Antara, Jakarta – The Indonesian government is aiming to reduce logistics costs from 14.29 percent to 8 percent of the Gross Domestic Product (GDP) to encourage more efficient and competitive economic growth.

The statement was conveyed by Minister of Transportation Budi Karya Sumadi in a One-Day National Seminar themed 'Improving Logistics Performance in Indonesia: Reflections, Challenges, and Opportunities for the National Logistics System' at the Bandung Institute of Technology (ITB), Bandung, West Java, Thursday, July 25, 2024.

To reduce the cost, the logistics development strategy for the 2024-2025 period involves several aspects, namely digital transformation of logistics services, reducing transportation costs, optimizing the use of sea toll roads, strengthening connectivity, and boosting accessibility between regions.

Budi Karya said Indonesia's Logistic Performance Index (LPI) score shows positive growth, catching up with the Philippines' LPI ranking.

According to Budi Karya, transportation logistics efficiency has always been the leading concern for logistics actors. Hence, he believed it's necessary to strengthen the national logistics system to achieve the 2045 Golden Indonesia vision by reducing logistics costs and overcoming various challenges.

The Minister of Transportation explained that the spirit of logistics efficiency is in line with the National Logistic Ecosystem (NLE) policies. "The NLE implemented in several ports and airports contributes to the efficiency of time and costs," explained Budi Karya.

Budi Karya said that currently, 264 ports are registered to the digital ports information system Inaportnet, where 46 ports have been integrated with NLE and 6 airports have implemented Integrated Physical Inspection (TPFT).

"To support the implementation of NLE, the Ministry of Transportation continues to boost the efforts to improve services through digitalization, especially those related to ship, goods, and passenger services," said Budi Karya.

Even so, all stakeholders must continue to innovate and adapt to global developments and new challenges.

"A joint commitment between providers and users of logistics services, as well as synergy between the ministries and agencies, regional and central governments, and private entity, is necessary to achieve an efficient national logistics system," he concluded.

Source: https://en.tempo.co/read/1896074/indonesian-govt-aims-to-reduce-logistics-costs-to-8-of-gd