Indonesia’s logistics industry is expanding faster than the broader economy, but structural inefficiencies continue to weigh on competitiveness, Coordinating Minister for Economic Affairs Airlangga Hartarto said on Wednesday, November 12, 2025.
Airlangga, speaking virtually at the ALFI Convex 2025 conference, said Southeast Asia’s largest economy grew 5.04% year-on-year in the third quarter of 2025, supported by manufacturing, agriculture, trade, construction and mining. The logistics sector, he noted, has played a pivotal role in sustaining that momentum.
The transportation and warehousing industry grew 8.62% in the third quarter—faster than the 8.52% recorded in the previous three months and well above overall GDP growth. It was the sixth-largest contributor to national output in the quarter, accounting for 6.1% of total economic expansion.
“Supply Chain Indonesia projects that by the end of 2025, the transportation and warehousing sector will contribute around 1,500 trillion rupiah to national GDP. Its share will rise to roughly 9%, from 8.69% in 2024,” Airlangga said.
Despite this growth, logistics efficiency remains a major challenge. Indonesia’s logistics costs reached 14.29% of GDP in 2022—significantly higher than in many peer economies. The country ranked 63rd out of 139 countries in the World Bank’s 2023 Logistics Performance Index, a position that reflects persistent bottlenecks and contributes to high export logistics costs.
Airlangga said the government is drafting a Presidential Regulation on Strengthening National Logistics, aimed at building a more efficient and globally competitive system.
“The National Logistics Strengthening Strategy has been designed comprehensively, encompassing infrastructure connectivity, digitalisation and service integration, and the improvement of human resources and logistics service providers,” he said, noting that the roadmap is reflected in a range of cross-ministerial programmes.
He called on industry players, global partners and logistics professionals to support the reform agenda.
“Let us use this momentum as a turning point,” Airlangga said. “With a spirit of cooperation and innovation, we can build a logistics ecosystem that supports economic growth, strengthens exports and opens wider access across the country.”