Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan has targeted logistics costs in Indonesia to account for 17 percent of the national gross domestic product (GDP) in 2024.
“Hence, our target until 2024 is 17 percent. (However,) I said I want (the logistic costs) to reach 15 percent of the GDP. I challenge all to achieve it,” the minister remarked while opening the Proud of Indonesia Made National Movement (Gernas BB) in South Sulawesi on Thursday.
Pandjaitan noted that the logistics costs in Indonesia currently accounted for up to 26 percent of the GDP, while those of neighboring countries only stood at 13 percent. Consequently, Indonesian products are expensive and less competitive as compared to those of other countries.
The minister revealed that the government was currently conducting a trial of direct shipment from 10 Indonesian ports to export destinations.
Pandjaitan pointed out that the direct shipment will be able to reduce logistics costs by up to 30 percent as compared to those incurred when the shipment of export goods passed through the transit point in Singapore.
“Hence, the shipment of goods will no longer pass through the transit point in Singapore. We must become self-reliant. Thus, it will reduce logistics costs by up to 30 percent,” he stated.
The low logistics costs will make it easy for micro, small, and medium enterprises to export their goods, he pointed out.
Source: Antara News