Government Targets National Logistics Costs to Drop to 12 Per Cent by 2029
The government is targeting a reduction in national logistics costs to reach 12.5 per cent of Gross Domestic Product (GDP) by 2029. Currently, national logistics costs are known to be at a level of around 14 per cent of GDP.
The Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), explained that under the leadership of President Prabowo Subianto, these efforts are being undertaken to increase economic efficiency and strengthen national competitiveness.
“Our goal is simple: how to make logistics costs more efficient, strengthen inter-regional connectivity, foster investment and job growth, and ensure that the distribution of goods and public services can better reach the community,” AHY stated in a briefing in Jakarta on Monday, 8 June 2026.
He revealed that to accelerate this target, Indonesia is also encouraging various opportunities for cooperation in human resource development, knowledge and technology transfer, and the strengthening of the national transport industry’s capacity to better face future challenges.
AHY added that amidst various global economic challenges, Indonesia needs to continue opening spaces for collaboration that can bolster national competitiveness. According to him, the most important factor is not merely who the cooperation partners are, but how every partnership can provide tangible benefits to the public.
He emphasised that for Indonesia, as the world’s largest archipelagic nation with 17,380 islands and a population of approximately 280 million, transport is not merely a means of mobility, but the lifeblood that connects the people, strengthens unity, and opens access to various economic opportunities.
“Indonesia is the largest archipelagic nation in the world with 17,380 islands and a population of about 280 million people. For us, transport is the lifeblood that unites the nation and connects all regions of the Nusantara,” said AHY.
AHY asserted that the development of connectivity in Indonesia cannot rely solely on toll roads but must be reinforced with sea and air transport.
According to AHY, the approach to infrastructure development in Indonesia cannot be equated with continental countries that rely on land networks. As an archipelagic nation, Indonesia requires a more comprehensive connectivity strategy.
Furthermore, he emphasised that strengthening inter-island connectivity is key to driving equitable development while simultaneously reducing national logistics costs. He noted that without an integrated transport system, the distribution of goods and services will remain expensive and hinder economic growth in various regions.