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Govt streamlines regulations to cut dwell times to 2.5 days
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Efficient cargo handling -- Freight is unloaded at a cargo terminal at Kalibaru Port, Tanjung Priok, North Jakarta, on Sept.13. (Antara/Widodo S. Jusuf)
T
he government is streamlining 14 pre-clearance regulations in a bid to cut Indonesia’s port dwell times to 2.5 days as targeted by President Joko "Jokowi" Widodo, a minister has said.
Transportation Minister Budi Karya Sumadi said state port operator Pelindo had managed to cut port dwell times to 3.2 days from 5.7 days. However, he said, the government expected a dwell time below 2.5 days to raise the country’s competitiveness against its peer countries.
The minister further said most of the problems in port dwell times occurred because there were too many regulations and a long pre-clearance process. Of a total of 74 pre-clearance regulations, the government managed to shift 60 of them online.
"The remaining 14 regulations are being examined. We’re aiming for the pre-clearance process to take only one day while customs clearance and post-clearance processes will take only half a day and one day respectively," Budi said during a discussion in Jakarta on Monday.
According to Transportation Ministry data, currently it takes 1.6 days to complete the pre-clearance process while the customs clearance takes half a day and 1.25 days for post clearance.
Budi said the government also urged Pelindo to team up with the private sector in its efforts to cut port dwell times so that Indonesia could compete with peer countries. It was long dwell times that hindered Indonesia's competitiveness, he stressed.
"We also want to cut transshipment costs and limit transshipment times to only three days," Budi said.
Transshipment is the shipment process of goods or containers to an intermediate destination, before they are delivered to their final destination. (ebf)
