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Kamis, 24 September 2020 19:23

Indonesian Govt. Applies National Logistic Ecosystem to Cut Logistics Cost Agressively

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Indonesian Government is reforming the logistics sector by developing a National Logistic Ecosystem (NLE) by involving all relevant ministries / institutions, banking system, and logistics business players.

Finance Minister Sri Mulyani Indrawati said, NLE is expected to reduce logistics costs, which currently reach 23.5% of GDP to 17%. She acknowledged that Indonesia's logistical efficiency was among the lowest in ASEAN.

"This decrease of about 5% to 6% will mainly be contributed from the entire upstream to downstream process, especially in connecting the transportation sectors and simplifying the process, eliminating repetition, and providing convenience for business actors," she said in a joint press conference on NLE Arrangement, Thursday (24/9).

Sri Mulyani explained, NLE covers all processes from upstream to downstream, entering overseas processes, starting from outbound to inbound, from processing goods entering warehouse, loading them on trucks, then clearance (completing administrative documents and taxes in the context of exporting / importing goods).

"The clearance process from the government, such as customs, quarantine, BPOM, and others, leaves the port, goes into shipping, then arrives, and returns clearance, trucking, to the destination warehouse," she explained.

Until September 2020, said Sri Mulyani, NLE had implemented a single submission, inspection and profile between Customs and Quarantine Agency of the Ministry of Agriculture.

"This has become a single submission of inspection and the profiling is the same. So there is no need to go (to) Customs, Quarantine (no need to work twice)," explained the Minister.

NLE also integrates Ship to Ship (STS) licensing services, Floating Storage Unit (FSU), business licensing and permits for the entry of consumer goods in the Batam Special Zone.

In addition, delivery order (DO) redemption and Container Release Approval (SP2) have been done online, so there is no need for physical documents. Likewise, trucking orders and online payments to Auto-Gate expansion at Tanjung Priok Port, including in Batam.

She explained, DO and SP2 online can now be done 7x24 hours or non-stop from the previous manual with limited service hours Monday-Friday from 09.00 to 15.00. Cost efficiency of IDR 402 billion per year and time saved by entrepreneurs can be up to 91%.

The efficiency of e-trucking can save IDR 975 billion per year because of the transparency of online ordering, and delivery time can be shortened by up to 50%.

From inspections such as submission of clearance documents, inspection of goods at Customs and Excise-Quarantine Agency which are now carried out by single submission and joint inspection, annual cost efficiency is IDR 85 billion and time savings of 35% -56%.

From the side of the carrier when the departure / arrival of ships and loading and unloading of goods, now a single submission can be done so that it can save IDR 60 billion per year with a time saving of 74%.

Previously, documents were duplicated by up to 7 agencies, including Customs, Immigration, Ministry of Transportation, BKBM, and Terminal Operators. (hlz/hlz)