Indonesia targets 10 percent cut in logistics costs

Jakarta (ANTARA) - Indonesia aims to reduce national logistics costs to 10 percent to improve economic efficiency amid persistent global uncertainty, Coordinating Minister for Economic Affairs Airlangga Hartarto said.

Indonesia’s logistics costs currently stand at about 14 percent, he said at the ANTARA Business Forum 2026 in Jakarta on Wednesday.

“We know logistics costs are around 14 percent. If we target 10 percent, it would improve the national economy by a four-percent delta. This is low-hanging fruit we must pursue,” Hartarto said.

Hartarto said reducing logistics costs is an effective strategy to improve economic efficiency as logistics competitiveness becomes increasingly important amid continued global uncertainty.

The government is also seeking to attract more investment as part of its efforts to strengthen economic growth and efficiency.

Investment growth needs to outpace gross domestic product growth because it creates jobs, saves foreign exchange and boosts exports, Hartarto said.

“Investment creates jobs, saves foreign exchange and increases exports. So this is expected to become a main pillar of the economy,” Hartarto said.

The government also needs to increase the added value of exports, with logistics efficiency helping strengthen the competitiveness of Indonesian products in global markets.

Hartarto said the government is continuing to strengthen connectivity to improve national economic efficiency and bolster Indonesia’s competitiveness in global markets.

“Export value-added must continue to increase. Once again, logistics plays an important role, and globally, four-percent efficiency is highly significant,” Hartarto said.

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Translator: Bayu Saputra, Uyu Liman
Editor: Rahmad Nasution
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