"The most important aspect is how we are more efficient, more unified," the minister stated on the sidelines of the opening of the Asia-Pacific Logistics and Forwarder Conference in Nusa Dua, Badung District, Bali, Thursday.
Big Data and Artificial Intelligence (AI) are two of the driving forces behind an array of technological innovations that contribute to the efficiency of the logistics sector.
Apart from the efficiency aspect, he also encouraged logistics and forwarder businesses to improve their networks not only domestically but also abroad.
Seconding the minister's stance, Chairman of the Chamber of Commerce and Industry, Arsjad Rasjid, stated on the same occasion that the logistics sector is expected to boost efficiency to encourage higher contributions to the economy.
Moreover, sustainability is important to support the energy transition toward becoming environmentally friendly.
"In the future, we must be efficient, and in the future, we will grow more than the current five percent, and one of the keys is logistics. Without good and efficient logistics, the economy cannot grow," he stressed.
In 2023, Indonesia's logistics sector will contribute 5.5 percent to the national gross domestic product (GDP), with annual growth of seven percent.
The growth was driven by an increase in trade volumes, infrastructure expansion, and the adoption of new technologies in supply chain management.
Chairman of the Indonesian Logistics and Forwarders Association (ALFI) Akbar Djohan underscored the dire need for investment in green technology and logistics solutions.
He highlighted that the use of technology, such as AI and Big Data, in supply chain management had been shown to improve operational cost efficiency by up to 20 percent and reduce carbon emissions by up to 15 percent.
The global freight and logistics market is estimated to grow by US$18.69 billion in 2026, with an average annual growth rate of 4.4 percent.
In the Asia Pacific, Mordor Intelligence stated that the value of the logistics and forwarder market will reach US$3.55 trillion in 2024 and is estimated to reach US$4.56 trillion in 2029.
Logistics transportation encompasses the sale of services by companies that transport goods and commodities by land, sea, and air and includes warehousing, transportation, shipping, and packaging operators.
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Translator: Dewa Ketut Sudiarta Wiguna, Cindy Frishanti Octavi
Editor: Azis Kurmala
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