Finance Minister Sri Mulyani Indrawati delivers remarks at the INSW discussion, followed online on June 9, 2023. (Photo: Antara) Speaking at a recent conference, Finance Minister Sri Mulyani Indrawati stressed the need for the country to improve its logistics performance index (LPI), including the logistic costs that fail to compete with other ASEAN countries and emerging nations.
Indonesia is a geographically vast and an archipelagic country, the minister said, adding that this would make improving the country’s competitiveness from logistics - especially from a logistics or distribution standpoint - not an easy challenge to address.
The World Bank (WB) has launched LPI - a benchmarking system that scores a country’s trade logistics performance on a 5-point scale. In 2023, Indonesia ranked 61st out of 139 countries across the globe after getting 3 points in LPI score.
Singapore became the highest-scoring ASEAN member state with 4.3 in the 2023 LPI, followed by Malaysia and Thailand. Both the Philippines and Vietnam got 3.3.
Indonesia’s 2023 LPI score is also lower than what the country recorded in 2018. The World Bank reported that Indonesia’s LPI score in 2018 stood at 3.15, placing the country in the 46th place.
Indonesia currently is banking on its national single window - the country’s customs clearance system that integrates information or documents related to export-import - to improve its LPI score. The national single window also integrates information on airports and seaports./.
VNA
