NATIONAL POLICY FOR SEAPORT NATIONAL POLICY FOR SEAPORT DEVELOPMENT IN INDONESIADEVELOPMENT IN INDONESIA

NATIONAL POLICY FOR SEAPORT NATIONAL POLICY FOR SEAPORT DEVELOPMENT IN INDONESIADEVELOPMENT IN INDONESIA

Coordinating Ministry For Economic AffairsCoordinating Ministry For Economic Affairs

Keynote AddressKeynote Address

““Partnership in Developing a Competitive Seaport”Partnership in Developing a Competitive Seaport”

Jakarta, March 21Jakarta, March 21--22, 200522, 2005

Coordinating Ministry For Economic AffairsCoordinating Ministry For Economic Affairs

Keynote AddressKeynote Address

““Partnership in Developing a Competitive Seaport”Partnership in Developing a Competitive Seaport”

Jakarta, March 21Jakarta, March 21--22, 200522, 20051

Maritime Transport Trend 1960 - 1990

2

± 40% ofWorld Tonnage

± 25% ofWorld Tonnage

MALACCA STRAIT: MORE THAN 30% OF WORLD CARGO TRAFFIC

20,66519,46815,974SUBTOTAL OF TANKERS

59,31455,96743,965TOTAL REPORTING TRAFFIC

38,64936,49927,991ALL OTHER TRAFFIC

35%35%36%PERCENTAGE OF TANKERS

3,0862,9622,473LNG / LPG

14,27613,34311,474CRUDE / PRODUCT TANKERS

3,3033,1632,027VLCC/DEEP DRAUGHT VESSELS

200120001999BASED ON VESSEL TRAFFIC SYSTEM (PER DAY)

Source : MARINE DEPARTMENT PENINSULAR MALAYSIA 3

4

INTERNATIONAL SHIPPING ROUTE

4 SLOCs• MALACCA : 3 NAVIES JOINT PATROL• SUNDA• LOMBOK• OMBAI - WETAR

Technological & Institutional Changes

• Cost Time Savings• Door to door• Just in Time Shipment of Goods

National Sea Transportation

• Port Construction• Development of national shipping covering : ocean, inter-island,

pioneering, traditional, and special shipping

5

BIMP-EAGA : Shipping Cooperation

6

ISPS Code

The International Ship and Port Facility Security Code to strengthen maritime

security and prevent and suppress acts of terrorism against shipping (ships and port

facilities)

7

PORT CHARACTERISTICS Pelabuhan Laut

Internasional Hub : 2 lokasi (2)

Internasional : 18 lokasi (18)

Nasional : 245 lokasi (75)

Regional : 139 lokasi (16)

Lokal : 321 lokasi (0)

JUMLAH I : 725 lokasi (111) *)

Pelabuhan Penyeberangan : 106 lokasi

Pelabuhan Sungai & Danau : 143 lokasi

Pelabuhan Daratan : 3 lokasi

JUMLAH II : 252 lokasi

TOTAL I + II : 977 lokasi

*) Dikelola oleh PT. PELINDOSource: DG of Sea Communication, 2004

8

GROWTH OF DOMESTIC CARGO

96.9 94.9

119.5

132.7

129.5

147.1 146.5

170.1

133.6

125.1

180.2

152.1

149.9

0

20

40

60

80

100

120

140

160

180

200

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Muatan 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Jumlah Muatan 96.9 94.9 119.5 132.7 129.5 147.1 146.5 170.1 133.6 125.1 180.2 152.1 149.9

Share Kapal Nasional (%) 71.1 66.5 57.7 55.0 58.9 50.6 51.4 53.3 46.4 46.9 50.5 53.0 60.0

Share Kapal Asing (%) 28.9 33.5 42.3 45.0 41.1 49.4 48.6 46.7 53.6 53.1 49.5 47.0 40.0

Juta Juta TonTon

((JutaJuta Ton)Ton)Tahun

Tahun

Source: DG of Sea Communication, 2004

9

No JENIS PERUSAHAANJUMLAH PERUSAHAAN

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003*)

