What is the position of Indonesia in ASEAN logistics? How is the benchmarking of logistics development in Japan and ASEAN Countries? What is the appropriate logistics system applied in Indonesia? Can Indonesia achieve efficient logistics performance or exceed other countries?

1. Asia Logistics Insights:
Driving Continuous Improvement to Make Indonesia a
Logistics Hub in Asia-Pacific
Togar M. Simatupang
School of Business and Management
Bandung Institute of Technology
Presented at Jakarta International Logistics Summit & Expo and Indonesia
Transportation Supply Chain and Logistics (ITSCL) at JIEXPO Kemayoran Jakarta
19-21 October 2016 1

2. Overview
• Problem Statement
• ASEAN Logistics Outlook: Logistics Hub
• Benchmarking
• Proposed Logistics System in Indonesia
• Concluding Remarks
2

3. Problem Statement
3

4. Questions
• What is the position of Indonesia in ASEAN
logistics?
• How is the benchmarking of logistics
development in Japan and ASEAN Countries?
• What is the appropriate logistics system applied
in Indonesia?
• Can Indonesia achieve efficient logistics
performance or exceed other countries?
4

5. ASEAN Logistics Outlook: Logistics Hub
5

6. Why AEC is so attractive?
6

7. Larger portion of total middle class
population is coming from Asia and ASEAN
7

8. Source: http://aseanup.com/overview-of-e-commerce-in-southeast-asia/
8

9. ASEAN ECONOMIC COMMUNITY (AEC)
9

10. 10
Source: http://asiafoundation.org/in-asia/2010/09/22/philippines-spearheads-asean-
effort-to-establish-regional-ro-ro-sea-transport-network/

11. Asia-wide Partnership for Seamless
Logistics
11
Source: http://www.iist.or.jp/wf/magazine/0508/0508_E.html

12. ASEAN-Japan-India Logistics Network
12
Source:
http://www.mofa.go.jp/policy/oda/whi
te/2011/html/honbun/b1/s3_2.html

13. Indonesia Logistics Costs Can Match
Asian Peers in Two Decades
• Indonesia is on the right trajectory to reduce its logistics costs to 19 percent of its
gross domestic products (GDP) by 2020.
• Government efforts to modernize ports and open up the logistics sector to foreign
investment.
• Total logistics costs could further decline to 9 percent of the GDP by 2035 with
further reform in port operating models and the development of better port
infrastructure.
• The country would need to consolidate its fragmented forwarding industry and
solve unbalanced cargo flows between its islands.
• Today logistics costs account for 26 percent of Indonesia's $861 billion economy.
• The is one of the worst numbers in all of Asia, and far behind Singapore's 8
percent, Malaysia's 14 percent, Japan's 9 percent and South Korea's 13 percent of
GDP.
– Roland Berger: "From our analysis, Indonesia has the potential to bring [down] the cost of logistics ...
but it must escalate reforms in the industry to achieve this ambitious target. The public and private
sectors need to work collaboratively to reduce this burden,“
Source: http://jakartaglobe.beritasatu.com/business/indonesia-logistics-costs-can-match-asian-peers-two-
decades-roland-berger/ 13

14. Benchmarking
14

15. Thailand’s International Trade Logistics
Policies and Measures
Source: Chackrit Duangphastra (2011) 15

16. Thailand Electronic Trade Logistics
Forwarder
Customs
Broker
Trucking
Warehouse
Shipper
Consignee
Airlines
Global NetworkDomestic Network
ASEAN Single Window
EAST ASIA
Global
Logistics Network
Europe
Thailand
e-Logistics
Portal
16

