Transportation Minister: Collaboration vital to improve the logistics sector
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
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12 December 2023
Jakarta - Transportation Minister Budi Karya Sumadi emphasised that collaboration was crucial to improve the logistics sector in Indonesia. Meanwhile, the downstreaming programme that was launched by the government will also strengthen the logistics sector.
“Essentially, we must continue to collaborate,” the Transportation Minister said in his opening remarks at the opening of the 7th national consensus of Indonesia Logistics and Forwarders Association (ILFA) in Jakarta on Monday (11/12/2023).
According to him, the downstreaming programme can support the logistics sector to evenly distribute investments all over Indonesia. “We must devise a solution to improve our competitiveness. Downstreaming must be carried out,” the Transportation Minister said.
For example, he mentioned the construction of Patimban Port in Subang Regency in West Java that will facilitate logistics flow from western and eastern Indonesia. He is also asking Patimban Port to be optimised to improve Indonesia’s competitiveness and benefit the people.
“We have Patimban, so we are dividing logistics flow to the west and to the east. I invite everyone to be active at Patimban. It does not mean Tanjung Priok is bad. There are still many possibilities,” the Transportation Minister said.
Patimban Port is the first supply chain port in Indonesia that is integrated with the industrial estates around the port.
Meanwhile, during his speech, ILFA Central Executive Board Chairperson Yukki Nugrahawan Hanafi said that the demographic bonus was an opportunity and a challenge to realise Golden Indonesia 2045. He emphasised that, to realise Golden Indonesia 2045, one of the keys is downstreaming.
“So, what we must provide is added value in the future of logistics and supply chain in Indonesia, ensuring public welfare. Without public welfare, we will struggle with the demographic bonus, the sustainability system, the healthy food security pattern, and our readiness for the 5.0 digitalisation era,” Yukki said as quoted by Antara.
In accordance with the Transportation Minister, he said that collaboration among the government, state-owned enterprises (SOEs), and private companies was needed to improve the logistics system and the supply chain.
“It means that a broad collaboration is required. Downstreaming does not only concern natural resources, but also food products and marine products that we export. We are also promoting raw materials to feed our industries. The keyword is quality education and healthcare, then Indonesia can be prosperous,” he said.
