Damas Jati
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