*The project has closed on September 30th, 2017*
The development objective of the First Indonesia Logistics Reform Development Policy Loan (DPL) Project for Indonesia is to reduce the costs and improve the reliability of the logistics chain in Indonesia. This program document presents a proposed DPL to support the Government of the Republic of Indonesia’s priorities for improving the movements of goods within and across the country’s borders to further its medium-term economic development and poverty reduction goals.
The proposed operation is the first in a planned programmatic series of two single-tranche operations supporting critical policy and institutional reforms to address bottlenecks at various points of the supply chain by:
a) strengthening port’s governance and operations;
b) enabling a competitive business environment for logistics service providers; and
c) making trade processing more efficient and transparent.
The proposed DPL series is structured around the following three pillars, a set of objectives and government program reform areas:
1) Pillar A: Enhancing ports’ performance. Strengthening port’s governance and operations by (i) improving the governance of ports by clarifying the role of Port authorities vis-à-vis port operators; (ii) facilitating the entry of port services operators; and (iii) enhancing coordination of documentary and container examination in ports;
2) Pillar B: Improving logistics services. Enabling a competitive business environment for logistics service providers by increasing competition in (i) freight forwarding services, storage, and distribution services; (ii) auxiliary shipping services; and (iii) reducing inventory costs of imported materials for producers;
3) Pillar C: Strengthening trade processing. Making trade processing more efficient and transparent by (i) reducing licensing requirements for imports; (ii) facilitating traders
Title: Director of Loan and Grant, Ministry of Finance
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