the challenge of implementation of presidential regulation no.26/2012 on the blueprint of...

8/11/2019 The Challenge of Implementation of Presidential Regulation No.26/2012 on the Blueprint of Development of National Logistics System

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Tim Kerja SISLOGNAS/

Indonesian National Logistics Team

SISLOGNAS OfficeJakarta, 10 December 2012

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

Coordinating Ministry for Economic Affairs

Republic of Indonesia

1


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Outline

1. Background: Issues Leading to the Issuance of the National LogisticsSystem (SIStem LOGistik NASional/SISLOGNAS) Blueprint

2. Presidential Regulation No.26/2012 on the Blueprint for Development ofthe SISLOGNAS* Implementing Structure

Main Features

SISLOGNAS and MP3EI on PPP Scheme

Actions Plan 20112025

3. Challenges of Implementation 20122015 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, 2011June 2012 Studies

(c) The Use of ICT (KOJA & EDII): i-CARES/CargoLink, in the case of Toyota, Nov 20122

*English Unofficial Translation is available and will be sent through e-mail


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Country

LPI Rank

China 27

Thailand 35

Philippines 44

India 47

Tunisia 61

Honduras 70

Ecuador 71

Indonesia 75

Paraguay 76

Syrian Arab

Republic 80

Country LPI Rank

India 46

Morocco 50

Philippines 52

Vietnam 53

Egypt, Arab Rep. 57

Indonesia 59

Yemen, Rep. 63

Ukraine 66

Pakistan 71

Guatemala 74

1. Background

3

Presidential Instruction No. 5/2008 onFocus of

Economic Programs 2008-2009, among others:

Chapter II. Movement of Goods and Customs

Item C. 1(a): 2ndStage implementation of

Indonesian National Single Window (INSW);

Item C.2: Begin to prepare the SISLOGNAS

Blueprint.

Chapter VI. Commitment to Establish ASEAN

ECONOMIC COMMUNITY (AEC) 2015

Item 7(vi): Ratification of the Agreement for

the Integration of Priority Sectors (PIS) by

2013, where Logistics is the 12th Sector.

ASEAN Economic Community 2015 Blueprint,

Signed by Leaders on 13thASEAN Summit in

November 2007ASEAN Single Market and

Single Production Base

Word Bank LPI 2010 World Bank LPI 2012

Lower-Middle Income Lower-Middle Income


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2. Perpres No.26/2012 (1):

Implementing Structures

Signed: 5 March 2012; Entry-into-force: 5 March 2012

Establishes the SISLOGNAS Blueprintas an integral part of the Perpresand: It is prepared by collaboration of private sectors (associations), academician,

practitioners and ministries/government agenciesrepresentatives (40:40:20);

It is a reference on logistics development for relevant stakeholders and on policy

coordinationand 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 logisticsactors 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 Indonesias Economic Development 2011-2025 (KP3EI) established by Presidential

Regulation Number 32 Year 2011 on MP3EI 2011-2025.4


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2. Perpres No.26/2012 (2): Implementing Structure

An [implementing] Working Unit may be established the Coordinating Minister for Economic

Affairs (CMEA) acting as KP3EIsExecutive 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 SISLOGNASDevelopment.

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 withmembership 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.


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7/23MP3EI: Masterplan of the Acceleration and Expansion of Indonesian Economic Development, 2011 - 2025

ConnectivityEconomic

Corridor

SISLOGNAS

Mission of Indonesian Economy 2025To Actualize Self-Sufficient, Advanced, Just, and Prosperous Indonesia

To Improve

Social Welfare

To Improve

Competitiveness

MP3EI

Knowledge,

Technology and Art

2. SISLOGNAS Blueprint (4): Main Features - Framework

7


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2. SISLOGNAS Blueprint (5): Main Features - 6 Key-Drivers

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Local and National Network Integration Global Network Connection

