Indonesia reforms logistics ecosystem to curb cost

Source: Xinhua| 2020-09-24 22:33:31|Editor: huaxia

JAKARTA, Sept. 24 (Xinhua) -- The Indonesian government is developing a reformed national logistics ecosystem (NLE) by easing and simplifying the upstream to downstream process, which was expected to lower the logistics cost from 23.5 percent to 17 percent of the gross domestic product (GDP).

With the reforms, the logistics sector would increase not only in efficiency but also in its contribution to improving the competitive edge of the whole national economics, Finance Minister Sri Mulyani Indrawati told a virtual press conference here Thursday.

The management of the national logistics ecosystem constitutes the streamlined and simplified business process through integrated checks in the single submission, port services and licensing process, she said.

The business process management involves several state institutions and ministries including the Finance Ministry, the Transportation Ministry, the Trade Ministry, the Agriculture Ministry, the Industry Ministry, and the Maritime and Fisheries Ministry.

Indrawati said that the logistics cost in Indonesia is higher than those in some other Southeast Asian countries including Singapore and Malaysia.

The previous logistics performance when the government implemented the ease of doing business has yet to show a significant result, and thus the system should be reformed, she said.

The minister further said Indonesia's logistics system has so far been complicated although the government has had the national single window (NSW) system which integrated 16 ministries and institutions but it did not include an ecosystem to ease business communities.

The NSW would be part of the national logistics ecosystem (NLE) which collaborates the existing logistics system to avoid duplication and push efficiency, she said. Enditem

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