Top-45 Award for Indonesia's Public Service Innovation Competition 2020

Top45 Award for Indonesia's Public Service Innovation Competition from The Ministry of Administrative and Bureaucratic Reform of Indonesia.

Indonesia Gateway (I-Gateway) as Hub for ASEAN Trading Document

The Indonesian Government has initiated “I-Gateway” as Hub for ASEAN Trading Document, enabling electronic data exchange such as certificates of origin to ensure authenticity, reduce paper work and eliminates redundancy. I-Gateway connects both domestically among national agencies and internationally with other countries. It validates and reconciles documents efficiently, to ensure its security as well as business process simplification and harmonization, aiming to higher ease of doing business.

Innovation Summary

Innovation Overview

Previously, conventional trade transactions required the submission of physical documents to various government agencies, which have an impact on the timing of the cargo clearance process. This issue raises the idea for ASEAN Member States to implement the ASEAN Single Window, which collaborates with the National Single Window of each country as a hub for to exchange the electronic trade documents. The Ministry of Finance of the Republic of Indonesia followed up on this by initiating the development of “I-Gateway” as a model for electronic data exchange within ASEAN. Domestically, I-Gateway also reconcile and validate trading documents from the Ministry of Trade and Customs and Excise in order to ensure data authentication and business process alignment.

In its implementation, I-Gateway has six main objectives, namely:
1. Procedure simplification to reduces process redundancy, in accelerating customs clearance and cargo clearance activities,
2. Reduce administration cost, postal service fees, and operation cost (third-party fee),
3. Risk profile management application in regards to reduce opportunity of fraud,
4. Eliminate data duplication and human-error in improving data validity and accuracy,
5. Eco-friendly procedure, through reducing reliance on paper-based documents, and
6. Optimizing state revenue

In previous conditions, exporters had to send trade documents to importing countries as a requirement of international trade. These trade documents are then manually validated by government agencies to ensure their authenticity. In this conventional process, there are potential risks such as delays in receiving physical documents in the importing country, which causes goods congestion at the port resulting in additional costs, and manual validation has the potential for human error and fraud.

In the I-Gateway implementation, exporters only need a “one time” data submission to be transmitted through I-Gateway inside the National Single Window System of the importing country. Then, the importing country system forward the electronic data to the related government agencies. Under this mechanism, physical documents are no longer required. In addition, cargo clearance and customs clearance process are faster and its data/information authentication can be guarantee.

Throughout 3 years of implementation, I-Gateway has benefited both parties from private and public sectors. Traders able to take advantage from trade cost efficiency, namely: administration cost, courier fees, and operation cost (third-party fee), with approximately IDR 66 billion savings from total export cost. Whereas, in manual transaction the cost for all of the above process need to be bare by traders in order to enjoy lower trade tariff. Since traders will no longer need to wait for the physical document arrived, I-Gateway utilization able to goods clearance timing for 2 days in average.

Meanwhile, for the Government officials, I-Gateway enables trade data consolidation and traceability under single platform. I-Gateway has successfully issued more than 1 million electronic trading documents, which being exchanged with 9 other ASEAN countries since 2018. The data repository also consider as invaluable assets for the nation in order to conduct evaluation and data analysis towards trade transaction. I-Gateway also proven to optimizing state revenue, by ensuring data/information quality and authenticity, which shown from the document rejection rate due to data errors had decline up to 80 percent.

I-Gateway can be seen as a very flexible mechanism and it is possible to replicate its methodology towards other electronic data exchange for other trade documents, such as: quarantine documents, logistics documents, and other certificates, both in domestic and international. Currently, this mechanism already applied for bilateral transaction between Indonesia and South Korea, China and Australia. Meanwhile, I-Gateway has also succeeded to become the B2G platform for logistics documents integration, in collaboration with other logistics partners in regards to expedite goods clearance from Port.
In the future, I-Gateway has great potency to be replicated in a wider scope as international electronic data exchange platforms, such as: logistics platform, transportation platform and many others.

Innovation Description

Innovation Development

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Year: 2018
Level of government: National/Federal government

Status:

  • Diffusing Lessons - using what was learnt to inform other projects and understanding how the innovation can be applied in other ways

Innovation provided by:

Files:

  • I-Gateway Supporting Data Consist of overall I-Gateway Implementation Summary, Monitoring Dashboard images, National Replication and Publication History.

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