infrastructure development strategy in...

Bastary Pandji IndraDeputy Assistant for Housing, Land, and Infrastructure Finance, Coordinating Ministry of

Economic Affairs

Jakarta, 26th November 2015

Infrastructure Development Strategy in Indonesia

2

Indonesia has huge needs for infrastructure development

2

Available government

funding

USD 124 Billion

USD 511 Billion

Funding needed for infrastructure

Funding gap

USD 386 Billion

Baseline

ASEAN

Source: Background study RPJMN 2015-2019 Bappenas

1686.4

793.6

3753.6

1766.4

0

1000

2000

3000

4000

5000

6000

New development

Maintenance

Transport sector

Other infrastructure sectors

USD 8 trillion

infrastruc-ture

investment needed in

Asia

USD Billion

Investment needs for Asia and ASEAN between 2010-2020:

95.661.2

300

139.3

0

50

100

150

200

250

300

350

400

450

New development

Maintenance

Transport sector

Other infrastructure sectors

USD Billion

USD 596 Billion of

investment needs in ASEAN

Asia

Indonesia has lots of catching up to do … to reach middle income status by 2025

To reach the middle income country

status by 2025, Indonesia’s infra.

investment needs reach USD 511 Billion between 2015-2019

Indonesia

10% of ESE-A

>7% to GDP

annually

Source: Asian Development Bank study

3

Development plan targets an economic growth of 6-7% p.a. in 2015-2019

3

Enggano

Kertajati

Singkawang

Muara Teweh

Miangas

Maratua

Tojo Una-Una

Pohuwato

Moa

Namniwel

Taria

Kenyam

Aboy

Sultan Hassanuddin

Banda Aceh

Belawan

Kuala Tanjung

Dumai

Batam

PangkalPinang

Pontianak

Panjang

Padang

Tj. Priok

Cilacap

Tj. Perak

Lombok

Kupang

Palangkaraya Banjarmasin

Makassar

Maloy

Bitung

Halmahera

SorongJayapura

Merauke

Ambon

KorowayBatu

Sea toll concept as a means to support Indonesia in becoming the world maritime axis. • develop 24 new seaports • increase number of substantial

vessels (pioneer cargo, transport vessels, pioneer crossing vessels)

• develop 60 crossing ports

Strengthen connectivity through air transport infrastructure development• develop 15 new airports• develop air cargo facilities in 6

locations • increase number of pioneer

airplanes

Improve transport efficiency by road development and maintenance• develop 2,650 km of new roads • develop 1,000 km of new toll roads• rehabilitate 46,770 km of existing

roads

Reduce logistic cost by improving railway infrastructure develop new tracks in Java, Sumatra, Sulawesi, and Kalimantan: 2,159 km inter-urban railways 1,099 km urban railways

Develop urban transport• develop Bus Rapid Transit

(BRT) in 29 cities• develop Mass Rapid Transit

(MRT) in 6 metropolis and 17 large cities.

Achieve electrification ratio of 96.6% by 2019 through generating capacity improvement • develop power plants with total

capacity of 35,000 MW

Ensure efficiency of fuel production by optimizing domestic refineries• build new oil refineries of

2x300,000 barrels• Expand existing refineries in

Cilacap and Balongan

Energy Related

Logistic Related

Location of 24 new seaports & 15 new airports

Source: Bappenas

Achieving food sovereignty through irrigation system improvement• develop 33 new dams and 30

hydropower plants• expand 1 million ha irrigation system • rehabilitate existing irrigation system

4

… However, Indonesia is facing numerous issues in implementing the projects

Budget

Permit ProcessHuman Resources

Environmental Permits

Location Permits

Government Supports and Guarantees

Land Acquisitions

Spatial PlanningForestry Permits

Foreign Loan Disbursement

Overlapping Regulations

Procurement Process

Political Decisions, GroundbreakingPolitical

Decisions, Groundbreaking

Lack of synchronization between political decisions and implementation creates a big gap which hindered project implementation. Comprehensive solutions need to be introduced to

overcome the issues and accelerate infrastructure provisions needed by Indonesia.

5

Official expenditure data in infrastructure is around 5% of GDP – The actual percentage of APBN and APBD is actually lower, since this data includes costs of office buildings for related ministries.

The key issues and bottlenecks faced by a selection of priority projects:

3.77%

5.24%4.96% 5.06%

4.26%4.00% 4.13%

4.72%5.01% 5.11%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

-

10.00

20.00

30.00

40.00

50.00

60.00

National State Budget (APBN) Regional State Budget (APBD) State-Owned Enterprises Private SectorTotal Infrastructure InvestmentTotal Infrastructure Investment Share of GDP, %

(USD bn)

Main causes for the infrastructure deficits includes delivery bottlenecks, under investments and lack of government led funding schemes

Land Acquisition

33%

0%

Spatial Planning

22%

Budget-related

14%Others

11%

0%Permit

0%

IPPKH14%

AMDAL6%

Permit20%

Other cross cutting issues faced by many infrastructure projects:• Ambiguous legal and regulatory frameworks• Lack of long-term financing• Inadequately prepared projects• Poor asset management• Lack of consequence management• Weak human capital and poor institutional capacity• Lack of industry capacity• Absence of community support for infrastructure projects

Main issues:

Source: Tusk Advisory analysis

6

In the next 5 years, Indonesia needs IDR 4,796 trillion for infrastructure development, 36.5% of which comes from private sector

The above infrastructure investment is required in order to achieve 7% annual economic growth

SECTOR State Budget Regional Budget SOE Private/PPP Total

Roads 268 200 65 200 733

Railways 93 - 11 122 226

Sea Transportation 260 - 238 93 591

Air Transportation 64 5 50 25 144

River Transportation & Ferries 37 - 10 - 47Urban Transportation 61 15 5 5 86

Electricity 120 - 445 435 1000

Oil & Gas 4.3 - 152 352 507

Information & Communication Technology (ICT) 15 15 27 223 280

Water Resources 196 68 7 180 451

Drinking Water & Sanitation 131 198 44 30 403Housing 184 44 13 87 328

Total funding needs 1,433.3 545.3 1,066 1,751 4,796

Allocation percentage 29.88% 11.37% 22.23% 36.52% 100%

In IDR trilionInfrastructure Projects Investment Needs by Sector (2015-2019)

Source: BAPPENAS

7

Thus, Indonesia is looking to boost private sector participation in various stages of infrastructure preparation

Planning

Preparation

Implementation

Private Sector Roles Improved Support for Private Sector

• Propose unsolicited projects

• Prepare OBC (Outline Business Case) and other planning documents

• Prepare FBC (Final Business Case)

• Provide Transaction Advisory

• Acquire land*

• Design and construct infrastructure

• Operate and maintain infrastructure

• The PPP Pres. Reg provides incentives for unsolicited projects

• New procurement regulation and OBC facilities from KPPIP and Bappenas support quality consultant procurement

• Debottlenecking support from KPPIP

• New procurement regulation and PDF/TA facilities from PPP unit under MoF support quality consultant procurement

• Direct appointment allowed for investors that propose power projects, which have acquired the land

• Land acquisition regulations and Land Capping Fund provide certainty and acceleration

• Debottlenecking support from KPPIP

• Fiscal support and guarantee from MoF and IIGF improve project bankability

• Availability payment from state and regional budgets for construction, operations and maintenance

• Long-term financing by PT SMI and PT IIF

*) Under most projects, land acquisition will be done by the Government through BPN. However, in a few projects, such as mine-mouth power plant, land can be provided by private sector.

