Referring to World Bank survey data in 2018, Indonesia's logistics performance ranking is ranked 46th out of 160 countries and places Indonesia below 4 neighbouring countries in ASEAN. This condition shows that logistics performance in Indonesia is still low, one of which is influenced by high logistics costs which include transportation costs, warehousing, border clearance, payment systems and related functions.Â
With 25% logistics costs to GDP and 14% logistics costs to product prices. Performance targets continue to be driven by the efforts contained in the priority agenda of the Ministry of Transportation in 2020 -- 2024 through 7 logistics hubs to achieve 19% of logistics costs to GDP.
In order to improve the arrangement of the national logistics ecosystem, the President issued Presidential Instruction No. 5/2020 with an action plan of simplification of government service business processes in the logistics sector, collaboration of logistics service systems both internationally and domestically, ease of transactions for state revenue payments and facilitation of payments between logistics business actors, structuring port layout and distribution of goods.
To answer the problems of Indonesia's logistics inefficiency (duplication/repetition, low level of automation, the system which is not yet connected among its stakeholders, inefficiency in distribution of goods, no logistics platform from upstream to downstream), additional activities are needed outside of Presidential Instruction No.5/2020:
- Development of Integrated Container Management System
- Customs Service System Adjustment in the Export Sector
- Standardization of collaboration APIs for all logistics platforms
- Collaboration on regional superior commodity platforms and service systems that have been developed by Ministries/Agencies to design efficient domestic logistics maps
- Preparation of warehousing business processes for the purpose of supervising basic goods and essential goods
- Formulation of a single state levy payment business process for government services in an integrated series
- Discussion on the expansion of the payment business process to elaborate on the need for cheap and easy financing support
- Preparation of design proposals for national port connectivity and provision of an inland consolidation center (Terminal of Goods), with a hub and spoke approach
- Preparation of proposals for the provision of integrated quarantine installations
As of the fourth quarter, 18 of the 20 programs that have been completed by the Ministry of Transportation throughout 2020 are as follow:
- Implementation of Single Submissiom (SSm) and Joint Inspection of Customs and Quarantine Services
- Implementation of Online Delivery Order (DO) redemption services
- Implementation of Online Container Delivery Letter (SP2) Issuance Services
- Development of Truck Ordering Services Through Collaboration Platforms (E-Trucking)
- Implementation of Single Submissiom (SSm) Transportation Services
- Implementation of integrated risk management between K/L to simplify the export and import licensing process
- Implementation of integrated risk management between Ministries/Agencies to simplify the export and import licensing process
- Implementation of one inbound cycle in the NLE platform
NLE is a logistics ecosystem that harmonizes the flow of international goods and documents traffic from the arrival of the designated of transport until the goods arrive at the warehouse, oriented towards cooperation between government and private agencies, through data exchange, process simplification, elimination of repetition and duplication, and is supported by a technology and information platform covering all related logistics processes and linking existing logistics systems.
NLE is expected to reduce logistics costs, share logistics capacity, grow digital economy, increase service transparency, connect inter-ministerial systems, reduce logistics chains, avoid duplication and repetition, and eliminate manual processes.
Supporting export and import activities, the Ministry of Transportation has built SIMLALA application system that will support data related to foreign ship masters and foreign ship entry approvals which will be collaborated with LNSW which later data will be sent to all relevant K/L including into INAPORTNET. Activities will be carried out in 5 ports (Tanjung Priok, Tanjung Perak, Tanjung Emas, Makassar and Belawan).
