3rd Steering Committee

JABODETABEKJABODETABEK Metropolitan Priority Area (MPA)Metropolitan Priority Area (MPA)

October 2012October 2012

MPA Committees2011 2012

3 … 6 7 8 9 10 … 1 … 4 5 6 7 … 10

Steering Committee (SC)Steering Committee (SC) …

1st SC (Approval of 17 FTPs) : held prior to the Study …

2nd SC (Approval of VISION 2030) …

3rd SC (Approval of Masterplan)

Technical CommitteeTechnical Committee Steering CommitteeSteering CommitteeSubSub--technical Mtg/Sector Meetingtechnical Mtg/Sector Meeting

Chronology of MPA Master Plan Chronology of MPA Master Plan

Today3rd SC (Approval of Masterplan)

Technical Committee (TC)Technical Committee (TC) …

1st TC (Kick-off) …

2nd TC (Inception Report) …

3rd TC (VISION 2030/List of PPs) …

4th TC (MP 2020/Progress of FTPs) …

55thth TC TC (List of PPs)(List of PPs) …

6th TC (Finalization)

Monitoring of Progress of FTPsMonitoring of Progress of FTPs …

Note: FTPs: Fast Track Projects, PPs: Priority Projects

- Prior to the committees, sub-technical committees/sector meetings have been held as appropriate. 22

Today

AGENDAAGENDA

I. MPA Master Plan toward 2020:(T/C’s Recommendation(1)): to consent MPA Masterplan.

II. Fast-Track Projects and Priority Projects(T/C’s Recommendation(2)):to continue to monitor the

33

(T/C’s Recommendation(2)):to continue to monitor the implementation; and to agree 5 flagship projects.

III. The Further Way Forward(T/C’s Recommendation(3)): to set up the mechanism and

framework to accelerate the implementation.

(Summary)(Summary)

I. MPA Master Plan toward 2020I. MPA Master Plan toward 2020

1. Background of the Study2. Current situation of JABODETABEK MPA3. Current condition of Infrastructure

44

3. Current condition of Infrastructure4. Vision toward 20305. Strategies for M/P toward 20206. Masterplan (M/P) toward 2020 by Sectors

How will MPA Master Plan be integrated into MP3EI? How will MPA Master Plan be integrated into MP3EI?

National LongNational Long--Term Term Development Plan Development Plan (RPJPN 2005(RPJPN 2005--2025)2025)

National LongNational Long--Term Term Development Plan Development Plan (RPJPN 2005(RPJPN 2005--2025)2025)

National Spatial National Spatial Plan (RTRWN)Plan (RTRWN)

National Spatial National Spatial Plan (RTRWN)Plan (RTRWN)

Spatial Planning Spatial Planning SystemSystem

Regional Spatial Regional Spatial Plan Plan

JabodetabekJabodetabek--

Regional Spatial Regional Spatial Plan Plan

JabodetabekJabodetabek--

Financial & Planning SystemFinancial & Planning System

Master Plan of Master Plan of Acceleration and Acceleration and

Expansion of Indonesia Expansion of Indonesia Economic Development Economic Development

Master Plan of Master Plan of Acceleration and Acceleration and

Expansion of Indonesia Expansion of Indonesia Economic Development Economic Development

1. Background of the Study 1. Background of the Study -- Position of MPA Master Plan Position of MPA Master Plan --

National MediumNational Medium--Term Term Development Plan Development Plan

(RPJMN 2010(RPJMN 2010--2014)2014)

National MediumNational Medium--Term Term Development Plan Development Plan

(RPJMN 2010(RPJMN 2010--2014)2014)

Government Work Plan and Government Work Plan and Draft Budget Revenue Draft Budget Revenue

Expenditure (RKP/RAPBN)Expenditure (RKP/RAPBN)

Government Work Plan and Government Work Plan and Draft Budget Revenue Draft Budget Revenue

Expenditure (RKP/RAPBN)Expenditure (RKP/RAPBN)

Spatial Plan for Spatial Plan for Province/DistrictProvince/DistrictSpatial Plan for Spatial Plan for

Province/DistrictProvince/District

punjurpunjur

(Presidential (Presidential Decree Decree

No.54/2008)No.54/2008)

punjurpunjur

(Presidential (Presidential Decree Decree

No.54/2008)No.54/2008)

Economic Development Economic Development (MP3EI)(MP3EI)

Economic Development Economic Development (MP3EI)(MP3EI)

