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101212 sislognas, ict tools to reduce cost,time and uncertainty

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101212 sislognas, ict tools to reduce cost,time and uncertainty

  1. 1. Coordinating Ministry for Economic Affairs Republic of IndonesiaThe Challenge of Implementation of Presidential Regulation No.26/2012 on theBlueprint of Development of National Logistics SystemUse of ICT As A Driver Toward: “Locally Integrated, Globally Connected for National Competitiveness and Social Welfare” Tim Kerja SISLOGNAS/ Indonesian National Logistics Team SISLOGNAS Office Jakarta, 10 December 2012 1
  2. 2. Outline1. Background: Issues Leading to the Issuance of the National Logistics System (SIStem LOGistik NASional/SISLOGNAS) Blueprint2. Presidential Regulation No.26/2012 on the Blueprint for Development of the SISLOGNAS*  Implementing Structure  Main Features  SISLOGNAS and MP3EI on PPP Scheme  Actions Plan 2011 – 20253. Challenges of Implementation 2012 – 2015  Among Others ---- No. 5: The National e-Logistics system (INALOG) is developed and No. 17: Dry ports are operating efficiently4. Use of ICT As A Driver Toward: “Locally Integrated, Globally Connected for National Competitiveness and Social Welfare”  Maybe they are not “aple-to-aple” but “cargo release/dwell time” at Tanjung Priok by: (a) JICA 2004-2005 Study (b) The World Bank 2009, 2011 – June 2012 Studies (c) The Use of ICT (KOJA & EDII): i-CARES/CargoLink, in the case of Toyota, Nov 2012 2*English Unofficial Translation is available and will be sent through e-mail
  3. 3. 1. BackgroundPresidential Instruction No. 5/2008 on Focus of Word Bank LPI 2010 World Bank LPI 2012Economic Programs 2008-2009, among others: Lower-Middle Income Lower-Middle Income– Chapter II. Movement of Goods and Customs Item C. 1(a): 2nd Stage implementation of Country LPI Rank Country LPI Rank Indonesian National Single Window (INSW); Item C.2: Begin to prepare the SISLOGNAS China 27 India 46 Blueprint. Morocco 50 Thailand 35– Chapter VI. Commitment to Establish ASEAN Philippines 44 Philippines 52 ECONOMIC COMMUNITY (AEC) 2015 India 47 Vietnam 53 Item 7(vi): Ratification of the Agreement for Egypt, Arab Rep. 57 Tunisia 61 the Integration of Priority Sectors (PIS) by 2013, where Logistics is the 12th Sector. Honduras 70 Indonesia 59 Ecuador 71 Yemen, Rep. 63ASEAN Economic Community 2015 Blueprint, Indonesia 75 Ukraine 66Signed by Leaders on 13th ASEAN Summit in Paraguay 76 Pakistan 71November 2007 – ASEAN Single Market andSingle Production Base Syrian Arab Guatemala 74 Republic 80 3
  4. 4. 2. Perpres No.26/2012 (1): Implementing Structures Signed: 5 March 2012; Entry-into-force: 5 March 2012 Establishes the SISLOGNAS Blueprint – as an integral part of the Perpres – and: ― It is prepared by collaboration of private sectors (associations), academician, practitioners and ministries/government agencies’ representatives (40:40:20); ― It is a reference on logistics development for relevant stakeholders and on policy coordination and National Logistics System development. For the business sector, it is to support them to improve their competitiveness, more investment opportunities to micro, small and medium enterprises and more opportunities for national logistics actors and service providers to establish cooperation on a global scale. ― Shall be referred by ministers, heads of non-ministerial agencies, governors and regents/mayors in developing policies and work plans related to the development of the National Logistics System in their respective field of tasks, to be set out in the strategic plans of each respective ministries/non-ministerial government agencies and local governments as part of the development planning document. ― Main Approaches: (a) Supply Chain Management, (b) Paradigm: Ship follows the trade & ship promotes the trade, (c) Implemented through 6 (six) key drivers. The implementation shall be coordinated by the Committee on Acceleration and Expansion of Indonesia’s Economic Development 2011-2025 (KP3EI) established by Presidential 4 Regulation Number 32 Year 2011 on MP3EI 2011-2025.
