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Association defends RI after drop in World Bank logistics ranking
The Indonesian Logistics and Forwarders Association (ILFA) says the World Bank's 2023 Logistics Performance Index does not adequately describe the overall state of logistics in the Indonesia, and the government notes massive investment in the sector.
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Distribution: Containers, cranes and ships are seen at Jakarta Port in this undated photograph. (Shutterstock/Creativa Images)
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usiness representatives and the government insist that logistics in Indonesia are improving, notwithstanding a comparative ranking that has the country falling back 15 places.
Indonesian Logistics and Forwarders Association (ILFA) chairman Yukki Nugrahawan Hanafi said the recently released World Bank’s Logistics Performance Index (LPI) 2023 was “not comprehensive” in describing the domestic industry.
The report was “about perceptions,” Yukki emphasized, adding: “What the World Bank measures is confined to one or two commodities and the [selection of assessed] ports is also limited,” Yukki told The Jakarta Post on Thursday.
He claimed there was a disparity between the measured data, macroeconomic conditions and the unique challenges posed by the archipelagic nature of our country.
“If we look at the work done by stakeholders like the government, businesses and associations, [we believe] our score could be so much better,” he continued, while pointing out that the association had not been consulted by the World Bank for this year’s report despite regular invitations in the past.
Read also: International economic engagement can support Indonesia’s industrial upgrade
According to the World Bank’s website, the LPI serves as a benchmarking tool to help countries identify challenges and opportunities in trade logistics, and what they can do to improve their performance.
