Logistics costs as high as 24%! Indonesian ports will implement a national logistics system

It is reported that expert staff in connectivity, service development and natural resources at the Indonesian Coordinating Ministry for Economic Affairs said that logistics costs in Indonesia are still high .

" First of all, we know that logistics costs in Indonesia are very high compared to other countries," Finance Minister Sri Mulyani said at the virtual launch of the logistics ecosystem on Thursday . " In Indonesia, 24 percent of the national economy is spent on logistics costs . "

This figure is much higher than the logistics costs of ASEAN countries including Malaysia. It is understood that Malaysia's logistics costs only account for 13% of the national economy .

He revealed that the high logistics costs are closely related to the inability of loading and unloading at ports , which leads to high logistics costs and enterprises have to bear high expenses.

In addition, he believes that the high cost is inseparable from the complicated process of applying for a license. Therefore, enterprises must spend a small amount of money and a longer time to complete the license.

He added: “There are many logistics platforms now , which makes it difficult for companies to choose a good platform for connecting systems . ”

Therefore, he encouraged the immediate implementation of the National Logistics System in Indonesian ports , hoping that the integration of NLEs could reduce Indonesia’s expensive logistics costs.

" It will make the work of the seaport easier , and frankly speaking, because our country is on an island , the ocean should be a link, not a separation between us and the outside world , so it is no longer just a means of transportation, but a bridge, " he said.

Earlier, the Jokowi government officially launched Batam or the Batam Logistics System as a pilot for the national logistics system , with Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan aiming to complete the NLE development of eight ports in the country by 2021.

He also said : "If we want to become a great country and want Indonesia to progress and its people to prosper, then we must reduce logistics costs and improve competitiveness. NLE is a solution to reduce logistics costs and can attract more foreign investors . "

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