Some domestic industries in Indonesia complain that logistics costs account for about 40 percent of total operational costs.

Indonesia's 9th economic stimulus package consists of four parts:

(1) to integrate billing and payments for port services conducted by state-owned enterprises into one electronic system (single billing system).

(2) to integrate the Indonesia National Single Window system (which handles export and import documents) with the 'inaportnet' system (which monitors the flow of goods in harbors).

(3) to revise Transportation Ministry Regulation No.3/2014 on the Use of Foreign Currencies for Transportation Payments. By revising this regulation the Indonesian government aims to make the use of the Indonesian rupiah mandatory for payments related to transportation activities.

(4) to remove Communications and Information Ministry Regulation No.9/2015. This move should neutralize the price difference between private commercial postal services and state postal services in Indonesia. The aforementioned regulation states that commercial postal services in Indonesia are required to be more expensive than universal (private) postal services. This regulation was a major advantage to state-owned Pos Indonesia but limited competitiveness and efficiency in the country's postal services sector.

Furthermore, Indonesia's Chief Economics Minister Darmin Nasution said the government will support state-owned electricity distributor Perusahaan Listrik Negara (PLN) to achieve its 35,000 MW power program by injecting capital into the company, quickening licensing procedures and assist when land conflicts occur. By 2019 the government targets to reach an electrification ratio of 97.2 percent (from 87.5 percent currently).

Economic Stimulus Packages of the Indonesian Government:

Package Unveiled Main Points
1st 9 September
2015
• Boost industrial competitiveness through deregulation
• Curtail red tape
• Enhance law enforcement & business certainty
2nd 30 September
2015
• Interest rate tax cuts for exporters
• Speed up investment licensing for investment in industrial estates
• Relaxation import taxes on capital goods in industrial estates & aviation
3rd 7 October
2015
• Cut energy tariffs for labor-intensive industries
4th 15 October
2015
• Fixed formula to determine increases in labor wages
• Soft micro loans for >30 small & medium, export-oriented, labor-intensive businesses
5th 22 October
2015
• Tax incentive for asset revaluation
• Scrap double taxation on real estate investment trusts
• Deregulation in Islamic banking
6th 5 November
2015
• Tax incentives for investment in special economic zones
7th 4 December
2015
• Waive income tax for workers in the nation's labor-intensive industries
• Free leasehold certificates for street vendors operating in 34 state-owned designated areas
8th 21 December
2015
• Scrap income tax for 21 categories of airplane spare parts
• Incentives for the development of oil refineries by the private sector
• One-map policy to harmonize the utilization of land
9th 27 January
2016
• Single billing system for port services conducted by SOEs
• Integrate National Single Window system with 'inaportnet' system
• Mandatory use of Indonesian rupiah for payments related to transportation activities
• Remove price difference between private commercial and state postal services

Discuss