Logistics costs can decrease if you build a port that operates entirely automatically compared to conventional ports that cost a lot.
Badung, Bali (ANTARA) - The 47th ASEAN Port Association (APA) meeting in Bali discussed the development of the ASEAN Maritime Single Window to support connectivity and reduce logistics costs in the Southeast Asian region.

"We are targeting to build an ecosystem called the ASEAN Maritime Single Window," chairperson of the 47th APA, Bui Van Quy, said during the meeting with ASEAN port operators here on Tuesday.

The meeting, which is being held from November 14–17, 2023, will discuss efforts to reduce logistics costs incurred by port service users. One way of achieving this is building a single maritime ecosystem.

The ecosystem will prioritize digitalization that provides efficiency and protects the environment by reducing carbon emissions, he explained.

"Digitalization and the ecosystem are directly connected. We can save time and increase efficiency in the supply chain so all will benefit from this modern connectivity and digitalization," he said.

While Van Quy did not provide details of average logistics costs in ASEAN, these costs are closely related to the operational culture of ports in ASEAN countries.

"Logistics costs can decrease if you build a port that operates entirely automatically compared to conventional ports that cost a lot," he said.

Indonesia placed 61st in the Logistics Performance Index (LPI) of the World Bank with a total score of 3.0 in 2023, down from 3.15 in 2018.

Meanwhile, the Ministry of Finance reported that Indonesia's logistics costs reached 23.5 percent of its gross domestic product (GDP).

The figure was higher compared to Malaysia, whose logistics costs account for 13 percent of its GDP.

Meanwhile, director of human resources and general affairs at state-run port operator PT Pelabuhan Indonesia (Pelindo), Ihsanuddin Usman, said that his side has shortened the cargo stay period by integrating service and payment systems with the help of digitalization.

"For instance, what used to take three days now only takes one day at Pelindo ports," he added.

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Translator: Dewa W, Kenzu
Editor: Rahmad Nasution
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