1. Coordinating Ministry for Economic Affairs
Republic of Indonesia
The Challenge of Implementation of Presidential Regulation No.26/2012 on the
Blueprint of Development of National Logistics System
Use 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. Outline
1. Background: Issues Leading to the Issuance of the National Logistics
System (SIStem LOGistik NASional/SISLOGNAS) Blueprint
2. 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 – 2025
3. Challenges of Implementation 2012 – 2015
 Among Others ---- No. 5: The National e-Logistics system (INALOG) is developed
and No. 17: Dry ports are operating efficiently
4. 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. 1. Background
Presidential Instruction No. 5/2008 on Focus of Word Bank LPI 2010 World Bank LPI 2012
Economic 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. 63
ASEAN Economic Community 2015 Blueprint, Indonesia 75 Ukraine 66
Signed by Leaders on 13th ASEAN Summit in
Paraguay 76 Pakistan 71
November 2007 – ASEAN Single Market and
Single Production Base Syrian Arab Guatemala 74
Republic 80
3

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. 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 Kerja
SISLOGNAS”/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. 2. SISLOGNAS Blueprint (3): Main Features
Vision 2025
Locally Integrated, Globally Connected for National Competitiveness and Social Welfare
Missions
1. 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 goods
1. 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. 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. 2. SISLOGNAS Blueprint (5): Main Features - 6 Key-Drivers
8

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. 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. 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. 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. 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 a
new way of thinking, a new way of working, and a new way of conducting business....The
implementation of the new way of thinking in the economic development, needs collaborative
efforts among government, local governments, SOEs, private enterprises and the people. The
government 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 which
includes state-owned enterprises, and private domestic and foreign investors.
The old thinking suggests that infrastructure must be built using government funding. However, due
to the limitation of government funding, the old line of thinking resulted in the slow fulfillment of
adequate 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. 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. 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. 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. 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 2012-2015
10 Some National Logistics Service Providers are becoming world class players 2012-2015
Commercial SOEs functioning as Trading House for Basic, Strategic and export
11 2012-2015
Commodities are revitalized
12 Roles of SOEs (Post, BGR and Bulog) in Rural Logistics are improved 2012-2015
National education and training system of international standard for logistics
13 2012-2015
profession is underway
Regional Distribution Centers for basic and strategic commodities in each
14 2012-2015
economic corridor are constructed
Regulations and policies to promote efficiency in export-import activities are
15 2012-2015
synchronized
16 Rupiah based logistics fees are in practice 2012-2015
17 Dry ports are operating efficiently 2012-2015
17

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. 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. 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. 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. 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. Many Thanks!
Tim Kerja SISLOGNAS/Indonesian National Logistics Team
23