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De-Risking Global Supply Chains: Opportunities and Challenges for Indonesia
china +1 strategy

In recent years, the global supply chain landscape has undergone a significant shift. Western countries—particularly the United States and the European Union—have begun adopting the “China +1” strategy, aiming to reduce their overdependence on China by diversifying their manufacturing bases to other parts of Asia, including Vietnam, Thailand, and Indonesia.


A Golden Opportunity for Indonesia

This strategic shift presents a major opportunity for Indonesia. With its strategic geographical location, large domestic market, and stable economic outlook, Indonesia is well-positioned to attract new investment. One of the most visible impacts is the growing demand for modern warehouses and efficient ports. Industry players require high-capacity, high-speed logistics facilities to handle increasingly complex and high-volume supply chains.

Beyond physical infrastructure, logistics digitalization is becoming a critical need. The integration of tracking systems, automated documentation, and AI-powered route optimization is rapidly becoming the new standard. Indonesia must act swiftly to keep pace with regional competitors that are already advancing in this area.


Challenges: Infrastructure and Human Resources

However, this opportunity also brings significant challenges. Indonesia’s logistics infrastructure remains uneven, particularly outside Java. Ports, access roads, and logistics facilities in many regions are not yet equipped to support large-scale, time-sensitive cargo movement.

At the same time, the logistics workforce must evolve. As supply chains grow more complex, there is an urgent need for talent who are tech-savvy, skilled in logistics management systems, and capable of adapting to global standards and demands.


The Strategic Role of PT SPIL

In this dynamic environment, PT SPIL (Salam Pacific Indonesia Lines) plays a crucial role in maintaining national logistics stability. With an extensive and integrated sea freight network, SPIL ensures the seamless movement of commodities from production centers to consumer regions across the Indonesian archipelago—whether from eastern production zones to western markets or vice versa.


Through multimodal logistics services and digital platforms like mySPIL, the company addresses both national distribution needs and the growing demand for logistics digitalization. SPIL stands as a key enabler in strengthening domestic supply chains, positioning Indonesia to better embrace global industrial relocation trends.

The Western strategy of de-risking supply chains presents both a windfall and a wake-up call for Indonesia. With the right investments in infrastructure, talent, and logistics ecosystems, Indonesia can become a vital node in the post-China global supply chain. In this transformative era, national logistics players like SPIL will form the backbone of sustainable economic growth.

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