State of Logistics Indonesia 201 5 - NESTRA - a …

1 State of Logistics Indonesia 2015 Center of Logistics and Supply Chain Studies, Institut Teknologi Bandung Gedung Lab-Tek II Lt. 4 Jl. Ganesha 10 Bandung 40132 Asosiasi Logistik Indonesia Gedung 1 Lt. 6 Kementerian Perdagangan RI Ridwan Rais Jakarta 10110 STC- NESTRA Lloydstraat 300 3024 EA Rotterdam The Netherlands The World Bank Office Jakarta Indonesia Stock Exchange Building, Tower II/12-13 Fl. Jl. Jend. Sudirman Kav 52-53 Jakarta 12910 is a collaboration of the Center of Logistics and Supply Chain Studies, Institut Teknologi Bandung (ITB), Asosiasi Logistik Indonesia , STC-Group and the World Bank.

2 The findings, interpretations and conclusions expressed herein do not necessarily reflect the views of the Board of Executive Directors of the World Bank or the governments they represent. The World Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations and other information shown on any map in this work do not imply any judgment on the part of the World Bank concerning the legal status of any territory, or the endorsement of acceptance of such boundaries. Contact: Cover photograph is: Copyright @ SECO.

3 All rights reser ved. State of Logistics Indonesia 2015 State of Logistics Indonesia 2015 Sta te of Logistics Indonesia 2015 State of Logistics Indonesia 2015 Colophon Contributors Cas van der Baan Adhi Dipo : STC BV : Local Expert World Bank office in Jakarta David Wignall Dini Takola Hafida Fahmiasari Vincent Hinssen Henry Sandee Ren Meeuws : Expert Ports and Shipping : Local Expert World Bank Office in Jakarta : Expert Logistics Engineering : Expert Transportation and Logistics : Economist World Bank office in Jakarta.

4 Transport and Logistics Expert STC- NESTRA State of Logistics Indonesia 2015 Page I of V PREFACE President Joko Jokowi Widodo s vision to develop a modern transport system, known as maritime highways , is beginning to materialize in Indonesia . New freight transport services are being introduced and existing services are being intensified and improved. Also the national port system is being improved. The Government s programme for the development of 24 commercial ports, over 1,000 non-commercial ports and the procurement of vessels between 2015 and 2019 requires US$ billion.

5 The integrated programme of the Government is expected to reduce Logistics costs from percent of the Gross Domestic Product (GDP) in 2014 to percent in 2019. We are proud to present to you State of Logistics Indonesia 2015 . It has been produced in a cooperation between Indonesian and Dutch organisations and knowledge centres with technical support from the World Bank office in Jakarta. There are four partners responsible for this report: the STC Group in the Netherlands consisting of STC- NESTRA and STC-BV; the Asosiasi Logistik Indonesia ALI ( Logistics Association Indonesia ); the Institute of Technology in Bandung (ITB) in Indonesia ; and the World Bank office in Jakarta.

6 All partners share the common vision that they want to contribute to improving Indonesia s Logistics performance and to reduce the costs of transportation, which will lead to more affordable prices of basic commodities; connectivity and integration in the country and an improved competitive position of Indonesia on the global market. These aspects are expected to contribute to poverty alleviation in Indonesia . This publication joins a tradition of various countries in the world of publishing regular reports on various aspects of national Logistics performance.

7 We wish you a good reading of this document. Jakarta, March 27, 2015 State of Logistics Indonesia 2015 Page II of V TABLE OF CONTENT 1 Logistics PERFORMANCE IN Indonesia .. 5 2 REDUCING DWELL-TIME OF IMPORT CONTAINER DWELL TIME IN SURABAYA .. 10 11 Research Problem .. 11 Research Objective .. 12 12 .. 13 Analysis .. 14 .. 17 .. 18 3 PENDULUM NUSANTARA NETWORK EFFICIENCY .. 20 .. 21 Problem .. 21 Objective .. 21 Questions .. 22 22 .. 25 analysis .. 27 .. 33 .. 33 4 MARITIME BASED HUB AND SPOKE DESIGN ELEMENT FOR Indonesia .

8 35 .. 36 Questions .. 37 Framework .. 37 38 .. 40 .. 41 State of Logistics Indonesia 2015 Page III of V .. 46 .. 46 5 UNLEASHING THE POTENTIAL OF RORO SHIPS AND FERRIES IN Indonesia .. 50 .. 50 Density Ferry Routes : Merak to Bakauheni .. 53 RoRo Services .. 55 Shipping Services .. 57 or Pioneer Ferry Services .. 57 6 EFFICIENCIES AND INEFFICIENCIES IN THE INTER-ISLAND SUPPLY 59 .. 59 Findings .. 59 7 INCOTERMS AND COMPETITIVE SHIPPING .. 66 .. 66 State of Logistics Indonesia 2015 Page IV of V ABBREVIATIONS 3 PLS Third-Party Logistics Providers ALI Asosiasi Logistik Indonesia APEX Airline Passenger Experience Association ASEAN Association of Southeast Asian Nations CMEA Coordinating Minister for Economic Affairs CIF Cost.

9 Insurance and Freight DGLT Directorate General of Land Transport DGST Directorate General of Sea Transport DT Dwell Time EDI Electronic Data Interchange FDI Foreign Direct Investments FOB Free On Board GDP Gross Domestic Product IMF International Monetary Fund INSW Indonesia National Single Window IPC Indonesia Port Corporation IWT Inland Waterway Transport JPM Peterson and Mattsson Method LPI Logistics Performance Index LoLo Lift On-Lift Off MITA MITRA UTAMA (Customs Priority Channel) MLO Main Line Operator MP3EI Master Plan for the Acceleration and Expansion of Economic Development of Indonesia NPMP National Port Master Plan NQ Nagurner and Qiang Method Pelindo PT.

10 Pelabuhan Indonesia PIB Pemberitahuan Impor Barang (Import Declaration) PL Logistics Actor PPP Public Private Partnership PSO Public Service Obligations RoRo Roll-on Roll-off ships SPPB Surat Pemberitahuan Pengeluaran Barang (customs notification of cleared goods) State of Logistics Indonesia 2015 Page V of V STC Shipping and Transport College (part of STC Group, Rotterdam, NL) TEU Twenty foot Equivalent Unit TPS Customs Temporary Storage Area YOR Yard Occupancy Ratio State of Logistics Indonesia 2015 Page 5 of 68 1 Logistics PERFORMANCE IN Indonesia In 2007 The World Bank published for the first time the Logistics Performance Index (LPI) and its indicators.