Govt Accelerates National Connectivity to Reduce Logistics Costs

RRI.CO.ID, Jakarta - The Indonesian government is accelerating national connectivity to cut logistics costs and boost economic competitiveness, setting efficient distribution of goods and services as the foundation for equitable development through 2029.

Coordinating Minister for Infrastructure and Regional Development, Agus Harimurti Yudhoyono (AHY), said the government aims to reduce national logistics costs to 12.5 percent of Gross Domestic Product (GDP) by 2029, under the leadership of President Prabowo Subianto.

“Our goal is straightforward: to make logistics costs more efficient, strengthen inter‑regional connectivity, foster growth in investment and job creation, and ensure that the distribution of goods and public services can better reach the community,” Minister AHY said in Jakarta on Monday, June 8, 2026, as quoted by Antara.

He explained that Indonesia is also opening opportunities for international collaboration through human resource development, technology transfer, and the strengthening of the national transportation industry's capacity. These steps are considered crucial for Indonesia’s transportation sector to address the evolving challenges of the global economy.

Minister AHY emphasized that every partnership must deliver tangible benefits to the public. The government’s focus is not merely on finding partners, but on ensuring that collaboration outcomes enhance national welfare and competitiveness.

He noted that Indonesia’s status as the world’s largest archipelago -- with 17,380 islands and a population of about 280 million people -- demands a distinct approach to development. “For us, transportation is the lifeline that unites our nation and connects all regions,” he said.

Minister AHY stressed that national connectivity development cannot rely solely on toll roads. The government is also strengthening maritime and air transportation networks to ensure more effective inter‑island connectivity.

He added that infrastructure development in Indonesia cannot be equated with continental countries that depend on land networks. As an archipelagic nation, Indonesia requires a more comprehensive connectivity strategy.

Strengthening an integrated transportation system is seen as the key to reducing national logistics costs. Without comprehensive connectivity, the distribution of goods and services risks remaining expensive and hindering economic growth across Indonesia’s regions. ***