In the 2023 Global Competitiveness Index of the International Institute for Management Development (IMD), Indonesia placed 34th, up 10 rankings from the previous year.
The assessment criteria included economic performance, government efficiency, business efficiency, and infrastructure.
"The transportation sector contributes to national logistics costs. Based on data from Statistics Indonesia (BPS), the Coordinating Ministry for Economic Affairs, and the National Development Planning Agency (Bappenas), national logistics costs are currently 14.29 percent of the gross domestic product (GDP)," he informed.
His party is hoping to reduce logistics costs to around 10 percent of the GDP in the next 10 years, and to 8 percent of the GDP by 2045.
To support competitive logistics costs, the ministry is carrying out several efforts such as preparing seaports to meet the provisions of the National Logistics Ecosystem (NLE) set by the Finance Ministry.
The Transportation Ministry has confirmed that 46 ports in Indonesia have fulfilled the requirements to support NLE, Sumadi said.
Further, all 264 ports in Indonesia have implemented Inaportnet, he added.
"This transformation from manual to digital services is expected to bring a positive impact on efficiency and be able to reduce logistics costs," he informed.
He then said that the transportation sector has contributed positively to national economic growth, which has been recorded in the range of 5 percent.
Based on data from BPS, in 2022 and 2023, the transportation sector clocked the highest growth compared to other sectors, namely around 15 percent, which helped boost Indonesia's economic growth.
In the long term, the availability of various transportation infrastructures is expected to bring multiplier effects, such as opening more jobs, creating new economic growth locations, improving logistics networks, providing excellent public services, building civilization, and realizing social justice.
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Translator: Adimas Raditya F P, Resinta Sulistiyandari
Editor: Azis Kurmala
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