24 October 2016

Indonesia`s Logistics Performance Still Low: Sri Mulyani

Finance Minister Sri Mulyani Indrawati said that Indonesia’s logistics performance index is far lower than other ASEAN countries. Based on a survey conducted by the World Bank, the country’s logistics performance index dropped to 63^rd out of 160 countries.

“Indonesia is far behind Singapore which occupies the fifth place,” Sri Mulyani said in Jakarta on Wednesday, October 19, 2016.

Other ASEAN countries, such as Malaysia and Thailand, occupy the 32^nd and 45^th places, respectively.

Sri Mulyani revealed that the logistics performance index was measured based on infrastructures, customs, international shipment, logistics quality and competence, as well as tracking and tracing. The survey showed that Indonesia has low scores in two components, namely infrastructures and the export-import administration.

She added that the survey would be useful for Indonesia to take correction steps, particularly in the custom and permit sectors. Among other policies made by the government to improve the logistics performance are the developments of strategic logistics hubs and logistics center.

The Minister suggested that the realization of the policy would depend on several factors, including the development and improvement of infrastructures. Other factors are the growth of industry and logistics centers, and the development of sea, land and air transportation to support the logistics sector. Furthermore, regular flights and effective inland access must be realized, she added.

Sri Mulyani revealed that the government has provided fiscal incentives, such as import duty relief for goods to be used to develop public facilities, in a bid to improve the logistics performance. The government has also developed bonded logistics centers (PLB), special economic zones, and export facilities by taking regional potentials into account.

Source: http://en.tempo.co/read/news/2016/10/19/056813558/Indonesias-Logistics-Performance-Still-Low-Sri-Mulyani