INDONESIA TRANSPORTATION SECTOR OVERVIEW

Infrastructure Forum 4 December 2012

Den Haag

Bambang Susantono, Ph.D.

Vice Minister for Ministry of Transportation

Republic of Indonesia

Snapshots of the country

2

Indonesia Today and in 2030

16th largest economy in the world 9th largest economy in the world

45 million members of the consuming class

135 million members of the consuming class

53% population in cities producing

74% of GDP 71% population in cities producing

86% of GDP

55 million skilled workers 113 million skilled workers needed

$ 0.5 trillion market opportunity in consumer services, agriculture and fisheries, resources and education

$ 1.8 trillion market opportunity in consumer services, agriculture and fisheries, resources and education

Source: McKinsey Global Institute

3 3

GDP and urbanization pattern in the future

86 % GDP comes from

Urban Areas and 63% from midsize

cities

4

5

Indonesia GDP growth 2010 - 2030

More than just population size ...

6

7

The World Embrace Indonesia Performance

Indonesia to be the 4th largest economy in 2050

8

World’s 10 largest economies, 2010 (USD Tn, PPP) World’s 10 largest economies, 2050 (USD Tn, PPP)

2012 – World’s 15th

(USD 1,12 Tn, PPP)

Breakthrough of MP3EI

9

Master Plan Acceleration and Expansion of Indonesia Economic Development (MP3EI) is

intended to accelerate and foster economic development across the nation through 6 (six)

economic development corridors. This master plan implements the spirit of “not business as

usual”.

Source: MP3EI, 2011

MP3EI Vision

MAIN STRATEGY

ECONOMIC CORRIDORS DEVELOPMENT

STRENGTHENING THE NATIONAL CONNECTIVITY

STRENGTHENING HR CAPABILITY AND SCI - TECH

.... THE ECONOMIC MASTERPLAN

10

Currently, indicated MP3EI investments are ~ Rp. 4,930 T (USD 500 billion)

including ~ Rp. 2,373 T (USD 250 billion) for infrastructure development

Indicated MP3EI investment (Rp T)* Indicated Infrastructure investment (Rp T)*

Jawa

1.460

Sumatera

1.133

Total

4.930

Papua

-

Maluku

604

Bali -

NT

208

Sulawesi

416

Kalimantan

1.109

Total

2.373

Papua

-

Maluku

78 156

Sulawesi Bali -

NT

Sumatera

201

577

Kalimantan

205

Jawa

1.156

* As of April 2012

11 11

12

251

194

170

162

Infrastructure

Realization 39.6

Planned 46.7

Real Sector

56 projects 58 projects

50 projects 49 projects

114 projects

99 projects

(Up to July 2012)

305

89

65

51

41.1 Planned

Infrastructure

15.5

Real Sector

Realization

39

projects

16 projects

27 projects

9 projects

55 projects

36 projects

In billion

USD

In billion

USD

27.8 18.8

21.6 18

33.9 7.2

9.8 5.7

Implementation So Far (After 1 Year)

Indonesia offers huge investment opportunity:

Palm Oil Industry

13

Sei Mangke (Medan,

North Sumatera)

Sei Mangkei Special Economic Zone (SEZ) provide various

opportunities for investment

Regulated under the Government Law No 29/2012

There are three phase of development in Sei

Mangkei SEZ:

1. Develop 104 Ha Area

2. Expand to 640 Ha; (principal permit already issued,

currently waiting for the Right to Build permit)

3. Developing its area to total 2002,77 Ha

There are three investor already commited:

1. PT Sinergi Oleo Nusantara (USD 415 Million on

biodiesel – bCarotene integrated – industry)

2. PT Cipta Buana Utama Mandiri (Rp 0,4 T on fertilizer

industry)

3. PT Unilever Indonesia (Rp 1,2 T on oleochemicals

industry)

Several advantage of Sei Mangkei SEZ

1. 40 km to the Kuala Tanjung Port . Under the

MP3EI program, this port will be developed to a

global hub port.

