Chairman of the Indonesian Logistics Association (ALI), Mahendra Rianto, underscores the crucial need for government support in shaping national logistics policies aimed at reducing supply chain costs. With the vision of positioning Indonesia as the world’s fourth-largest industrial nation by 2045, Mahendra emphasizes the necessity of government backing to propel local logistics players to world-class status. His proposals include ensuring every international trade transaction involves collaboration with local logistics service providers and implementing term of trades (INCOTERM) such as Ex-Work (EXW) for imports and Delivered Duty Paid (DDP) / Delivered at place Unloaded (DPU) for exports. Highlighting the contribution of the supply chain and logistics costs to Indonesia’s Gross Domestic Product (GDP) at 14.29%, Mahendra underscores the need for policies to enhance efficiency and ease of doing business, including Short Sea Shipping and Railway regulations.

According to the World Bank Report, Indonesia’s logistics cost-to-GDP ratio reached 14.29% in 2022, indicating a trend toward pre-Covid-19 normalization. ALI also addresses the 2024 outlook for International Seafreight, advocating for improvements in cumbersome import licensing. Regarding warehouse preparation and activities, ALI projects significant growth in 2024, aligning with the realization of foreign and domestic investments in the transportation, warehouse, and telecommunications sectors. Mahendra highlights the relocation of logistics hubs to Central Java, driven by competitive labor costs and stable security conditions. E-commerce growth is predicted to surge in 2024, albeit not as high as previous years due to closures of several e-commerce warehouse facilities. With this vision, Mahendra underscores the necessity for licensing certainty to enhance import process efficiency. Together, ALI and Mahendra Rianto guide the logistics industry toward a sustainable and efficient future.