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Indonesia Transportation Overview Indonesia Transportation Overview Presentation Transcript

  • INDONESIA TRANSPORTATION SECTOR OVERVIEWInfrastructure Forum 4 December 2012Den Haag Bambang Susantono, Ph.D. Vice Minister for Ministry of Transportation Republic of Indonesia
  • Snapshots of the country 2
  • Indonesia Today and in 203016th largest economy in the world 9th largest economy in the world45 million members of the 135 million members of theconsuming class consuming class53% population in cities producing 71% population in cities producing74% of GDP 86% of GDP55 million skilled workers 113 million skilled workers needed$ 0.5 trillion market $ 1.8 trillion market opportunityopportunity in consumer services, in consumer services, agriculture andagriculture and fisheries, resources fisheries, resources and educationand educationSource: McKinsey Global Institute 33
  • GDP and urbanization pattern in the future 86 % GDP comes from Urban Areas and 63% from midsize cities 4
  • Indonesia GDP growth 2010 - 2030 5
  • More than just population size ... 6
  • The World Embrace Indonesia Performance 7
  • Indonesia to be the 4th largest economy in 2050World’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) 8
  • Breakthrough of MP3EI 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 9
  • MP3EI .... THE ECONOMIC MASTERPLAN VisionMAIN STRATEGY ECONOMIC CORRIDORS DEVELOPMENT STRENGTHENING THE NATIONAL CONNECTIVITY STRENGTHENING HR CAPABILITY AND SCI - TECH 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)* 4.930 2.373 604 156 78 208 201 416 205 1.109 1.156 1.460 1.133 577Sumatera Jawa Kalimantan Bali - Papua Total Sumatera Jawa Kalimantan Bali - Papua Total Sulawesi NT - Sulawesi NT - Maluku Maluku * As of April 2012 11 11
  • Implementation So Far (After 1 Year) In billion Real Sector Infrastructure USD Planned 27.8 251 18.8 170 46.7 58 projects 56 projects 114 projectsRealization 21.6 194 18 162 39.6 49 projects 50 projects 99 projects In billion USD Real Sector Infrastructure Planned 33.9 305 7.2 65 41.1 16 projects 39 55 projects projects (Up to July 2012) Realization 9.8 89 5.7 51 15.5 9 27 36 projects projects projects 12
  • Indonesia offers huge investment opportunity: Palm Oil Industry Sei Mangke (Medan, North Sumatera) 13
  • Sei Mangkei Special Economic Zone (SEZ) provide various opportunities for investment Several advantage of Sei Mangkei SEZ Regulated under the Government Law No 29/2012 1. 40 km to the Kuala Tanjung Port . Under the There are three phase of development in Sei MP3EI program, this port will be developed to a Mangkei SEZ: global hub port. 1. Develop 104 Ha Area 2. Nearby the “Gunung Bayu – Petlanaan Station” 2. Expand to 640 Ha; (principal permit already issued, railway track currently waiting for the Right to Build permit) 3. Already produced 30 Ton / hour of Fresh Fruit 3. Developing its area to total 2002,77 Ha Bunches (FFB) since 1997 4. Abundance in water supply. Water are supplied There are three investor already commited: from the Bah Bolon Rover( water debit 37,3 1. PT Sinergi Oleo Nusantara (USD 415 Million on m3/second) biodiesel – bCarotene integrated – industry) 5. Nearby to several Large Palm Oil Plantations 2. PT Cipta Buana Utama Mandiri (Rp 0,4 T on fertilizer (70 km radius): industry) 3. PT Unilever Indonesia (Rp 1,2 T on oleochemicals 1. PTPN III = 165 Ton FFB/hour industry) 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:  Railway PlanRp Billion Road and Seaport Railway Bridge Energy Energy Total 5,644 699  Road Plan 2 4 projects projects 4,148 91 39 10 1 1 10,621 projects project project 18 projects 15 15
