The Indonesian Logistics and Forwarders Association (ALFI) has proposed several strategic recommendations to support the nation’s target of 8% economic growth by 2029, alongside a 12.5% reduction in logistics costs. ALFI recommends for the development of integrated, accessible, and affordable infrastructure.
ALFI Advisory Board Chairman Yukki Nugrahawan Hanafi emphasized that infrastructure is a crucial element for facilitating movement, mobility, and connectivity between regions in Indonesia, while also supporting the broader supply chain.
He stressed the importance of ensuring that Indonesia’s infrastructure not only meets domestic needs but also outpaces that of regional and global competitors, ultimately driving greater investment and competitiveness.
“Adequate infrastructure is vital to boost investor confidence and foster optimal economic growth. However, the lack of integrated infrastructure remains a major contributor to high logistics costs,” said Yukki.
While acknowledging the government’s efforts to enhance infrastructure—evidenced by significant investments such as the construction of 1,885 km of toll roads, 50 new airports, and 1,502 new ports over the past decade—Yukki noted that challenges still persist in achieving a fully integrated and efficient infrastructure network.
State Owned – Private Sector Collaboration
Yukki expressed strong support for President Prabowo Subianto’s inclusive policy of involving not only state-owned enterprises (BUMN) but also the private sector in infrastructure development.
“With the active involvement of the private sector, the vision of achieving 8% economic growth by 2029 becomes more attainable,” Yukki said.
He underscored the growing importance of collaboration between BUMN and the private sector, which has already proven effective in recent years. These partnerships have resulted in large-scale, innovative projects that have not only increased national economic competitiveness but also created new job opportunities.
“Joint investments in infrastructure, technology, renewable energy, and other key sectors have generated diverse job opportunities and driven sustainable economic growth,” Yukki explained.
The combination of BUMN’s long-term experience in managing public assets and the private sector’s flexibility and innovation is seen as key to improving public services and fostering sustainable development. Furthermore, Yukki highlighted the private sector’s ability to facilitate technology transfer, strengthen local capabilities, and support the growth of a more self-sufficient national industry.
Despite the positive steps forward, Yukki acknowledged that Indonesia still faces significant challenges in the integrated infrastructure sector. However, he remains optimistic that through continued collaboration, these obstacles can be overcome.
For Economic Competitiveness
To achieve sustainable economic growth, Yukki advocates for the development of integrated infrastructure that connects various modes of transportation, such as air, sea, land, and rail. This interconnectedness will streamline goods distribution and reduce logistics costs.
“We must increase the capacity and quality of all transportation modes to ensure they complement each other effectively, based on the characteristics of the goods being transported,” Yukki said. “Additionally, developing logistics facilities in emerging economic hubs is crucial to strengthening connectivity across Indonesia.”
Adil Karim, Chairman of ALFI Jakarta, echoed Yukki’s sentiments, stressing that infrastructure improvement is critical for reducing logistics costs and achieving the 8% economic growth target. He expressed confidence that if integrated infrastructure improvements are carried out, Indonesia can meet its logistics cost target of 12.5% of GDP by 2029.
“Integrated infrastructure improvements are key to enabling Indonesia to meet its global economic challenges, achieve 8% growth by 2029, and lower logistics costs,” said Adil.