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Indonesia to revise 20 regulations in next economic stimulus package

The government plans to revise 20 regulations pertaining to logistics in the planned 15th economic stimulus package.

Transportation Minister Budi Karya Sumadi said the regulations would mainly address capital, non-tax state revenue and dwell activities in domestic logistics.

“We are still reviewing the regulations,” he said on Friday as quoted by kompas.com.

Earlier, Coordinating Economic Minister Darmin Nasution said the 15th economic stimulus package would aim to ease domestic logistical activities and reduce dwell time in seaports.

Among the reforms is the improvement of data processing through the Indonesia National Single Window (INSW).

As the government prepares the regulations, business players recently demanded changes to the rules governing the transportation and logistics sectors, including those pertaining to non-state revenue and participation of the private sector.

Indonesia has one of the highest logistics costs in Southeast Asia, standing at 26 percent in comparison to its gross domestic product (GDP).

The marked costs have eroded the competitiveness of local firms in international trade activities.

The government has vowed to lower the costs to 19 percent in the next few years. (lnd)