ALFI Voices Urgency The Importance Of The Establishment Of A National Logistics Agency For New Governments

Chairman of the DPP Association of Indonesian Logistics and Forwarders (ALFI) Akbar Djohan. (Photo: Doc. Antara)

JAKARTA - Chairman of the DPP Association of Indonesian Logistics and Forwarders (ALFI) Akbar Djohan voiced an urgency so that the elected new government can establish a National Logistics Agency to optimize potential revenue from the logistics sector.

"It's time for the National Logistics Agency to be independent and based on the law. This is its function to bring harmonization of the ministry's regulations," Akbar said in a statement in Jakarta, quoted from Antara, Tuesday, May 21.

Previously, the government had issued Regulation of the Minister of Trade (Permendag) Number 8 of 2024 which has been in effect since May 17, 2024. The new import regulations made 17,304 containers detained since March 10, 2024 at Tanjung Priok Port, and 9,111 containers in Tanjung Perak can be released immediately.

This new Permendag is the result of the third revision of Permendag No. 36/2023 which has been changed to Permendag No. 3/2024, and amended again to Permendag No. 7/2024 concerning Import Policy and Regulation.

Responding to this, Akbar hopes that the blockage of thousands of containers in Indonesia's two important ports will no longer be repeated. This bridge is considered quite disturbing the supply chain to various economic sectors in Indonesia.

"We need coordination, because in national logistics there is a supply chain and involves 15 ministries and 13 institutions. We are also talking about national logistics governance which is not yet considered," said Akbar Djohan.

According to him, from Bappenas data, there is economic activity that rotates more than Rp. 400 trillion through the logistics sector. This figure is enough to make the sector contributeable to state revenue.

Akbar saw that tens of thousands of containers had stalled at Tanjung Priok Port because waiting for the latest import regulations was quite disturbing the running of the economy.

There are losses that have a double effect and are widespread due to the stagnation of the economy and an increase in spending. Especially with high global uncertainty, it can affect supply chain disruption and commodity prices.

"Yes, the loss is multiplier effect only because the new Permendag for new import regulations must ask for revisions from various ministries," added the man who is also the Head of the Logistics & Supply Chain Agency of the Indonesian Chamber of Commerce.

According to him, container congestion at Tanjung Priok Port has the potential to occur again in the future if there is no logistics agency that regulates and is responsible for this problem.

If there is a National Logistics Agency, said Akbar, logistical problems such as those currently available can be resolved properly because there are agencies responsible for implementing logistics regulations.

This logistics agency is also a 'orkestra' that regulates the flow of logistics in and out of ports as one of the gates of the Indonesian economy with 15 related ministries.

Broadly speaking, Akbar hopes that the existence of the National Logistics Agency can accelerate the investment climate both at home and abroad, and can optimize revenue from the logistics sector.

"In addition, it could accelerate the manufacturing industry sector and prevent deindustrialization," said Akbar.