Indonesia's Ambition to Become a Logistics Hub Hampered by Regulatory Issues

Jakarta - Possessing a strategic geographic position on world trade routes, Indonesia is considered to have the opportunity to strengthen its position as a regional maritime and logistics hub. Chairwoman of the Indonesian Port Business Association (ABUPI), Liana Trisnawati, stated that Indonesia has 17,000 islands with three Indonesian Archipelagic Sea Lanes (ALKI). If the ports in these areas are optimised, they could become gateways and centres for international trade routes. ABUPI is encouraging the central and regional governments to optimise port activities and ecosystems to drive the maritime economy. Businesses have confirmed their support for regions in making ports a centre for trade and the economy. However, several challenges remain in port management, including regulations and licensing that have not yet accommodated the needs of investors.