presentation on german and indonesia business forum at bappenas, jakarta 11 february 2012

7/29/2019 Presentation on German and Indonesia Business Forum at Bappenas, Jakarta 11 February 2012

1/16

MP3EI: THE WAY WE ARE

Presented In:

German-Indonesia Business Meeting

@Bappenas

Jakarta, 11 Feburary 2013

By: Eddy Satriya

Head of International Cooperation Division

Secretariat of KPE3

COMMITTEE FOR ACCELERATION AND EXPANSION OF INDONESIA ECONOMICDEVELOPMENT

KP3EI

1


2/16

Before, Now, and Then!!!(China , German, America, and Indonesia)

2

China constructs Bridges

What can Indonesia do???

America exports Chopsticks

German sets up automobile trend


3/16

Rich Natural Resourcesmost of them are still intact to be processed into higher VA products

Natural Gas Thermal Coal Geothermal Palm Oil Cocoa Tin Nickel BauxiteFrequency

Spectrum

KeyMetrics

About 165TCF of

reserves atproductionrate 3 TCF

pa

Worldsecondlargest

exporter

Home of40% ofworlds

resources(the largest

in the

world)

Worldslargest

exporter;>19 miltons per

year

At 770 thoutons/year,worlds 2nd

largestproducer

At 65 thoutons/year,worlds 2nd

largestproducer

Own 12%of worldsreserves

(4th largest)

Worlds 7thlargest

reserves;worlds 4th

largestproduction

700 MHzoutside

Java,Potential

arrangement for Java

area

2300-2360MHz urbannationwide

About 40% is assumedfeasible. Up to now, 1.200

MW has been developed.

Will be at least partiallyprocessed

domestically by 2013(new mining law:4/2009)

Abundant resources forgas-based energy and

petrochemical industries Not including Non-

Conventional Gases,from Coal Bed Methaneand Coal Gassification

3


4/16

4


5/16


6/16

148

10794

57

46

37

2826

17

Legislative

Demokrat

Golkar

PDI-P

PKS

PAN

PPP

PKB

Gerindra

Political Stability: the worlds third largest democracy

Appointed

Appointed

38%

Directly

elected

Directly

elected

62%

0%

20%

40%

60%

80%

100%

2002 2007 2009Source: World Bank, 2009

% of appointed local government heads vs. directly elected

In election year 2009, President wins

more than 60% votes from 176 million

registered voters

(election year 2009)

6


7/16

(New) DemocracyYES!

7

Just Recently (20 Sept2012)

An humble Major from

small city Solo in Central

Java, JOKO WIDODO

paired with AHOK from

Belitung (Sumatera),

unsurprisingly won the

most prestigious position

as DKI Jaya - Jakarta

governors.Courtesy of Antara


8/16

Indonesia Economic Corridors: Masterplan

Basically MP3EI is based on these strategicinitiatives:

1. Encourage a large scale investment

realization in 22 main economic

activities

2. Synchronization of national action plan

to revitalize the real sector

performance3. The development of center of

excellence in 6 (six) economic corridors

Main strategy of MP3EI:

1. Economic potential development

through economic corridor

2. Strengthening the national connectivity3. Strengthening national human

resources capability and science and

technology

8

Perpres 32/2011 27 May 201


9/16

MP3EI aims at accelerating Indonesias economic transformation through

cross-entity synergy and collaboration

2010GDP ~ US$ 700 B

GDP/c US$ 3,005

17th major nation

2014

GDP: US$ ~ 1,2T

GDP/c:

US$ ~ 4.800

14 major

economy

2025GDP: US$ 3,8

4,5T

GDP/c:

13.000 16.100

US$

12 high income

country

1

2

3

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

SECRETARIAT

Java

EC

Team

Sumatr

a

EC*

Team

Sulawe

si

EC

Team

Kalimant

an

EC

Team

Bali-NT

EC

Team

Papua-

Kep.Maluku

EC Team

REGULATION

Working Group

CONNECTIVITY

Working GroupHR & TECH

Working Group

Note

*EC

Economic

Corridor

9


10/16

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

19,40,1

Sumatera

15,5

47,2

61,3

35,0

4,8 0,0

2,6

56,9

0,0

1,7 0,00,2

0,3

Bali-NT

0,512,1

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)

10


11/16

Project/ Investor Bottleneck issues

Sei Mangkei Industrial Estate Delay in land acquisition process dueto 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 issuedby 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 waunlocked 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 beendiscussed 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)

11


12/16

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

KALIMANTANProduction center of mining and national

energy source

SULAWESIProduction 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 Indonesias total export. Lorealhas 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 KalimantanINTERNATIONAL HUBPORT 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.

12


13/16

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

Project TitleInvestment Value

(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 201416. PLTU Takalar 2 x 100 MW 2,800 2014

13


14/16

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

Road and Toll Road

Project TitleInvestment

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

Area688 2015

12. Lubuk Pakam Tebing Tinggi Toll

Road3,541 2015

Water and Sanitation

Project Title InvestmentValue (IDR Bio) Target GB

13. SPAM Bali Selatan 2,727

2013 (SPAM

Penet)

2016 (SPAM

Ayung)

Seaport


Value (IDR Bio)

Target GB

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 Road35,361 2017

Railway



18. Madiun - Surabaya Double Track

Railway3,300 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

14


15/16

REPUBLIC Of INDONESIA

COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

Eddy SatriyaHead ofInternational Cooperation Division,

Secretariat of KP3EI

Jalan Medan Merdeka Barat No. 7,

Jakarta Pusat - Indonesia

Phone: +62 21 34832611; Fax: +62 21 34832609

email: [email protected] @EddySatriya

15
mailto:[email protected]:[email protected]


16/16

Recent publications are available on:eddysatriya.wordpress.com

kolom.pacific.net.id

Eddy Satriya 1989 :Graduated from Bandung Institute of Technology

(Telecommunication Engineering)

1997 :Graduated from University of Connecticut (MA in Economics)

1989-90: Program Management Consultancy (PMC-IV) forTelecommunication Development

1990-2005: Working in Bappenas (The National Development PlanningAgency).

1995 : Secretary to Board of Commissioners of PT.Telkomsel

1997- present: Visiting Lecturer in University of Indonesia, University ofPelita Harapan, and ITB

2002-present : Actively writes various article and column in nationalpapers and magazines.

2005 (Dec)-present: Working in Coordinating Ministry forEconomics Affairs

2011 - Present: Head of International Cooperation Division,

Secretariat of KP3EI

Contact:

[email protected]

62.21.3511466 t

62.21.3511464 f

16

presentation on german and indonesia business forum at bappenas, jakarta 11 february 2012

Documents