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The current situation of Indonesia's dedicated transportation industry

Indonesia's dedicated line is the country with the highest logistics cost in ASEAN, and the government urgently needs to take action to improve the logistics system of Indonesia's dedicated line. Generally speaking, a country's logistics cost should not exceed 15% of its GDP, while Indonesia's dedicated line logistics cost accounts for 25% -30% of its GDP, which is 16% and 10% higher than Thailand and Singapore, respectively, clearly at a competitive disadvantage. Due to the cost of dedicated logistics in Indonesia, some local products are even more expensive than similar products imported from abroad. It can be said that the logistics cost of Indonesian dedicated lines is an obstacle that Indonesia's economic development must overcome.
In addition to Indonesia's unique geographical conditions, low government efficiency is also one of the main reasons for the high logistics costs of dedicated lines in Indonesia. According to the Logistics Performance Index (LPI) released by the World Bank in 2010, Indonesia ranks 75th out of 155 surveyed countries, lower than Malaysia (29th), Thailand (35th), the Philippines (44th), and Vietnam (53rd), and is ranked last among the major countries in the Eastern Alliance. This index evaluates the logistics status of various countries based on infrastructure conditions, customs clearance efficiency, shipping deadlines, and transportation logistics service quality, with customs clearance efficiency and transparency being the main issues of Indonesian dedicated logistics. Indonesia takes an average of 5.5 days to transport goods out of the port, while Singapore only takes 1-2 days, which greatly increases the transportation cost of Indonesian products.
If the Indonesian government does not make efforts to solve this problem, it will not be able to face fierce competition. To this end, President Zoko has formulated many policies to solve this problem, including improving the efficiency of import and export licenses, promoting the construction of bonded logistics centers, and promoting the circulation of domestic goods in Indonesia through regular Indonesian special lines.
60% of the total transportation volume of Indonesia's dedicated logistics is by sea, so the key to reducing the logistics cost of Indonesia's dedicated logistics is to build more ports. In the "2011-2025 Medium and Long Term Economic Development Plan" (MP3ei), the Indonesian government plans to invest approximately $13 billion to expand 29 international ports, expand shipping and logistics systems, improve logistics supply system efficiency, increase transportation capacity, improve port management and service capabilities, reduce logistics costs for Indonesia's dedicated lines, and enhance competitiveness by 2025.

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