MitigatingHigh.PDF

Mitigating High Logistics Cost A country perspective UN ESCAP Regional Conference for Logistics Service Provider Jakarta, 23 June 2016 By Iman Gandi Consultant Technical Advisor to PT YCH Indonesia Agenda • Indonesia logistics infrastructure and regulatory • What cause of high logistics cost • Initiatives taken by the forwarding sector in Indonesia to improve the situation and lowering operational cost 7/4/2016 UN ESCAP Regional Conference for LSP Indonesia logistics infrastructure and regulatory 7/4/2016 UN ESCAP Regional Conference for LSP Background 4th largest country in the world by population (250 million) World Bank’s latest LPI in 2014 rank at 53rd Biggest economy in Southeast Asia ($888 billion out of 160 countries  SG (5), MY (25), TH (35) GDP in 2014) 24 % of GDP (TH 16 %)  $80 billion a year 17,000 islands stretching across almost two million saving (World Bank ) square miles by 2025, the urban population is projected to Since 2014, new government outlined ambitious reach 65% (53% in 2010)* expenditure plans for: •Increase car population 3,600 km of new roads •Higher volumes of transported goods (consumer class 15 new airports grows) 24 new seaports •Critical country to develop a solid level of 3,258 km railw