2. Nearby the “Gunung Bayu – Petlanaan Station”

railway track

3. Already produced 30 Ton / hour of Fresh Fruit

Bunches (FFB) since 1997

4. Abundance in water supply. Water are supplied

from the Bah Bolon Rover( water debit 37,3

m3/second)

5. Nearby to several Large Palm Oil Plantations

(70 km radius):

1. PTPN III = 165 Ton FFB/hour

2. PTPN IV = ± 300 Ton FFB/hour

3. Private = ± 104 Ton FFB / hour

14

Sei Mangkei SEZ will be supported by infrastructure

development

There 18 infrastructure projects related with MP3EI

which will support Sei Mangkei SEZ ... Examples:

699

Railway

39

Seaport Energy

4,148

Road and Bridge

91

5,644

Energy

10,621

Total

2 projects

4 projects

10 projects

1 project

1 project 18

projects

Rp Billion Railway Plan

Road Plan

15 15

Transport Infrastructure Investment Needs in Economic Corridors

16

Sumatera EC (USD 9,279 Million):

• Railway: USD 7,826 Million • Port: USD 1,006 Million • Airport: USD 447 Million

Kalimantan EC (USD 5,366 Million):

• Railway: USD 3,913 Million • Port: USD 1,118 Million • Airport: USD 335 Million

Sulawesi EC (USD 671 Million):

• Port: USD 671 Million

Bali - Nusa Tenggara EC (USD 1,677 Million):

• Railway: USD 1,342 Million • Airport: USD 335 Million

Java EC (USD 18,558 Million):

• Railway: USD.11,738 Million • Port: USD 5,031 Million

• Airport: USD 1,789 Million

Papua-Kep. Maluku EC (USD 6,618 Million) :

• Port: USD 6,596 Million • Airport: USD 22 Million

Sumatera

Economic

Corridor

Kalimantan

Economic

Corridor

Sulawesi

Economic

Corridor

Java Economic

Corridor Bali Nusa Tenggara

Economic Corridor

Papua – Kep.

Maluku Economic

Corridor

Source : MP3EI, 2011

Acceleration of Transport Infrastructure Development

17

MP3EI Transport Infrastructure

No Infrastructure Investment Need (USD Million)

Est. # of Projects

1 Ports and Inland Waterways

13,080 92

2 Airports 3,577 14

3 Railways 36,445 25

Total 53,102 131

Public

Infrastructure

Private Infrastructure

(Private Purpose)

Non -Cost Recovery Project

Cost Recovery Project

PPP

SOE Special Asssignment

•State Budget •Local Budget

Tender / Right To Match •Law 23/2007 on Railway •Law 17/2008 on Shipping •Law1/2009 on Aviation •GR 67/05 •GR 13/10 •GR 56/11

Presidential Regulation on SOE Special Assignment

•Special Airports •Special Ports, Special Terminals •Special Railways

Licencing

Private Sector Involvement Is Made Possible through Regulatory Reform in Transport Sector

18

Previous Regulations New Regulations

• Overlapping roles of regulator,

operator and contracting

agency

• Monopolistic / Single Provider

• Limited access for Private

Sector

• Centralized

• More on supply approach

• Minimum access for the

Government Support

• Clear separation of role between

regulator, operator & contracting

agency

• Multi-operator

• Wider access for the involvement of

Private Sector

• Decentralized

• Combination of accessibility and

market-driven approaches

• Wider access for the Government

Support

Three Ways of Private Sectors Involvement in Transport Infrastructure Development

19

Investments in Transport Sector

Special Purpose Transport Infrastructure

SEZ/FTZ Transport Infrastructure

Public / Commercial Transport Infrastructure

• Infrastructure specially developed for the

purpose of a business entity and may

operate exclusively for the business

entity.

• Usually unsolicited, i.e. initially proposed

by the business entity (private sector)

• Ministry of Transportation reviews the

feasibility study and other technical

matters, including safety issues

• The investment procedure for the special

purpose transport is done through the

LICENCING (business licence, location

licence, construction licence, and

operation licence).

• Infrastructure to be used by

public and commercially

oriented (tariff applied)

• May be solicited (proposed

by the GoI) or unsolicited

• Ministry of Transport prepares

the project documents and

tender documents, including

feasibility study

• The business entity is chosen

through TENDER (in

accordance to Presidential

Regulation No. 56/2011)

• Infrastructure is located in the

Special Economic Zones (SEZ)

or in Free Trade Zones (FTZ)

• Several incentives such as

reduced tax rates

• More relaxed restrictions

(compared to the Negative

Investment List)

• More incentives and exceptions

for the projects in the Bounded

Zones (Kawasan Berikat)

• The investment procedure is

through simplified integrated

LICENCING from the FTZ/SEZ

administrators

Government had provided many endorsements and incentives in order to attract private invesments

Several government supports and incentives are in

place to attract more investors ......

