• Coordinating Minister of Commerce Luhut Promises Decrease in Logistics Costs

    Coordinating Minister for the Ministry of Marine Affairs, Luhut Binsar Panjaitan

    JAKARTA – The government is targeting a reduction in logistics costs as a solution to address the gap and improve the economy.

    Coordinating Minister for Marine Affairs Luhut Binsar Pandjaitan in a public lecture at Hasanuddin University said that the government will continue to encourage development programs to reduce the gap and continue to improve the growth of the Indonesian economy.

    The focus of this development will be balanced between physical development in the form of infrastructure and human resource development (HR) in the form of education and health, as well as providing assistance for the poor.

    “The focus of government infrastructure development is to reduce logistics costs in Indonesia to improve our economic competitiveness,” said Coordinating Minister Luhut through a press release received by Bisnis on Sunday (27/08/2017).

    In infrastructure development sector, Coordinating Minister Luhut said in accordance with the mission of President Joko Widodo (Jokowi) wants to make Indonesia as the World Maritime Axis, through the sea toll program. Therefore, now the infrastructure development continues to be intensified, especially the Eastern Indonesia Region (KIT), one of them in Wamena, Papua.

    “If we dispose of funds that do not fit, now the efficiency and fit to build infrastructure, because it is realized only 20% of the state budget funds that can fund infrastructure,” said Luhut.

    Benefits of Sea Tol

    The sea toll road program itself has been felt by the community, especially the people of Papua. The reason, by the previous leaders, papua not be noticed.

    “New to the current government of Papua built,” he continued.

    Coordinating Minister Luhut added that President Jokowi’s wish for economic equity in Indonesia has been proven. One of them is the construction of Trans Papua road along 1,070 kilometers.

    “This is realized by President Jokowi is not only limited to talk, it is a proof of his words,” he said.

    According to the Coordinating Minister Luhut world confidence to Indonesia continues to increase. Based on the results of a prestigious institution polls the world, currently Indonesia is in the first position of the world ‘Gold’. Of course, this condition is supported by the highest average survey in the last seven years, that all the lines are running well.

    He described that infrastructure developments, poverty reduction and investment grade in investment confidence in Indonesia are getting better. Although Indonesia’s economic growth is still racing at 5.1-5.2%, but in efforts to alleviate poverty continues to be done.

    In terms of export commodities, for example, the government has stressed to do the processing, no longer in the form of raw materials or raw materials. Meanwhile, investment grade related to investment trust in Indonesia has been considered safe to invest, because this has triggered the interest rate dropped to 25 basis points.

    ———
    Sources: http://industri.bisnis.com/read/20170827/98/684506/menko-luhut-janjikan-penurunan-biaya-logistik
    Translated by Aryputra Pande

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