21 CENTURY MARITIME SILK ROAD Maritime Connectivity : The Role of IPC in Maritime Logistic & Connectivity

Elvyn G Masassya President Director of PT Pelabuhan II (Persero) Chapter 1 Indonesia Logistic Profile Indonesia Logistic Challenge 2017

Indonesia LPI Score & Rank Indonesia Logistic Percentage per Component

5th 26% 32nd 4,14 45th Inve 63rd th ntor 64 st 3,43 71 y; 3,26 8,7 2,98 2,98 2,86 GDP 26% Lan Logistic d; Cost 8,2 Wat Other; 2,6Ader; min;0,8 4,3

Sing Malay Thai Ind Viet Phil Indonesia Logistics Cost is 26% of GDP. Indonesia Logistics Performance Index is The biggest component of this logistic ranked 63rd in the world and 4th among cost is Inventory cost. This is due to the ASEAN. With a value of LPI score 2.98 lack of integration between ports and industries.

PT Pelabuhan Indonesia II (Persero) Page 3 Integrated Port Network as Indonesia Logistic Challenge Solution

INTEGRATED PORT INTEGRATED PORT

BUYERS TRADE/ MANUFACTURE 3 PL/ FORWARDING PORT NETWORK FACTORY I

STORE I PORT PORT

VENDOR I DISTRIBUTION CENTRE FACTORY II STORE II SHIPPING LINE WAREHOUSE CARRIERS 3 PL/ FORWARDING

VENDOR II

FACTORY III CUSTOMER/ SHIPPERS STORE III

Port Network Integrated Port Port Network is a solution to improve Integrated port is a solution to improve connectivity among ports in Indonesia. connectivity between port & industrial This solution is in line with government area. This is in line with government programs called Sea Toll Program. programs to improve local welfare and reduce unemployment rate

PT Pelabuhan Indonesia II (Persero) Page 4 Implementation of Integrated Port Network Commercial Ports in Indonesia operated by 4 Companies (Pelindo I, Pelindo II, Pelindo III and Pelindo IV) act as a landlord and Port Operator

Belawan / Kuala Tanjung Bitung

Sorong/Seget

Makassar

Tanjung Priok

Tj. Priok Port : SUPER HUB – As the main gateway of international cargo 6 Other Ports : As the international gateway Main route of National Connectivity Supporting route of National Connectivity Main route of international Connectivity PT Pelabuhan Indonesia II (Persero) Page 5 High Level Roadmap of Integrated Port Network

1 2 Improvement of loop 3 4 Improvement of Improvement of Main Improvement of industrial connectivity (7 hub ports to connectivity between connectivity in 7 hub ports area infrastructure feeder port) industrial area & Port

PHASE I PHASE II Port Network Integrated Port

Loop Aceh Loop North East Belawan/Kuala Tanjung Sulawesi and North Maluku Bitung Loop North Papua Pontianak Sorong/Seget

Loop West Sulawesi Loop East Kalimantan Loop Maluku and Tanjung Priok Surabaya South-West Papua Loop East Nusa Loop Pantai Barat Tenggara Sumatera

Loop West Nusatenggara

5 Creating “intermodal information platform” Efficiency Improvement by minimize administration process to improve logistic chain visibility Integrated Port Network

PT Pelabuhan Indonesia II (Persero) Page 6 PHASE II PHASE III Integrated Port Integrated Port Network PHASE I Port Network

Total Supply chain to reduce Standardization of 10 Standardization of 6 national logistic cost 1 Infrastructure, Operation Infrastructure, Operation , , finance, commercial & Creating “intermodal finance, commercial & Human 11 Human resources in information platform” to resources in port area Industrial area improve logistic chain visibility 2 Maximize IT utilization 7 Collaboration among 12 Harmonization regulation industry especially cold among Supply Chain Investment in Ship & 3 chain & energy/petroleum stakeholders (Government, Dockyard Area industry port, industrial area, etc) 4 Improvement of shipping 8 Maximize IT utilization network, shipping navigation, security, and safety system 9 Improvement of commercial aspect by Professionalization & 5 attracting foreign Coordination among investment ports (Berth Window)

