Indonesia aims to sharply cut logistics costs
Jakarta (VNA) – Indonesia aims to further reduce
logistics costs to 8% of gross domestic product (GDP) by 2045, from 14.29%
in 2022, Coordinating Minister on Economic Affairs Airlangga Hartarto said on
February 22.
To increase the efficiency of national logistics, Airlangga
said the Indonesian government will implement regulations including the
establishment of the National Logistics Ecosystem (NLE) to promote
collaboration in information systems between government agencies and companies.
Overall, the NLE had made good progress.
According to the minister, to enhance business efficiency, it is
important to align national logistics management to achieve the target of
reducing logistics costs by 2045 regarding the conditions and dynamics in both
global and domestic markets.
This can be achieved by strengthening NLE and expanding the
digitalisation of logistics activities outside the port, reducing costs through
standardisation of logistics services, enhancing infrastructure and
connectivity based on the restructure of the domestic transportation network,
and developing logistics centres as a collection of leading regional products.
He said that Indonesia is improving the logistics
system while the country is still considering joining the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership (CPTPP) to expand its
market in Central and South America.
Previously, President Joko Widodo also
mentioned the high logistics costs in Indonesia as a decade ago, its logistics
costs accounted for 24% of GDP, compared to 9-12% in other countries.
Indonesia's logistics costs have decreased to 14%, but still higher
than those of other countries./.