Economic Policy Task Force to Focus on Prolonged Dwelling Times at Various Major Ports

 
Marcell Sihombing, Fathan Qorib/ANT
 

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Coordinating Minister for Economic Affairs, Darmin Nasution. Photo by: SGP.

 

Last Wednesday, President Joko Widodo’s Economic Policy Task Force organized a coordination meeting in order to review the progress that is being made by its First to Fourth Working Groups. Based on the results of this review, the Task Force came to a general agreement that the First to Thirteenth Economic Policy Packages issued by the government would ultimately have a significant contribution to make at all levels of Indonesian society.
 
However, the Task Force also highlighted two major issues that it believes are in need of immediate attention. The first issue relates to the persistence of prolonged dwelling times across the country, while a second problem relates to the issuance of new ministry-level regulations, which end up working against the government’s stated policy objectives of deregulation and the cutting of red tape.
 
Darmin Nasution, the Coordinating Minister for Economic Affairs, stated recently that prolonged dwelling times at various major ports across the country were still persisting. Minister Nasution also expressed his belief that this particular matter is of serious concern, owing to the strong impact that it is having on various port-related expenses, especially logistics. Indeed, the World Bank’s 2016 Logistics Performance Index has revealed that Indonesia’s logistics performance has been in decline since 2014, and the primary reason for this has been infrastructural deficiencies.
 
According to Mirza Adityaswara, the Head of the Task Force’s Third Working Group, the highest logistics expenses currently being incurred relate to land transportation and other matters connected with stevedoring activities at ports (the loading and unloading of goods), which ultimately leads to inefficient dwelling times. Mr. Adityaswara further revealed that 70% of seafaring companies’ expenses are allocated for land-related matters, including ports, warehouses and heavy goods vehicles, while the remaining 30% are allocated for seafaring purposes, such as operational shipping costs, crew salaries and fuel expenses.
 
Minister Nasution has stated that the Task Force will discuss these matters at another meeting, as dwelling times are largely related to various procedural and infrastructural issues. The recent coordination meeting also highlighted the issuance of unnecessary ministry-level regulations, which directly contradicts the government’s ongoing policy of deregulation. In fact, it is believed that the issuance of such regulations may ultimately hinder the implementation of President Joko Widodo’s deregulation and de-bureaucratization initiative.
 
“If these [new ministry-level regulations] are intended for the purpose of supervision, well, we already have the Indonesia National Single Window (INSW) portal with its complete and comprehensive information database. So let’s not burden ourselves any further,” Minister Nasution argued.
 
In relation to case handling and settlements, Police Inspector General Carlo Tewu, the Secretary of the Task Force’s Fourth Working Group, revealed that 55 out of 73 cases relating to deregulation had already been reviewed. Moreover, 36 of these 55 cases have already been forwarded to the relevant ministries/institutions, while another four have been sent to the Second and Third Working Groups for processing. However, two out of the 55 cases failed to be reviewed, owing to the fact that the parties who filed them were absent during the review meeting.
 
“At present, we [the Fourth Working Group] have already received another 18 new cases which will be processed immediately,” Mr. Tewu concluded.

(cd/sp)
 
Marcell Sihombing, Fathan Qorib/ANT
 

ojk

Coordinating Minister for Economic Affairs, Darmin Nasution. Photo by: SGP.

 

Last Wednesday, President Joko Widodo’s Economic Policy Task Force organized a coordination meeting in order to review the progress that is being made by its First to Fourth Working Groups. Based on the results of this review, the Task Force came to a general agreement that the First to Thirteenth Economic Policy Packages issued by the government would ultimately have a significant contribution to make at all levels of Indonesian society.
 
However, the Task Force also highlighted two major issues that it believes are in need of immediate attention. The first issue relates to the persistence of prolonged dwelling times across the country, while a second problem relates to the issuance of new ministry-level regulations, which end up working against the government’s stated policy objectives of deregulation and the cutting of red tape.
 
Darmin Nasution, the Coordinating Minister for Economic Affairs, stated recently that prolonged dwelling times at various major ports across the country were still persisting. Minister Nasution also expressed his belief that this particular matter is of serious concern, owing to the strong impact that it is having on various port-related expenses, especially logistics. Indeed, the World Bank’s 2016 Logistics Performance Index has revealed that Indonesia’s logistics performance has been in decline since 2014, and the primary reason for this has been infrastructural deficiencies.
 
According to Mirza Adityaswara, the Head of the Task Force’s Third Working Group, the highest logistics expenses currently being incurred relate to land transportation and other matters connected with stevedoring activities at ports (the loading and unloading of goods), which ultimately leads to inefficient dwelling times. Mr. Adityaswara further revealed that 70% of seafaring companies’ expenses are allocated for land-related matters, including ports, warehouses and heavy goods vehicles, while the remaining 30% are allocated for seafaring purposes, such as operational shipping costs, crew salaries and fuel expenses.
 
Minister Nasution has stated that the Task Force will discuss these matters at another meeting, as dwelling times are largely related to various procedural and infrastructural issues. The recent coordination meeting also highlighted the issuance of unnecessary ministry-level regulations, which directly contradicts the government’s ongoing policy of deregulation. In fact, it is believed that the issuance of such regulations may ultimately hinder the implementation of President Joko Widodo’s deregulation and de-bureaucratization initiative.
 
“If these [new ministry-level regulations] are intended for the purpose of supervision, well, we already have the Indonesia National Single Window (INSW) portal with its complete and comprehensive information database. So let’s not burden ourselves any further,” Minister Nasution argued.
 
In relation to case handling and settlements, Police Inspector General Carlo Tewu, the Secretary of the Task Force’s Fourth Working Group, revealed that 55 out of 73 cases relating to deregulation had already been reviewed. Moreover, 36 of these 55 cases have already been forwarded to the relevant ministries/institutions, while another four have been sent to the Second and Third Working Groups for processing. However, two out of the 55 cases failed to be reviewed, owing to the fact that the parties who filed them were absent during the review meeting.
 
“At present, we [the Fourth Working Group] have already received another 18 new cases which will be processed immediately,” Mr. Tewu concluded.

(cd/sp)
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