Have you ever wondered how the things you use every day end up in your hands? The simple answer is an intricate logistics system that makes it happen. In Indonesia, the system is undergoing a great transformation thanks to digitalization.

The government is working hard to accelerate digital logistics as part of strategic steps to improve competitiveness and promote economic growth.

Implemented by the National Single Window Agency (LNSW), Indonesia’s logistics system is transitioning from manual to digital, facilitating more efficient export and import processes and logistics management.

What is NLE?

The National Logistic Ecosystem (NLE) is a system that integrates every logistics process, such as export and import, into one digital platform.

Imagine it as a single entry point for all requirements related to logistics. It turns the previously complex and time-consuming process into a more efficient and transparent one.

The Importance of Logistics Digitalization

Time efficiency: Loading and unloading processes at the port (dwell time) are much faster. Therefore, the package can be delivered faster to the destination, whether it is a factory, store, or home.

Cost reduction: More efficient processes mean lower logistics costs. As a result, it will reduce the prices of goods we purchase.

Transparency: All logistics processes are tracked in real-time. Thus, we can monitor where our shipment is at any time.

Improved competitiveness: With an efficient logistics system, Indonesia has become more attractive to foreign investment, and its products can be more competitive in the global market.

One indicator of significant improvement made by the digital transformation is the dwell time, which refers to the time it takes to load and unload containers at the port. At the national level, the average dwell time is reduced from 3.16 days in 2019 to 2.62 days in 2023. 

The dwell time reduction helps reduce logistics costs, which ultimately contributes to the overall health of the industrial sector and the national economy.

Benefits of the NLE for Indonesia

Economic growth: With excellent logistics, the industrial and trade sectors can rapidly grow.

Ease of doing business: Business owners don’t have to navigate complex bureaucracy, allowing them to focus on their business development.

Improved quality of life: Essential goods are more accessible.

A Step Forward for Indonesia

The government is working hard to develop the NLE. Some of the steps taken are as follows:

System integration: Incorporating different information systems related to logistics into one platform.

Technological development: Leveraging the latest technologies, such as artificial intelligence and big data, to improve efficiency.

Collaboration with stakeholders: Collaborating with relevant stakeholders, such as businesses, ports, and customs and excise agencies, to ensure the NLE works well.

The NLE, developed by the LNSW, has been implemented in 52 ports and 7 airports, covering almost 100% of Indonesia’s export and import documents. 

According to an independent survey, the implementation of digital services, such as the Online Delivery Order and Online Container Delivery Order, contributed to time and cost efficiency.

For example, the time efficiency resulting from the implementation of SSm Quarantine and Customs amounted to 73.4%, while cost reduction made it to 46.1%.

The development of digital trade is also the focus of LNSW, which has made an initiative to incorporate various international programs, such as e-invoices and e-B/Ls, to allow data related to digital trade to be received from international sources.

The initiative is expected to strengthen Indonesia’s international trade and optimize business relations between the government and the business sector at the domestic level.

The Future of Logistics in Indonesia

The NLE empowers Indonesia to become a Southeast Asian logistics hub, creating a prosperous future for the sector. No wonder digitalization is a crucial step forward for the country’s logistics.

With the NLE, Indonesia can build an efficient, transparent, and reliable logistics system. This is a long-term investment that will benefit all its people.

Indonesia’s logistics will become a crucial economic pillar,driven by sector growth potential and government support.

Given the crucial benefits that logistics provides, it’s undeniable that technologies must be leveragedto allow for more effective and error-free processes from upstream to downstream.

One of the logistics companies that has started leveraging technologies is SELOG. With more than 20 years of experience, SELOG serves the customers’ needs in end-to-end logistics services, such as Trucking, Shipping, Freight Forwarding, Warehousing, and Project Cargo.

SELOG offers a wide range of trucks that ensure the quality and security of services. The services are also powered by the latest digital technology in Astra Fleet Management Solution (AstraFMS), which brings greater convenience, effectiveness, and efficiency to your business.

Thanks to the AstraFMS technology, SELOG can provide comprehensive, IT-based fleet and transportation management solutions in Indonesia.

For more information about SELOG services, visit www.selog.astra.co.id or contact us at (021) 26605333.