I NTERNAT IONAL BUS INESS 3

Dean Rachman Putra 0142011000

Olivia Alfriana 014201100032

Sofi Oktavia 014201100190

Wendy Kadarsyah 0142011000

08 Fall

Company Visit Report

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EXECUTIVE SUMMARY

This company visit report is about Cikarang Dry Port. It includes literature review of

Cikarang Dry Port’s operation, the relationship between the port and the shipping company,

the prospect of logistic business, and also about the export import procedures in Cikarang

Dry Port. It is important port because Cikarang Dry Port provides integrated port and

logistics services with dozens of logistic ad supply chain player. Methods of this report are

using the direct observation and description methods. We have interviewed Mr. Hery M.A.C

and Mr. Rio Rivai about Cikarang Dry Port. Based on the literature review, observation, and

description, the result of this report has given the answers for every question.

TABLE OF CONTENTS

Executive Summary .................................................................................................................... i

Table of Content ......................................................................................................................... i

Introduction ................................................................................................................................ 3

Literature Review....................................................................................................................... 3

Methods...................................................................................................................................... 4

Result and Discussion ................................................................................................................ 4

Conclusion ................................................................................................................................. 8

References .................................................................................................................................. 8

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INTRODUCTION

Indonesia is the biggest archipelagic country in the world and it has a strategic place

in international trading. This condition can be used to begin the logistics business in

Indonesia. By considering the strength of Indonesia, it will be a good chance for Indonesia to

take a part such in International trading and take the benefits of its activities. For instance,

Indonesia has Cikarang Dry Port for managing the operation of export and import activities.

Cikarang Dry Port provides integrated port and logistics services with dozens of logistic ad

supply chain player. The government also supported Cikarang Dry Port by provided port,

custom, quarantine, and BPOM.

LITERATURE REVIEW

Cikarang Dry Port provides Integrated Port and Logistics Facilities. It is located in the

heart of the largest manufacturing zone in Indonesia along Bekasi until Cikampek corridor on

the east side of Greater Jakarta. It is the first and the only one Integrated Customs Services

Area in Indonesia and has been allocated international port code IDJBK

(www.cikarangdryport.com, 2012). It is like any other concept of Dry Port, it uses intermodal

transportation connected to the seaport, and customers can collect/leave their goods as if they

do it to seaport (Frost, 2008). In this context, CDP helps to share the burden of the main port,

Tanjung Priok, which is like any other seaports lack of space and lack of appropriate inland

access (Roso, 2005).

For the present time, CDP still uses trucks to load the goods from Tanjung Priok but

CDP said it is more than welcome the suggestion to build its own private rail track directly to

Tanjung Priok connect to Tanjung Priok if the government allows, thus transportation by

truck which is rampant to traffic jam can be minimized. Nevertheless, with the adoption of

UU nomor 23 Tahun 2007, it is possible for a private company to build their own private-

operated rail track because the act replaces UU 13 for the year 1992 that underlines state

monopoly. In May 2013, General Directorate of Railway, Hanggoro Budi Wirjawan, stated

that he hoped for Multi operatory concept for the development of Indonesia’s railway

implying that eventhough UU number 23 for the year 2007 allows a full-operated private rail

track but in practice government and Private Corporation should work hand in hand. It has

port and terminal that consist of Container Yard (CY), Container Freight Station (CFS) for

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Import, and behandle to be an extension of Tanjung Priok. Being the extension gate gate of

Tanjung Priok International Port, document formalities for port clearance and customs

clearance will be completed in the Cikarang Dry Port (Lippo Cikarang, 2008).

Director General of Customs of the Finance Ministry, Agung Kuswandono has

explained that dwelling time affect by customs clearance, bank transaction process, port

administration, and infrastructure. And Cikarang Dry Port is functioned whether Tanjung

Priok Port gets overload as the buffer, it can be the extension and helps Tanjung Priok Port

(Sridarmawan, 2013). Manuel Kuhn (2010) said that, a dry port is an inland intermodal

terminal directly connected by road or rail to a seaport and operating as a center for the

transshipment of sea cargo to inland destinations. He also added, to their role in cargo

transshipment, dry ports may also include facilities for storage and consolidation of goods,

maintenance for road or rail cargo carriers and customs clearance services.

Weeld and Rozemeijer (Ho, 1997) discerned three revolutions in business that have

substantial impacts on the purchasing and supply strategies of the manufacturing sectors.

These three revolutions are the globalization of trade, the coming of the information era, and

more demanding consumers and continuously changing consumer preferences.

METHODS

This report was using the direct observation and descriptive methods. Direct observation was

conducted on June in Cikarang Dry Port, by doing the interview with Mr. Hery M.A.C and

Mr. Rio Rivai as his partner. With the direct observation and visiting the Cikarang Dry Port,

the writters can gathered the operation activities in logistics. For additional information, the

writters used the descriptive method by using internet in completing the datas.

RESULTS AND DISCUSSION

1) Operation of Cikarang Dry Port.

Cikarang Dry Port uses intermodal transportation connected to the seaport and

customers can collect/leave their goods as if they do it to seaport. It helps to share the burden

of the mainport, Tanjung Priok, which is like any other seaports lack of space and lack of

appropriate inland access. It has port and terminal that consist of Container Yard (CY),

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Container Freight Station (CFS) for Import, and behandle. Container Yard Port provides

handling and storage service for laden container under customs supervision. With port code

IDJBK, its terminal is appointed as an extension of Tanjung Priok Port and Integrated

Customs Service Zone. Shipping lines are now connected also to the terminal with other port

of call around the world by using Multimodal Transport of Lading. Container Freight Station

for inbound cargo is located inside terminal. It designed for efficient handling process of LCL

(Less than Container Load) cargo. And the last is behandle, the facility for Red Line cargo

inspection under customs supervision. Being the extension gate of Tanjung Priok

International Port, document formalities for port clearance and customs clearance will be

completed in the Cikarang Dry Port.

