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Indonesia falls behind other ASEAN countries in logistics

Indonesia’s trade logistics performance is still lagging behind other members of the Association of Southeast Asian Nations (ASEAN), and the government is blaming the country’s geographical traits for its underwhelming performance.
Indonesia falls behind other ASEAN countries in logistics ảnh 1 Finance Minister Sri Mulyani Indrawati delivers remarks at the INSW discussion, followed online on June 9, 2023. (Photo: Antara)
Jakarta (VNA) - Indonesia’s trade logisticsperformance is still lagging behind other members of the Association ofSoutheast Asian Nations (ASEAN), and the government is blaming the country’sgeographical traits for its underwhelming performance.

Speaking at a recent conference, Finance Minister SriMulyani  Indrawati stressed the need for the country to improve its logistics performanceindex (LPI), including the logistic costs that fail to compete with other ASEANcountries and emerging nations.

Indonesia is a geographically vast and an archipelagiccountry, 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 challengeto address.

The World Bank (WB) has launched LPI - a benchmarkingsystem that scores a country’s trade logistics performance on a 5-point scale. In2023, Indonesia ranked 61st out of 139 countries across the globe after getting 3 points in LPI score.

Singapore became the highest-scoring ASEAN memberstate with 4.3 in the 2023 LPI, followed by Malaysia and Thailand. Both thePhilippines and Vietnam got 3.3.

Indonesia’s 2023 LPI score is also lower than what thecountry recorded in 2018. The World Bank reported that Indonesia’s LPI score in2018 stood at 3.15, placing the country in the 46th place.

Indonesia currently is banking on its national singlewindow - the country’s customs clearance system that integrates information ordocuments related to export-import - to improve its LPI score. The nationalsingle window also integrates information on airports and seaports./.
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