2 seminar deloitte presentation_oda project_en_171212_v6

Outline of expected
ODA project
Masatoshi Nishimoto, Director
Risk Advisory
Deloitte Touch Tohmatsu LLC
December 12, 2017

© 2017. For information, contact Deloitte Touche Tohmatsu LLC.2
Overview of ODA
Outline of expected ODA project

© 2017. For information, contact Deloitte Touche Tohmatsu LLC.3 Outline of expected ODA project
Reprint： JICA’s Partnership with the Japanese Private Sector, Japan International Cooperation Agency

ODA Project Overview

In Indonesia, the improvement of connectivity is one of the priority tasks to increase economic growth
from central to local region.
1. Concerned Development Issues
－ Road Development Plan －
Bina Marga’s strategic plan （RENSTRA 2015 - 2019）
・Promotion of domestic road network structure to enhance industry development
・Road related budget (5 years)：278.177trillion IDR（20.8 billion USD※）, accounts for about 30%
of the Ministry of Public Works’ budget
A) Road maintenance ： 47,017km
B) Road laying services ： 2,650km
C) Road repairs ： 3,073km
D) Toll roads ： 1,000km（highway）
Road
Development
Plan
Government
Directorate
General of
Highways,
Ministry of
Public Works
The
Government of
West Java
The government’s National Medium Term Development Plan （RJPMN2015-2019）
・Local development is one of the preferential policies.
・The improvement of connectivity throughout Indonesia to increase economic growth from it
Central Region to local region
West Java’s Government Vision
（2013 - 2018）
・Support infrastructure development, which allows for improvement of inter-area connectivity
and economic growth
Organization Policy / Development Plan
※1IDR=0.008624JPY, 1USD=115.144000JPY

Asphalt is not recycled in Indonesia, and a cheap overlay method is selected due to the budget shortage.
As a result, derailments and delays in paving roads occur frequently.
－ Current situation of paved roads in Indonesia －
A car runs off the road due to the
overlay method
An unpaved road in West Java
Recycled asphalt wearing course
a. Asphalt recycling is not common in Indonesia.
 Asphalt recycling ratio in Japan is over 98%.
b. There is no specification for recycled asphalt for wearing course in
Indonesia.
c. The cost of asphalt recycling in Indonesia tends to be higher than virgin
materials.
% km % km % km
Good 58 22,360 32 15,756 32 121,444
Normal 33 12,671 29 14,014 23 86,134
Minor Damage 6 2,371 18 8,670 22 82,372
Major Damage 3 1,168 22 10,638 23 86,455
Total 100 38,570 100 49,078 100 376,405
Road Length Ratio
Source：Directorate General of Highways, Ministry of Public Works
8% 11% 81%
Table Pavement Situation（2012）
National Road State Road City Road
Pavement situation of local roads is more serious than national roads.
Pavement condition (2012)

Training program in Japan was implemented in November 2017.
Participants from Bina Marga and P3AI learnt Japanese asphalt recycling technology.
(Reference) Training program in Japan － November, 2017 －
Asphalt recycling plant
Road construction site
RAP collection site
National Institute for Land and
Infrastructure Management
Laboratory test to control quality of
recycled asphalt
JICA Headquarter

Many asphalt recycling plants are deployed commercially throughout Japan. In the case of Miyagi
prefecture, there are 15 units of asphalt recycling plants against approximately 25,000 km road distance.
－ Current situation of asphalt Recycling in Japan (Plant deployment) －
【Miyagi Prefecture】
 National Road : 1,382.2 km
 Prefectural Road : 2,320.3 km
 Municipal Road : 21,552.7 km
 Total : 25,255.2 km
 Asphalt Recycling Plant : 15 unit (Private)
 Healthcare center : 10 place (Public)
Miyagi

In Japan, though the contractee of a road construction is a public entity, the collection and transportation
of RAP, the production of the recycle asphalt mix, and road construction are implemented by private
entities who win through tender or competition.
－ Current situation of asphalt Recycling in Japan (Formation) －
Collection and
Transportation
Contractor
Collector &
Transporter
Disposal
operator
Transportation
Cost
Disposal
Cost
Asphalt
recycler
Contractor
Material
Cost
RAP
Recycled
Asphalt Mix
Contractee
Transportation, Disposal and Material Cost
Crushing and Regeneration
Recycle Asphalt
Utilization
RAP
Public entity
Private entity
Capital Flow
Goods Flow

