Indonesia’s logistic sector lags behind other ASEAN countries

Indonesia needs to work harder to improve its logistic sector because its performance lags behind those of other ASEAN countries such as Singapore, Thailand and Malaysia, Finance Minister Sri Mulyani said on Wednesday.

“On the Logistics Performance Index (LPI), according to the World Bank, Indonesia stood at 63^rd place of the 160 countries surveyed,” the minister said in her opening speech during the Jakarta International Logistics Summit and Expo in Jakarta.

Singapore topped the list of ASEAN countries, ranking fifth globally, while Malaysia ranked 32^nd and Thailand 45^th, she added.

The LPI is a benchmarking tool created to help countries recognize challenges and opportunities they face in their performance on trade logistics and improve it.

She said there were aspects affecting the competitiveness of logistics in Indonesia, namely a lack of infrastructure and complex customs and excise procedures.

“To realize this, the government has utilized the state budget and funds from the private sector to develop infrastructure across Indonesia,” she said.

Besides improving infrastructure, another important measure is to fix the quality of regulations and simplify bureaucracy, she said.