World Bank loan to improve logistics
A $300 million loan approved by the World Bank will help the Government of Indonesia deepen reforms to reduce the costs and improve the reliability of the country’s maritime logistics. As per the 2016 World Bank logistics index report, Indonesia was in 63rd position out of 160 countries in the report when it came to logistic costs. Transportation accounts for 72 per cent of logistics cost. Many logistics vehicles transporting goods from Java to outside Java returned empty and using trucks was more costly than trains, ships and planes. The funds will be used for strengthening ports’ governance.