Jakarta takes on suppliers with own logistics service

The Jakarta Government has launched its own logistics service that will pick up and deliver documents.

The service, called AJIB, is run by the city’s One-Stop Integrated Services Agency (PTSP), which handles permit administration. The agency has chosen to form its team to run AJIB, hiring 150 motorbike drivers, rather than using a logistics supplier.

“They not only deliver the documents but also process and verify the documents. So that’s why we cannot give it to a courier agency”, PTSP head, Edy Junaedi, told GovInsider.

A driver will pick up the documents required to apply for a permit, and then deliver the documents back to the customer once the application has been processed. Residents can call 164 to request for a pick-up and a driver will be there in less than half an hour.

AJIB started with delivery for six types of permits on 12 January, but citizens have demanded more. In just two weeks, it has grown to cover up to 80 different kinds of permits, Edy said.

“Now [we cover] almost all of the investment and business permits.” The service is aimed at business owners, he said. Businessmen pay a middleman called ‘calo’ to handle the permit applications on their behalf.

"The call has become an informal industry of sorts in Jakarta," Edy said.

“The middlemen take money from the business owners. That is a not a good situation for us. We decided to design a new system to cut the middleman out and make sure the process is more efficient."

The delivery service gets up to 50 customers a day, and is expected to grow to 150 daily customers next month.