In order to overcome Indonesia’s deficit trade balance, the Government of Indonesia took the initiative to change the use of Incoterms in export transactions that currently majority use FOB (Free On Board) to CIF (Cost, Insurance and Freight) so that it could enhance the role of the national fleet. The purpose of this study was to compare the use of FOB with CIF and provide recommendations to enhance the role of the national fleet in order to support the implementation of CIF policy for Indonesian CPO exports. Case study on FOB and CIF comparison analysis is CPO export from Selabak Port, South Kalimantan to Port Klang, Malaysia with chemical tanker of 2,952 DWT and total payload of 2,686 ton of CPO. The analysis results presented that the total cost on FOB is lower than CIF because of the freight difference of 7% or 1.94 US$/ton.
Category Bachelor Thesis Title Analysis of Cost Insurance and Freight (CIF) Implementation for Indonesian Export Commodity: A Case Study
Category Bachelor Thesis Title Supply Chain Management of Milk and Its Derivative Products Through Sea Transportation: A Case