  • Transport Infrastructure Investment Needs in Economic Corridors Sumatera EC (USD 9,279 Million): Kalimantan EC (USD 5,366 Million): Sulawesi EC • Railway: USD 7,826 Million (USD 671 Million): • Port: USD 1,006 Million • Railway: USD 3,913 Million • Airport: USD 447 Million • Port: USD 1,118 Million • Airport: USD 335 Million • Port: USD 671 Million Sumatera Sulawesi Economic Kalimantan Economic Corridor Economic Corridor Corridor Papua – Kep. Maluku Economic Corridor Java Economic Corridor Bali Nusa Tenggara Economic Corridor Java EC (USD 18,558 Million): Papua-Kep. Maluku EC • Railway: USD.11,738 Million (USD 6,618 Million) : • Port: USD 5,031 Million Bali - Nusa Tenggara EC • Port: USD 6,596 Million • Airport: USD 1,789 Million (USD 1,677 Million): • Airport: USD 22 Million • Railway: USD 1,342 Million • Airport: USD 335 MillionSource : MP3EI, 2011 16
  • Acceleration of Transport Infrastructure Development Non -Cost •State Budget Recovery •Local Budget MP3EI Project Public Tender / Right To Transport Infrastructure Match PPP •Law 23/2007 on Railway •Law 17/2008 on Shipping Cost •Law1/2009 on AviationNo Infrastructure Investment Est. # of •GR 67/05 Need (USD Projects Infrastructure Recovery •GR 13/10 •GR 56/11 Million) Project Presidential SOE Special1 Ports and Inland 13,080 92 Asssignment Regulation on Waterways SOE Special Assignment2 Airports 3,577 14 Private3 Railways 36,445 25 Licencing Infrastructure Total 53,102 131 (Private Purpose) •Special Airports •Special Ports, Special Terminals •Special Railways 17
  • Private Sector Involvement Is Made Possible throughRegulatory Reform in Transport Sector Previous Regulations New Regulations• Overlapping roles of regulator, • Clear separation of role between operator and contracting regulator, operator & contracting agency agency• Monopolistic / Single Provider • Multi-operator• Limited access for Private • Wider access for the involvement of Sector Private Sector• Centralized • Decentralized• More on supply approach • Combination of accessibility and market-driven approaches• Minimum access for the Government Support • Wider access for the Government Support 18
  • Three Ways of Private Sectors Involvement in Transport Infrastructure Development Investments in Transport Sector Special Purpose Transport SEZ/FTZ Transport Public / Commercial Infrastructure Infrastructure Transport Infrastructure• Infrastructure specially developed for the • Infrastructure to be used by • Infrastructure is located in the purpose of a business entity and may public and commercially Special Economic Zones (SEZ) operate exclusively for the business oriented (tariff applied) or in Free Trade Zones (FTZ) entity. • Several incentives such as • May be solicited (proposed• Usually unsolicited, i.e. initially proposed reduced tax rates by the GoI) or unsolicited by the business entity (private sector) • More relaxed restrictions (compared to the Negative • Ministry of Transport prepares• Ministry of Transportation reviews the Investment List) the project documents and feasibility study and other technical tender documents, including • More incentives and exceptions matters, including safety issues feasibility study for the projects in the Bounded Zones (Kawasan Berikat)• The investment procedure for the special • The business entity is chosen purpose transport is done through the • The investment procedure is through TENDER (in LICENCING (business licence, location through simplified integrated accordance to Presidential licence, construction licence, and LICENCING from the FTZ/SEZ Regulation No. 56/2011) operation licence). administrators 19