Government supports and

incentives

Tax Holiday Facility

Viability Gap Fund

Geothermal Fund

Land Procurement Regulations

PPP Scheme and

Regulation

... Whilst the government is working to prepare the potential

infrastructure projects to be offered to the private sectors.

Geothermal Fund: reducing the investor risks during exploration activities

Presidential Regulation no. 71/2012: providing clear mechanism and duration of every stages in land acquisition process

Viability Gap Fund: government support to increase the financial feasibility for infrastructure projects. Some infrastructure sector may have this facility such as toll road, water sector, etc

Land Capping: government support to reduce the risk due to the unpredicted and unavoidable increasing land price

20 20

Recent amendment on Presidential Decree No. 67/2005

(Presidential Decrees No. 56/2011), had eased PPP from

straining regulations

There are several changes that have been made through PD No. 56 / 2011 ...

Permits unsolicited proposal

Easier tender process

Allows Ministry of Finance to give

guarantees through appointed

institutions

Allows SOE’s to become the

contracting agencies

... simultaneously supported with government programs

Project Development Facility: to fund feasibility studies. given as revolving fund to be repaid by winning bidder

Land Capping: To cover the risk of increasing cost of land acquisition above certain level.

Land Revolving Fund: Provide bridging finance for land acquisition

Guarantee Fund: provides guarantee for risks better covered by government

Viability Gap Fund: provides financial support in the form of grants, one tie or deferred, to make them commercially viable

21

Government have been vigorously providing support in every

step of PPP process

Project Development

Facility (PDF) will be used

by CAs to fund feasibility

studies, and is essential to

ensure initiation and

implementation of projects

– PDF given as

revolving fund to be

repaid by winning

bidder

Two types of Land Fund:

• Land Revolving Fund:

Provide bridging finance

for land acquisition

• Land Capping: Cover risk

of increasing cost of land

Guarantee fund provides

guarantee for risks better

covered by government

• e.g. political, price,

land acquisition delay

• Based on Perpres 78 /

2010 and Permenkeu

260/PMK.011/2010

• Takes part in financing a

commercially viable

project

– Can be as debt, equity

or credit

enhancement

guarantees

PT SMI (PT Sarana

Multistruktur Indonesia)

Managed by Government

Investment Unit (under Min.

Finance) and forwarded

through Toll Road

Regulatory Agency (under

Min. Public Works)

PT PII (PT Penjaminan

Infrastruktur Indonesia)

PT IIF (Indonesia

Infrastructure Fund), a

subsidiary under PT SMI

Land Fund Government Guarantee Infrastructure Fund

PDF (Project Development

Facility)

Providing Party

Objective

Preparation Bidding Implementation

Fiscal support given along PPP process

PT IIF

22 22

TRANSPORTATION SECTOR INVESTMENT CLIMATE

23

Opportunities in Air Transport Sector

24

• With a population of more than 240

million, and with major airports

handling more than 68 million

passengers in 2011, Indonesia

presents itself as an immense

aviation opportunity as one of the

fastest growing domestic air traffic

markets in the world.

• Domestic air passengers grew on

average 12.1% per year from 2006 to

2011, while international air

passengers grew 22.4% annually

within the same period.

• ASEAN Open Skies in 2015 will

further increase the demand of air

travels

Airline penetration levels

496

Population (m)

232 87 92 28 67 5

Source: Euromonitor

Indonesian Airports – Annual Domestic & International

Passengers 2006 to 2011

240

Source: DGCA, 2011

Emerging economies drive strong travel growth

25

• Worlds air transport double every 15 years and will double again in the next

15 years

• Indonesian air transport is forecast to double within 10 years Source: Airbus, 2012

Forecast for the Indonesian air transport sector

26 Source: Airbus, 2012

Over-capacity Problem at Indonesia Major Airports

27

Airport Existing pax.

