ALFI Lauds Inpres 5/2020 Issuance, Hopes It to Encourage Logistics Business into an Ecosystem

Indonesia’s biggest logistics and forwarders community – the Indonesia logistics and forwarders’ Association (ALFI/ILFA) lauds the issuance of president decree Inpres 5/2020 as it proves the government’s response to the current situation within the industry, saying the Inpres will encourage the logistics business into an ecosystem.

The Inpres on rearrangement of the national logistics system issued on June 16, 2020, remains the government’ seriousness for improving the sector, in responding any innovation and transformation within the sector, the digitalization in particular.

This Inpres gives guidelines on simplifying the goods inspecting process, streamlining logistics services through export import collaborative system among related ministries and institutions, and adopting an integrated risk management system.

In addition, the Inpres also pushes to improve logistics efficiency by creating collaborative system of transportation, shipping, port, warehousing, container depot, and to simplify process of payment of to state income as well as to synchronize container railway lines.

“We appreciate this Inpres issuance very much. This proves the government good will and seriousness in tackling the problems of infrastructure and connectivity throughout the country and in responding the business innovation and transformation,” ALFI Chairman Yukki Nugrahawan Hanafi said in a statement released to Indonesia Shipping Gazette, June 18.

Referring the points within the Inpres, Yukki explained that this Inpres will encourage the logistics business into an ecosystem. “I am sure the spirit of this Inpres is toward a National Logistic Ecosystem (NLE),” he said, adding that any logistics business players were going digital.

“The trend of digitalization is going massive, especially during the pandemic covid-19,” he said.

NLE, according to Yukki, would make business more efficient and transparent. “No doubt, NLE will reduce our high logistics costs.”

NLE, he said, would place all logistics services, both of import and export, into a single platform. Moreover, some government bodies have made it on stage. As reported earlier, Ministry of Finance, was developing the National Logistics Ecosystem (NLE). NLE will unite logistics business players, both export and import, in a single platform in which they can do information exchange under the concept of API (Application Programming Interface).

“Actually, developing a smart logistics today is not a big deal. The government likewise has actually initiated an NLE concept for flow of goods and documents,” he added.

ALFI is now designing the digitalization of smart logistics, a platform collaboration displayed at ALFI website (ilfa.or.id) and is connected with digital platform of Digico (digico.id).

This platform collaboration has been developed in phases. Now, some modules that have been ready include import and export module as well as track and trace covering 150 countries. And next, this platform collaboration will include the total supply chain and to last mile delivery.

For the initial step, the track and trace modules cover the transportation of sea, land, and air modes. ALFI will soon include the track and trace modules to IoT, warehousing, depo, cross border data exchange, and to banks and insurance to support trade financing.

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