Antara News·Indonesia·Thursday, October 15, 2026 at 09:01 AM UTC

Indonesia targets logistics costs at 12.5 percent of GDP by 2029

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Bayu Saputra, Tegar Nurfitra

Jakarta (ANTARA) - The Indonesian government has set a target of reducing national logistics costs to 12.5 percent of gross domestic product (GDP) by 2029, down from 14.29 percent in 2022, a minister said.

In a statement received here on Thursday, Coordinating Minister for Economic Affairs Airlangga Hartarto said President Prabowo Subianto had tasked him with coordinating efforts to lower logistics costs and improve economic competitiveness.

The mandate is stipulated in Presidential Regulation No. 41 of 2026 on Strengthening National Logistics, which was enacted on July 16, he added.

Airlangga remarked the government aims to further reduce logistics costs to 8 percent of GDP by 2045, when Indonesia marks its centennial.

The regulation outlines several key strategies to achieve the target, including strengthening connectivity infrastructure, backbone services, and logistics support facilities.

He also highlighted efforts to enhance the capacity and competitiveness of logistics service providers and human resources while expanding the National Logistics Ecosystem (NLE) platform as part of digital reform initiatives.

According to Airlangga, the NLE has helped cut logistics costs by up to 17 percent and shorten service times by as much as 73 percent. He added that the government plans to further expand the digitalization initiative.

The minister then highlighted plans to develop an intermodal transportation system incorporating dry ports, including at the Batang Integrated Industrial Estate (KITB), to reduce truck traffic on major roads, improve distribution efficiency, and bring customs services closer to industrial areas.

On financing, he encouraged freight transport operators to take advantage of the Labor-Intensive Industrial Credit (KIPK) program to renew their fleets, with the aim of improving productivity and service quality.

He also highlighted the importance of human resource development, affirming the government's support for vocational training, competency certification, and other initiatives aimed at helping logistics providers adopt digital technologies.

Airlangga expressed optimism that cross-sector collaboration would help achieve the goal of reducing national logistics costs to 8 percent of GDP by 2045.

"With a more efficient and integrated logistics system, our export products will become more competitive, while goods in the domestic market will become more affordable," he said.

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