Jokowi Complains That Indonesia's Logistics Costs Are Expensive, Still Far Behind Malaysia

President of the Republic of Indonesia, Joko Widodo. (Photo: Instagram @erickthohir)

JAKARTA - President Joko Widodo (Jokowi) said the merger of Pelindo I, II, III, and IV would reduce logistics costs in the country. Because, currently, logistics costs in Indonesia are still high, even far behind compared to neighboring countries.

"We know that our country's logistics costs compared to our neighboring countries are still far behind, we are behind. Their logistics costs are only 12 percent or less, we are still 23 percent. This means that there are inefficient in our country," he said at the Inauguration of the Merger of Pelindo and Terminal Multifunction Wae Kelambu, quoted from the Setpres YouTube, Thursday, October 14.

As is known, Indonesia's logistics costs, which are at the level of 23.5 percent, are different from Malaysia, which only reaches 13 percent of the GDP of the local country. Meanwhile, the amount of logistics costs greatly affects the ease of doing business index which has been the concern of potential investors to invest in a country.

Therefore, Jokowi said the construction of various infrastructures carried out by the government was aimed at reducing logistics costs. In this way, Indonesia's competitiveness will increase.

"This means that our competitiveness, our competitiveness will be better," he said.

In addition to inaugurating the Pelindo holding, Jokowi also inaugurated the Wae Kelambu Multipurpose Terminal at Labuan Bajo Port, in East Nusa Tenggara.

The inauguration of the Pelindo merger was strengthened by the issuance of Government Regulation (PP) Number 101 of 2021 concerning the Merger of PT Pelindo I, III, and IV (Persero) into PT Pelabuhan Indonesia II (Persero) which was signed by Jokowi in early October.

In the follow-up, the Ministry of SOEs as a shareholder facilitated the signing of the merger deed by the President Director of Pelindo I Prasetyo, President Director of Pelindo II, Arif Suhartono, President Director of Pelindo III, Boy Robyanto, and Director of Pelindo IV, Prasetyadi.

After signing the deed, the shareholders also held an Extraordinary General Meeting of Shareholders (EGMS) to determine the Board of Commissioners and Directors of the company. Through the EGMS, Erick Thohir appointed the Board of Directors and Commissioners to the names and duties of the four Pelindo subholdings.