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Initiatives by the Government to accelerate the delivery of infrastructure projects

Fiscal reforms Institutional reforms Regulatory reforms

Supported by improving awareness of Indonesian infrastructure issues, convergent reforms are building a better business environment for tomorrow’s investment

• Investing in Indonesian infra-structure has been regarded as a risky investment with uncertain returns.

• Indonesia did not have any fiscal mechanisms that could support the development of infrastructure investment.

• Indonesia suffered a lack of leadership to implement the changes needed for the infrastructure sector to grow.

• Regulatory reforms are the backbone of long-term structural change. Indone-sian regulatory corpus has been characterized by some ambiguities and conflicting regulations.

Indonesia now has fiscal supports to improve project

attractiveness, such as VGF and Availability Payment. It has also established land revolving fund to improve risk-sharing scheme.

Establishment of KPPIP(Committee for Acceleration of Priority Infrastructure Delivery) and empowerment of existing

institutions (PT. SMI and IIGF) to fill in the gap in enhancing project

bankability. Ministry of Finance has established PPP Unit to

provide PDF and TA.

The Government has ratified the revision of or new regulations related to PPP, Availability Payment, Direct

Lending and land acquisition. Moreover, policy deregulations have

been included as one of the main aspects of the Economic Policy

Packages.

issu

esR

efor

ms

8

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Recent policies aim to create a more conducive investment climate for private sector

Presidential Regulation (PR) No. 38/2015 regarding PPP (4th revision of PR No. 67/2005)

Presidential Regulation (PR) No. 39/2014 regarding the New Negative List of Investment

Government has revised the original regulation on PPP (Presidential Regulation No. 67/2005)three times to accommodate more concerns regarding PPP development in Indonesia. Forexample, the revision accommodates international institutions to provide feasibility study/project preparation support, criteria and compensation for unsolicited project proposal, theneed of stronger fiscal support from Ministry of Finance.

Government has revised the previous Negative list of investment to encourage more foreignbusinesses to take part in infrastructure development. For example, in transportsector, foreign ownership of seaport facility increased from 49% to 95% during PPPconcession period. The government also allows 100% foreign ownership of power plant>10MW during PPP concession period (previously 95%).

Minister of Energy & Mineral Resources Reg. No. 3/2015 regarding Procedure for Power Purchase through Direct Selection and Direct Appointment

This regulation allows for power purchase from mine mouth coal power plant, coal powerplants, gas/micro gas power plants, and hydro power plants can be done with direct selectionand direct appointment with the purpose to accelerate procurement process.

Minister of Finance Regulation No. 190/PMK.08/2015 on Availability Payment in PPP for Infrastructure

This regulation allows the use of Availability Payment mechanism using State or Regionalbudgets to ensure sustainable quality service from PPP infrastructures, optimize Value forMoney of State and Regional budgets, and provide an option of return of investment to attractPrivate’s interests in PPP projects.

Presidential Regulation No. 82/2015 on Government Guarantee for Direct Lending from International Finance Institution to State Owned Enterprises

This regulation allows for Bilateral/Multilateral organizations to provide direct lending to StateOwned Enterprises without going through State Budget processes and parliement approval.Central Government provides guarantee to Bilateral/Multilateral organizations which providesdirect lending based on the risk management of State Budget.

10

Has been successfully applied in Trans Sumatera Toll Road, Palembang –

Indralaya section

Planning Preparation Implementation Hand over of land rights

Time span in working days (Assuming there will be objections from land owners):

Max. 289 days Max. 257 days Max. 37 days

TOTAL 583 DAYS

Unregulated

If there is no objection from the land owners, total days needed could be speeded up to around 15 – 20 % of

maximum days above.

Additionally, Law No. 2/2012 aims to accelerate land acquisition and it has been implemented successfully

• The best example of a successful implementation of the law is the city of Bojonegoro, where the civil society was socialized early to the law and where the land appraisal and compensation amount were attractive.

• Outcome: the overall land acquisition process for the Java North Line Double Track Rail project took less than 2 years.

Neutral decision making regarding community rejection

BPN as central agency in implementation of land acquisition

More detailed regulation on implementation of land acquisition

Implementation of Law No. 2/2012:

Less bureaucratic land right revocation process

Successful case of the implementation of the New Law

Law

No

2 / 2

012

Better Land Appraisal Team Appointment

11Source: National Single Window for Investment, Indonesia Investment Coordinating Board (BKPM), 2015

Before PTSP After PTSP

The Indonesian Investment Coordination Board (BKPM) launched the One Stop Service Center (PTSP in Indonesian) on January 26th 2015 in an effort to streamline investment permits for all sectors. This program gives BKPM the authority over 134 key permits usually issued by the 22 different ministries/agencies. The PTSP would put the permit issuance process into asingle roof in BKPM thus ensuring faster process and clear guidelines. The process is expected to be optimal by April 2015.

Coordination w

ith R

egion

In the past investors have had to seek permits and licenses from individual government agencies. They would refer to BKPM for business permits while refer MoF for taxes. Investors would need to go to ministry of law for legal permits while going to sector ministries for sector/operational permits.

Before the PTSP it takes on average 260 days to issue a full business permit. The worst, licenses for power plants - is estimated to take up 930 days or almost 3 years.

INVESTORS

INVESTORS

OTHERAGENCIES

The new One Stop Service Center would encompass 22 different ministries and agencies into a single service center for investment managed by the National Single Window forInvestments. This integrated coordination would accelerate permits from an average of 260 days to only 90 days. It even promises to expedite power plant permits to just 240 days.

The OSSC provides consultation, front office and administration services to investors. The office provides issuance for investment, business expansion, tax levies, import and export permits, and human capital permits.

OTHERAGENCIES

OSSC(PTSP)

PERMIT ISSUANCE

260days 90

days

Average time

260days

The government has also centralized and shortened approval process, permits and license issuance

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Since September 2015, Government of Indonesia has introduced Economic Packages which have the purpose to stimulate growth in multiple sectors

Government intervention is needed following the economic slow down.

In the spirit of moving the national economy, the Government launched policy package Phase 1 (September 2015):

1. Deregulation• Rationalizing regulations by eliminating

duplication/redundacy/irrelevancy of regulations• Conducting regulations harmonization.• Conducting regulations consistency.

2. De-bureaucratization• Simplified permits through one identity of business owner/profile

sharing, permit requirements minimalization, etc.• Clear and firm SOP and SLA in permit mechanism and procedure as

well as providing help desk and sustained internal monitoring.• Adhering an authority delegation system to PTSP

(place, type, duration, cost).• Implementing risk management that is in line with permit process. Permit

service and non-licensing through an electronic system.

3. Law Enforcement and Business Certainty• The existance of damage control channel of problamatic regulations and

bureaucratic. • Monitoring, safety and comfort, as well as eradication of extortion and

unofficial fees.• Creating firm and comprehensive sanctions in every regulation.

