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Out with paper! Indonesia pilots digital logistics system in Batam
Indonesia and potential investors may soon see a national digital logistics system in the world's largest archipelago with the launch of the Batam Logistics Ecosystem (BLE) pilot project.
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Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan (left) and Finance Minister Sri Mulyani Indrawati (right) symbolically tap a golden globe to launch the Batam Logistics Ecosystem (BLE) on March 18, 2021 in Batam, Riau Islands. (Courtesy of the Coordinating Maritime Affairs and Investment Minister/-)
T
he government has launched the Batam Logistics Ecosystem (BLE), a one-stop digital platform that aims to reduce high logistics costs by eliminating red tape caused by paper-based processes.
“The potential for maritime projects in the Riau Islands is very high, which is why we want to accelerate these projects. The BLE can hopefully drive more investments [to] boost the province’s economy,” Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan said on Thursday the BLE launch event in Batam, Riau Islands.
Read also: High logistics, power costs keep firms from investing in Batam
The BLE is a pilot project for the National Logistics Ecosystem (NLE), which was initiated in response to Presidential Instruction (Inpres) No. 5/2020 on nationwide logistics and distribution, issued last June. The 24-hour digital system is expected to increase transparency, simplify processes and improve communication pertaining to logistics management.
Luhut said the government also planned to install similar systems at seven other ports this year: Tanjung Priok in Jakarta, Patimban Port in West Java, two ports in Semarang, Central Java, with the remaining three ports in Makassar in South Sulawesi, Medan in North Sumatra and Surabaya in East Java.
He expressed the hope that the digital logistics pilot project could reduce shipping, distribution and other related costs from 23.5 percent of gross domestic product (GDP) at present to just 17 percent of GDP by 2024.
Indonesia, the world’s largest archipelagic nation, is notorious for having the highest logistics costs in Southeast Asia, according to the World Bank.
