Rr. Ariyani Yakti Widyastuti, Jakarta – Indonesian Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan questioned the World Bank Logistics Performance Index (LPI) 2023 which placed the country in 63rd position from previously 46th in 2018 out of 139 countries across the globe.
Luhut said he would invite the World Bank to elaborate on Indonesia's deficiencies in the logistics sector.
"Don't just say it (Indonesia) suddenly dropped by 17. Tell me. We have to be completely transparent," Luhut said at the Corruption Eradication Commission's (KPK) Building, South Jakarta, on Tuesday, July 18, 2023.
Singapore is ranked highest in the LPI 2023 with a score of 4.3, followed by Finland (4.2), Denmark (4.1), and Germany (4.1). In 2018, Germany ranked first with a score of 4.2, while Singapore was in 7th position with a score of 4.
Among ASEAN countries, Singapore is in the top position, followed by Malaysia in 31st position, Thailand (37th), Philippines (47th), Vietnam (50th), Indonesia (63rd), Cambodia (116th), and Laos (82).
The index uses six parameters: customs, infrastructure, international shipments, logistics competence, timeliness, as well as tracking and tracing.
Luhut assessed that the index will be unfair if it is measured by the number of ports. He thus demanded explanations about the six parameters.
"We will examine it later. We do not shut down criticism," he said. "What is clear is that there are savings from logistics costs in Indonesia due to digitization."
Luhut also argued it is a paradox that Indonesia is among the top 20 countries with the best port performance. However, the government accepted the LPI 2023 and would invite the World Bank to further discuss improvements that need to be made. "I want to ask what we have done wrong, and we will improve it."