Jakarta (ANTARA) - The government has issued a ministerial regulation on inter-island trade with the aim of enhancing the efficiency of trade and logistics, Trade Minister Budi Santoso said on Tuesday.

He said that Trade Minister Regulation No. 27 of 2024 is expected to create a comprehensive single database on inter-island trade, enabling Indonesia to formulate accurate import policies.

Integrated data allows the government to better understand the production and consumption rates of goods in each region, he added.

The government is expected to identify regions experiencing a surplus or deficit in goods production, particularly those viewed as essential, to prevent over-importation on grounds of lack of adequate domestic production data.

"With better data, we will be able to make proper judgment on our need for imported goods," Santoso said. "We cannot afford to carelessly declare a deficit in a region without having a clear piece of information on the actual conditions."

Besides being used as a reference in the formulation of import policies, the new inter-island trade regulation aims at assisting the government in developing policies on stimulating economic growth in less-developed regions by improving national logistics performance, he added.

Santoso cited data from Statistics Indonesia (BPS) in 2023, highlighting a clear disparity in trade volume among Indonesian regions.

The national logistics must be improved to close the price gap for staple commodities between regions, he pointed out.

According to Santoso, his ministry issued the new regulation to streamline inter-island trade governance and monitor goods distribution.

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