17. Capacity Building Progress Report for Thailand
17

18. SCG Logistics in Cambodia
Source: Nithi Patarachoke (2012)
18

19. JICA’s Comprehensive Approach to
Trade and Investment
19

20. Streamlining Trade Procedures and Distribution Logistics
20
Rationale
Lower the cost and risk of transnational economic activity and promote the efficient division of
labor within the region.
Improve the efficiency not only of production activities but also of distribution between
production centers and from production to consumption sites.
JapanEast Asia Physical Infrastructure
Advancements in information technology
and the standardization of distribution
tools such as pallets
Current Cooperation
Emphasis on logistics (e.g. Just In Time, Supply Chain Management)
Future Priority
Action Target
Reduce within five years the time needed to deliver goods from the point
of production to destinations by more than two third
Actions Plan
 Training of Certified Logistics Master
 Promotion of IT in the logistics sector
 More efficient customs clearance
Streamlining the
flow of goods
Private Sector Needs
Source: Satoshi Suenega
(2004), "Japan’s
Technical Cooperation in
Logistics", Technical
Cooperation Division,
Ministry of Economy,
Trade and Industry.

21. Indonesia as a Logistics Hub in Asia-
Pacific
21

22. 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. 22

23. Insight of Nusantara Logistics Chain
23

24. Indonesia’s Logistics Sector:
Making Connections
• At 24% of GDP, Indonesia’s logistics costs are significantly higher than most other countries
in the region.
• Bringing this down to 16% of GDP, the same as Thailand, would realise huge savings of some
$80 billion USD a year, according to World Bank calculations.
• Infrastructure development as planned by the government will reduce this to 19.2% by
2019.
• While an improvement, this is well above the 8% of GDP typical for developed nations
leaving plenty of scope for investment and innovative solutions as companies seek to reduce
their logistical burdens.
It is important for
Indonesia’s logistics sector
to start adopting a more
integrated approach that
ensures efficiencies across
the entire supply chain
Source: http://www.gbgindonesia.com/en/services/article/2016/indonesia_s_logistics_sector_making_connections_11383.php
24

25. Supply Chain Integration
International
Suppliers International Freight Destination
Markets
Management & Co-ordination
of the Global Supply Chains
between Manufacturers and Regional DC/ Retail Outlets
DrayageCustomsInsuranceFinancing
Port
Services
Shipping
Lines
Frt. Fwd
Asia
Export
DC
Export volume from each port of
loading, e.g. HK, Shanghai, etc.
Order volume from each
DC/destination
Logistics Model
Buyer Consolidation at
Source
De-Consolidation at
Destination
Shipment Equipment
Carrier & Network Selection
Frequency and Schedule of
Shipments
Forecast Coverage & Demand
Velocity
Strategic locations of
inventory
Storage cost differential
Replenishment Model
Order Processing
Source: Tommy Lui (2011) 25

26. The concept of Nusantara Logistics
Chain (NLC)
Land Use
Population
Logistics Chain
Local
Economic
Development
Transport
System
The Environment
The development of an
integrated transport
system, consisting of
different modes and
with strong relationships
between the
development of the
transport system, the
economic development,
the land use
development and the
environmental impacts
of these developments.
Logistics
Corridors
Logistics
Landscape
Inclusive
Businesses
Logistics
Services
Green
Logistics
26

27. The implementation of Nusantara
Logistics Chain
Economic Policy:
Tax incentives, subsidies and
financial aids for inclusive
business, private-public
partnership
Public Awareness:
Public education, promotion,
training
Legal Support:
Enforceable laws and
regulation, guidelines and
procedures, penalty for
violation
Infrastructure and
Technology:
Provision of logistics
infrastructure, Investment in
appropriate technology,
standardization of practices
and procedures
Public
Contribution and
Participation:
Forum of Development,
Institution building, Logistics
Competencies Development
27

28. The Benefits of Logistics
Improvements
Source: http://people.hofstra.edu/geotrans/eng/ch5en/appl5en/benefits_logistics_improvements.html 28

29. The Proposed Leverages
29
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

30. 1. Logistics Landscape
Source: http://aftercity.mit.edu/?p=479
30

31. 2. Logistics for Development
Source: http://people.hofstra.edu/geotrans/eng/ch6en/conc6en/nodeslinkages.html
Nodes, Linkages
and Urban Form
31

