Synergy among the Indonesia state-owned enterprise under Ministry of State-Owned Enterprise Republic of Indonesia brings on 25% price reduction of cement and basic needs in Puncak Jaya Regency, Papua Province.
A collaboration among Indonesia state-owned enterprises (Badan Usaha Milik Negara/BUMN) have successfully decreased the price of cement and basic needs in Puncak Jaya Regency, Papua Province. 25% reduction of cement and basic needs targeted by Ministry of State-Owned Enterprises can be attained caused by the cooperation between Perusahaan Perdagangan Indonesia Inc. (PT PPI), Pelni Inc., Pos Indonesia Inc., and Indonesia National Army (Tentara Nasional Indonesia/TNI).
Special staff from Ministry of Government Enterprise, Devy Suradji stated that the reduction of cement and essentials needs price will not be successful if the government enterprise working alone on its own, he is expecting other government enterprises to join and contribute in this program.
Previously, the price of sugar in Puncak Jaya reached Rp29.000/kg now reduced to Rp21.750/kg; the price of cooking oil used to be Rp31.000/kg now reduced to Rp23.250/kg; the price of flour before was Rp24.000/kg now is Rp18.000/kg; the cement price decreased as well from Rp1.500.000 to Rp500.000 for size 40 kg/sack.
The price reduction can be reached because of PPI Inc strategy in changing the distribution route so that it could decrease the distribution cost. Earlier, the track of distribution through Surabaya – Jayapura (sea expedition) – Puncak Jaya (cargo aircraft); now the distribution route through Surabaya – Timika (Sea toll) – Wamena (Cargo and Hercules Aircraft) – Puncak Jaya (Truck with capacity 1,5-5 ton), then the goods are distributed to the markets, shops, and branches of Pos Puncak Jaya Inc. Besides, PPI Inc harmonizes inter-transportations mode through adjusting plane departure time and the arrival of the ship as well, so the new distribution route does not need stock point warehouse.
“Although there is a price reduction, PPI Inc does not experience the loss either, PPI Inc still earns return even though the deviation is low.” Said President Director of PPI Inc, Agus Andiyani.
Keyword: West Papua, Papua Province, Indonesia, welfare, PT PPI, PT Pelni, PT Pos Indonesia, TNI, Ministry of State-Owned Enterprises, basic needs price, cement price