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Government aims to cut logistics costs to 8% by 2045
The Jokowi administration aims to further reduce logistics costs to 8 percent of GDP, after lowering it from 24 percent to 14 percent over the past decade.
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Balancing act: A container is unloaded from a ship by crane on Jan. 6, 2024, at Belawan Port in Medan, North Sumatra. The President Joko "Jokowi" Widodo administration aims to further reduce logistics costs to 8 percent of GDP, after lowering it from 24 percent to 14 over the past decade. (Antara/Yudi)
T
he government aims to reduce national logistics costs to 8 percent of gross domestic product (GDP) by 2045, by from 14.29 percent in 2022, Coordinating Economic Minister Airlangga Hartarto said on Thursday.
"In 2023, the National Development Planning Minister and the head of Statistics Indonesia announced that national logistics costs were 14.29 percent in 2022," Airlangga said on Thursday, as cited by cnbcindonesia.com.
“In the next 10 years, we'll try to get the number close to single digits, and our target is 8 percent by 2045."
To increase the efficiency of national logistics, Airlangga said the government would implement regulations including the National Logistics Ecosystem (NLE), which was established under Presidential Instruction No. 5/2020.
The NLE aims to promote collaboration in information systems between government agencies and companies. Overall, the NLE had made good progress up to Dec. 31, 2023.
"According to Presidential Regulation No. 5/2020, one of the Trade Ministry's tasks is to integrate inter-island trade reports via the Indonesia National Single Window (INSW)," said Airlangga.
"Currently, the Trade Ministry is also revising Trade Ministerial Regulation No. 92/2020 to accommodate business improvements, with the hope of improving efficiency as well."