The World weakening economy has a negative impact to the national economy

Budget absorption of CMEA is at 34.7% as per 31 August 2015 (IDR78.3 T from IDR225.43 T)

Abundant challenges regarding regulations and permits have hampered infrastructure delivery

Arising concerns among state/SOE officials to make decisions to expedite or implement projects

Low investment at home

Economic Policy Package Phase 1

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Economic Policy Package Phase 1Summary of deregulation based on line ministries/institutionsNo Line Ministries/Institution The Number of Regulation Total

RegulationGov. Reg.

Presidential Reg.

Presidential Instruction

Ministerial Reg.

Others

1 Coordinating Ministry of Economic Affairs 2 2

2 Ministry of Industry 1 14 15

3 Ministry of Trade 30 2 32

4 Ministry of Finance 4 6 10

5 Ministry of Agriculture 1 1 5 7

6 Ministry of Energy & Mineral Resources 2 7 1 1 11

7 Ministry of Agrarian & Spatial Planning 6 1 3 10

8 Ministry of Environment & Forestry 2 2

9 Ministry of Labor 2 1 3

10 Ministry of Transportation 5 5

11 Ministry of Public Works & Public Housing 1 1

12 Ministry of Health 1 1

13 Ministry of Tourism 2 2

14 Ministry of Cooperative & Small-MediumBusiness

29 29

15 Indonesia Investment Coordinating Board 2 2

16 Food & Drug Supervisory Board 2 2

Total Regulation 17 11 2 96 8 134

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Economic Policy Package Phase 1Examples of deregulations that will support timely infrastructure delivery

No Regulations Positive Impact

1 Gov. Reg. on Industrial Supporting Infrastructure Development (Industrial Zone)

• Accelerating the development of 14 industrial zones based on National Medium Term Plan

• Increasing types and number of industrial products for local market and export

2Gov. Reg. Draft on the second amendment on Procedures for Change in Designation and Functions of Forest Area

• Regulating IPPKH (Forest Permit) submission for mining as long as the activity and location in line with the IUP, thus no need to submit environmental permit and EIA document given that these two documents are required for IUP issuance.

3 Presidential Reg. on Implementation of Homeland Oil Refinery Development

• Regulating project funding schemes for oil refinery from government, private or both.

• Allowing PT Pertamina as the Government Contracting Agency (GCA) for PPP projects.

4 Presidential Reg. on National Strategic Project (PSN)

• Simplification and the ease of getting permits and non-permits.

• Completion of spatial planning and assurance of land procurement.

• Granting guarantee on government policy changes risks.

• Acceleration of government procurement.

• Discretion in the resolution of issues and legal protection.

5 Presidential Reg. on Acceleration of Electricity Infrastructure

• Allowing project assignments to PT PLN to develop power plant, transmission and main station.

• Acceleration of procurement and financial restructuring of PT PLN.

15

Deregulation also emphasizes on regulatory improvements related to land which can encourage investments in Indonesia

No Revised Regulation Positive Impacts from the Revision

1 Govt. Reg. No. 24/1997 on Land Registration Provide legal basis and reduce bureaucracy process in land registration

2Govt Reg No. 37/1998 on the Land Titles Registrar

Improve human resources who can be land registrars by reducing the minimum age limit

Share the work area of land registrar to provide better services

3 Govt Reg No. 11/2010 on Curbing and Utilization of Abandoned Land

Provide sufficient time to the people who own the rights regarding optimalization and productivity improvements of abandoned land

4Govt Reg No. 41/1996 on Residential Ownership by Foreign Nationals in Indonesia

Provide permits to foreign nationals to own residences which are inheritable as long as they have residence permit in Indonesia

Encourage property investments in IndonesiaIncrease national revenue from tax and royalty

5Govt Reg No. 13/2010 on Types and Tarriffs for Government’s Non-Tax Revenue in Ministry of Agraria and Spatial Planning

To optimize national revenue from non-tax to finance national development

6Govt Reg No. 40/1996 on Cultivation Land Rights (HGU), Rights to Build (HGB), and Rights to Use (Hak Pakai).

Provide legal certainty for rights over lands.

7 Pres Reg No. 71/2012 on Land Acquisitionfor Public Interest Accelerate land acquisition for infrastructure provision

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President Jokowi’s administration has selected priority projects and national strategic projects for acceleration…

• Conform with National Medium Term Planning (RPJMN) and sectoral strategic planning (Renstra).

• Conform with spatial planning (not changing Green Open Space/Ruang Terbuka Hijau).

• Has strategic roles to the economy, social welfare, defense, and national security (contribute to GDP, employment, socio-economy and environment impacts).

• Interconnected across infrastructure sector and regions (complementary effect).

• Project distribution across regions

• New project proposals must have a Pre-FS study.

• Investment cost must be more than IDR 100 Billion or the project must have strategic roles in improving regional economy.

Basic Criteria

Strategic Criteria

OperationalCriteria

National Strategic Projects* criteria (Pres. Reg pending): Priority Infrastructure criteria (Pres. Reg No. 75/2014):

• Conform with National Medium Term Planning (RPJMN) and sectoral strategic planning (Renstra).

• Conform with spatial planning (not changing Green Open Space/Ruang Terbuka Hijau).

• Has strategic roles to the economy, social welfare, defense, and national security (contribute to GDP, employment, socio-economy and environment impacts).

• Interconnected across infrastructure sector and regions (complementary effect).

• Project distribution across regions.

Basic Criteria

Strategic Criteria

• Priority infrastructure projects are a subset of PSN.• Priority infrastructure and PSN projects will be coordinated under KPPIP (Committee for Acceleration of Priority

Infrastructure Delivery) as Project Management Office (PMO).• Priority infrastructure projects will be given added funding facilities to ensure quality project preparation, on top of the

facilities and permit acceleration provided to PSN.

• If the project proposal does not have qualityPre-FS study, KPPIP will facilitate a re-do.


• Readiness criteria include GCA championship, other stakeholders’ commitment, and no critical technical issues.

OperationalCriteria

*National Strategic Project or in Bahasa called Proyek Strategis Nasional (PSN)

17

National Strategic and Priority Projects

Roads RailwaysWater & Sanita-

tionEnergy Electrici-

ty Ports Airports

4 5 3 2 9 4 1

Proposed Priority Projects*

Looking at the delays and hindrances in delivering strategicprojects, the Government is developing the PresidentialRegulations and Presidential Instruction for National StrategicProjects.

KPPIP was mandated to select National Strategic Projects andcoordinate their deliveries. From the list, KPPIP will identify thepriority projects which will receive additional facilities such as Pre-Feasibility support, funding scheme determination platform anddedicated debottlenecking support.

Roads Railways Airports Ports Housing Energy

52 19 17 13 3 7

PSN Distribution

Water & Sanitation

BorderDevelopment Dams Technology Estates Mining

10 7 60 3 25 6

Agrarian & Fisheries Electricity

3 1 Program

17

PSN Projects

KPPIP Projects:

28 Projects*

CMEA / CMMA Projects

*) Proposed projects are tentative until ratification by Permenko.

18

The prioritization criteria will be used to shortlist candidates from the PSN List, which can then be nominated by GCAs for prioritization

PSN Projects

KPPIP Projects

CMEA / CMMA Projects

CMEA / CMMA Projects Criteria:

• Conform with National Medium Term Planning (RPJMN) and sectoral strategic planning (Renstra)

• Conform with spatial planning (not changing Green Open Space/Ruang Terbuka Hijau)

Basic Criteria

In addition to the above, PSN Projects have additional criteria:

• Has strategic roles to the economy, social welfare, defense, and national security (contribute to GDP, employment, socio-economy and environment impacts)

• Interconnected across infrastructure sector and regions (complementary effect)

• Project distribution across islands• New project proposals must have a well prepared Pre-FS study.


