ASOSIASI PERUSAHAAN JALUR PRIORITAS (PRIORITY LANE COMPANY ASSOCIATION)

1. ASOSIASI PERUSAHAAN JALUR PRIORITAS(PRIORITY LANE COMPANY ASSOCIATION) Presented by Dr.- Ing Gunadi Sindhuwinata Chairman of APJP December 23rd, 2008 Indonesia National Single Window (INSW)

2. BACKGROUND 1. To improve national economy. 2. To harmonize & optimize government policy in economy especially import & export goods such as : a. PHYSICAL STRUCTURE - Port - Highway - Computer system (Hardware). b. INFRASTRUCTURE - Regulation simplification. - Information System Integration. - Regulation Socialization. 3. Coordination Inter Government Agencies, such as : - Customs - BPOM - Trade - Agriculture Quarantine - Fishery Quarantine - etc

3. BACKGROUND 1. To improve national economy. 2. To harmonize & optimize government policy in economy especially import & export goods such as : a. PHYSICAL STRUCTURE - Port - Highway - Computer system (Hardware). b. INFRASTRUCTURE - Regulation simplification. - Information System Integration. - Regulation Socialization. 3. Coordination Inter Government Agencies, such as : - Customs - BPOM - Trade - Agriculture Quarantine - Fishery Quarantine - etc

4. Country 2003 2004 2005 2006 2007 Singapore 4 2 3 3 2 Hong Kong 10 6 2 2 3 Australia 7 4 9 6 12 China 27 22 29 18 15 Taiwan 17 12 11 17 18 Malaysia 21 16 26 22 23 India 42 30 33 27 27 Korea 32 31 27 32 29 Thailand 28 26 25 29 33 Philippines 41 43 40 42 45 Indonesia 49 49 50 52 54 Venezuela 51 51 51 53 55 Competitiveness Ranking in 55 Countries Source: World Competitiveness Yearbook, 2007. 4

5. Investment prospects 2007 to 2011 5 Source: Economist Intelligence Unit (2007)

6. The Risk of Doing Business Source: The Economist Intelligence Unit, 2007 6

7. Total score Rank Country 2007-11 2002-06 2007-11 2002-06 Singapore 8.72 8.71 3 1 Hong Kong 8.68 8.57 6 8 Taiwan 8.11 7.66 19 21 Malaysia 7.43 7.29 31 23 Thailand 6.81 6.71 42 37 China 6.38 5.61 53 58 India 6.37 5.27 54 62 Philippines 6.34 5.90 56 48 Indonesia 6.21 5.39 61 60 Vietnam 5.95 4.83 65 70 Angola 3.92 3.19 82 82 Business Environment and Rank Source: The Economist Intelligence Unit, 2007 7

8. Comparison of Number of Procedures, Lead Time and Costs to Start a Business 8 Source: The Economist Intelligence Unit, 2007

9. SINGLE WINDOW PRACTICES IN THE WORLD • A Single Authority : Customs co-ordinates and/or enforces all border-related controls. For example, in Sweden and the Netherlands, Customs Officers perform many tasks based on assignments from other governmental authorities. Source: United Nations Economic Commission for Europe, 2003. 9

10. SINGLE WINDOW PRACTICES IN THE WORLD • A Single System, integrating the electronic collection, use, and dissemination of international trade data related to trade that crosses the border. For example, the United States established a pilot program that allows traders to submit standard data only once and the system distributes the data to the agencies that have an interest in the transaction. Source: United Nations Economic Commission for Europe, 2003. 10

11. SINGLE WINDOW PRACTICES IN THE WORLD • An Automated System through which a trader can submit electronic trade declarations to the various (controlling) authorities for processing and approval in a single application. In this approach the approved permits are transmitted electronically to the sender`s computer. Such a system is in use in Singapore and Mauritius. Moreover, in the Singaporean system, fees, taxes and duties are computed automatically and deducted from the traders bank accounts. Source: United Nations Economic Commission for Europe, 2003. 11

