ASEAN Economic Community-Port, Infrastructure and Logistic Improvement
ASEAN Economic Community
Port, Infrastructure and Logistic Improvement
rahman.kurniawan@maersk.com
Global Trade Flow and Indonesia Context
Asia - USEC
EAST WEST TRADE
Asia – Middle
east
Asia - USWC
Intra-Asia
Asia - Europe
Asia - WCSA
Asia - Africa
Asia - AUS
Asia - ECSA
China is still the main driver of east west trade
New markets continuously emerge due to slow recovery of demand from EUR and USA
Major routes are passing Malacca strait
Transport & logistics setup must be put into context of global trade routes
Manufacturing Beyond China
Manufacturing beyond China - Deloitte Consulting LLP
Darin Buelow, Doug Gish & Josh Timberlake (March 19, 2013)
Indonesia Logistics Performance Index
Logistics Performance Index (LPI) 2014
▪ Indonesia LPI score improved by 0.14
4,00
3,59
compare to 2012, move up on global rank
from 59 to 53
3,43
3,15
3,08
3,00
▪ Initiatives and attention from government
acknowledged, but implementation of
programs are still challenge
▪ Infrastructure remains as one of key driver to
Country
Global rank
SIN
MAL
THA
VNM
INA
PHI
5
25
35
48
53
57
support better supply-chain system
Total 160 country
Global rank
Indonesia LPI drivers
Customs
Infrastructure
International shipments
Logistics competence
Tracking & tracing
Timeliness
Source : http://lpi.worldbank.org/
2,87
2,92
2,87
3,21
3,11
3,53
vs SEA avg
55
-0.34
56
-0.39
74
-0.47
41
-0.12
58
-0.26
50
-0.17
Indonesia LPI Positions
Country
LPI
Rank/Score
Customs
Infrastructure
International
shipments
Logistics
competence
Tracking &
tracing
Timeliness
2012
Singapore
1
4.13
1
4.1
2
4.15
2
3.99
6
4.07
6
4.07
1
4.39
Malaysia
29
3.49
29
3.28
27
3.43
26
3.4
30
3.45
28
3.54
28
3.86
Thailand
38
3.18
42
2.96
44
3.08
35
3.21
49
2.98
45
3.18
39
3.63
Philippines
52
3.02
67
2.62
62
2.8
56
2.97
39
3.14
39
3.3
69
3.3
Vietnam
53
3
63
2.65
72
2.68
39
3.14
82
2.68
47
3.16
38
3.64
Indonesia
59
2.94
75
2.53
85
2.54
57
2.97
62
2.85
52
3.12
42
3.61
Country
LPI
Rank/Score
Customs
Infrastructure
International
shipments
Logistics
competence
Tracking &
tracing
Timeliness
2014
Singapore
5
4
3
4.01
2
4.28
6
3.7
8
3.97
11
3.9
9
4.25
Malaysia
25
3.59
27
3.37
26
3.56
10
3.64
32
3.47
23
3.58
31
3.92
Thailand
35
3.43
36
3.21
30
3.4
39
3.3
38
3.29
33
3.45
29
3.96
Vietnam
48
3.15
61
2.81
44
3.11
42
3.22
49
3.09
48
3.19
56
3.49
Indonesia
53
3.08
55
2.87
56
2.92
74
2.87
41
3.21
58
3.11
50
3.53
Philippines
57
3
47
3
75
2.6
35
3.33
61
2.93
64
3
90
3.07
Rank in 2014 among 6 (six) ASEAN Exporting Countries
• Rank as # 4 on Logistic Competence, Timeliness
• Rank as # 5 on Customs, Infrastructure, Tracking & Tracing
• Rank as # 6 on International Shipments
South East Asian Top Ports
Top 10 Export Commodities
INDONESIA
1. Coal Briquettes
2. Petroleum Gas
3. Palm Oil
4. Crude Petroleum
5. Rubber
6. Refined Petroleum
7. Leather Footwear
8. Coconut Oil
9. Lignite
10. Petroleum Coke
THAILAND
1. Computers
2. Rubber
3. Delivery Trucks
4. Refined Petroleum
5. Gold
6. Cars
7. Vehicle Parts
8. Rice
9. Raw Sugar
10. Office Machine Parts
VIETNAM
1. Broadcasting Equipment
2. Crude Petroleum
3. Leather Footwear
4. Computers
5. Coffee
6. Rice
7. Rubber Footwear
8. Textile Footwear
9. Integrated Circuits
10. Other Furnitures
• Indonesia export commodities are dominated by natural resources or intermediate products.
