Former Chairman of Indonesia’s Logistics Association (ALI) Zaldy Ilham Masita said that Indonesia already has the instrument to repair its logistics sector with Presidential Regulation No. 26 of 2012 on the Blueprint for National Logistics System Development. “But it has not been implemented so far,” said Zaldy when called on Friday, July 21, 2023.
Although, Zaldy added, what Indonesia needs is not a Logistics Law or a Logistics Board. The top 20 countries on the Logistics Performance Index (LPI) don’t have both. “There are many who propose (Logistics Law and Logistics Board) as a solution, but I see it as futile. The National Logistics System needs to be included in the national middle-range development plan to tie every related department,” he said.
Zaldy’s statement was in response to the plummeting rank of Indonesia’s LPI from 46 in 2018 to 63. According to the World Bank, the rank was the result of an assessment of 6 dimensions; customs, infrastructure, international shipments, logistics competence, and quality, timelines, and tracking & tracing.
Meanwhile, the CEO of Supply Chain Indonesia (SCI) Setiaji proposed an amendment to the Logistics Presidential Regulation. “It has been a long time coming. The regulation was issued 11 years ago, so a revision is needed to adjust it to the various changes and development in business and technology at the domestic, regional, and global levels,” he said.
The technological development, according to Setiaji, are robotics and automation, artificial intelligence, the Internet of things, big data analytics, blockchain, and cloud logistics. Meanwhile, business development consisted of sharing economy, smart containerization, tube logistics, logistics marketplaces, and omnichannel logistics. Setiaji said that the revision shall synergize with the most recent program from the related ministries, such as Trade Ministry, Industry Ministry, Agriculture Ministry, Marine and Fisheries Ministry, and Transportation Ministry. “Since logistics is a supporting sector in economic development,” Setiaji remarked.
SCI also recommended that the government established a National Logistics Board. Even if the government is currently reducing the number of agencies, SCI assessed that a permanent logistics agency is necessary to coordinate the planning, implementation, and supervision of the improvement and development of the multisector logistics system. The agency shall be authorized to ensure the action plan runs smoothly; to arrange consistent policies, regulations, and procedures. It is also authorized to ensure law enforcement.
Setiaji also explained that the National Logistics System should be placed in a higher hierarchic arrangement than a Presidential Regulation to guarantee effective implementation. “Issuing a Logistics Law could be a middle-range target,” Setiaji concluded.
Source : Tempo.co