The Golden Indonesia 2045 vision: The igniting power of logistics cost
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Bisnis Indonesia - Visi Indonesia Emas 2045: Daya pantik ongkos logistik
15 September 2023
By: Hendra Wibawa
Jakarta - The government is targeting to significantly lower national logistics costs to 8%-9% of the gross domestic product (GDP) in 2045 in accordance with the Golden Indonesia vision.
National Development Planning Minister/National Development Planning Agency (Bappenas) Head Suharso Manoarfa said that several strategies have been prepared to achieve the target, including strengthening the national logistics system.
“The target in 2045 is to lower logistics costs to 9% of the GDP,” he said at the New Era of Logistics Costs for Golden Indonesia 2045 event that was held on Thursday (14/9).
In accordance with the government’s calculation, he explained that national logistics costs in 2022 reached 14.1% of the GDP. However, the costs did not include exports that reached 8.89% of the GDP.
He stated that there was no common definition regarding logistics costs all over the world. However, Suharso stated that the largest components that determine logistics costs were transportation, inventory, warehousing, and logistics administration.
He continued that the target to lower logistics costs to 8%-9% of the GDP in 2045 was crucial to change Indonesia’s status to a high-income country.
“We know that, to the national economy, national logistics costs are crucial,” he stated.
Suharso also mentioned that there was a new model to calculate logistics costs, which consists of transportation costs, inventory costs, and administrative costs.
In the future, he emphasised that the government would issue an annual logistics cost calculation that involves the Coordinating Ministry for Economic Affairs, Bappenas, BPS, and logistics service providers.
According to him, strengthening Indonesia’s logistics system is crucial to realise domestic economy integration and global connectivity.
Coordinating Minister for Economic Affairs Airlangga Hartarto stated that the Golden Indonesia 2045 vision set to change Indonesia’s status to a high-income country.
For that purpose, he stated that Indonesia was targeting to be a part of the Organisation for Economic Cooperation and Development (OECD), which will allow Indonesia to be a high-income country.
Until now, he stated only two Asian countries have been members of the OECD, namely Japan and South Korea out of 38 countries. Indonesia’s wish to be a part of the OECD has received positive responses from several countries, such as South Korea, Japan, Australia, Canada, New Zealand, Turkey, Germany, and France.
“Why is it important for us to join the OECD? Because the standards set are high, so investments can come and we can compete. One of our weaknesses is logistics costs,” Airlangga said.
Meanwhile, PT Pelabuhan Indonesia (Pelindo) President Director Arif Suhartono stated that there were three strategic steps of Pelindo that are oriented towards improving logistics performance.
First, port service transformation. Second, shipping network efficiency. Third, port integration with industrial estates.
By integrating ports with industrial estates, he affirmed that port performance would improve, connectivity and network efficiency would be boosted, and logistics costs would be reduced.
Until now, service transformation has been significantly benefiting Pelindo as their operating costs are more efficient, their ship traffic has increased, and their competence and knowledge have improved.
“The maritime ecosystem contributes to the decrease in logistics costs and supports connectivity,” Arif said.