City, Town such Public entity have a right to manage their own paved road by consignment contract.
Private entities implement the pavement condition measurement and degradation’s degree evaluation on
consignment contract with road administrator(Public entity).
－ Current situation of asphalt Recycling in Japan (PMS) －
① Measurement of the pavement
condition
② Evaluation of the degradation’s
degree
③ Data storage
④ Estimation of the pavement
degradation
⑤ Development and implementation
of the maintenance plan
Road administrator
(Local government・NEXCO）
Private Company
(Measurement and
Data Analysis)
Consignment
Contract
Constructor
(Road
construction)
③、④、⑤
Delivery Order
①、②
PMS flowchart
Public entity Private entity

Pavement recycling technology consists of asphalt regeneration, paving and maintenance using
regenerated asphalt and pavement management system (PMS).
2. Product and Technologies －Pavement Recycling Technology－
①Asphalt Regeneration
Technology
②Paving・Maintenance
Technology
③PMS
（Monitoring the road
condition）
④PMS
(Visualizing data)
・Reduce the usage of newly generated
asphalt (40-60%)
・Reduce the paving cost (10-20%)
・Stable acquisition of asphalt waste from ④
・Build roads without ramps
・Chose an optimal asphalt depending
on the condition (ex: amount of rain
and cars)
Visualize the road damage level based on ③
→Planned maintenance and stable
acquisition of recycling resources
→Reduced maintenance cost (14%)
Analyze the road condition
・Crack
・Flatness
・Rutting
Road Surface Measuring Vehicle
Visualize damage level on the
map (by color）
Asphalt Regeneration Plant
Paving using optimal asphalt

First project site is assumed to be in West Java.
3. Project Site －West Java－
West Jawa
Republic of Indonesia
Malaysia
Republic of
Singapore
Bandung
Jakarta
N
Brunei
Jakarta
Bekasi
Karawang
(JV Office)
Cikampek
Purwakarta
Bandung
Bogor
20 km
About 80km
About 60km

The schedule of ODA project and business development is below.
The acquisition of Indonesian National Standard (SNI) certification is one of the keys to accelerate this project.
4. Schedule －ODA project and business development－
2017 2018 2019 2020
3 6 9 12 3 6 9 12 3 6 9 12 3 6 9 12
Phase
Feasibility survey
(JICA)
Verification survey
(JICA)
Business
development
① Acquire SNI certification for wearing course
② Feasibility survey
・Perform base research (market, needs, competitors)
・Prepare sales strategy
・Develop project plan for the next phase
③ Verification survey
・Verify pavement recycling technology
・Transfer technology
・Disseminate pavement recycling technology
・Perform cost analysis
④ Business Development
・Construct asphalt recycling plant
・Run the plant, and sell recycled asphalt
・Consider expansion to other places
Now we
are here

Goal of the verification survey is to confirm effectiveness of pavement recycling technology at a
reasonable cost, which would lead to the sustainable development of the future road network in Indonesia.
5. Verification Survey －Project design matrix－
Purpose of the ODA project To verify and recognize the effectiveness of pavement recycling technology
Output Activities
1. Verification
Verify pavement recycling
technology
1-1 Establish storage and crushing site for RAP collection
1-2 Regenerate and manufacture recycled asphalt
1-3 Test the quality of recycled asphalt (i.e. shape, strength, endurance, additives)
1-4 Construct a pilot road using virgin and recycled materials and making
comparisons
1-5 Monitor the pilot road
1-6 Evaluate pavement recycling technology (quality and economy)
2. Technology Transfer
Establish a system for
pavement recycling
technology
2-1 Prepare pavement recycling manual
2-2 Transfer pavement recycling technology (i.e. about 10 engineers from Bina Marga)
2-3 Conduct training in Japan
3. Dissemination
Disseminate the superiority
of pavement recycling
technology
3-1 Conduct periodic steering committee meetings with Bina Marga
3-2 Run a seminar for Bina Marga and National Highway Construction
Companies, explaining the superiority of the technology
3-3 Evaluate business model of pavement recycling