32. 3. Single Window System
Source: http://www.insw.go.id/
Two Pillars Policy: Trade-System & Port-System
 Trade-System (“TradeNet”) :
Aims to improve and speed up services in export-import
documents clearance (Flow of Document)
 Port-System (“PortNet”) :
Aims to support the acceleration of cargo handling in
export-import goods traffic (Flow of Goods)
 Trade-System, as one of main pillars in NSW System
will exchange data through NSW Portal:
 from Customs System :realization of Data
import/Export
 from Trade System (GA) :licensing export Import
 Port-System,as one of main pillars in NSW System will
exchange data through NSW Portal:
 FromCustoms System :
 Cargo Manifest (inward/outward)
 Release Approval (SPPB/PE)
 FromPort System (GA) :
 Discharge List/Loading List
 Gate in/Gate out List
Customs
TradePort
- import/Export Licensing
- import/Export Regulation
- Trade Information
- Info Manifest
- Utilization Rep
- License Reconc.
- import/ Export Declaration
- In/Outward Cargo Manifest
- Import/Export Approval
- Sea/ Air-Port Permit
- Goods/Ships Handling
- Loading/Disch.Goods
- In/Out Goods
- Info Vessel
- Info CY/ WH
- Cont.Tracking
- Info Manifest/RKSP
- Loading/Disch.List
- In/Out Reconciliation
32

33. 4. Multi Modal Transport System
Source: http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/multimodal.html
33

34. Source: http://sic.ici.ro/sic2006_2/art07.html
34

35. 5. Coastal Logistics
Transport of resin chips
between the Ehime
Plant and Nagoya Plant
was switched to coastal
shipping routes
Source: http://www.toray.com/guideline/forcustomers/ethics/eth_002.html
35

36. 6.Networked Logistics Platforms
Source: http://www.clresearch.com/research/detail.cfm?guid=07598B62-3048-79ED-99F8-
974CD7202097
36

37. 7. Logistics Business Development
Source: http://www.scandria.eu/en/scandria-logistic-business-development-strategy.html 37

38. 8. Green Logistics
Source: http://log.logcluster.org/operational-environment/green-logistics/index.html
Green or sustainable
logistics is concerned
with reducing
environmental and
other negative
impacts associated
with the movement
of supplies.
38

39. Sistem Logistik Ikan Nasional (SLIN)
39

40. Jenis Rantai Pasokan Ikan
Rantai Pasok
Berorientasi Transaksi
Rantai Pasok
Berorientasi Kapasitas
Rantai Pasok
Berorientasi Integrasi
Penyimpanan
Pengadaan
Transportasi
Distribusi
Penyimpanan
Pengadaan
Transportasi
Distribusi
Penyimpanan
Pengadaan
Transportasi
Distribusi
Ranah kewenangan
Provinsi dan Wilayah
Pengelolaan Perikanan
Ranah kewenangan
Pusat dan Antar Wilayah
Pengelolaan Perikanan
• Transaksi niaga sesuai pasar lokal.
• Kepentingan masing-masing untuk
meningkatkan margin.
• Tidak ada koordinasi antar pelaku
sepanjang rantai logistik.
• Kementerian hanya menjadi
regulator dan pengawas.
• Transaksi niaga sesuai pasar klaster.
• Kepentingan bersama untuk
meningkatkan kapasitas.
• Ada koordinasi pemecahan masalah
lokal.
• Inisiatif daerah dengan dukungan
kementerian.
• Kontrak niaga sesuai pasar nasional.
• Kepentingan bersama untuk menjamin
ketersediaan dan stabilisasi harga.
• Ada koordinasi penjaminan mutu dan
kestabilan harga.
• Inisiatif kementerian dengan pelaksana
operator koodinator. 40

41. Tingkat Kedewasaan Tatakelola Rantai
Pasokan Ikan
Tatakelola rantai pasokan
perikanan yang
bertanggung jawab
adalah suatu prinsip
yang berstandar
internasional bersifat
sukarela dan global
untuk mencapai rantai
pasok perikanan yang
lestari.
Transaksional:
berdagang dan
sendiri-sendiri
Bertanggung-
Jawab:
patuh dan
beretika
Terpadu:
transparan dan
berstandar
Cerdas:
cepat tanggap
dan inovatif
Tatakelola rantai pasok
terintegrasi adalah
transparansi ketelusuran
aliran barang, aliran
informasi permintaan
dan persediaan, dan
aliran keuangan di
sepanjang titik rantai
pasokan.
41

