Government Cuts Permit Processing Time by 50%

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     The Transportation Ministry has decided on 8th December to cut the processing time needed to get any permit in the transportation sector by 50 percent in an attempt to help reduce the country’s high logistical costs. “Permits that usually take around 14 days to be issued will now only take seven days. Those that usually take around five days will be reduced to only three days and so on,” said Hadi Mustofa Djuraid, the ministry’s special staff in public informations division, as quoted by Antara news agency Dec. 8.

 

     Hadi said, the new policy to cut the permit processing times for air, land, rail and sea transportation was signed by Transportation Minister Ignasius Jonan on Friday 5th December through a ministrial decree. “If we can cut the costs of logistics, we will be able to improve our competitiveness,” he said.

 

     Logistic costs in  Indonesia are among the highest in Southeast Asia, representing 20 to 30 percent of the country’s gross domestic product (GDP). Based on the World Bank’s 2014 logistics performance index, Indonesia’s logistics performance was ranked 53rd in the world as compared to Singapore, which was ranked fifth, Malaysia ranked 25th, Thailand, ranked 35th, and Vietnam, which was in the 48th place.

 

     The dwelling time for containers at the Indonesian major port Tanjung Priok Port in North Jakarta has also increased from 4.8 days in October 20110 to eight days in 2013, creating more bottlenecks for Indonesia’s exports and imports. “The processing time or business permits is part of the logistics chain that we have to cut,” added Hadi.

 

    The  ministry also has decided to implement a new work schedule beginning January 2015, obliging its echelon I, II and III officials across the country to work on weekends to guanrantee the best services to the people. “They will take turns working on the weekends because the transportation sector has to be monitored 24 hour a day, seven days a week,” said minister Ignasius Jonan as quoted by Antara Dec, 9.

 

    According to his calculations, all echelon I, II and III officials will have to work on the weekends once every seven weeks. Jonan also urged all officials to work hard on the weekends and attend all coordinating meetings to improve services in the future. (ds)

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