SOE Targets Food Price in Papua to Decline 25 Percent

Papuan Culture.

State-Owned Enterprises (SOEs) in the trade sector, PT Perusahaan Perdagangan Indonesia (PPI) targets the Highest Retail Price level of nine basic commodities in Puncak Jaya, Papua to be able to shrink by 25 percent through the efficiency of logistics distribution.
"Our target is commercial but measurable," said President Director of PT PPI, Agus Andiyani, in Jakarta, Tuesday (10/10).
Agus revealed, it will optimize the use of transportation mode for the distribution of foodstuffs in order to realize the price reduction target. Because the distribution of logistics is the main cause of soaring food prices.

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First, to change the route of logistic delivery to Puncak Jaya, Papua becomes more effective, in order to encourage cost efficiency.
In the current distribution scheme, shipping of foodstuffs is done from Surabaya to Jayapura using cargo ships. Then continue with the cargo plane to Puncak Jaya.
Going forward, PT PPI initiated a new route that is, delivery from Surabaya to Timika passes another toll. Next, food is delivered via Hercules type cargo plane to Wamena, and continued by truck overland to Puncak Jaya.
Nevertheless, he still finds a critical point of the route.
"The critical point is Timika to Wamena," he added.
An unfinished road from Timika to Wamena causes PT PPI to bear the high cost burden of having to send the Hercules plane logistics.
The second attempt, changing the supply chain scheme by adjusting the logistics delivery schedule through the shipping modes of PT PELNI (Persero) and the aircraft directly. As a result, the company does not need to increase the cost for logistics storage in the warehouse.

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"We will continue to minimize the inhibition of the supply chain cycle," he said.
Sembako shipped to Puncak Jaya Papua with the scheme will arrive in the next one week.
"Now unloading at Tomako port, Timika."
According to him, if the scheme is implemented the price of three basic commodities to be delivered to Puncak Jaya, Papua will decline.
As an illustration, the price of sugar in Puncak Jaya Papua will decrease from Rp 29,000 per kilogram to Rp 21,750 per kilogram. While the price of oil will decrease from Rp 31,000 per liter to Rp 23,250 per liter. For the price of flour, it will decrease to Rp 18,000 per kilogram from Rp 24,000 per kilogram.

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