PT Pelabuhan Indonesia II (Persero) Page 7 Chapter 2 IPC Evolving Role to Improve Logistic Cost IPC Profile

Vision: “To Become a World Class Port, Excellent in Operation and Services”

SHIP SERVICE CARGO SERVICE OTHER SERVICES . Anchorage Service . Public Berth . Port Equipment maintenance . Mooring Service . Storage Services . Pilotage Service Warehouse . Land rental, Buildings, Water and Electricity

IPC BRANCHES IPC SUBSIDARIES Port of Jambi Port of Palembang 1. KSO Terminal Petikemas Koja (TPK Koja) Port of Pangkal Balam 2. PT International Container Port of Terminal (JICT) Port of Tanjung Pandan Teluk 1 3. PT Rumah Sakit Pelabuhan (RSP) Bayur 2 4. PT EDI Indonesia (EDII) 8 5 5. PT Multi Terminal Indonesia (MTI) 3 6 6. PT Integrasi Logistik Cipta Solusi 4 (ILCS) Port of Pontianak 7. PT Indonesia Kendaraan Terminal Port of Bengkulu 7 9 10 (IKT) 12 11 8. PT Jasa Peralatan Pelabuhan Port of Panjang Indonesia (JPPI) Port of 9. PT Pengembang Pelabuhan Port of Banten Indonesia (PPI) 10. PT Energi Pelabuhan Indonesia (EPI). Port of Sunda Kelapa Port of Tanjung Priok*

PT Pelabuhan Indonesia II (Persero) Page 9 IPC Roadmap To Become World Class Port

To maximize stakeholders value on sustainability basis in order to improve the national economy CORPORATE MISSION 2020 2019

2018 WORLD CLASS World class 2017 performance SUSTAINABLE 2016 Sustainable superior ESTABLISHMENT performance Establishment of ENHANCEMENT performance strengthening/ FIT IN INFRASTRUCTURE enhancing business

Fine tuning in every area

PT Pelabuhan Indonesia II (Persero) Page 10 IPC Initiative in Enhancement Year 2017

PORT INFRASTRUCTURE & OPERATION IT – PORT DIGITALIZATION Optimize Equipment & berth Utility 1 Implementation of Terminal Operating 1 System 2 Improvement terminal infrastructure 2 Implementation of TPS Online 3 Implementation of 24/7 work patterns 3 Implementation of Control Tower & Auto gate Improvement of port security & 4 safety 4 Implementation of Auto tally 5 Dredging 5 Implementation of CDM To improve Level of Services To Minimized administrative burden

INTEGRATED PORT COLLABORATION AMONG PORTS 1 Construction of toll Road port – 1 IPC Corporate university as the center Industrial Area of Human Resource development 2 Implementation of Inaportnet 2 Establish cooperation with industrial estate Company 3 Implementation of Integrated Billing System 2 Construction Industrial Area in Kijing & Sorong 4 Implementation of Berthing Window

To improve hinterland connectivity To improve connectivity among port

PT Pelabuhan Indonesia II (Persero) Page 11 IPC Initiative in Enhancement Year 2017 Port Infrastructure & Operation

PONTIANAK PORT RESULT (PONTIANAK PORT AS EXAMPLE CASE) . Construction of quay Condition Before Transformation . Procurement of Modern . Limited CY Area . Ship Waiting time (≥ 7

Equipment (QCC Twin Lift, RMGC, & Gantry Jib Crane) . Dominated by Manual days) Process . Bad indicator PALEMBANG PORT . Inefficient Performance of . Quay retrofitting stripping/stuffing and Pontianak Port . Procurement of Modern unclear operational . High cost for Equipment (QCC Twin Lift, policy customer caused by RMGC, & Gantry Jib Crane) Consequences cargo handling delay