• Construction has to start in 2018 at the latest.

Strategic Criteria

Operational Criteria

In addition to the CMEA / CMMA and PSN Projects Criteria, KPPIP Projects have additional criteria:

• The project needs to have a clear champion who has shown commitment in delivering it (e.g. clear action plans and project schedule)

Clear project championship

• Ideally exceed IDR 500 billion. KPPIP could also consider to establish sector-specific minimum project value Investment cost

• KPPIP must focus on projects which not only big in scale, but also have high economic return. The project ideally exceeds top quartile of EIRR.

EIRR

• KPPIP must focus on new infrastructure projects and not on O&M and procurement projects.Sector suitability

19

The differentiations between KPPIP, PSN and regular Coordinating Ministries’ projects

PSN Projects KPPIP ProjectsOther Coordinating Ministries’(CMEA/CMMA) Projects

DescriptionStrategic projects as stipulated in PSN Pres Reg and will receive the facilities as provided in the regulation.

Priority projects as stipulated in Pres Reg No. 75/2014 and will receive the facilities to be provided by KPPIP. KPPIP projects are included in PSN list.

Other projects by line ministries under CMEA/CMMA which will obtain coordination support by respective ministries accordingly.

Selection Process

• Bottom Up process with KPPIP coordination

• Follow KPPIP SOP for Bottom Up and Top Down project selections

• Projects needs to be included in RPJMN and Project Owner’s Renstra

Facilities

• All facilities stipulated in PSN Pres Reg (incl. permit, land acquisition and procurement acceleration).

• All facilities stipulated in Pres Reg on PSN

• OBC/FBC and project preparation facilities from KPPIP, Bappenas, MoF

• Incentives/disincentives• KPPIP PMO supports

• Coordination support from CMEA/CMMA

PIC for Monitoring

KPPIP KPPIPProject Owner (Ministries/Institutions/GCA)

Business Process

Projects will follow the business process as stipulated by PSN Pres Reg.

Projects will follow the business process as stipulated in KPPIP’s Pres Reg and SOP as well as PSN Pres Reg.

Projects will follow the business process stipulated by each Project Owner and related stakeholders.

20

National Strategic Project (PSN)’s Facilities and Privileges

1. Permits and Non-Licensing

• Projects which has obtained IPPKH no longer needs Location Designation permit for the forest area.

• Single data processing of Location Determination, Environmental Permit, Building Permit, Disturbance Permit, and Building Approval.

• PSN may start construction after issuance of Location Designation, Environmental Permit and Building Permit.

2. Government Procurement

• Direct appointment for consultancy service with value up to IDR 500 million.

• Direct appointment of international financial agency/consultancy firm that has been engaged by Project Owners and maintained a good reputation.

• Multi-year budget is allowed if engagement cannot be completed in a single financial year.

5. Debottlenecking

• The Government can exercise discretion to debottleneck issue in delivering the PSN as per the prevailing regulations.

• In the case where no Law/Regulation exists, the Government is able to decide/act using Good Governance principle.

• The implementation of PSN will support the local content.

4. Local Content

6. Spatial Planning

• PSN locations will be set as Holding Zones when the Minister of Environment and Forestry has not approved the revision of the status of forest area.

• If the project location, which is a non-forest area, is suddenly converted into a forest area, project continuation will require IPPKH.

• Adjustment of Spatial Planning for PSN projects will be performed as per the prevailing regulation.

• The Government will support Business Entities through land acquisition prioritization and state land utilization.

• Business Entities’ expenses related to the land acquisition can be reimbursed to the Government and payment can be made through the State Budget/Local Government Budget.

• Reimbursement can be considered as part of investment cost.

3. Land Acquisition7. Government Guarantee

• The Government will provide guarantees to the PSN that are implemented by the Local Government and Business Entity.

• The Local Government must provide project guarantee in advance prior to requesting any Guarantee from Central Government.

20

21

Priority Project’s Facilities and Privileges

Priority project will receive facilities to re-do/revise the existing pre-feasibility studies in forms of funding or pool of consultant to ensure high quality project preparation. KPPPIP has allocated more than 50% of its budget for OBC facility.

OBC Facility by KPPIP/Bappenas

PPP Unit in Ministry of Finance will prioritize projects with PPP potential as listed in KPPIP Priority Projects List. The projects will be prioritized to receive Project Development Facility / Transaction Advisory(PDF/TA), application for government support, Viability Gap Funding (VGF), and/or Availability Payment.

Prioritization of PPP projects at PPP Unit, Ministry of Finance

Priority projects will be prioritized for debottlenecking efforts through stakeholder coordination facilitated by KPPIP with supports from internal full time experts from professionals. KPPIP is also able to establish ad hoc working team to resolve specific issues.

Priority Debottlenecking Support and Working Team Facilities To encourage on schedule project implementation

with good quality, KPPIP will introduce incentive/disincentive* scheme on Project Owner’s performance. The incentive may be additional priority project quota for the Project Owner in the coming year, supports for related studies, etc. Disincentives may be the Project Owner placement in KPPIP blacklist for future priority project candidates, and refund of OBC fund provided by KPPIP.

Incentive/Disincentive* scheme for project

*The incentive/disincentive scheme is a work in-progress.21

22

The differentiations between KPPIP, PSN and regular Coordinating Ministries’ projects

PSN Projects KPPIP ProjectsOther Coordinating Ministries’(CMEA/CMMA) Projects

DescriptionStrategic projects as stipulated in PSN Pres Reg and will receive the facilities as provided in the regulation.

Priority projects as stipulated in Pres Reg No. 75/2014 and will receive the facilities to be provided by KPPIP. KPPIP projects are included in PSN list.

Other projects by line ministries under CMEA/CMMA which will obtain coordination support by respective ministries accordingly.

Selection Process

• Bottom Up process with KPPIP coordination

• Follow KPPIP SOP for Bottom Up and Top Down project selections

• Projects needs to be included in RPJMN and Project Owner’s Renstra

Facilities

• All facilities stipulated in PSN Pres Reg (incl. permit, land acquisition and procurement acceleration).

• All facilities stipulated in Pres Reg on PSN

• OBC/FBC and project preparation facilities from KPPIP, Bappenas, MoF

• Incentives/disincentives• KPPIP PMO supports

• Coordination support from CMEA/CMMA

PIC for Monitoring

KPPIP KPPIPProject Owner (Ministries/Institutions/GCA)

Business Process

Projects will follow the business process as stipulated by PSN Pres Reg.

Projects will follow the business process as stipulated in KPPIP’s Pres Reg and SOP as well as PSN Pres Reg.

Projects will follow the business process stipulated by each Project Owner and related stakeholders.