Master Plan for Establishing Master Plan for Establishing Metropolitan Priority Area Metropolitan Priority Area (MPA) for Investment and (MPA) for Investment and

IndustryIndustry

Source: MPA Study Team, based on MP3EI documentSource: MPA Study Team, based on MP3EI document55

1. Background of the Study 1. Background of the Study –– Future GDP Growth in MP3EI Future GDP Growth in MP3EI --

Plans for Indonesia’s GDP Growth in MP3EI

66Source: MP3EI

Six economic corridors were formulated in MP3EI. Six economic corridors were formulated in MP3EI. 1. Background of the Study1. Background of the Study - Economic Corridors in MP3EI -

Source: MP3EI

77

How will MPA contribute to Economic Corridor in MP3EI?How will MPA contribute to Economic Corridor in MP3EI?1. Background of the Study1. Background of the Study - MPA’s Contribution to MP3EI -

Hubs and NodesHubs and Nodesin Java and Sumatra in Java and Sumatra Economic CorridorsEconomic Corridors

Source: MP3EI88

JAKARTA

1. Background of the Study1. Background of the Study -- Current Position of Indonesia Current Position of Indonesia --

Rank (out of 142 countries)

Glo

bal C

ompe

titiv

enes

s

Goo

ds m

arke

t effi

cien

cy

Labo

r mar

ket e

ffici

ency

Tech

nolo

gica

l rea

dine

ss

Bus

ines

s So

phis

ticat

ion

a) Rank of Competitiveness-related Index b) Annual Change of FDI/GDP Ratio

12%

Vietnam

Indonesia needs to be more attractive destination for investors than other countries to catch more FDI.

99

Glo

bal C

ompe

titiv

enes

sIn

dex

2011

-201

2

Inst

itutio

ns

Infra

stru

ctur

e

Mac

roec

onom

icen

viro

nmen

tH

ealth

and

prim

ary

educ

atio

nH

ighe

r edu

catio

n an

dtra

inin

g

Goo

ds m

arke

t effi

cien

cy

Labo

r mar

ket e

ffici

ency

Fina

ncia

l Mar

ket

deve

lopm

ent

Tech

nolo

gica

l rea

dine

ss

Mar

ket s

ize

Bus

ines

s So

phis

ticat

ion

Inno

vatio

n

Singapore 2 1 3 9 3 4 1 2 1 10 37 15 8Malaysia 21 30 26 29 33 38 15 20 3 44 29 20 24China 26 48 44 10 32 58 45 36 48 77 2 37 29Thailand 39 67 42 28 83 62 42 30 50 84 22 47 54Indonesia 46 71 76 23 64 69 67 94 69 94 15 45 36India 56 69 89 105 101 87 70 81 21 93 3 43 38South Africa 50 46 62 55 131 73 32 95 4 76 25 38 41Brazil 53 77 64 115 87 57 113 83 43 54 10 31 44Vietnam 65 87 90 65 73 103 75 46 73 79 33 87 66Russian Federation 66 128 48 44 68 52 128 65 127 68 8 114 71Philippines 75 117 105 54 92 71 88 113 71 83 36 57 108

-4%

-2%

0%

2%

4%

6%

8%

10%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Indonesia

Cambodia

Vietnam

Philippines

Thailand

LaoPDR

Malaysia

Source: World Economic Forum, Global Competitiveness Report 2011-2012

2. Current Situation of JABODETABEK MPA2. Current Situation of JABODETABEK MPA2.1 Social Situation2.1 Social Situation

a) Population Density (2010)people/ha

Population density is the highest in DKI Jakarta, but population growth in other MPA areas is larger than that in DKI Jakarta.

b) Population Growth Rate (2000-2010)

City / Regency Area(km2)

Population

2000 2010Annual

growth rate2000-2010

JABODETABEK MPA 6,400.71 21,232,069 27,951,404 2.79%

DKI Jakarta 664.01 8,389,443 9,588,198 1.34%

MPA East 1,480.00 3,332,296 4,966,040 4.07%

MPA South 2,981.77 5,403,048 7,456,375 3.27%

MPA West 1,274.93 4,107,282 4,900,771 3.76%

Source: Central Statistical Bureau

Source: Central Statistical Bureau1010

Source: Central Statistical Bureau

MPA East: Kota Bekasi Kab. Bekasi

MPA South: Kota DepokKota BogorKab. Bogor

MPA West : Kota TangerangKota Tangerang SelatanKab. Tangerang

5%

2. Current Situation of JABODETABEK MPA2. Current Situation of JABODETABEK MPA

MPA South8%

MPA East

MPA West9%

a) Share of GRDP by Area b) Sectorial Composition of GRDP in the Cities/Regencies