• Thailand export commodities consist of high value cargoes : electronics, automotive and consumer goods
• Vietnam have line of consumer goods in their export portfolio
End to end Integrated Improvement
Manufacture
Transportation
Port
Infrastructure Support
Adequate Access
Capacity
Human Resources
Lead Time
Facility
Incentive for Investment
Alternative Transportation Mode
Productivity
Domestic Consumption
Reliability
Technology
Law and Regulation, Security, Stability, Environment, Certainty
Locally Integrated, Globally Connected
what does it take to get there…
•
Adequate and modernised Infrastructure. “Low hanging fruits” approach will no
longer sufficient. Increase private sector participation in building infrastructure requires
massive investment
•
Inter-coastal connectivity at competitive cost to drive both domestic trades and
increase export
•
Synchronized regulations and laws, avoid overlap and provide clear direction for
conducive business climate
•
Human resource in transport and logistics sector, addressing both capability and
availability
•
Enhancement of information and communication technology
•
Export commodity, shifting from extractive and natural based commodities to valueadded commodities
•
International gateway to fit with global trade routes
Thank You
Locally Integrated, Globally Connected
what does it take to get there…
• Adequate and modernised Infrastructure. Private sector participation is required
Modernisasi Infrastruktur. Partisipasi swasta dibutuhkan karena investasi yang sangat besar
• Inter-coastal connectivity at competitive cost to drive both domestic trades and export
Koneksitas antar pulau untuk meningkatkan perdaganagna domestik dan ekspor
• Synchronized regulations and laws, avoid overlap and provide clear direction for conducive
business climate
Sinkronisasi Hukum dan Regulasi, tidak tumpang tindih dan mendukung iklim bisnis
• Human resource in transport and logistics sector, addressing both capability and availability
Sumber Daya manusia di sektor transportasi dan Logistik
• Enhancement of information and communication technology
Peningkatan teknologi komunikasi dan informasi
• Export commodity, shifting from extractive and natural based commodities to value-added
commodities
Merubah portfolio ekspor dari hasil alam ke komoditas yang memiliki “Nilai Tambah” tinggi
• International gateway to fit with global trade routes
Pintu gerbang International yang sesuai dengan arus perdagangan Global
Container Terminal Ports in 3 ASEAN Countries
INDONESIA
THAILAND
VIETNAM
• INDONESIA : Biggest capacity compared to Thailand and Vietnam, but still perceived less efficient compared to
other big Ports in other ASEAN Countries, especially in vehicle cargos handling.
• THAILAND : Most of containerized cargoes have been transshipped over Singapore, partly because of the draft
limitations that exist in the river port of Bangkok. But Laem Chabang port has begun to receive direct calla in
major East – West trade.
• VIETNAM : Since major ports in the Southern are estuarine ports, large vessels cannot use these ports. Major
ports have advanced and sufficient facilities including EDI systems and ample handling capacity again present
demands
Port, Infrastructure and Logistic Improvement
rahman.kurniawan@maersk.com
Global Trade Flow and Indonesia Context
Asia - USEC
EAST WEST TRADE
Asia – Middle
east
Asia - USWC
Intra-Asia
Asia - Europe
Asia - WCSA
Asia - Africa
Asia - AUS
Asia - ECSA
China is still the main driver of east west trade
New markets continuously emerge due to slow recovery of demand from EUR and USA
Major routes are passing Malacca strait
Transport & logistics setup must be put into context of global trade routes
Manufacturing Beyond China
Manufacturing beyond China - Deloitte Consulting LLP
Darin Buelow, Doug Gish & Josh Timberlake (March 19, 2013)
Indonesia Logistics Performance Index
Logistics Performance Index (LPI) 2014
▪ Indonesia LPI score improved by 0.14
4,00
3,59
compare to 2012, move up on global rank
from 59 to 53
3,43
3,15
3,08
3,00
▪ Initiatives and attention from government
acknowledged, but implementation of
programs are still challenge
▪ Infrastructure remains as one of key driver to
Country
Global rank
SIN
MAL
THA
VNM
INA
PHI
5
25
35
48
53
57
support better supply-chain system
Total 160 country
Global rank
Indonesia LPI drivers
Customs
Infrastructure
International shipments
Logistics competence
Tracking & tracing
Timeliness
Source : http://lpi.worldbank.org/
2,87
2,92
2,87
3,21
3,11
3,53
vs SEA avg
55
-0.34
56
-0.39
74
-0.47
41
-0.12
58
-0.26
50
-0.17
Indonesia LPI Positions
Country
LPI
Rank/Score
Customs
Infrastructure
International
shipments
Logistics
competence
Tracking &
tracing
Timeliness
2012
Singapore
1
4.13
1
4.1
2
4.15
2
3.99
6
4.07
6
4.07
1
4.39
Malaysia
29
3.49
29
3.28
27
3.43
26
3.4
30
3.45
28