23


In the spirit of moving the national economy, the Government launched policy package Phase 2 (September 2015):

3-hour Quick Investment Service in Industrial Estates

• Potential investors could immediately do investment related activities after acquiring the Quick Investment License

• The criteria to acquire the quick service is: investors have plans to invest a minimum of IDR 100 billion and/or to absorb local Indonesian labor of more than 1,000 people

• The quick investment service through One Window Processing (PTSP) at BKPM encompass investment permits, business set-up certification, and legalization from Ministry of Justice and Human Rights of the Republic of Indonesia, as well as taxpayer registration number

• The investment license given will also function as license for construction to begin investment activities in Industrial Estates

Government intervention is needed following the economic slow down.

Issues concerning lead time and the number of licenses needed to invest becomes a significant hurdle in accomplishing business activities

24


1. A decrease in the price of oil, gas and electricity

• The decrease in the price of LPG 12 kg, Pertamax, and Pertalite as well as Solar (subsidized and non-subsidized).

• The decrease of electricity tariff for industrial estate consumers I3 and I4

,tariff discount up to 30% for evening electricity usage and the delay of electricity payment up to 40% for 6-10 months with installments (labor intensive industries and non competitive industries).

• Gas prices for factories from gas fields will be determined accordingly by the purchasing power capabilities of the fertilizer industry, and gas prices for other industries (such as petrochemicals, ceramic, etc,.) will be decreased accordingly to the capabilities of each industries.

• Households or employees with stable incomes will be eligible to acquire Credit for the Poor (Kredit Usaha Rakyat) that is to be used for the productive business sector.

• Ease of land permits for investment activity purposes with the revision of Ministerial Regulation No. 2/2015 on the Standard of Service and agrarian regulation, spatial planning and investment activities related to the usage of land (details will be provided in the next slide).

• Accelerated information acquisition and administrative process for the usage of land for business purposes.

• Accelerated process for cultivation right on land.

• The extension for rights of land use is based on managerial evaluation, usage and audit of land size and no longer using the initial submission requirement.

2. Expansion of acceptance for Credit for the Poor

3. Ease of land permit

25

Ease of land permits can be achieved through revising the process and the timeline for the process

Cultivation Right on Land (HGU)

30 – 90 business days

20 business days (up to 200 ha)

45 business days (>200 ha)

Renewal/ extension of Cultivation Right on Land (HGU)




Request forright to build (HGB)/right to use (HakPakai)







Right of land 5 business days

1 business day

Finalization of request

5 business days

2 business days

Timeline prior to revision Timeline after revision

Timeline for license (after all requirements have been fulfilled):For the purpose of supporting economic activities in the field of agrarian, the Minister of Agrarian and Spatial Planning has revised Ministerial Regulation No. 2/2015 on the standard of service and agrarian regulation, spatial planning and investment activities related to the usage of land

The content of the new regulation encompass:

The extension of cultivation right on land is based on administrative evaluation, usage of land and audit of land size and no longer using initial submission requirement

Renewal/ extension ofright to build/right to use

1. The request to gain information on the availability of land (3 hours instead of 7 days).

2. All requests that are registered will be granted and the letter accompanying will be published in 3 hours.

3. The completeness of in principal permits4. Proposals, business establishment, and

land rights become the initial requirement to begin activities.

5. Several requirements can be submitted at a later date until prior to the published decision on cultivation right on land.

26


1. Wage policies that are fair, prosperous and projected 2. Affordable and wider policies on credit for the poor

Objectives:• To open and expand the availability of workforce. and

to increase the prosperity of labor workers.• To increase labor wage each year appropriately• To give business certainty.• To give assurance and protection to the wage system.

Changes in Government Regulation Draft on wages:• To finalize the formula on deciding the minimum.

wage in order to be fair, and easily projected. • The formula will favor the labor force as it will take into

accord inflation and economic growth.

Objectives:• To support the increase usage of credit in order to

stimulate the economy by giving an increase in subsidy for the interest.

• To expand upon the receivers of the credit.

Changes in Minister of Economic regulation No.6/2015 on the guidelines for credit for the poor:a. Credit receivers are

individuals/company/regulatory institutions that encompass:

• Productive small, medium enterprises.• Indonesian workforce that would

potentially be employed overseas.• Family members of employees or

Indonesian labors with stable income.• Indonesian workers that had recently

returned from being employed overseas.• Indonesian workers who are recently

terminated from their employment.b. Productive sector encompass:

• Agriculture• Fisheries• Processing industry• Trade• Other services (accommodation

services, transportation sector, real estate, education sector)

The published Government Regulation will be followed with 7 regulations from Ministry of Manpower:1. Ministry of Manpower regulation on the formula for

minimum wage.2. Ministry of Manpower regulation on the finalization

of provincial minimum wage.3. Ministry of Manpower regulation on the finalization

of sectoral minimum wage.4. Ministry of Manpower regulation on wage structure

and scale.5. Ministry of Manpower regulation on end of

Ramadhan bonus.6. Ministry of Manpower regulation on money service.7. Ministry of Manpower regulation on fair standard of

living.

27

Priority Project’s Facilities and Privileges

Priority project will receive facilities to re-do/revise the existing pre-feasibility studies in forms of funding or pool of consultant to ensure high quality project preparation. KPPPIP has allocated more than 50% of its budget for OBC facility.

OBC Facility by KPPIP/Bappenas

PPP Unit in Ministry of Finance will prioritize projects with PPP potential as listed in KPPIP Priority Projects List. The projects will be prioritized to receive Project Development Facility / Transaction Advisory(PDF/TA), application for government support, Viability Gap Funding (VGF), and/or Availability Payment.

Prioritization of PPP projects at PPP Unit, Ministry of Finance

Priority projects will be prioritized for debottlenecking efforts through stakeholder coordination facilitated by KPPIP with supports from internal full time experts from professionals. KPPIP is also able to establish ad hoc working team to resolve specific issues.

Priority Debottlenecking Support and Working Team Facilities To encourage on schedule project implementation

with good quality, KPPIP will introduce incentive/disincentive* scheme on Project Owner’s performance. The incentive may be additional priority project quota for the Project Owner in the coming year, supports for related studies, etc. Disincentives may be the Project Owner placement in KPPIP blacklist for future priority project candidates, and refund of OBC fund provided by KPPIP.

Incentive/Disincentive* scheme for project

*The incentive/disincentive scheme is a work in-progress.27

28

PROJECT OPPORTUNITIES

29

List of potential projects for investments

Sector Projects

• Bontang oil refinery• Refinery Development Master Plan (RDMP)• Tuban Oil Refinery

• Sumatera 500 kV Transmission Line• IPP Power Plants – Ongoing Procurement• IPP Power Plants – Upcoming Procurement

• Light Rapid Transit (LRT) Jakarta, Bogor, Depok, Bekasi• Light Rapid Transit (LRT) Palembang• Jakarta-Bogor-Depok-Tangerang-Bekasi Circular Line

• Serang – Panimbang Toll Road• DKI Jakarta Inner City Toll Road• Cisumdawu Toll Road• Pemalang – Batang Toll Road• Balikpapan – Samarinda Toll Road• Manado – Bitung Toll Road• Trans Sumatera Toll Road

• Kertajati Airport

Power

Electricity

Railway

Toll Road

Airport

Est. Investment Cost (USD)

5.4 – 10 Billion21 Billion5.4 – 10 Billion

1.7 BillionNot availableNot available

1.49 Billion (Phase IA, IB, II)550 Million~671.69 Million

848.46 Million2.91 Billion418 Million285.28 Million814 Million278 Million2.5 Billion

214 Million

30

Bontang Oil Refinery

USD 5.4 Billion – 10 Billion

Location

Government Contracting Agency

Estimated Investment Cost*

Bontang, East Kalimantan

Scheduled for 2019

PT Pertamina

Commercial Operation Date

Financing Scheme / Opportunities

*) USD 1 = IDR 14,000

• Financing scheme is potential PPP (subject to the result ofprefeasibility study at the end of 2015).

