Transport & Logistics
Deputy Head for Custom and ExciseJop PatinggiGeneral Manager - a. hartrodt
Head of Working GroupJay Aryaputra SinggihChairman & CEO - Bumi Laut Group
About the Group
The government of Indonesia has continued its efforts to improve the transportation and logistics sector throughout 2017 by the development of both hard infrastructure as well as soft infrastructure of regulatory frameworks. In hard infrastructure, ports, airports and railways, as well as waterways are continuously being developed. There are 45 bonded logistics centres in 72 locations have been constructed to make Indonesia the logistics hub of the region. While in regulatory frameworks, massive deregulation has been conducted with the aim to increase connectivity and further reduce logistics costs.
In recent years foreign ownership requirements in a number of transport and logistics sub-sectors such as freight forwarding and warehousing services have been relaxed. Ownership requirements for other sub-sectors are also being eased to attract investment in an effort to enhance competitiveness. These sub-sectors include Sea Transportation, Shipping Agencies, Stevedoring and Seaports. In addition, regulatory frameworks on various operational aspects are continuously being evaluated and reassessed for further improvement in order to smoothen the flow of goods and people in and out of the country.
The Transport and Logistics Working Group comprises some of the world’s leading companies which have been operating in Indonesia for several decades in the areas of transportation, logistics, freight forwarding, express-delivery services, shipping lines, airlines and other related sub-sectors.
The Working Group promotes an open and constructive dialogue with policymakers within the Indonesian government, as well as with relevant stakeholders and associations operating in the Transportation and Logistics sector, in order to continuously explore possibilities for further improvement within these various sectors. The ultimate aim is to enhance Indonesia’s competitiveness as an investment destination and it is in this context that we would like to propose a number of measures which we believe should be prioritised.
During 2017 the Working Group held 22 internal meetings and 12 policy meetings with multiple stakeholders, and 6 official Recommendation Letters were sent to the government offering recommendations gathered from member companies. The group also contributed to a sectoral seminar on Customs and Cross-Border Trade Facilitation at the EU-Indonesia Business Dialogue (EIBD) conference 2017. In addition, the group managed to organise a joint seminar with the Indonesian Logistics and Forwarders Association (ALFI) and the Indonesian Association of Express Delivery, Postal, and Logistics (ASPERINDO), with whom EuroCham Indonesia has established MoUs to work closely together, to create a constructive dialogue on the deregulation package in the logistics sector with various policy makers from the government.
Ongoing progress was being made by the group especially dialogues on taxation for the Logistics sectors with stakeholders and policy makers, as well as by drafting of various customs regulations, such as regarding inward cargo manifests and import duties for FTA.
Topics currently monitored by the Working Group, among other are:
- Foreign investment regime.
- Air cargo security regime.
- Value-added tax and income tax in the Logistics sector.
- Customs regulations.
- Deregulation packages.