Considered Under-Developed, Economist Faisal Basri Saddened By Sea Transportation's Decreasing Capacity: Shipping Goods Is Still Expensive

Indef's senior economist, Faisal Basri. (Photo: Doc. Antara)

JAKARTA - Indonesia is a maritime country where seafarers are supposed to be the liaison between the islands in the country. But unfortunately, the sea transportation sector is considered underdeveloped. In fact, it is more profitable than air transportation. This condition makes the cost of shipping goods is still very expensive in Indonesia.

Indef senior economist Faisal Basri said the number of sea transportation in Indonesia is getting smaller day by day. In 2010 the capacity of sea transportation in Indonesia was 8.96 percent, but in 2020 the number decreased to 6.94 percent.

"It's sad when I see it, if I may be sad that sea transportation is getting lower day by day," he said in a webinar, Friday, October 8.

Faisal said that the decrease in sea transport capacity was very unfortunate. This is because sea transportation is very much needed for the distribution of goods to all regions in Indonesia, especially remote areas.

With the decline in the number of sea transportation in Indonesia, said Faisal, this has an impact on logistics costs in the country. According to him, shipping costs are very expensive.

"So far, air transportation has increased tremendously from 15 percent in 2010 to 29 percent. So we are biased by air, the sea is neglected. Now air transports people, sea transport transports goods. So we are stuck in goods, people are more mobile, goods still expensive if transported by sea," he said.

Faisal said that the sea transportation sector was actually very resistant to the impact of the COVID-19 pandemic. This is evidenced by the increasing number of sea transportation. Where the sea transportation capacity from January to June 2021 increased compared to 2020. This year the sea transportation capacity reached 7.08 percent while in 2020 it was only 6.94 percent.

According to him, this is proof that the sea transportation business is actually profitable, even more profitable than the air transportation business.

"In fact, he rose during the pandemic era, so the sea is more resistant to the pandemic. The least resistant one seems to be trains, then air transportation," he explained.