he Minister of Transportation highlighted the critical need for technology investment to enhance the efficiency of the logistics sector, essential for a sustainable future supply chain. “The key focus is on achieving greater efficiency and unification,” the minister remarked during the opening of the Asia-Pacific Logistics and Forwarder Conference in Nusa Dua, Bali.
Big Data and Artificial Intelligence (AI) are pivotal in driving technological innovations that improve the logistics sector’s efficiency. In addition to efficiency, the minister urged logistics and forwarder businesses to expand their networks both domestically and internationally. Echoing the minister’s views, a prominent industry leader emphasized that boosting logistics efficiency is essential for greater economic contributions.
Sustainability is also vital to support the transition to environmentally friendly energy. “We must strive for efficiency to achieve future growth exceeding the current five percent. Effective logistics are essential for economic expansion,” he asserted. In 2023, the logistics sector contributed 5.5 percent to the national GDP, with an annual growth rate of seven percent. This growth is driven by increased trade volumes, infrastructure expansion, and the adoption of new technologies in supply chain management.
Another key figure in the logistics industry emphasized the need for investment in green technology and logistics solutions. He pointed out that technology like AI and Big Data in supply chain management can improve operational cost efficiency by up to 20 percent and reduce carbon emissions by up to 15 percent. The global freight and logistics market is projected to grow by US$18.69 billion by 2026, with an annual growth rate of 4.4 percent. In the Asia Pacific, the logistics and forwarder market is expected to reach US$3.55 trillion in 2024 and US$4.56 trillion in 2029.
Logistics transportation includes services by companies transporting goods and commodities by land, sea, and air, encompassing warehousing, transportation, shipping, and packaging operations.
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