"We agree that after this works, we will immediately attempt to include eight ports in Indonesia in the system," Pandjaitan remarked at the launch of the Batam Logistic Ecosystem (BLE) also broadcast online on Thursday.
The eight seaports comprise Tanjung Priok in Jakarta, Patimban in West Java, Tanjung Emas in Central Java, Tanjung Perak in East Java, Makassar in South Sulawesi, and Belawan Medan in North Sumatra.
"There are eight points. That is what we want this year. We must be able to do it. Who is preventing us, just bulldoze him," he affirmed.
The government has developed the integrated logistics ecosystem to streamline the logistics system, so that it can compete globally.
The minister remarked that logistics costs in Indonesia had reached 23.5 percent of the gross domestic product (GDP). Meanwhile, in Malaysia, the logistics are costing its economy only some 13 percent of the GDP.
Pandjaitan noted that with a difference of some 10 percent, investors will reconsider entering and investing in Indonesia. To this end, the government is making unwavering efforts to reduce the logistics costs.
"How come the difference is almost 10 percent? That is a cost. You can imagine. In a trade, a 10-percent difference is a lot, so why should they come to Indonesia for investment? It is as simple as that," the minister pointed out.
BLE is part of the NLE that functions to tidy up and simplify business processes through integrated inspection services with single submissions, port services, and permits.
Through the NLE, the government is aiming to lower the logistics costs to 17 percent of the GDP by 2024. Related news: NLE implementation projected to slash logistics costs to 17 percent
Related news: Logistic cost in Indonesia most expensive
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Translator: Ade Irma J, Fardah
Editor: Suharto
Copyright © ANTARA 2021