2.2 Economic Situation2.2 Economic Situation

JABODETABEK

Agriculture, Forestry, Fisheries Mining and Quarrying ManufacturingUtilities Construction Trading, hotels and restaurantsTransportation and communications Finance, Ownership and Businesses Services

Finance, Ownership,

Source: Compiled from BPS documents

DKI Jakarta71%

MPA East12%

Source:Compiled from BPS documentsMajority of the economic activities concentrate in DKI Jakarta. The production of MPA East is heavily

dependent on the manufacturing sector. 1111

DKI Jakarta

MPA East

MPA South

MPA West

Manufacturing

Trading, hotels and restaurants

3. Current Condition of Infrastructure3. Current Condition of Infrastructure

67.5

62

61

Shanghai

New Delhi

Kuala Lumpur

DKIJakarta

DKIJakarta

Kota TangerangKota Tangarang S.

Kab. Tangerang

Kota TangerangKota Tangarang S.

Kab. Tangerang

Kota BekasiKab. BekasiKota BekasiKab. Bekasi

(2002) 247(2010) 344

(2002) 262(2010) 423

1.4(2010/2002)

1.6(2010/2002)

3.1 View from Transportation3.1 View from Transportation

a) Increment of Commuter Traffic Trip b) Commuter Satisfaction

of Public Transport in Major Asian Cities

1212

60.5

60.5

54.5

36.5

30.5

0 20 40 60 80

Beijing

Tokyo

Singapore

Seoul

Jakarta

Journey Experience Index

(Source: Frost & Sullivan, Journey Experience Index, May 2011)

Kota DepokKota BogorKab. Bogori

Kota DepokKota BogorKab. Bogori

(2002) 234(2010) 338

(unit) 1,000

BODETABEKDKI Jakarta(2002) 743(2010) 1,105

BODETABEKDKI Jakarta(2002) 743(2010) 1,105

(2010/2002)

1.4(2010/2002)

(2010/2002)

1.5(2010/2002)

(Source:JUTPI)

Traffic congestion is very serious especially in the peak hours by commuter traffic. Commuters in Jakarta are reported

to be least satisfied travelers among major cities in Asia.

3. Current Condition of Infrastructure3. Current Condition of Infrastructure3.2 View from Disaster Prevention3.2 View from Disaster Prevention

a) Flood Inundation Area in 2007 b) Vulnerability against Natural Catastrophe in Major Asian Cities

Seoul

Singapore

Tokyo

Shanghai

Hong Kong

Source: Balai Besar Wilayah Sungai Chiliwung- Cisadane

1313

(Source: Munich RE (2005), Megacities – Megarisks Trends and challenges for insurance and risk Management )

Jakarta is seriously affected by flood disaster periodically.

Disaster prevention facilities against flood, earthquake and other natural disaster are insufficient.

0 2 4 6 8 10

Jakarta

Manila

Delhi

Bangkok

Seoul

Vulnerability Index

Favorable Unfavolable

Internal

STRENGTH

• Political and economic capital

• 28 million population

• Six cities/urban centers

WEAKNESS

• Pertinent traffic jams

• Large population and rapid growth

• Shortage of electricity and water

• Water pollution

• Shortage of solid waste treatment

Switch to Multi-Core urban structure

Resilient capital with multiple

gateways

Needs basedon SWOT

Growth

High

4. Vision toward 2030 4. Vision toward 2030 -- SWOT Analysis Results SWOT Analysis Results --

DevelopmentConcept

treatment

• Vulnerable to natural disasters

External

OPPORTUNITY

• Large population

• Robust economy

• Abundant natural resources

• Huge market of ASEAN

• Acceleration of market integration and economic partnership

THREAT

• Low competitiveness for FDI

• Insufficient infrastructure

• Weak technology and innovation

• Investment to other countries

• Risk of global warming

gateways

Promote high-tech high value industry

Need to adapt to low-carbon

society

High quality of Life

Eco-friendlin

ess

1414

High Quality of LifeHigh Quality of Life••CleanClean••SafeSafe••SmartSmart

A1. Development of MRTA1. Development of MRT--based New Urban based New Urban Transport SystemTransport System

A2. Development of Road Network in and around A2. Development of Road Network in and around JakartaJakarta

A3. Promotion of Urban ReA3. Promotion of Urban Re--DevelopmentDevelopment

A4. Improvement of Water Supply and Sewerage A4. Improvement of Water Supply and Sewerage SystemSystem