  5. 5. 2. Perpres No.26/2012 (2): Implementing Structure An [implementing] Working Unit may be established the Coordinating Minister for Economic Affairs (CMEA) acting as KP3EI’s Executive Chairperson, to: (1) Coordinate and monitor the implementation of the SISLOGNAS Blueprint, and to serve as a Damage Control Unit; (2) Evaluate implementation progress of all action plans, measure whether efforts and actions taken have been effective and produced proper results and benefits to determine achievement of milestones and key performance indicators (KPI) of all related stakeholders; (3) Report on the progress of SISLOGNAS Development, including taking necessary steps to resolve emerging issues, including cross sectoral and regional obstacles, and (4) [for the long-term and medium-term purposes], conduct studies and recommend whether the government should establish a permanent institution to coordinate the SISLOGNAS Development.The CMEA issued Decree No.KEP-49/M.Ekon/5/2012 on 10 May 2012 to establish “Tim KerjaSISLOGNAS”/Indonesia National Logistics Team: (1) Head: Deputy Minister for Industry and Trade Affairs, CMEA; Secretary: Expert Staf to the CMEA on Poverty Reduction; Members: Echelon I/DGs of related Ministries, Head of Agencies, and Representatives from Chamber of Commerce and Associations; (2) Supporting Expert Group: Academicians and Practitioners, and (3) For day-to-day operation, a Secretariat and Sub-Tim Kerja SISLOGNAS (STK) may be established with membership and tasks to be stipulated by the the Head of the Tim Kerja SISLOGNAS. The Head of the Tim Kerja issued Decree No.27/D.IV.M.EKON/07/2012, on 24 Juli 2012 to established the Secretariat and Sub-Tim Kerja (STK, according to 6 key drivers) consisting of: representatives of related ministries/agencies, academicians and practitioners.
  6. 6. 2. SISLOGNAS Blueprint (3): Main Features Vision 2025 Locally Integrated, Globally Connected for National Competitiveness and Social Welfare Missions1. Support the effective and efficient flow of goods to ensure public basic needs are met, and that national product competitiveness is improved on the domestic, regional and global markets.2. Create national logistics nodes and build their connectivity in rural and urban areas, and between regions, islands and international hub ports through multi-stakeholder collaboration. Objectives: Support the effective and efficient flow of goods1. Ensure the availability of basic and strategic commodities across Indonesia at affordable prices enabling a fair and prosperous society and strengthen the national sovereignty and integrity;2. Reduce logistics costs through improvement of flow of goods and improved national logistics services capacity thus improve national competitiveness in national and global markets;3. Prepare for international commitments (e.g., ASEAN logistics integration under PIS, AEC in 2015, and global market integration ). 6
  7. 7. 2. SISLOGNAS Blueprint (4): Main Features - Framework Mission of Indonesian Economy 2025 “To Actualize Self-Sufficient, Advanced, Just, and Prosperous Indonesia” MP3EI Economic Connectivity Corridor SISLOGNAS To Improve To Improve Competitiveness Social Welfare Knowledge, Technology and Art 7 MP3EI: Masterplan of the Acceleration and Expansion of Indonesian Economic Development, 2011 - 2025
  8. 8. 2. SISLOGNAS Blueprint (5): Main Features - 6 Key-Drivers 8
  9. 9. 2. SISLOGNAS Blueprint (6): Main Features - Network System Rural Inter Africa Rural Island Europe Rural City Rural Indonesia City Inter Rural International Asia Island Hub Port Rural Rural City Inter Rural Island America Australia & Rural Oceania Local and National Network Integration Global Network Connection 9
  10. 10. 2. SISLOGNAS Blueprint (7): Main Features - Short Sea Shipping Legend: Konektivitas: Pusat Distribusi Provinsi Provincial Distribution Center By sea / by rail By sea / by rail / by land By land / by rail / by sea Pusat Distribusi Nasional National Distribution Center Short Sea Shipping Short Sea Shipping is the backbone of National Freight Transportation System 10 SLoC: Sea Lane of Communication; ALKI: Alur Laut Kepulauan Indonesia (Indonesian Archipelagic Sea Lane)
  11. 11. 2. SISLOGNAS Blueprint (8): Main Features - Distribution Network of Main and Strategic Commodities Legend: Pusat Distribusi ProvinsiCenter Provincial Distribution National Distribution Center Pusat Distribusi Nasional Each regency/city/province will have one Distribution Center. Each Economy Corridor will have at least one National Distribution Center. Distribution Center will be designated as buffer stock. 11
