Through the Ministry of Finance, the Government of the Republic of Indonesia continues to drive improvements in national logistics performance by implementing the National Logistics Ecosystem (NLE). In fact, NLE will be implemented at airports that serve both international and domestic, not only at seaports.
Logistics business players who are members of the Indonesian Logistics and Forwarders Association (ALFI) continue to encourage concrete steps taken by the Government of Indonesia to provide ease of doing business through the NLE system to boost performance and national logistics performance.
ALFI also encourages NLE as an inclusive, collaborative, and progressive action program in Indonesia.
“Even since 2017, our association (ALFI) has been actively involved in the commitment and continues to encourage the implementation of NLE at the (Sea) Port and Airport,” said Chairman ALFI, Yukki Nugrahawan Hanafi, in his official statement on Sunday (26/2/2023).
Yukki stated the importance of the active role of business actors and stakeholders in the success of NLE because the government needs help in realizing the arrangement of the National Logistics Ecosystem.
Therefore, ALFI encourages business actors/national logistics companies and their members to use NLE services.
“So far, we feel that the perception of service users assesses the efficiency of logistics services through the NLE program. The breakthrough is quite significant and creates integration, resulting in efficiency. The hope is that it will be even more massive in the future, including the use of facilities at NLE by stakeholders in the private sector that also need to be encouraged,” said Yukki.
According to him, implementing NLE aims to improve national logistics performance, improve the investment climate, and increase competitiveness. The logistics activity is one of the driving wheels of the Indonesian economy.
Implementing the National Logistic Ecosystem (NLE) is also believed to improve Supply Chain management so that the logistics process can produce more efficient costs and a faster production cycle. In principle, national logistics business actors support the NLE program to organize all Supply Chain activities nationally.
Yukki said NLE is a logistics ecosystem that harmonizes the flow of international goods and document traffic from the arrival of the means of transport until the goods arrive at the warehouse. NLE also introduces a digital collaboration concept that allows logistics entities to connect with governments and other logistics platforms. In addition, NLE enriches the role of the Indonesia national single window (INSW).
“That’s why ALFI appreciates and continues to encourage NLE to be implemented not only at the (sea) port but also at the airport. In fact, from the start, we urged this NLE to be implemented at all airports and seaports in stages until 2024 following the Presidential Decree and entered into the logistics ecosystem,” explained Yukki.
Meanwhile, the Chairman of DPW ALFI DKI Jakarta, Adil Karim, also expressed his full support for implementing NLE at Ports and Airports.
“We will continue to socialize the implementation of the NLE to its member companies whose activities are at Tanjung Priok port in Jakarta and Soekarno Hatta Airport,” said Adil.
Logistics Efficiency
Previously, the Director of Customs and Excise Information, also the Chief Executive of the NLE Development Technical Team Rudy Rahmaddi, said that up to now, NLE has been implemented in 14 ports.
“In the future, the implementation of NLE will be expanded to seaports and airports domestically and internationally,” he said.
In 2022, NLE worked with an independent survey team from Prospera to get an initial picture of NLE’s effectiveness.
In general, the perception of service users assesses the efficiency of the NLE program, particularly the SSm Licensing, SSm QC, Delivery Order, Online Container Delivery Letter, Autogate, and Trucking services. Based on the Prospera survey report, time and cost efficiency range from 24.6 percent to 49.5 percent.
Based on data from the National Single Window Agency (LNSW), the estimated reduction in stockpiling costs and withdrawal fees for behandle or inspection starting from the implementation of the Quarantine Customs SSm in June 2020 to December 2022 is IDR 191.32 billion or 33.48 percent. In addition, the average time efficiency is 22.37 percent.
In the 2023-2024 period, NLE will focus on three aspects:
- Accelerating the completion of the target of the Presidential Instruction (Inpres) action plan (Inpres) No. 5 of 2020.
- Room for improvement.
- Expanding the port target for NLE implementation.
To support the smooth implementation of NLE, the government continues to solicit input from all relevant elements from the government, the private sector, and logistics players.
NLE is also believed to boost national logistics performance while targeting logistics cost efficiency in the 60-80% range. This target is because the current NLE efficiency is around 50 percent, so more is needed for Indonesia, which is geographically challenging because it is an archipelago.
