Indonesian President Announces Comprehensive Logistics Reform

National Logistics Strengthening Initiative

Indonesian President Prabowo Subianto is moving forward with a draft Presidential Regulation on National Logistics Strengthening, according to Coordinating Minister for Economic Affairs Airlangga Hartarto. This comprehensive initiative aims to transform Indonesia's logistics system through strategic improvements in infrastructure, technology, and human resources.

Key Strategic Focus Areas

The national logistics strengthening strategy is built around three primary pillars:

1. Infrastructure Connectivity Development: Enhancing physical logistics infrastructure
2. Digitalization and Service Integration: Implementing technology to streamline logistics operations
3. Human Resource Capacity Building: Improving skills and capabilities of logistics professionals

Current Logistics Challenges

The need for reform is underscored by current logistics performance metrics:

• Logistics costs remain high at 14.29% of GDP (2022)
• Indonesia ranks 63rd out of 139 countries in the World Bank's Logistics Performance Index (2023)
• Existing inefficiencies hinder economic competitiveness and growth

Implementation Framework

The regulation is being developed through inter-ministerial coordination, involving multiple government agencies. Airlangga emphasized that the strategy will be implemented through various cross-sectoral programs, ensuring a comprehensive approach to logistics reform. The initiative demonstrates the government's commitment to addressing long-standing logistics challenges and improving overall economic efficiency.