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Economists call infrastructure development has not reduced logistics costs, this is proof




TEMPO.CO, Jakarta – The economist of the Institute for the Development of Economy and Finance (Indef), Bhima Yudhistira Adhinegara, underlined the performance of the government in seeking to improve the competitiveness of logistics. This memo is also a one-year assessment of the administration of President Joko Widodo aka Jokowi in his second term.

“The infrastructure development has not been able to reduce logistics costs because there is a lot of bad infrastructure in the planning,” Bhima said when contacted on Saturday October 17, 2020.

Bhima said logistics costs in Indonesia still accounted for 23-24% of gross domestic product. The high cost of logistics means that the competitiveness of investments in Indonesia is low.

The government’s efforts to facilitate access were mentioned in President Joko Widodo or Jokowi’s inaugural speech a year ago to the MPR. Jokowi said at the time that the government’s objective was to develop infrastructure connecting production areas with distribution areas, which would facilitate access to tourist areas, stimulate new jobs and accelerate added value for the economy. popular.

Finance Minister Sri Mulyani Indrawati aims to reduce national logistics costs to 17 percent of gross domestic product or GDP through the removal of the National Logistics Ecosystem (NLE). “NLE can reduce our logistics costs from 23.5% of GDP to 17%,” he said on September 24.

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