The presentation is composed to propose a new concept of Nusantara Logistics Chain (NLC) that connect Indonesia with other ASEAN countries.

1. Nusantara Logistics Chain:
Linking Indonesia Logistics to ASEAN Logistics
Togar M. Simatupang & Setijadi
Indonesian Society for Logistics and Supply Chain
11 March 2013

2. Overview
1. Logistics versus Supply Chain
2. Indonesia’s National Logistics System
3. ASEAN Logistics Network
4. Nusantara Logistics Chain
5. Concluding Remarks
2

3. Logistics versus Supply Chain
3

4. Logistics and Supply Chain
Source: Markus Hesse and Jean-Paul Rodrigue (2004), "The This chart illustrates the relationship among materials
transport geography of logistics and freight distribution", management, physical distribution, logistics management, and
Journal of Transport Geography, Vol. 12, No. 3, pp. 171–184. supply chain management. Distribution is a component of logistics
http://www.wtgblog.com/history-of-logistics-and-supply- management, and logistics management is a component of supply
chain-management-infographic/ 4
chain management.

5. The Scope of a Supply Chain, Logistics
Chains and Transport Chains
Source: http://people.hofstra.edu/geotrans/eng/ch5en/conc5en/scope_supply_chain.html 5

6. Trade Logistics
6
Source: http://people.hofstra.edu/geotrans/eng/ch5en/conc5en/tradechain.html

7. Logistics Services
Source: http://www.scm-operations.com/2012/01/logistics-management-concept-literature.html
7

8. Layers to Logistics Services
8
Source: http://people.hofstra.edu/geotrans/eng/ch5en/conc5en/layers_to_logistics_services.html

9. Segmentation of logistics service
providers
Source: Baumgarten, H. and Zadek, H. (2003), Segmente der Logistikdienstleister, TU Berlin Visuality. 9

10. Source: http://www.perceptant.com/services_supply_cas.shtml
10

11. DHL Supply Chain Services
Procurement Services Finished Goods Warehousing Reverse Logistics
Raw Materials Warehousing Assembly and Packing services Environmental Compliance
Raw Materials Transportation
International Supply Chain Management
Source: http://www.dp-dhl.com/en/about_us/corporate_divisions/supply_chain.html 11

12. Indonesia’s National Logistics System
12

13. National Logistics System &
Indonesia Economic Master Plan (MP3EI)
Economic Mission 2025
Self sufficient, advanced, just, and prosperous Indonesia
MP3EI
1 2
Economic
Connectivity
Corridors
National
Logistics System
Improving Improving
competitiveness Prosperity
IPTEK /
Science & Tech
INOVASI
3
13

14. Six Key Drivers of National Logistics
System (NLS)
Key Commodity
National
Competitiveness
Logistics Infrastructure
Logistics Service Providers
Human Resources
Information and Communication
Technology (ICT)
Social Welfare
Harmonization of Regulation
Source: PERPRES No. 26 Tahun 2012 tentang Cetak Biru Pengembangan SISLOGNAS 14

15. Implementation Framework
Locally Integrated and Globally Connected
for National Competitiveness and Social MP3EI
Wellfare
SDM SDM SDM
Regulasi dan Kebijakan
Corridor Papua & Maluku
P Infrastruktur Transportasi K Corridor Sulawesi
R O
Saluran Distribusi
O
D
N
S
Corridor Kalimantan
Grosir Distributor Pasar Ritel
U
S
U
M
Corridor Bali dan Nusra
Pelaku dan Penyedia Jasa Logistik
E
N
E
N
Corridor Jawa
Infrastruktur Infomasi (TIK)
Corridor Sumatra
Regulasi dan Kebijakan
SDM SDM SDM
Program and Action Plan
Strategy, Program, and Action Ministries, Province/Regency/City
Plan
Mid Term of National
Development Plan
15
Sumber: Sislognas (2012)
Background Substances The challenges of implementation

16. Indonesia’s Logistics Industry
• Frost & Sullivan predicts Indonesia’s logistics
industry to grow by 14.5 percent to Rp1,634
trillion (US$168.3 billion) in 2013.
• The result of poor connectivity, processes and
weak infrastructure was evident in many price
differentials and transportation problems in
Indonesia.
16

17. ASEAN Logistics Network
17

18. Master Plan on ASEAN Connectivity
18

19. Source: http://asiafoundation.org/in-asia/2010/09/22/philippines-spearheads-asean-
effort-to-establish-regional-ro-ro-sea-transport-network/ 19

20. Asia-wide Partnership for Seamless
Logistics
20
Source: http://www.iist.or.jp/wf/magazine/0508/0508_E.html

21. ASEAN-Japan-India Logistics Network
Source:
http://www.mofa.go.jp/policy/oda/whi
te/2011/html/honbun/b1/s3_2.html 21

22. Nusantara Logistics Chain
22

23. Key drivers and restraints for Indonesia
transportation & logistics market
Poor infrastructure development, together with unavailability of qualified
professionals, will still be a major constraint hindering Indonesia logistic
industry development in several years ahead. 23

