Port digitalisation boosts non-tax state revenue
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Digitalisasi kepelabuhanan pacu PNBP
24 July 2024
By Ichsan Amin
Jakarta, ID – The Transportation Ministry is continuously advancing port digitalisation through Inaportnet, which has significantly increased ship visits and non-tax state revenue (PNBP).
Transportation Minister Budi Karya Sumadi said that the digitalisation of ports through Inaportnet was the Transportation Minister’s effort to support the implementation of the Mineral and Coal Information System (Simbara).
“Inaportnet is integrated with Simbara, which enhances state revenue from mining commodities and improves the supervision of these commodities,” Budi Karya said in his press statement on Tuesday (23/7/2024).
The Transportation Minister stated that as of 2023, Inaportnet had been implemented at 264 ports across Indonesia. Among the 54 ports handling mineral commodities and coal, 20 ports with the highest volume are the primary focus for supervision. This initiative has significantly increased ship visits and non-tax state revenue (PNBP).
“We will continuously develop Inaportnet to strengthen Simbara, so the supervision of minerals at ports is expected to be more efficient,” he stated.
According to the Transportation Minister, collaborations between ministries and institutions facilitate the supervision and validation of cargo by relevant port regulators. These collaborations also help verify state revenue transaction numbers (NTPNs) from royalties and survey results issued by surveyors.
So far, the use of data from Inaportnet has improved time and cost efficiency at ports. The integration of Inaportnet with the Single Submission System (SSM) has expedited the electronic document submission process, showcasing an effective and efficient digital transformation in the port sector.
The Simbara application, launched in March 2022, has now been expanded to monitor tin and nickel commodities. Its implementation has positively impacted state revenue.
For example, Simbara has prevented illegal mining activities valued at Rp3.47 trillion and increased state revenue by Rp2.53 trillion through analytics data and risk profiling of business players. Additionally, it has resolved receivables worth Rp1.1 trillion through the implementation of its automatic blocking system.
The state revenue potential from nickel and tin commodities is substantial, as Indonesia is one of the world's largest producers of these minerals. The country's nickel reserves amount to approximately 21 million tonnes, representing 24% of the global reserve. Similarly, Indonesia's tin reserves are the second largest in the world, totaling 800 thousand tonnes or 23% of the global reserve.
“We commend the initiatives led by the Coordinating Minister for Maritime Affairs and Investment and the Finance Minister to better organise field operations. This has had a positive impact on our activities. We fully support these efforts to maximise benefits for the state,” the Transportation Minister added.
Port organisation improvement
The Corruption Eradication Commission (KPK) through the National Strategy for Corruption Prevention (Stranas PK) is continuously improving port governance in Indonesia to prevent corruption and encourage optimal services.
Between 2022 and 2023, the efforts included the digitalisation of 14 ports. From 2023 to 2024, this digitalisation initiative has expanded to 246 ports.
“Out of the 246 ports, 46 are national priority ports that handle exports and imports. The National Logistics Ecosystem (NLE) has also been implemented at over 2,000 special terminals and private-interest terminals, resulting in faster and more cost-effective services at these ports,” KPK Prevention and Monitoring Deputy Pahala Nainggolan said recently.
Pahala mentioned that the delivery time for goods has significantly improved, dropping from 2 weeks to an average of just 20.8 hours. Additionally, the efficiency of cargo handling at ports has increased by 46.1%. Ship service times have also become 21.6% more efficient, with the average dwelling time now reduced to 2.9 days. Furthermore, the costs associated with ship services have decreased by 45.5% compared to pre-digitalisation levels.
“In summary, 18 ministries and institutions have collaborated to digitalise both government and private ports. As a result, we can now monitor cargo movement at 246 government ports and 2,000 private ports, at least in terms of quantity. Another significant achievement is the reduction in service times at 16 airports, where tasks that previously took 2 days now only take 3 to 4 hours. This digital transformation has been made possible with support from the National Single Window Agency (LNSW),” Pahala stated.
Pelindo President Director Arif Suhartono highlighted that the digitalisation of ports has significantly improved all cargo-related processes. "Everything is controlled by the system, allowing us to shorten port stays and increase capacity. The beauty of this transformation is that we can boost [port] capacity without requiring excessive investment, sometimes without any investment at all," he stated.
The digitalisation of ports has also positively impacted state revenue for ministries and institutions involved in port services. Specifically, the PNBP of the Sea Transportation Directorate General under the Ministry of Transportation saw a significant increase of 116.05% to Rp4.278 trillion from 2021 to 2023 following the implementation of Inaportnet and port reforms.
LNSW Head Oza Olavia emphasised the importance of digitalisation for port governance, noting that port activities involve coordination among 18 ministries and institutions. According to Oza, her organisation is responsible for integrating systems across these relevant ministries and institutions to support exports, imports, and logistics.
“We are enhancing port governance by integrating the systems of 18 ministries and institutions that have authority at ports, without diminishing their respective powers. By utilizing digital technologies, we are simplifying business processes, making them more efficient and time-effective. This, in turn, will ultimately reduce costs,” she said.
