Jakarta. President Joko “Jokowi” Widodo officially inaugurated the commencement of construction on Wednesday for a cutting-edge logistics center poised to become the nation's supply chain hub, located in the future national capital, Nusantara.

The project is a collaborative effort between the state-owned postal company, Pos Indonesia, and the construction consulting firm Bina Karya Persero.

This joint initiative aims to establish an automated supply chain system and logistics hub, providing comprehensive services nationwide.

"We are witnessing heightened activities here in Nusantara, with the movement of people and goods accelerating in anticipation of the opening of new businesses and offices," Jokowi said during the groundbreaking ceremony.

The logistics hub is anticipated to significantly reduce logistical costs and enhance the efficiency of the national supply chain system, he added.

Faisal Rahmad Jumadi, CEO of Pos Indonesia, disclosed earlier that the Nusantara Logistics Hub requires an investment of Rp 350 billion ($22 million). This funding will be allocated for the implementation of advanced robotic sorting machines and an automated delivery system.

Moreover, the logistics hub plans to acquire electric vehicles for land delivery services, aligning with sustainable and eco-friendly practices.

"The national capital Nusantara will serve as a super hub, facilitating trade between the eastern and western regions of Indonesia," Rahmad said.

The initial focus of the logistics hub will be the transportation of logistics for state employees and service members who will be stationed in the new capital once it is ready later this year. 

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