42. Arsitektur Logistik Efektif
Mutu Tinggi – Biaya Rendah – Waktu Antar Pendek
Integrasi Hulu-Hilir Governansi Hulu-Hilir Proses (SOP) Standar Kapasitas Logistik
Nilai Tambah dan Daya Saing
Kerjasama, Insentif, Infrastruktur, ITK, SDM, Kelembagaan, Jasa Logistik
42
Manajemen rantai pasokan (MRP) menyangkut pengelolaan kegiatan dan hubungan di dalam perusahaan, dengan pemasok, dengan
pelanggan, atau rantai pasokan secara keseluruhan.
Dimensi MRP adalah:
• Koordinasi kegiatan bisnis di dalam pelaku
• Kerjasama kegiatan bisnis antar pelaku atau agen rantai pasok

43. Konsep Kreasi Rantai Nilai Ikan
Kreasi Nilai:
1. Peningkatan Kapasitas Rantai Logistik
2. Peningkatan Integrasi Rantai Pasok
3. Efektivitas Tata Kelola Rantai Pasok
Ko-Kreasi:
1. Inovasi bersama dan
terbuka
2. Kemitraan
3. Pembiayaan
Kemampuan:
1. Transparansi
2. Standarisasi
3. Sertifikasi
4. Ketelusuran
Tawaran Pengungkit Nilai:
Isu-Isu Logistik Ikan:
1. Ketidakstabilan pasokan
dan sumberdaya ikan
2. Disparitas geografi,
ketersediaan, dan harga
3. Lemahnya partisipasi
perbaikan mutu
Kreasi Nilai Sosial:
1. Kestabilan pasokan ikan
dan harga
2. Efisien rantai pasokan dan
kelestarian ekosistem
3. Penciptaan usaha baru dan
pendapatan yang
berkeadilan
Penyimpanan Distribusi
Transportasi
Pengadaan
Rantai Pasokan
Terintegrasi
hulu-hilir
Kapasitas
Rantai Logistik
Tata kelola rantai
pasokan
43

44. Portofolio Rencana Induk SLIN
SEKTOR HULU SEKTOR HILIR
PERIKANAN TANGKAP
PERIKANAN BUDIDAYA
PENGOLAHAN DAN
PEMASARAN HASIL
PERIKANAN
KONSUMEN
Konsumsi Ikan
Industri Pengolahan Ikan
Tuna
Tongkol
Cakalang
(TTC),
kembung,
bandeng
Tuna
Tongkol
Cakalang
(TTC),
kembung,
bandeng
Keterkaitan fungsional
(integrasi) rantai pasok hulu
hilir dengan kesatuan tindakan
dalam ikanan kelembagaan
Kondisi yang diharapkan:
ada jaminan ketersediaan
pasokan, peningkatan harga di
level produsen, stabilitasi harga
antar musim
Pentahapan Pengembangan
Sistem Logistik Ikan:
1. Bertanggung-jawab
2. Transparansi
3. Standarisari
4. Sertifikasi
5. Stabilisasi
6. Inovasi
7. Kecerdasan
Rancang Bangun Sistem Logistik:
1. Pengelolaan produksi dan
pemasaran
2. Sarana dan Prasarana
3. Iptek dan kapasitas SDM
4. Teknologi informasi dan
komunikasi
5. Jasa logistik
6. Kelembagaan
Dukungan prakarsa pemangku
kepentingan lokal dalam
mewujudkan ketahanan pangan
ikan daerah dan kerjasama
dengan prakarsa nasional sistem
logistik yang terintegrasi..
Kebijakan Prioritas Produk:
1. Bahan baku: TTC, kembung,
bandeng
2. Ikan beku melalui rantai
pendingin (cold storage)
44

