Single Window to Improve Logistics

14 June 2023.

Finance Minister Sri Mulyani Indrawati has this week called for synergy between ministries and institutions for the development of the Indonesia National Single Window (INSW) system to support the progress of Indonesia’s logistics sector.

Indonesia is banking on this national single window to improve its Logistics Performance Index (LPI) score. INSW is the country’s customs clearance system that integrates information or documents related to export-import

It is a system designed for the synchronous processing of data and information, as well as single decision-making for customs clearance and release of cargo.

The INSW also integrates information on airports and seaports. Sri Mulyani called for better cooperation between all parties for a more seamless process. She stated that Indonesia needs to improve its LPI score and the logistics costs that are still lagging behind other Asian and developing countries.

The World Bank has launched LPI: a benchmarking system that scores a country’s trade logistics performance on a 5-point scale.

In 2023, Indonesia ranked 63rd out of 139 countries across the globe after getting a 3 in LPI score. Indonesia’s scores on the respective LPI parameters are as follows: customs (2.8), infrastructure (2.9), international shipments (3), logistics competence (2.9), tracking and tracing (3), as well as timeliness (3.3).

Based upon the World Bank’s assessment, the ranking of Indonesia’s logistics sector has thus declined by 17 – from 46th place in 2018 to 63rd this year.

In the interests of improving its performance, the synergy of ministries and institutions – as called for by Sri Mulyani – has a role to play in data integration, so that affected businesses will not need to input data repeatedly.

Such a simplification of services is expected to speed up all related processes. Currently, the ministry overseeing the INSW is working to improve the system so that it can be used by all businesses.

Read our related article, Clearing Cargo at Indonesian Customs.

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