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SCI Backs LNSW Restructuring, Urges Stronger Logistics Mandate

Supply Chain Indonesia (SCI) welcomed the Ministry of Finance’s decision to restructure the National Single Window Institution (LNSW), saying the move could strengthen Indonesia’s national logistics system if accompanied by a clearer coordinating mandate.

Founder and Chief Executive Officer of SCI, Setijadi, said the reorganisation under Minister of Finance Regulation (PMK) No. 86 of 2025 reflects the government’s growing recognition that the National Single Window is no longer merely a tool for export-import facilitation.

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The regulation, issued by Finance Minister Purbaya Yudhi Sadewa on Dec. 8 and promulgated on Dec. 18, revokes the previous PMK No. 78/PMK.01/2022 and reshapes LNSW’s organisational structure and functions.

“LNSW  has evolved into a strategic instrument for strengthening the national logistics system (SISLOGNAS) and supporting digital transformation in government services,” Setijadi said.

SCI said the policy was timely given Indonesia’s logistics challenges at the global level. According to the World Bank’s 2023 Logistics Performance Index (LPI), Indonesia ranked 63rd out of 139 countries with a score of 3.0, trailing key ASEAN peers including Singapore, Malaysia, Thailand, the Philippines and Vietnam.

Indonesia’s weaker LPI components include customs performance, infrastructure quality, and logistics competence, each scoring below 3.0.

SCI views the shift in LNSW’s business process approach — from trade-flow-based to service-function-based — as a significant and progressive step. The establishment of a dedicated Logistics Business Process Efficiency Subdirectorate, separated from facilities and licensing, signals that logistics efficiency is beginning to be treated as a standalone strategic priority.

“This strengthens LNSW’s transformation from a trade facilitation platform into a logistics facilitation platform, which is essential for improving national logistics performance,” Setijadi said.

The expansion of LNSW’s Information Technology Directorate, including the separation of logistics system development from licensing functions, was also seen as critical to addressing long-standing challenges in digital logistics integration. A stronger national logistics system architecture is considered a prerequisite for improvements in customs clearance, service reliability and delivery timeliness.

SCI also welcomed the creation of internal compliance, legal, and communications units within LNSW, saying stronger internal governance would help ensure policy consistency, legal certainty and public trust among businesses and international trading partners.

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However, SCI cautioned that organisational restructuring alone would not be sufficient. It called for a clearer mandate for LNSW to act as a coordinator and clearinghouse for logistics processes and data across ministries and agencies.