  • Government had provided many endorsements and incentives in order to attract private invesmentsSeveral government supports and incentives are in ... Whilst the government is working to prepare the potentialplace to attract more investors ...... infrastructure projects to be offered to the private sectors.  Geothermal Fund: reducing the investor risks Tax Holiday during exploration activities Facility  Presidential Regulation no. 71/2012: providing clear mechanism and duration of every stages in land acquisition processPPP Scheme Viability Gap and Fund Regulation  Viability Gap Fund: government support to Government increase the financial feasibility for supports and infrastructure projects. Some infrastructure incentives sector may have this facility such as toll road, water sector, etc  Land Capping: government support to reduce Land Geothermal the risk due to the unpredicted and unavoidable Procurement Regulations Fund increasing land price 20 20
  • Recent amendment on Presidential Decree No. 67/2005 (Presidential Decrees No. 56/2011), had eased PPP from straining regulationsThere are several changes that have been ... simultaneously supported with made through PD No. 56 / 2011 ... government programs Permits unsolicited proposal  Project Development Facility: to fund feasibility studies. given as revolving fund to be repaid by winning bidder Easier tender process  Land Capping: To cover the risk of increasing cost of land acquisition Allows Ministry of Finance to give above certain level. guarantees through appointed  Land Revolving Fund: Provide institutions bridging finance for land acquisition Allows SOE’s to become the  Guarantee Fund: provides guarantee for risks better covered by government contracting agencies  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 Fiscal support given along PPP process Preparation Bidding Implementation PDF Government (Project Development Land Fund Guarantee Infrastructure Fund Facility) Project Development Two types of Land Fund: Guarantee fund provides • Takes part in financing a Facility (PDF) will be used • Land Revolving Fund: guarantee for risks better commercially viable by CAs to fund feasibility Provide bridging finance covered by government project studies, and is essential to for land acquisition • e.g. political, price, – Can be as debt, equityObjective ensure initiation and land acquisition delay or credit • Land Capping: Cover risk implementation of projects of increasing cost of land • Based on Perpres 78 / enhancement – PDF given as 2010 and Permenkeu guarantees revolving fund to be 260/PMK.011/2010 repaid by winning bidder PT SMI (PT Sarana Managed by Government PT PII (PT Penjaminan PT IIF (Indonesia Multistruktur Indonesia) Investment Unit (under Min. Infrastruktur Indonesia) Infrastructure Fund), aProviding Finance) and forwarded subsidiary under PT SMI Party through Toll Road Regulatory Agency (under PT IIF Min. Public Works) 22 22
  • TRANSPORTATION SECTOR INVESTMENT CLIMATE 23
  • Opportunities in Air Transport Sector Airline penetration levels Population• With a population of more than 240 (m) 232 240 87 92 28 67 5 496 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 Source: Euromonitor 2011, while international air Indonesian Airports – Annual Domestic & International Passengers 2006 to 2011 passengers grew 22.4% annually within the same period.• ASEAN Open Skies in 2015 will further increase the demand of air travels Source: DGCA, 2011 24
