Developing Multimodal Freight Transport (MFT):

Indonesia Current Implementation

3rd Meeting of The COMCEC

Transport and Communication Working Group

Ministry of Transportation
Republic of Indonesia
1. BACKGROUND
INDONESIA THE LARGEST ARCHIPELAGO IN THE WORLD

Number of Islands : 17.504

Coast Line Length : + 95.181 km
Area of the Land : 1,9 million km2 Multimodal Transport and Logistic System plays important role
Area of the Sea : 5,8 million km2
Source: Centre for Logistics and Supply Chain Studies, Institut teknologi Bandung (ITB)
2. PROBLEMS
 MULTIMODAL TRANSPORT PROBLEMS

Inadequate infrastructure support both quantity and quality

The ineffectiveness of intermodal transportation and interconnection
between port infrastructure, warehousing and transportation
Low competitiveness of national multimodal transport service
provider both in national and global level
Poor national and international networking
The low competence of human resource and management
The lack of education institution and training institution
Infrastructure & network of information & communication technology
unreliable
National policies at multimodal transport is still sectoral
No institution which oversees the implementation of multimodal
transport development
3. REGULATION
 TRANSPORTATION REGULATIONS
RELATED TO MULTIMODAL TRANSPORT

Transportation Acts
Provision about Multimodal Transport is stated on:
- Act No. 23/2007 on Railways article 148;
- Act No. 17/2008 on Shipping article 55;
- Act No. 1/2009 on Civil Aviation article 191;
- Act No. 22/2009 on Traffic and Road Transport article 165.
Government Regulations
- Government Regulations No. 8/2011 on Multimodal Transport
Ministerial Regulation
- Ministerial Regulation No. 15/2010 on Blue print on Intermodal/
Multimodal Transport
- The Ministerial Regulation No. 8/2012 on Multimodal Transport
Implementation and Operation come into force on February 8, 2012
4. STRATEGIES
 Strategy on Multimodal TRANSPORT
the carriage of goods by at least two different modes of transport
on the basis of a multimodal transport contract

AIM: To create one stop service (3 Ss), ; i.e single operator,

single tariff and single document for cargo transport

1. Infrastructure
Network Integration
2. Integration of Services
Network
3. Improvement of Multimodal
Transportation Company/HRD
 STRATEGIES OF
INFRASTRUCTURE DEVELOPMENT

STRATEGIES
a) Port
a) Improve operational efficiency by implementing an integrated port management
(Port Logistics Management), optimize port capacity, and develop interconnection
between hinterland and international hub.

b) Sea Transport
1) Enforce cabotage for domestic sea transport totally on roadmap schedule.
2) Improve the efficiency and effectiveness of sea transport services which carried out
in an integrated manner and through the arrangement of route network.

c) River and Inland Water Transport

1) Develop ferry transportation industry to increase the smoothness and capacity of
the shipping channel in the South, Central & North Belt so as to form an efficient
multimodal transport network.
Source: Blueprint of Sislognas, Desember 2009
 TARGET AND STRATEGIES OF LOGISTICS
INFRASTRUCTURE DEVELOPMENT
STRATEGIES

d) Road Transport
1) Reduce the road load by developing multimodal transportation and logistics center
network as an effort to improve the smoothness of freight transport from production
center to outlet-inlet of export-import and inter-island.
2) Increase the technical availability and feasibility of road transport infrastructure that
ensures the adequacy, reliability and safety of the roads in order to support the
smoothness of national logistics system.

e) Rail Transport
Develop the rail network for long distance freight transport in Sumatra, Java and
Kalimantan.

f) Airport and Air Transport

Optimize the role of existing airports to be able to serve as cargo ports.

Source: Blueprint of Sislognas, Desember 2009

NEW CONTAINER TERMINAL NORTH KALIBARU
PORT OF TANJUNG PRIOK
New Port Proposal

Source: JICA, 2012

HR COMPETENCY STANDARDS HAVE BEEN ORGANIZED IN THE FIELD
OF MULTIMODA TRANSPORT AND LOGISTICS INDUSTRY

8 sector (loading/unloading, customs

& quarantine, consolidation, cargo
handling, warehousing,
transportation, insurance, hazardous
goods handling) and 63 unit of
competence in the field of multimodal
transport and logistic
 63 units of competence has been identified,
10 units of competence are currently at the stage of pre Convention

Sector of transportation management consists of 7 (seven)

units of competence i.e. :
Route planning;
Cargo handling of land transport;
10 units of Cargo handling of rivers, lakes, and Ro-Ro transport;
Cargo handling of the railway transport;
competence Cargo handling of sea transport;

devided into 2 Cargo handling of air transport;

Setting up the infrastructure of special items.
sector: Sector of warehousing management consists of 3 (three)
units of competence i.e. :
Warehousing administration
To receive goods
To release goods
 INSW & INAPORT
Indonesia National Single Window; HARMONIZED
SYSTEM (HS) INFORMATION :Tariff, Import Duty,
Prohibition and Restriction For Import and Export
Regulations.
INAPORT is an Electronic Portal that is open and neutral
in order to facilitate the exchange of data and
information of port services. It is just launched on 22
January 2014, implemented in Tanjung Priok Port,
followed by Belawan Port in February, Makassar Port in
March and Tanjung Perak Port in April.
 Providing Information System for SME
ALFI/ILFA have been introducing information system for its
members to improve awareness on the benefits of IT system

Applying basic
system for standard
operation, offering
template-ready
system, user friendly
interface and cloud-
based system, in
which economically
more affordable to
SMEs.
 Maritime Based Logistics
Short Sea Shipping

Legend: Konektivitas:
Provincial
Pusat Distribution
Distribusi Provinsi Center By sea / by rail By sea / by rail / by land By land / by rail / by sea

National
Pusat Distribution
Distribusi Nasional Center
Short Sea Shipping

Short Sea Shipping is the backbone of National Freight Transportation System

5. SUCCESS STORIES
 Success Stories
Government Regulation on Multimodal Transport effective into force february 2011,
after 11 years of proposal of transport regulation submitted in 2000
Reduce the Tariff on Security Charge after the implementation of Regulated Air
Cargo Regime
Customs accepted surety bond issued by insurance company to cover customs
brokers activity instead of blocking the money more or less USD 30 000.00 as a
customs bond
ILFAs STC (standard Trading Condition ) which first issued on 1986 and last revise
on 2011 was accepted and endorsed by the Indonesian Government in 2013 as
mentioned on Ministerial Regulation no. 8/2012
ILFAs multimodal transport documents : FBL (Fiata Bill of Lading issued by FIATA)
and DAB (Dokumen Angkutan Barang issued by ILFA/Gafeksi) officially accepted
by the Indonesian Government