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Indonesia's Logistics Costs Are High, Nearly Double Those of Developed Countries

Adi Ahdiat 12/02/2026 12:14 WIB

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The ratio of logistics costs to Indonesia's GDP reached 14.29% in 2022, almost twice as high as that of developed countries. This figure indicates the high cost of logistics in Indonesia.

The ratio of logistics costs to GDP in Indonesia and developed countries (2022-2023)

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The ratio of logistics costs to GDP in Indonesia and developed countries (2022-2023)

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Logistics costs in Indonesia are relatively high compared to developed countries.

This is evident in the significantly higher ratio of logistics costs to Indonesia's gross domestic product (GDP).

According to Presidential Regulation Number 26 of 2012, "logistics" is part of the supply chain that handles the flow of goods, information, and money through procurement, storage, transportation, distribution, and delivery services from point of origin to point of destination.

According to the Coordinating Ministry for Economic Affairs, logistics has several cost components, namely:

Transportation costs: The costs of transporting goods using transportation.
Warehousing costs: The costs of storing goods in a warehouse, including the operational costs of storage facilities.
Inventory holding costs: Costs incurred due to goods being stored in a warehouse, such as retained capital costs, interest, taxes, insurance, and the risk of damaged or unsold goods.
Administrative costs: The costs of managerial activities, planning, controlling, and coordinating the logistics system.
According to data from the Coordinating Ministry for Economic Affairs, in 2022, total logistics costs in Indonesia reached 14.29% of the national gross domestic product (GDP).

This figure is almost double the similar cost ratio in Canada, the United States, France, Italy, Japan, Spain, Germany, and the United Kingdom.

According to data from the research institute Armstrong & Associates, these developed countries had a logistics cost-to-GDP ratio in the range of 7.5% to 8.5% in 2023.

In light of this situation, the Indonesian government is working to reduce logistics costs in the next few years to make product prices more affordable.

"We are targeting [a reduction in the logistics cost ratio] from 14.29 percent to 12 percent in 2029," said the Director General of Domestic Trade at the Ministry of Trade, Iqbal Shoffan Shofwan, as reported by Antara (November 4, 2025).

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia's Logistics Costs Are High, Nearly Double Those of Developed Countries

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Related Data

Indonesian Citizens Send the Most Packages Using Regular Services in 2024

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

Land Transportation, the Most Expensive Component of Logistics Costs in Indonesia

Logistics Costs in Indonesia's Domestic Market Are Higher Than Exports

This is the Package Delivery Service Chosen by Indonesian People

Indonesia's Logistics Cost-to-GDP Ratio Decreases Between 2005 and 2022

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Indonesia's Logistics Costs Are High, Nearly Double Those of Developed Countries

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Indonesian Citizens Send the Most Packages Using Regular Services in 2024

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

Land Transportation, the Most Expensive Component of Logistics Costs in Indonesia

Logistics Costs in Indonesia's Domestic Market Are Higher Than Exports

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Indonesia's Logistics Cost-to-GDP Ratio Decreases Between 2005 and 2022

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