Initial Milestone in Cutting Logistics Costs at Ports

Infrastructure improvements continue to leverage national and regional economic growth. Not only port infrastructure but airports in remote areas are also being built.

KOMPAS/PANDU WIYOGA

A container is unloaded from a transport ship at Batu Ampar Cargo Port, Batam City, Riau Islands, Wednesday (11/3/2020). The project to increase port capacity is estimated to cost up to Rp 1.5 trillion.

BATAM, KOMPAS — Efforts to cut logistics costs at ports by using an integrated digital system are officially implemented in the Batam Logistic Ecosystem (BLE). The system at Batu Ampar Port, Batam, Riau Islands, will be adopted in other ports. These efforts are targeted to be able to increase competitiveness, attract investment and promote economic growth.

Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan, at the inauguration of BLE in Batam, Thursday (18/3/2021), said logistics costs in Indonesia reached 23.5 percent of total gross domestic product (GDP). This value is much higher than the cost of logistics in other Southeast Asian countries, for example Malaysia, which is only 13 percent of total GDP. As a result, Indonesia is less attractive to investors.