Understanding the Regulatory Environment for ICT Infrastructure in Papua New Guinea: The Coral Sea Cable System (CS2) Case Study

Over the past decade, digital connectivity has emerged as a critical new form of infrastructure, akin to roads, energy or ports—underpinning economic growth and social development. In Papua New Guinea (PNG), the advent of digital connectivity has opened up new avenues for communication, commerce, education, and governance. Indeed, the introduction of the internet in PNG nearly three decades ago (1997), has accelerated the country’s digitization efforts. However, despite the PNG government’s digital infrastructure strategies, broadband access—both fixed and mobile—remains limited in Papua New Guinea. ITU (the International Telecommunications Union) recorded that only 32% of PNG’s total population used the internet in 2021, in contrast with an Asia Pacific average of 60%. This also stands in contrast with PNG’s rising strategic profile. As a result of its geographical location, abundant natural resources, and a reliance on international investments, PNG has become valuable to many countries with interests in the region. In turn this has resulted in growing geopolitical tensions between global powers, particularly between Australia and China. This is evident in the laying of the latest international subsea cable—the Coral Sea Cable System (CS2). The CS2 is a significant telecommunications infrastructure initiative connecting Australia, PNG, and the Solomon Islands. The project involves a 4,700 km fiber-optic subsea cable that links both PNG and Solomon Islands to Australia. Its purpose is to deliver faster, more affordable, and reliable internet connection to both PNG and the Solomon Islands. In turn, it is expected that the CS2 will support PNG and the Solomon Islands’ further integration into the global marketplace through the development of entrepreneurship improved digital skills and enhanced information sharing between the three countries. Australia, through the Department of Foreign Affairs and Trade (DFAT), has been a major contributor to the project, contributing two-thirds of the financing, with PNG and the Solomon Islands equally sharing the remaining one-third. As the major contributor, Australia selected Australian-based Vocus and French-based ASN (Alcatel Submarine Networks) to construct and install the fiber cables. However, in spite of the relative success of the project, there have been reports of significant challenges, including concerns about the financial terms of the agreement, security and transparency issues, and the geopolitical implications of major powers’ interest in the Pacific region. This paper explores these issues in more detail, before providing final recommendations and lessons learned in the context of the Coral Sea Cable System project, with a specific focus on PNG. Key recommendations include: • The PNG government should legislate for a Right to Information Law to promote transparency and accountability in public project management. • The government and the public should take into consideration prospective partners’ standards for governance and transparency when deciding who to collaborate with in these types of infrastructure projects. • Donors or financiers of infrastructure development projects should insist that the government and other recipients publish relevant information to the public as part of the funding arrangements. • The pooling of human and financial resources at a regional and sub-regional level will result in enhanced broadband connectivity. • A sub-regional intergovernmental platform for effective coordination and cooperation in the development and delivery of ICT projects in the Pacific should be developed. Going forward, ongoing monitoring and evaluation will be critical to ensuring the project's continued success and addressing any issues that may arise during its operation

Indonesia’s Strategies for Joining the ASEAN Digital Economy Framework Agreement

This policy brief presents the possible contents of DEFA by mapping relevant elements of the digital economy from existing agreements. The mapping indicates areas with extensive coverage by existing regional arrangements (cross-border paperless trade, cyber security, e-commerce, digital payment, digital ID, and personal data protection) and areas and issues that are less regulated by regional arrangements (digital inclusivity, emerging technology, and climate). Indonesia should map out areas of strength and weakness in domestic regulation and system interoperability on the possible content of DEFA. For the areas of strength, where domestic laws and system interoperability exist, or joint commitments and initiatives for harmonization within the region are underway, the directorate should push for strong cooperation and binding commitments in the agreement. Meanwhile, a more moderate approach should be proposed for less developed areas regarding regulatory frameworks and interoperability. This policy brief identified strengths in data protection, digital payment, cross-border e-commerce, digital ID, and cross-border paperless trade. For each area, the following actions should be considered during negotiations: First, concerning cross-border e-commerce, Indonesia should suggest the avoidance of unnecessary barriers related to electronic commerce within each ASEAN Member States (AMS) domestic regulation. Second, regarding cross-border data flow, Indonesia should propose removing restrictions on data transfers across borders, especially when the purpose is to facilitate business activities. Third, regarding the digital ID component, Indonesia should advocate for establishing common principles for introducing digital ID systems or mutual recognition of digital IDs that all AMS can utilize. Fourth, concerning paperless trade, Indonesia should recommend fully implementing e-form D to enhance trade efficiency within ASEAN. Lastly, Indonesia should promote the interoperability and interconnection of digital payment systems in the ASEAN region

