Ministry of Transportation Strengthens Multimodal Transport for Logistics

The government, through the Ministry of Transportation (“Kemenhub”), is preparing regulations to strengthen the role of Multimodal Transport Business Entities (“BUAM”) in national logistics transportation. This is outlined in the draft Regulation of the Minister of Transportation (“Regulation”) on the Operation and Management of Multimodal Transport.

“So, moving forward, BUAMs will be strengthened. Companies will still be able to operate their own Transportation Management Services (“JPT”) and maintain their own warehousing. However, for national-scale transportation, they must have a BUAM,” said Director-General of Transportation Integration and Multimodal Transport, Risal Wasal, to Hukumonline.

Furthermore, logistics transportation with a national scope is required to use the BUAM licensing scheme with a single multimodal transport document. This provision aims to improve the traceability of goods movement, even when moving through various modes of transportation.

In addition, this regulation will also align business classifications with the latest Indonesian Standard Industrial Classification (“KBLI”), which is based on the International Standard Industrial Classification (“ISIC”) standards. This policy is part of the follow-up to discussions on the Draft Bill on National Transportation System (“Draft Bill”), which is aimed at ensuring service integration, accessibility, and logistics cost efficiency.