Indonesia jumped 17 positions in the World Bank’s Logistics Performance Index (LPI) to 46th out of 168 countries in 2018 from 63rd in 2016 but it remains poor compared to its regional peers in Southeast Asia. Indonesia’s ranking worse than its competitors in Southeast Asia namely Singapore (7th), Thailand (32nd), Vietnam (39th), and Malaysia (41st).
Indonesia has a poor score in the customs and infrastructure with a score of 2.67 and 2.89, respectively. Meanwhile, the country recorded above 3 scores in the international shipments, tracking and tracing, logistics competence, and timeliness.
Indonesia’s logistics cost remains high compared to its regional peers in Southeast Asia. Logistics cost including transport, warehousing, and inventory in Indonesia accounted for 24% of the country’s gross domestic product (GDP). The country’s logistic cost-to-GDP ratio is far higher than those of neighbouring countries, including Thailand and Malaysia where the ratio reached 15% and 13%, respectively.