Logistics Costs in Indonesia Drop 40 Percent in Five Years

Jakarta, September 21, 2023 - Logistics costs in Indonesia have fallen by 40 percent in the last five years. Based on calculations by the National Development Planning Agency (Bappenas), logistics costs in Indonesia in 2023 will reach 14.29 percent and logistics costs for export activities will even be 8.98 percent of Gross Domestic Product (GDP). Meanwhile in 2018, the World Bank noted, logistics costs in Indonesia were still 23.8 percent.  

"Logistics costs are calculated based on the realization of the Indonesian economy until 2022," said Taufik Hanafi, Secretary of the Ministry of PPN / Principal Secretary of Bappenas at the "New Era of Logistics Costs for Golden Indonesia 2045 event at Raffles Hotel Jakarta, Thursday (14/9). The logistics cost calculation is the result of collaboration between Bappenas, the Ministry of Economic Affairs, the Central Statistics Agency (BPS), universities, and business players.  

Minister of National Development Planning/Head of Bappenas Suharso Monoarfa explained that investment trends in Indonesia in the last four years have continued to increase and always exceeded the target. In 2019, with a target of Rp792 trillion, investment realization reached Rp809 trillion. In 2022, investment realization reached Rp1,207 trillion, above the target of Rp1,200 trillion.