Economic Foreign Logistics Cost Analysis at the Cement Project of Pt Semen Indonesia

Cement is primarily a product to build massive infrastructure while Indonesia was experiencing a shortage of production last decade. Due to the situation, cement projects were rampant in the 2008-2015 period to anticipate further surprise demand. However to build a new cement plant is quite difficult due to the high cost of logistics. In this paper, four projects of Indonesia state's owned Semen Indonesia in Java and outside Java were examined to explore total logistics costs contributed by sea freight and domestic section. According to this research total logistics cost came from foreign sources was 6.464% while domestic contribution was 1.363% against total investment cost; however limitation of infrastructure contributes 27.129% towards domestic path.

Key Words: Cement, Logistics, Project, Foreign, Domestic