Understanding the Regulatory Environment for ICT Infrastructure in Papua New Guinea: The Integrated Government Information System (IGIS) Case Study

The Integrated Government Information System (IGIS) is a private government network comprising several components such as records and data management services, government email, civil registration, the IGIS portal, IGIS data center & disaster recovery center, IGIS network, and a project management office. The project sought to overcome the dispersed nature of government’s public data across Papua New Guinea’s (PNG) 47 departments. This would enable better collaboration and coordination between government agencies by facilitating a centralized platform for sharing, archiving, and storing data, thus enhancing data centralization and optimizing computing costs. This case study provides an analysis of the current regulatory environment in which the IGIS project was planned, funded, and implemented in PNG. While the project aimed to streamline public data management, the case study finds governance gaps in security, transparency, and financing aspects of IGIS implementation. The IGIS project came from a plan to create a private government network for the PNG government that connects all its departments and agencies in a single system. The project aimed to build a broadband infrastructure and a main data center to enable integrated and efficient government operations. It was also intended to improve inter-governmental cooperation and information management in a secure environment. The project was implemented by the Department of Communications and Information Technology (DICT) alongside sectoral government agencies in Port Moresby, with the main data center being hosted in the Telikom Rumana building in Waigani, Port Moresby. The first phase (2011-2014) of the IGIS project was the construction of the national data center and establishment of a secure high-speed government network within it. It was funded through a RMB 359 million (or US$53 million) government concessional loan provided by the China Exim Bank. These funds were used to support a commercial contract between Telikom PNG Ltd—a state-owned telecommunications company in PNG—and Huawei Technologies Co., Ltd. for the project’s execution. The primary contractors for the IGIS project were Huawei Technologies Co., Ltd, Telikom PNG Ltd, and PNG DataCo. However, the second phase (2018) of the IGIS project was not fully carried out and well-executed. The project began in June 2011 and concluded in July 2014, but the data center in Port Moresby did not become operational until 2018. DICT acknowledged that the IGIS project had suffered from poor management and is seen as a “failed investment.” The project lacked transparency in its management. The public could not access key information about the project, such as contracts, loan terms, technical feasibility, and audit reports. Some information was only available on third party websites. There was no information on how the contractors were selected and whether environmental and social impact was conducted. This is mainly caused by the absence of a legal framework, such as the Right to Information (RTI) Law, that obliges government and business entities to disclose important public information. There is also no central government data storage system that can simplify data management and ensure public access through an e-government portal. Furthermore, an unpublished report commissioned by PNG’s National Cyber Security Centre (NCSC) and funded by the Australian Department of Foreign Affairs and Trade (DFAT) highlighted alleged security vulnerabilities within the national data center infrastructure and insufficient firewall settings making it vulnerable to hacking and surveillance. In light of the above mentioned issues, the study recommends the following main policy recommendations for future projects: (1) uphold principles of good governance and transparency; (2) establish an ICT working group to strengthen inter-agency collaboration; (3) adopt and implement a Right to Information law; (4) apply effective risk management standards during the project lifecycle; and (5) improve fiscal discipline and seek sustainable financing models for ICT projects. Finally, reflecting on the implementation challenges encountered during the IGIS project is essential as the government gears up to procure and implement future similar projects, including the newly-introduced PNG Government Technology Stack 2023. By learning from past challenges and addressing the issues that arose during the IGIS project, the government can improve the accountability and security of its digital transformation agenda