A5. Solid Waste TreatmentA5. Solid Waste Treatment

A6. Flood ManagementA6. Flood Management

B1. Development of New Growth SubB1. Development of New Growth Sub--Corridor for Corridor for

A. Better Urban A. Better Urban EnvironmentEnvironment

GrowthGrowthInclusiveInclusive

•• EfficientEfficient•• SynergeticSynergetic•• ResilientResilient

Development ConceptDevelopment Concept GoalsGoals ProgramsPrograms

4. Vision toward 2030 4. Vision toward 2030 -- Concepts, Goals, Programs Concepts, Goals, Programs --

EcoEco--FriendlinessFriendliness••Low CarbonLow Carbon••Energy SavingEnergy Saving

B1. Development of New Growth SubB1. Development of New Growth Sub--Corridor for Corridor for Jabodetabek MPAJabodetabek MPA

B2. Development of New Academic Research B2. Development of New Academic Research ClusterCluster

B3. Development of Road/Railway along New B3. Development of Road/Railway along New Growth SubGrowth Sub--Corridor for Corridor for JabodetabekJabodetabek MPAMPA

C1. Development of Cilamaya PortC1. Development of Cilamaya Port

C2. Improvement of Tanjung Priok PortC2. Improvement of Tanjung Priok Port

C3.Development of New International AirportC3.Development of New International Airport

C4.Improvement of C4.Improvement of SoekarnoSoekarno--HattaHatta International International AirportAirport

D1.LowD1.Low--Carbon Power Supply DevelopmentCarbon Power Supply Development

D2.Development of Smart GridD2.Development of Smart Grid

B. New Growth SubB. New Growth Sub--Corridor for Corridor for JabodetabekJabodetabek MPAMPA

C. Multiple GatewayC. Multiple Gateway

D. LowD. Low--Carbon Carbon Energy Energy DevelopmentDevelopment

••InclusiveInclusive••BalancedBalanced••High valueHigh value--addedadded

•• EfficientEfficient•• SynergeticSynergetic•• ResilientResilient

Source: MPA Development VISION approved by Steering Committee on 22 September 2011

•• EfficientEfficient•• SynergeticSynergetic•• ResilientResilient

1515

Tangerang DKI JakartaPaddy field Paddy field

Paddy field Paddy field

Bekasi

- National Capital- Government- Center of Commerce and Business

- International Gateway

- New Towns - Gateway to Banten/

Sumatra - Industrial Estate- Gateway to

Central & East Java

4. Vision toward 2030 4. Vision toward 2030 -- Regional Characteristics and Constraints Regional Characteristics and Constraints --

Bogor

Depok

Tangerang Selatan

Source: MPA Study Team based on Regional Spatial Plan Jabodetabek-punjur (Presidential Decree No.54/2008)

Environment Environment conservation conservation

areaarea

- New Towns

- Hill Area- Botanical Garden- Water Source of Jakarta

- Agriculture Univ.

- Universities

Environment Environment conservation conservation

areaarea

1616

Central City

Sub-

Sub-Center

Sub-Center

Single-Core Structure Multi-Core StructureOver

congestion Adopted

Sub-Center

Central City

Transformation from Single-Core Structure to Multi-Core Structure

4. Vision toward 2030 4. Vision toward 2030 -- Future Spatial Structure Future Spatial Structure --

Sub-Center

Heavy concentration in the central city

Need extensive mass transit systems to support (e.g. Tokyo)

Vulnerable to disasters

Difficult to protect nature

Less traffic concentration

Easier to protect nature

More resistant to disasters

Source: MPA Study Team Source: MPA Study Team

1717

4. Vision toward 2030 4. Vision toward 2030 -- MPA Development Vision 2030 MPA Development Vision 2030 --

JABODETABEK MPA Development Vision 2030JABODETABEK MPA Development Vision 2030

Jakarta

Existing Gateway

Proposed

WEST

NORTHExisting Gateway

TangerangTangerang

TangerangTangerangSelatanSelatan

Tanjung Priok Port

Soekarno Hatta Airport

Source: MPA Development Vision 2030 approved by Steering Committee on 22 September 2011 1818

Jakarta

Proposed Gateway

Proposed Gateway

SOUTH

EAST

DepokDepok

BogorBogorBekasiBekasi

KarawangKarawang

Cilamaya New Port

0

10

20

30

40

50

60

70

80

Tokyo (pop. 8.84 million)

Seoul (pop. 9.78 million)Singapore (pop. 4.74 million)

Mumbai(pop. 18.84 million)

Bangkok (pop. 6.90 million)

Mod

al S

hare

of T

rain

(%

)

Population Size

5 million

BETTER

WORSE

5. Strategies for M/P toward 2020 5. Strategies for M/P toward 2020

a) Modal Shares

5.1 Comparison with Other Metropolitan Cities5.1 Comparison with Other Metropolitan Cities

Modal share ratio of Jakarta is quite lower level than other countries.