• Opportunities:• As the investor in the PPP scheme to collaborate

with PT Pertamina as the GCA• As the EPC contractor for refinery construction• As the supplier of crude oil

Project Significance

• The development of Bontang oil refinery is estimated to have production capacity of 235 thousand barrels per day of fuel aimed to achieve energy security.

Latest Status

• Coordinating Ministry of Economic Affairs is currently procuring a consultant to develop prefeasibility study which will be used to determine project funding scheme.

• The regulation to allow PT Pertamina to serve as the Government Contracting Agency (GCA) is under development and targeted to be ratified by September 2015.

• If PPP scheme is used, the tender for investor for PPP is scheduled for Q1 2016. EPC and construction is scheduled to start in early 2017.

• The land in Bontang is owned by Ministry of Finance which will be provided under zero lease scheme for investor. Since majority of the required land is owned by MoF, only minimum land acquisition will be required.

Contact Person: Andi Novianto (Coordinating Minister of Economic Affair)P: +628176934104/ E: [email protected]

31

Refinery Development Master Plan (RDMP) – Upgrading existing refinery projects

USD 21 Billion

Location

Assigned SOE


Cilacap, Balongan, Dumai, Balikpapan, Plaju

2021 (For Phase 1 – Cilacapand Bontang refineries)

PT Pertamina


Financing Scheme & Opportunities

*) USD 1 = IDR 14,000

• PT Pertamina has agreed to strategic partnership with JXNippon for Balikpapan refinery and Saudi Aramco forCilacap Refinery.

• Opportunities:• As a strategic partner (B2B) for

Balongan, Dumai, and Plaju refineries• As the supplier of crude oil to the refineries


• RDMP is a revitalization plan of 5 existing refineries in Indonesia, located in Cilacap, Balongan, Dumai, Balikpapan, and Plaju, with the capacity to increase production by 150%.

Latest Status

• Prefeasibility study, EPC selection, and bankability study for RDMP were concluded at the end of 2014.

• PT Pertamina has signed the Memorandum of Understanding with selected investors on 10 December 2014 with partners from Saudi Aramco, JX Nippon, and Sinopec China.

• The revitalization will be done in stages, starting from Phase 1 – Balikpapan and Cilacap refineries.

• Development of Basic Engineering Design (BED) and Front End Engineering Design (FEED) are scheduled from 2016 –mid of 2017.

• EPC will start from 2018 to 2021.

Contact Person: Iriawan Yulianto (PT Pertamina)P: +628111750640/ E: [email protected]

32

Tuban Oil Refinery

~USD 5.4 Billion – 10 Billion

Location



Tuban, East Java

2022

PT Pertamina



*) USD 1 = IDR 14,000

• Business to Business/Strategic Partnership. The project willbe financed by the joint venture to be established by PTPertamina and the strategic partner.

• Opportunities:• As the strategic partner to PT Pertamina• Provide financing to the Joint Venture between PT

Pertamina and the Strategic Partner


• This refinery will be able to take crude oil by 300 mbpd (100 mbpd Arab Light, 100 mbpd Arab Extra Light, and 100 mbpdopen source. The production may contribute up to 50% of fuel demand and fulfill diesel demand in East Java.

Latest Status

• PT Pertamina had signed MoU with Saudi Aramco on February 2012 which was extended until August 2014.

• Market study (joint study by Pertamina and Aromco Asia) had been concluded in May 2013.

• Configuration study was completed in 2014 and resulted on 3 configurations which are FCC (to maximize Petrochem), HCU (to maximize diesel), and RFCC (balance).

• Location Study was completed by Pertamina in May 2013 and came up with the recommendation of Tanjung Awar –Awar, Tuban, as the prime location. The land is currently in acquisition process.

• Procurement for EPC is estimated to start in April 2019.

Contact Person: Iriawan Yulianto (PT Pertamina)P: +628111750640/ E: [email protected]

33

Sumatera 500 kV Transmission Line

USD 1.7 Billion

Location



Sumatera Island

Not yet determined

PT PLN



*) USD 1 = IDR 14,000

• Two sections (430 km) is currently under procurementprocess to select the winning local SOEs.

• Opportunities:• As the potential lender for the local SOEs to

provide construction financing• As the EPC contractor for the remaining ~900 km

which are in the planning stage.


• The ~1,300 transmission line has the purpose to transmit electricity power produced in South Sumatera power plants to areas throughout Sumatera, up to the north of the island.

Latest Status

• PT PLN is currently procuring the local SOEs to develop two sections from New Aur Duri – Peranap – Perawang with the total of 430 km. Land acquisition for the 430 km will be conducted by the winning SOE.

• The remaining 900 km is currently being assessed for funding scheme determination. There are two options (1) Direct appointment to Chinese SOE which requires a legal opinion from State Attorney or (2) beauty contest for shortlisted bidders.

• PT PLN has not decided which option to be selected.

Contact Person: Corporate Secretary (PT PLN)P: +66217261122/ F: +62217221330

34

Potential 25,904 MW OUT OF 35,000 MW IS PLANNED TO BE IPP (1/2)

IPP25,904 MW

ONGOING PROCUREMENT PROCESSNo Type Location Cap (MW) Proc. Method1 PLTU Jawa-1 (Exp. Cirebon) / West Java 1 x 1000 Dir. Appointment

2 PLTA Hasang (FTP2) / North Sumatera 40 Dir. Appointment

3 PLTA Malea/ South Sulawesi 90 Dir. Appointment

4 PLTU Jeneponto-2 (Exp Jeneponto) / South Sulawesi 2 x 112,5 Dir. Appointment

5 PLTB Samas / DIY 50 Dir. Appointment

6 PLTA Meurebo/Aceh 56 Dir. Appointment

7 PLTA Merangin/Jambi 350 Dir. Appointment

8 PLTU Sumsel 6 (Exp Sp Belimbing) 2 x 300 Dir. Appointment

9 PLTA Karangkates & Kesamben 137 Dir. Appointment

10 PLTU Jawa – 5 (FTP 2) / Banten 2 x 1000 Dir. Selection

11 PLTU Kalbar-1 / Kalimantan Barat 2 x 100 Open Tender

12 PLTU Kendari 3 / South East Sulawesi 2 x 50 Open Tender

13 PLTU Sumsel 9/ South Sumatera 2 x 600 Open Tender

14 PLTU Sumsel 10/ South Sumatera 1 x 600 Open Tender

15 PLTU Sumbagsel – 1 MT/South Sumatera 2 x 150 Open Tender

16 PLTU Meulaboh 3 & 4/Aceh 2 x 200 Open Tender

17 PLTU Bengkulu/Bengkulu 2 x 100 Open Tender

18 PLTU Sulbagut 1/ Gorontalo 2 x 50 Open Tender

19 PLTU Sumsel-1 MT/ South Sumatera 2 x 300 Open Tender

20 PLTG Bangka Peaker/ Bangka Belitung 100 Open Tender

21 PLTU Jawa-7/Banten 2 x 1000 Open Tender

PLANNED• Direct Appointment• Tender

There are potentials for companies to be investor and/or the EPC contractors for the projects with winning bidders.

