PT. Bulk resource Optimizers June 24, 2014 www.broindo.com

Indonesian businesses are saddled with higher logistics costs than their counterparts in other Asian nations

Aside from higher costs, Indonesian businesses have to endure longer delivery times as well as less than predictable delivery schedules

Indonesian cargo movement causes its citizens great hardship and cost

Deep Sea Port

Container Dry Port

Industrial Zone

Industrial Zone

Container Dry Port

Distribution Hub

Deep Sea Port

Bulk Terminal

Cargo Railway

Road Transport

Feeder Vessels

Secondary Sea Port

Cargo volume & type Frequency of connections Is de-consolidation required? Distance to destination Is cargo perishable or heat sensitive? Raw materials or semis for processing or

manufacturing Finished products ready for distribution Population density

Cargo which needs to travel more than 15 km from the deep sea port should go by rail rather than by road whenever possible

Cargo from the container dry port can then go by road to destination

Cargo deconsolidation centers as well as special bonded zones can be set up within the container dry port

Deep Sea Ports for high volume cargo whether bulk or break-bulk

Bulk terminals within the immediate area of Deep Sea Ports

Railway connection from Deep Sea Ports to Dry Container Ports

Industrial Zones set up near Dry Container Ports for processing, tolling, manufacturing and packaging

Indonesia should adopt paperless process for Customs clearance to save paper and fuel (this is a Green initiative)

National Single Window must be nationwide Customs website must link to related bodies

such as MIGAS, BPPOM and Trade Ministry with shared databases

Customs inspection should be available at Deep Sea Ports as well as Container Dry Ports

Reduced time in clearing import & export cargo

Reduced storage costs & congestion at ports of entry/exit

Elimination of smuggling & leakage of import duties as well as other taxes

More reliable trade data for Indonesia which can be used by Indonesian embassies overseas

No more cash trading hands at the ports & Customs – all payments should be electronic and TRACEABLE

All costs and expenses incurred to be receipted thus conforming with international standards of good corporate governance

Customs & the Indonesian government should be the solution, not the impediment

Tanjung Priok is the 22nd busiest port in the world with 6.1 million TEUS in 2012 just ahead of Long Beach, California

Cargo imports into Indonesia in 2013 totaled 141 million tons

Cargo exports from Indonesia in 2013 totaled 700 million tons

Majority of Indonesia’s exports are in the form of bulk cargo

Indonesia’s trade volume is very likely to increase particularly in the form of imports via container

Deep sea ports need to have vast surrounding land bank to allow for future growth & development

Cargo terminals, bulk terminals & bulk liquid storage should be located beside deep sea ports

For heavy industrial manufacturing & power generation, it makes sense to be located near deep sea ports so that inbound raw material can be efficiently delivered

Coal & fuel should not have to be transported long distances to point of use – it should be electricity generated that is transported, not the raw material

The Jabodetabek area should be served by 2 deep sea ports one in the Banten Regency to handle everything up to West Jakarta and another in the Bekasi area which can serve even Bandung

This will enable the industrial zones in both the

East and West to reduce their logistics costs as well as ease the Jakarta traffic problems

The development of industrial zones should be undertaken by the government to move industrial activity away from the densely- populated commercial center of Jakarta

The government should incentivize industries to re-locate to designated industrial zones

Infrastructure such as utilities, electricity, road & railway links should be included

For Indonesia to become competitive globally, it needs efficient infrastructure

Infrastructure alone will not make Indonesia competitive and efficient, all processes must be streamlined so that they actually facilitate instead of frustrate

Thank You!