INDONESIAN SEMINAR

Improvement of Logistics in Eastern MPA

- Future Development of Cilamaya New International Port-

Interim Summary of
The Study on Efficient and Integrated Transport/Logistics
Development in Eastern MPA

31 October 2013

Agenda
1. Necessity of Multiple Seaport Development
(1) Background of Cilamaya Seaport
(2) Concern about Current Traffic Situation
(3) Role of Cilamaya Seaport
2. Current Situations of Logistics in Eastern MPA
(1) Logistic Demand
(2) Traffic Situation
(3) Container Terminal
(4) Custom Clearance
3. Logistic Vision Toward 2020
(1) Preference of Cilamaya & Tanjung Priok Port
(2) International Cargo Flow
4. Next Step
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1. Necessity of Multiple Seaport Development

(1) Background of Cilamaya Seaport
1.

Priority Project of MP3EI

2.

Flagship Project of MPA

3.

Development of Cilamaya Seaport is included in the revised

Master Plan of Ministry of Transport

Joint Press Conference at Japan-Indonesia Summit

Meeting (18th Jan, 2013)

5.

2010.12 Memorandum of Cooperation was signed between

Ministers of Indonesia and Japan
2011.3 1st Steering Committee (S/C) (Ministerial Level Meeting)
Approval of Cilamaya as one of Fast Track Projects
2012.10 3rd S/C Approval of Cilamaya as one of Flagship projects

MOT Tanjung Priok Master Plan (Jun, 2012)

4.

Cilamaya seaport is one of the priority projects of Master Plan of Acceleration and Expansion
of Indonesia Economic Development (MP3EI)

Japanese Prime Minister, Shinzo ABE, indicated the commitment

of Government of Japan to support Cilamaya Project.

Joint Press Release at 5th Indonesia-Japan Joint Economic

Forum (4th Oct, 2013)

Coordinating Minister for Economic Affairs, H.E. M.Hatta Rajasa

and Minister of Economy, Trade and Industry, H.E. Mr. Toshimitsu
Motegi shared the recognition of promoting infrastructure
development including development of Cilamaya Port.

Source : Ministry of Economy,

Trade, and Industry
2

1. Necessity of Multiple Seaport Development

(2) Concern about Current Traffic Situation
1.

Now we have to face extra costs for our logistic that are over our expectation. We can
make Cilamaya as an alternative port and it can be much helpful to our industry in Java
especially to compete with our exports and imports of our local goods. (by Sofjan
Wanandi, Chairman of Employers Association of Indonesia (APINDO))

2.

"If see on the growth, the industries in Jakarta and surrounding area was already saturated
and jammed. Industrial zones in eastern Jakarta and West Java that was growing up to
Cirebon needs a good service. The existence of Port Cilamaya also becomes a solution of
load reduction in the road and the congestion in the capital city. In addition, the project will
boost national economic productivity, the efficiency of logistics costs and increase private
participation in the port sector (Chamber of Commerce of West Java) (Bisnis Indonesia,
9/9/2013)

3.

4 Km traffic congestion occurred in Sunter Toll road to Tanjung Priok due to long queue of
container to Tanjung Priok. (Detik News 13/7/2013)

4.

Importers are losing billions of rupiahs due to

congestion in recent weeks. They must bear the
cost of overtime usage containers. Delay of 5,000
containers (20 feet), for example, demurrage could
reach 150,000 US dollars per day. (SecretaryGeneral of the Association of Indonesian National
Importers) (Kompas, 19/7/2013)

1. Necessity of Multiple Seaport Development

(3) Role of Cilamaya Seaport

MP3EI Priority Project

MPA Flagship Project

(a) Correspond to Increasing Demand for Containers

The Container cargo demand is forecasted
to increase from 5.3 million TEUs in 2011 to
be 19.4 million TEUs in 2030, 3.6 times as
much as the volume in 2011.

