25 October 2023
Indonesia’s national economy has continued to grow above 5% for seven consecutive quarters and its positive trend is inseparable from the performance of national trade. Head of the Indonesia National Single Window Agency (LNSW), Agus Rofiudin, underlined the importance of trade between countries and FDI (foreign direct investment), as the two serve as an instrument for economic growth. (Source: The Jakarta Post, Tuesday 24 October 2023).
A healthy trade and FDI climate allows the potential for lower logistics costs, shorter transportation times and additional job opportunities as a result of growth in the private sector, he explained.
However, the national logistics performance has not been ideal. As we reported in July in our article Logistics Performance – Only Perception? – the World Bank in the 2023 Logistics Performance Index (LPI) placed Indonesia’s logistics performance at rank 63 with a score of 3.0 – a fall from five years ago. At the same time, national logistics costs are still relatively high at 14.29% of the Gross Domestic Product.
The National Logistics Ecosystem (NLE) is one of the government’s strategies to face logistics performance challenges. The system simplifies government service business processes in the logistics sector – see our article Single Window to Improve Logistics. Digital collaboration on one platform will ensure the smooth flow of export and import goods.
The LNSW implements the NLE in the form of the One Stop Online Service System service, the Single Submission (SSm). Services such as SSm Transporter, SSm Licensing and Single Submission Quarantine Customs have succeeded in reducing business process stages, reducing repetition and replication processes with a single submission, and making it easier to manage government logistics services.
The four basic pillars of NLE are: simplification of government and private service business processes; logistics platform collaboration; ease of payment with a single billing scheme; and spatial planning by implementing policies that encourage efficiency in the movement of goods.
The Indonesian government has prepared the 2024 state budget (APBN) with macro assumptions such as economic growth of 5.2%, inflation of 2.8% and an exchange rate of Rp 15,000 per US dollar.
Jalak Kargo Logistik provides a complete range of logistics services through all major shipping ports and airports in Indonesia. We professionally handle your import and export requirements through our extensive network of offices and agents. Jalak can advise you on all aspects of international and domestic shipments, including customs clearance, trucking and warehousing. Call us if you have project cargo or express courier consignments.
