Nusantara Logistics Chain: Linking Indonesia Logistics to ASEAN Logistics
Togar M. Simatupang & Setijadi
Indonesian Society for Logistics and Supply Chain
11 March 2013
Overview
1. Logistics versus Supply Chain
2. Indonesia’s National Logistics System
3. ASEAN Logistics Network
4. Nusantara Logistics Chain
5. Concluding Remarks
2
Logistics versus Supply Chain
3
Logistics and Supply Chain
This chart illustrates the relationship among materials management, physical distribution, logistics management, and supply chain management. Distribution is a component of logistics management, and logistics management is a component of supply chain management.
Source: Markus Hesse and Jean-Paul Rodrigue (2004), "The transport geography of logistics and freight distribution", Journal of Transport Geography, Vol. 12, No. 3, pp. 171–184.http://www.wtgblog.com/history-of-logistics-and-supply-chain-management-infographic/ 4
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
Trade Logistics
Source: http://people.hofstra.edu/geotrans/eng/ch5en/conc5en/tradechain.html6
Logistics Services
Source: http://www.scm-operations.com/2012/01/logistics-management-concept-literature.html
7
Layers to Logistics Services
Source: http://people.hofstra.edu/geotrans/eng/ch5en/conc5en/layers_to_logistics_services.html8
Segmentation of logistics service providers
Source: Baumgarten, H. and Zadek, H. (2003), Segmente der Logistikdienstleister, TU Berlin Visuality. 9
Source: http://www.perceptant.com/services_supply_cas.shtml10
DHL Supply Chain Services
Source: http://www.dp-dhl.com/en/about_us/corporate_divisions/supply_chain.html
Reverse Logistics Environmental Compliance
Finished Goods Warehousing Assembly and Packing services
Procurement Services Raw Materials Warehousing Raw Materials Transportation International Supply Chain Management
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Indonesia’s National Logistics System
12
IPTEK / INOVASI
1 2
313
MP3EI
ConnectivityEconomic Corridors
National Logistics System
Economic Mission 2025Self sufficient, advanced, just, and prosperous Indonesia
Science & Tech
Improving Prosperity
Improving competitiveness
National Logistics System & Indonesia Economic Master Plan (MP3EI)
Human Resources
Logistics Infrastructure
Logistics Service Providers
Key Commodity
Information and Communication Technology (ICT)
Harmonization of Regulation
National Competitiveness
Social Welfare
Six Key Drivers of National Logistics System (NLS)
14Source: PERPRES No. 26 Tahun 2012 tentang Cetak Biru Pengembangan SISLOGNAS
Corridor Papua & Maluku
Corridor Sulawesi
Implementation Framework
Strategy, Program, and Action Plan
Program and Action Plan Ministries, Province/Regency/City
Locally Integrated and Globally Connected for National Competitiveness and Social
WellfareMP3EI
Mid Term of National Development Plan
KONSUMEN
PRODUSEN
Regulasi dan Kebijakan
Infrastruktur Transportasi
SDM SDMSDM
SDM SDMSDM
Infrastruktur Infomasi (TIK)
Regulasi dan Kebijakan
Grosir Distributor Pasar Ritel
Saluran Distribusi
Pelaku dan Penyedia Jasa Logistik
Corridor Kalimantan
Corridor Bali dan Nusra
Corridor Jawa
Corridor Sumatra
Background Substances The challenges of implementation15
Sumber: Sislognas (2012)
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
ASEAN Logistics Network
17
Master Plan on ASEAN Connectivity
18
19Source: http://asiafoundation.org/in-asia/2010/09/22/philippines-spearheads-asean-effort-to-establish-regional-ro-ro-sea-transport-network/
Asia-wide Partnership for Seamless Logistics
20Source: http://www.iist.or.jp/wf/magazine/0508/0508_E.html
ASEAN-Japan-India Logistics Network
21
Source: http://www.mofa.go.jp/policy/oda/white/2011/html/honbun/b1/s3_2.html
Nusantara Logistics Chain
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. 23
Insight of Nusantara Logistics Chain
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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
GreenLogistics
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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
26
The Benefits of Logistics Improvements
Source: http://people.hofstra.edu/geotrans/eng/ch5en/appl5en/benefits_logistics_improvements.html 27
The Proposed Leverages
1. Logistics Landscape2. Logistics and supply chain for development3. Single window4. Multi modal transport system5. Coastal Logistics6. Network based logistics visibility platform7. Logistics Business Development8. Green Logistics9. Development forums for Nusantara logistics
chain at each economic corridor
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1. Logistics Landscape
Source: http://aftercity.mit.edu/?p=47929
2. Logistics for Development
Source: http://people.hofstra.edu/geotrans/eng/ch6en/conc6en/nodeslinkages.html
Nodes, Linkages and Urban Form
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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
31
4. Multi Modal Transport System
Source: http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/multimodal.html
32
Source: http://sic.ici.ro/sic2006_2/art07.html
33
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.html34
6.Networked Logistics Platforms
Source: http://www.clresearch.com/research/detail.cfm?guid=07598B62-3048-79ED-99F8-974CD7202097
35
7. Logistics Business Development
Source: http://www.scandria.eu/en/scandria-logistic-business-development-strategy.html 36
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.
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Concluding Remarks
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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
Thank You
40
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