  • Emerging economies drive strong travel growth• 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 yearsSource: Airbus, 2012 25
  • Forecast for the Indonesian air transport sectorSource: Airbus, 2012 26
  • Over-capacity Problem at Indonesia Major Airports Existing pax. Exixting capa. Pax./capa. Airport (million/year) (million/year) (%) 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 1.1 336.36Source: AP I & II, 2011 27 27
  • Airports Supporting MP3EIYear 2020 International Year 2030 International Domestic Domestic • International airports to serve passengers and cargoes to other countries • Domestic airports to become feeders for those international airports 28
  • Investment Schemes in The Airport InfrastructureDevelopment Existing Commercial State Owned Enterprises Airports (Angkasa Pura I & II) Development Airport GreenfieldInfrastructure Public Private PartnershipDevelopment Airports (PPP) scheme Non-Commercial Airports (small Government airports, airstrips, etc.) 29
  • Existing Commercial Airports Terminal Development Existing Existing Additional Total Capacity Pax./Capa. Airport pax. Capa. Capacity capacity expansion million/year million/year (percent) million/year million/year (percent) 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 2013Source: AP I & II, 2011 Kualanamu Airport Bandung Airport Ngurah Rai Airport 30
  • Several Planned Greenfield Airports Jakarta Multiple AirportNew Yogyakarta Airport New Bali Airport 31
  • New Non-Commercial Airport Development Plan Miangas Medan Baru Muara Teweh Waisai Waghete Baru Sumarorong Kamanap Tojo Una2 Sinak Baru MorowaliMuara Bungo Buntu Kunik Kuffar-Seram Namniwel Segun Enggano Bone Saumlaki Baru Pekon Serai Bawean Tual Baru Werur Moa Operating in 2013 Operating in 2014 Total Budget: ±USD 224 million Operating in 2015 32
  • Opportunities in Railway Transport Development Source: National Railway Master Plan, 2010 33
  • Freight Access Rail to Port Development Plan Coal, Petrochemical Petrochemical Industrial Area Industrial Metropolitan Area Jakarta Food Metropolitan Surabaya Manufacturing ComplexLegend Operating rail Built rail by 2030 Planned rail Built High Speed Train (HST) by 2020 Planned High Speed Train (HST) Dockyard (biggest in Indonesia)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 34
  • Freight Access Rail to Port Development Plan Network Development and Freight Access Rail to Port Services: No Program Period .Rubber, CPO 1 Lhokseumawe (NAD) 2018-2020 2 Belawan (North Sumatra) 2011-2012 3 Tanjung Api-api (South Sumatra) 2018-2023 CPO 4 Dumai (Riau) 2019-2023 5 Teluk Bayur (West Sumatra) 2021-2025 6 Panjang (Lampung) 2018-2023 Operating rail CPO, Coal Built rail by 2030 Planned rail 35
  • Muara Wahau – Bengalon Railway Development,East Kalimantan 36
  • Opportunities in Sea Transport Sector MALAHAYATI LHOKSEUMAWE Miangas Karatung Marore BELAWAN Kakorotan MALAYSIA Kawio Essang Geme Rainis Ranai Beo Melonguane Matutuang Sedanau NUNUKAN Kawaluso Lirung Mangarang Tapak Tuan Lipang Tarempa TARAKAN P. Simeulue Letung Midai Makalehi P. Banyak BAGANSIAPIAPI Serasan TANJUNG SELOR Berebere Pehe Daruba Lahewa Afulu DUMAI Biaro Dama Tobelo SIBOLGA BATAM Lolasita P. Mafia Solanakak SINTETE TOLI TOLI BITUNG Mayau Wasilei Wayamli Sirombu PEKANBARU TG. PINANG Bicoli Buli Sehe Tifure Tl.Dalam SIAK Tambelan SANGKULIRANG Moti