I

mport cargo dwelling times are widely accepted as the main indicator of a port'€™s handling efficiency and have long been a central issue in debates on the high cost of logistics in Indonesia.

During former president Susilo Bambang Yudhoyono'€™s term, the dwelling time of imported cargo at seaports was prioritized among the national programs of action supervised by the Presidential Working Unit for the Supervision and Management of Development (UKP4).

During the groundbreaking of New Tanjung Priok Port in 2013, Yudhoyono instructed that the dwelling time for imports be cut to an average of three days, but today, almost two months after the end of his administration, the average dwelling time remains at an average of five days.

Why does the dwelling time remain high? To address this question, there are some facts and notes that should be taken into account by the public, relevant stakeholders and interested parties.

First, we should know that in measuring this dwelling time, to date there is no uniform method.

At present, every government agency, research institute or others, can define and formulate a method and calculate or estimate the dwelling time based on their own perception.

Since each entity has different interests, resources (including data) and capacities to estimate the dwelling time, it is unsurprising if reported import cargo dwelling times vary from one entity to another.

The government must come up with a single unified measurement or yardstick for such dwelling times, which covers not only its definition, but also a rigorous calculation method and data used.

The highest authority '€” the president '€” should endorse the measurement or yardstick with a formal regulation so it can be widely accepted by all involved parties, and there is no reason for everyone, including government agencies, not to share the necessary data.

More importantly, the measurement should be able to describe the contribution of each involved party to total dwelling time, so it can be used to monitor and evaluate the performance of each agency.

It has to be regularly monitored and announced to the public and be accessible via a national data system.

This will create self-accountability and transparency among all involved entities to always evaluate their '€œtime contribution'€ to total dwelling time, establish the root of the problem and formulate solutions.

Second, dwelling times are commodity specific. Customs and Excise Agency data shows that some commodities, for example oranges and other horticultural products, have shorter average dwelling times compared to other commodities, such as plastics or electronic equipment.

Interestingly, the data also shows that the average import cargo dwelling time of commodities requiring an import license from government agencies, such as restricted and prohibited goods, is no different to the dwelling times of ones that do not require any special import licenses.

Third, customs agency data also shows that many reputable importers who receive a priority or green (fast track) lane from the customs agency due to their good reputation still experience unusually long dwelling times of more than four days, even though customs clearance for imports from bona fide importers can be done electronically within a few minutes.

If we dig deeper, we see that the willingness of importers to release goods as soon as possible plays a significant role in determining import cargo dwelling time. Take oranges, for example.

Even though this commodity needs a quarantine permit and a physical examination, imported oranges can, with good cooperation from their importers, be released within a relatively shorter dwelling time.

The importers usually show good cooperation with other related agencies to secure a short dwelling time, thereby preventing their oranges from becoming rotten or spending more on warehouse rent if their containers stay longer in the port.

In contrast, automotive spare parts or consumer goods importers, for instance, prefer to park their containers longer in the port, mostly because they do not have enough space in their warehouses.

Keeping the container in the port is also safer and more efficient than outside, as the port is a restricted area and the total cost is relatively cheaper.

This suggests importers know the right time to release their goods from ports and it is not always necessarily in line with the dwelling-time target.

Thus, a shorter dwelling time is not always better, depending on the specific characteristics of importers.

It is wise to set a realistic dwelling time target and not simply compare the performance of our ports with neighboring countries.

It is questionable to set an import cargo dwelling time target of less than three days if the containers can stay for three days in Tanjung Priok Port for free, or even five days in Tanjung Perak Port, Surabaya.

So why is the dwelling time still high? In my view, simply because most of us still need it.

The government'€™s task is to identify with a clear yardstick or measurement who needs a longer dwelling time, understand why they need such a long dwelling time and help them find a '€œcase by case'€ solution, not a generic one.