Menghubungkan yang Tak Terhubung: Pelajaran untuk Meningkatkan Internet Cepat dan Reliabel dari Kabupaten Sumba Barat Daya

Pemerintah Indonesia telah memprioritaskan konektivitas digital yang inklusif demi meningkatkan kemakmuran ekonomi negeri ini. Terlepas dari sejumlah kemajuan yang telah dicapai dalam mewujudkan transformasi digital yang inklusif, Indonesia masih menghadapi kesenjangan digital (digital divide) antar daerah. Indeks Pembangunan Teknologi Informasi dan Komunikasi (TIK) yang dibuat oleh Badan Pusat Statistik (BPS) (2021) menunjukkan adanya kesenjangan besar dalam hal akses dan infrastruktur, penggunaan TIK, serta keahlian TIK antara Indonesia wilayah barat, khususnya Pulau Jawa, dan sebagian besar wilayah timur. Indeks Pembangunan TIK di wilayah-wilayah timur, seperti Nusa Tenggara Timur (NTT) dan Papua, masih relatif rendah, dengan nilai yang berkisar pada 3,35 hingga 5,00 dari 10,00 (nilai dari 2,25 hingga 5,00 termasuk dalam kategori pembangunan TIK rendah) untuk periode 2020–2021. Sementara itu, daerah-daerah yang lebih berkembang—Jakarta dan Yogyakarta—memiliki nilai di atas 7,00, dan Jakarta menjadi satu-satunya provinsi dengan nilai lebih tinggi dari 7,5. Ketiadaan konektivitas internet yang berkecepatan tinggi dan dapat diandalkan bagi masyarakat miskin di perdesaan dapat memperparah ketimpangan. Maka dari itu, perhatian terhadap daerah-daerah yang terbelakang harus dijadikan prioritas utama dalam agenda pemerintah agar dapat mencapai transformasi digital yang inklusif. Kementerian Komunikasi dan Informatika (Kemenkominfo) perlu meninjau ulang strategi yang saat ini digunakan untuk memastikan kemudahan akses internet bagi daerah-daerah terpencil dan perdesaan di Indonesia. Peraturan Pemerintah (PP) No. 46/2021 tentang Pos, Telekomunikasi, dan Penyiaran ditujukan untuk meningkatkan investasi swasta di sektor telekomunikasi. Namun, berbagai isu yang ada pada Badan Aksesibilitas Telekomunikasi dan Informasi (BAKTI), program-program infrastruktur TIK, dan peraturan daerah yang bertumpang tindih mengurangi kemudahan berusaha (ease of doing business) sektor telekomunikasi serta menghambat pembangunan TIK di daerah-daerah yang terbelakang. Reformasi regulasi, dari tingkat pusat hingga daerah, dibutuhkan untuk menguraikan berbagai isu yang ada. Dari sisi penawaran, para penyelenggara telekomunikasi mengkhawatirkan rendahnya keuntungan dari investasi pada penetrasi pita lebar (broadband) di daerah-daerah yang terbelakang. Dari segi permintaan, masyarakat perdesaan lebih tidak mampu menjangkau internet pita lebar tetap (fixed broadband) daripada pita lebar bergerak (mobile broadband). Banyak praktik yang dijalankan pada tingkat pemerintah daerah menghambat pembangunan TIK akibat adanya biaya-biaya yang tidak berlandasan jelas serta rumitnya prosedur pungutan dan perizinan daerah. Makalah ini juga menyoroti kelemahan BAKTI dalam hal transparansi dan kolaborasi dengan pemangku-pemangku kepentingan yang relevan dalam melaksanakan program-program digital dan TIK. Makalah ini menyajikan sejumlah rekomendasi terkait perluasan akses internet berkapasitas dan berkecepatan tinggi melalui teknologi fixed broadband ke daerah-daerah perdesaan yang kurang terjangkau (umumnya disebut sebagai daerah tertinggal, terdepan, dan terluar, atau daerah 3T). Dengan mempelajari studi kasus unik dari Kabupaten Sumba Barat Daya, makalah 10 ini merekomendasikan agar (i) Kemenkominfo dan BAKTI, sebagai pemimpin sektor digital, merumuskan peta jalan investasi terpadu melalui pendekatan partisipatoris yang bersifat bawah ke atas (bottom-up); (ii) Kemenkominfo dan BAKTI membentuk kelompok kerja TIK guna meningkatkan kolaborasi dan transparansi; dan (iii) Kemenkominfo, bekerja sama dengan kementerian-kementerian yang relevan, menghapuskan aspek-aspek yang menghambat kemudahan berusaha dalam pungutan dan perizinan daerah bagi sektor telekomunikasi dengan menyediakan pedoman yang jelas kepada pemerintah daerah

