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The World Bank Implementation Status & Results Report

DPL to reform the Indonesian maritime logistics sector (P158140)

DPL to reform the Indonesian maritime logistics sector (P158140)

EAST ASIA AND PACIFIC | Indonesia | Trade & Competitiveness Global Practice |
IBRD/IDA | Development Policy Lending | FY 2017 | Seq No: 1 | ARCHIVED on 27-Sep-2017 | ISR27213 |

Implementing Agencies: Coordinating Ministry of Economic Affairs, Ministry of Finance

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Key Dates

Key Project Dates

Bank Approval Date:02-Nov-2016 Effectiveness Date:09-Jan-2017

Planned Mid Term Review Date:-- Actual Mid-Term Review Date:--
Original Closing Date:30-Sep-2017 Revised Closing Date:30-Sep-2017

Program Development Objectives

Program Development Objective (from Program Document)

Public Disclosure Authorized

The PDO for the programmatic DPL series is to reduce the costs and improve the reliability of the logistics chain in Indonesia. It comprises of three
pillars with the following PDOs:
• Pillar A: Enhancing ports’ performance. PDO: Strengthening port’s governance and operations.
• Pillar B: Improving logistics services. PDO: Enabling a competitive business environment for logistics service providers.
• Pillar C: Strengthening trade processing. PDO: Making trade processing more efficient and transparent.

PHRPDODEL

Overall Ratings
Name Previous Rating Current Rating

Progress towards achievement of PDO  --  Satisfactory

Overall Implementation Progress (IP)  --  Satisfactory
Public Disclosure Authorized

Overall Risk Rating  --  Substantial

Implementation Status and Key Decisions

The team has identified some early impacts associated with the reforms supported by the DPL series. These include for example enhanced
participation of the private sector in ports' development with three new operators managing and in one case building and operating public ports (a
significant increase in Indonesia's port sector); enhanced foreign investments in logistics service operators, including freight forwarders, maritime
cargo handling, warehouse and cold storage facilities, introduction of independent shipping agencies (with seven new companies registered in the
year following the reform) and of bonded logistics centers (34 new centers in the year following the reform); reduction in trading costs equivalent to
price reduction of between 7% and 8% for over 16% of non oil and gas imports; and significant reductions in dwell time in the two main ports.

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The World Bank Implementation Status & Results Report

DPL to reform the Indonesian maritime logistics sector (P158140)

Risks

Systematic Operations Risk-rating Tool

Risk Category Rating at Approval Previous Rating Current Rating

Political and Governance  Substantial  --  Substantial

Macroeconomic  Moderate  --  Moderate
Sector Strategies and Policies  Substantial  --  Substantial
Technical Design of Project or Program  Low  --  Low
Institutional Capacity for Implementation and
Sustainability
 Substantial  --  Substantial
Fiduciary  Moderate  --  Moderate
Environment and Social  Substantial  --  Substantial
Stakeholders  Substantial  --  Substantial
Other  --  --  --
Overall  Substantial  --  Substantial

Results

Results Indicators
PHINDIRITBL

 A1: Number of Pelindos’ ports and terminals with internationally certified management systems (Quality Management Systems
– ISO 9000 series) (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 46.00 -- -- 60.00

Date 31-Dec-2014 -- -- 29-Jun-2018

PHINDIRITBL

 A2: Number of approved applications for BOT sea-ports development (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 -- 3.00 2.00

Date 31-Dec-2015 -- 01-Jun-2017 29-Jun-2018

Comments
These 3 BOT projects include Makassar New Port to Pelindo IV, Muaro Jambi to PT. Wahyu Samudera Indah (PT. WSI), and Marunda
Terminal Umum Curah to PT. Karya Citra Nusantara (PT. KCN).
The target number of BOT applications is a cumulative between 2015 and 2018.

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The World Bank Implementation Status & Results Report

DPL to reform the Indonesian maritime logistics sector (P158140)

PHINDIRITBL

 A3 - 1: Minimum and maximum ships’ waiting time in Tanjung Priok port (Text, Custom)

Baseline Actual (Previous) Actual (Current) End Target

min. 0.8 hours

min. 1 hour – max. 24
Value -- -- – max. 12
hours
hours

Date 31-Dec-2014 -- -- 29-Jun-2018

Comments
Source: RAS survey of domestic shipping lines 2014

PHINDIRITBL

 B1-1: New foreign licenses for freight forwarders (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 1.00 -- -- 5.00

Date 31-Dec-2015 -- -- 29-Jun-2018

Comments
While the number of new foreign licenses are not available yet for the year after the reform (enacted in May 2016), we can compare new
planned foreign investments in freight forwarding services in 2015 - US$ 129.7 mln with those in the year after the reform (July 2016-June
2017) - US$ 179.0 mln (Source: BKPM).

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The World Bank Implementation Status & Results Report

DPL to reform the Indonesian maritime logistics sector (P158140)

PHINDIRITBL

 B1- 2: New foreign licenses for warehousing and cold storage (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 7.00 -- -- 15.00

Date 31-Dec-2015 -- -- 29-Jun-2018

Comments
While the number of new foreign licenses are not available yet for the year after the reform (enacted in May 2016), we can compare new
planned foreign investments in warehousing and cold storage services in 2015 - US$ 19.6 mln with those in the year after the reform (July
2016-June 2017) - US$ 536.9 mln, (Source: BKPM), denoting a dramatic increase.

