The service quality of Indonesia’s logistics service provider in preparation for ASEAN economic community

Abstract

Logistics Service Providers (LSPs) in Indonesia will play an increasingly significant part in the ASEAN Economic Community (AEC). To prepare for the single market place at the end of 2015, Indonesia LSPs need to understand their existing situation and how they can improve their performance. The study follows a prior research on Thai LSPs and thus the same questionnaire was distributed to Indonesia LSPs and users. The SERVQUAL method was utilized to identify the gaps between the LSPs and users. It was found that neither Indonesia LSPs nor Thai LSPs can perform their service to meet with their customers’ expectation over the service delivered. The LSPs must improve their performance to satisfy their customers, which will directly drive product flows and eventually help them gain benefits from AEC.