1 ANGKUTAN LAUT 343 521 692 839 939 1,078 1,201 1,307 1,156 1,314 1,465 1,624 1,724 1,794 888 921

Pertumbuhan Rata-rata/Tahun (%)

2 ANGKT LAUT KHUSUS 200 193 258 323 359 399 445 484 397 435 462 494 509 524 237 246

Pertumbuhan Rata-rata/Tahun (%)

3 PELAYARAN RAKYAT 406 420 462 608 616 583 608 635 652 678 685 769 760 760

Pertumbuhan Rata-rata/Tahun (%)

TOTAL 949 1,131 1,412 1,770 1,914 2,060 2,254 2,426 2,205 2,427 2,612 2,887 2,993 3,078

Pertumbuhan Rata-rata/Tahun (%)

GROWTH OF NATIONAL SHIPS

343

521

692

839

939

1,078

1,201

1,307

1,156

1,314

1,465

1,6241,724

1,794

888 921

0

200

400

600

800

1000

1200

1400

1600

1800

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Jum

lah

Per

usah

aan

Ang

kuta

n La

ut

Tahun

Source: DG of Sea Communications, 2004

13,6 %

7,7 %

4,9 %

9,5 % 10

Other Countries Infrastructure Expenses (%of GDP)

5,34

4,394,10

3,533,13 3,12

2,332,78

0,0

1,0

2,0

3,0

4,0

5,0

6,0

1993/1994 1994/1995 1995/1996 1996/1997 1997/1998 1998/1999 2000 2002

Indonesian Infrastructure Expenses(% of GDP)

Trend of Infrastructure Expenses in Indonesia is Declining

0.0

2.0

4.0

6.0

8.0

Indonesia Albania Russia Cambodia Kazakhstan

Private

Public

•Source: World Bank 2004

In 1993/1994, Infrastructure Expenses in Indonesia reached 5.34% of the total GDP, and in year 2002 was only 2.33% of the total GDP.

To reach the GDP’s growth at 6% per year, It needs the infrastructure funding at 5% per year of the total GDP.

Compare to the other developing countries, Indonesia has the lowest level and private participation is not significant

In five years, Indonesia needs Rp 1.303Tn (US$ 145-150 billions) for infrastructure development, with an additional of Rp 36Tn (US$ 4 billions) for Aceh Reconstruction

Comparison between needs and domestic potential funding, including state budget (APBN), shows there is a big financing gap (between Rp810Tn (US$90bn)).

Government and private sector have to make a strategy and optimum alternatives funding scheme to mobilize fund for infrastructure development. 11

Goals :Encouraging acceleration of national infrastructure development by means of domestic or foreign private investment

Objective :To give direction on more integrated measures between government, private sector, and international agencies in the acceleration of national infrastructure development

Next summit

Infrastructure Summit 2005

“ A WORLD FORUM – A NATIONAL PRIORITY”Conference & Exhibition : 14-15 November 2005

12

2888

5897

160077.3

372

9,428

1485

709

0

5000

10000

15000

20000

25000

Open for Private Investment

6

12

1

24

38

14

5

0

10

20

30

40

50

60

70

80

90

100

Open for Private Investment

US$ million

Toll Road

Electricity

Gas

Telecommunnication

Railway, Seaport & Airport

Water

Investment Opportunities 2005

• Investment needs from “commercially viable”, or has the relative low Public Service Obligation rate and “open” for private investment

• Including projects in Gas, Electricity,Telecommunication, Seaport, Airport, Rail ways, Water and Toll Road sector

US$ 22.46 Billions 91 Projects

Infr

astr

uctu

re S

umm

it 20

05

MAR 2005 I COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

13

Operation of IIF

> 1 years

REGULATORYREFORM

INFRASTRUCTURE INVESTMENT

0 – 1 year

COMMUNICATION

Demonstration Project

Project Development Facilities (PDF)

EstablishmentIndonesia InfrastructureIndonesia (IIF)

Infrastructure Fund

Sectoral Regulatory Reform

Financial Sector Regulatory Reform

Construction Industry Regulatory Reform

Other Supporting Sector Regulatory Reform

Cross Sectoral Regulatory Reform

Public Private Partnership (P3) Strategy

PDF: PPP project preparation facilities to assist project proponent in preparing project memorandum to be offered to private sector

Infrastructure Road Map

14

SEA COMMUNICATIONINFRASTRUCTURE DEVELOPMENT

ACCELERATION PROGRAM(Private Sector Participation)

PRIORITY NO.