2) The reason why the customs located in the vicinity.

Once the goods touch the ground of Tanjung Priok, they will be automatically

transported to CDP and will have customs checked within the area of Tanjung Priok. It is to

avoid the long lines of goods to be checked in Tanjung Priok which will affect the goal of

CDP which is to make the operation of Tanjung Priok more effective by sharing its burden.

The custom area of Cikarang Dry Port is owned by government and technically goods that

are still in that area are not approved yet to be in jurisdiction of Indonesia’s market.

Supposedly, only several people who meet the terms and condition can enter the area.

3) Difference between dry port and normal port.

Dry port is located inland from seaport and inked directly to one or more seaports.

Whether a country has seaport or land locked, dry port will do the function of seaport because

technically it is the branch of the connected sea port. It can be accessed by its customers

directly or through an agent. The differences between those two is that dry port is located

inland while normal port is located on a coast or shore. Dry port is one of the parts of

seaports and carrying some of its function. The containers are dealt exactly the same way

with the way they are dealt in the seaports.

4) The relationship between the port and the shipping company

The relationship is exactly the same with shipping company to Tanjung Priok.

Company who will export or import its goods through CDP will have its customs clearance,

CY, and any parts of integrated service on site before it is physically transported to Tanjung

Priok. In Tanjung Priok the goods will not pass the integrated service because CDP has

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already did the function. During the company visit, it is stated that there are companies all

over Jababeka preferred to store their containers/goods here while waiting for the shipping to

arrive in Tanjung Priok. Storing in Tanjung Priok is apparently is more expensive.

5) How is the Prospect of Logistic Business

The increasing of global competition, the improvement and development of logistic

business should be advanced between logistic companies and government. There are three

revolutions in business that have substantial impacts on the purchasing and supply strategies

of the manufacturing sectors. There are trade globalizations, the information era, higher

demand consumers that will change the consumer preferences. In the future, the main

characteristics of logistic are:

- Government role: To keep competitiveness of logistic industries, the government

needs to lead one to another path of logistic industries. For example is the idea of

freight village of city logistics that will provides to promote logistic efficiency and

reduce operation cost. However, it includes large of investments and some problems

that relate laws and national policies. Without government support, it is so difficult to

achieve the plan.

- Growth of International Goods Transport: There are some factors that affect the

growth of international freight transport. The first one is E-commerce pushes ahead

the international business activities. The second is the change of production strategy

needs international cooperation, such as importing the semi-finished products from

countries with cheaper human resources to those with higher technology to assemble

the final goods. The last is pressure from global, such as World Trade Organization

(WTO), it pushes local industries to promote international standard and compete

globally.

- Revolution of Logistics Operation: Technologies bring efficiency to logistic systems.

RFID (Radio Frequency ID) is one of those technologies. It could save manual

operation time dramatically, sense the amount of goods input in the tags

automatically, and immediately when the costumers push the trolley through exit door

(Carroll, 2004).

- Improvement of Logistics Facilities: High technology is the main advancement of

logistic system. It is the example, it could bring more possibilities and advantages to

logistics. It can improve related possibilities. In the future, factory automation is the

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main target for the whole supply-chain procedures. It could help to improve efficiency

and also can reduce the cost.

- Specialized Logistic Delivery: Specialized delivery service is one of the notable trends

of logistic industries. For instance, delivering fresh food from the place of origin

needs low-temperature containers. Compute chips, gases, and petroleum need

particular conveyances to carry. These demands are increasing since the products

became more and more delicate.

- Freight Transport: The alliance between middle-small size delivery companies is an

important trend in the future. The strategy could help to expend service areas and

increase service quality, and meanwhile raise the loads of single trips to reduce

delivery costs.

6) Export import procedures in Cikarang Dry Port

Common procedures in Cikarang Dry Port:

6.1 Exporter and importer now can do export and import in Cikarang Dry Port, formerly used

to do in Tanjung Priok. Container can be done in Cikarang Dry Port’s area after stuffing in

warehouse, so that’s why the container needs to send to Cikarang Dry Port.

6.2 Exporter and importer use Multimodal Transport Bill of Lading by Carrier Company who

has opened service in Cikarang Dry Port with IDJBK port code. The list of carriers are

available on www.cikarangdryport.com website.

6.3 The activities that related with KMT (Kartu Masuk Terminal), weighing, loading &

unloading, and transactions can be done in Cikarang Dry Port.

6.4 Determination of Closing Time done by Carrier Company.

6.5 After the container across the Cikarang Dry Port’s gate, it means the container accepted

by the service that will be process to Tanjung Priok and then to the destination country.

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CONCLUSION

Cikarang Dry Port is the first and only Integrated Customs Services Area in Indonesia. it

offers one stop services for cargo handling and a logistics solution for export import as well

domestic distribution. This paper covers report broadly from Cikarang Dry Port operation

system & procedures, the relation with shipping companies, and the prospect of logistic

business. The main point of this report is all about Cikarang Dry Port as the extension for

Tanjung Priok Port to helps reduce dwelling time. It is an effort from Indonesia’s government

to increase efficiency in Tanjung Priok as an International Port and also to compete with its

neighbor’s countries.

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Sridarmawan, D.A.P. (2013, 28 January). Penjelasan Direktur Jendral Bea dan Cukai Bapak

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