Peniti Gemia Werur Boluta BENGALON GORONTALO Gita Saribi P. Tello TEMBILAHAN SENGATA Weda Miosbipondi Saeru Popolii Kayoa PONTIANAK BONTANG Mafa Jenggerbun Sigologolo Indari SAMARINDA Besui Sausapor Korido Singapokna Sinaki PAGIMANA SORONG BIAK PALU Arefi Sikabaluan Srilagui Ampana Meosmengkara MANOKWARI M.Saibi Siberut BALIKPAPAN Poom Poso Waigama/ Teminabuan Serui Saumanuk MUNTOK TAYIN Teba Misol Sarmi Sioban KETAPANG Kolonedale Fafanlap Bintuni Kaipuri Sanana Gela Berilau PALEMBANG KowedaD. Rombebai JAYAPURA Tg. Pandan/Belitung KUMAII Kobisonta/ Babo Bula Kobisadar Waren Amahai Wapoga Trimuris PULANG PISAU Fakfak Bula Gorom/ Pegatan Watunoho Kasonaweja Ondor Maliku Nabire Amahai Bahaur Toheru BENGKULU KOTA BARU Parepare KENDARI Werinama Leksula Banda Namrole AMBON P. Kerayan Kolaka P.Ambalau Ulima/ Geser Larearea/ P.Kesui P. Tior Tanah merah Marabatuan Biringkasi Sinjai Pomako Maligan Elat LAMPUNG Boepinang Kaimer Maradapan Raha P.Kur Sikeli Banabungi P. Toyando Dobo Serua MAKASSAR Bebar/ Masalembo Ampera Wulur PANJANG Burunga (P.Kaledupa) Teon BAWEAN Benjina Gententiri Nila Usuku(P.Tomia) TUAL Kalar kalar Selayar Papalia Kayuadi Batu atas (P.Binongko) P. Molu Batu Goyang Asiki Jampea Masela Larat Tepa Seira Wanam Bonerate Tutu Kembong Kimaam Lakor MERAUKE Ilwaki Upisera SAUMLAKI TG. WANGI BIMA Adaut Mahaleat Lelang/ Kisar Wonreli/ Maritaim Moa Kroing Leti MpokotKet PELNI Routes : Trayek PT. Pelni LEMBAR NTB Ende Attapupu Wini Naikliu KUPANG SabuKet : Pelabuhan Pangkal Perintis Pioneering Routes Raijua Ndao Tl. Bayur R- 1 R- 2 R - 58 R - 57 R - 56 R - 55 R - 54 R - 53 R - 52 R - 51 R - 50 DARWIN R - 49 R - 48Indonesia whose coastline extends to 54,716 TERNATEhas waters in two-thirdsSORONG AMBON SAUMLAKI km MANOKWARI of its Bengkulu Kotabararu BITUNG Makassar KUPANG J R - 30 BIAKterritory. Its sea transport is vital- 18 supporting the economy and asserts a great need R in R – 41 R - 44 R- 3 R- 6 R- 9 R – 13 R - 16 TUAL R - 19 R – 25 R - 27 AY R - 31 R - 38in Tg.Pinang P. Pisau its islands. connecting Pagimana A R - 35 R - 42 R – 45 R - 20 R - 28 R - 10 R - 12 R – 17 R - 26 P R - 32 R - 39 R- 4 R- 7 Tahuna R - 23 U R - 36 R - 46 Sintete Surabaya KENDARI R – 21 R – 29 R – 33 R R – 37 R - 40 R - 43 R - 4737 R- 5 R- 8 R - 11 R - 14 R - 15 R - 24 R - 22 A R - 34
  • Domestically, trade routes are vibrant and growingfast (Inter-island trade has been growing with 37% CAGR in the last 5 years) Fast growing, vibrant domestic trade routes 9 MT 18% CAGR 74 MT 40% CAGR 10 MT 20 MT 36% CAGR 50% CAGR 13 MT 8 MT 56 MT 85% CAGR 18 MT 73% CAGR 27% CAGR 35% CAGR 66 MT 6% CAGR 2 MT 39 MT 52% CAGR 70% CAGR 8 MT 2% CAGR 2 MT 2 MT 96% CAGR 70% CAGR = Selected major domestic goods routes (MT/yr) 51 MT 66% CAGR Inter-island trade has increased ~5x from 638 Mn Ton in 2006 to 3,153 Mn Ton in 2011Note: Province to province origin-destination goods flow for all means of transportation (sea, air, land), CAGR 2006-2011Source: OD Matrix - Ministry of Transportation 2006 and 2011 38
  • Container Traffic Projection in Major Ports inIndonesia, 2009-2030 BELAWAN TANJUNG PRIOK 4.810.400 TEUs 21.239.900 TEUs TANJUNG PERAK 9.444.700 TEUs BITUNG BATAMPEKANBARU BALIKPAPAN SORONG PONTIANAK MAKASSAR JAYAPURATELUK BAYUR PALEMBANG 2.469.900 TEUs BANJARMASIN PANJANG TANJUNG EMAS 3.114.600 TEUs Source: MoT, 2012 39