Phase 1: 3.75 Mill TEU

Phase 2: 3.75 Mill TEU

Source: Cilamaya F/S Study Report

(b) Mitigate traffic congestion

(c) Contribute to enhance Connectivity

Cilamaya Port

Cilamaya
Port

Traffic Condition in 2010

already indicated
saturation exceeding its
capacity in terms of VCR

Source: MP3EI

Source: Cilamaya F/S Study Report

Multiple Seaport Development is vital for the country of Indonesia:

i)
ii)
iii)

Increase of attractiveness to industrial users: good end-to-end transport time and competitive services
Improvement of general road condition: reduce traffic flaw into Jakarta
Reduction of capacity shortage risk: diversified port construction completion risk

2. Current Situations of Logistics in Eastern MPA

(1) Logistics Demand
Industrial Area:
1,132 ha

Tj Priok Port

Industrial Area:
4,141 ha

DKI
25%
47%

20%

Source : JICA Study Team

Cargo consists container of export & import

Industrial Area:
10,789 ha

8%

West
Industrial Area:
940 ha

South

East

Logistic demand for Eastern MPA (Bekasi ~ Karawang ~

Purwakarta) keeps increasing.
- 3,292 tenant companies with the share of 66% in all
Greater Jakarta Metropolitan Area in 2011.
- From 2006 to 2011, the number of tenants increased by 927.
- The size (ha) will be expanded twice from 2012 to 2015.
- As for 11 major industrial estates, there are approximately
1,100 thousand employees in 2011.

Source : BKPM (Sep 2012)

Legend
: Major industrial area
: Sea port
: Main cargo flow (estimated)
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2. Current Situation of Logistics in Eastern MPA

(2) Traffic Situation (Logistics Route from Eastern MPA to
Tj. Priok Port)
Tj Priok Port

From Eastern MPA to

Tj. Priok Port

2. Current Situations of Logistics in Eastern MPA

(2) Traffic Situation (Jakarta-Cikampek Toll Road and Jakarta
Outer Ring Road)
Average Travel Speed on hourly on the day of the week

Source: JICA Study Team

2. Current Situations of Logistics in Eastern MPA

(2) Traffic Situation
Tj. Priok

Number indicates
average speed (km/h)

Cilincing

Heavier congestion
in front of Tg. Priok Port :
Distance
: 5.05 km
Travel Time
: 0: 42:03
Average Speed : 7.2 km/h

MM2100
Industrial Town

Cikarang Utama
Toll Gate

Cawang

JABABEKA

START

EJIP

Cikarang Barat

Source:JICA STUDY TEAM

Slow Speed from Cikarang Barat to

Cawang. Heavy Traffic in Friday
evening caused by many trailers
going to Tanjung Priok port for
weekend vessel.

Date: Friday, 24 May 2013

Time: 15:00 - 18:00
From MM2100 to JICT at
Tajung Priok Port
3 hours 2 minutes

Voice of Users

If traffic situation is normal, turnover rate of trucking is

2 round per day, whereas in current heavy congestion,
the rate is 0.7 - 0.8 round per day. (By forwarder)
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2. Current Situation of Logistics in Eastern MPA

(2) Traffic Situation (Situation of Arterial Road in front of
Tj. Priok Port)

Heavier congestion in front of

Tj. Priok Port
Distance
: 5.05 km
Travel Time : 0: 42: 03
Average Speed : 7.2 km/h
Number indicates the travel speed
SourceJICA Study Team

2. Current Situation of Logistics in Eastern MPA

(3) Container Terminal (Container Yard Density Import & Export)

Container Yard Density is concentrating year after year

%

2012

120

100

91

80

87

93 95

2013
96

89 90

72
69 69 71 71 72
69
58

60

37 39 44 40 42 42 44

40
20

102

91 96

75 73 76
60
52
51

37

44 45

98
77

71

48

100

53

90

87

81

74

55

107 110

64

70

90
74

100
85
75

36

SourceJICT

Export Yard

Import Yard

Jul

Jun

May

Apr

Mar

Feb

Jan

Dec

Nov

Oct

Sep

Aug

Jul

Jun

May

Apr

Mar

Feb

Jan

Average
11

2. Current Situations of Logistics in Eastern MPA

(3) Container Terminal (Average terminal in/out time at JICT
and KOJA Terminal)
Average terminal in/out time

