JAKARTA (TheInsiderStories) – Indonesia government is setting up e-logistic called “Inaport Net” to help improve goods distribution in the country, connecting at least 16 major ports in in the country, said one senior government official said. The e-logistic system is scheduled to be launched in June this year.
“All ports services provided to the incoming and outgoing vessels will be done through electronic services and integrated with National Single Window,” Bambang S. Erwan, spokesperson of the Transportation Ministry said last Friday.
Coordinating Minister for the Economic Affairs Darmin Nasutio added that e-commerce business could be more efficient by the improvement of the country’s logistics system from rural areas to urban centers. Besides setting up the e-logistic system, the government will also produce a roadmap for e-commerce business in Indonesia.
“There are still many things to work out - payment methods, the streamlining of regulations, and other technical issues that need to be sorted out by the Ministry of Communications and Information. We are also waiting for a Presidential Decree to help pave our way to achieve our goals,” said Darmin.
The Head of the National Development and Planning Agency Sofyan Djalil added that the government will form Program Management Office (PMO) under Darmin’s office supervision.
Furthermore, Sofyan explained that all ministries and institutions involved in the PMO need to ensure that the regulatory environment needs to be crafted in such a way to minimize red tapes and thus improve the ease of doing business.
The PMO will coordinate around 32 initiatives to be undertaken by the government in order to develop digital economy. According to Rudiantara, the Communication and Information Technology Minister, all the initiatives should be done by mid January 2017 with an aim to reach US$130 billion worth of e-commerce business by 2020.
New Negative Investment (DNI) List
Rudiantara stated that the government aims to launch roadmap of e-commerce business in February to boost foreign direct investment entering the country. The government also plans to announce the revised Negative Investment List (DNI) at the end of this month or in February.
DNI regulates what sectors are opened, restricted or partly opened to foreign investment. The government has in part reviewed the DNI every two years, however, the Joko Widodo government decided to review the DNI every year as a move to boost foreign direct investment in the country.
The revision of the DNI is being coordinated by the National Investment Coordinating Board (BKPM). The agency has been holding meetings with government ministries and institutions as well as private sector to seek inputs on the new DNI.
According to him, the government considers allowing foreign investors to own up to 100% shares marketplace business with assets over than Rp10 billion but closed the e-commerce business on small medium class with assets under Rp10 billion.
He also wants the tax system applied to e-commerce players to be simple as many e-commerce are still their early growth stage.
While Finance Minister Bambang Brodjonegoro said that the government will also ask major e-commerce players to pay tax higher than the small and medium class e-commerce players.