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Jakarta Post
The Jakarta Post
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Low hanging fruits can reduce logistics costs

  • Lucky Luqman Nurrahmat
    Lucky Luqman Nurrahmat

    Student at the Master of Public Administration program, John F. Kennedy School of Government at Harvard University

Cambridge, Massachusetts | Mon, February 12, 2018 | 03:05 pm
Low hanging fruits can reduce logistics costs It’s more costly to ship oranges from Sumatra to Kalimantan than importing oranges from China, making local oranges less competitive and leading to higher imports of Chinese fruits. (Shutterstock/File)

PREMIUM Logistics costs in Indonesia are significantly higher than in neighboring countries, amounting to 24 percent of gross domestic product (GDP), higher than that of Singapore (8 percent), Malaysia (13 percent), Thailand (15 percent) and even Vietnam (20.9 percent) and Cambodia (18 percent), according to the Asian Development Bank (2013-2014). These costs affect not only the price of goods, but als...

Disclaimer: The opinions expressed in this article are those of the author and do not reflect the official stance of The Jakarta Post.

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