PROGRAMS ESTIMATED COST

(Rp. Million)

COST ALLOCATION

1. Tanjung Priok Port Development 4,596,840 Government, SOE,

Private2. Bojonegara Port Development (Phase-I) 1,909,160 Government,

SOE, Private3. Tanjung Perak Port Development at

Kalilamong1,559,923 Government,

SOE, Private 4. Balikpapan Port Development 648,000 Central and Local

Government, SOE, Private

TOTAL 8,713,923

Source: Dirjen Perhubungan Laut, 2004 15

PSP PROJECTS OF PT.PELINDO II

PSP PROJECTS OF PT.PELINDO III

16

Revision of Presidential Decree No. 7 / 1998

Aim :

To provide general framework on the Cooperation Between the Government and Private Sector for the Development and For Management of Infrastructure, including guideline on the processes for procuring private investment in infrastructure consistent across sectors

Principles :

Competitive,

Transparent,

Fair and

Accountable

process can be established,

1

2

3

4

17

KKPPI - Komite Kebijakan Percepatan Pembangunan Infrastruktur

Committee on Policy for the Acceleration of

Infrastructure Development

Sub Committeefor

Planning & Investment

Sub Committee for

PDAM Restructuring

Sub Committee for Sea

Transportation

Other Sub Committee

Working Groupfor

Planning & Investment

Working Groupfor

PDAM Restructuring

Working Groupfor Sea

Transportation

Organizational Structure :Chairman :Coordinating Minister For Economic Affairs

Deputy Chairman 1 :Minister of Settlement & Regional Infrastructure

Deputy Chairman 2 :Minister of Communications

Members :Minister of Home Affairs, Minister of Finance, Minister of Energy and Mineral Resources, Minister of Industry & Trade, Minister of Agriculture, Minister of Acceleration in Eastern part of Indonesia, Head of National Development Planning Agency (Bappenas), Head of Capital Investment Coordinating Board

The Tasks:

1. To formulate policies and strategies for the acceleration of infrastructure development2. To coordinate the Infrastructure development plans & programs, and monitor the

implementation of various sector policies3. To determine efforts required to solve various issues relating to infrastructure development

Presidential Decree No. 81/2001

18

REVISION OF TRANSPORTATION LAW

Law No. 21/1992 on ShippingREVISED DRAFT OF

LAW NO. 21/1992

• Public port is operated by Government and its operation can be delegated to the State Owned Company

• Private sector may operate public port as long as in cooperation with State Owned Company

• Sea transportation activities to be conducted based on Government License

• Public Port can be operated by Central Government or Local Government (Province, municipal/city) which can be conducted by Indonesian Legal Entity without cooperation with State Owned Company.

• The Company that domicile and operate between ports in the territory of a municipal/ city should has license from municipal government/mayor

• The Company that operate between ports across municipal/city should has license from Governor

• The Company that operate between ports across provinces and international should has license from Director General of Sea CommunicationsSource: Minister of Communications, 2004 19

LawNo. 21/1992

Revision of Law No. 21/1992

Gov. RegulationNo. 01/1998

Gov. RegulationNo. 82/1999

Gov. RegulationNo. 07/2000

Policy Reform/ Re-regulation Process

Gov. Reg. No. 69/2001(Bridging Regulation)

