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Rabu, 24 Juni 2020 18:26

National Shipping Operators Welcome Inpres No. 5/2020

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National shipping operators appreciate the issuance of Presidential Order (Inpres) No. 5/2020 concerning National Logistics Ecosystem Arrangement, since it will improve national logistics competitiveness.

Chairperson of Indonesian National Shipowners' Association (INSA) Sugiman Layanto said, implementation of Inpres No. 5/2020 would have a positive impact on national logistics activities, both in terms of cost, quality, speed and accuracy of service that business operators have been complaining about.

"The presidential decree was issued to improve national logistics performance, investment climate, and national economy competitiveness. Of course we welcome it well," Sugiman said, Wednesday (6/24).

He considered, Inpres No. 5/2020 will encourage integration of logistical support activities involving many sectors, including finance, transportation, trade, and industry related to INSW (Indonesia National Single Windows).

Sugiman noted, logistical costs in Indonesia today are among the most expensive in Asia region, reaching 24 percent of Gross Domestic Product (GDP) or equivalent to Rp 3,560 trillion.

The high cost of logistics imposes a burden on the transportation of goods in Indonesia since logistics costs are the largest component of goods transportation.

That condition effects ease of doing business (EoDB) in this country. In 2018, EoDB Indonesia was ranked 46th, far below Singapore (7), China (26), Thailand (32), Vietnam (39), Malaysia (41) and India (44). (ams) (hlz/hlz)