  12. 12. 2. SISLOGNAS Blueprint (9): Main Features - ICT Infrastructure An integrated services on data/information and documents for both domestic and international trade, interconnected to ASEAN and Global Networks Domestic Trade INTRA ISLAND INTER ISLAND NATIONAL GATEWAY CUSDEC C/O Rcmd B/L P/O L/C D/O Other NILITS MESSAGING HUB Docs National Integrated Trade, Logistics and Intermodal Transport Messaging Hub System (Secured and Assured Messages Delivery System) National Single Window (G2G and B2G) Customs Advanced Trade System eTradeLogistics (B2B) Ministry Other Shipping Exporter Other Customs Quarantine Gov’t Forwarder Trade Agencies LInes Importer LSP INTERNATIONAL International GATEWAY Trade ASEAN SINGLE WINDOW GLOBAL NETWORK 12
  13. 13. 2. SISLOGNAS Blueprint (10): SISLOGNAS & MP3EI on PPP Scheme MP3EI SISLOGNAS (Perpres No.26/2012) is part of MP3EI (Perpres No.32/2011) http://www.ekon.go.id/activity/2011/02/07/download-file.MP3EI (pp. 20-21): on Economic Transformation and Business As Usual:"In order for Indonesia to accelerate its economic development, Indonesia will need to embrace anew way of thinking, a new way of working, and a new way of conducting business....Theimplementation of the new way of thinking in the economic development, needs collaborativeefforts among government, local governments, SOEs, private enterprises and the people. Thegovernment has very limited funds to finance development through its State Budget (APBN). Thus,to foster the economic growth in Indonesia, it will depend on the private sector participation whichincludes state-owned enterprises, and private domestic and foreign investors.The old thinking suggests that infrastructure must be built using government funding. However, dueto the limitation of government funding, the old line of thinking resulted in the slow fulfillment ofadequate infrastructure to support rapid development. Under the new way of thinking and working,cooperations between the government and the private sector under the public-private partnership(PPP) scheme is expected to bring in much needed investments." 13
  14. 14. 2. SISLOGNAS Blueprint (11): Action Plans Phase I (2011-2015) Phase II (2016-2020) Phase III (2021-2025) Goal: lay a strong Goal: strengthen domestic Goal: operate effective foundation to establish logistics integration, and synchronization, and efficient national an effective and efficient logistics system coordination and National Logistics System connected to the Global integration with ASEAN in order to achieve the logistics networks, and lay a logistics network locally integrated vision strong foundation to be and create a strong basis integrated with the global for being connected to logistic network to achieve ASEAN logistics networks the Globally Connected vision Action: Strengthening Action: Regulatory Action: Development and of the National Revision, HR expansion of logistics infrastructure, capacity Logistics System to be Development and building for actors and connected to the Logistics Infrastructure providers of logistics Global Logistics Improvement in order services to make the network to create Local and national logistics system National Logistics connected to the ASEAN logistics network Integration •National Logistics Costs of the •National Logistics Costs of the •National Logistics Costs of the 2015 GDP declines by 3% from 2020 GDP declines by 4% from 2025 GDP declines by 5% from that of 2011 that of 2015 that of 2020 •Indonesian LPI Score is 3.1 •Indonesian LPI Score is 3.3 •Indonesian LPI Score is 3.5 14
  15. 15. 2. SISLOGNAS Blueprint (12) is...  Provides awareness of growing problems in detail;  Is a high priority program in government’s agenda and Identifies Action Plans in detail;  Is a product of public and private consultations;  Has a commodity specific and supply chain approach that provides a framework to identify distribution centers and consider difference of treatments for different producs;  Requires SISLOGNAS’ performance measurement  Identifies bigwins  Recognizes the need of coordinating team to be evolved to a possibly agency or council 15
