indonesia: ppp infrastructure investment forum dr. … ppp infrastructure investment forum dr. ir....

Indonesia: PPP Infrastructure Investment Forum

Dr. Ir. Luky Eko Wuryanto Deputy Minister for Infrastructure & Regional Planning, Coordinating Ministry of Economic Affairs Head, KP3EI Secretariat 22 January 2013

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MP3EI aims to accelerate Indonesia’s economic transformation through cross-entity synergy and collaboration

2010 PDB ~ US$ 700 B GDP US$ 3,005 17th major nation

2014 PDB: US$ ~ 1,2 T GDP: US$ ~ 4.800 14 major economy

2025 PDB: US$ 3,8 – 4,5T GDP: 13.000 – 16.100 US$ 12 high income country

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Developing economic potential through economic corridors

Strengthening national human resources capability and science & technology

Strengthening national connectivity

• Coordinating Ministry of Economic Affairs, National Development and Planning Agency, Ministry of Finance, Ministry of Public Works, Ministry of Transportation, Ministry of Forestry, Ministry of Energy and Mineral Resources (other relevant Ministries), Governors, Chamber of Commerce leaders, experts, business players

• 9 Working Groups: 3 Cross-sector Working Groups (Regulation, Connectivity, HR & Tech) and 6 Working Groups of Economic Corridors)

In creating economic transformation for Indonesia, MP3EI employs three pillars…

… and revolves in the cross-entity efforts to ensure sound projects coordination, consisting of:

Chairman : President

Vice Chairman: Vice President

DAILY IMPLEMENTATION TEAM

Chairman: Coordinating Minister of Economic Affair

Vice Chairman 1: Minister of National Dev Planning

Agency

Vice Chairman 2: Chairman of National Economic

Committee SECRETAR

IAT

Java

EC

Team

Sumat

ra

EC*

Team

Sulaw

esi

EC

Team

Kaliman

tan

EC

Team

Bali-

NT

EC

Team

Papua-

Kep.Maluku

EC Team

REGULATION

Working Group

CONNECTIVITY

Working Group HR & TECH

Working Group

Note

*EC

Economic

Corridor

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MP3EI infrastructure project offers potential opportunity of ~USD 64 billion for private sector participation

0

50

100

150

200

250

300

0,3

Jawa

48,4

50,5

0,1

170,7

19,4 0,1

Sumatera

15,5

47,2

61,3

35,0

4,8 0,0

2,6

56,9 0,0

1,7 0,0 0,2

0,3

Bali-NT

0,5 12,1

0,1

2,4

9,7

0,1

Sulawesi

4,6

0,0

1,0

19,8

0,2

Kalimantan

7,7

30,0 6,9

11,9

Papua-Kep.Maluku

Funding Gap

599

(28%)

APBN

152

(7%)

PPP

400

(19%)

SOE

536

(25%)

27%

8%

Funding Gap (614)

41%

Mixed Fund (358)

24%

Private (402)

SOE (16)

1% APBN (121)

Seaport

Railway

Road & Bridges

Energy

Airport

Water, logistic

Funding gap calculation based on: • MP3EI Database per 31 August 2012 (477 Projects) • Funding gap formula: Investment value – (allocated budget from APBN + SOE). Private sector funded projects are assumed 100% fully covered. • ICT sector is not included in the calculation as the projects list still under progress of validation • Energy funding gap requires further validation with PLN

MP3EI Infastructure Project Funding Source (Rp Trilion*): MP3EI Infrastructure Project Funding Gap Identified (IDR Trillion)

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Project/ Investor Bottleneck issues

▪ Sei Mangkei Industrial Estate ▪ Delay in land acquisition process due to delay in the issuance of Provincial Spatial Planning State Law (Perda RTRWP)

▪ Infrastructure availability in time of the investment (Kuala Tanjung seaport expansion, road, railway and Kuala Namu airport)

▪ Central Java IPP ▪ Location permit has not been issued by local government due to different interpretations of the power plant

