The Minister emphasizes the efficiency of the logistics sector through investments

Nusa Dua, Bali (ANTARA) – Minister of Transport Budi Karya Sumadi has highlighted the importance of efficiency in the logistics sector through investments in technologies that will support the sustainable development of the supply chain in the future.

“The most important aspect is how we can become more efficient and united,” the minister said on the sidelines of the opening of the Asia Pacific Logistics and Freight Forwarders Conference in Nusa Dua, Badung district of Bali, on Thursday.

Big Data and Artificial Intelligence (AI) are the two driving forces behind a range of technological innovations that are contributing to increased efficiency in the logistics sector.

Apart from the efficiency aspect, he also encouraged logistics and forwarding companies to improve their networks not only on the domestic market but also abroad.

Supporting the Minister’s stance, Chamber of Commerce and Industry Chairman Arsjid Rasjid said on the same occasion that the logistics sector is expected to increase its efficiency, which will encourage greater contribution to the economy.

Moreover, sustainable development is important to support the energy transformation towards an environmentally friendly one.

“In the future we have to be efficient, and in the future we will develop more than the current five percent, and one of the keys is logistics. Without good and efficient logistics, the economy cannot develop,” he emphasized.

In 2023, Indonesia’s logistics sector will account for 5.5 percent of gross domestic product (GDP), with annual growth of seven percent.

The growth was due to increased trade volume, infrastructure expansion and implementation of new technologies in supply chain management.

Indonesian Association of Logistics and Freight Forwarders (ALFI) Chairman Akbar Djohan stressed the urgent need for investment in green technologies and logistics solutions.

He emphasized that the use of technologies such as artificial intelligence and big data in supply chain management improves operational cost efficiency by up to 20 percent and reduces carbon dioxide emissions by up to 15 percent.

The global freight transportation and logistics market is estimated to grow by USD 18.69 billion in 2026, at a compound annual growth rate of 4.4 percent.

In the Asia-Pacific region, Mordor Intelligence reports that the logistics and freight forwarding market value will reach US$3.55 trillion in 2024 and is estimated to reach US$4.56 trillion in 2029.

Logistics transportation involves the sale of services provided by companies involved in the transportation of goods and raw materials by land, sea and air, including warehousing, transportation, shipping and packaging services.

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