  16. 16. 3. Challenges 2011-2015 (1):From Action Plans/Bigwins 2011-2015 to Implementation (# 5 and 17)No Action Plans/Big Wins Time Target 1 Establish and develop international hub seaports in Kuala Tanjung and Bitung (including their detailed plans), and international hub airports in Jakarta, Kuala 2011-2015 Namu and Makassar 2 Kalibaru Port as extension of Tanjung Priok Port is constructed and developed 2012-2015 3 Short Sea Shipping at Pantura route and East Trans-Sumatra Highway (Jalintim 2012-2015 Sumatra) are in operation 4 Cargo railways in Java and Sumatra have higher role 2012-2015 5 The National e-Logistics system (INALOG) is developed 2012-2015 6 Capacity of pioneer and national ship fleets for passenger and cargo transport in the East Region of Indonesia are higher 2012-2015 7 Availability, quality and capacity of interisland water transport are improved 2012-2015 through empowerment of national shipping and traditional/people’s shipping 8 Logistics centers to serve consolidated containers for SME exporters’ LCL cargoes are established 2013-2015 16
  17. 17. 3. Challenges 2011-2015 (2):From Action Plans/Bigwins to Implementation (# 5 and 17)No Action Plans/Big Wins Time Target 9 Air cargo 24/7 service model at the Soekarno Hatta Airport is in operation 2012-201510 Some National Logistics Service Providers are becoming world class players 2012-2015 Commercial SOEs functioning as Trading House for Basic, Strategic and export11 2012-2015 Commodities are revitalized12 Roles of SOEs (Post, BGR and Bulog) in Rural Logistics are improved 2012-2015 National education and training system of international standard for logistics13 2012-2015 profession is underway Regional Distribution Centers for basic and strategic commodities in each14 2012-2015 economic corridor are constructed Regulations and policies to promote efficiency in export-import activities are15 2012-2015 synchronized16 Rupiah based logistics fees are in practice 2012-201517 Dry ports are operating efficiently 2012-2015 17
  18. 18. 3. Challenges 2011-2015 (3):From Action Plans/Bigwins to Implementation Action Plans/Big Wins Time Target Establishment of SISLOGNAS ‘ Performance Measurement model (reduction of cost, time and uncertainty): – Base-line (basic and strategic commodities as currently being transported by SOEs, price disparities) – Gradual improvement of the model and methodology 2012-2015 Note: Others One of the tasks of the Tim Kerja SISLOGNAS (p.6): “particularly to measure whether efforts and actions taken have been effective and produced proper results and benefits, and, the evaluation results are expected to measure the achievement of milestones and key performance indicators (KPI) of all related stakeholders.” Support for the Secretariat: – Best/Good Practices 2012 – Professional Minutes of Meetings (incl. in English) 18
  19. 19. 4. Use of ICT as a Driver (1): Dwell-Time, JICA 2004-2005“Study on Trade Releated System and Procedures,” Japan International Cooperation Agency,March 2004 – March 2005 8,57 7,91 8 1,11 7 1,45 6,54 6,54 6 Average 3,05 4,20 5 3,23 Required 2,34 days 1 Days from 4 0,02 1 0,92 Discharge 3 2 to Gate Out 2 3,23 3,26 3,47 3,28 1 Jalur Hijau Jalur Hijau dgn Jalur Merah Jalur Merah dgn Analyzing Point Anayzing Point Source : The Study on Trade Related Systems Procedures in The Republic of Indonesia Japan International Cooperation Agency, Final Report, March 2005; DGBC/INSW Presentation, 3 Nov 2010 SPPB s.d Gate : Proses pengeluaran barang impor dari TPS (Pelabuhan) ke peredaran bebas, setelah mendapatkan persetujuan pengeluaran dr BC (Customs Approval) PIB s.d SPPB : Proses penyelesaian kewajiban pabean (Customs-Clearance) yaitu sejak pengajuan dokumen impor (PIB) s.d persetujuan pengeluaran dr BC (Customs Approval) Bongkar - PIB : Proses kedatangan kontainer barang impor, yaitu sejak pembongkaran dari kapal, movement, penimbunan s.d pengajuan dokumen impor (PIB) ke Kantor Pelay. BC
  20. 20. 4. Use of ICT as a Driver (2): Dwell-Time at Tanjung Priok/JICT,The World Bank 2009 [L. Peter Rosner & Siti Budi Wardhani, October 2009]JICT update for 2009 (Jan - Sept): Dwell time declined from 6.3 days to 5.8 days or by 8% 8 250,000 7 Dwell time 6 200,000 Dwelling time (days) Throughput (TEUs) 5 Throughput 150,000 4 100,000 3 2 50,000 1 - Dwell time and througput for JICT terminal one - Dwell time for full inbound containers excluding behandle and overbrengan - 0 May-08 May-09 Mar-08 Mar-09 Jan-08 Jun-08 Nov-08 Dec-08 Jan-09 Jun-09 Aug-08 Sep-08 Aug-09 Sep-09 Feb-08 Apr-08 Oct-08 Feb-09 Apr-09 Jul-08 Jul-09
  21. 21. 4. Use of ICT as a Driver (4):Dwell-Time di Tanjung Priok/JICT, the World Bank Jan 2011 – June 2012 Hari 7.00 6.50 6.43 6.46 6.38 6.18 6.22 6.11 6.00 5.61 5.50 5.42 5.34 5.24 5.00 4.84 4.64 4.50 4.00 Dwelling Time (hari) Source: JICT, The World Bank
  22. 22. 4. Use of ICT as a Driver (5):Implementation of i-CARES/CargoLink at Tanjung Priok/Koja[The Case for Toyota, 14 Nov 2012]
  23. 23. Many Thanks! Tim Kerja SISLOGNAS/Indonesian National Logistics Team 23

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