Indonesia is planning to roll out a single electronic platform across all of its commercial ports over the next few years that will automate all business process between port stakeholders, including terminal and ocean carrier business processes, cargo tracking, customs clearance, security inspection and other transactions.
The Indonesia Port Corp. II has chosen French enterprise-solutions provider SOGET and Microsoft to implement the world’s largest Port Community System, which will initially be deployed in Jakarta, before expansion to other Indonesian ports.
“We call it a single window for the port,” said Pascal Ollivier, director of corporate development for Le Havre-based SOGET. “It’s about trade facilitation.”
The PCS, which will be installed in Jakarta in October 2013, will reduce the time for processing cargo loaded or unloaded at Indonesian ports from a month on average to “maybe” three days.
“Their supply-chain performance from an import and export perspective was not good,” Ollivier said in an interview with the JOC. Indonesia ranked last in logistics performance among ASEAN countries according to the World Bank, even though it has the largest GDP, he said.
"The implementation in Indonesia of the largest port community system in the world will allow our ports to increase dramatically their level of activity while complying with international trade facilitation and security standards,” said RJ Lino, CEO of Indonesia Port Corp., a state-owned enterprise that operates 12 ports in Indonesia and together with Hutchison Port Holdings operates PT Jakarta International Container Terminal and Koja Container Terminal, both in Jakarta. “(It) will speed up the integration of trade at both domestic and international levels and accelerate Indonesia economic development by improving its logistics performance and competitiveness.”
The PCS will enable large port stakeholders like shipping lines, terminal operators and logistics providers to interface with the platform through Electronic Data Interchange with their enterprise systems. Smaller stakeholders, like customs brokers, can interact with the platform through the system’s Internet portal. “When a carrier like Maersk provides its manifest to the PCS, it will automatically notify the stakeholders who have the right to receive the information,” Ollivier said.
The Indonesia PCS is based on technology provided by Microsoft, which working with SOGET on the Indonesian project, he said.
The project is part of the Ministry of Transportation’s National Master Plan to channel $68.3 billion in public and private investment in the sprawling island nation’s 111 commercial ports through 2030. The plan projects $14.9 billion in public investment and $32.2 billion in private investment. The Port Reform of 2008 eliminated the government’s monopoly on port operations and opened them up to foreign investment.
“The big challenge for Indonesia will be how to become No. 2 or No. 1 in the region for logistics services so it can attract more foreign investment,” Ollivier said.
The plan projects an annual growth rate of 12.3 percent in container throughput at its ports. The country’s overall container throughput is projected to increase from an estimated 12 million 20-foot-equivalent units at present to more than 40 million TEUs by 2030.
Jakarta, Indonesia’s largest port, accounts for about half of the country’s total container throughput, or 6 million TEUs. “They are looking to double that number by 2020,” Ollivier said.
About 25 percent of Indonesia’s container throughput consists of international cargo, with the balance being domestic shipments among the archipelago’s 17,508 islands and 111 commercial and 614 non-commercial ports.
After the SOGET-Microsoft port platform is up and running in Jakarta, the Port Corp. intends to install it at the next 25 largest commercial ports over the next three to five years and then to the balance of the commercial ports.
Contact Peter T. Leach at email@example.com.