Europe

City

Asia

America

IndonesiaInternational

Hub Port

Rural

City

City

Africa

Australia &

Oceania

Rural

Rural

Rural

Rural

Rural

Rural

Rural

Rural

InterIsland

Inter

Island

Inter

Island

2. SISLOGNAS Blueprint (6): Main Features - Network System

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Short Sea Shipping is the backbone of National Freight Transportation System

SLoC: Sea Lane of Communication; ALKI: Alur Laut Kepulauan Indonesia (Indonesian Archipelagic Sea Lane)

Pusat Distribusi Provinsi

Pusat Distribusi Nasional

Legend:

By sea / by rail By land / by rail / by seaBy sea / by rail / by land

Konektivitas:

Short Sea Shipping

Provincial Distribution Center

National Distribution Center

2. SISLOGNAS Blueprint (7): Main Features - Short Sea Shipping

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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.

Pusat Distribusi Provinsi

Pusat Distribusi Nasional

Legend:

Provincial Distribution Center

National Distribution Center

2. SISLOGNAS Blueprint (8): Main Features - Distribution Networkof Main and Strategic Commodities

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CUSDEC C/O Rcmd OtherDocs

P/O L/C D/OB/L

Other

LSP

QuarantineOtherGovt

Agencies

Shipping

LInes

Exporter

Importer

ForwarderMinistry

Trade

Customs

NILITSMESSAGINGHUB

INTERNATIONAL

GATEWAY

NATIONAL

GATEWAY

INTER ISLANDINTRA ISLAND

International

Trade

Domestic

Trade

National Single Window (G2G and B2G) Customs Advanced Trade System eTradeLogistics (B2B)

National Integrated Trade, Logistics and Intermodal Transport Messaging Hub System(Secured and Assured Messages Delivery System)

ASEAN SINGLE WINDOW GLOBAL NETWORK

An integrated services on data/information and documents for both domestic and

international trade, interconnected to ASEAN and Global Networks

2. SISLOGNAS Blueprint (9): Main Features - ICT Infrastructure

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2. SISLOGNAS Blueprint (10): SISLOGNAS & MP3EI on PPP Scheme

MP3EI

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 anew 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."

SISLOGNAS (Perpres No.26/2012) is part of MP3EI (PerpresNo.32/2011) http://www.ekon.go.id/activity/2011/02/07/download-file.

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http://www.ekon.go.id/activity/2011/02/07/download-filehttp://www.ekon.go.id/activity/2011/02/07/download-filehttp://www.ekon.go.id/activity/2011/02/07/download-filehttp://www.ekon.go.id/activity/2011/02/07/download-file


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Phase I (2011-2015)

Goal: lay a strong

foundation to establishan effective and efficient

National Logistics System

in order to achieve the

locally integrated vision

and create a strong basis

for being connected to

ASEAN logistics networks

Action: RegulatoryRevision, HR

Development and

Logistics Infrastructure

Improvement in order

to create Local and

National LogisticsIntegration

Phase II (2016-2020) Phase III (2021-2025)

Goal: strengthen domestic

logistics integration, andsynchronization,

coordination and

integration with ASEAN

logistics networks, and lay a

strong foundation to be

integrated with the global

logistic network to achieve

the Globally Connected

vision

Action: Development and

expansion of logistics

infrastructure, capacity

building for actors and

providers of logistics

services to make the

national logistics system

connected to the ASEANlogistics network

Goal: operate effective

and efficient national

logistics system

connected to the Global

logistics network

Action: Strengthening

of the National

Logistics System to be

connected to the

Global Logistics

network

National Logistics Costs of the

2015 GDP declines by 3% from

that of 2011

Indonesian LPI Score is 3.1



that of 2015




that of 2020


2. SISLOGNAS Blueprint (11): Action Plans

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2. SISLOGNAS Blueprint (12) is...