-20

-10

0

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000

Shanghai (pop. 16.34 million)Ho Chi Minh

(pop. 5.98 million)Metro Manila

(pop. 11.50 million)

Population Density (persons/km2)

Jakarta(pop. 9.6 million)

Source: World Economic Forum, Global Competitiveness Report 2011-2012

1919

b) Container Throughput

1.31 2.55

1.595.09

4.45 1.16

1.142.16

1.52

1.23 3.41 1.53

5,000

10,000

15,000

20,000

25,000

30,000 To

kyo

Inch

on

Bus

an

Tian

jin

Sha

ngha

i

Hon

g K

ong

Ban

gkok

Laem

Cha

bang

Sin

gapo

re

Man

ila

Jaw

ahar

lal N

ehru

Tanj

ung

Prio

k

Tokyo Seoul Beijing ShanghaiHong Kong Bangkok Singapore Manila New Delhi Jakarta

Con

tain

er T

hrou

ghpu

t(T

hous

and

TEU

s)

2000 2005 2009

Source: Containerisation International Yearbook (Informa)

Indonesia is lagging compared with neighbor countries.

Jakarta

Manila

Delhi

Ho Chi Minh

Bangkok

Shanghai

Piped Water Coverage

Access to Sewerage

5. Strategies for M/P toward 2020 5. Strategies for M/P toward 2020

c) Water Supply/Sewerage Facilities d) Waste Collection Ratio

5.1 Comparison with Other Metropolitan Cities5.1 Comparison with Other Metropolitan Cities

75

80

85

90

95

100

Jakarta

Was

te C

olle

ctio

n Ra

tion

(%)

Hanoi

Deli

Shanghai

Manila

DKI

Seoul

Tokyo

Hong Kong

Singapore

0 20 60 80 10040 (%)

2020

Source: MPA Study Team based on Asian Green City Index (Economist Intelligence Unit)

Source: Water Knowledge Center, ADB

Ratios of piped water coverage and access to sewerage are among the lowest in the major Asian cities.

Waste collection ratio of DKI Jakarta is relatively high. But the ratio of outside Jakarta varies from 23% to 72%.

50

55

60

65

70

75

0 1000 2000 3000 4000 5000

GDP (US$/Person)

Was

te C

olle

ctio

n Ra

tion

(%)

Population

10 million

5 million

5.2 Infrastructure Needs of Industries (Investors)5.2 Infrastructure Needs of Industries (Investors)

5. Strategies for M/P toward 2020 5. Strategies for M/P toward 2020

InfrastructureSectors

Needs of 4 Major Industries to Infrastructure Development

Automobile Electric and Electronics

Chemical Machinery

RoadHighway *** *** ***** *****Local Road ***** *** *** *****

2121

***** *** *** *****Seaport *** *** ***** *Airport * ***** * *Power Supply *** ***** * *****Water Supply / Sewerage *** *** *** ***

Note: *****: Very important, ***: Important, *: Less importantSource: Compiled based on Private Sector Perceptions of Challenges and Opportunities by Japanese Infrastructure Users by JBIC and NRI

