Indonesia continues to face high logistics costs, hindering economic efficiency and regional trade. Experts stress that inefficient port operations, high service fees, and long ship dwell times are driving up transportation expenses, making goods movement more costly across the archipelago.
Key Challenges in Indonesia’s Logistics Sector
- Port inefficiencies – Delays in cargo handling increase operational costs.
- High logistics costs – Currently at 14.29% of GDP, compared to 8-13% in neighboring countries.
- Limited ship cargo optimization – Underutilized vessels contribute to higher per-unit costs.
Government and Industry Solutions
The Indonesian government aims to reduce logistics costs to 8% of GDP, with Pelindo leading efforts in port digitalization and efficiency improvements. Experts call for:
✔ Upgraded port infrastructure to speed up cargo handling.
✔ Ship cargo maximization to lower transportation expenses.
✔ Stronger digital integration for seamless logistics operations.
With strategic reforms, Indonesia can boost trade competitiveness, attract more investment, and create a more efficient supply chain ecosystem.
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