Source: (RUPTL 2015-2024/MEMR Decree No. 0074 K/21/MEM/2015)

Contact Person:IPP Procurement Division (PT PLN)P: +62217227049/ +62217251511E: [email protected]

35

Potential 25,904 MW OUT OF 35,000 MW IS PLANNED TO BE IPP (2/2)

IPP25,904 MW

PLANNED – DIRECT APPOINTMENTNo Type Location Cap (MW) Proc. Method1 PLTG/U Senipah Exp. (ST)/ East Kalimantan 1 x 35 Dir. Appointment2 PLTU Kaltim 4 (Exp 2 Embalut) / East Kalimantan 2 x 100 Dir. Appointment3 PLTU Jawa – 4 (Exp. Tj Jati B)/ Central Java 2 x 1000 Dir. Appointment4 PLTU Sulbagut – 3 (Exp. Molotabu)/ Gorontalo 2 x 50 Dir. Appointment5 PLTA Wai Tina / Maluku 12 Dir. Appointment6 PLTA Sidikalang – 1/ North Sumatera 15 Dir. Appointment7 PLTA Tabulahan / West Sulawesi 20 Dir. Appointment8 PLTA Masupu/West Sulawesi 36 Dir. Appointment9 PLTA Salu Uro/ South Sulawesi 95 Dir. Appointment10 PLTU Sumsel-7 (Exp. Sumsel – 5)/ South Sumatera 1 x 300 Dir. Appointment11 PLTU Jawa-8 (Exp. Cilacap)/ Central Java 1 x 1000 Dir. Appointment12 PLTA Kalaena – 1 / South Sulawesi 54 Dir. Appointment13 PLTA Paleleng / South Sulawesi 40 Dir. Appointment14 PLTA Poso 1 / Central Sulawesi 120 Dir. Appointment15 PLTU Jawa-9 (Exp. Banten)/ Banten 1 x 600 Dir. Appointment16 PLTA Air Putih / West Sumatera 21 Dir. Appointment

PLANNED• Direct Appointment

There are potentials for companies to be the EPC contractors for the projects with winning bidders.

Source: (RUPTL 2015-2024/MEMR Decree No. 0074 K/21/MEM/2015)

Contact Person:IPP Procurement Division (PT PLN)P: +62217227049/ +62217251511E: [email protected]

36

Light Rail Transit (LRT) Jakarta, Bogor, Depok, BekasiUSD 1.49 Billion (Phase IA, IB, II)

Location

AssignedSOE


DKI Jakarta, Bogor, Depok, Bekasi

36 months since construction begins (~2018)

PT Adhi Karya (local SOE)


Latest Status


*) USD 1 = IDR 14,000

• The project is assigned to SOE (PT Adhi Karya) which will dothe construction. The operation will be open for tender forprivate sector (potentially JV with PT KAI).

• Opportunities:• Direct lending to PT Adhi Karya or PT KAI

• The Presidential Reg. for assigning PT Adhi Karya hasbeen signed in August 2015.

• This project does not require significant land acquisitiondue to its elevated design, hence this will potentiallyaccelerate the project completion.

• Reduce traffic congestion by reducing number of private cars usage, increase Jakarta people mobility and provide better public transportation

• Support Asian Games 2018 with approx. 34 participating countries

• Feeder railway to Mass Rapid Transit Jakarta (2018)


Contact Person: Kiki (PT Adhi Karya)P: +628118451604/ E: [email protected]

37

Light Rail Transit (LRT) Palembang

~USD 550 Million

Location

AssignedSOE


Palembang, South Sumatra

2018 (supporting public transportation for Asian Games 2018)

Not yet determined




*) USD 1 = IDR 14,000

• Reduce traffic congestion by reducing number of private cars usage and provide better public transportation

• Support Asian Games 2018 with approx. 34 participating countries

• Potential assignment to an SOE which will do theconstruction. The operation potentially will be assigned to PTKAI (Kereta Api Indonesia/ Indonesia Railway)

• Opportunities:• Direct lending to the construction SOE or PT KAI

• The Presidential Reg. as the legal basis for this project isbeing drafted to accommodate the funding schemedetermination, with potential assignment to an SOE forconstruction and PT KAI (Indonesia Railway) for O&M.

• The South Sumatra Provincial Government had completedthe feasibility study and required further support for fundingscheme determination.

• The land acquisition progress has reached ~90%

• This project is expected to be operated in August 2018 tosupport Asian Games 2018

Latest Status

Contact Person: Adnan (Regional Investment Coordinating Board)P: +628127827321/ E: [email protected] (Romli)

38

Jakarta-Bogor-Depok-Tangerang-Bekasi Circular Line

~USD 671.69 Million (excluding station-building and other passenger services)

Location

AssignedSOE


DKI Jakarta, Bogor, Depok, Bekasi

2018

PT Kereta Api Indonesia




*) USD 1 = IDR 14,000

• The project will be financed by the appointed SOE, which is PT KAI.

• Opportunity:• Direct lending to PT Kereta Api Indonesia

• Increase electric railway frequency and reduce traffic congestion caused by crossing railway

• Provide more access to/from suburban areas and reduce traffic congestion in Jakarta City by reducing number of private cars usage

• PT Kereta Api Indonesia (KAI) is the assigned SOE todeliver the project as stipulated in Presidential Reg. No.83/2011.

• PT KAI is assigned to do construction as well as operationand management of the Circular Line.

• The new detailed project action plan will be prepared toaccommodate the adjusted project timeline to reach theCOD target

Latest Status

Contact Person: PT Kereta Api IndonesiaP: +62224230031/ E: [email protected]

39

Serang – Panimbang Toll Road

USD 848.46 Million

Location



Serang – Panimbang, Banten

2018

Indonesia Toll Road Authority (BPJT)




*) USD 1 = IDR 14,000

• The potential project scheme is Public Private Partnership(PPP), subject to the Value for Money analysis which will befinished in December 2015.

• Opportunity:• Investor for the potential PPP scheme• EPC for construction

The 83.6 km toll road provides access to Special Economic Zone (SEZ) Tanjung Lesung and future airport development in Panimbang which can reduce logistics cost from Pandeglangindustrial area to seaport in Jakarta.

• Ministry of Public Works and Public Housing is currentlyfinalizing the route alignment and preparing the landplanning document for land acquisition

• The Location Determination by the Banten Governor istargeted to be issued in October 2015

• PT Banten West Java, as the developer of SEZ TanjungLesung, has prepared the agreement between PT BWJ andMinistry of Public Works and Public Housing (MPWPH) asthe legal basis to start the first 25 KMs land acquisitionprocess

Latest Status

Contact Person: Roy (Indonesia Toll Road Authority)P: +628164217600/ E: [email protected]

40

DKI Jakarta Inner City Toll Road

USD 2.91 Billion

Location


Pedongkelan Grogol

Boulevard Barat

CakungPramuka Selatan

Tanjung BaratPancoran Selatan

Slipi


DKI Jakarta

Phase I: 2018; Phase II: 2021; Phase III: 2022

DKI Jakarta Provincial Government




*) USD 1 = IDR 14,000

• The project is planned to use Build-Operate-Transfer schemewith funding from SOE (PT Jakarta Toll Road Development)and DKI Jakarta Provincial Government.

