Supply chain security initiatives: The authorized economic operator and Indonesia's experience

Dicky Hadi Pratama (College of Business, Victoria University, Melbourne, Australia) *
Sophia Everett (College of Business, Victoria University, Melbourne, Australia)

Journal of International Logistics and Trade

ISSN: 1738-2122

Article publication date: 30 April 2017

Issue publication date: 30 April 2017

150
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Abstract

Discussion of security in supply chains has been intensified since the tragedy of 9/11 in the United States. The World Customs Organization's SAFE Framework with its Authorized Economic Operators (AEO) program is one of the prominent supply chain security initiatives. At the time of its introduction in 2005, 168 member countries signed their support for its implementation. However, the last AEO Compendium reports only 69 countries currently have AEO program in place. This relatively slow development indicates the complexity of issues that might challenge countries to implement the initiative. Against this background, this paper aims to look at the AEO implementation in an environment where supply chain security initiative is relatively new. It focuses on policy development perspectives where the case study of Indonesia might represent challenges of other countries. Involving methods of desk research, interviews, and field observation, this paper starts with the development of various international supply chain security programs where the AEO finds it prominence. It follows with a discussion on the Indonesian AEO implementation where challenges and its policy development process are explored.

Keywords

Citation

Pratama, D.H. and Everett, S. (2017), "Supply chain security initiatives: The authorized economic operator and Indonesia's experience", Journal of International Logistics and Trade, Vol. 15 No. 1, pp. 10-18. https://doi.org/10.24006/jilt.2017.15.1.010

Publisher

:

Emerald Publishing Limited

Copyright © 2017 Jungseok Research Institute of International Logistics and Trade

License

This is an Open-Access article distributed under the terms of the Creative Commons Attribution Non-Commercial License (http://creativecommons.org/licenses/by-nc/4.0/) which permits unrestricted non-commercial use, distribution, and reproduction in any medium, provided the original work is properly cited


Corresponding author

*Corresponding author: College of Business, Victoria University, PO Box 14428, Melbourne, Australia Email:

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