"High logistics costs are a challenge to economic growth," Pelindo Director of Human Resources and General Affairs Ihsanuddin Usman stated on the sidelines of the 47th ASEAN Ports Association (APA) meeting in Kuta, Badung District, Bali, on Tuesday.
He invited port operators in the Southeast Asian region to mobilize resources and share experiences and technological innovations to encourage cost reduction so as to contribute more to the performance of port operators and users of port and terminal services.
Usman remarked that the company has made efforts to cut short the duration of port stay and cargo stay by unifying service and payment systems through digital applications.
Thus, it will improve the efficiency of port operations.
Through improved efficiency, operations at the port can be conducted more quickly and fuel costs can be reduced, so that ship rental costs can be lowered.
According to the World Bank, logistics costs in Indonesia had reached 23.8 percent of the gross domestic product (GDP) in 2018.
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A study by the National Development Planning Agency (Bappenas) showed that the country's logistics costs in 2023 could reach 14.2 percent of the GDP.
Meanwhile, logistics costs for export activities in the year would reach 8.98 percent of the GDP.
According to Usman, Pelindo has also invited port operators in ASEAN to increase cooperation in maritime connectivity and infrastructure to make it more efficient, effective, and sustainable.
The company has called on port operators in the region to stimulate economic growth by strengthening collective cooperation to create a good climate to attract investment.
On that occasion, Pelindo introduced the Bali Maritime Tourism Hub (BMTH) that is expected to become the gateway to the ASEAN maritime industry.
Currently, work on BMTH is being expedited, with the completion targeted in 2024.
"The synergy between tourism and port activities creates opportunities for sustainable growth," he affirmed.
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Translator: Dewa Ketut SW, Sri Haryati
Editor: Yuni Arisandy Sinaga
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