The Indonesian government is working to lower logistics costs from 14.29 percent to 8 percent of the Gross Domestic Product (GDP) in an effort to promote more efficient and competitive economic growth. This announcement was made by the Minister of Transportation during a National Seminar focused on “Improving Logistics Performance in Indonesia: Reflections, Challenges, and Opportunities for the National Logistics System” at a prominent institute in West Java.
The strategy to achieve this reduction for the 2024-2025 period includes several key aspects: digital transformation of logistics services, reducing transportation costs, optimizing the use of sea toll roads, strengthening connectivity, and enhancing accessibility between regions. The Minister highlighted that Indonesia’s Logistic Performance Index (LPI) score has shown positive growth, nearing the ranking of neighboring countries.
Efficiency in transportation logistics remains a top priority for stakeholders, emphasizing the need to strengthen the national logistics system to realize the 2045 Golden Indonesia vision by reducing costs and addressing various challenges. He further explained that the drive for logistics efficiency aligns with the National Logistic Ecosystem (NLE) policies. The NLE has been implemented at several ports and airports, contributing to significant time and cost savings.
Currently, numerous ports are registered with the digital ports information system Inaportnet, with several ports integrated with the NLE and multiple airports implementing Integrated Physical Inspection (TPFT). The Ministry of Transportation is committed to enhancing services through digitalization, particularly in areas related to shipping, goods, and passenger services. However, ongoing innovation and adaptation to global developments and challenges are crucial.
“A joint commitment among logistics service providers and users, along with synergy between ministries, agencies, regional and central governments, and private entities, is essential to achieve an efficient national logistics system,” the Minister concluded.
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