07 Nov
Indonesia and Hong Kong Collaboration in Logistics Industry Opens Investment Opportunities
The logistics collaboration between Indonesia and Hong Kong presents an exciting opportunity to leverage the strengths of both regions in Southeast Asia's trade hub. With their strategic positioning, both regions can boost connectivity and trade in Asia, offering a competitive advantage through closer collaboration.
In the seminar Indonesia - Hong Kong Logistic Industry Collaboration & Global Opportunities organized by the Hong Kong Trade Development Council (HKTDC) attended by Mr. Kevin Chiu, Director HKTD who gave a welcoming speech, and Mr. Harry Sutanto, Vice Chairman ALFI ILFA, gave the opening speech. Speakers are Ms. Reef Man, CEO of Hyper Mega Shipping, Ms. Chloe Deng, Director, Public Affairs, International Business, Cainiao, Ms. Nova Triana, Area Cargo Manager Indonesia Cathay Pacific Airways, Mr. Hillwan Yogi B., Head of Business and Talent Attraction/Investment Promotion Invest Hong Kong, in Caroline Asto Ballroom, The St Regis Jakarta, (4/11/24).
Read more: Improving Indonesia's Trade, Export Transactions Continue to be Boosted
Harry Sutanto, Vice Chairman ALFI ILFA, said that this initiative gives a positive sign that the issue of logistics is an important factor for the exchange of trade between Indonesia and Hong Kong and vice versa.
Mr. Harry hopes that this seminar will bring together the industry player to exchange market insights, discuss possibilities and explore new windows for collaboration. I name it not only Collaboration but “CollaborACTION”.
Ms. Reef explained how Hong Kong's port has a strategic role in connecting the world. Hong Kong harbour has a very advanced and efficient infrastructure including loading and unloading facilities. Hong Kong is one of the countries with the busiest transportation network. Hong Kong International Airport is a leading international center renowned for its connections and cargo handling capacity. According to ACI (Airports Council International), Hong Kong air cargo was named the first, busiest cargo airport in the world in 2023.
Secondly, Hong Kong Harbour is one of the busiest in the world. Its strategically located harbour facilitates trade across Asia and beyond. Hong Kong's imports from Indonesia will be US$2.98 billion over 2023, according to the UN COMTRADE database.
Read more: Strategi Pemerintah Targetkan Biaya Logistik Turun Menjadi 8 Persen dari PDB
Hong Kong Port will continue to play an important role in international trade, supporting economic growth in Asia and regionally. China occupies the first position with a contribution proportion of 30.31% of Indonesia's total imports during January-March 2024 where HK is usually a strategic transit point. Several aspects of the Hong Kong Port have a strategic role in connecting the world such as strategic location, port facilities, regulations, infrastructure and so on.
At this seminar, HMS CEO Ms. Reef implemented how to apply Environmental, Social, and Governance (ESG) principles, particularly in the social sector, by sharing knowledge aimed at fostering a stronger logistics network. This initiative is in line with HMS' mission to contribute to socio-economic development and regional prosperity.
Ms. Chloe Deng, Director, Public Affairs - International Business, Cainiao, is one part of Alibaba's smart logistics explained the material ‘Unlocking the Hidden Potential: Strategic Logistics Partnerships Between Hong Kong and Indonesia’ about the retail industry where there is a trend of decreasing consumption of goods in China, but on the other hand, there is an increase in other imported goods that do not exist in China.
According to Ms. Chloe, the Indonesian market has potential, especially in the cosmetics industry, herbal medicine, Muslim clothing, and other goods in the Chinese market that do not yet exist. Through her company, she hopes to conduct business cooperation with entrepreneurs in Indonesia.
Meanwhile, Ms. Nova Triana, Area Cargo Manager of Cathay Pacific Airways said Hong Kong has a strategic location to become the leading hub of international flight network connectivity. And has the opportunity to expand connectivity for Cathay Pacific airline business.
She said from Indonesia, Cathay Pacific is a specialist cargo project such as serving engine shipments, DG shipments, nuclear, and animals. This project contributes significantly to our business.
Read more: Expanding Network to Export Market, Hyper Mega Shipping Joins Trade Expo Indonesia 2024
Cathay Pacific also has more than 40+ passenger and cargo flights to Indonesia weekly, out of it 30 passenger and cargo flights are to Jakarta, whereas remaining to Surabaya and Bali.
Ms. Nova said Cathay Pacific continues to strive to expand its flight network to new destinations. We see Hong Kong also has potential with more than 4.3 million tonnes of cargo per year, having three runway systems operational by the end of 2024, and 50% of the world's population within 5 hours of flying time from Hong Kong Hub.
Furthermore, Mr. Hillwan Yogi Brahmanda, Head of Investment Promotion, Invest HK explained ‘Hong Kong: Greater China and GBA Opportunities’ where he explained the ease in Hong Kong in terms of taxes compared to other countries, financially, and infrastructure, has sophisticated system because Hong Kong is currently focused on innovation and technology. As an example, he mentioned that there are also Indonesian fintech companies that open branches in Hong Kong because Hong Kong is a very strategic place in business development which is the entrance to China and also the global market.
The development of the Guangdong-Hong Kong-Macao GBA (Greater Bay Area) has become part of China's national strategy. He mentioned that the GBA is one of the areas with the highest economic level in China. There are also many UHNWIs (Ultra High Net Worth Individuals) living there, making this area an area that continues to experience promising business development.
Hopefully, the logistics and business collaboration between Indonesia and Hong Kong will bring an interesting mix of strengths.
Source : World’s busiest passenger and cargo airports in 2023 – a deeper dive | CAPA (centreforaviation.com)