▪ Requires acceleration for land acquisition and certification

▪ Bangko Tengah Railway for coal transportation

▪ Railway area overlaps with forest area

▪ Delay in issuance of IPPKH (Forest land area use permit)

PTPN III

Debottlenecking effort and result

▪ Enhance coordination between line ministries/agencies, other government entities and stakeholders, which resulted in acceleration of RTRW finalization

▪ KP3EI ensures additional budget is provided and allocated to support infrastructure projects implementation in timely manner

▪ The location permit that was stuck for 20 months was unlocked in 3 months following KP3EI involvement

▪ KP3EI continues support of de-bottlenecking for land acquisition process to reach financial close by Oct 2013

▪ Coordination is conducted up to Ministrial level, resulted in clearance of dispute settlement

▪ KP3EI facilitated the provision of ~9.881 ha forest area to be used by PT Bukit Asam

▪ Jakarta MRT ▪ Jakarta MRT project has been discussed for ~20 years with no significant progress, while financial loss due to traffic has reached IDR 12.8 T in 2012

▪ GOI encouraged Local Government to proceed with the plan as per initial timeline ▪ The recent development is that Central

Government accelerating their support and plans to increase Central Government funding portion from the current 42% to >48% for MRT project

Samples of top down initiatives to debottleneck MP3EI infrastructure development facilitated by KP3EI (Secretariat of MP3EI program)

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In addition to debottlenecking initiatives, KP3EI is currently leading the MP3EI priority project screening initiative by emphasizing on enablers for production centers development

SUMATERA Production center of natural resource and

national energy source

KALIMANTAN Production center of mining and national

energy source

SULAWESI Production center of agriculture, plantation

and fisheries

JAWA Industrial and services

BALI-NUSA TENGGARA Tourism and livestock

PAPUA – KEP. MALUKU Natural resources

Karawang Industrial Area More than 7 industrial areas exporting 65% out of Indonesia’s total export. L’oreal has invested USD $ 1 billion, PT Toyota Astra Motor is in the middle of Rp 15 Trillions worth of plant construction.

Special Economic Zone Bitung and Palu Estimated investment interest of Rp 1.7 Trillion with potential GDP of Rp 13 Trillion

Nickel industry in Halmahera 3 companies interested in investing Rp 96.6 Trillions

CPO industry di East Kalimantan Existing 200 palm plantation companies and 42 CPO industries in East Kalimantan INTERNATIONAL HUB

PORT WEST INTERNATIONAL HUB PORT EAST

CPO industry in Sei Mangke PT Unilever Indonesia and PT Feroostat are investing USD $ 1 billions.

Tourism Industry in Lombok Number of tourists to Lombok increased 35% per year from 2010 to 2012. Mandalika potentially attract Rp 3 Trillions of investment and Sengigi attracts many foreign investors

Agricultural Industry in Papua (MIFEE) Potential investment of Rp 57 Trillions. Sugar industry is almost ready for operation in Merauke.

Coal industry in Central Kalimantan Potential production of USD $4.5 billion/year, existing production is USD $750 millions

Energy Intensive Industry in Nabire Potential PLTA Membramo of 14,000 MW is suitable to be the center of energy intensive industry, such as smelter, etc

Coal Industry in Southern Sumatera 39% national coal reserve is in southern Sumatera, with estimated 18,13 billion tons stock.

Production centers with high investment readiness require commitment from government in the form of infrastructure accelleration.

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Top 38 MP3EI Priority Projects with Groundbreaking target (max) in 2014

Road and Toll Road

Project Title Investment Value

(IDR Bio) Target GB

1. The Brigde of Balang Island 1,572 2014

Water and Sanitation


(IDR Bio) Target GB

2. SPAM Jatiluhur 1,890 2014 3. Jakarta Sewerage System 4,319 2014 4. DAM Raknamo and DAM Kolhua 1000 2014 5. SPAM Umbulan 2,042 2014

Seaport


(IDR Bio) Target GB

6. Makassar New Port N/A 2014

7. Kuala Tanjung Seaport 7,700 2014 8. Maloy Seaport 4,800 2014 9. Lembar Bay Seaport 390 2014 10. Sorong Seaport N/A 2014

