Harmonization of Transportation Lowers Staple Goods Prices of up to 25% in Puncak, Papua
PT Perusahaan Perdagangan Indonesia (PPI) is known to distribute cooking oil, wheat flour and sugar to Puncak Jaya, Papua. As a result, the prices of these three commodities are currently down by 25% from the previous average.
According to PPI Managing Director Agus Andiyani, it uses a more cost effective route to save on logistics costs to Puncak Jaya.
Before, the goods sent from Java transit in Jayapura, now it transit in Timika and passes Wamena then to Puncak Jaya. “We have chosen a cheaper route.
All this time, many from East Java goes to Jayapura first then to Puncak Jaya. One example is we pass by Timika by ship and then from Timika to Wamena by plane.
From Wamena to Puncak Jaya, we do it by land and the scheme turns out cheaper, “he said in Wamena, Papua.
Agus said that his side carried out harmonization between transportation modes by cooperating with Pelni and Pelindo.
According to him, the method is able to minimize the storage time of goods. Thus, he added, it did not need a warehouse because the goods that arrive at port are directly transported by trucks and plane. “Goods from ships coming from Surabaya at the Portof Pomako (Timika) are picked up immediately. When the goods arrive, the plane is already there to fly it to Wamena.
After arriving in Wamena, a truck is already waiting and departs from there. This way, there is no need to pay for warehouses and can reduce prices “he said.
According to him, this logistics scheme can reduce the prices of three commodities distributed by PPI to Puncak Jaya by up to 25 percent.
He pointed out that sugar was sold at Rp 35 thousand per kg but is now Rp 26,250 per kg. Meanwhile, the price of wheat flour went down from Rp 30 thousand to Rp 23,200 per kg and 1 liter of cooking oil from Rp 45 thousand to Rp 33,750.
“Therefore, the prices of goods could drop by 25 percent. Puncak Jaya must be 25 percent lower than the price at that time,” he explained.