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Freight Transport in Indonesia

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Freight Transport in Indonesia Ministry of Transportation of Indonesia FREIGHT TRANSPORT IN INDONESIA Dr. Hananto Prakoso Bangkok, June 2016 INDONESIA • Economic activities are concentrated in • Population 250 million Urban area, especially around Java • 55% in urban area Island. • The lack of transportation infrastructure in • 17,500 islands (5 big islands) several sectors caused industrial activity • 50% GDP in Java cannot spread to under-developed and 2 isolated areas. FREIGHT MOVEMENT IN INDONESIA 2007-2012 Seaport handle more than 90 percent of freight transportation, as compare with the total non-road freight transportation (rail freight, and air freight) in Indonesia. Source : Indonesian Statistical Agency, Analysis by Frost & Sulivan PROBLEM STATEMENT: THE HIGH COST OF TRANSPORT LOGISTICS IN INDONESIA Transport cost comparison: Jkt – Padang : Rp. 7,5 Million - Rp. 8 Million / Container 20 Feet; Jkt – Shanghai : Rp. 4,5 Million / Container 20 Feet. Illegal retribution Transport, Legal retribution warehousing, and Logistic cost and tax handling costsl (National) become high increasing High-economic cost Trade between regions becomes unbalanced (Unbalanced Trade / Freight / Cargo) à No Backhaul Non-Java regions becomes Low Inter-regional economic Attractiveness Solution: disparities between Java and non-Java regions ü For the huge Archipelagic Investment and nation such as Indonesia, the industry products in decreasing of National Logistic Java regions Investment and become massive industry products in Cost is highly necessary by non-Java regions balancing the number of freight are poor transport facility among the In Java regions: The concept of regions (Java and Non-Java High Attractiveness Development with [Infrastructure + Java as the “growth regions) and the development Human resource + center” of new economic centers in Big market+ insentif Non-java Islands progressively. + etc] ü The scenario of development Greater Jakarta Transport Authority policy in Non-Java regions must not business oriented. CO2 Emission in Transport Sector 20.7% of total emission Air , 9% MariEme , 1% Land , 90% Source: Naonal Planning Agency, 2010 Badan Pengelola Transportasi Jabodetabek 5 Naonal Strategic Plan (ConnecEvity) MARITIME IS PRIORITY OF THE INDONESIAN GOVERNMENT By implemenBng MariBme super corridor transportaBon system • link thousands of Indonesian islands from the eastern to the Western regions • cung freight costs up to 50 percent 6 Route Origin Base Line Distance (MIL) Capacity No Code Tg. Perak -700- Wanci -290- Namlea -326- Fakfak -182- Kaimana -215- Timika -215- Kaimana -182- Fakfak -326- Namlea -290- Wanci -700- 1 Tg. Perak T-1 Tg. Perak 3426 115 TEUS Tg. Perak -731- Kalabahi -232- Moa -224- Saumlaki -240-Dobo -510- Merauke -510- Dobo -240- Saumlaki -224- Moa -232- Kalabahi -731- 2 Tg. Perak T-2 Tg. Perak 3874 350 TEUS Tg. Perak -656- Larantuka -32- Lewoleba -152- Rote -80- Sabu -119- Waingapu -119- Sabu -80- Rote -152-Lewoleba -32- Larantuka -656- 3 Tg. Perak T-3 Tg. Perak 2078 115 TEUS Tg. Priok -794- Makassar -1078- Manokwari -120- Wasior -110- Nabire -100- Serui -120- Biak -120- Serui -100- Nabire -110- Wasior -120- 350 TEUS 4 Tg. PrioK T-4 Manokwari -1078- Makassar -794- Tg. Priok 4644 Makassar -780- Tahuna -100- Lirung -152- Morotai -27- Tobelo -150- Ternate -97- Babang -97- Ternate -150- Tobelo -27- Morotai -152- 5 Makassar T-5 Lirung -100- Tahuna -780- Makassar 2608 350 TEUS 3000 Ton 6 Tg. PrioK T-6 Tg. Priok -570- Tarempa -130- Natuna -130- Tarempa -570- Tg. PrioK 1400 (GC) Indonesian Case: Freight Transport along Java Island Time = 75 hours Cost = 7 million IDR ORIGIN 1,000 Km DESTINATION Time = 40 hours Cost = 3,5 million IDR Greater Jakarta Transport Authority 8 What’s next Land Transport Railway Transport MariEme Transport Air Transport Master Plan Master Plan Master Plan Master Plan Not specific in Freight Transport Request of MoT on Green Freight White Paper (TCC Project) Recommendaons Consolidaon of Freight Database Intermodal Online Freight Urban Freight and indicators Freight Exchange • TCC supports the implementaon of pilot project in Greater Jakarta • Dra of Ministerial Decree on Green Freight Greater Jakarta Transport Authority 9 Greater Jakarta Transport Authority .
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