Assessing Total Logistics Costs: Case Study During the Execution of Cement Projects in Indonesia

Abstract

Logistics infrastructure is widely known as the most significant economics hurdle in Indonesia over recent decades due to the limited logistics infrastructure. This study aims to examine total logistics costs during the execution of several cement projects in Indonesia within the period 2010-2018. The panel data method of eight cement projects in Indonesia has been developed, analysed, and measured. Due to the limited logistics infrastructures, the logistics cost rose to 27.129% of the Gross National Product (GNP) in Indonesia. Further, this paper provides suggestions for Indonesia's government to develop logistics infrastructure.