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Compendium of Best Practices and Benefits of National Logistics Associations in Selected APEC Economies Second Workshop, Shangri-La Hotel Bangkok, 27 February.

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Presentation on theme: "Compendium of Best Practices and Benefits of National Logistics Associations in Selected APEC Economies Second Workshop, Shangri-La Hotel Bangkok, 27 February."— Presentation transcript:

1 Compendium of Best Practices and Benefits of National Logistics Associations in Selected APEC Economies Second Workshop, Shangri-La Hotel Bangkok, 27 February – Friday 2 March 2012 Author: Siti Ariyanti Adisoediro & Theo Kumaat Organization : Indonesian Logistics and Forwarders Association (ILFA) Economy: Indonesia

2 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 2 Compendium of Best Practices and Benefits of National Logistics Associations Purpose of Presentation Objective: To provide a project update since Workshop One. Bangkok Workshop,27 February – Friday 2 March 2012 No. 2

3 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 3 Number of Islands: Coast Line: km Land: 1,9 Million km2 Water: 5,8 Million km2 Background

4 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 4 International and Domestic Trade Source : Ministry of Transport

5 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 5 Associations There are two different group of National Logistics Association in Indonesia : 1. Group of companies 2. Group of professional Group of associations related to Logistics activities are : ILFA (Indonesian Logistics and Freight Forwarder Association) INSA (Indonesian National Shipowner’ Association) ORGANDA (Trucking Association) APBMI (Stevedoring Association) ASDEKI (CFS Operator Association) ASPERINDO (Courier service Association) INACA (Indonesia National Air Carriers Association) GAPASDAP (Inland Waterways & RoRo Operator Association) And Importer and Exporter association Group of professional are : ALI (Asosiasi Logistics Indonesia) MLI (Masyarakat Logistik Indonesia)

6 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 6 ALFI – Asosiasi Logistik & Forwarder Indonesia ILFA - Indonesian Logistics & Forwarders Association (Previously INFA – Indonesian Forwarders Association) Changed as of July 16, 2010 GAVEKSI

7 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 7 ILFA - Member Composition As of 2010

8 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 8 ILFA - Member Composition - Continued As of 2010

9 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 9 ILFA – Organization Span Training Area Regular Training Area

10 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 10 Compendium of Best Practices and Benefits of National Logistics Associations Outcomes from Workshop One Issues: A Supply Chain Blueprint, critical to Indonesia’s future supply chain effectiveness has been created. Indonesian government has not adopted it Blueprint It is critical that the government takes ownership of the Blueprint concept, as Indonesia needs a supply chain vision and consistency There seems to be no political will to adopt the Blueprint There are large logistical challenges Passenger transport gets priority over freight transport Bangkok Workshop,27 February – Friday 2 March 2012 No. 10

11 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 11 Compendium of Best Practices and Benefits of National Logistics Associations The project plan: Approach critical decision maker in government and request a meeting to understand their ideas, priorities, etc. Rewrite and rename the Blueprint based on the ideas of the new leadership team Contact the Chamber of Commerce to ask for assistance to encourage the government to adopt the Blueprint Outcomes from Workshop One Bangkok Workshop,27 February – Friday 2 March 2012 No. 11

12 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 12 Project Update – Outcomes 1.BLUE PRINT INDONESIAN NATIONAL LOGISTICS SYSTEM The Blue Print of Indonesian National Logistics System has been finalized on December 26, 2011 and has been submitted to the president The blue print of Indonesian national Logistics system also inline with Master Plan for the Acceleration and Expansion of Indonesian Economic Growth

13 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 13 Project Update – Outcomes 2. CAPACITY BUILDING IN HUMAN RESOURCE Set up 2 teams on 1. Developing Logistics curriculum for formal degree. 2. Developing HR skill and set up certification for logistics competency National Logistics Blue print

14 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 14 Project Update – Outcomes 3. Regulation on Multimodal Transport Operator 1.The Government Regulation on Multimodal Transport Operator ( PP No. 8 / 2011) had been released from February This was the application under AFAMT (ASEAN Framework Agreement on Multimodal Transport) 2.The Ministerial Regulation (Permenhub No. 8 /2012). Just released and come intoforce February 8, 2012

15 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 15 Strategy To strengthen and enhance capacity building performance To increase awareness on Logistics update and new regulations, through Roadshow nationwide, newsletter, e-media To increase awareness of using ICT As an extraordinary member of Indonesia Chamber of Commerce and Industry (KADIN Indonesia), we have been actively involved in the logistics discussion. This is one of media to give feedback. Actively involved in international environment, such as in FIATA, UNESCAP meeting, AFFA, FAPAA To suggest the Indonesian Goverment to improve and develop infrastructure and balance trade between east Indonesia and West Indonesia

16 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 16 Lessons Learned Understanding how The National Logistics Association is really needed to support the members and the government to make the best performance in logistics specially in terms of logistics cost which will effect to the buying power and domestic income and competitiveness in the global market

17 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 17 Challenges There are many regulations that related to logistics activities, sometimes overlaping Cost of developing HR is self funded and is still considered as a cost instead of investment To align with other logistics or transport-related associations Conflict of interest among association concerning tariffs To minimize national logistics cost Improvement the quality and availability of infrastructure Improvement balance trade between the Island in west Indonesia and east Indonesia which effected to high cost Investment of ICT is still too expensive and unaffordable specially for small and medium enterprises

18 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 18 Benefits To have mutual recognition in the industry Protecting and helping members form any dispute arise locally and internationally To reduce operation cost in obtaining Customs Brokers permit Helping members to develop and improve their staffs /managers To negotiate with The Goverment regarding applicable of any taxes related to their business To cover members’ liability of their performance by issuing STC To have bargaining power to negotiate with the goverment and other association about tariff and insurance Advocacy

19 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 19 Success Stories Regulation on Multimodal Transport Operator effective into force february 2012, after 11 years of proposal of transport regulation submitted in 2000 Reduce of 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 as a customs bond ILFA’s STC (standard Trading Condition ) which first issued on 1986 and last revise on 2011 was accepted and on the process of endorsement by the Indonesian Government 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 for local LC) officially accepted by the indonesian Government

20 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 20 Next Steps To give feedback to the government regarding regulation on logistics services, to provide clear cut on company permit or license To set up ASEAN standard on core curriculum of logistics together with AFFA members To set up a competence certification body for nationwide (LSP Logistik) To continuously update the vocational training material Roadshow to 22 province ILFA regional offices (DPW) to meet members to have a workshops, seminars and trainings

21 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 21 Compendium of Best Practices and Benefits of National Logistics Associations Conclusion The NLA (Nationonal Logitics Association ) of Stakeholders is really needed and helpful for the members in terms of Human Resource capacity building, negotiating with the Government and other association, providing advocacy to members and also can be as a partner of the government, as liason officer between the goverment and stakeholders and one of the sources of information Bangkok Workshop,27 February – Friday 2 March 2012 No. 21

22 Compendium of Best Practices and Benefits of National Logistics Associations Bangkok Workshop,27 February – Friday 2 March 2012 No. 22 ALFI – Asosiasi Logistik & Forwarder Indonesia ILFA - Indonesian Logistics & Forwarders Association


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