Abstract: Input-output system of production is the dependency system input demand production factor of a company and the dependence of the output to bid on various companies input-output system in changes in demand and supply of the group of companies gave birth to the theory of supply chain how to meet the supply needs of factors production in the group of companies at any time and how to offer production results in a group of upstream and downstream enterprises. Supply chain will be achieved if supported distribution fiisk integrated, logistics system that integrates namely; communications systems, transportation systems, warehousing systems, facilities systems and system iventory. Integrated logistics management and supply chain, the coordination of logistics activities and logistics operations.in order to optimize the effectiveness, efficiency, Economy, Productivity (3EP) on the integration of communication systems, transportation, warehousing, facilities and inventory resources, thus, achieved an optimal supply chain system. To achieve happy of whole person for all Indonesian people, the government needs to build the industrial area of the people that its activities for human resource development, cooperatives, production the peoplesand the preservation of the environment. On the other hand the implementation of the ASEAN free trade system will have an impact on the industry, one of the most perceived impact of competition creates goods and services with high competitiveness, seeing the condition of integrated logistics supply chain system is still bad. Especially the industrial area of the people the ability to produce goods and services at a lower cost can not be achieved, due to the system integrated logistics and supply chain Indonesia is still far from satisfactory. This study will observe the phenomenon of integrated logistics and supply chain. Of high-performance logistics costs in Indonesia with the survey method andstudy of the library as well as trying to formulate and solve the problem of logistics costs minimal. Research is also, useful for the development of a green economy on land and at sea to with the development approach of integrated logistics and supply chain in the industrial area of the people retrieved the competitiveness of the economy of the green of the high, if logistics costs low. Model minimization of prices logistics with integrated logistics and supply chain, It can also be applied to the relationship between the industrial area people or the relationship with consumers.