Strategi Indonesia untuk Bergabung dalam Perjanjian Kerangka Kerja Ekonomi Digital ASEAN

Catatan kebijakan ini menyajikan elemen-elemen yang mungkin akan dibahas dalam Perjanjian Kerangka Kerja Ekonomi Digital ASEAN (ASEAN Digital Economy Framework Agreement atau DEFA) dengan memetakan elemen-elemen ekonomi digital yang relevan dari berbagai perjanjian yang sudah ada sebelumnya. Elemen-elemen yang sudah secara komprehensif dibahas dalam perjanjian regional di antaranya adalah perdagangan nirkertas [paperless] lintas negara, keamanan siber, e-commerce, pembayaran digital, identitas kependudukan digital [IKD], dan perlindungan data pribadi, sedangkan elemen yang belum banyak diatur dalam perjanjian regional di antaranya adalah inklusivitas digital, teknologi yang sedang dikembangkan [emerging technology], dan isu perubahan iklim. Indonesia perlu mengidentifikasi kekuatan dan kelemahannya dalam hal kesiapan peraturan domestik dan interoperabilitas sistem pada elemen-elemen potensial yang akan dimuat di dalam DEFA. Untuk elemen-elemen yang sudah didukung oleh peraturan domestik dan interoperabilitas sistem, atau yang sudah dimuat dalam komitmen bersama tingkat ASEAN, Direktorat Perundingan ASEAN Kementerian Perdagangan (Kemendag) perlu mendorong adanya kerja sama yang lebih kuat dan komitmen yang lebih mengikat dalam DEFA. Sementara itu, pendekatan yang lebih moderat seyogianya diusulkan untuk isu-isu yang kerangka regulasi dan interoperabilitasnya belum terlalu dikembangkan secara domestik. Catatan kebijakan ini menunjukkan bahwa Indonesia kuat pada elemen perlindungan data, pembayaran digital, e-commerce lintas negara, IKD, dan perdagangan nirkertas lintas negara. Berikut adalah tindakan yang perlu dipertimbangkan dalam negosiasi DEFA terkait elemen-elemen tersebut: - Pertama, terkait e-commerce lintas negara, Indonesia perlu mendorong agar negara anggota ASEAN menghindari adanya regulasi domestik yang dapat menghambat perdagangan elektronik lintas batas. - Kedua, terkait transfer data lintas negara, Indonesia perlu mengusulkan penghapusan hambatan transfer data lintas negara, terutama ketika transfer data tersebut ditujukan untuk memfasilitasi kegiatan bisnis. - Ketiga, terkait komponen IKD, Indonesia perlu mendorong penetapan prinsip-prinsip umum sistem IKD di lingkup ASEAN. Indonesia juga perlu mendorong terbentuknya mutual recognition arrangement (MRA) terkait IKD— yakni, sistem yang saling mengakui validitas IKD satu sama lain—yang dapat diterapkan seluruh negara anggota ASEAN. - Keempat, terkait perdagangan nirkertas, Indonesia perlu merekomendasikan pemberlakuan penuh e-Form D untuk meningkatkan efisiensi perdagangan di ASEAN. - Terakhir, Indonesia perlu mendorong interoperabilitas dan interkoneksi sistem pembayaran digital di kawasan ASEAN