MEASURESto achieve GOALS

A. Better Urban Environment

Mitigation of traffic congestion

Prevention of environmental pollutions

Urban greening

Stable water supply

Mitigation of flood disaster

GOALSin VISION 2030

1. Public Transportation

6. Water Supply and Sewerage

2. Road

5. Urban Development/Industrial Estate

7. Solid Waste Treatment

8. Flood Control

9 Infrastructure Sectorscorresponding to MEASURES

5.3 Infrastructure Development in MPA VISION5.3 Infrastructure Development in MPA VISION

A1. Development of MRT-based New Urban Transport System

A4. Improvement of Water Supply and Sewerage Systems

A6. Flood Management

A2. Development of Road Network in and around Jakarta

A3. Promotion of Urban Re-development

A5. Solid Waste Treatment

PROGRAMSto achieve GOALS

Development Strategies for M/P toward 2020

B. New GrowthSub-Corridorfor JABODETABEK MPA

Transformation to multi-core urban structure

Promotion of high-tech and value-added industries

C. Multiple Gateways

D. Low-carbon Energy Development

Improvement of existing logistic hubs

Development of new logistic hubs

Energy saving

Formulation of structure for the sub-corridor

8. Flood Control

5. Urban Development/Industrial Estate

1. Public Transportation

2. Road

3. Seaport

4. Airport

9. Power Supply

B1. Development of New Growth Sub-Corridor for Jabodetabek MPA

B2. Development of New Academic Research Cluster

C1. Development of Cilamaya PortC2. Improvement of Tanjung Priok

Port

C3. Development of New International Airport

D1. Low-carbon Power Supply Development

D2. Development of Smart Grid

B3. Development of Road/Railway along New Growth Sub-Corridor for Jabodetabek MPA

C4. Improvement of Soekarno-Hatta International Airport

2222

SECTORS TARGET EFFECT INDICATOR BY M/P(from 2010 to 2020)

MAJOR PROJECTS LISTED IN M/P

Public Transportation

Increase passenger movement by Railway/Bus 27 % to 45 %

Development of MRT-based new urban transport systems, development of railway along the new growth sub-corridor, and railway access to Soekarno-Hatta International Airport

6. Master Plan (M/P) toward 2020 by Sectors 6. Master Plan (M/P) toward 2020 by Sectors

RoadAverage vehicle speed in the morning peak

7 km/hour to 15 km/hour

Development of road network in and around Jakarta, traffic flow improvement and transportation demand management, development of access road to seaport and airport, etc.

Urban Development

Accelerate multi-core urban development 4 million people in new urban at Suburban

Areas

4 million people will live in new urban at suburban areas, mainly through new township development.

2323For more detail of the projects, see attached

“List of Fast Track Projects (FTPs) and Priority Projects”

SECTORS TARGET EFFECT INDICATOR BY M/P(from 2010 to 2020)

MAJOR PROJECTS LISTED IN M/P

Industrial Estate

Expedite the industrial estates development 6,800 ha at Suburban Areas

New industrial estate attracting high-value-added industries are to be developed, by taking the advantages of the agglomeration of the existing industrial estates and future gateway developments such as new airport and new seaport.

Water SupplyImprove piped water service coverage

(DKI Jakarta) 54 % to 77%

Development of water supply systems, such as Jatilufur Project (Phase I and Phase II) and their distribution system.

6. Master Plan (M/P) toward 2020 by Sectors 6. Master Plan (M/P) toward 2020 by Sectors

54 % to 77% distribution system.

SewerageImprove sewerage coverage ratio

2% to 20%Development of sewerage system in DKI Jakarta.

Solid WasteTreated/disposed volume

4,500 ton/day to 9,000 ton/dayDevelopments of new landfill site and intermediate treatment facilities.

Flood ControlCapacity of discharging flood water to the sea

Pumping capacity (60 m3/s to 126 m3/s)Development of urban drainage systems, and reconstruction of East Pump Station at Pluit, etc

2424For more detail of the projects, see attached

“List of Fast Track Projects (FTPs) and Priority Projects”

SECTORS TARGET EFFECT INDICATOR BY M/P(from 2010 to 2020)

MAJOR PROJECTS LISTED IN M/P

SeaportInternational/Domestic container cargo

capacity 7.2 million TEUs to 11.6 million TEUs

Improvement and expansion of the existing facilities at Tanjung Priok and development of a new international port at Cilamaya.

6. Master Plan (M/P) toward 2020 by Sectors 6. Master Plan (M/P) toward 2020 by Sectors

AirportAnnual passengers capacity

22 million to 90 million

Expansion of the facilities at Soekarno-Hatta International Airport and development of new airport.

Power SupplySecure Reserve Margin for Peak Demand

More than 30%Development of coal-fired plants and improvement of voltage qualities, etc.

2525For more detail of the projects, see attached

“List of Fast Track Projects (FTPs) and Priority Projects”

T/C’s Recommendation(1)T/C’s Recommendation(1)

Technical Committee supports the Master Plan, which successfully provides a vision and strategy with a comprehensive approach in infrastructure development, thus recommending:

2626

recommending:

Steering Committee to consent “the Master Plan for Establishing Metropolitan Priority Area for Investment and Industry in JABODETABEK.”

