Improvement Of Logistics System Needs Acceleration

Surabaya, East Java, Oct 24 (Antara) - The improvement in logistics systems needs to be accelerated to increase the competitiveness of the nation`s industries before the ASEAN Economic Community 2015 begins operating, according to Industry Minister MS Hidayat. "We have only two years to improve the logistics system. If we fail to do so, we will have a lot of problems," the minister said during a national coordination meeting of the Indonesian Chamber of Commerce and Industry (Kadin) in the field of transportation and logistics here on Thursday. Hidayat noted that logistics costs in Indonesia are much higher than in developed countries. According to Hidayat, logistics costs in Indonesia are 23.6 percent, while only 10 percent in the United States, 10.6 percent in Japan, and 16.3 percent in South Korea. "High logistics costs will make business players spend more money on the distribution of each product, and that will influence the selling prince," Hidayat said. Therefore, he urged the business circle, particularly Kadin, to develop a plan of action with the government in creating an effective national logistics system. He admitted that as an island country, Indonesia is facing more complicated problems in building an efficient logistics system than other countries, such as Malaysia and Singapore.