How Much Does Logistics Cost in the Price of Goods in Indonesia?

According to Presidential Regulation No. 26 of 2012, "logistics" is a part of the supply chain that handles the flow of goods, information, and money through the processes of procurement, storage, transportation, distribution, and delivery from the point of origin to the destination.

According to the Coordinating Ministry for Economic Affairs, logistics has a number of cost components, namely:

• Transportation costs: The cost of transporting goods using transportation tools.
• Warehousing costs: The cost of storing goods in warehouses, including the operational costs of storage facilities.
• Inventory storage costs: The costs incurred due to goods being stored in warehouses, such as the cost of frozen capital, interest, taxes, insurance, and the risk of damaged or unsold goods.
• Administrative costs: The costs of managerial activities, planning, control, and coordination of the logistics system.

According to the results of a study by the National Development Planning Agency (Bappenas), in 2022, the overall share of logistics costs reached 14.1% of the price of goods in the Indonesian domestic market.

However, the proportion of logistics costs varies for each commodity.

The most expensive logistics costs are in corn, where the proportion reaches 44% of the price of goods.

The following is a breakdown of the share of logistics costs in the price of goods in Indonesia in 2022, based on the results of the Bappenas study, sorted from the highest to the lowest:

1. Corn: 44% (of the price of goods)
2. Engine lubricants/oil: 39.7%
3. Rice: 38.7%
4. Fish: 37.8%
5. Palm oil: 34.7%
6. Chicken meat: 33.5%
7. Coal: 29.1%
8. Fertilizer: 25.5%
9. Vehicle fuel: 17.9%
10. Motorcycles: 15.2%
11. Bottled drinking water: 14.3%
12. Cement: 8.3%
13. Cars: 5.1%
14. Ready-made clothing: 2.3%
15. Electricity poles: 1.5%
16. Filtered cigarettes: 0.9%
17. LPG: 0.9%
18. Car engine components: 0.9%
19. Electrical panels: 0.7%
20. Wall paint: 0.7%
21. Health products/medicines: 0.6%
22. Mobile phones: 0.1%
23. Wood: 0.04%
24. Electrical cables: 0.03%
25. Jewelry made from gold: 0.01%