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Batam Logistics Ecosystem launched under Indonesia’s logistic upgrade

Image credit: nle.kemenkeu.go.id/portal

Indonesia’s latest Batam Logistic Ecosystem (BLE) has been launched built so that national ports that are part of Indonesia logistics connectivity can be more efficient and economical to compete with other countries in the region. Eight major seaports in Indonesia will be included in the National Logistic Ecosystem following the launch of the Batam Logistics Ecosystem (BLE) pilot project.

Speaking at the launch of the coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan confirmed that the main goal of the initiative to become a major regional player in the logistics sector.  Indonesia wants to have a significant impact in all three major inter-trade areas – Business to Business (B2B), Government to Government (G2G) and Business to Government(B2G). We want Indonesia to be able to compete from costs.

He acknowledged that logistics costs in Indonesia are not relatively efficient compared to neighbouring countries. Therefore, the government has formulated the Batam Logistics Ecosystem platform as part of the National Logistics Ecosystem (NLE). “If efficiency is applied, then we will gain more revenue.”

The government has developed an integrated ecosystem to streamline logistics to allow the nation to compete globally. BLE is part of the NLE that functions to tidy up and simplify business processes through integrated inspection services with single submissions, port services and permits.

The NLE will function as a platform for business operators in transportation, shipping, ports, warehouse, and depo. The system is expected to cut short the process for licensing, truck ordering, checking, and transporting. Through it, the government is aiming to lower the logistics costs to 17% of the GDP by 2024.

In this new era, digital connectivity that is getting smoother from end-to-end without manual process intervention is the ideal of all parties, both from the private sector and the government sector. The collaborative approach is taken to ensure that inter-sector integration can be established without shutting down or eliminating existing systems in each sector.

NLE is a logistic ecosystem that synchronises the flow of international goods and documents from the arrival of transportation facilities to the goods arriving at the warehouse, oriented to cooperation between government and private agencies. The platform brings together the logistics community in the demand sector that now exists in the Customs Excise Information System and Automation (CEISA).

With the concept of Collaboration Application Programming Interface [API], all logistics platforms such as trucking, warehousing, shipping, forwarders, both domestic and global can join forces to share information. CEISA NLE facilitates importers and exporters to see and choose prices and quality for the availability of trucks, vessels, and warehouses in one application.

This is executed through data exchange, simplification of processes, elimination of repetition and duplication and is supported by a technology system. information covering all related logistical processes and linking existing logistic systems. Open API technology that makes this concept of collaboration possible.

The system has integrated the work of several ministries and institutions: Finance Ministry, Transportation Ministry, Trade Ministry, Agriculture Ministry, Industry Ministry, Marine Affairs and Fisheries Ministry, Investment Coordinating Board (BKPM), Batam Development Agency (BP Batam), and some other related institutions.

The government chose Batam for the logistics system because the city connects the state with neighbouring countries. It is hoped that the program will be able to improve Batam’s competitive edge which has been lower than the national average over the past five years was but, in fact, has a high potential to record high economic growth.

Finance Minister Sri Mulyani Indrawati confirmed that government plans to deploy the NLE in all ports across Indonesia, “We hope this is part of economic recovery. We see economic activities have declined in the wake of the pandemic, so we need to make improvements.”

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