Gov’t Issues Regulation on National Logistics Ecosystem Management
Screenshot of Presidential Instruction (Inpres) Number 5 of 2020 on the National Logistics Ecosystem Management.
President Joko “Jokowi” Widodo on 16 June, 2020 signed Presidential Instruction (Inpres) Number 5 of 2020 on the National Logistics Ecosystem Management. The Instruction aims to improve performance of national logistics, investment climate, and competitiveness of the national economy.
Link: (https://jdih.setkab.go.id/PUUdoc/176124/Inpres_Nomor_5_Tahun_2020.pdf)
Through the Presidential Instruction, the President instructs Cabinet Ministers, Cabinet Secretary, Chief of the Indonesian National Police, Heads of Non-Ministerial Government Agencies; and Governors to:
“Take necessary measures in accordance with respective duties, functions and authorities in a coordinated and integrated manner to implement the national logistics ecosystem management,” the FIRST dictum of the Instruction reads.
The measures referred to in the FIRST dictum shall be based on the Action Plan of National Logistics Ecosystem Management for 2020-2024 stipulated in the Appendix which is inseparable from the Presidential Instruction.
In the implementation of the FIRST dictum and the SECOND dictum of the Presidential Instruction, the President instructs Coordinating Minister for Economic Affairs:
- to coordinate the preparation of general direction and policies for managing the national logistics ecosystem; and
- to coordinate the determination of measures to solve problems in the implementation of the Action Plan of the National Logistics Ecosystem Management for 2020-2024.
The President also instructs Minister of Finance to be responsible for implementing the national logistics ecosystem management, through:
- simplification of government service business processes in logistics by making use of information technology to eliminate repetition and duplication;
- collaboration of international and domestic logistics service systems covering logistics stakeholders in the public and private sectors; and
- ease of payment transactions for state revenues and facilitation of payments between business operators in the logistics process.
“In the implementation of the national logistics ecosystem management as referred to in the FOURTH dictum, Minister of Finance shall coordinate, synergize, and synchronize with the Corruption Eradication Commission,” the FIFTH dictum states.
In order to provide support for the implementation of the national logistics ecosystem management as referred to in the FOURTH Dictum of the Presidential Instruction, the President instructs:
- Minister of Transportation to integrate export, import and logistics licensing systems and services within the Ministry of Transportation with the national logistics ecosystem system through the Indonesia National Single Window (INSW); and to manage port spatial planning and goods distribution channels;
- Minister of Trade to integrate export and import licensing system at the Ministry of Trade with the national logistics ecosystem system through the Indonesia National Single Window (INSW); and to integrate business processes of inter-island trade reporting with business processes of departure and arrival of transport facilities in the national logistics ecosystem system through the Indonesia National Single Window (INSW);
- Minister of Industry to simplify business processes to integrate the system of filing requirements for export and import licensing at Ministry of Industry with the national logistics ecosystem system through the Indonesia National Single Window (INSW);
- Minister of Home Affairs to conduct guidance and supervision to regional governments in implementing the Action Plan of National Logistics Ecosystem Management for 2020-2024.
- Governors to take necessary measures to support the implementation of the Action Plan of National Logistics Ecosystem Management for 2020-2024.
“In the context of implementing the Presidential Instruction, Minister of Finance shall coordinate with the Governor of Bank Indonesia in the programs related to the authority of Bank Indonesia; and involve the participation of business sector and/or other parties deemed necessary,” the SEVENTH dictum of the Instruction reads.
Cabinet Secretary, in accordance with the EIGHTH Dictum of the Instruction, shall supervise the implementation of the Presidential Instruction and reports it to the President.
”The implementation of the Action Plan of the National Logistics Ecosystem Management for 2020-2024 is funded by State Budget in the Ministries/Agencies, Regional Budget, and/or other legal and non-binding sources in accordance with provisions of Laws and Regulations,” the NINTH dictum of the Instruction states.
In accordance with the TENTH dictum, all relevant parties shall implement the Presidential Instruction very responsibly.
“The Presidential Instruction shall come into force as of the date of its issuance,” the Presidential Instruction states. (EN)
Translated by: Ridwan Ibadurrohman
Reviewed by: Mia Medyana
