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The Significance of Integrated Logistics Services in Reducing Domestic Logistics Costs


Currently, logistics costs in Indonesia are still causing a high cost economy. Yes, our country logistics costs are still quite expensive. The Ministry of State-Owned Enterprises (SOE) data even shows that logistics costs in Indonesia are 11 percent more expensive than the world. It is known that the portion of Indonesia's logistics costs is 24% of the Gross Domestic Product (GDP). This results in our logistics costs being unable to compete with other countries.

Various efforts have been made by the government to reduce logistics costs in the country, starting from the construction of toll roads, airports, train networks, to fix various regulations that are considered obstacles. In order to create reliable connectivity, a strong commitment from logistics service providers is needed to be able to create integrated logistics services so that they can reduce logistics costs in the country. Through the presence of various complete and quality infrastructure facilities, integrated logistics service providers will certainly encourage domestic industrial activities and provide more strategic access to business actors.

Integrated logistics services are expected to be able to create a faster and more efficient flow of goods, thus providing benefits for business actors in reducing transportation costs and saving time.  This is anticipated to help the efficiency of logistics services in the country, from upstream to downstream in the end. This at the same time will also support the government's program in encouraging the acceleration of distribution and industrial growth throughout Indonesia, thereby accelerating the recovery of the national economy.

By: Corporate Communications PT ABM Investama Tbk.