3.54
28
3.86
Thailand
38
3.18
42
2.96
44
3.08
35
3.21
49
2.98
45
3.18
39
3.63
Philippines
52
3.02
67
2.62
62
2.8
56
2.97
39
3.14
39
3.3
69
3.3
Vietnam
53
3
63
2.65
72
2.68
39
3.14
82
2.68
47
3.16
38
3.64
Indonesia
59
2.94
75
2.53
85
2.54
57
2.97
62
2.85
52
3.12
42
3.61
Country
LPI
Rank/Score
Customs
Infrastructure
International
shipments
Logistics
competence
Tracking &
tracing
Timeliness
2014
Singapore
5
4
3
4.01
2
4.28
6
3.7
8
3.97
11
3.9
9
4.25
Malaysia
25
3.59
27
3.37
26
3.56
10
3.64
32
3.47
23
3.58
31
3.92
Thailand
35
3.43
36
3.21
30
3.4
39
3.3
38
3.29
33
3.45
29
3.96
Vietnam
48
3.15
61
2.81
44
3.11
42
3.22
49
3.09
48
3.19
56
3.49
Indonesia
53
3.08
55
2.87
56
2.92
74
2.87
41
3.21
58
3.11
50
3.53
Philippines
57
3
47
3
75
2.6
35
3.33
61
2.93
64
3
90
3.07
Rank in 2014 among 6 (six) ASEAN Exporting Countries
• Rank as # 4 on Logistic Competence, Timeliness
• Rank as # 5 on Customs, Infrastructure, Tracking & Tracing
• Rank as # 6 on International Shipments
South East Asian Top Ports
Top 10 Export Commodities
INDONESIA
1. Coal Briquettes
2. Petroleum Gas
3. Palm Oil
4. Crude Petroleum
5. Rubber
6. Refined Petroleum
7. Leather Footwear
8. Coconut Oil
9. Lignite
10. Petroleum Coke
THAILAND
1. Computers
2. Rubber
3. Delivery Trucks
4. Refined Petroleum
5. Gold
6. Cars
7. Vehicle Parts
8. Rice
9. Raw Sugar
10. Office Machine Parts
VIETNAM
1. Broadcasting Equipment
2. Crude Petroleum
3. Leather Footwear
4. Computers
5. Coffee
6. Rice
7. Rubber Footwear
8. Textile Footwear
9. Integrated Circuits
10. Other Furnitures
• Indonesia export commodities are dominated by natural resources or intermediate products.
• Thailand export commodities consist of high value cargoes : electronics, automotive and consumer goods
• Vietnam have line of consumer goods in their export portfolio
End to end Integrated Improvement
Manufacture
Transportation
Port
Infrastructure Support
Adequate Access
Capacity
Human Resources
Lead Time
Facility
Incentive for Investment
Alternative Transportation Mode
Productivity
Domestic Consumption
Reliability
Technology
Law and Regulation, Security, Stability, Environment, Certainty
Locally Integrated, Globally Connected
what does it take to get there…
•
Adequate and modernised Infrastructure. “Low hanging fruits” approach will no
longer sufficient. Increase private sector participation in building infrastructure requires
massive investment
•
Inter-coastal connectivity at competitive cost to drive both domestic trades and
increase export
•
Synchronized regulations and laws, avoid overlap and provide clear direction for
conducive business climate
•
Human resource in transport and logistics sector, addressing both capability and
availability
•
Enhancement of information and communication technology
•
Export commodity, shifting from extractive and natural based commodities to valueadded commodities
•
International gateway to fit with global trade routes
Thank You
Locally Integrated, Globally Connected
what does it take to get there…
• Adequate and modernised Infrastructure. Private sector participation is required
Modernisasi Infrastruktur. Partisipasi swasta dibutuhkan karena investasi yang sangat besar
• Inter-coastal connectivity at competitive cost to drive both domestic trades and export
Koneksitas antar pulau untuk meningkatkan perdaganagna domestik dan ekspor
• Synchronized regulations and laws, avoid overlap and provide clear direction for conducive
business climate
Sinkronisasi Hukum dan Regulasi, tidak tumpang tindih dan mendukung iklim bisnis
• Human resource in transport and logistics sector, addressing both capability and availability
Sumber Daya manusia di sektor transportasi dan Logistik
• Enhancement of information and communication technology
Peningkatan teknologi komunikasi dan informasi
• Export commodity, shifting from extractive and natural based commodities to value-added
commodities
Merubah portfolio ekspor dari hasil alam ke komoditas yang memiliki “Nilai Tambah” tinggi
• International gateway to fit with global trade routes
Pintu gerbang International yang sesuai dengan arus perdagangan Global
Container Terminal Ports in 3 ASEAN Countries
INDONESIA
THAILAND
VIETNAM
• INDONESIA : Biggest capacity compared to Thailand and Vietnam, but still perceived less efficient compared to
other big Ports in other ASEAN Countries, especially in vehicle cargos handling.
• THAILAND : Most of containerized cargoes have been transshipped over Singapore, partly because of the draft
limitations that exist in the river port of Bangkok. But Laem Chabang port has begun to receive direct calla in
major East – West trade.
• VIETNAM : Since major ports in the Southern are estuarine ports, large vessels cannot use these ports. Major
ports have advanced and sufficient facilities including EDI systems and ample handling capacity again present
demands