Indonesia aims to cut logistics costs to 12.5 per cent of GDP by 2029
A presidential regulation sets out infrastructure, digitalisation and workforce measures, with a further cost target of 8 per cent of GDP by 2045.
Indonesia has set a 2029 target for national logistics costs equivalent to 12.5 per cent of GDP, Coordinating Minister for Economic Affairs Airlangga Hartarto said. The costs stood at 14.29 per cent in 2022.
President Prabowo Subianto assigned Airlangga responsibility for coordinating the effort to bring costs down and improve economic competitiveness. Airlangga said the mandate comes under Presidential Regulation No. 41 of 2026 on Strengthening National Logistics, enacted on July 16. The government’s longer-term target is to reach 8 per cent of GDP in 2045, when Indonesia celebrates its centennial.
The measures cover better infrastructure connectivity, stronger backbone services and improved facilities supporting logistics. They also seek to build the capabilities of service providers and workers, alongside an expansion of the National Logistics Ecosystem (NLE) platform.
Airlangga credited the NLE with logistics cost reductions of up to 17 per cent and service-time reductions reaching 73 per cent. He said further expansion of the digitalisation initiative was planned.
Plans for intermodal transport include dry ports, with one envisaged at the Batang Integrated Industrial Estate (KITB). The minister said these links were intended to ease traffic from trucks on major roads, improve distribution and position customs services closer to industrial areas.
For fleet renewal, Airlangga urged freight operators to consider financing through the Labor-Intensive Industrial Credit (KIPK) programme. He also confirmed government backing for vocational training, competency certification and initiatives to assist logistics providers in adopting digital technology.
