Optimism is a must, Strategy is a demand.

Innovation, Focus Encourage LPI to Hold Steady Market during this Hard Time

The covid-19 outbreak has hit any sector, including the logistics sectors. Link Pasipik Indonusa (LPI) – Blue Sea, one of Indonesia’s leading forwarder in consolidation, affirmed it. But, LPI has shown a very good response. Doing innovation and focus to certain commodities encouraging this company to still keep stable market during this hard time

Just like global condition, Indonesia freight forwarders are facing similar situation. Chairman of Indonesia Logistics and Forwarders’ Association (ALFI/ILFA) Yukki Nugrahawan Hanafi noted that unless doing innovation, forwarders will suffer a drop until 70%.

Echoing the views, General Manager of LPI Yulia Ningrum affirmed such trend drop, but saying that each forwarding company will face different impact, depending on the strategies of each.

“It is true. We are facing some drop of demand in certain commodities. However, there are some commodities which are now growing up. To prevent from a further drop, it is important for a forwarder to take market from commodities which are growing up, in addition to improve service to customers, of course,” Yulia said in a discussion with Indonesia Shipping Gazette.

there were some drop in some commodities of textile, textile-related products, and electronics but some commodities of health equipment, foods, and drinks that even grew up during this pandemic.

Though lower than the target, but overall we still kept balance during the first quarter,” she said, adding that in Q1 there were 17% lower than target or LPI still reached over 83% of the target.

LPI’s stable market is also helped by its various customers. “Our customers are very various. They are facing various market drop from 10 to 30%,” said Yulia.

“In brief, amid this pandemic, we continue to provide excellent service quality but we follow the government protocols to prevent further spread of this virus. Shifting system and doing WHF are parts of our efforts,” she said.

To support its customers during this period, LPI also provides some incentives, including providing E-DO (electronic delivery order) for import shipment so no need for customers to come to LPI Office and free storage if they can meet some requirements.

Yulia agrees with initiatives of related associations that asked for incentives and relaxation for business of transportation, logistics, forwarding, etc. She also appreciated the government policy to allow logistics companies to open service during the PSBB.

But, she asks the government to soon realize tax incentives and duty relaxation to help forwarding companies from further loss. “For example, the government can cut the export manifest penalty and the progressive tariff at the port, zero import duty for products relating health equipment.”

In brief, to make the business sustainable during this hard time, all stakeholders must uphold synergy. “The government is expected to give tax incentives and duty relaxation while customers are expected to continue support. Within this synergy, we, forwarding companies, including us (LPI) will provide excellent service,” she said.

LPI, she said, even within this very difficult time, will continue to provide excellent service to customers through maintaining and product development to the current customers.