Provides awareness of growing problems in detail; Is a high priority program in governmentsagenda 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 fordifferent producs;

Requires SISLOGNASperformance measurement

Identifies bigwins

Recognizes the need of coordinating team to be

evolved to a possibly agency or council

15

3 Ch ll 20 20 ( )


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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

Namu and Makassar

2011-2015

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

Sumatra) are in operation

2012-2015

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 improvedthrough empowerment of national shipping and traditional/peoples shipping

2012-2015

8 Logistics centers to serve consolidated containers for SME exportersLCL cargoes

are established 2013-2015

16

3 Ch ll 2011 2015 (2)


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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

11Commercial SOEs functioning as Trading House for Basic, Strategic and export

Commodities are revitalized2012-2015

12 Roles of SOEs (Post, BGR and Bulog) in Rural Logistics are improved 2012-2015

13National education and training system of international standard for logistics

profession is underway2012-2015

14Regional Distribution Centers for basic and strategic commodities in each

economic corridor are constructed2012-2015

15Regulations and policies to promote efficiency in export-import activities are

synchronized2012-2015

16 Rupiah based logistics fees are in practice 2012-2015

17 Dry ports are operating efficiently 2012-2015

17

3 Ch ll 2011 2015 (3)


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3. Challenges 2011-2015 (3):From Action Plans/Bigwins to Implementation

Others

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

Note: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.

2012-2015

Support for the Secretariat:

Best/Good Practices

Professional Minutes of Meetings (incl. in English)

2012

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Study on Trade Releated System and Procedures, Japan International Cooperation Agency,

March 2004March 2005

Average

Required

Days from

Dischargeto Gate Out

Source : The Study on Trade Related Systems Procedures in The Republic of Indonesia Japan International Cooperation Agency, FinalReport, March 2005; DGBC/INSW Presentation, 3 Nov 2010

3,47

0,02

3,05

3,28

0,92

2,34

3,23

1,45

3,23

3,26

4,20

1,11

Jalur Hijau Jalur Hijau dgnAnalyzing Point

Jalur Merah Jalur Merah dgnAnayzing Point

days

1

2

3

4

5

6

7

8

6,54 6,54

7,91

8,57

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 pengeluarandr BC (Customs Approval)

Bongkar - PIB : Proses kedatangan kontainer barang impor, yaitu sejak pembongkaran dari kapal, movement, penimbunan s.d pengajuan dokumenimpor (PIB) ke Kantor Pelay. BC

1

1

2

4. Use of ICT as a Driver (1): Dwell-Time, JICA 2004-2005

4 Use of ICT as a Driver (2):

D ll

Ti t T j P i k/JICT


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JICT update for 2009(Jan - Sept): Dwell time declined from 6.3 days to 5.8 days or by 8%

-

50,000

100,000

150,000

200,000

250,000

Jan-08

Feb-08

Mar-08

Apr-08

May-08

Jun-08

Jul-08

Aug-08

Sep-08

Oct-08

Nov-08

Dec-08

Jan-09

Feb-09

Mar-09

Apr-09

May-09

Jun-09

Jul-09

Aug-09

Sep-09

Throughput(TE

Us)

0

1

2

3

4

5

6

7

8

Dwellingtime(d

ays)

Throughput

Dwell time

- Dwell time and througput for JICT terminal one

- Dwell time for full inbound containers excluding behandle and overbrengan

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]



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4. Use of ICT as a Driver (4):Dwell-Time di Tanjung Priok/JICT, the World Bank Jan 2011June 2012

5.245.34

4.64

4.84

5.42

6.11

6.43

6.18

5.61

6.46

6.22

6.38

4.00

4.50

5.00

5.50

6.00

6.50

7.00

Dwelling Time (hari)

Source: JICT, The World Bank

Hari



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4. Use of ICT as a Driver (5):Implementation of i-CARES/CargoLink at Tanjung Priok/Koja[The Case for Toyota, 14 Nov 2012]


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Tim Kerja SISLOGNAS/Indonesian National Logistics Team

Many Thanks!

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