Support Sustainable Supply Chain, Minister Of Transportation Emphasizes Logistics Efficiency Through Technology

Minister of Transportation Budi Karya Sumadi (Photo: between)

JAKARTA - Minister of Transportation (Menhub) Budi Karya Sumadi emphasized the efficiency of the logistics sector through technology investment. This is to support the future of a sustainable supply chain.

"The most important thing is how we are more efficient, more compact," said the Minister of Transportation quoting Antara.

The use of technology includes big data to artificial intelligence which contributes to the efficiency of the logistics sector.

In addition to efficiency, he also encourages logistics and forwarder business actors to improve networks not only domestically but also abroad.

In line with the Minister of Transportation, Chairman of the Chamber of Commerce and Industry Arsjad Rasjid on the same occasion revealed that the logistics sector is expected to increase efficiency to encourage higher economic contributions.

In addition, sustainability is also an important thing to support the energy transition to be environmentally friendly.

"In the future we have to be efficient and later will grow more than what is currently five percent, one of the keys is logistics. Without good and efficient logistics, the economy cannot go up," he said.

Indonesia's logistics sector in 2023 contributed 5.5 percent to the national Gross Domestic Product (GDP) with annual growth reaching seven percent.

The growth was driven by increased trading volume, infrastructure expansion and adoption of new technologies in supply chain management.

Chairman of the Indonesian Logistics and Forwarder Association (ALFI) Akbar Djohan explained that investment in green technology and logistics solutions are urgent needs.

There is also the use of technology such as artificial intelligence (AI) and big data in supply chain management, he said, showing operational cost efficiency of up to 20 percent and carbon emissions of up to 15 percent.

The global transport and logistics market is estimated to grow by 18.69 billion US dollars in 2026 with an average annual growth rate of 4.4 percent.

In Asia Pacific, Mordor Intelligence said the size of the logistics and forwarder market value reached US$3.55 trillion in 2024 and is estimated at US$4.56 trillion in 2029.

The logistics transportation includes sales of services by companies that transport goods and commodities by land, sea, and air and includes warehousing operators, transportation, shipping, and packaging.