Indonesia Wants to be Logistics Hub in Asia-Pacific Region

Indonesian President Joko Widodo (third left), visits a warehouse after launching a warehouse-sharing scheme in Cakung.

Jakarta, 02 Jumadil Akhr 1437/11 March 2016 (MINA) – President Joko Widodo (Jokowi) has expressed his intent to make Indonesia the logistics “hub” in the Asia-Pacific region following the inauguration of the Bonded Logistics Center (PLB) in the country.

“In the current era of competition, acceleration of work, and accelerated development, let us make Indonesia a logistics hub in the Asia-Pacific region,” the president remarked after inaugurating the operation of the PLB in Cipta Krida Bahari industrial area, Cakung, North Jakarta, on Thursday.

According to the head of state, as a country with the largest gross domestic product (GDP) in the ASEAN, having almost 45 percent of the population of the region, and the largest consumption in the ASEAN of some 40-45 percent, Indonesia should have had such a logistics center for a long time.

“But, in reality, we have to go to another country if we want to buy anything. For me, it should not happen again since the production is in Indonesia and the warehouse should not be in another country,” Jokowi emphasized.

Given such circumstances, the president pointed out that this situation cannot continue and must be stopped, Mi’raj Islamic News Agency (MINA) reported, quoting Antara News.

“We will no longer remain competitive as our logistics and transportation costs are a burden,” the president emphasized.

According to Jokowi, the presence of the PLB aims to relocate goods required for industrial and non-industrial use, which were previously stored in a neighboring country, to existing warehouses in Indonesia.

Therefore, he noted that the existence of the PLB will make the production costs more efficient and cheaper.

“Hopefully, everything can be relocated here as consumption and production takes place in Indonesia and constitutes 45 percent of the nations GDP,” Jokowi stated.

The president hoped that the extensive displacement of logistics that earlier had to be undertaken in other countries or in neighboring ASEAN countries would be moved to Indonesia following the inauguration of the PLB. (R07/R01)

Mi’raj Islamic News Agency (MINA)