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Lack of standardization hampers logistics business: Experts
The lack of standardization had affected the productivity of the logistics sector.
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The loading and unloading facilities at the Jakarta International Container Terminal (JICT), Tanjung Priok, North Jakarta. (Antara/Dhemas Reviyanto)
D
espite the government’s massive infrastructure development intended to boost connectivity, Indonesia still has a long list of major challenges to be addressed in the logistics sector.
In fact, achieving logistics efficiency is not enough with only infrastructure development.
The deputy assistant for national logistics development of the Coordinating Economic Ministry, Erwin Raza, said a lack of standardization was a key factor that hampered the logistics sector, in addition to a lack of government efforts to improve connectivity from industrial areas to seaports, airports and other industrial zones.
Erwin said Indonesia lacked unification and standardization in logistics such as that related to permits, courier services and documentation.
“For example, there are many logistics permits that are under different ministries. Permits for warehouses are under the Trade Ministry, permits for bonded logistics centers are under customs and excise, while courier permits are under the Communications and Information Ministry. Can we just unify those permits with the same standards?” said Erwin during a panel discussion on postal business and Indonesian logistics in Jakarta on Monday.
Erwin said Indonesia also lacked standardization in its courier services such as in tariff references, operational standard procedures and packaging. Even for the simplest things such as those related to courier documents and the use of postcode, city code, goods code, Indonesia is yet to have the same standards.
“What is the city code for Bandung, is it BDO or BDG? How about the city code for Surabaya, is it SBY or SUB? This is simple nonuniformity yet potentially affects the effectiveness of logistics and we have to work really hard to make such standardization” he said.