45. Rancang Bangun SLIN
Tujuan
Sasaran
Strategi
Program
Meningkatkan kapasitas dan
stabilisasi sistem produksi dan
pemasaran perikanan nasional.
Memperkuat dan memperluas
konektivitas antara sentra
produksi hulu, produksi hilir, dan
pemasaran secara efisien.
Meningkatkan efisiensi
manajemen rantai pasokan ikan,
bahan dan alat produksi, serta
informasi dari hulu sampai
dengan hilir.
Terwujudnya peningkatan
kapasitas dan stabilisasi sistem
produksi dan pemasaran
Terwujudkan penguatan dan
perluasan konektivitas antara
sentra produksi hulu, produksi
hilir, dan pemasaran
Terwujudnya efisiensi
manajemen rantai pasokan ikan,
bahan dan alat produksi, serta
informasi dari hulu sampai hilir
Pengelolaan
produksi dan
pemasaran di
bidang perikanan
Penyediaan dan
pengembangan
sarana dan
prasarana
Pengembangan
iptek, dan
peningkatan
kapasitas SDM
Pemanfaatan dan
pengembangan
TIK di bidang
perikanan
Pengembangan
jasa logistik di
bidang perikanan
Pengembangan
kelembagaan dan
tata kelola di
bidang perikanan
• Integrasi pias
atau jalur
logistik nasional
dari produksi ke
pemasaran
• Pembinaan
pengembangan
sistem logistik
ikan daerah
• Sistem standar
mutu dan
keamanan serta
sertifikasi
• Penyediaan
sarana dan
prasarana
logistik
pendingin
• Pengembangan
inovasi iptek
produksi,
pemasaran, dan
logistik
perikanan
• Pengembangan
pendidikan,
pelatihan, dan
penyuluhan di
bidang
produksi,
pemasaran, dan
logistik
• Penyediaan dan
diseminasi
informasi
produksi dan
pemasaran
• Pengembangan
sistem
informasi
manajemen
logistik ikan
nasional
• Pengembangan
sistem
ketelusuran
• Pengembangan
usaha dan
investasi bidang
jasa logistik
perikanan
• Jaringan
layanan
penyedia jasa
logistik
perikanan
• Pemberian
insentif bagi
jasa penyedia
logistik
• Pengembangan
kelembagaan
pengelolaan
SLIN
• Pembentukan
kelembagaan
pendukung SLIN
pada tingkat
pusat, provinsi,
dan
kota/kabupaten
• Tata kelola
akuntabilitas
kelembagaan45

46. Tata Kelola
Implementasi
pengembangan SLIN
dilakukan secara sinergi dan
terpadu di seluruh daerah
dengan dua pendekatan:
• Atas-bawah:
pengembangan pias
logistik ikan nasional yang
dipilih berdasarkan
potensi integrasi sentra
produksi dan konsumsi.
• Bawah-atas:
pengembangan sistem
logistik ikan daerah
menuju pemberdayaan
komoditi keunggulan
daerah dan ketahanan
pangan ikan.
Kebijakan tata kelola:
• Penyelarasan kepentingan
pelaku dalam SLIN dengan
prinsip kerjasama.
• Pengembangan,
implementasi, dan
replikasi untuk mencapai
tujuan termasuk
sertifikasi.
Kajian Kelayakan
Rencana Tindak
Implementasi
Pemantauan dan Evaluasi
Sosialisasi, kemitraan saling menguntungkan, pelatihan, sistem ukuran kinerja, teknologi
Tahapan 1-6 bulan 7-12 bulan 13-18 bulan 19-24 bulan
Kajian Kelayakan
Kerjasama
Rencana Tindak
Implementasi
Pemantauan
dan Evaluasi
Tahapan Pengembangan Program SLIN
46

47. Peta Jalan SLIN
Bertanggung-jawab
Tranparansi: registrasi, sistem informasi, dan ketelurusan
Standarisasi
Sertifikasi
Stabilisasi
2016
2017
2018
2020
2019
47

48. Concluding Remarks
48

49. Concluding Remarks
• The logistics industry is presented with new opportunities, such as the growing importance of
intra-regional markets, the expansion of E-Commerce and in providing specialized services to
a range of industry sectors.
• 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.
49

50. Thank You
50