Fast-Track ProjectsTotal 214,100 (100%)

Private 120,200(56%)

Public 93,900(44%)Government of

Indonesia15,100(7%) Total

Fast Track Projects : to be commenced by 2013Priority Projects: to be completed by 2020

1. Overview1. Overview

(billion IDR)

(billion IDR)

Total 411,300 (100%)

II. FastII. Fast--Track Projects and Priority ProjectsTrack Projects and Priority Projects

2727

Indonesia

Japan’s ODA and Other Foreign

Assistance

78,800(37%)

Priority Projects

Note : This figure is provisional estimation.

(billion IDR)

Total 411,300 (100%)

Private 227,100 (55%)

Public 184,200 (45%)Government of

Indonesia58,500 (14%)

Japan’s ODA and Other Foreign

Assistance

125,700 (31%)

Total 197,200 (100%)

Private 106,900 (54%)

Public 90,300 (46%)Government of

Indonesia43,400 (22%)

Japan’s ODA and Other Foreign

Assistance

46,900 (24%)

2. Fast Track Projects2. Fast Track Projects1. Identified Projects: 18 projects in 9 sectors

Sector Projects

International port North Kalibaru; Cilamaya

Industrial area Smart community

Mass transportation network Jakarta MRT; JABODETABEK Railway

Road network Road network capacity enhancement; Improvement of road network within Industrial Area to the East of Jakarta

Airport and its related Access railway to Soekarno-Hatta Airport(SHA);

2828

Airport and its related infrastructure

Access railway to Soekarno-Hatta Airport(SHA); Expansion of SHA

Water supply and sewage system

DKI-Bekasi-Karawang Water Supply (Jatiluhur)

Waste management West Java regional solid waste Treatment

Flood management system Reconstruction of East Pump Station at Pluit

Electric power infrastructure Java-Sumatra transmission line; Indramayu coal-fired power plant; Banten coal-fired power plant; Gas-fired power plant and FSRU; Rajamandala Hydroelectric power plant; Central Java coal-fired plant

For more detail of the projects, see attached“List of Fast Track Projects (FTPs) and Priority Projects.

2. Fast Track Projects2. Fast Track Projects

2. Major Progress as of Today

Commitment4 FTPs out of 18 FTPs are already committed by GOJ

Japan ODA Loans: MRT N-S (Phase1 &Phase 2 E/S), Indramayu Coal-fired Power Plant (E/S), and Jawa-Sumatra Interconnection Transmission Line

Japan Grant Aid: East Pump Station at Pluit

Preparation

2929

Preparation16 FTPs’ Feasibility Study are completed and 2 FTPs’ on-going3 FTPs’ tendering process completed and 4 FTPs’ on-going

ex. (Completed) Reconstruction of East Pump Station at Pluit etc.(on-going) MRT N-S (Phase 1: Civil Works, Rolling Stocks, and E&M Systems),

Java-Sumatra transmission line etc.

5 FTPs’ Concessionaires are already selected ex. Access Railway to Soekarno-Hatta Airport, Central Java Coal-fired Power Plant etc.

Progress of North-South Line► Phase I (Lebak Bulus-Bundaran HI)•Bidding process on-going for Civil Works, Rolling Stocks and E&M System Packages•Contract signing for Underground Section is expected

within this year

► Phase II (Bundaran HI-Kampung Bandan)• GOI submitted Finance Request for Engineering

Services and approved by GOJProgress of East-West Line

Progress of Jakarta Mass Rapid Transport (MRT)Progress of Jakarta Mass Rapid Transport (MRT)MP3EI Project

Flagship project

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Kampung Bandan St.N-S Phase II(Total 8.1ｋｍ）

Bundaran HI St.

N-S Phase-1（Total 15.7ｋｍ）

Lebak Bulus St.

Progress of East-West Line

• N-S: Listing on Blue Book (Phase I and II) Finance Request for Phase I and II

Construction• E-W:

Listing on Blue Book and Finance Request for Engineering Services

Further acceleration

• Scope of Engineering Services, including Implementation Structure are under discussion

Progress of Cilamaya Seaport

► To correspond to increasing demand for containers (19,360,000 TEUs in 2030=3.6 times as large as the

actual amount of 2011)► To mitigate the further traffic congestion

in Jakarta caused by heavy land traffic flowing from

Progress of Cilamaya SeaportProgress of Cilamaya SeaportMP3EI Project

Necessity of Cilamaya Seaport

► JICA Masterplan completed in April, 2012► JICA Feasibility Study started in January, 2012 and

on-going

Flagship project

3131

in Jakarta caused by heavy land traffic flowing from eastern JABODETABEK industrial area to Tanjung Priok Port via Jakarta-Cikampek Toll Road

