Inpres 5/2020 Requires Further Commitment to Make Interconnection: SCI

Illustration of logistics ecosystem  


Supply Chain Indonesia (SCI) lauds the issuance of President Decree Inpres No. 5/2020 on national logistics ecosystem, but calls for a clear implementation manual since some regulations issued earlier also talked about similar issues.

As reported earlier President Joko Widodo issued the Inpres on rearrangement of the national logistics system on June 16, 2020. The Inpres means to improve national logistics performance, improve investment climate within the sector, and to improve national economy competitiveness.

The Inpres also remains a guideline for any ministries and institutions both in central and local governments to realize the action plan of 2020-2024. The realization of 2020-2024 action plan requires all parties to integrate commitments. All government institutions – central and local – as well as business players, users, and community have to build collaborative – productive framework.

Dhanang Widijawan, SCI Senior Consultant, noted that empirically, the Inpres needs integration of commitment. According to Dhanang, the design and legal construction of the Inpres, is identic with the regulations set up earlier.

He named the regulations, including Perpres No. 26/2012 on Blue Print of National Logistics System Development (Sislognas), Perpres No. 48/2014 on Revision of Perpres No. 32/2011 on Masterplan of Indonesia Economy Development Expansion and Acceleration (MP3EI) 2011-2025, and Perpres No. 74/2017 on Road Map e-Commerce 2017-2019.

“Those three regulations and the Inpres 5/2020 have similar concern and urgency. They relate to the role of information and communication technology as a significant catalyst or substance in driving the economy activity,” Dhanang said in a written statement to Indonesia Shipping Gazette.

He said the infrastructure of information and technology and the Indonesia National Single Window (INSW) within Sislognas plays as provider of national e-Logistics (e-Lognas).

E-Lognas is an integration of National Single Window (NSW), Customs Advance Trade System (CATS), and National Integrated Logistics and Intermodal Transportation System (NILITS).

The integration will support the ability to trace and tract data interchange, cargo movement, and financial transaction. In addition, the integration will support the process more timely (on time), not costly (cheaper), and more secure. These quality standards are needed for online connectivity (one-stop worldwide connection and communication of trade messages delivery system).

Dhanang further explained that the MP3EI is a strategic guideline for economy expansion and acceleration for 15 years (2011-2025) and as the implementation of national long-term development plan (2005-2025).

The e-Commerce Road Map, he said, would support acceleration and development of national e-commerce system.

Since the Inpres 5/2020 is relating to national logistics ecosystem, it will integrate many sectors and institutions, including sectors and institutions of finance, transportation trade, industry, and INSW. The integration covers the aspects of permits, export/import, logistics, port, cargo distribution, business process, until payment transaction.

However, the Inpres 5/2020, according to Dhanang, needs to prove its effectivity since there are other regulations, including Sislognas, MP3EI, and Roadmap e-Commerce that have similar tasks and functions.

The implementation of this Inpres, according to Danang, needs an interconnection with the function of existing regulations and task of related institutions.

“Interconnection will bolster integration of joint commitment in managing the national logistics ecosystem more efficient,” said Danang.

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