Downgrading Since 2023, Logistics Performance Index Indonesia To 63 From 139 Countries

Illustration (Photo: Doc Antara)

JAKARTA - Indonesia as an archipelagic country with more than 17,000 islands, faces unique logistical challenges that affect economic growth and development.

Chairman of the Center for Logistics and Regional Development Studies (SAT-Logwil) Yeremias Ndoen said that various efforts had been made by the government, however, Indonesia's logistical conditions had not experienced a significant increase.

"The Indonesian Logistics Performance Index (LPI) has dropped from ranked 46 of 2018 to ranked 63 out of 139 in 2023," said Yeremias in his statement, Friday, July 26.

He also said that Indonesia still has various problems and potential improvements to the logistics system.

"Since the issuance of Presidential Decree No. 26 of 2012 concerning Blue Prints for Sislognas Development to date, where there have been various changes in the situation and global supply chain trend, especially related to the ASEAN single market, which has the potential to pose new challenges and risks to the national logistics system," he said.

Despite the various methodological shortages and LPI calculation data, Indonesia's ranking position, which did not increase significantly, shows that there are still various problems and potential improvements for the logistics system in Indonesia.

"This potential improvement can arise from the regulatory, institutional, infrastructure development, operational strategies, financing, to human resource development in the logistics sector," Yeremia said in a discussion at ITB Bandung.

"The most important thing is, the national logistics system in terms of regulations, institutions, infrastructure development, operational strategies, financing, to human resource development," he said.

Meanwhile, Minister of Transportation Budi Karya Sumadi said the state had made efforts to improve Indonesia's logistics index which currently has a total score of 3.0 or is ranked 61, namely continuing to boost the creation of a national logistics ecosystem (NLE) by simplifying the service business process, collaborating platforms between logistic service providers, and ease of payment (single billing).