Government Pushes Optimization of National Logistics Ecosystem Through Digitalization and International Collaboration

Jakarta, INTI - Connectivity and transportation systems play a crucial role in Indonesia's economic growth, given the country consists of thousands of islands connected by seas. Recognizing this importance, the Indonesian government continues to push for a more optimal national logistics ecosystem. The Presidential Instruction on National Logistics Ecosystem (NLE) Regulation has been issued to eliminate duplication and barriers through digitalization and the ease of single submission services.

Not only in terms of infrastructure, but the government is also striving to prepare competent human resources to optimize the role of the national logistics ecosystem for the economy, one of which is through cooperation with Singapore.

“The close relationship between Indonesia and Singapore is evident in developing human resources and logistics regulations. We will create several programs for human resource development. So, I believe this forum is very important to start our collaboration in the field of logistics human resources and digitalization. In my opinion, digitalization in Singapore is already well-implemented, including in the logistics sector. This forum can be a discussion forum to make Indonesia's logistics more advanced through digitalization,” said Deputy for Trade and Industry at the Coordinating Ministry for Economic Affairs, Ali Murtopo Simbolon, when opening The Workshop of Envisioning ASEAN Logistics Connectivity: Indonesia held at Graha Sawala, the Coordinating Ministry for Economic Affairs, on Monday (15/07). The event was also inaugurated by the Indonesian Ambassador to Singapore, Suryo Pratomo, and the Singaporean Ambassador to Indonesia, Kwok Fook Seng.

The Coordinating Ministry for Economic Affairs, in collaboration with The Logistics Institute – Asia Pacific, National University of Singapore (TLIAP-NUS), organized the workshop program, which is funded by the Global Supply Chain Leadership Alliance. This program aims to benefit the reduction of national logistics costs and, more broadly, contribute to the reduction of logistics costs in ASEAN.

The workshop also held two panel discussion sessions on the topics of “Indonesia Supply Chain Thought Leadership,” moderated by Assistant Deputy for National Logistics Development at the Coordinating Ministry for Economic Affairs, Atong Soekirman, and “Technology and Connectivity,” moderated by Director of Symphony and Co-Founder of the Global Supply Chain Leadership Alliance, Dan Boon. Also present at the forum was Senior Vice Provost, Chairman of the Advisory Board, The Logistics Institute – Asia Pacific, National University of Singapore, Professor Bernard C Y Tan.

The ongoing efforts to improve the national logistics system have also shown significant positive impacts. In August 2023, NLE achieved a national dwelling time of 2.52 days, surpassing the target of 2.9 days, and outperformed other ASEAN countries.

“We want to develop end-to-end digitalization in Indonesia's logistics system. Additionally, other infrastructures such as dry ports have already been implemented in Indonesia,” concluded Deputy Ali.

It should be noted that as part of the efforts to improve the national logistics ecosystem, the government has also taken steps to reduce logistics costs. In September 2023, Coordinating Minister for Economic Affairs Airlangga Hartarto, together with the Minister of National Development Planning/Head of Bappenas and Acting Head of Statistics Indonesia (BPS), officially launched the National Logistics Costs using data from the Input-Output Table owned by BPS. The national logistics cost in 2023 was 14.29% of GDP, making Indonesia one of the most competitive countries in ASEAN in terms of logistics. Over the next 10 years, this cost is expected to be reduced to around 10% of GDP, and targeted to drop to around 8% of GDP by 2045.

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