TEMPO.CO, Jakarta - The government is certain that the ratio of logistics cost against the gross domestic product (GDP) could shrink to below 15 percent in the next five years.
Vice President Jusuf Kalla (JK) said that the government would strive to lower logistics cost ratio toward GDP from initially above 23 percent in 2014.
"[The government will decrease logistics cost] as low as possible. But now this year, in the next five years it will be certain," JK said during his visit to New Port development project in Tanjung Priok, North Jakarta, on Monday, June 1, 2015.
According to JK, increasing logistics cost in Indonesia was prompted by the rising cost of transportation and increasing business loan interests. Therefore, according to JK, the condition can be improved by building a number of necessary transport infrastructures including ports, railways, airports and roads.
Previously, the Indonesian Logistics and Forwarders Association (ALFI) asserted that the logistics sector will face severe challenges in the 2015 ASEAN Economic Community (AEC) because logistics costs in Indonesia are still very high.