ILCS - Member of Telkom Indonesia

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Name of Organization / Company: ILCS - Member of Telkom Indonesia
Category: P01 - P15 - Award for Innovation in Product Design and Development > P15. Award for Innovation in Transportation & Logistics

Entry Title: Smart Port ID: Digitizing Port & Business Community


Indonesia is a maritime country that has thousands of Islands. In turn, the needed of port and logistics is essential in Indonesia as Maritime Country. However, in contrary port and logistics operational are still far away to be categorized as efficient and effective. Indonesia scored 2.93 on Logistics Performance Index (LPI) (World bank – 2016), 63th in global and 4th in South East Asia.

There are still many port and logistics business processes that are not managed effectively and efficiently due to the lack of ICT support, integration, visibility and solution that cover all of Port and Logistics Stakeholders.

There were six identified port and logistics stakeholders had been effected by inefficient processes:
- Port/ Terminal : The inefficiency of Terminal productivity and activities.
- Trucking : Unutilized truck operation, impacted to the high cost logistics.
- Freight Forwarder : Low visibility to track and trace goods or containers; lack of transparency process.
- Government : Logistics performance index declining since 2014
- Vessel : Uncertainty of vessel scheduling; Lack of plan in vessel berthing
- Cargo Owner : Long dwelling time; need real time track and trace of goods and containers

To encounter the obstacles, Integrasi Logistik Cipta Solusi (ILCS) made a breakthrough to set a possible solution for Port and Logistics Solution called Smart Port ID. Framework design of Smart Port ID divided into several sequences which are: solution based on modularity, solution implementation based on port needed and readiness which is partial implementation, transaction based business model, and sharing economy platform.

The objective of Smart Port ID is digitalizing port and its business community with design to give an ease and transparent process for all Port and Logistics stakeholders. Smart Port ID has changed manual process to be more digital and integrated process in port and logistics ecosystem (terminal/port, trucking, vessel, freight forwarder, and cargo owner). Smart Port ID contains integrated solutions as below:

- Terminal Solution: Terminal Operation System, Car Terminal Operation System, Multipurpose Terminal Operation System, Port Surveillance, and E-Payment & Integrated Billing System
- Trucking Solution: Assignment & Truck Ordering, Truck Route Optimization
- Freight Forwarder Solution: Delivery Order Online, Warehouse Management System, Container Freight Demurrage Collection, Trace and Tracking Goods.
- Government Solution: Integration of Indonesia National Single Window and INAPORTNET (Indonesia Port Network).
- Vessel Solution: Vessel Booking and Management System

Since the implementation, there were benefits in both financial and non-financial aspect such as:

1. In 2017 ILCS gained revenue IDR 16 Billion (USD 1.1 M), respectively with partial implementation.

2. In 2018, all modular solution will be integrated which will escalated revenue into IDR 28 Billion (USD 2 million).

3. For cargo/container terminals and logistics communities, the benefits of using Smart Port ID (before => after comparison) are:
a. Truck utilization from 2% to => 20%
b. Port Terminal Operation Efficiency=> Increase into 15%
c. Transparency => 80%
d. On site process=> Virtual office 24/7
e. Manual notification => Online notification
f. Unmanaged truck and Vessel arrival => Very well managed truck and vessel arrival

Potential Opportunities:

SMART PORT ID has a modular design that able to integrate and enhance to accommodate businesses in the future.

Thus with the number of Port (Pelindo Owned, Government Owned and Public Owned) in Indonesia, the potential revenue that can enhance from SMART PORT ID:
• IDR 250 Billion per year (USD 18 million) with assumption only grab IPC Port
• IDR 750 Billion per year (USD 54 million) with assumption grab all Pelindo Owned Port and Public Owned Port