Jakarta, Jan 28 (IANS) Indonesia will import 2,500 ships from China to improve the logistics and distribution among ports scattered throughout the archipelago.
The Indonesia Chamber of Commerce and Industry or Kadin will import the ships, Xinhua reported.
Kadin has signed an agreement with China worth $5 billion, said Natsir Mansyur, vice chairman of Kadin's trade, distribution and logistics division.
The ships will be delivered within five years starting 2013.
"Indonesia's logistics costs are quite high due to limited infrastructure and armada, we need to boost the logistics operations," Natsir said.
Indonesia is the world's largest archipelago with 17,000 islands.
A report by the World Bank in 2012 showed Indonesia's position in logistics performance index was at 2.94 in the scale of 5, lagging behind its regional peers such as the Philippines and Vietnam.