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

Cement is primarily product to build massif infrastructure while Indonesia was experiencing shortage of production last decade. Due the situation, cement projects were rampant in period 2008-2015 to anticipate further surprise demand. However to build a new cement plant is quite difficult due to high cost of logistic. In this paper, four projects of Indonesia state’s owned Semen Indonesia at Java and outside Java were examined to explore total logistic cost contributed by sea freight and domestic section. According this research total logistic cost came from foreign source was 6.464% while domestic contribution was 1.363% against total investment cost; however limitation of infrastructure contributes 27,129% against domestic path.

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