good crabexellent crabVietnamese crab exporter

Luhut Calls World Bank's Logistics Performance Index Unfair

Jayanty Nada Shofa
July 18, 2023 | 12:25 pm
SHARE
Coordinating Minister for Investment and Maritime Affairs Luhut Binsar Pandjaitan. (B1 Photo/Joanito De Saojoao)
Coordinating Minister for Investment and Maritime Affairs Luhut Binsar Pandjaitan. (B1 Photo/Joanito De Saojoao)

Jakarta. Chief Investment Minister Luhut Binsar Pandjaitan on Tuesday attributed Indonesia’s poor trade logistics performance as revealed by a World Bank report to having too many ports that scatter across the archipelago. The index might also not provide an apple-to-apple comparison, as other economies such as Singapore do not have as many ports.

The World Bank not long ago released the 2023 logistics performance index (LPI) which placed Indonesia in 61st place out of 139 countries. The LPI measures how efficiently a country moves goods across and within its borders on a 5-point scale. The index uses six parameters, namely: customs, infrastructure, international shipments, logistics competence, timeliness, as well as tracking and tracing. In 2023, Indonesia only scored 3 in overall LPI, falling behind other ASEAN countries such as Singapore (4.3) and Malaysia (3.6).  

Indonesia has launched the so-called national logistics ecosystem (NLE) – a digital platform that aims to cut bureaucratic red tape and logistics costs. Indonesia plans to have this platform adopted by 34 ports in the country. The Finance Ministry in March reported that 14 ports had implemented the NLE so far.

“We have a large number of ports. We are currently trying to improve 34 ports and everything is going according to plan. But we have thousands of small ports prone to smuggling,”Luhut said at a conference in Jakarta on Tuesday.

ADVERTISEMENT

Luhut told the forum that it would be unfair to compare Indonesia to Singapore which significantly differs in population size and number of ports.

Indonesia has 34 ports, although the actual number can go up to 116 depending on the quality of the ports. Not to mention the smaller ones that can bring the number to thousands, according to the minister.

“Singapore is the highest-ranking ASEAN country in the LPI report. Singapore is only home to 6 million people and only has one port. So of course, they would score relatively high. But I think people should make an apple-to-apple comparison,” Luhut said.

Luhut unveiled his plans to meet the World Bank Indonesia and Timor Leste country director Satu Kahkonen to discuss Indonesia’s LPI performance as the country has done many things to improve its logistics.

“The UNCTAD [UN Conference on Trade and Development] names Indonesia in the top 20 countries with the best port performance. So there is a paradox here. We will accept the [LPI] results for now, but I’m going to talk to Satu Kahkonen so they can tell us what we have done wrong and which aspects we should improve," he added.

According to the 2023 report, Indonesia’s scores on the respective LPI parameters are as follows: customs (2.8), infrastructure (2.9), international shipments (3), logistics competence (2.9), tracking and tracing (3), as well as timeliness (3.3). Singapore tops the list in the 2023 ranking with an LPI score of 4.3. Followed by Finland (4.2). 

Indonesia ranked 46th place in the 2018 LPI survey after scoring an overall score of 3.15.

Tags: Keywords:
SHARE

Related Articles


Business Jun 17, 2026 | 1:33 pm

AI to Watch Over Indonesia’s Social Aid to Save $15 Billion

The estimated savings from the AI-backed social aid rollout are still subject to change, depending on the quality of the data.
Business Jun 15, 2026 | 4:03 pm

Jakarta Stocks Soar 4% on US-Iran Peace Hopes

JCI surged 4.1% to 6,254 as hopes for a US-Iran peace deal sent oil prices lower and boosted regional markets.
Business Jun 14, 2026 | 10:15 pm

Luhut Says Indonesia Could Attract $500 Billion Through Family Office Initiative

Luhut said Indonesia had been relatively slow to pursue the concept compared with other jurisdictions that have attracted global wealth.
Business May 25, 2026 | 5:31 pm

Luhut Floats AI-Run Customs as Indonesia’s New Trade Regime Nears

Ex-minister Luhut Binsar Pandjaitan says nothing can escape AI as he heavily promotes the technology in the new export regime.
Business Apr 30, 2026 | 10:26 pm

Palm Oil Seen Up 8% in 2026 as Supply Caps Gains, World Bank Says

World Bank sees palm oil rising 8% in 2026, with supply growth and higher costs capping further gains.
Business Apr 30, 2026 | 4:03 pm

World Bank Sees Coal Prices Rising 20%, Nickel 12%

World Bank projects higher coal and nickel prices, pointing to stronger Indonesia exports amid global energy and demand shifts.
Business Apr 16, 2026 | 12:13 pm

Purbaya Says World Bank May Have Miscalculated Indonesia Growth Outlook

Indonesia receives positive feedback on fiscal strategy as Purbaya addresses World Bank’s growth outlook and highlights strong fundamentals.
Business Apr 9, 2026 | 4:06 pm

JCI Defies Regional Sell-Off, Rises 0.39% Amid Middle East Tensions

JCI rose 0.39% to 7,307, bucking a regional decline as oil prices surged above $97 and geopolitical tensions fueled risk-off sentiment.
Business Apr 8, 2026 | 8:49 pm

World Bank: Middle East Conflict Spillovers Raise Capital Outflow Risks for Indonesia

Indonesia faces rising risks from oil prices, tighter financial conditions, and global uncertainty as Middle East conflict spillovers.
Business Feb 2, 2026 | 6:44 pm

Prabowo, Luhut Downplay JCI Selloff as Indonesia Pushes Market Reforms

Prabowo and Luhut sought to reassure investors after the JCI slump, casting the volatility as a catalyst for market reform.

The Latest


News 3 hours ago

Prabowo's Party Rebukes Hotman Paris for Invoking President in Corruption Case

Gerindra and media leaders criticized Hotman Paris after he invoked President Prabowo while defending a corruption suspect.
News 3 hours ago

Anwar to Address KWAP's Investment Losses in Indonesia's eFishery

Malaysia's prime minister will explain Parliament's questions over KWAP's losses from its investment in Indonesia's eFishery.
News 8 hours ago

Fajar and Fikri Upset World No. 1 Pair to Win Japan Open

The Indonesians prevailed 21-19, 21-17 after producing a composed performance to counter the Koreans' aggressive style of play.
Business 11 hours ago

Indonesia Stocks Add $22.7 Billion in Value as Banks Lead Market Rally

Indonesia's stock market added $22.7 billion in value in a week as banking stocks led a broad-based rally.
News 12 hours ago

KPK Urges Low-Cost Campaign Model After Arresting 15 Regional Leaders in 1.5 Years

Since the start of 2025, the KPK has arrested one governor, one mayor, and 13 regents in separate corruption investigations.
COPYRIGHT © 2026 JAKARTA GLOBE. ALL RIGHTS RESERVED