Indonesia Introduces Regulation to Streamline Inter-Island Trade and Logistics
Jakarta, The Gulf Observer: The Indonesian government has issued a new ministerial regulation to enhance the efficiency of inter-island trade and logistics, Trade Minister Budi Santoso announced on Tuesday.
Trade Minister Regulation No. 27 of 2024 aims to establish a comprehensive single database for inter-island trade, enabling the government to accurately assess regional production and consumption rates and formulate precise import policies.
“The integrated data will allow us to identify regions with a surplus or deficit in goods production, especially essential commodities, to prevent over-importation due to insufficient domestic production data,” Santoso explained.
He emphasized the importance of data-driven decision-making, stating, “We cannot afford to declare a deficit in a region without clear information on the actual conditions. With better data, we can make informed judgments about the need for imported goods.”
Beyond informing import policies, the regulation is designed to address disparities in economic development by enhancing logistics performance and promoting growth in less-developed regions. Santoso highlighted data from Statistics Indonesia (BPS) in 2023, which revealed significant disparities in trade volume across Indonesian regions.
The regulation is also expected to reduce price gaps for staple commodities between regions, a longstanding issue tied to national logistics inefficiencies.
“The new regulation will streamline governance of inter-island trade and provide the government with better tools to monitor goods distribution,” Santoso added.
The initiative reflects Indonesia’s commitment to improving trade logistics and fostering balanced economic growth nationwide.
