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Indonesia Supply Chain Solutions - Infrastructure
Indonesian businesses have higher logistics costs than other Asian countries due to longer delivery times and unpredictable schedules. This causes economic hardship. To address this, Indonesia should develop an integrated logistics network including deep sea ports, rail connections to dry ports near industrial zones, and paperless customs clearance. This would reduce costs, congestion, and smuggling while making trade and transportation more reliable and efficient.
Indonesia Supply Chain Solutions - Infrastructure
- 1. PT. Bulk resourceOptimizers June 24, 2014 www.broindo.com
- 2. Indonesian businessesare saddled with higher logistics costs than their counterparts in other Asian nations Aside from higher costs, Indonesian businesses have to endure longer delivery times as well as less than predictable delivery schedules Indonesian cargo movement causes its citizens great hardship and cost
- 5. Deep Sea Port Container Dry Port Industrial Zone Industrial Zone Container DryPort Distribution Hub
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- 7. Cargo volume& type Frequency of connections Is de-consolidation required? Distance to destination Is cargo perishable or heat sensitive? Raw materials or semis for processing or manufacturing Finished products ready for distribution Population density
- 8. Cargo whichneeds to travel more than 15 km from the deep sea port should go by rail rather than by road whenever possible Cargo from the container dry port can then go by road to destination Cargo deconsolidation centers as well as special bonded zones can be set up within the container dry port
- 9. Deep SeaPorts for high volume cargo whether bulk or break-bulk Bulk terminals within the immediate area of Deep Sea Ports Railway connection from Deep Sea Ports to Dry Container Ports Industrial Zones set up near Dry Container Ports for processing, tolling, manufacturing and packaging
- 10. Indonesia shouldadopt paperless process for Customs clearance to save paper and fuel (this is a Green initiative) National SingleWindow must be nationwide Customs website must link to related bodies such as MIGAS, BPPOM andTrade Ministry with shared databases Customs inspection should be available at Deep Sea Ports as well as Container Dry Ports
- 11. Reduced timein clearing import & export cargo Reduced storage costs & congestion at ports of entry/exit Elimination of smuggling & leakage of import duties as well as other taxes More reliable trade data for Indonesia which can be used by Indonesian embassies overseas
- 12. No morecash trading hands at the ports & Customs – all payments should be electronic andTRACEABLE All costs and expenses incurred to be receipted thus conforming with international standards of good corporate governance Customs & the Indonesian government should be the solution, not the impediment
- 13. Tanjung Priokis the 22nd busiest port in the world with 6.1 millionTEUS in 2012 just ahead of Long Beach, California Cargo imports into Indonesia in 2013 totaled 141 million tons Cargo exports from Indonesia in 2013 totaled 700 million tons Majority of Indonesia’s exports are in the form of bulk cargo
- 14. Indonesia’s tradevolume is very likely to increase particularly in the form of imports via container Deep sea ports need to have vast surrounding land bank to allow for future growth & development Cargo terminals, bulk terminals & bulk liquid storage should be located beside deep sea ports
- 17. For heavyindustrial manufacturing & power generation, it makes sense to be located near deep sea ports so that inbound raw material can be efficiently delivered Coal & fuel should not have to be transported long distances to point of use – it should be electricity generated that is transported, not the raw material
- 18. The Jabodetabek areashould be served by 2 deep sea ports one in the Banten Regency to handle everything up toWest Jakarta and another in the Bekasi area which can serve even Bandung This will enable the industrial zones in both the East andWest to reduce their logistics costs as well as ease the Jakarta traffic problems
- 20. The developmentof industrial zones should be undertaken by the government to move industrial activity away from the densely- populated commercial center of Jakarta The government should incentivize industries to re-locate to designated industrial zones Infrastructure such as utilities, electricity, road & railway links should be included
- 21. For Indonesiato become competitive globally, it needs efficient infrastructure Infrastructure alone will not make Indonesia competitive and efficient, all processes must be streamlined so that they actually facilitate instead of frustrate ThankYou!