Supply Chain Indonesia (SCI) has proposed three institutional models to overhaul the country’s logistics governance, but says the creation of a new National Logistics Agency, or Balognas, is the most practical route for the next five years.
The recommendations stem from a study titled National Logistics Institutional Mapping 2025–2030, which SCI says underscores the urgency of fixing Indonesia’s fragmented logistics structure to support economic growth.
SCI founder and CEO Setijadi said the system remains heavily sectoral, with ministries running logistics programmes in silos and with limited cross-agency coordination.
“The study shows the need to strengthen national logistics institutions so cross-sectoral policies can be carried out effectively,” Setijadi said on Wednesday. He added that the findings build on long-standing calls from industry and government stakeholders for better oversight.
According to Setijadi, the current arrangements make it difficult to align policies from central to local levels. “A national coordinating institution is necessary so logistics policies can be integrated nationwide,” he said.
Three institutional options
The study outlines three potential models:
• Strengthened coordinating ministry model.
Under this option, existing coordinating ministries for the economy, food, and infrastructure would be tasked with tightening policy alignment. The model avoids creating new bureaucracy but hinges on strong political backing and formal coordination mechanisms.
• National Logistics Agency (Balognas).
This new body, reporting directly to the president, would function as a central clearinghouse for data, evaluation, and policy across the logistics system. It would coordinate the work of the coordinating ministries and technical ministries or agencies.
• Ministry of Logistics.
A long-term model that would consolidate all logistics and national supply-chain functions under a single ministry. SCI notes this option requires major structural and regulatory reform.
Balognas seen as most feasible
Among the three, SCI says Balognas offers the best balance between effectiveness and political feasibility.
With a presidential mandate, the agency would sit above ministerial silos and help align planning and policy between national and regional governments. It would not handle technical operations but would focus on synchronising strategies and regulatory frameworks.
Setijadi also noted that parliament has placed a draft logistics law on its 2025–2029 legislative agenda. Such laws typically mandate the creation of a permanent institution to implement them, he said.
“The logistics law must include explicit provisions for establishing a permanent logistics institution with coordinating, regulatory, and evaluative authority,” he said.