PANJANG PORT Condition After Transformation . Quay retrofitting . Increasing CY Container Throughput (TEUS) . Procurement of Modern capacity from 4,500

Equipment (QCC, RMGC, & TEUs to 6,000 TEUs

Gantry Jib Crane) . Planning and control is done by Control

TELUK BAYUR PORT Tower

184557 201527 227130

246618 172892 . Construction of warehouse, . Adding terminal 2011 2012 2013 2014 2016 yard, and CPO tank marking and traffic . Procurement of Modern sign Container throughput is

Separation between Consequences Equipment (Gantry Luffing . increasing for the past 6 Container and Crane and RTGC) years & Ship waiting time Multipurpose Terminal activities less than 0.5 Hours

PT Pelabuhan Indonesia II (Persero) Page 12 IPC Initiative in Enhancement Year 2017 IT – Port Digitalization

IT ASPECT BRANCH IMPLEMENTATION UNTILL 2017 Result of IT Optimization Implementation 1. Tanjung Priok 6. Teluk Bayur Dwelling time 2017 (Days) of Terminal 2. Palembang 7. Sunda Kelapa Operating 3. Panjang 8. Bengkulu 6,5 System 4. Pontianak 9. Tanjung Pandan 5. Jambi 4,9 4,2 3,56 Implementation 1. Tanjung Priok 3. Pontianak 3,2 3,04 of TPS Online 2. Panjang 4. Palembang

Implementation 1. Tanjung Priok 4. Palembang

of Control 2. Pontianak 5. Panjang

2015

2013 2016

Tower & Auto 3. Teluk Bayur 2014 17-Mar gate 17-Feb The result of collaboration among Implementation 1. Panjang port and optimization of IT system of Auto tally 2. Tanjung Priok in supply chain activities Dwelling 3. Pontianak time is improving for the last 4 years Implementation All Branches of CDM Source : http://dev.idpcs.id/apps/f?p=122:1:14408944 275158::NO::P1_DATE:2017

PT Pelabuhan Indonesia II (Persero) Page 13 IPC Initiative in Enhancement Year 2017 Initiation of Smart Port 2020

Ideally, implementation of smartport, will be supported by the implementation of smart city (industrial location)

1 SMART PORT 2 SMART CITY Smart Port, one which uses the full potential of an IoT network and smart data solutions means that a port must be able to identify and take advantage of new business models within the larger ecosystem using platform online

1. Remote Control Center 8. Shore-based Power Supply 15. Data Market 2. Smart Gate 9. Empty Container Distribution Center 16. Cross Border E-Commerce 3. AGV Dispatch 10. Smart Intermodal Transportation 17. Cloud Stowage 4. Integrated Port Information System 11. Truck Uber 18. One Stop Service 5. Connected Ship 12. E-Logistics 19. Logistics Finance 6. Trade Facilitator 13. Supply Chain Synergy 20.E-Channel 7. Port Alliance 14. Supply Chain Visualization PT Pelabuhan Indonesia II (Persero) Page 14 IPC Initiative in Enhancement Year 2017 Integrated Port

Construction of toll Road port – Industrial Area Result of Integrated Port Congestion in Tj. Priok Port (hours)

2

0,5

Before After Establish cooperation with industrial estate The existence of Tanjung Priok Access Company Toll reduce congestion in the area around Tanjung Priok up to 40%. Time to go to the harbor is also estimated to be reduced by half an hour. But it’s not good enough, so IPC is aiming to reduce the congestion by constructing Cilincing-Cibitung toll road.

Source : Chairman of the Indonesian Toll Association (ATI)

PT Pelabuhan Indonesia II (Persero) Page 15 IPC Initiative in Enhancement Year 2017 Collaboration Among Ports

IPC Corporate university as the Implementation of Inaportnet Implementation of center of Human Resource Integrated Billing System development

Improving the quality of human Improving Document Improving Customer resources submission system payment system

Result of Among Ports Customer satisfaction index 2015-2017 The customer satisfaction score has increased significantly over the last 3 years. The Improvement of customer satisfaction scores is the result of 4,15 increased port services in Indonesia by improving the 4 quality of human resources, improving document 3,9 management systems and payment systems.