Gov. RegulationNo. 70/1996

Gov. RegulationNo. 81/2000

Gov. RegulationNo. 51/2002

External Strategic Influences

National Regional Global

Regional Autonomy

AFTA 2003

APEC

IMO

WTO

POLICY REFORM AND REGULATION FRAMEWORKOF SEA TRANSPORTATION

POLICY REFORM AND REGULATION FRAMEWORKOF SEA TRANSPORTATION

Presidential Decree onMORTGAGE LAW

Presidential Instruction on Empowerment

of National Maritime Industry

Source: Dirjen Perhubungan Laut, 2004 20

Thank You

21

22

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Cont

aine

r Thr

ough

put (

'000

TEU)

MN

Completion of New Container Berths

Bojonegara OperationDemand of Export / Import Container

Tanjung Priok Rehabilitation

Necessary Capacity to be added

Tanjung Priok Capacity

Bojonegara Tanjung Priok

BOJONEGARA:THE NEW INTERNATIONAL HUB PORT

23

24

TANJUNG PRIOK PORT DEVELOPMENT

100 200 500 1,000m

JL. STASIUN TANJUNG PRIOK

JL. P

ENJA

LAI

JL. LAKS. RE MARTADINATA

JL. PELABUHAN RAYA

JL. P

ANA

ITA

N

JL. P

ADA

MA

RAN

G

JL. A NGIN PRAHARA

JL. RAY

A CAKU

NG CILINCING

STA. KERETA API

PT PELINDO II

KOMPLEKTNI-AL

KOMPLEKAIRUD

PERT

AM

INA

4.5ha 5.8ha

783m 590m

-14m300m

R1120m

2L(400m)

250m

200m

250m

80m

192m

57m

277m

552m

-14m560m

Port Inner Road Improvement

100 200 500 1,000m

100 200 500 1,000m

400m-12m

Breakwater Relocation Demolition

Automobile (Car) terminal Development

Widening Channel & Basin (Dredging)

-10m

-10m

Project Components for JBIC Loan

Expanding Turning Basin(to accommodate larger vessels)

Relocation of Breakwater (accompanied with widening and expanding channel/basin)

Widening Access Channel to Double-way(to increase the port capacity of ship calls as well as to accommodate larger vessels)

Improvement of Port Related Road (to reduce congestion and secure smooth efficient cargo traffic)

(Development of Access Road) (will be implemented by Kimpraswill (Bina Marga))

Development of Dedicated Automobile Terminal (to meet urgent need of export/import automobiles in AFTA)

Widening North Channel to Double-way(to increase the port capacity of ship calls as well as to accommodate larger vessels)

Relocation of Breakwater (accompanied with widening channel)

(JORR North Extension) (will be implemented by Kimpraswill (Bina Marga))

25

BALIKPAPAN PORT DEVELOPMENT

26

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

Cont

aine

r Thr

ough

put (

'000

TEU)

MN

Completion of New Container Berths

Bojonegara OperationDemand of Export / Import Container

Tanjung Priok Rehabilitation

Necessary Capacity to be added

Tanjung Priok Capacity

Bojonegara Tanjung Priok

BOJONEGARA:THE NEW INTERNATIONAL HUB PORT

27

MAJOR INTERNATIONAL CARGO TRAFFIC ROUTES

28

OIL & GAS CARGO

Population 220 million with 62% of Population living in Java

(7% area of the nation)

Land area approx 2 million km2, territorial sea approx 3.1 km2, and ZEE around 2.7 million km2

Uneven population distribution and naturalresources require regional approach in

infrastructure development to ensure compatibility and compromise all sector

and spatially.

Coastal line 81.000 km

Geographic and Demographic NaturesBiggest Archipelago Country with 17.000 islands

29

PERKEMBANGAN MUATAN ANGKUTAN LAUT LUAR NEGERI

133.3 138.2166.3 180.8

216.7

238.7

278.2

337.1

267.1 266.8

338.8364.5

412.7

0

50

100

150

200

250

300

350

400

450

1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Jumlah Muatan 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001

Total Export/ Import 132.3 138.2 166.3 180.8 216.7 238.8 278.2 337.1 267.1 266.8 338.8 364.5 412.7

Share PerusahaanPelayaran Nasional (%)

2.48 3.96 3.64 3.41 3.17 3.42 2.15 6.59 3.85 3.52 4.79 4.62 5.45

Tahun

Juta Ton

(Juta Ton)

