Indonesia to reform customs clearance to boost port efficiency

Indonesia is planning reforms in the pre-customs clearance process at major seaports as part of President Joko Widodo efforts to reduce its high logistics costs and improve efficiency at the ports, local reports said.

Transportation Minister Ignasius Jonan was quoted as saying that he would undertake efforts to improve efficiency at Indonesian seaports, so that the government would meet the new dwelling-time target set by the President.

Jonan said he would need only three months to cut the dwelling-time to the target of 4.7 days demanded by Jokowi, from the current six days.

“The biggest challenge that we face [in reducing dwelling times] is improving efficiency in the pre-customs clearance process, as this involves many institutions,” Jonan said.

The previous government had aimed to cut the dwelling time to four days by the end of last year, a target which has not been met.

Coordinating Maritime Affairs Minister Indroyono Susilo said the President was currently formulating a Presidential Instruction that would integrate responsible ministries and government institutions to improve coordination and boost efficiency in local seaports.

“Within the past week, I’ve noticed that the responsible ministries and government institutions already have a keenness to implement the reforms,” he added.



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