Indonesian businesses urge government to cut logistics costs

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Indonesian companies are appealing to the government to make them more cost-competitive by helping to reduce logistics costs. With the most expensive logistics costs in Asia at between 24% and 27% of GDP, firms say it stems in part from VAT on fuel for domestic shipping firms. The Indonesia Logistics Association hopes to reduce the costs to between 19% and 22% of GDP next year, to match other Asian countries before the ASEAN Economic Community (AEC) is formed in 2015.