Jakarta: Coordinating Minister for Economic Affairs Darmin Nasution said that expensive logistics costs in Indonesia is one of the government's biggest economic challenges.
“Everybody already knows that transporting containers from Batam to Jakarta is more expensive than that from Singapore to Jakarta,” the former Bank Indonesia (BI) Governor said here on Wednesday, October 2, 2019.
He explained that infrastructure development can help reduce domestic logistics costs. He argued that good infrastructures can support all modes of transporation.
According to him, information on Indonesian logistics sector must be open to all parties. With
open system, the transportation of goods can be easier and cheaper so Indonesia can compete with other countries, such as Singapore.
"If the infrastructure is adequate, people can easily transport goods from one city to another. With transparent logistic information, people will be able to compare prices and available dates between all modes of transportation such as trucks, trains, boats and so on,” he explained.
Darmin admitted that Indonesia has been focusing more on the movement of people. He stated that the country still needs to improve its logistics sector. (Translator: Muhammad Gestinev)
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