Pilot project of asphalt recycling system from recycled asphalt pavement (RAP) collection to Recycling,
Pavement and Monitoring will be developed by Sugawara Industry.
RAP Collection
/ Storage
Crushing
Regeneration /
Manufacturing
Quality control /
Mix formula
Pavement
Issues
Lack of RAP collection and
distribution system
Lack of recycled
asphalt plant for
wearing course
Lack of
specification of
recycled asphalt
for wearing
course
Organizations
in charge
Bina Marga
Technology
transfer
Operation of
recycle unit
Quality control and
establishment of
specification of
recycled asphalt
for wearing course
Monitoring
-
Lack of
monitoring data
using pavement
with recycled
asphalt
Pusjatan (Sugawara Industry) Pusjatan
Pavement with
recycled asphalt
Monitoring of
pavement with
recycled asphalt
Necessary
equipment
Storage
Measurement
tools at
laboratory
Recycle unit
Road Surface
Measuring
Vehicle
Construction
machines
Crushing unit
5. Verification Survey －Technology transfer of pavement recycle－
Development of asphalt recycling system supported by Sugawara Industry
RAP collection and distribution
system

Collaboration between Indonesia and Japan is necessary to develop the asphalt recycling system.
The most suitable collaboration need be selected considering practical use and related restriction as ODA.
RAP Collection
/ Storage
Crushing
Regeneration /
Manufacturing
Quality control /
Mix formula
Pavement
Option 1
Option 2
Monitoring
Option 3
Storage
Measurement
tools at
laboratory
Recycle unit
Road Surface
Measuring
Vehicle
Construction
machines
Crushing unit
5. Verification Survey －Options of collaboration to develop recycle system－
Bina Marga Pusjatan
Sugawara
Industry
Pusjatan
Sugawara
Industry
JICA
Bina Marga Pusjatan
Sugawara
Industry
JICA
Sugawara
Industry
Bina Marga
Bina Marga Pusjatan
JICA
Sugawara
Industry
Bina Marga Pusjatan
Option 4 Bina Marga JICA
Sugawara
Industry
Bina Marga Pusjatan
Sugawara
Industry
Necessary
equipment
Bina Marga

Try to examine asphalt recycling by implementing certain activities (i.e. verification, technology transfer,
and dissemination) by 2020.
5. Verification Survey － Schedule －
Activities in Verification Survey 2018.10 2019.4 2019.10 2020.4
Trips
1. Verification of pavement recycling technology
1-1. Establish storage and crushing site for RAP collection
1-2. Regenerate and manufacture recycled asphalt
1-3. Test the quality of recycled asphalt
1-4. Construct pilot road
1-5. Monitor pilot road
1-6. Evaluate pavement recycling technology
2. Technology transfer
2-1. Prepare pavement recycling manual
2-2. Transfer pavement recycling technology
2-3. Conduct training in Japan
3. Dissemination of the technology
3-1. Conduct periodic steering committee meeting with Bina Marga
3-2. Run a seminar for stakeholders
3-3. Evaluate business model of pavement recycling
1st
▼
2nd
▼
3rd
▼
4th
▼
5th
▼
6th
▼
7th
▼
Procurement Construction
ManufacturingSpecification
Designing of
mix formula
Monitoring
Pilot road
construction
Manufacturing
cost evaluation
Construction
cost evaluation
Evaluation of superiority
Finalize manual
Current skill
evaluation
Draft manual preparation
Training
preparation
Training in Indonesia
Training in
Japan
Evaluation
Kick-off
Interim
reporting Final reporting
Seminar
Draft Finalize business model
RAP collection
Quality test

Try to disseminate asphalt recycling by collaborating with Directorate General of Highways, Ministry of
Public Works as Counterpart (C/P) candidate, and advanced municipals.
5. Verification Survey － Proceeding Formation －
Project
Implementation
Support
Agreement of
Minutes of
Meeting (M/M)
Ministry of Public Works and Housing
Advice Report
Consultants
Pilot Road
Construction
PT. KADII
（Business
partner)
Bina Marga (provincial areas),
PT. Jasa Marga and Pt. Jaya Konstruksi etc.
(National Highway Construction Companies)
Outsource
JICA
Supervise
Bandung
Institute of
Technology
Shape and
Additive Test
Run a seminar
and disseminate
the technology
Bina Marga (C/P candidate)
(Directorate General of Highways, Headquarter)
C/P Candidatelegend
National enterprise or National Institute
(Project site/Cooperator)
Need to be
arranged with
Bina Marga
Sugawara Industry Co., Ltd.

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