• Opportunities:• Loan to DKI Jakarta Provincial Government• Direct lending to PT Jakarta Toll Road Development

• The 69.77 km toll road increases connectivity and shorten travel time. The concessions is given for 45 years.

• The environment analysis (AMDAL) recommendation hasbeen given to PT Jakarta Toll Road Development on 21January 2013

• The Toll Road Concession Agreement (PPJT) amongIndonesia Toll Road Authority (BPJT), PT Jakarta TollRoad Development and DKI Jakarta ProvincialGovernment has been signed on 25 July 2014. The CAaccommodates the incorporation of Busway and financialclose in two phases (Phase I for Semanan – Sunter – PuloGebang and Phase II for Duri Pulo – Kampung Melayu –Kemayoran, Ulujami – Tanah Abang and Pasar Minggu –Casablanca).

• The land acquisition has not started yet.

Latest Status


41

Cileunyi – Sumedang – Dawuan (Cisumdawu) Toll Road

USD 418 Million

Location



West Java

2018 (partial)





*) USD 1 = IDR 14,000

• The project scheme is Public Private Partnership (PPP). Pre-Qualification will be conducted in Q2 2016.

• Opportunities:• Investor for the potential PPP scheme.• Direct lending to the winning bidder.

The 58.5 km toll road provides access for transporting agricultural and manufacturing goods from Cisumdawu to the port of Cirebon Municipal. The concession period is 35 years.• Land acquisition progress has reached 28.18% in total.

Section I (Cileunyi – Tanjungsari): 27.41 %, Section II(Tanjungsari-Sumedang): 80.39%, Section III (Sumedang– Cimalaka) : 45.68%, Section IV (Cimalaka-Legok):0%, Section V (Legok – Ujung Jaya): 0% and Section VI(Ujung Jaya – Kertajati): 0%.

• Construction progress: Section I (Cileunyi – Tanjungsari)and Section II (Tanjungsari-Sumedang) have reached8.06% and 3.74% respectively.

Latest Status


42

Pemalang – Batang (Trans Java) Toll Road

USD 285.28 Million

Location



Central Java

2018





*) USD 1 = IDR 14,000

• The project is planned to use Build-Operate-Transfer schemewith funding from PT Pemalang Batang Toll Road.

• Opportunities:• Loan to PT Pemalang Batang Toll Road.• EPC for construction.

The 39.2 km toll road increases connectivity and shorten travel time across Java island. The concession is given for 45 years.• Min. of Public Works and Public Housing has sent the

location determination renewal to Head of East Java andMin. of Agrarian Regional Office.

• The Toll Road Development Agreement (PPJT) wassigned on 21 July 2006 with amendment on 7 July 2011.

• The land acquisition progress has reached 1.86% in total.Section I (Pemalang – Pekalongan): 2.84% and Section II(Pekalongan – Batang) is in socialization and inventoryphase of land acquisition process.

Latest Status


43

Balikpapan – Samarinda Toll Road

USD 814 Million

Location



East Kalimantan

August 2018 (for the section constructed by the Government)





*) USD 1 = IDR 14,000

• The project is using Public Private Partnership scheme(Supported Built-Operate-Transfer) with partial constructionsupport for several sections.

• Opportunity:• Financing for the winning investor for PPP sections

which is currently being tendered.

• The 99 km toll road will support the growth of industrial zones for palm oil, coal, oil & gas, and agriculture in the cities of Balikpapan and Samarinda.

• Prequalification (PQ) for Public-Private Partnership (PPP)scheme has started since 31 July 2015. The deadline forPQ proposal submission will be on 15 September 2015.

• East Kalimantan Provincial Government has sent a letter toBina Marga (Ministry of Public Works and Public Housing)cofirming that the land acquisition has reached 75%.

• As of 7 September 2015, the total of 86% of land has beenacquired. In Samarinda city, 62% of land has been acquiredand in Kutai regency, 82% of land has been acquired.

Latest Status


44

Manado – Bitung Toll Road

USD 278 Million

Location



North Sulawesi

2018





*) USD 1 = IDR 14,000

• The project is using Public Private Partnership scheme(Supported Built-Operate-Transfer) with partial constructionsupport for several sections.

• Opportunity:• Financing for the winning investor for PPP sections

which is currently being tendered.

• The 34 km toll road will support the traffic between Manado and Bitung, encourage tourism and economic growth, and become the main access to Bitung Seaport and Special Economic Zone.• Prequalification (PQ) for Public-Private Partnership (PPP)

section has started since 31 July 2015. The deadline for PQproposal submission will be on 15 September 2015.

• For Section 1 (Manado – Airmadidi), the land acquisition hasreached 90.16%. The land acquisition for Section 2(Airmadidi – Bitung) has commenced in August 2015 andtargeted to finish in December 2015.

Latest Status


45

Trans Sumatera (First Four Segments) Toll Road

USD 2.5 Billion

Location

AssignedSOE


Medan – Binjai, Palembang –Indralaya, Pekanbaru –Dumai, Bakauheni – TerbanggiBesar

2016 (Medan – Binjai)

PT Hutama Karya




*) USD 1 = IDR 14,000

• The project is assigned to SOE PT Hutama Karya which willfinance, construct and operate (end-to-end project delivery).

• Opportunities:• Direct lending to PT Hutama Karya

The 304 km (4 sections) toll road increases connectivity, reduce logistics cost and induce industry growth in Sumatera Island.

• The Toll Road Concession Agreement (PPJT) for Medan –Binjai was signed on 27 March 2015 and for Palembang –Indralaya segment and Bakauheni – Terbanggi Besar on 4September 2015.

• Parallel signing of the Service Level Agreement (SLA) onAcceleration of the Development of Toll Road in Sumaterais targeted to be done in October 2015.

• There will be a revision of Presidential Reg. No. 100/2014on the assignment to PT Hutama Karya to accommodatefour additional segments which are Terbanggi Besar-Pematang Panggang, Pematang Panggang-KayuAgung, Palembang – Tanjung Api-Api and Kisaran –Tebing Tinggi.

Latest Status

Contact Person: Anis (PT Hutama Karya)P: +6287886425819/ E: [email protected]

46

Kertajati Airport

USD 214 Million

Location



West Java

2018

West Java Regional Government




*) USD 1 = IDR 14,000

• The land side is funded by Regional Budget via PT BIJB. The funding for air side is not yet determined.

• Opportunity:• Loan or direct lending for land side development to

PT BIJB

Kertajati Airport is a new international airport development which is targeted to serve 12 million passenger/day (Phase 1) and 21 passenger/day (Phase 2)

• Feasibility study and Detail Engineering Design (DED) havebeen concluded and the project is already included inSpatial Planning.

• Environmental Permit (AMDAL) document is in thefinalization process and 80% of land has been acquired.

• Land side construction is funded by Regional Budget andhas completed the land clearing process. The regionalbudget was provided via capital injection to PT BIJB (StateOwned Enterprise) which is constructing the land side.

• Financing scheme for airside has not been decided yet.

Latest Status

Contact Person: Jenal Kaludin (PT Bandar Udara Internasional Jawa Barat/BIJB)P: +628159102199/ E: [email protected]

47

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