Airport


(IDR Bio) Target GB

11. Construction of Kertajati Airport 1,125 2014

Railway


(IDR Bio) Target GB

12. Solo - Madiun Double Track Railway 1,800 2014

13. Medan – Kualanamu Double Track 980 2014

ICT


(IDR Bio) Target GB

14. Palapa Ring 2,800 2014

Energy


(IDR Bio) Target GB

15. PLTU Pangkalan Susu 2 x 200 MW 4,300 2014

16. PLTU Takalar 2 x 100 MW 2,800 2014

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Top 38 MP3EI Priority Projects with Groundbreaking target (max) in 2017

Road and Toll Road

Project Title Investment

Value (IDR Bio) Target GB

1. Palu Parigi Hub 1,000 2017 2. Balikpapan Samarinda Toll Road 11,400 2017 3. Manado - Bitung Toll Road 3,152 2017 4. Medan – Binjai Toll Road 2,560 2017 5. Palembang – Indralaya Toll Road 910 2017 6. Pekanbaru - Kandis – Dumai Toll Road 16,279 2017 7. Bakauheni - Terbanggi Besar Toll Road 8,447 2017

8. Tebing Tinggi - Kisaran - Rantau Prapat Toll Road

33,170 2017

9. Panimbang – Serang Toll Road 9,579 2016 10. Enarotali - Tiom Road 1,680 2016 11. Access Road for Purwakarta Industrial Area

688 2015

12. Lubuk Pakam – Tebing Tinggi Toll Road

3,541 2015

Water and Sanitation



13. SPAM Bali Selatan 2,727

2013 (SPAM Penet)

2016 (SPAM Ayung)

Seaport



14.Kuala Tanjung International Hub Port 60,000 2017 15. Bitung International Hub Port In calculation 2017 16. Cilamaya Port and Access Road 40,303 2017

Airport



17. Construction of Karawang Airport and Access Road

35,361 2017

Railway



18. Madiun - Surabaya Double Track Railway

3,300 2017

19. Construction of Railway Lane in Purukcahu-Bangkuang/Mangkatip-Batanjung, Central Kalimantan

20,000 2017

20. Makassar - Pare-Pare Railway 5,250 2017

Energy



21. PLTU Indramayu 4 (1 x 1000 MW) 16,500 2015 22. PLTU Asamasam 5-6 (2 x 100 MW) 3,200 2015

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3 MPA flagship projects are listed under the top 38 priority projects – GoI will provide full blown support to ensure project realization

Cilamaya port & access road • The port will serve as an international

port with 3.75 million TEUs to unload Tanjung Priok port’s burden

• KP3EI has assisted series of de-bottlenecking efforts to ensure project implementation in timely manner

Karawang Airport • The new airport is expected to

support the over-capacity Soekarno-Hatta Airport with its projection of 90 million pax capacity

• KP3EI will push the inclusion of project in national spatial planning

Jatiluhur Water Supply • The project of 5000 l/s

capacity will support water supply for Jakarta, Karawang, dan Bekasi regions

• The project is going to be accelerated with Ground Breaking target in 2014

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25 projects are listed as MPA project only, and

not listed both in MP3EI or PPP book

MPA

MP3EI

5 projects are listed in MPA, MP3EI,

and PPP book

PPP

2 projects are listed as MPA and

already being included in PPP book,

but not listed as MP3EI

13 projects are listed in MPA and MP3EI,

but not in PPP book

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1) MPA is a Comprehensive Infrastructure Development Plan of Jakarta Metropolitan Area for Year 2020

2) MP3EI is the Master Plan for Acceleration and Expansion on Indonesia’s Economic Development, to enable Indonesia to become one of the 10

major world economies by 2025

3) PPP book is a list of infrastructure projects offered to be financed through a Public-Private Partnership (PPP) scheme

MPA is an integral part of MP3EI and the GOI will provide support for implementation acceleration

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