Study application of the domestic freight logistics system in Indonesia

Abstract

With the geographic conditions of Indonesia, the availability and need for commodities in each province are different, the fluctuations and disparities in the prices of basic goods between regions are quite high, are driving factors for inter-island trade. inter-island trade has an important role in the economic sectors of society. The geographic condition of Indonesia with 62.89% sea area, means that the modes of transportation that can be selected in inter-island trade are sea transportation and air transportation. The choice of transportation mode is closely related to the 9R of logistics principles, namely: Right Way, Right Product, Right Quantity, Right Quality, Right Place, Right Time, Right Customer, Right Cost. The development of the digital era that has penetrated all aspects of human life has also influenced the patterns of world trade which have begun to change since the presence of e-commerce. This study will try to potray how the current inter-island trade logistics system in Indonesia is conduct and how electronic commerce (e-commerce) affect the logistics business. This research aim to provide the right input for business actors in choosing the mode of inter-island trade transportation.