Photo by Cabinet Secretary

JAKARTA (TheInsiderStories) – The Indonesian government has launched Business Development and Competitiveness of the National Logistic Service Provider to expedite the development of national logistic system and competitiveness, said senior official on Thursday.

Currently, the share of logistics costs accounted for about 40 percent of the retail price of goods, and the biggest component of the logistics, that 72 percent is the cost of transportation.

“The new policy focused on the improvement of the National Logistics System to accelerate the Enterprise Development and Competitiveness of the National Logistics Service Provider,” Coordinating Minister for Economic Affairs (CMEA) Darmin Nasution said in a press conference of the 15th economic policy package at the Presidential Office.

He continued, the government will take a number of steps to implement the new economic policy package.

First, providing opportunities Enhancing the Role and Business Scale, with policies that provide business opportunities for transport and national insurance in transporting goods exports and imports, as well as increased efforts shipyard / ship maintenance in the country.

Second, ease Trying and Expenses Cost Reduction for National Logistics Service Provider Business, with policies, among others: (i) reduce the operating costs of transport services; (Ii) eliminate the licensing requirements of freight; (Iii) ease the cost of port business investment; (Iv) standardization of document flow of goods in the country; (V) develop a regional distribution center; (Vi) ease of procurement of certain vessels; and (vii) guarantee cost recovery mechanism of container; etc.

Third, institutional Strengthening and Authority of Indonesia National Single Window (INSW), with the policy, among others: (i) provide INSW independence of the function to be able to develop an electronic system monitoring services and import-export, customs, and harbor throughout Indonesia; (Ii) to supervise the import-export activities of potentially illegal trading; (Iii) establish a single risk management for the smooth flow of goods and reduced dwelling time; and (1v) as the competent authority in the integration of the ASEAN Single Window and securing the implementation of the FTA.

Fourth, simplifying trade system to support the smooth flow of goods, by forming a team of Export-Import trade system in order to reduce LARTAS from 49 percent to about 19 percent or close to the average non-tariff barrier ASEAN countries amounted to 17 percent.

From the regulatory side, Darmin stressed it, there are 18 policies that have been made like :

a. Eliminate and publishes various ministerial regulations (12 candies, 2 Circular, 1 Menko letter) to encourage the expansion of the business and enhance the competitiveness of the national logistics service providers in building and developing the National Logistics System.

b. Revising 3 Perpres united into one regulation concerning INSW to accelerate the development and application of automation services export-import licensing, customs, and Ports through institutional strengthening and authority of Indonesia National Single Window (INSW)

c. Issued 1 PI, on Strengthening the Role of the Port Authority in managing the flow of goods dim port.

d. Issued 1 Decision CMEA Tim Commerce Export Administration I

He added, to implement the policy package, a number of regulations will be scrapped and issued, including 12 ministerial regulations, two circulars, and one regulation of the coordinating minister for economy to allow for the expansion of business and the improvement of competitiveness on the part of national logistics service providers.

In addition, three presidential regulations will be revised and integrated into one presidential regulation concerning INSW to expedite the development and application of automated licensing services in the export and import, customs, and port fields.

(Written by Linda Silaen, Email : linda.silaen@theinsiderstories.com)

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