(million/year) Exixting capa. (million/year)

Pax./capa. (%)

Medan 6.2 1 620.00

Pekanbaru 1.9 0.7 271.43

Tg. Pinang 0.15 0.1 150.00

Pontianak 1.5 0.875 171.43

Jakarta 51.5 22 234.10

Bangka 0.95 0.35 271.43

Jambi 0.8 0.25 320.00

Bandung 0.86 0.35 245.71

Palembang 2.1 1 210.00

Padang 1.8 1 180.00

Ngurah Rai 11.1 8 138.75

Surabaya 12 9 133.33

Sepinggan 5.1 1.4 364.29

Semarang 2 0.9 222.22

Banjarmasin 2.6 1.3 200.00

Kupang 0.93 0.26 357.69

Yogyakarta 3.7 1.1 336.36

Source: AP I & II, 2011 27

Airports Supporting MP3EI

28

• International airports to serve passengers and cargoes to other countries

• Domestic airports to become feeders for those international airports

Year 2020 International

Domestic

Year 2030 International

Domestic

Investment Schemes in The Airport Infrastructure Development

29

Airport Infrastructure Development

Existing Commercial Airports

Development

Greenfield

Airports

Non-Commercial Airports (small

airports, airstrips, etc.)

State Owned Enterprises

(Angkasa Pura I & II)

Public Private Partnership

(PPP) scheme

Government

Existing Commercial Airports Terminal Development

30 Source: AP I & II, 2011

Airport Existing

pax. Existing Capa.

Pax./Capa. Additional Capacity

Total capacity

Capacity expansion (percent) million/year million/year (percent) million/year million/year

Angkasa Pura 2

Kualanamu - Medan 6.2 1 620% 8 9 900%

St. Syarif Kasim II - Pekanbaru 1.9 0.7 271% 2.5 3.2 457%

RH. J Fisabilillah - Tg. Pinang 0.15 0.1 150% 1 1.1 1100%

Supadio - Pontianak 1.5 0.875 171% 3.2 4.0 466%

Soekarno Hatta - Jakarta 51.5 22 234% 40 62 282%

Depati Amir - Bangka 0.95 0.35 271% 1.3 1.65 471%

Sultan Thaha - Jambi 0.8 0.25 320% 1.5 1.75 700%

Husein Sastranegara - Bandung 0.86 0.35 246% 4 4.35 1243%

St. Mahmud Badarudin II - Palembang 2.1 1 210% 2.5 3.5 350%

Angkasa Pura 1

Ngurah Rai - Bali 11.1 8 139% 13 21 263%

Juanda - Surabaya 12 9 133% 4 13 144%

Sepinggan - Balikpapan 5.1 1.4 364% 10 11.4 814%

Ahmad Yani - Semarang 2 0.9 222% 3 3.5 389%

Syamsuddin Noor - Banjarmasin 2.6 1.3 200%

Eltari - Kupang 0.93 0.26 358%

Adi Sucipto - Yogyakarta 3.7 1.1 336%

Operating in 2012

Operating in 2013

Kualanamu Airport Bandung Airport Ngurah Rai Airport

Several Planned Greenfield Airports

31

Jakarta Multiple Airport

New Yogyakarta Airport New Bali Airport

New Non-Commercial Airport Development Plan

32

Muara Bungo

Bone

Morowali

Tojo Una2

Namniwel

Saumlaki Baru

Sinak Baru

Waghete Baru

Kuffar-Seram

Enggano

Tual Baru

Sumarorong

Waisai

Buntu Kunik

Medan Baru

Pekon Serai

Bawean Werur

Miangas

Muara Teweh

Kamanap

Moa

Segun

Operating in 2013

Operating in 2014

Operating in 2015

Total Budget: ±USD 224 million

Opportunities in Railway Transport Development

33

Source: National Railway Master Plan, 2010

Freight Access Rail to Port Development Plan

34

Network Development and Freight Access Rail to Port Services:

No Program Period

1 Tanjung Priok (DKI Jakarta) 2011-2013

2 Cirebon (West Java) 2011-2016

3 Tanjung Perak (East Java) 2011-2014

4 Tanjung Emas (Central Java) 2012-2015

5 Bojanegara (Banten) 2016-2018

Coal, Petrochemical Industrial Area

Metropolitan Jakarta

Petrochemical Industrial

Area

Metropolitan Surabaya

Food Manufacturing

Complex

Dockyard (biggest in Indonesia)

Legend

Operating rail

Built rail by 2030

Planned rail

Built High Speed Train (HST)

by 2020

Planned High Speed Train (HST)

Freight Access Rail to Port Development Plan

35

CPO

Rubber, CPO

CPO, Coal

No

. Program Period

1 Lhokseumawe (NAD) 2018-2020

2 Belawan (North Sumatra) 2011-2012

3 Tanjung Api-api (South Sumatra) 2018-2023

4 Dumai (Riau) 2019-2023

5 Teluk Bayur (West Sumatra) 2021-2025

6 Panjang (Lampung) 2018-2023

Network Development and Freight Access

Rail to Port Services:

Operating rail

Built rail by 2030

Planned rail

Muara Wahau – Bengalon Railway Development, East Kalimantan

36

Opportunities in Sea Transport Sector

37

Indonesia whose coastline extends to 54,716 km has waters in two-thirds of its

territory. Its sea transport is vital in supporting the economy and asserts a great need

in connecting its islands.

