This logistics hurdle has led to another critical problem: exporters in Aceh are struggling to export goods through their own port and are forced to route shipments through Medan Port instead.
What are the causes of this issue, and what challenges are commonly faced by EXIM entrepreneurs in Aceh? Let’s dive into the answers in the following overview.
As a country rich in natural resources, it’s no surprise that Indonesia’s raw material export business continues to thrive.
However, business owners in this sector frequently face various challenges—particularly in managing the logistics of exported goods.
This issue affects many regions, including Aceh, which is no exception.
The logistics problems here have led to another major issue: exporters in Aceh are unable to ship goods through their local port and instead must rely on Medan Port in North Sumatra.
What causes this situation, and what specific obstacles do EXIM players in Aceh face? Let’s explore.
Why EXIM Activities in Aceh Are Carried Out Through Medan Port
Aceh is blessed with abundant natural resources and has strong export potential to various countries. However, in practice, most export shipments from the region are not processed through local ports but are rerouted via Medan Port in North Sumatra.
This issue has also been acknowledged by Safuadi, Head of the Aceh Regional Office of Customs and Excise. He noted that crude palm oil (CPO) is one of the most heavily exported commodities from Aceh.
Other exported raw materials include betel nuts, coffee, ginger, and lime.
According to Safuadi, Aceh exports approximately 1.2 million tons of CPO annually, accounting for about 60% of the province’s total exports. Shockingly, only a small fraction of this volume is shipped through Aceh’s own port.
There are two main reasons behind this problem, according to Safuadi:
-
The absence of adequately sized and proper logistics warehouses like those in Medan.
-
The lack of consolidators who gather and manage goods ready for export.
Challenges Faced by EXIM Players in Aceh
In addition to the above issues, business owners in and around Aceh face several other challenges:
1. No Imported Raw Materials for Return Trips
One of the most pressing issues is the high cost of shipping due to empty return trips. When exporters ship raw materials abroad via sea freight, the vessels often return empty.
This naturally increases shipping costs since exporters must cover both outbound and inbound fees.
This is largely due to the lack of import activity into Aceh, as the region still lacks supporting industrial activities—such as manufacturing of waste bins, tissues, and plastic products—which are not locally produced.
2. Difficulty Finding Reliable Consolidators
Another challenge is the difficulty in finding reliable and capable consolidators.
Limited competency in this area can significantly inflate logistics costs due to inefficiencies and mismanagement in the consolidation process.
Transcon Steps In to Overcome EXIM Challenges
Feeling frustrated by sluggish EXIM activities in Aceh caused by logistics hurdles and inflated costs? If so, it’s time to consider Transcon Indonesia as your logistics partner.
Transcon understands customs regulations and is supported by strategic partnership facilities—making it possible to serve your logistics needs at efficient costs.
Moreover, our team is equipped with advanced IT capabilities, and in today’s Industry 4.0 era, having tech-savvy human resources is essential for boosting productivity and competitiveness.
Consult your EXIM logistics needs with Transcon Indonesia and unlock brighter business prospects starting now!