PHINDIRITBL

 B2-1: New shipping agents’ licenses (SUKK) (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 -- 7.00 5.00

Date 31-Dec-2015 -- 27-Mar-2017 29-Jun-2018

Comments
7 Companies received the license: PT. Srijaya Samudera Utama, PT. Meredian Agency Indonesia, PT.Bintang Bahari Raya, PT.Adhiguna
Pratama Mulya, PT.Samudera Agency Indonesia, PT.Gema Mutiara Marina, dan PT.Tirta Bintan Abadi.
Source: http://industri.bisnis.com/read/20170327/98/640605/isaa-minta-kualitas-sdm-agen-kapal-ditingkatkan

PHINDIRITBL

 B2-2: New foreign maritime cargo handling licenses (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 1.00 -- -- 3.00

Date 31-Dec-2015 -- -- 29-Jun-2018

Comments
While the number of new foreign licenses are not available yet for the year after the reform (enacted in May 2016), we can compare new
planned foreign investments in maritime cargo handling services in 2015 - US$ 3.2 mln with those in the year after the reform (July 2016-
June 2017) - US$ 2.9 mln.

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The World Bank Implementation Status & Results Report

DPL to reform the Indonesian maritime logistics sector (P158140)

PHINDIRITBL

 B3: Number of approved logistics bonded centers. (Number, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 0.00 -- 43.00 30.00

Date 31-Dec-2015 -- 03-Jul-2017 29-Jun-2018

Comments
There are 43 BLC licenses, covering 58 locations.
Source: Customs presentation on the status of Bonded Logistics Centers. July 2017

PHINDIRITBL

 C1: Pre-clearance time in Tanjung Priok Port (Days, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 3.60 -- 1.89 2.00

Date 30-Jun-2015 -- 29-Apr-2016 29-Jun-2018

PHINDIRITBL

 C2: Share of trade regulations included in the INTR (Percentage, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 90.00 -- -- 100.00

Date 31-Dec-2015 -- -- 29-Jun-2018

PHINDIRITBL

 C3-1: Dwell time in Tanjung Priok (Days, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 5.50 -- 3.34 4.00

Date 30-Jun-2015 -- 30-Jun-2016 29-Jun-2018

Comments
From a customs presentation on dwelling time performance: Performansi Dwelling Time Lima Pelabuhan Besar di Indonesia dan Langkah-
Langkah Penanganan. October 2016.

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DPL to reform the Indonesian maritime logistics sector (P158140)

PHINDIRITBL

 C3-2: Dwell time in Tanjung Perak (Days, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 6.30 -- 5.54 4.00

Date 30-Jun-2015 -- 30-Jun-2016 29-Jun-2018

Comments
From a customs presentation on dwelling time performance: Performansi Dwelling Time Lima Pelabuhan Besar di Indonesia dan Langkah-
Langkah Penanganan. October 2016.

PHINDIRITBL

 C4- Pre-clearance time for food and drugs in Tanjung Priok (Text, Custom)

Baseline Actual (Previous) Actual (Current) End Target

min. 2 – max. 4
Value min. 3 - max 6 days -- --
days

Date 31-Dec-2015 -- -- 29-Dec-2017

Comments
Baseline: average 2015
Target: average 2017
Source: interviews with importers

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The World Bank Implementation Status & Results Report

DPL to reform the Indonesian maritime logistics sector (P158140)

PHINDIRITBL

 C5: Share of shipments classified as red channel in Tanjung Priok (Percentage, Custom)

Baseline Actual (Previous) Actual (Current) End Target

Value 6.00 -- 4.78 4.00

Date 31-Dec-2015 -- 28-Feb-2017 29-Jun-2018

Comments
Average dwell time in January and February 2017, as per the presentation by the Directorate General of Customs and Excise in March
2017.

Overall Comments
Source: Article citing the head of the Customs Office in Tanjung Priok. Kepala Kantor Pelayanan Utama (KPU) Bea Cukai Tanjung Priok Fajar
Doni. (https://agungwarehouse.co.id/2016/06/09/bila-waktu-inap-terus-dipersingkat/?lang=id)

Data on Financial Performance

Disbursements (by loan)

Project Loan/Credit/TF Status Currency Original Revised Cancelled Disbursed Undisbursed Disbursed

P158140 IBRD-86570 Effective USD 400.00 400.00 0.00 400.00 0.00 100%

Key Dates (by loan)

Project Loan/Credit/TF Status Approval Date Signing Date Effectiveness Date Orig. Closing Date Rev. Closing Date

P158140 IBRD-86570 Effective 02-Nov-2016 17-Nov-2016 09-Jan-2017 30-Sep-2017 30-Sep-2017

Tranches
PHTRANCHESEC

Tranche 01
Description
Single Tranche operation
Amount (USD) Expected Release Date Actual Release Date Status
400000.00 22-Feb-2017 22-Feb-2017 Released

Tranche Condition Description Status If Not Met If Delayed

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DPL to reform the Indonesian maritime logistics sector (P158140)

Restructuring History

There has been no restructuring to date.

Related Operations

P163973-Second DPL to reform the Indonesian maritime logistics sector

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