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Sri Mulyani Challenges Businesspeople Criticizing Bonded Logistics Center

Sri Mulyani Challenges Businesspeople Criticizing Bonded Logistics Center

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Published At 12 Apr 2017


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Jakarta, CNN Indonesia -- Finance Minister Sri Mulyani Indrawati asked business actors and managers of Bonded Logistics Centers (PLB) to give her homework assignments to create policies that could improve the quality of Indonesia's logistics sector. The ultimate goal is for Indonesian PLBs to be able to compete with logistics centers in neighboring countries.


"I'm like a student asking the teacher for homework. If the teacher is reluctant to give homework, I'll even request it," said Sri Mulyani at the office of the Directorate General of Customs and Excise of the Ministry of Finance (DJBC Kemenkeu), Jakarta, Wednesday (12/4).


Sri Mulyani stated that she has heard many parties wanting Indonesia's logistics sector to become an Asia Pacific logistics hub. Unfortunately, she rarely hears concrete development steps or targets that the domestic logistics sector needs to pursue.


Meanwhile, she emphasized that the government eagerly awaits input from business actors and PLB managers to map out effective policies that could act as vitamins for the sector.


In her preliminary mapping, Sri Mulyani identified four targets that need to be achieved.


First, Sri Mulyani wants reports on the volume of import-export activities conducted by businesses, commodity types, business models, logistics process speed, and infrastructure owned by Asia Pacific logistics hub countries.


"Who claims to be Asia Pacific hubs? Singapore? Hong Kong? Please list everything they have. So, I want to see a list of all your aspirations," said the former World Bank Managing Director.


Second, Sri Mulyani wants reports on Indonesia's current logistics achievements. By understanding what has been achieved and what needs to be achieved, new policies can be synchronized accordingly.


She also wants to combine this with several macroeconomic assumptions mapped in the 2017 State Budget (APBN), such as economic growth, public consumption growth, and expected investment rates.


Developing Outside Java


Third, Sri Mulyani wants PLB managers to grow PLB's role as a solver of logistics inequality so PLB development can be spread across regions, not concentrated only on Java Island. She hopes they can even expand to border areas following President Joko Widodo's (Jokowi) vision.


"If we want to develop border areas, that would be great because borders shouldn't be underdeveloped regions while growth only occurs in city centers - we can't allow that," she added.


Fourth, PLB development should be based on industrial sector mapping where having a PLB near production sources and product markets is particularly crucial.


"For example in construction - we're currently building many infrastructures, the government is pushing housing developments. How does PLB relate to the construction sector? What about construction PLBs?" she asked.


With this initial mapping, Sri Mulyani hopes Indonesian business actors and logistics managers can immediately map out strategies and report to the government, enabling the logistics sector to grow as expected and become institutions the nation can rely on.


"So if (PLB) has been inaugurated by the President, we must maintain the momentum and be proud when celebrating its second or third anniversary - 'this institution inaugurated by Mr. President as an infant has now grown into a handsome youth'," concluded Sri Mulyani. (gen)

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