13 Aug
Government Strategy to Lower Logistics Costs to 8 Percent
Facing various kinds of global economic challenges, Minister of Transportation Budi Karya Sumadi in a national seminar themed 'Improving Logistics Performance in Indonesia' revealed the target of reducing logistics costs.
Read more: Tantangan Bisnis Kargo di 2024, Perang Rusia-Ukraina dan Israel-Palestina
The effort to reduce logistics costs is targeted at the development of logistics performance and encouraging more efficient and competitive economic growth in Indonesia. The target is planned to decrease from 14.29% to 8% of Gross Domestic Product.
"We are targeting to reduce logistics costs from 14.29% to 8% of GDP," Budi said.
The Minister of Transportation also said that the logistics development strategy in 2024-2045 involves several aspects, namely digital transformation of logistics services, reducing transportation costs, optimizing the use of sea tolls, strengthening connectivity, and increasing accessibility between regions.
The government seeks to reduce logistics costs by continuing to develop a comprehensive strategy, this is evidenced by the trend of Indonesia's Logistic Performance Index (LPI) score in general showing positive growth, and even starting to catch up with the Philippines' LPI ranking.
According to Budi, to achieve the golden Indonesia in 2045, transportation logistics efficiency is the number one concern for logistics players, so to achieve this, it is necessary to strengthen the national logistics system, one of which is through reducing logistics costs.
The Minister of Transportation explained that the spirit of logistics efficiency and effectiveness is in line with government policies that regulate strengthening and structuring through the National Logistics Ecosystem (NLE), in accordance with Presidential Instruction No. 5 of 2020 concerning Structuring the National Logistics Ecosystem.
The Ministry of Transportation continues to support the implementation of NLE, including efforts to improve services through Digitalization, especially those related to ship, goods and passenger services.
The results of NLE implementation have contributed to the efficiency of service time and costs, and currently there are 264 ports that have applied Inaportnet, where 46 ports have been integrated with NLE and 6 airports have implemented Integrated Physical Examination Sites (TPFT).
Even so, the Minister of Transportation said that all parties involved are expected to continue to work together and innovate, and adapt to global developments and new challenges and not be careless about the current situation.
Read more: Kinerja Impor Turun 2,6%, Ekspor Indonesia Tumbuh 16,45 Terbesar AS dan China
"It takes a joint commitment between logistics service providers and users, collaboration and synergy between ministries and institutions, central and regional governments, and the private sector to realize the efficiency of the national logistics system," he explained.
The Minister of Transportation also invited all parties to play an active role and make the best contribution in realizing a more advanced and prosperous Indonesia through improving national logistics performance.