12. PROGRESS OF ASEAN SINGLE WINDOW • Still in regional technical level development in each ASEAN country. • Each country can see Certificate of Original (COO) data and information from other members but cannot use them for transaction yet. • Further development will be continued in 2009. 12

13. PRIORITY LANE IMPORTER’S VIEW ON INSW IMPLEMENTATION INSW is aimed to fulfill the following objectives: 1. Single Submission of Data and Information Current situation: importers are still obliged to submit hard copy of data and information to every related GA besides to INSW portal. 13

14. PRIORITY LANE IMPORTER’S VIEW ON INSW IMPLEMENTATION 2. Single and Synchronous Processing of Data and Information. Current situation: Data and Information from importers are still processed in every related GA in-house system Need to be consulidated as the spirit of INSW is required. 14

15. PRIORITY LANE IMPORTER’S VIEW ON INSW IMPLEMENTATION • Single Decision Making for Customs Release and Clearance of Cargo. • Current situation : the decision making for customs release and clearance of cargo is still dependant on every related GA in-house system. Improvement of existing system necessary.

16. PRIORITY LANE IMPORTER’S VIEW ON INSW IMPLEMENTATION INSW Implementation Progress is on track towards the ideal conditions mentioned above: • In the Phase-2, there are 5 Government Agencies committed to integrate their license authority into INSW portal. • More transparancy in the standard requirement, less dependency on the officer in charge. • Reducing man-to-man dealing through web based system. • There is an SLA (Service Level Agreement) from every Goverment Agencies involved. 16

17. INSW IS A BIG CHANGE • Integrating different authorities into single “authority”Phase-1: 5 GAs, following phase : 36 GAs. • Simplifying license process. • A critical point to accelerate flow of goods. • A key driver to increase economic competitiveness and investment attractiveness. • A critical point for ASEAN economic integration through ASEAN Single Window.

18. KEY SUCCESS FACTORS OF INSW • The implementation of Trial and Phase-1, with the involvement of APJP, was proceeded succesfully. • APJP is commited themselves to give utmost to cooperate the implementation of all next INSW Agenda. • Simplification and avoiding of redundency instead of complexity. • Infrastructure in the GA involved must be improved immediately. • A complete INSW system should included the “KITE”.

19. PRIORITY LANE COMPANY ASSOCIATION A. VISION To create conducive business environment for members based on trust, respect, and responsibility in order to accelerate growth and to increase economic competitiveness towards global market. 19

20. B. MISSION 1. To increase national reserve through an efficient import with export orientation. 2. To be an effective government partner in national economy activity. 3. To develop members based on equality, respect, and responsibility. 4. To contribute in social and economic development.

21. C. PRIORITY LANE COMPANY PROFILE • Excellent reputation  company profile • Clear & specific Nature of Business. • Have never misuse Customs Facilities for the last one year. • Have never misinformed the import declaration for the last one year. • Have been audited by the Public Accounting Service with non disclaimer opinion or adverse. • Have no bad debt on Import Duty Payment. • Have the ability to report Customs Notification.

22. D. PRIORITY LANE FACILITIES • Priority in Customs Audit. • Red lines process deletion in port (include temporary import and “Vooruitslag”). • Shortening lead time of customs clearance in port. • Physical inspection have been omitted. • Truck-losing (not yet applicable). • Pre-notification. • Paperless import declaration. • Periodical payment. • Able to use Corporate Guarantee as an assurance. • For KITE Exemption Facility, free of guarantee receipt (STTJ) process (not yet applicable).

23. E. MAPING OF MEMBERS MEMBERS OF PRIORITY LANE COMPANY TOTAL : 107 COMPANIES MEMBERS OF PRIORITY LANE COMPANY ASSOCIATION TOTAL : 70 COMPANIES

24. THANK YOU