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10 to 15 percent reduction
According to the Secretary of the Expert Team of the National Logistics System, a sea toll road, a maritime program initiated by Indonesian President Joko Widodo, may reduce the country’s logistics costs by 10 to 15 percent.
Currently, between 18 and 22 percent of companies’ production costs in Indonesia are absorbed by logistics costs, particularly due to expensive transportation costs, hence seriously reducing competitiveness of Indonesian companies. In peer regional countries this figure is below ten percent.
Source: FIATA