  • Port Development within the Economic CorridorsSUMATERA : JAVA : KALIMANTAN : PAPUA – MALUKU :1. Sabang 10. Bojonegara 17. Pontianak 25. Ambon2. Belawan 11. Tg. Priok 18. Balikpapan 26. Ternate3. Dumai 12. Tg. Intan 19.Sampit 27. Sorong4. Batam (Batu Ampar/ 13. Tg. Emas 20. Banjarmasin 28. Jayapura Sekupang/ Kabil/ 14. Tg. Perak 21. Mekar Putih 29. Merauke Lobam)5. Tg. Balai Karimun BALI – NUSA TENGGARA : SULAWESI :6. Teluk Bayur 15. Benoa 22. Makassar7. Tua Pejat 16. Tenau Kupang 23. Pantoloan8. Palembang 24. Bitung9. Panjang 40
  • 47 Designated Ports for ASEAN Connectivity (14 inIndonesia): Indonesia’s Ports Source: JICA Study on Guidelines for Assessing Port Development Priorities 2009 41
  • PPP Projects in Port Sector 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 42
  • Optimization Shipping ServicesCurrent Domestic Shipping Network Optimal Domestic Shipping Corridor Indonesia has 70 major ports The development of an optimal East functioning as commercial ports West Shipping corridor would reduce the transport cost, therefore unlock the However, restricted by the limited economic growth for regions like access draft and lack of proper port Sumatera, Kalimantan, Sulawesi, and handling facilities, majority of these Papua ports in Indonesia only serve by container vessels with carrying capacity of 300 TEUs to 500 TEUs and operate single loop shipping services Source: Drewry, 2012 43
  • Pendulum Nusantara: Reducing domestictransportation cost by building national containerbackbone "Pendulum Nusantara", proposed plan to boost national domestic tradeMalahayati Belawan Batam Pontianak Bitung P. Baru Balikpapan Padang Jambi Samarinda Sorong P. Bai Banjarmasin Ambon Jayapura Palembang Biak Panjang T. Priok Makasar Banten Semarang Timika Cirebon Surabaya Benoa Kupang Merauke These dont mean exclusive port development in these locations Source: IPC, 2012 44
  • Indonesia Main Sea Corridor, West – East PendulumLoop Aceh BELAWAN Loop Pantai Loop North Loop North- Timur Papua East Sulawesi Sumatera and North BATAM SORONG Loop Maluku Babel and West Loop Maluku Loop East Loop West Kalimantan and South- Kalimantan Sulawesi TJ PROK West Papua Loop Pantai Barat Sumatera MAKASAR SURABAYA Loop East Loop West Nusatenggara Nusatenggara Main Sea-Corridor 45
  • The Integrated Pendulum Service would reduce theaverage shipping costsPrior to the Pendulum ServiceWith the Pendulum Service Source: IPC, 2012 46
  • Future containership designs The trend toward bigger and bigger container ships is continuing…. 20.000 “Triple E” Class (18000 TEU) 18.000 16.000 14.000 E “Emma” Class (12500 TEU) 12.000 10.000 S “Sovereign” Class (8000 TEU) 8.000 R “Regina” Class 6.000 (6000 TEU) Inbound International Container Ships L “Lica” Class Entering Indonesia (5000 TEU) 4.000 (3400 TEU) 2.000 Indonesia Domestic Container Ship (1800 TEU) 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 In 40 years, the capacity of container ships grew six fold. 47Source: Rodrigue, J-P (2011)
  • Port Infrastructure Development along Pendulum NusantaraHard Infrastructure PORT LOCATION MINIMUM REQUIREMENT BELAWAN BATAM JAKARTA SURABAYA MAKASSAR SORONG Chanel -13 - 10,5 -15 -13 -7,5 - 13 N/A (mLws) Berth (Length/ 300 / -13 400 / -10 350 / - 9 400 / -13 450 / - 7,5 850 / -11 N/A Depth) Yard 6 8 6 10 5,6 11,5 N/A (Hectare) Equipment (Container 4 4 - 4 4 5 N/A Crane Post Panamax) Belawan Batam Sorong 48Source: IPC, 2012
  • 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. 49
  • Thank You 50
  • Indonesia: Country ProfileLand area Population Indonesia has total land of 1.8 million sq. km  Indonesia’s population is estimated as and water of 0.9 million sq. km 245.6 billion in 2011. The archipelago state is consist of 17,508  It is the 4th largest country in terms of islands, among which 6,000 are inhabited population, after China, India and Total land boundary is 2.8 thousand km and United States total coastline is 54.7 thousand km 51
