3rd Meeting of The COMCEC Transport and Communication Working Group

Developing Multimodal Freight Transport (MFT): Indonesia Current Implementation

Ministry of Transportation Republic of Indonesia

1. BACKGROUND

INDONESIA – THE LARGEST ARCHIPELAGO IN THE WORLD

Number of Islands : 17.504 Coast Line Length : + 95.181 km Area of the Land : 1,9 million km2

Area of the Sea : 5,8 million km2

Multimodal Transport and Logistic System plays important role

Source: Centre for Logistics and Supply Chain Studies, Institut teknologi Bandung (ITB)

2. PROBLEMS

MULTIMODAL TRANSPORT PROBLEMS

• Inadequate infrastructure support both quantity and quality • The ineffectiveness of intermodal transportation and interconnection

between port infrastructure, warehousing and transportation • Low competitiveness of national multimodal transport service

provider both in national and global level • Poor national and international networking • The low competence of human resource and management • The lack of education institution and training institution • Infrastructure & network of information & communication technology

unreliable • National policies at multimodal transport is still sectoral • No institution which oversees the implementation of multimodal

transport development

3. REGULATION

TRANSPORTATION REGULATIONS RELATED TO MULTIMODAL TRANSPORT

• Transportation Acts Provision about Multimodal Transport is stated on:

- Act No. 23/2007 on Railways article 148; - Act No. 17/2008 on Shipping article 55; - Act No. 1/2009 on Civil Aviation article 191; - Act No. 22/2009 on Traffic and Road Transport article 165.

• Government Regulations - Government Regulations No. 8/2011 on Multimodal Transport • Ministerial Regulation - Ministerial Regulation No. 15/2010 on Blue print on Intermodal/ Multimodal Transport - The Ministerial Regulation No. 8/2012 on Multimodal Transport Implementation and Operation come into force on February 8, 2012

4. STRATEGIES

1. Infrastructure Network Integration

2. Integration of Services Network

3. Improvement of Multimodal Transportation Company/HRD

Strategy on Multimodal TRANSPORT “… the carriage of goods by at least two different modes of transport

on the basis of a multimodal transport contract

AIM: To create one stop service (3 S’s), ; i.e single operator, single tariff and single document for cargo transport

STRATEGIES OF INFRASTRUCTURE DEVELOPMENT

Source: Blueprint of Sislognas, Desember 2009

STRATEGIES a) Port

a) Improve operational efficiency by implementing an integrated port management (Port Logistics Management), optimize port capacity, and develop interconnection between hinterland and international hub.

b) Sea Transport 1) Enforce cabotage for domestic sea transport totally on roadmap schedule. 2) Improve the efficiency and effectiveness of sea transport services which carried out

in an integrated manner and through the arrangement of route network.

c) River and Inland Water Transport 1) Develop ferry transportation industry to increase the smoothness and capacity of

the shipping channel in the South, Central & North Belt so as to form an efficient multimodal transport network.

TARGET AND STRATEGIES OF LOGISTICS INFRASTRUCTURE DEVELOPMENT

STRATEGIES

d) Road Transport 1) Reduce the road load by developing multimodal transportation and logistics center

network as an effort to improve the smoothness of freight transport from production center to outlet-inlet of export-import and inter-island.

2) Increase the technical availability and feasibility of road transport infrastructure that ensures the adequacy, reliability and safety of the roads in order to support the smoothness of national logistics system.

e) Rail Transport Develop the rail network for long distance freight transport in Sumatra, Java and Kalimantan.

f) Airport and Air Transport Optimize the role of existing airports to be able to serve as cargo ports.

Source: Blueprint of Sislognas, Desember 2009

NEW CONTAINER TERMINAL NORTH KALIBARU PORT OF TANJUNG PRIOK

New Port Proposal

Source: JICA, 2012

HR COMPETENCY STANDARDS HAVE BEEN ORGANIZED IN THE FIELD OF MULTIMODA TRANSPORT AND LOGISTICS INDUSTRY

8 sector (loading/unloading, customs & quarantine, consolidation, cargo

handling, warehousing, transportation, insurance, hazardous

goods handling) and 63 unit of competence in the field of multimodal

transport and logistic

•Sector of transportation management consists of 7 (seven) units of competence i.e. : •Route planning; •Cargo handling of land transport; •Cargo handling of rivers, lakes, and Ro-Ro transport; •Cargo handling of the railway transport; •Cargo handling of sea transport; •Cargo handling of air transport; •Setting up the infrastructure of special items. •Sector of warehousing management consists of 3 (three)

units of competence i.e. : •Warehousing administration •To receive goods •To release goods

10 units of competence

devided into 2 sector:

63 units of competence has been identified, 10 units of competence are currently at the stage of pre Convention

INSW & INAPORT • Indonesia National Single Window; HARMONIZED

SYSTEM (HS) INFORMATION :Tariff, Import Duty, Prohibition and Restriction For Import and Export Regulations.

• INAPORT is an Electronic Portal that is open and neutral in order to facilitate the exchange of data and information of port services. It is just launched on 22 January 2014, implemented in Tanjung Priok Port, followed by Belawan Port in February, Makassar Port in March and Tanjung Perak Port in April.

Providing Information System for SME

• ALFI/ILFA have been introducing information system for its members to improve awareness on the benefits of IT system

» Applying basic system for standard operation, offering template-ready system, user friendly interface and cloud-based system, in which economically more affordable to SMEs.

Maritime Based Logistics

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

Short Sea Shipping is the backbone of National Freight Transportation System

Provincial Distribution Center

National Distribution Center

Short Sea Shipping

5. SUCCESS STORIES

Success Stories Government Regulation on Multimodal Transport effective into force february 2011,

after 11 years of proposal of transport regulation submitted in 2000 Reduce the Tariff on Security Charge after the implementation of Regulated Air

Cargo Regime Customs accepted surety bond issued by insurance company to cover customs

broker’s activity instead of blocking the money more or less USD 30 000.00 as a customs bond

ILFA’s STC (standard Trading Condition ) which first issued on 1986 and last revise on 2011 was accepted and endorsed by the Indonesian Government in 2013 as mentioned on Ministerial Regulation no. 8/2012

ILFA’s multimodal transport documents : FBL (Fiata Bill of Lading issued by FIATA) and DAB (Dokumen Angkutan Barang issued by ILFA/Gafeksi) officially accepted by the Indonesian Government