Supply Chain Indonesia (SCI) has outlined three possible institutional models to improve the governance and efficiency of Indonesia’s logistics system—an issue seen as increasingly urgent as the country seeks stronger economic growth. The proposals come from SCI’s study, “Mapping the National Logistics Institution 2025–2030,” which aims to support long-term reforms in logistics governance.
According to SCI Founder and CEO Setijadi, the study highlights the need to refine Indonesia’s current logistics architecture so cross-sector policies can be implemented more effectively. He noted that SCI’s findings complement earlier recommendations from various stakeholders on the need for a more cohesive logistics institution.
Indonesia’s logistics management is currently fragmented. Ministries tend to run their own logistics programs without strong cross-sector coordination. SCI argues that a centralized coordinating body would help ensure consistent policy implementation from the national to the regional level.
The study presents three structural options:
1. Inter-Coordinating Ministries Model
This model strengthens coordination among the existing Coordinating Ministries—Economics, Food, and Infrastructure & Regional Development. It does not require the creation of a new institution, but its effectiveness would depend heavily on political commitment and well-defined coordination mechanisms.
2. National Logistics Agency (Balognas)
This proposal involves establishing a new agency under the President. The agency would be responsible for integrating data, evaluation, and policy related to the national logistics system. Balognas would function as a central “clearing house” for logistics policies and serve as a hub linking coordinating ministries and technical ministries or agencies.
3. Ministry of Logistics
As a long-term alternative, SCI suggests the possibility of creating a dedicated Ministry of Logistics to consolidate strategic national logistics and supply chain functions. However, this would require significant structural and regulatory changes.
Balognas Viewed as the Most Feasible Option
While all three options remain on the table, SCI considers the National Logistics Agency the most practical and strategic choice for the next five years.
With a mandate directly from the President, Balognas would be positioned to strengthen coordination among coordinating ministries, technical ministries, and regional governments. The agency would not assume technical roles but would focus on synchronizing planning and policy formulation across the logistics system.
Setijadi also noted that the Indonesian House of Representatives (DPR) has included a draft Logistics Bill in the 2025–2029 National Legislative Program (Prolegnas).
Strategic laws typically mandate the formation of permanent institutions to ensure proper implementation. For that reason, SCI argues that the upcoming Logistics Law should clearly stipulate the creation of a permanent logistics institution with coordinating, regulatory, and evaluative authority.