2015 2016 2017 PT Pelabuhan Indonesia II (Persero) Page 16 Chapter 3 IPC Strategic Project & Opportunity Collaboration IPC Strategic Project Kalibaru Port Development

General Description Location: Tanjung Priok, Jakarta Type : Container and Liquid BulkTerminal Development Period : 2012 – 2027 Investment : Rp 36 Trillion

Current Progress  Full Comercial operation for CT 1 on August 2016;  Development Phase 1 (CT 2; CT 3; PT 1; PT 2)  Dredging from -14 m LWS to -16 m LWS is completed  Reviewing business partners for CT2 and CT3 terminals  Common Gate Area has been completed

Investment Opportunities  32 Ha Reserved Area  Terminal Operator Partner for PT1 & PT2

PT Pelabuhan Indonesia II (Persero) Page 18 IPC Strategic Project Kijing Deep Sea Port General Description  Location:  Type : Container, Bulk Multipurpose Terminal  Development Period : 2017 – 2019  Investment : Rp 5.1 Trillion Current Progress  Presidential Regulation on the Acceleration of Development and Operation of Kijing Terminal has been published  On progress Land Acquisition Preparation: a. Coordination meeting of the preparation team b. Preparation of Preliminary Data Collection c. Socialization d. Public Consultation

Investment Opportunities  Contractor (Container, Bulk, Multipurpose)  Terminal Operator Partner (Container, Bulk, Multipurpose)  Barging Operator

PT Pelabuhan Indonesia II (Persero) Page 19 IPC Strategic Project Kijing Special Economy Zone

General Description  Location: West Kalimantan  Type : Special Economy Zone  Development Period : 2017 – 2019  Investment : Rp 2.6 Trillion

Current Progress  Coordination meeting of the preparation team  Preparation of Preliminary Data Collection  Socialization of Land Acquisition  Public Consultation of Land Acquisition

Investment Opportunities  Industrial Area  Land Utilization

PT Pelabuhan Indonesia II (Persero) Page 20 IPC Strategic Project Sorong Port Development General Description  Location: Seget District, West Papua  Type : Container Terminal  Development Period : 2017 - 2019  Investment : Rp 2.4 Trillion

Current Progress On progress of IPC Proposal for the integrated Sorong Port Development addendum

Investment Opportunities  Contractor  Terminal Operator Partner  Development Company Partner  Investor for Industrial Zone (fishery, mining)

PT Pelabuhan Indonesia II (Persero) Page 21 IPC Strategic Project CBL CANAL

General Description  Location: Cikarang-Bekasi, West  Type : Canal  Total Area : 200 Ha  Development Period : 2017 - 2019  Investment : Rp 5 Trillion Current Progress  A detailed review to follow up the recommendations of the PUPERA Ministry regarding the impact of inland waterways on channel function as flood control  Field survey

Investment Opportunities  Terminal Contractor  Capital & Maintenance Dredging Works  Barge Operator  Terminal Operator  Traffic/Navigational Equipment Provider

PT Pelabuhan Indonesia II (Persero) Page 22 IPC Strategic Project CILINCING – CIBITUNG TOLL ROAD

General Description  Location: Jakarta &  Type : Toll Road  Development Period : 2017 – 2019  Investment : Rp 1.9 Trillion

Current Progress  Land acquisition has been reach 41,92 Ha of required land total 222 ha  The formulation of draft amendment BUJT- BPJT regarding land acquisition  Discussion about re-alignment of trace JTCC with BPJT Investment Opportunities  Contractor  Development Company Partner

PT Pelabuhan Indonesia II (Persero) Page 23 Thank You

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