  • Overview of Indonesia’s Economic Development In the past decade, Indonesia’s economy has constantly outpaced the average world economy, even in the crisis years of 2008-2009 Figure 1.2: Historical Indonesian GDP development 2003-2010 Strong Indonesia GDP growth3.000.000 GDP 7  Indonesian economy maintained2.500.000 6 an average 5.4% annual growth Growth % 5.42.000.000 5 during the period of 2001 to 2012.1.500.000 4 During this period Indonesian 3 GDP growth has constantly1.000.000 2 outpaced average World GDP 500.000 1 growth. - 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0  In the 2009 downturn, the world Figure 1.2: Historical Indonesian GDP development 2003-2010 economy saw negative growth, CAGR (%) where as Indonesian GDP growth 7,00 World GDP Growth 6,00 Indonesian GDP Growth 5.4 still remained at 4.5%, and 2010, Indonesian GDP growth rate has 5,00 bounced back to 6% 4,00 3,00 3.4  The GDP growth was driven 2,00 primarily by the combination of large volume of foreign investment 1,00 and the private consumption - 2001 2003 2005 2007 2009 2011 2012 thanks to the countries vastSource: IMF population. 52
  • Summary of Development Themes of Indonesia Economic Development Corridors “Production, Agriculture, and National Energy ‘Production, Agriculture, Center” “Production, Mining, and Plantation and Fishery National Energy Center” Center” ‘National Agricultuire, Fishery, Energy, and Mining Center “National Industry and Services Enhancer” ‘Gateway to National Tourism and National Food AnnexSource: MP3EI, 2011 53
  • Intra-island, Inter-island, and International Connectivities Locally Integrated, Globally Connected City Town Town Island Asia City Town Town Indonesia Island International Europe City Gateway Town City TownTown America Island Town City Between Growth Within Growth Centers (sub-regions) Centers (urban) Inter-island International Intra-island LOCAL Connectivity NATIONAL Connectivity GLOBAL Connectivity 54
  • Passenger Traffic Forecast at Jakarta AirportMillion pax 160 Intl FORECAST 141.4 140 Dom Total 120 108.8 Actual 2011 110.3 100 83.7 84.8 80 Deregulation 60.7 64.4 Monetary Crisis Krisis Moneter 65.3 60 51.5 47.4 50.2 40 26.5 30.5 40.1 24.6 19.7 20 13.9 8.8 8.2 10.7 11.2 14 19 20.7 24.5 31.1 14.9 23.9 8.6 5.3 5.1 3.8 4.6 6.7 6.1 9.1 18.4 4.4 11.3 13.4 14.2 0 5.6 5.8 6 3.7 4.5 4.9 4.8 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2011 2014 2015 2020 2025 2030Source: AP II, 2012 • 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) 55
  • Sei Mangkei Railway Development• 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. 56
  • Opportunities in Urban Transport Development MEBIDANGRO Population : 3.9 million Area : 2,750 km2 JABODETABEKPopulation : 21 million Area : 6,580 km2 MAMMINASATA Population : 2.4 million Area : 2,462 km2 BANDUNG RAYA Population : 9.8 million Area : 1,124 km2 SARBAGITA GERBANG KERTASUSILA Population : 1.4 million Source: CMEA, 2011 Population : 6.7 million Area : 724 km2 Area : 2,154 km2Most of the urban areas are located in the western part of Indonesia. There are 6 majorcities that in total have 20 percent nationwide population occupying 8.6 percent of thecountry’s land. 57
  • Urban Railway Development Initiatives Medan Belawan Port Kualanamu AirportJabodetabek Bandung Surabaya 30kmSource: MoT, 2011 58