Logistics Costs at 14% of GDP, Government to Reduce Gradually
The Coordinating Ministry for Economic Affairs assesses that the logistics sector plays a vital role in supporting the smooth distribution of goods and services, strengthening inter-regional connectivity, and enhancing national economic competitiveness.
According to Coordinating Minister for Economic Affairs Airlangga Hartarto, strengthening an efficient, integrated, and adaptive logistics system is an increasingly urgent need amid increasingly complex global dynamics.
“The government views the logistics sector as a strategic pillar in maintaining smooth distribution, strengthening connectivity, and improving national economic competitiveness,” said Airlangga in an official statement on Tuesday, 14 April 2026.
Therefore, according to him, strengthening an integrated and resilient logistics system is an important part of the development agenda. Deputy for Coordination of Trade and Digital Economy Ali Murtopo Simbolon stated that the current national logistics costs are still around 14 percent of Gross Domestic Product (GDP).
The government, he said, targets a gradual reduction in this figure through several policies to encourage distribution efficiency and regional connectivity. The Coordinating Ministry for Economic Affairs expressed support for the organisation of the Indonesia Logistics and Forwarder Association Conference and Exhibition (ALFI CONVEX) 2026 as a forum for collaboration between the government and business actors in the logistics sector.
The ministry emphasised its role in coordinating cross-sectoral policies because logistics involves many stakeholders. Synergy between ministries, institutions, and business actors is deemed necessary to promote a more integrated logistics system.
ALFI CONVEX 2026 is scheduled to take place from 28 to 30 October 2026 at JIExpo Kemayoran with the theme “Indonesia in Motion: Empowering a Resilient Logistics Ecosystem”. This forum will discuss multimodal connectivity, logistics digitalisation, supply chain efficiency, and logistics sector resilience.