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Container ‘Apocalypse’ is getting worse, South Korea asks RI for help

Jakarta, CNBC Indonesia SOE Minister Erick Thohir spoke about global supply chain issues that are a challenge for Indonesia in the future. One of the problems is the scarcity of containers.

The scarcity of containers occurs because there is no balance of world trade. The schedule of sailing ships is getting smaller which makes the price of cargo or freight soaring drastically. So that some countries have a lot of problems with the supply of raw materials.

“Containers are very short, yesterday I had a meeting with the South Korean Ambassador for the first time Korea Korea lacks UREA The industry asks us to export there. Global trade policy was conveyed by the president during the G20 supply chain this affects, so we are asked to send raw material as much as possible,” said Erick in the webinar Portrait of the Future of the Indonesian Logistics Industry in the Era of Disruption, Tuesday (11/23/2021).

Erick warns that there is a need for anticipation so that it doesn’t happen shock in Indonesia. Moreover, there was a global shock pressure where commodity prices were high.

In addition, Erick Thohir also mentioned Indonesia’s logistics costs which are still expensive. Where Indonesia is recorded at 23% of the Gross Domestic Product (GDP), in contrast to Singapore only 8%, Malaysia 13%, and India 13%.

Previously, President Joko Widodo was restless with global supply chain disruptions. This is the smell problem that haunts the world after the Covid-19 pandemic.

“Countries are currently confused about the global supply chain and our dependence on one, two, three countries. Also the difficulty of containers, almost all of this is because of the disruption that is really confusing and the complexity is increasing,” said Jokowi.

[Gambas:Video CNBC]

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