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"Efficient maritime logistics are important for stronger growth in manufacturing, agriculture and services," World Bank Indonesia and Timor-Leste Director Rodrigo A. Chaves said in a statement. received Saturday in Jakarta
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Mr Chaves added that a better logistics system would improve competitiveness and help reduce poverty as it could reduce the price of goods and services in remote areas, particularly in the east of the country. 39; Indonesia.
This loan is part of the second Indonesian Logistics Reform (DPL) Development Policy Loan under the first DPL Logistics approved in November 2016 to overcome barriers to the flow of goods in the country. inside and outside the Indonesian border.
At the present time, inefficient port operations, uncompetitive logistical service contracts and lengthy commercial procedures have hindered Indonesia's competitiveness.
In addition, ports are often considered an obstacle in the Indonesian supply chain due to limited infrastructure, minimal regulation and low productivity.
These barriers contribute to increased logistics costs for the Indonesian manufacturing sector compared to Thailand and Vietnam.
Similar obstacles play a role in the decline in Indonesian logistics performance relative to the countries of the region, as measured by the World Bank's logistic performance index.
The World Bank's chief economist, Mbadimiliano Cali, added that the project could help Indonesia, which is currently the largest archipelagic country with 17,000 islands, to have a long supply chain and fragmented.
"This project will help solve some of the major constraints at various points in the supply chain," said Cali.
The main objective of the project is to strengthen governance and port operations, foster a competitive business environment for logistic service providers and make negotiation processes more efficient and transparent.
Reforms supported by the first DPL Logistics benefited Indonesia as it accelerated several new port projects with increased private sector participation, increasing the entry of operators into the logistics market and reducing the time and cost of the business process.
The World Bank's support for the logistics sector is an important element of the World Bank Group's National Partnership Framework for Indonesia, which focuses on government priorities that could lead to major changes.
The DPL program is also badisted by additional loans from the German government through the German Development Bank (KfW) and the French government through the French Development Agency (AFD).
Pewarta: Satyagraha
Publisher: Ruslan Burhani
COPYRIGHT © BETWEEN 2018
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