Trade Ministry encourages strengthening of logistics system

Trade Ministry encourages strengthening of logistics system

Fishing boats docked at the Port of Muara Baru, North Jakarta, Tuesday (12/3).

Jakarta (ANTARA) - The Government through the Ministry of Trade is seeking to improve the efficiency of the logistics system in Indonesia in an effort to strengthen national competitiveness.

One of the ways in which this is being done is through the regular meeting of the 2019 Research and Communication Forum (FKK), entitled "Logistical Efficiency for Increasing National Competitiveness".

"The theme is in accordance with the President's mandate in implementing the vision of the Government of 2020-2024, namely, Advanced Indonesia, especially in terms of economic transformation," Head of Agency for Study and Trade Development, Kasan, said in a statement received in Jakarta, Thursday.

He expected that the economy and prosperity of the Indonesian people in the future would depend on manufacturing products that have high value-added and modern services and were able to compete with other nations in the global market.

To create manufacturing products that are globally competitive, Kasan noted, support and synergy from various elements in the country are needed, as well as an efficient and competitive national logistic system (sislognas), as the logistics sector plays a vital role in the Indonesian economy with its geographical conditions and area.

According to Kasan, Indonesia has potential in the production and consumption centers. Various regions have roles that become centers of production of raw materials, processing/industry, and consumption.

The sislognas is tasked with connecting the three centers to support economic transformation.

"The national logistics system that runs properly will alter the challenges of geographical conditions, namely integrating Indonesia's land and sea to boost competitiveness when competing with other countries," Kasan remarked.

The government, Kasan continued, has the authority to issue policies that regulate the Sislognas. The effectiveness of the policy can be reflected in the performance of national logistics.

"The logistics sector in Indonesia has been running quite well even though there are still many challenges. For this reason, improving the performance of national logistics becomes the responsibility of all parties, not only the Government but also the businesses in logistics," he stated.

Based on data from Frost and Sullivan in 2019, Indonesia's logistics costs are at around 24 percent of Gross Domestic Product (GDP), the highest compared to other Asian countries, ranging from 8-20 percent of GDP.

In addition, according to the Logistic Performance Index issued by the World Bank every two years, Indonesia ranked 46th out of 160 countries in 2018, an increase compared to 2016 when it ranked 63rd.

Kasan hoped that the 2019 Research and Communication Forum would become one of the ways and initial steps of synergy between institutions in the ministries/institutions (K / L), business actors, and academics in mapping national problems and sharing roles in solving these challenges.

"The policies taken by each ministry and institution can complement and improve the efficiency of the national logistics system," Kasan stated. Related news: Lack of good logistics system blamed for rising meat price

 

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