Logistics Costs of Rice and Soybean: Issues, Challenges, and the Impact of Regulations

This paper focuses on the challenges in the logistics of rice and soybeans in Indonesia. Rice distribution is complicated because rice production is concentrated in Java, while its consumption is high all over Indonesia. Soybeans are predominantly import and must contend with both import logistics and domestic logistics challenges. At the national level, logistics roughly contributes 21–23% of Indonesia's gross domestic product (GDP), much higher than in other developing countries. Transportation and inventory costs dominate logistics costs in Indonesia, while administrative costs such as fees and charges at the port contribute less than 6%. High logistics costs are passed on to consumers, raising the prices of goods, including staple foods. Compared to the national average for all goods, the transportation and logistics of rice and soybeans experience a higher burden of administrative costs, but transportation and industry costs remain important. Many of these cost components are affected by government policies and regulations, introducing monetary and time costs that affect the logistics of these goods as they move through their supply chains. Programs to reduce logistics costs have mostly focused on eliminating price disparities affecting essential goods between the western and eastern parts of Indonesia. This task is difficult to achieve due to Indonesia’s archipelagic geography and unequal economic development. The effort to achieve more equal prices through the Sea Highway and public service obligation (PSO) programs for state-owned enterprises has experienced only mixed success and accommodates the high costs rather than addressing their underlying causes. We identify 24 regulations from nine logistics processes and their associated logistics costs. Rice and soybean logistics expenses are affected by regulation that affects logistics costs related to warehousing, shipping, and trucking. Land transportation (trucking) is the largest contributor to transportation costs, which can be attributed to monetary and time costs created by regulations regarding a value-added tax on some services, mandatory appointment of local freight forwarding services, and the weighing of vehicles at a weigh station. Sea transportation and administrative costs are also important. To reduce the impact of regulations on the logistics costs of rice and soybeans, we recommend five changes: • In the port, the government through the Ministry of Transportation (MOTr) can set a port service productivity threshold and provide incentives for ports that can stay within the threshold in order to offer competitive rates and quality of port services. • During the import process and customs clearance, system integration with customs authorities in soybean-exporting countries should be pursued to cut the time in the issuance of certificates of origin. A special quarantine method using quarantine ships or floating labs should be designated by the Ministry of Agriculture (MOA) to allow the process to start before ships enter the port • The mandatory use of local freight forwarding services should be relaxed to allow companies outside the local area to carry out freight forwarding when services are not available in the area. • Finally, food reserve policy should incorporate incentives, such as interest subsidies, for buying or releasing food stocks that should be provided for both public (Bulog and food state owned enterprises (SOEs)) and private actors