24. Insight of Nusantara Logistics Chain
24

25. The concept of Nusantara Logistics
Chain (NLC)
Inclusive The development of an
Businesses Land Use integrated transport
Local Population system, consisting of
Economic different modes and
with strong relationships
Development Green Logistics between the
Logistics Landscape development of the
The Environment transport system, the
Logistics economic development,
Services the land use
Transport
development and the
System environmental impacts
of these developments.
Logistics Chain Logistics
Corridors
25

26. The implementation of Nusantara
Logistics Chain
Economic Policy: Public Awareness:
Tax incentives, subsidies and
financial aids for inclusive Public education, promotion,
business, private-public training
partnership
Legal Support:
Enforceable laws and
regulation, guidelines and
procedures, penalty for
violation
Infrastructure and Public
Technology: Contribution and
Provision of logistics
infrastructure, Investment in Participation:
appropriate Forum of Development,
technology, standardization of Institution building, Logistics
practices and procedures Competencies Development
26

27. The Benefits of Logistics
Improvements
Source: http://people.hofstra.edu/geotrans/eng/ch5en/appl5en/benefits_logistics_improvements.html 27

28. The Proposed Leverages
1. Logistics Landscape
2. Logistics and supply chain for development
3. Single window
4. Multi modal transport system
5. Coastal Logistics
6. Network based logistics visibility platform
7. Logistics Business Development
8. Green Logistics
9. Development forums for Nusantara logistics
chain at each economic corridor
28

29. 1. Logistics Landscape
29
Source: http://aftercity.mit.edu/?p=479

30. 2. Logistics for Development
Nodes, Linkages
and Urban Form
Source: http://people.hofstra.edu/geotrans/eng/ch6en/conc6en/nodeslinkages.html
30

31. 3. Single Window System
Two Pillars Policy: Trade-System & Port-System
 Trade-System (“TradeNet”) :
Aims to improve and speed up services in export-import
Customs documents clearance (Flow of Document)
 Port-System (“PortNet”) :
- import/ Export Declaration
- In/Outward Cargo Manifest Aims to support the acceleration of cargo handling in
- Import/Export Approval export-import goods traffic (Flow of Goods)
 Trade-System, as one of main pillars in NSW System
- Info Manifest/RKSP
- Loading/Disch.List - Info Manifest will exchange data through NSW Portal:
- Utilization Rep
- In/Out Reconciliation - License Reconc.  from Customs System :realization of Data
import/Export
 from Trade System (GA) :licensing export Import
- Info Vessel
 Port-System,as one of main pillars in NSW System will
Port - Info CY/ WH
- Cont.Tracking Trade exchange data through NSW Portal:
- Sea/ Air-Port Permit
- import/Export Licensing
 FromCustoms System :
- Goods/Ships Handling
- import/Export Regulation  Cargo Manifest (inward/outward)
- Loading/Disch.Goods
- In/Out Goods - Trade Information  Release Approval (SPPB/PE)
 FromPort System (GA) :
 Discharge List/Loading List
 Gate in/Gate out List
31
Source: http://www.insw.go.id/

32. 4. Multi Modal Transport System
Source: http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/multimodal.html
32

33. Source: http://sic.ici.ro/sic2006_2/art07.html
33

34. 5. Coastal Logistics
Transport of resin chips
between the Ehime
Plant and Nagoya Plant
was switched to coastal
shipping routes
34
Source: http://www.toray.com/guideline/forcustomers/ethics/eth_002.html

35. 6.Networked Logistics Platforms
Source: http://www.clresearch.com/research/detail.cfm?guid=07598B62-3048-79ED-99F8- 35
974CD7202097

36. 7. Logistics Business Development
Source: http://www.scandria.eu/en/scandria-logistic-business-development-strategy.html 36

37. 8. Green Logistics
Green or sustainable
logistics is concerned
with reducing
environmental and
other negative
impacts associated
with the movement
of supplies.
Source: http://log.logcluster.org/operational-environment/green-logistics/index.html
37

38. Concluding Remarks
38

39. Concluding Remarks
• Indonesia’s macro logistics is considered as high economy costs that prevent
industrialization and new business investment.
• Bottlenecks in the transportation and logistics industry include underdeveloped
infrastructure, conflicting regulation, inefficiencies in goods movement, and paper-
based trade facilitation.
• Indonesia’s national logistics system has been formulated and issued by the
Government. However, the system still lacks of public awareness and fragmented
to the local economic development.
• Nusantara Logistics Chain is introduced to enhance interlink between logistics
landscape to social and economic development for empowering the growth of
inclusive business that increase value added of local resources.
• Leverages available to Nusantara Logistics Chain include: Logistics Landscape,
Logistics and supply chain for development, Single window system, Multi modal
transport system, Coastal Logistics, Network based logistics visibility platform,
Logistics Business Development, Green Logistics, and Development forums for
Nusantara logistics chain at each economic corridor.
39

40. Thank You
40