DPL to reform the Indonesian maritime logistics sector (WB-P158140)

Countries
  • Indonesia
Where the impacts of the investment may be experienced.
Financial Institutions
  • World Bank (WB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Closed
Bank Risk Rating
U
Risk rating varies among banks and may refer only to the particular investment and not to the risk for the project as a whole. Projects marked 'U' have an 'Unknown' risk rating at the time of disclosure.
Voting Date
Nov 2, 2016
The estimate day the bank will vote on a proposed investment. The decision dates may change, so review updated project documents or contact the EWS team.
Borrower
Government of Indonesia
The holder of the loan, grant, or other investment.
Sectors
  • Industry and Trade
  • Transport
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Loan
The categories of the bank investment: loan, grant, etc.
Investment Amount (USD)
$ 400.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please review updated project documents for more information.
Project Cost (USD)
$ 400.00 million
Value listed on project documents at time of disclosure. If necessary, converted to USD$. Please see updated project documentation for more information.
Primary Source

Original disclosure @ WB website

Updated in EWS Jan 31, 2019

Disclosed by Bank May 18, 2016


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Project Description

*The project has closed on September 30th, 2017*

The development objective of the First Indonesia Logistics Reform Development Policy Loan (DPL) Project for Indonesia is to reduce the costs and improve the reliability of the logistics chain in Indonesia. This program document presents a proposed DPL to support the Government of the Republic of Indonesia’s priorities for improving the movements of goods within and across the country’s borders to further its medium-term economic development and poverty reduction goals.

The proposed operation is the first in a planned programmatic series of two single-tranche operations supporting critical policy and institutional reforms to address bottlenecks at various points of the supply chain by:

a) strengthening port’s governance and operations;

b) enabling a competitive business environment for logistics service providers; and

c) making trade processing more efficient and transparent.

The proposed DPL series is structured around the following three pillars, a set of objectives and government program reform areas:

1) Pillar A: Enhancing ports’ performance. Strengthening port’s governance and operations by (i) improving the governance of ports by clarifying the role of Port authorities vis-à-vis port operators; (ii) facilitating the entry of port services operators; and (iii) enhancing coordination of documentary and container examination in ports;

2) Pillar B: Improving logistics services. Enabling a competitive business environment for logistics service providers by increasing competition in (i) freight forwarding services, storage, and distribution services; (ii) auxiliary shipping services; and (iii) reducing inventory costs of imported materials for producers;

3) Pillar C: Strengthening trade processing. Making trade processing more efficient and transparent by (i) reducing licensing requirements for imports; (ii) facilitating traders

Investment Description
  • World Bank (WB)
Contact Information

Ayu Sukorini
Title: Director of Loan and Grant, Ministry of Finance
Tel: 62-21-345-9616
Email: ayu_sukorini@dmo.or.id

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