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AI Emerges as a Game Changer for Indonesia’s Logistics Competitiveness

The integration of artificial intelligence (AI) is rapidly reshaping global supply chains, and Indonesia must accelerate its adoption or risk falling behind, industry leaders and economists said on Tuesday.

Yukki Nugrahawan Hanafi, Chair of the Asia-Pacific Region at FIATA (International Federation of Freight Forwarders Associations) and head of the advisory board at ALFI (Indonesia Logistics and Forwarders’ Association), said the logistics sector is undergoing a digital transformation, driven largely by AI.

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“Global logistics players are already integrating AI into their operations to streamline processes and enhance efficiency. It’s no longer optional, AI is becoming indispensable,” Yukki told reporters.

A 2025 report by research firm Gitnux found that 60% of companies implementing AI in logistics reported improved operational efficiency. AI is increasingly used to forecast demand, reduce costs, automate customer service, manage fleets, and plan routes more effectively.

“These advancements are giving companies a competitive edge. Indonesia must start investing in the development of AI-based capabilities, particularly in our human resources,” Yukki said.

The call for swift adoption comes amid continued volatility in global trade—lingering effects of the COVID-19 pandemic, geopolitical tensions across key shipping lanes, and ongoing tariff disputes.

“In such an unpredictable environment, AI can help businesses map out accurate trade routes and adapt operations in real time,” Yukki added.

Economist Ariyo DP Irhamna of the Institute for Development of Economics and Finance (INDEF) echoed the sentiment, emphasizing the need for government intervention to support digital infrastructure.

“Developing integrated logistics infrastructure is critical, but we also need to harness AI to maximize its impact,” he said.

He urged policymakers to incorporate AI into the upcoming Presidential Regulation on Strengthening the Logistics Sector, which is currently being drafted. The regulation is expected to set the strategic direction for infrastructure and logistics development under President Prabowo Subianto’s administration.

“If AI is formally included in government regulation, it would signal serious commitment and encourage industry players to begin integrating AI into their business models,” Ariyo noted.

Both Yukki and Ariyo stressed that the next few years will be pivotal for Indonesia. AI, they said, has the potential not only to modernize logistics but to contribute meaningfully to the government’s ambitious goal of achieving 8% economic growth.

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“AI could be the game changer Indonesia needs to make its supply chain globally competitive,” Yukki said.