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Indonesia to cut logistics costs to boost export competitiveness

Source: Xinhua| 2025-07-03 16:28:45|Editor: huaxia

JAKARTA, July 3 (Xinhua) -- The Indonesian government plans to simplify bureaucracy and regulations to reduce logistics costs and enhance competitiveness of its products in international markets, Coordinating Minister for Economic Affairs Airlangga Hartarto has said.

The minister underscored the government's commitment to boost exports, which have consistently contributed to the country's trade surplus in recent years. A key strategy was to bring down logistics costs to improve overall economic efficiency, he said.

"We are pushing for a reduction in our logistics costs. Currently, it stands at about 14.5 percent. We hope to bring it down to 12.5 percent, and eventually to 8 percent," Airlangga told a press conference.

He noted that most ASEAN countries already enjoy single-digit logistics costs, emphasizing that Indonesia must follow suit to remain competitive.

To achieve this, the government will begin implementing deregulation measures starting in November. The initiative aimed to simplify rules and eliminate policies that hinder efficiency, the minister said.

Airlangga added that the government would identify products with particularly high logistics costs and prioritize efforts to reduce them.

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