Logistics cost reduction: Port-industry integration prioritised
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Bisnis Indonesia - Penurunan biaya logistik: Integrasi port-industri prioritas
6 February 2025
By Artha Adventy
PT Pelabuhan Indonesia (Persero) is expediting the integration of industrial estates with ports to reduce national logistics costs.
Adi Sugiri, Executive General Manager of PT Pelabuhan Indonesia (Pelindo) Regional 2 Tanjung Priok, stated that the strategy to integrate industrial estates with ports will be implemented in several areas.
For instance, he mentioned that industrial estates in Jakarta, Bogor, Depok, Tangerang, and Bekasi (Greater Jakarta) will be integrated with Tanjung Priok Port in North Jakarta.
“We will integrate Tanjung Priok Port with industrial estates in Greater Jakarta,” he stated at the IPEC seminar on shipping, port, logistics, and supply chain business opportunities in 2025 on Wednesday (5/2).
Based on Bappenas’ data, contributors to national logistics costs, particularly domestic ones, have been gradually decreasing from 16.4% in 2018 to 14.3% of the GDP in 2022, with intermediate values of 16.3%, 14.3%, and 13.4%.
National logistics costs consist of transportation, inventory, and administrative expenses.
Until now, transportation costs have remained the largest contributor to overall logistics expenses. These costs declined from 9.1% to 8.8% between 2018 and 2022.
The port sector contributes approximately 13%-20% to transportation costs, which equates to 1.14%-1.76% of the overall logistics expenses.
“People often claim that ports have high logistics costs. However, port tariffs are part of a policy that must be consulted in stages, hierarchically, up to the Ministry of Transportation.”
Currently, Pelindo is reducing port stay and cargo stay times, which in turn lowers costs.
“We are the same. As the operator of company cargo at ports, we do not want ships to stay too long at ports. What we are pursuing is the volume or throughput of the ships or the cargo themselves,” he explained.
