Indonesia seeks revamp of urban logistics system

Indonesia seeks revamp of urban logistics system

Minister of Transportation Budi Karya Sumadi. (The Ministry of Transportation)

I invite all related stakeholders to collaborate together to create a better urban logistics system in the future.
Jakarta (ANTARA) - The Ministry of Transportation has called for an improvement in the urban logistics system to bring down logistics costs in Indonesia.

"It is necessary to establish an urban logistics system that is more adaptive to technological developments and more environmentally friendly," Transportation Minister Budi Karya Sumadi said at a webinar on 'Building Sustainable Urban Logistics in Jabodetabek' here on Tuesday.

There are several problems related to the logistics system in Indonesia, he noted.

In 2020, logistics costs in Indonesia were the highest in the ASEAN region, reaching 23.5 percent of the gross domestic product (GDP), he pointed out.

Additionally, 8.5 percent of the figure came from the land transportation sector, he said.

The growth in logistics services and freight vehicles in urban areas has worsened road conditions and created traffic congestion, he added.

It has also contributed to the damage to urban environments, Sumadi said.

Another problem, he pointed out, is the convenience and benefits offered through e-commerce that have disrupted the quality of life in urban areas as urban logistics activities have led to crowding issues.

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High mobility of vehicles on urban roads, starting from motor vehicles to freight trucks, has led to traffic jams and also violations related to the freight vehicles sizes, he said.

The damage to urban environments because of freight vehicles is real, Sumadi stressed.

Noise pollution in urban areas is also one of the effects of freight transportation, and it deserves attention, he affirmed.

According to a study by ALICE (Alliance for Logistics Innovation through Collaboration in Europe), freight vehicles in urban areas account for 25 percent of CO2 emissions and 30-50 percent of NOx (nitrogen oxide) emissions, based on some factors, Sumadi noted.

"I invite all related stakeholders to collaborate together to create a better urban logistics system in the future," the minister added.

Sumadi also urges his team to be more agile in determining policies and invited all stakeholders to offer positive recommendations to improve logistics connectivity and restore the economy while protecting the environment. 

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