Indonesia's burgeoning logistics sector is increasingly catching the eye of both local and foreign investors, recognizing its pivotal role in the nation's trade landscape. Akbar Djohan, Chairman of the Indonesian Logistics Freight Forwarding Association (ALFI), underscores the indispensable contribution of foreign investment, advocating for strategic public-private partnerships to fortify the nation's logistics framework. Djohan emphasizes that foreign capital infusion not only injects financial resources but also crucially brings in advanced technology, invaluable expertise, and enhanced throughput, all essential for nurturing a robust and efficient logistics ecosystem.
In order to entice foreign investors, Djohan stresses the imperative of providing a conducive business environment characterized by certainty and ease of operations. He suggests initiatives such as offering concession rights and devising mutually beneficial solutions. Furthermore, Djohan advocates for streamlined access to projects necessitating significant investments, surpassing the scope of the national budget, while maintaining equitable treatment for both existing and prospective domestic and foreign investors. A prominent case in point illustrating this trend is the expansion endeavors of global logistics powerhouse DHL within Indonesia. The company has earmarked a substantial EUR 25 million for fleet modernization and the establishment of new facilities, signifying its enduring commitment to both growth and sustainability in the Indonesian market. However, Indonesia faces formidable challenges within its logistics landscape, including the intricate geographical nature as an archipelagic nation and pronounced infrastructure gaps, particularly evident in the contrast between Java and other regions. These challenges have contributed to a discernible decline in Indonesia's Logistics Performance Index (LPI), as highlighted in recent reports by the World Bank.
