TEMPO.CO, Jakarta - The Coordinating Minister for Maritime Affairs Luhut Panjaitan said that the government is targeting logistics costs cut from 14.1 percent to 7 percent by 2019.
Luhut said that Indonesia’s current logistics costs of 14.1 percent are way higher than that of Japan at 4.9 percent. “If Indonesia’s logistics costs could be cut by half by 2019, it would be great,” he said in Jakarta on October 18.
Read: Government Seeks to Cut Logistic Costs
One of the reasons behind high logistics costs is inefficient transporting. The government is striving to optimize transportation infrastructure and connectivity. The minister said that the government has made a breakthrough by developing sea tolls, among others.
The government provides transportation and logistics costs subsidies to deliver goods via sea toll. As of now, Luhut said that the program has helped reduce price disparity. Indonesian ports have distinct characteristics with various charges.
Luhut explained that he will coordinate with other ministries to reduce logistics costs. “I believe that port charges can be reduced; the impact would be enormous.”
VINDRY FLORENTIN
