Denpasar, Eyewitness | The surge in global logistics costs due to ongoing geopolitical conflicts is now beginning to put pressure on Indonesia’s export competitiveness. This situation is not only a national issue but also a serious alarm for strategic regions like Bali, which are being pushed to become international logistics hubs. The General Chair of the Bali Province Regional Executive Board of the Indonesian Logistics and Forwarders Association (ALFI/ILFA), Dr. Anak Agung Bagus Bayu Joni Saputra, S.E., M.M., or Gung Bayu Joni as he is familiarly known, emphasized that this situation should be read as both a stern warning and a momentum for change.
According to him, today’s global dynamics reaffirm a fundamental point he has often made: logistics is the lifeblood of the economy. “Once again, we are reminded that logistics, as I often say, is the lifeblood of the economy of a nation and region. When geopolitical turmoil occurs and distribution barriers arise, the impact is immediately felt. Costs increase, prices rise, and it can even trigger a crisis if not properly anticipated,” he stressed.
This statement is not without basis. The conflict in the Middle East has triggered significant changes in international shipping routes. Ships must take longer detours to avoid vulnerable zones, increasing travel times and fuel consumption. In the logistics industry, this situation directly impacts operational costs.
Gung Bayu Joni explained that the impact does not stop at the industrial or export level. The effects extend far into people’s daily lives. “The politics of war and the global economic policy are not only impacting the Middle East. The impact extends to households. Housewives shopping for daily necessities are also feeling the impact. Because rising logistics costs will lead to higher prices for basic necessities, nine basic commodities. This is something that is often overlooked, but it is very real,” he said seriously.
He believes that many still view logistics as a technical sector, yet its impact is profoundly systemic. When distribution is disrupted, price stability is also disrupted. On a large scale, this can even disrupt national economic resilience. “Logistics isn’t just about shipping goods. It concerns economic stability. If distribution is disrupted, prices rise, purchasing power declines, and the economy can slow down. This is an unbreakable chain,” he explained.
In the context of exports, he emphasized that rising logistics costs directly erode the competitiveness of Indonesian products in the international market. Exporters must bear higher costs, while selling prices in the global market cannot always be raised. “If costs rise but selling prices remain the same, margins are eroded. This puts pressure on our exporters. They could even lose out to other countries with more efficient logistics systems,” he said.
However, amidst these pressures, Gung Bayu Joni still sees strategic opportunities. He believes that the current global situation presents an opportunity for major improvements in the national logistics sector. He believes that Bali is strategically positioned to take on a larger role, particularly as an international logistics hub for Eastern Indonesia. With its vast potential in the fisheries and maritime sectors, Bali is considered capable of becoming a distribution hub connecting domestic and global markets.
“Bali has all the prerequisites: a strategic location, international connectivity, and the potential of superior commodities from Eastern Indonesia. It’s just a matter of how we build an efficient and integrated logistics system,” he said. He also emphasized the importance of developing supporting infrastructure such as cold storage, export ports, and technology-based distribution systems. Without these, the vast potential of Bali and Eastern Indonesia will be difficult to maximize.
“We can’t just talk about potential. There must be execution. Logistics infrastructure must be strengthened, digitalization must be accelerated, and collaboration must be expanded,” he stressed. He also encouraged the government to continue expanding export markets to relatively stable regions. Market diversification is a crucial step to reduce dependence on conflict-affected areas.
However, he reiterated that market expansion must be balanced with logistical readiness. “We can’t open new markets without our logistics being ready. These must go hand in hand,” he said. Furthermore, Gung Bayu Joni emphasized that the current global situation should be a wake-up call for all stakeholders. Indonesia can no longer rely on old patterns of logistics management.
“Going forward, we must be more adaptive, more efficient, and more integrated. Logistics must be a top priority in It’s a major factor in economic development,” he said. He also called on all parties to view this issue comprehensively, not only from an economic perspective but also from a humanitarian perspective. Geopolitical conflicts, he said, always have far-reaching impacts that transcend national borders.
“We hope this conflict will end soon. Because its impact is not only on trade, but also on human life in general. Global stability is essential for shared prosperity,” he said.
Concluding his statement, Gung Bayu Joni reiterated his commitment to encouraging Bali to become a major player in the national and international logistics system. “Bali cannot simply be a spectator. We must be part of the solution. And logistics is key to that,” he concluded.
