World Bank's Logistics Performance Index: Indonesia Falls to 63rd
Despite the Indonesian government being eager to push for infrastructure development, Southeast Asia's largest economy fell 10 positions in the World Bank's 2016 Logistics Performance Index (LPI), from 53rd position in 2014 to 63rd position this year. The LPI is determined through a worldwide survey involving operators on the ground (global freight forwarders and express carriers) that provide feedback on the logistics in nations where they operate and those with which they trade. High logistics costs are a problem for any economy as it makes products and services less competitive, while foreigners will think twice before investing in the country.