NTB

KENDARI

PONTIANAK

BITUNG

TEMBILAHAN

SORONG

JAYAPURA

TARAKAN

BONTANG

SAMARINDA

GORONTALO

TAYIN

TOLI TOLI

SANGKULIRANG

TANJUNG SELOR

SENGATA

BENGALON

BALIKPAPAN

DUMAI

MALAHAYATI

PALEMBANG

BIMA

BITUNG

TEMBILAHAN

TG. WANGI

Biringkasi

JAYAPURA

TARAKAN

BONTANG

SAMARINDA

KOTA BARU

GORONTALO

TAYIN

TOLI TOLI

SANGKULIRANG

TANJUNG SELOR

SENGATA

BENGALON

BALIKPAPAN

DUMAI

MALAHAYATI

PALEMBANG

DARWIN

BAGANSIAPIAPI

PEKANBARU

LEMBAR

BITUNG

TEMBILAHAN

Parepare

JAYAPURA

TARAKAN

BONTANG

SAMARINDA

GORONTALO

MUNTOK

PALU

TOLI TOLI

SANGKULIRANG

TANJUNG SELOR

SENGATA

BENGALON

BALIKPAPAN

DUMAI

MALAHAYATI

PALEMBANG

DARWIN

BAGANSIAPIAPI

PEKANBARU

KUPANG

TUAL

MAKASSAR

BITUNG

LAMPUNG

Tg. Pandan/Belitung

BATAM

TEMBILAHAN

JAYAPURA

Fa

kfa

k

TARAKAN

BONTANG

GORONTALO

Poso

TOLI TOLI

SANGKULIRANG

TANJUNG SELOR

SENGATA

BENGALON

BALIKPAPAN

BELAWAN

LHOKSEUMAWE

DUMAI

MALAHAYATI

PALEMBANG

DARWIN

BAGANSIAPIAPI

SIAK

MERAUKE

PANJANG

MALAYSIA

SIBOLGA

NUNUKAN

TG. PINANG

KUMAII

KETAPANG

Ende

BAWEAN

P. Simeulue

P. Banyak

Lahewa

Afulu

Solanakak Sirombu

Sehe Tl.Dalam

Tapak Tuan

P. TelloBoluta

SaeruSigologolo

Singapokna Sinaki

Sikabaluan SrilaguiM.Saibi Siberut

Saumanuk

Sioban

Berilau

BENGKULU

Letung

Tarempa

Midai

SINTETE

Serasan

SedanauRanai

Tambelan

P. Kerayan

Marabatuan

Maradapan

Masalembo

PULANG PISAUPegatan

Bahaur Maliku

Makalehi

LipangKawalusoMatutuang

Kawio

Marore

MiangasKaratung

KakorotanGemeEssang

RainisBeo Melonguane

LirungMangarang

Pehe

Biaro

Kolonedale

Ampana

Popolii

PAGIMANA

Bonerate

Jampea

Kayuadi

Selayar

Batu atas

Papalia

(P.Binongko)

Usuku(P.Tomia)Burunga (P.Kaledupa)

