Indonesia is the world’s largest archipelagic nation, with more than 17,000 islands stretching from Sabang to Merauke. While this geographic diversity is one of the country’s greatest strengths, it also presents a significant logistical challenge—especially in distributing goods from western regions like Jakarta to the eastern frontier, Papua. The gap in logistics costs between these two ends of the country remains a serious issue that directly impacts product prices and the purchasing power of people in Papua.
Studies and government data show that Indonesia’s logistics costs account for around 20–25% of its GDP—far higher than developed countries, which average just 8–12%. More specifically, there is a stark regional disparity. The cost of shipping a single container from Jakarta to Surabaya can be 4–5 times cheaper than shipping the same container from Jakarta to Jayapura.
Several key factors contribute to this issue:
These challenges lead to significant price disparities for basic goods in Papua. For example, the price of rice, sugar, or construction materials in Jayapura can be 2–3 times higher than in Jakarta. Electronics or vehicles may cost 50–100% more.
This price inflation directly reduces the purchasing power of Papuans, whose average income is generally lower than the national average. It deepens economic inequality and strengthens perceptions of unequal development between regions.
Bridging the logistics cost gap requires a systemic approach—from building regional feeder ports and digitizing supply chains, to enhancing inter-island shipping capacity. While the government’s Sea Toll Program is a step in the right direction, active involvement from private logistics and shipping companies is essential.
As one of Indonesia’s leading domestic shipping and logistics providers, PT SPIL (Salam Pacific Indonesia Lines) offers integrated logistics solutions that reach more than 40 ports across the archipelago, including key eastern hubs like Jayapura, Timika, Merauke, and Sorong. Through services such as SPIL Prime for priority shipments and the mySPIL digital platform for full shipment visibility, SPIL plays a key role in reducing the national logistics disparity.
SPIL has also invested in modern infrastructure, integrated warehousing, multimodal connectivity, and technology-driven systems that enable customers—whether in Jakarta or Papua—to enjoy a transparent, efficient, and cost-effective shipping experience.
As a truly Indonesian company that understands the unique geography of its homeland, SPIL doesn’t just transport goods—it helps bridge hopes and strengthen national connectivity.
