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Home News Joniarto Parung and The efficiency of Fertilizer Distribution
Joniarto Parung and The efficiency of Fertilizer Distribution
Monday, 19 October 2009 09:12
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Every year, fertilizer becomes big issue for farmers because the supply is sometimes very low when s the cultivating season comes. Joniarto Parung, an Ubaya professor argued that the shortage happens due to an improper supply chain.


Joniarto Parung and The efficiency of Fertilizer Distribution
Prof Ir Joniarto Parung PhD


by Nina Susilo

The number of subsidized fertilizer distributor, for example, is limited. Distributer can easily earn profit even without doing anything. The consequence is none care about how to supply fertilizer in more efficient way.

Should the number is not limited; the competition between distributors would be higher. They would think and compete on how to supply fertilizer in more efficient way. Most probably, the fertilizer price would be the same even though the amount of subsidy is lowered. 

According to Joniarti, “The efficiency of supply chain from supplying raw materials to distributor that will bring products to consumers could be measured. The measurement indicator could be multi-dimension, for example from the expenses, consumer satisfaction, producer’s promise to consumer and the relationship between supply chain elements.”

From that measurement, people can explicitly notice some factors that weaken performance and competitiveness. Even though the supply chain is efficient, illegal levy would surely leads to an unfair competition. Illegal levy would also weaken Indonesian companies’ competitiveness compared to foreign companies. 

”I don’t have an accurate data of how many percent the illegal levies burden the total expense. Yet, from the discussion with businessmen, I know it burdens 30% from the total expense. So, if the normal transportation cost is IDR 1 million, businessmen need to pay IDR 1.3 million. They need to pay illegal levy to street officers. If not so, their products would arrive late. Supply chain is not only for supplier, producer and distributor, but also for regulator. Government as regulator should set severe regulation to eliminate illegal levy,” said Joniarto who was born 15 November 1960 in Makassar.

He added that monopoly is somehow contradicted with the effectiveness of each element on particular supply chain. “Each level of supply chain usually consists of several chains. When all chains could work together in effective way, the production cost could be lower and it satisfies consumers,” described Joniarto who is Chelsea FC fan.
The interest of this former National Armed Forces of Indonesia officer began when he noticed that some products, even though they are expensive, still able to attract customers to buy. In fact, it is due to the good service from company to its customers.

Afterwards, in 2005, Joniarto who is operational management lecturer in Ubaya Industrial Engineering Department focused to study supply chain management on Design Manufacture and Engineering Management University of Strathclyde, Glasgow, UK. Ultimately, his “The Measurement of Supply Chain Performance: Theory and Application” thesis about supply chain management brought him to become the 9th Ubaya professor.

In Indonesia, he added, not many companies care about supply chain management. According to Joni, “In general, Indonesian companies just focus to expand their own business. Some companies that already occupy supply chain manager have only measure internal chain such as distributor and manufacture. They haven’t measure the external chain.”

Besides, supply chain management is still difficult to be implemented in Indonesia, because it requires commitment and trust. The implementation is not as easy as turning our hand,” ended Joniarto.

BIODATA

Prof Ir Joniarto Parung PhD:
Place and date of birth: Makassar, 15 November 1960
Wife: Ir Tjatur Agung Setijari MM
Children  : Christabel Annora Paramita Parung,
Christina Albertina Ludwinia Parung

Education:
- State Elementary School 4 Rantepao
- State Junior High School 2 Rantepao
- State Senior High School 1 Rantepao
- Bachelor:  Electrical Power Universitas Hasanuddin 1979-1984
- Master:  Productivity and Management of Technology ITB 1991-1992
- Doctorate: Supply Chain Management Design Manufacture and Engineering Management University of Strathclyde, Glasgow, UK, on  2003-2005

Working Experiences:
1985-1990 National Armed Forces of Indonesia officer
1990-present Full time lecturer at Ubaya Faculty of Engineering
1995-1999 Ubaya Faculty of Engineering Vice Dean III
1999-2003 Ubaya Vice Rector III

Source: Kompas, 19 Oktober 2009
citated from www.ubaya.ac.id