The Importance of Trade For MSEs in The Indonesian F&B Sector

In 2019, the food & beverage (F&B) industry made the largest contribution to the nation’s gross domestic product (GDP) and grew by an average of 7.78%, the highest growth among non-oil and gas industries. It is also the only non-oil and gas industry experiencing a trade surplus. In 2019, imports by this industry decreased by an average of 0.1%, while annual export growth averaged 0.7%. The F&B sector was the largest employer of Indonesian workers outside the oil and gas sector in 2019. While around a third (36%) of workers in large and medium-sized F&B companies are female, they account for more than half of workers (56% in the food industry and 58% in the beverage industry) in micro and small enterprises (MSEs). Intermediate goods are important for the F&B industry, and importing them increases both productivity and exports, but imports are politically unpopular among ministries governing the F&B sector. The Ministry of Agriculture seeks to reduce imports with the goal of supporting farmers and their welfare. The Ministry of Industry (MoI) aims to reduce reliance on imported intermediate goods for the F&B sector by strengthening upstream industries. This paper shows how imports of intermediate goods benefit F&B industries in terms of output and employment. We estimate that among small and micro-sized F&B firms, increased imported intermediate inputs will lead to increases in output, value added, and wages, as well as improvement on intensive margins. These findings show why the government’s policy of discouraging imports to support Indonesian firms is misguided, potentially harming the industry it’s meant to help. This paper offers six policy recommendations: First, MoI should review its import substitution policy in food production and provide a rationale for pairing import reduction targets with F&B industry growth. Second, the government should study the impact of trade on the F&B manufacturing. Third, the government should separate data on the palm oil industries from the F&B industries generally. Fourth, the government should improve data quality and ensure these data are available to the public. Fifth, the government should conduct a real-time evaluation of its Commodity Balance (Neraca Komoditas) policy and domestic downstream policies. Finally, MoI should consider evaluating its domestic downstream policies to pursue its goals with tools other than trade policy

Membedah Kerangka Regulatory Sandbox Industri Fintech Indonesia: Manajemen Risiko dan Pentingnya Privasi Data

Untuk mengakomodasi industri teknologi finansial (fintech) Indonesia yang berkembang pesat, regulator memilih menerapkan mekanisme regulatory sandbox atau ruang uji coba terbatas yang menjadikan pengujian langsung sebagai dasar yang mendorong respons regulasi negara terhadap inovasi. Meski memberikan manfaat-manfaat yang jelas, regulatory sandbox dapat menjadi instrumen regulasi yang berisiko. Makalah ini menilai kelebihan dan kekurangan regulatory sandbox, dengan fokus pada sektor inovasi keuangan digital (IKD) yang menjadi tanggung jawab Otoritas Jasa Keuangan (OJK). Makalah ini berfokus pada tata kelola sandbox, mekanisme manajemen risikonya, dan koregulasi (pengaturan bersama). Sandbox seharusnya dievaluasi berdasarkan dampaknya terhadap perusahaan-perusahaan yang mengikuti prosesnya, tetapi informasi ini tidak dikumpulkan di Indonesia. Sebaliknya, makalah ini mengkaji (i) sejauh mana teknologi, produk, dan layanan inovatif telah dikembangkan sesuai potensi maksimal perusahaan; (ii) bagaimana perusahaan-perusahaan yang berpartisipasi menghadapi mekanisme pascakeluar (post-exit) dari sandbox; (iii) sejauh mana sandbox menyediakan mekanisme untuk dialog dan adaptasi solusi legislatif; dan (iv) bagaimana risiko dikelola dalam sandbox. Kami mengidentifikasi tiga tantangan terkait keefektifan sandbox IKD di Indonesia: penciptaan peluang berusaha yang tidak setara (uneven playing field) bagi para penyelenggara IKD, kurangnya kejelasan mengenai hasil yang diinginkan dan bagaimana perusahaan seharusnya keluar dari sandbox, serta sumber daya yang kurang memadai agar sandbox dapat berjalan sesuai yang diharapkan. Tiga tantangan ini meningkatkan potensi bahwa kerangka sandbox menciptakan ketidakpastian hukum, menambah biaya yang membebani, dan gagal melindungi konsumen dari kerugian. Perbaikan regulasi dan tata kelola sangatlah penting untuk memastikan keefektifan kerangka sandbox. Untuk mewujudkan perbaikan tersebut, kami mengusulkan empat rekomendasi kebijakan berikut. - Undang-Undang (UU) tentang Keuangan (UU Pengembangan dan Penguatan Sektor Keuangan atau UU P2SK) yang baru saja disahkan perlu digunakan untuk mendukung kerangka sandbox OJK dan memberikan batasan yang jelas untuk menerbitkan izin, mendefinisikan tujuan izin OJK, serta memperbaiki iklim regulasi berdasarkan input dari sandbox. - Kerja sama antarlembaga dibutuhkan dan seyogianya dijalin melalui kepemimpinan otoritas berwenang dan implementasi UU P2SK. - Pendekatan koregulasi antara regulator, kementerian yang relevan, dan Asosiasi Fintech Indonesia (AFTECH) perlu diperkuat guna meningkatkan kolaborasi terkait peran petugas perlindungan data, penilaian risiko, mekanisme keluar dari sandbox, serta penetapan dan evaluasi tujuan-tujuan sandbox. - OJK harus mengalokasikan sumber daya yang memadai untuk proses sandbox, khususnya komite sandbox dan perwakilan penyelenggara yang mendaftar ke sandbox, guna memastikan bahwa OJK mampu memenuhi kewajiban pengawasannya dalam lanskap fintech

