The International Federation of Freight Forwarders Associations (FIATA) has welcomed Indonesia’s issuance of Minister of Finance Regulation (PMK) No. 86 of 2025, saying the measure strengthens the role of the National Single Window Institution (LNSW) and could enhance the country’s logistics competitiveness amid shifting global trade patterns.
The regulation, enacted in December, sets out new organisational and operational arrangements for LNSW and is seen by industry players as a strategic response to growing complexity in global supply chains.
FIATA said the regulation creates room for a more adaptive and innovative LNSW, enabling it to add greater value to Indonesia’s logistics and supply chain ecosystem at a time when businesses are facing heightened uncertainty.
“The changing landscape of global trade and supply chains following tariff disputes is forcing countries to become more competitive,” said Yukki Nugrahawan Hanafi, FIATA Senior Vice President and Chairman of the Board of Trustees of the Indonesian Logistics and Forwarders Association (ALFI).
“Governments around the world are becoming more adaptive and flexible in adjusting their logistics and supply chain strategies, and Indonesia is no exception,” he said.
Yukki said PMK 86/2025 signals the government’s intention to respond to these pressures, particularly through strengthening the mandate of LNSW to harmonise and streamline business processes that support the national logistics system.
One of the regulation’s key provisions is a clearer mandate for the development of a digital-based national logistics system. This includes the establishment of a dedicated Logistics System Development Sub-Directorate tasked with driving digitalisation through data-driven information technology and infrastructure, a mandate that was absent from the previous regulation, PMK No. 78 of 2022.
“Optimising LNSW’s role in business efficiency and digitalisation opens opportunities for a wide range of innovations,” Yukki said, citing faster licensing processes, real-time online cargo tracking, the development of a national digital cargo database, and the use of artificial intelligence for customer services.
He added that digitalisation could help cut operational costs, reduce delays, and improve transparency and collaboration across the logistics sector.
A 2023 survey by consultancy Prospera found that the Indonesia National Single Window (INSW) had helped simplify export-import licensing integration, delivering time efficiencies of 56.4% and cost efficiencies of 97.8%. However, businesses also reported persistent system disruptions that continue to hamper access to permits and documentation.
“Improving business process efficiency and accelerating digitalisation are critical to making INSW more competitive, adaptive and innovative,” Yukki said.
He said PMK 86/2025 provides a strong institutional foundation but stressed that its success will depend on consistent and strategic implementation.
“System reliability, inter-agency coordination and ease of doing business must continue to improve,” Yukki said. “The regulation sets the direction — execution will determine the outcome.”