European Journal of Business and Management

ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online)

Vol.8, No.15, 2016

 

Authors :

Effnu Subiyanto, Doctoral student of Airlangga University
Djoko Mursinto, Economic professor of Airlangga University
Rudi Purwono, Economic lecture of Airlangga University

 

Abstract:

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.

Sources :

http://www.iiste.org/Journals/index.php/EJBM/article/viewFile/30577/31416