Policy Barriers to a Healthier Diet: The Case of Trade and Agriculture

Improving nourishment and diets has become a priority for Indonesia. The stunting rate among under-five children in Indonesia at 24% is considered high and deserving of serious attention. Improving dietary diversity among children is essential to reduce the stunting rate and prevalence. Unfortunately, the Desirable Dietary Pattern (DDP) score and food supply indicate a typical Indonesian diet is severely dominated by rice and lacking in alternative sources of carbohydrates and protein. The high cost of healthy diets further complicates nutritional fulfillment as global food prices have experienced a recent sharp increase. Realizing the importance of nutrition fulfillment for human capital, the government has set a target of reducing the stunting rate to 14% by 2024. A number of strategies and action plans have been issued to coordinate efforts across ministries: National Strategy to Accelerate Stunting Reduction, National Action Plan for the Acceleration of Stunting Reduction in Indonesia 2021– 2024 (RAN-PASTI), and National Action Plan for Food and Nutrition 2020–2024 (RAN-PG). Targets and activities in these documents reflect the multidimensional nature of food and nutrition issues, but overlook the effects of trade policy on food affordability and the agricultural policy bias towards a few staple commodities, especially rice. Realizing the importance of nutrition fulfillment for human capital, the government has set a target of reducing the stunting rate to 14% by 2024. A number of strategies and action plans have been issued to coordinate efforts across ministries: National Strategy to Accelerate Stunting Reduction, National Action Plan for the Acceleration of Stunting Reduction in Indonesia 2021– 2024 (RAN-PASTI), and National Action Plan for Food and Nutrition 2020–2024 (RAN-PG). Targets and activities in these documents reflect the multidimensional nature of food and nutrition issues, but overlook the effects of trade policy on food affordability and the agricultural policy bias towards a few staple commodities, especially rice. To address these barriers, the National Strategy to Accelerate Stunting Reduction, RAN-PASTI, and RAN-PG should mandate a systematic review and impact assessment of trade and agricultural policies. The review and assessment should be the first step toward removing unnecessary non-tariff measures to improve the affordability of food in Indonesia and creating a crop-neutral agricultural policy that allows farmers to respond to market signals and avoids incentives and investments biased towards the production of a few staple crops to improve the diversity of Indonesia’s food supply