Banabungi

RahaMaligan

Sikeli

Boepinang

KolakaLarearea/

Sinjai

Watunoho

NaikliuWini

Attapupu

Maritaim

Wo

nre

li/

Kis

ar

Ndao

Sabu

Raijua

Mpokot

AMBONLeksula

Namrole Ulim

a/

P.A

mb

ala

u

Am

ah

ai

To

he

ru

Kobisonta/

Kobisadar

Bula

We

rina

ma

Ba

nd

a

Fafanlap

Waigama/

Misol

Ge

se

r

Go

rom

/

On

do

r

P.KesuiP. TiorKaimer

P.KurP. Toyando

Ela

t

SAUMLAKI

Tutu Kembong

Larat

P. Molu

Seira

Batu Goyang

Kalar kalar

Benjina

Dobo

Upisera

Ilwa

ki Le

tiM

oa

Lakor

Le

lan

g/

Ma

ha

lea

t

Te

pa

Ma

se

laK

roin

g

Ad

au

t

Am

ah

ai

Se

rua

Nila

Te

on

Be

ba

r/

Wu

lur

Ge

la

Sanana

Indari BesuiMafaWedaKayoa

Gita

MotiTifure

Mayau

Dama TobeloDaruba

Berebere

LolasitaWayamliBuli

PenitiBicoli

Wasilei

Gemia

Pomako

Wanam

Kimaam

Nabire

WarenBabo

Bintuni

MANOKWARI

SausaporBIAK

SeruiTeba

Sarmi

D. Rombebai

Trimuris

Kasonaweja

Koweda

Kaipuri

Poom

Sa

rib

i

We

rur

Are

fi

Meosmengkara

Teminabuan

KoridoJenggerbun

Miosbipondi

P. Mafia

Wapoga

Asiki

Gententiri

Ampera

Tanah merah

Bu

la

R - 1

Ket : Pelabuhan Pangkal Perintis

R - 5 R - 8

R - 10

R – 13

R - 14 R - 15 R - 24

R – 25

R - 28

R – 33

R - 35

Tl. Bayur

J

AYAPURA

R - 3

R - 4 R - 7

R - 6 R - 9

R - 12

R - 11

R - 16

R – 17

R - 18R - 19

R - 20

R – 21

R - 22

R - 23 R - 26

R - 27

R – 29

R - 30

R - 31R - 32

R - 34

R - 36

R – 37

R - 38

R - 39

R - 40

R – 41

R - 42

R - 43

R - 44

R – 45

R - 46

R - 47

SORONG

BIAKTERNATESAUMLAKI

TUAL

AMBONKUPANG

KENDARI

Makassar

Pagimana

Tahuna

BITUNG

Surabaya

P. Pisau

Kotabararu

Sintete

Tg.Pinang

Bengkulu

R - 2

MANOKWARI

R - 48R - 49R - 50R - 51R - 52R - 53R - 54R - 55R - 56R - 57R - 58

Ket : Trayek PT. PelniPELNI Routes

Pioneering Routes

Domestically, trade routes are vibrant and growing fast (Inter-island trade has been growing with 37% CAGR in the last 5 years)

38

Fast growing, vibrant domestic trade routes

= Selected major domestic goods routes (MT/yr)

Inter-island trade has increased ~5x from 638 Mn Ton

in 2006 to 3,153 Mn Ton in 2011

39 MT

70% CAGR

9 MT

18% CAGR

10 MT

36% CAGR

56 MT

35% CAGR

74 MT

40% CAGR

13 MT

85% CAGR

66 MT

6% CAGR

18 MT

27% CAGR

2 MT

70% CAGR

2 MT

96% CAGR

2 MT

52% CAGR

8 MT

73% CAGR

8 MT

2% CAGR

20 MT

50% CAGR

51 MT

66% CAGR

Note: Province to province origin-destination goods flow for all means of transportation (sea, air, land), CAGR 2006-2011 Source: OD Matrix - Ministry of Transportation 2006 and 2011

Container Traffic Projection in Major Ports in Indonesia, 2009-2030

39

TANJUNG PRIOK

21.239.900 TEUs

TANJUNG PERAK

9.444.700 TEUs

BELAWAN

4.810.400 TEUs

TANJUNG EMAS

3.114.600 TEUs

MAKASSAR

2.469.900 TEUs TELUK BAYUR

PEKANBARU

BATAM

PALEMBANG

PANJANG

PONTIANAK

BANJARMASIN

BALIKPAPAN

BITUNG

SORONG

JAYAPURA

Source: MoT, 2012

Port Development within the Economic Corridors

40

1. Sabang

2. Belawan

3. Dumai

4. Batam (Batu Ampar/

Sekupang/ Kabil/

Lobam)

5. Tg. Balai Karimun

6. Teluk Bayur

7. Tua Pejat

8. Palembang

9. Panjang

10. Bojonegara

11. Tg. Priok

12. Tg. Intan

13. Tg. Emas

14. Tg. Perak

SUMATERA : JAVA :

15. Benoa

16. Tenau Kupang

BALI – NUSA TENGGARA :

17. Pontianak

18. Balikpapan

19.Sampit

20. Banjarmasin

21. Mekar Putih

KALIMANTAN :

22. Makassar

23. Pantoloan

24. Bitung

SULAWESI :

25. Ambon

26. Ternate

27. Sorong

28. Jayapura

29. Merauke

PAPUA – MALUKU :

