Minister Of Transportation Budi Karya: Government Targets Logistics Costs To Drop To 8 Percent From GDP

Minister of Transportation Budi Karya Sumadi. (Photo: Doc. ANTARA)

Minister of Transportation (Menhub) Budi Karya Sumadi said the government targets to reduce logistics costs from 14.29 percent to 8 percent of gross domestic product (GDP) to encourage more efficient and competitive economic growth.

Initially, Budi said, logistics development strategies in 2024 to 2045 involved several aspects, namely digital transformation of logistics services, reduction of transportation costs, optimization of sea toll utilization, strengthening connectivity, and increasing accessibility between regions.

"This effort aims to reduce logistics costs from 14.29 percent to 8 percent of GDP," he said in an official statement, Friday, July 26.

Budi said the Indonesian government continues to strive to reduce national logistics costs through the development of a comprehensive strategy. The trend of the Indonesian Logistic Performance Index (LPI) score in general also shows positive growth, even starting to follow the ranking of the Philippine LPI.

"The efficiency of transportation logistics has always been the number one concern for logistics actors. Therefore, it is necessary to strengthen the national logistics system to achieve Indonesia Gold 2045, through reducing logistics costs and to overcome the various challenges that have occurred recently," he said.

According to Budi, the spirit of efficiency and effectiveness of logistics is in line with the Government's policy of regulating strengthening and structuring through the National Logistic Ecosystem (NLE), according to Presidential Instruction No. 5 of 2020 concerning the Arrangement of the National Logistics Ecosystem.

"NLE implemented in several ports and airports contributes to the efficiency of service time and costs," he explained.

Currently, he continued, there are 264 ports that have applied Inaportnet, of which 46 ports have been integrated with NLE and 6 airports have implemented Integrated Physical Inspection Sites (TPFT).

"To support the implementation of NLE, the Ministry of Transportation continues to encourage efforts to improve services through digitization, especially those related to ship services, goods and passengers," he said.

However, continued the Minister of Transportation, all interested parties must not be careless with the current situation.

All parties must continue to innovate and adapt to global developments and new challenges, then they also need to work together in the spirit of 'Indonesia Incorporated'.

"A joint commitment is needed between providers and users of logistics services, collaboration and synergy between ministries and institutions, the central and local governments, and the private sector to realize the efficiency of the national logistics system," he said.

"I invite all parties to play an active role and make the best contribution in realizing a more advanced and prosperous Indonesia through improving national logistics performance," he continued.