Biaya Logistik Beras dan Kedelai: Isu, Tantangan, dan Dampak Kebijakan

Makalah ini berfokus pada tantangan-tantangan yang ada di Indonesia terkait logistik beras dan kedelai. Distribusi beras bersifat sangat kompleks karena produksinya terkonsentrasi di Pulau Jawa, sementara konsumsinya tinggi di seluruh wilayah Indonesia. Sementara itu, sebagian besar kedelai merupakan hasil impor dan harus berhadapan dengan tantangan-tantangan logistik impor maupun logistik domestik. Di tingkat nasional, biaya logistik mencapai kurang lebih 21–23% dari produk domestik bruto (PDB) Indonesia–jauh lebih tinggi dibandingkan negara-negara berkembang lainnya. Biaya transportasi dan persediaan (inventory) merupakan dua komponen terbesar dalam biaya logistik di Indonesia, sedangkan biaya administrasi seperti tarif dan pungutan di pelabuhan hanya membentuk kurang dari 6%. Biaya logistik yang tinggi pada akhirnya membebani konsumen karena meningkatkan harga barang, termasuk bahan-bahan pangan pokok. Jika dibandingkan dengan rerata nasional seluruh barang, transportasi dan logistik beras dan kedelai menanggung biaya administrasi yang lebih tinggi, tetapi biaya transportasi dan industri tetap penting. Banyak dari komponen-komponen biaya tersebut merupakan imbas dari kebijakan dan regulasi pemerintah, termasuk biaya moneter dan waktu yang memengaruhi logistik beras dan kedelai seiring bergeraknya kedua komoditas tersebut di rantai pasok. Program-program yang ditujukan untuk mengurangi biaya logistik umumnya dititikberatkan untuk menghapus disparitas harga barang-barang esensial antara wilayah barat dan timur Indonesia. Target ini berat untuk dicapai akibat kondisi geografis Indonesia yang berbentuk negara kepulauan dan adanya kesenjangan pembangunan ekonomi. Upaya untuk menekan disparitas harga melalui program Tol Laut dan kewajiban pelayanan publik (public service obligation atau PSO) yang dimandatkan kepada badan- badan usaha milik negara tidak sepenuhnya berhasil dan hanya mengatasi harga yang tinggi, alih-alih menyelesaikan akar penyebabnya. Kami mengidentifikasi 24 peraturan dari 9 proses logistik dan biaya-biaya logistik terkait. Biaya logistik beras dan kedelai dipengaruhi oleh peraturan-peraturan yang berhubungan dengan biaya logistik terkait gudang dan angkutan laut (shipping) dan darat (trucking). Angkutan darat adalah penyumbang terbesar biaya transportasi yang disebabkan oleh biaya moneter dan waktu karena adanya peraturan yang berlaku terkait pajak pertambahan nilai untuk sejumlah jasa, kewajiban menggunakan jasa pengurusan transportasi (freight forwarding) setempat, dan penimbangan kendaraan di stasiun jembatan timbang. Biaya transportasi laut dan biaya administrasi juga penting. Untuk mengurangi dampak regulasi terhadap biaya logistik beras dan kedelai, kami merekomendasikan lima perubahan: • Pemerintah, melalui Kementerian Perhubungan (Kemenhub), dapat menetapkan batas minimal produktivitas jasa kepelabuhanan dan memberikan insentif kepada pelabuhan-pelabuhan yang dapat menjaga produktivitas di atas batas tersebut untuk menawarkan tarif dan kualitas pelayanan kepelabuhanan yang kompetitif. • Selama proses impor dan penyelesaian dokumen kepabeanan, integrasi sistem dengan otoritas kepabeanan di negara-negara pengekspor kedelai perlu dilakukan untuk menghemat waktu penerbitan surat keterangan asal. • Kementerian Pertanian (Kementan) perlu menetapkan metode karantina khusus menggunakan kapal karantina atau laboratorium apung agar prosesnya dapat dimulai sebelum kapal memasuki pelabuhan. • Kewajiban untuk menggunakan jasa pengurusan transportasi setempat perlu dilonggarkan untuk memungkinan perusahaan di luar suatu wilayah melakukan kegiatan pengurusan transportasi apabila jasa tidak tersedia di wilayah tersebut. • Yang terakhir, kebijakan cadangan pangan perlu dipadukan dengan insentif, seperti subsidi bunga, untuk membeli atau melepaskan stok pangan yang ditujukan untuk aktor publik (Badan Urusan Logistik [Bulog] dan badan usaha milik negara [BUMN]) dan swasta