47 Designated Ports for ASEAN Connectivity (14 in Indonesia)

41 Source: JICA Study on Guidelines for Assessing Port Development Priorities 2009

: Indonesia’s Ports

BIDDING PROCESS

• Development of Cruise Terminal in Tanah Ampo

• Surabaya West Access Channel

PRIORITY PROJECTS

• Cilamaya Port Development Project

• Pelaihari Port Development Project

• Maloy Port Development Project

POTENTIAL PROJECTS

• Garongkong Port Development Project

• Bau-bau Port Development Project

• Luwuk (Tangkiang) Port Development Project

• Probolinggo Port Development Project

• Makassar New Port Development Project

PPP Projects in Port Sector

42

Optimization Shipping Services

43

Indonesia has 70 major ports functioning as commercial ports

However, restricted by the limited access draft and lack of proper port handling facilities, majority of these ports in Indonesia only serve by container vessels with carrying capacity of 300 TEUs to 500 TEUs and operate single loop shipping services

The development of an optimal East West Shipping corridor would reduce the transport cost, therefore unlock the economic growth for regions like Sumatera, Kalimantan, Sulawesi, and Papua

Current Domestic Shipping Network Optimal Domestic Shipping Corridor

Source: Drewry, 2012

Pendulum Nusantara: Reducing domestic transportation cost by building national container backbone

44

Batam

Belawan

Malahayati

Padang Jambi

Palembang

P. Bai

Panjang T. Priok

Banten

Cirebon

Semarang

Banjarmasin

Pontianak Balikpapan

Samarinda

Bitung

Makasar

Kupang Benoa

Surabaya

Ambon

Sorong

Biak

Jayapura

Timika

Merauke

P. Baru

"Pendulum Nusantara", proposed plan to boost national domestic trade

These don't mean exclusive port development in these

locations

Source: IPC, 2012

Indonesia Main Sea Corridor, West – East Pendulum

45

BELAWAN

BATAM

TJ PROK

SURABAYA MAKASAR

SORONG

Loop Aceh

Loop

Pantai

Timur

Sumatera

Loop

Babel and

West

Kalimantan Loop East

Kalimantan

Loop West

Sulawesi

Loop East

Nusatenggara Loop West

Nusatenggara

Loop North-

East Sulawesi

and North

Maluku

Loop Maluku

and South-

West Papua

Loop North

Papua

Loop Pantai Barat

Sumatera

Main Sea-Corridor

The Integrated Pendulum Service would reduce the average shipping costs

46

Prior to the Pendulum Service

Source: IPC, 2012 With the Pendulum Service

Future containership designs The trend toward bigger and bigger container ships is continuing….

47

0

2.000

4.000

6.000

8.000

10.000

12.000

14.000

16.000

18.000

20.000

1970 1975 1980 1985 1990 1995 2000 2005 2010

Indonesia Domestic Container Ship

(1800 TEU)

Inbound International Container Ships

Entering Indonesia (5000 TEU) L “Lica” Class (3400 TEU)

R “Regina” Class (6000 TEU)

S “Sovereign” Class (8000 TEU)

E “Emma” Class (12500 TEU)

“Triple E” Class (18000 TEU)

In 40 years, the capacity of container ships grew six fold. Source: Rodrigue, J-P (2011)

Port Infrastructure Development along Pendulum Nusantara

48

Hard Infrastructure

MINIMUM REQUIREMENT BELAWAN BATAM JAKARTA SURABAYA MAKASSAR SORONG

Chanel (mLws)

-13 - 10,5 -15 -13 -7,5 - 13 N/A

Berth (Length/ Depth)

300 / -13 400 / -10 350 / - 9 400 / -13 450 / - 7,5 850 / -11 N/A

Yard (Hectare)

6 8 6 10 5,6 11,5 N/A

Equipment (Container Crane Post Panamax)

4 4 - 4 4 5 N/A

Belawan Batam Sorong

PORT LOCATION

Source: IPC, 2012

49

Concluding Remarks

Indonesia is an enormous, growing

market. With its productive

workforce, growing middle class, it

has the capital to grow to be one of

the largest economies in the world.

There are abundant business

opportunities in growing markets

as demand increases, driving more

consumption, and thus requiring

new or improved infrastructure to

support it.

Thank You

50

Indonesia: Country Profile

51

Land area

Indonesia has total land of 1.8 million sq. km

and water of 0.9 million sq. km

The archipelago state is consist of 17,508

islands, among which 6,000 are inhabited

Total land boundary is 2.8 thousand km and

total coastline is 54.7 thousand km

Population

Indonesia’s population is estimated as

245.6 billion in 2011.