Tahun

Source: DG of Sea Communication, 2004

30

Challenges in Infrastructure Development in Indonesia

Comprehensive strategy to accelerate the development of infrastructure: (1) to improve public management of infrastructure, (2) to improve coordination with the regional authorities, (3) to restore private participation, (4) to do regulatory reforms, and (5) to mobilize finance for infrastructure development

The objective is to emphasize that the government has overall an strategy to restore the government credibility and to attract private investment:

a) Improve public management in infrastructure (Making the public management more effective and efficient, Making decentralization work, Refocus of role of central authorities: planning and control)

b) Improve coordination with regional authorities (Capacity building of regional authorities, Refocus of role of regional authorities: implementation of services, Regional authorities as partners in infrastructure development)

c) To restore private participation (Create a better investment environment, Offer viable and financially attractive opportunities, Provide public support for private projects)

d) Implementation of regulatory reforms (Decentralization process and role of central government, Re-attracting private investors and operators in infrastructure development, Re-devising mechanism to help the poor to have better access to infrastructure services)

e) Mobilization of finance for infrastructure development (Increasing capital expenditures from the government, Mobilizing of domestic finance, Attracting international investors and lenders).

Source: Bappenas, 2004

31

Status Proyek-Proyek yang ditawarkan ke Swasta

Sektor Proyek PQ Tend Imp Status

Pelabuhan

• Bojonegara Seaport Development Phase 1

NA NA NA

- Pendanaan Pemerintah Pusat dan PT (Persero) Pelindo II sangat terbatas, sehingga diperlukan biaya investasi dari pihak Swasta untuk membiayai pembangunan Pelabuhan Bojonegara;

- Diputuskan dalam Rakortas bahwa proyek-proyek yang comercialy viable agar diberikan saja kepada swasta, dalam hal pembangunan pelauhan Bojonegara, pemerintah hanya akan membangun infrastruktur dasar dan tidak membebani APBN.

• East Ancol Seaport Development NA NA NA

• Berdasarkan hasil Rakortas, Proyek ini dipisah menjadi pembangunan pelabuhannya dan pembangunan untuk Car Port.

Pembangunan Pelabuhan Tanjung priok diputuskan agar dipercepat pelaksanaannya, dengan melakukan langkah-langkah (1) menyelesaikan permasalahan pembebasan lahan (hal ini akan diselesaikan dalam waktu 2 minggu) dan (2) pembangunan Car Port agar dilaksanakan terlebih dahulu.

• Kali Lamong Surabaya Seaport Development

Feb-06 Jun-06 Oct-06

Terdapat permasalahan bahwa Pemerintah Propinsi berkeinginan memindahkan letak pelabuhan di Madura, sedangkan pemerintah tetap menginginkan letak pelabuhan di Kali Lamong. Permasalahan ini sedang dikaji secara independen oleh Dephub dan JICA.

• Balikpapan Seaport Development May-06 Oct-06 Jan-07Penawaran tender yang dilakukan adalah penawaran menjadi strategic Partner bagi Joint Venture Company.

MAR 2005 I KEMENTERIAN KOORDINATOR BIDANG PEREKONOMIAN

Ditawarkan Pada Tahap I : Bulan Maret 2005

32

Seaport Development Projects

Kali Lamong Surabaya Seaport

Bojonegara Seaport

Balikpapan Seaport

East Ancol Seaport

33

PORTS MANAGEMENT SYSTEMACCORDING TO GOVERNMENT REGULATION NO. 69/2001

34

Government Policies To Encourage The Port Development

• Infrastructure Summit 2005

• Increase Role of Private Sector

• Support Role of Regional Government

35

36

National Development Plan• Growth of Economy• Welfare for Indonesian Society• Peaceful and Prosperous

Transport Development• Improve Passengers and Freight Movement• Assist Economic Development• Integrate national Population• Upgrade National Defense• Energy - Efficient

Transport Development must be guided by its basic role as major channel for social, economic, tourism, and defence activities