Average duration on a day of the week

UnitHours

Sunday
>5 hr,
24%
4-5 hr,
10%
3-4 hr,
14%

< 1 hr,
14%

Saturday
1-2 hr,
9%
2-3 hr,
29%

Average duration 3.5 hours

Over 5 hours
24%

5.9

Friday
Thursday

3.5
3.9

Wednesday
Tuesday
Monday

0
Source: JICA Study Team

2.4

2.3
2.1

200

400
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2. Current Situation of Logistics in Eastern MPA

(3) Container Terminal ( Track tracking inside terminal)

Case study of Picking up import

cargo in JICT 1
Terminal entry time: 9:21:18
Terminal exit time : 12:53:18
Duration
: 3:32:00

Lift On:

Average Duration on Each Activity in

Container Terminal at Tj. Priok Port
Unit: Minutes

Waiting/Slow
Moving due to
congestion

51

2 hours

Lift on truck
(Import)

150

Lift off truck

(Export)

0-5

km/h

6 - 10

km/h

11 - 15 km/h
16 - 20 km/h
21 - 25 km/h

Queuing at Gate
Entrance:1 hour

87

Queuing for
obtaining of ETicket

0
Source: JICA Study Team

75
100

200
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2. Current Situations of Logistics in Eastern MPA

(4) Custom Clearance

Average Time for Custom Clearance

2004

2013

Red Lane

6.5 days

10.5 days

Green Lane

3.5 days

2.8 days

Source: JJC Questionnaire survey & JICA PROTRAF Study

Comparison of Average Times by Nation

Malaysia

Thailand

Indonesia

Red Lane

2 days

2.5 days

10.5 days

Green Lane

1 day

2 days

2.8 days

Source: JJC Questionnaire survey & JICA PROTRAF Study

** Data of Malaysia & Thailand are 2007

Voice of Users

Due to Long Process of Custom

Clearance, manufacturers need to
carry excess inventory, sometimes
valuing up to
1 billion rupiah. (By forwarder)

Red Lane : Having document & cargo

inspection.
Green Lane : Basically only document
inspection. X-Ray inspection at Random.
(cargo inspection if any trouble.)

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3. Logistic Vision Toward 2020

(1) Preference of Cilamaya & Tanjung Priok Port

Tj Priok Port

Cilamaya Port

Blue: Tanjung Priok

Red: Cilamaya
Criteria
- On current road situation
- On current transport cost
condition

Cargo owners in Eastern MPA mostly prefer Cilamaya, whereas cargo owners in DKI Jakarta and
Western & Southern MPA prefer Tanjung Priok.
This analysis is still processing now, so the port choice ratio is subject to change until the final report

15

3. Logistic Vision Toward 2020

(2) International Cargo Flow
Present Situation of Logistics

Future Situation of Logistics

After starting operation of Cilamaya port, cargo

owners will have much more options to select
shipping services and cargo flow is diversified.
Source: JICA Study Team

Legend
: Major industrial area
: Sea port
: Main cargo flow (estimated)

Source: JICA Study Team

Voice of Users
The merit of using Cilamaya is easily predicting lead time to deliver
containers. We expect to reduce more cost for stocking which is
equivalent to around several million dollars. (By trading company

16

4. Next Step
4

10

Phase 1 Analysis of current transport and logistics

12

Phase 2 Recommendation of
Measure to establish Integrated and
effective network

Related policies, laws, and regulation of

transport and logistics and development
Regulation and restrictions related to protection
of paddy field and water resources

11

Joint
seminar
in Japan

Outlines of Key
measures for short
term & long term

Current conditions of land transport infrastructure

Forecast on transportation and logistics sector
Identification of bottlenecks in Eastern MPA
Bottleneck of cargo, road, and railway
Issues for strengthening connectivity
Lesson learned through similiar
development projects to solve overconcentration

Extra issues related to

land use

Necessary facilities
to improve new
port Development
plan

Economic benefits
to Eastern MPA

Workshop
in Jakarta

Feedback
Seminar
in Jakarta

Study Team will make recommendation for balanced development of Tanjung Priok and
Cilamaya Port.
17