It is the 4th largest country in terms of

population, after China, India and

United States

Overview of Indonesia’s Economic Development

52

In the past decade, Indonesia’s economy has constantly outpaced the average world

economy, even in the crisis years of 2008-2009

Source: IMF

Figure 1.2: Historical Indonesian GDP development 2003-2010

0

1

2

3

4

5

6

7

-

500.000

1.000.000

1.500.000

2.000.000

2.500.000

3.000.000

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

GDP

Growth %

CAGR (%)

5.4

3.4

-

1,00

2,00

3,00

4,00

5,00

6,00

7,00

2001 2003 2005 2007 2009 2011 2012

World GDP Growth

Indonesian GDP Growth

Figure 1.2: Historical Indonesian GDP development 2003-2010

5.4

Strong Indonesia GDP growth

Indonesian economy maintained

an average 5.4% annual growth

during the period of 2001 to 2012.

During this period Indonesian

GDP growth has constantly

outpaced average World GDP

growth.

In the 2009 downturn, the world

economy saw negative growth,

where as Indonesian GDP growth

still remained at 4.5%, and 2010,

Indonesian GDP growth rate has

bounced back to 6%

The GDP growth was driven

primarily by the combination of

large volume of foreign investment

and the private consumption

thanks to the countries vast

population.

Summary of Development Themes of Indonesia Economic Development Corridors

53

“Production, Agriculture, and National Energy

Center” “Production, Mining, and National Energy Center”

'‘Production, Agriculture, Plantation and Fishery

Center”

'‘Gateway to National Tourism and National Food Annex''

“National Industry and Services Enhancer”

'‘National Agricultuire, Fishery,

Energy, and Mining Center

Source: MP3EI, 2011

Intra-island, Inter-island, and International Connectivities

54

LOCAL Connectivity NATIONAL Connectivity GLOBAL Connectivity

Intra-island Inter-island International

Indonesia International

Gateway

Asia

Europe

America

Town Island

Island

Island

Town

Town

Town

Town

Town

Town

Town

City

City

City

City

City

Within Growth Centers (urban)

Between Growth Centers (sub-regions)

Locally Integrated, Globally Connected

Passenger Traffic Forecast at Jakarta Airport

55

5.3

3.7

3.8 4.6

4.5 4.9 4.8 5.6 5.8 611.3 13.4 14.2

18.423.9

31.1

8.6 5.1 4.4 6.1 6.7 9.114.9

19 20.7 24.5

40.1 47.4 50.2

65.3

84.8

110.3

13.98.8 8.2 10.7 11.2 14

19.724.6 26.5

30.5

51.560.7 64.4

83.7

108.8

141.4

0

20

40

60

80

100

120

140

160

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2011 2014 2015 2020 2025 2030

Int'l

Dom

Total

Krisis Moneter

Actual 2011

Million pax

Deregulation

FORECAST

• Jakarta Airport registered phenomenal growth rates for 2011 in excess of 15%

as compared to 2010. (44.4 million pax in 2010 to 51.5 million pax in 2011)

Monetary Crisis

Source: AP II, 2012

Sei Mangkei Railway Development

56

• Sei Mangkei Industrial Area is a CPO-based industrial area occupying a land of 2,003 ha.

• There is a palm kernel oil processing plant with a capacity of 400 tons per day

• To enhance its logistics, a 25-km railway plan connecting the industrial area to Kuala Tanjung

Port is currently being developed.

Opportunities in Urban Transport Development

57

Source: CMEA, 2011

MEBIDANGRO

Population : 3.9 million

Area : 2,750 km2

JABODETABEK

Population : 21 million

Area : 6,580 km2

BANDUNG RAYA

Population : 9.8 million

Area : 1,124 km2

GERBANG KERTASUSILA

Population : 6.7 million

Area : 2,154 km2

SARBAGITA

Population : 1.4 million

Area : 724 km2

MAMMINASATA

Population : 2.4 million

Area : 2,462 km2

Most of the urban areas are located in the western part of Indonesia. There are 6 major

cities that in total have 20 percent nationwide population occupying 8.6 percent of the

country’s land.

Urban Railway Development Initiatives

58

30km

Jabodetabek

Bandung Surabaya

Source: MoT, 2011

Medan

Belawan Port

Kualanamu

Airport