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Jakarta Post

Trade permits to be issued by single office starting August: Minister

Coordinating Economics Minister Darmin Nasution (left), accompanied by Cabinet Secretary Pramono Anung, makes statements in a press conference at the State Palace in Jakarta on March 16

Ayomi Amindoni & Anton Hermansyah (The Jakarta Post)
Jakarta
Tue, March 29, 2016 Published on Mar. 29, 2016 Published on 2016-03-29T18:39:40+07:00

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Coordinating Economics Minister Darmin Nasution (left), accompanied by Cabinet Secretary Pramono Anung, makes statements in a press conference at the State Palace in Jakarta on March 16.(ANTARA FOTO/Yudhi Mahatma)

The government aims to shorten the dwelling time in seaports to 3.7 days by implementing the Indonesian Single Risk Management (ISRM), Coordinating Economics Minister Darmin Nasution has said.

The measure is listed in the 11th economic stimulus package, which was released on Tuesday, to provide business certainty and efficiency as well as to lower the cost of exporting and importing. All permits for imports would be issued by a single office.

"Until the end of 2015, Indonesia's dwelling time was 4.7 days. The single risk management will be mandatory starting August 2016. We expect the dwelling time to be reduced from 4.7 days to 3.7 days or less," Darmin said at the State Palace in Jakarta on Tuesday.

Dwelling time indicates the average length of time that a container spends in a seaport terminal. A short dwelling time means more efficient shipping procedures and low logistical costs.

Previously, Darmin said, each ministry and agency had its own standard for risk management of exporting and importing. They differentiated the imported goods into a green line (free of physical inspections) and a red line (must undergo physical inspections).

As a result, it takes more time to clear customs. Through the ISRM, the government hopes to speed '€‹'€‹up import and export services by integrating the custom clearance risk management systems of 18 ministries and agencies through the Indonesia National Single Window (INSW).

In its initial phase, the government would launch a single risk management model in a single platform for the Food and Drug Monitory Agency and the Customs Office to decrease the dwelling time of pharmaceutical raw materials, food and beverage products.

The implementation would then be extended to other ministries and agencies, with the aim of decreasing dwelling time to 3.7 days by the end of 2016 and to less than three days by the end of 2017. (ags)

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