Logistics as the Backbone of the National Economy

President Prabowo’s target of 8% economic growth at the onset of his administration is far more than merely an ambitious figure; it stands as a strategic vision to escape the “middle-income trap.”

However, amid global uncertainty and intensifying trade competition, achieving this target requires a rock-solid foundation. One of the most critical and decisive sectors in this pursuit is logistics.

An inefficient logistics system can severely drag down economic growth. Slow and costly distribution weakens the competitiveness of local products and can even dampen foreign and domestic investment interest.

How Logistics Directly Impacts Economic Growth

Simply put, an economy thrives when the flow of goods is fast, seamless, and efficient. Unfortunately, logistics costs in Indonesia remain relatively high compared to several other Southeast Asian countries, leading to:

• Inflated consumer prices
• Reduced competitiveness of local products
• Squeezed business margins
• Diminished investment appeal

This clearly illustrates the unbreakable correlation between the logistics sector and macroeconomic expansion. When logistics efficiency improves, distribution costs decline, thereby boosting competitiveness and ultimately driving robust economic growth.

This is why allocating greater strategic focus to the logistics sector is essential. If the system can be improved, the positive ripple effects will be felt across all industries.

The Pillars for National Logistics Transformation

To support the 8% growth target, logistics transformation must be carried out on a grand scale—strecthing from infrastructure upgrades to seamless system integration—guided by three key pillars:

1. Port Modernization

Most of Indonesian’s export-import activities rely on sea routes. Therefore, improving port efficiency is a top priority.

Strategic ports such as Tanjung Priok, Patimban, and Kuala Tanjung must continue to prioritize:

• Reducing dwelling time
• Adopting comprehensive digital services
• Expanding loading and unloading capacities

2. Optimization of Land Transportation

Strengthening land connectivity is equally important. Infrastructure such as toll roads and freight railways must be perfectly integrated with industrial areas and ports.

Utilizing rail for high-volume cargo is a strategic move to lower distribution costs and reduce an over-reliance on trucking.

3. Inter-island Connectivity

As an archipelagic nation, Indonesia depends heavily on maritime transport for inter-regional distribution. Shipping and maritime companies therefore play a key role in:

• Maintaining price stability across regions
• Ensuring equitable distribution of goods
• Supporting economic activity in remote areas

Strategic Imperatives for the Logistics Industry

To contribute optimally, logistics players need to transform across several key aspects:

System Digitalization

Implementing real-time tracking, warehouse management system (WMS), and integrated logistics platforms to enhance transparency and operational efficiency.

Human Capital Development

A skilled workforce with a deep understanding of modern logistics systems is essential to improving productivity and service quality.

Ecosystem Collaboration

Collaboration between the government and the private sector is vital to building a stronger, more adaptive logistics system.

Infrastructure Investment

This includes developing modern warehouses, dry ports, and integrated terminals to accelerate national distribution.

Refining these systems will directly improve Indonesia’s Logistic Performance Index (LPI)—the global benchmark for a country’s logistics efficiency.

SELOG: A Comprehensive Logistics Solutions for Your Business

The industry logistics is not merely a supporting sector; it is a vital driver of national economic growth. With an efficient, integrated, and technology-driven system, distribution costs can be reduced while competitiveness improves.

Collaboration among the government, industry players, and logistics service providers is the key to turning the 8% growth target into a reality.

In facing these challenges, partnering with a professional logistics provider is a strategic step towards achieving more efficient and optimized distribution flows.

One solution highly worth considering is the freight forwarding services from SELOG, a subsidiary of PT Serasi Autoraya (SERA) and part of the Astra Group.

With over 20 years of experience, SELOG is recognized as a provider of comprehensive logistics solutions, offering top-tier freight forwarding services, for both domestic and international shipping.

In addition to freight forwarding, SELOG offers other logistics services to provide solutions for all business needs, including Trucking, Shipping, Warehousing, and Project Cargo.

SELOG’s services bring greater convenience, effectiveness, and efficiency to your business by leveraging the latest digital technologies.

These include the Astra Fleet Management Solution (AstraFMS) and Warehouse Management System (WMS).

For more information about SELOG’s profile and services, visit www.selog.astra.co.id and follow SELOG’s social media accounts on:

• Instagram: @selog_astra
• LinkedIn: SELOG