► To contribute to enhance the Connectivity as a new gateway and establish the Industry Cluster

Further acceleration► Listing on Blue Book and Finance Request (Engineering Services)► Assigning the responsible authority for Cilamaya access road

Cilamaya New Port

Industrial estates in eastern JABODETABEK

Tanjung Priok Port

Early commencement of operation in Cilamaya is vital for increasing cargo handling capacity and debottleneck land traffic congestion

3. Priority Projects 3. Priority Projects 1. Identified Projects: 45 projects in 15 programs (excluding FTPs)

Programs Major Projects

MRT-based new urban transport system

・Station Plaza Development and Park & Ride System Enhancement (Dukuh Atas) (*1)

Development of Road Network in and around Jakarta

・ Development of Jakarta Outer Outer Ring Road・ Introduction of ITS in JABODETABEK

Promotion of Urban Re-development

・ Pilot Project of Urban Development/Re-Development (including Maja (*2)

Improvement of Water Supply and ・ Rehabilitation of Water Distribution Facilities in DKI Jakarta,

3232For more detail, see attached “List of Fast Track Projects (FTPs) and Priority Projects.

Improvement of Water Supply and Sewerage Systems

・ Rehabilitation of Water Distribution Facilities in DKI Jakarta, Bekasi, and Karawang, with the integration of DKI Jakarta-Bekasi-Karawan Water Supply (Jatilfur)

・ Development of Sewerage System in DKI Jakarta (*1)

Solid Waste Treatment ・ Development of New Landfill Site at Tangerang (*2)

Flood Management ・ Development of Urban Drainage System in DKI Jakarta

Development of New Growth Sub-Corridor for JABODETABEK MPA

・ Development of New Township(Karawang) (*2)・ Development of New Industrial Estate in the Vicinity of the

New Airport

(*1) JICA PPP F/S(*2) METI F/S(*3) JICA M/P

3. Priority Projects 3. Priority Projects Programs Major Projects

Development of New Academic Research Cluster

・ Development of New Academic Research Center (Serpong, Bekasi, Bogor) (*2)

Development of Road/Railway along New Growth Sub-Corridor for JABODETABEK MPA

・ Construction of Second Jakarta-Cikampek Toll Road(*2)・ Construction of Freight Railway to New Cilamaya Seaport・ Construction of Access Road to the New International

Airport・ Construction of Jakarta-Bandung High Speed Railway via

the New International Airport (*2)

Development of Cilamaya Port ・ Development of Logistics Park (Supporting Facilities for the

3333For more detail, see attached “List of Fast Track Projects (FTPs) and Priority Projects.

Development of Cilamaya Port ・ Development of Logistics Park (Supporting Facilities for the New Port)

Development of New International Airport

・Development of New International Airport (Karawang) (*3)

Improvement of Soekarno-HattaInternational Airport (SHIA)

・Expansion of SHIA (Development of Third Runway)(*3)

Low Carbon Power Supply Development

・ Other Renewable and Low-Carbon Emission Power Projects connecting to Java-Bali-Sumatra Power Network

Development of Smart Grid ・Improvement of JABODETABEK Power Supply Quality

(*1) JICA PPP F/S(*2) METI F/S(*3) JICA M/P

3. Priority Projects 3. Priority Projects

2. Potential risks for investors in Priority Projects (including Fast-Track Projects)

Planning Stage Construction Stage Operation Stage

·Consistency with spacial plans·Allocation of risks and responsibilities between public & private sectors·Decision making by Government

·Issuance of Government guarantee·Land acquisition, resettlement & forest area clearance·Permits on location/construction

·Operation model(tariff setting, demand projection, etc.)

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·Decision making by Government on selection procedure of concessionaire(solicited/ unsolicited)·Start of selection process without enough readiness·Coordination among concerned ministries/SOEs

·Permits on location/construction·Supplementary measures to reduce viability gap

·Change in conditions of concession contract·Change in financial laws & regulations(subsidy, tariff, remittance, etc.)·Environmental & social monitoring

Expansion of Expansion of SoekarnoSoekarno--HattaHattaInternational Airport (SHIA)International Airport (SHIA)Project Outline

SHIA and New Academic Research ClusterSHIA and New Academic Research Cluster

To construct third runway and improve otherfacilities of SHIA in order to cope with rapidincrease of air traffic in accordance with master plan of Ministry of Transportation

New Academic Research ClusterNew Academic Research Cluster

With the aim of creating value-added industry, the cluster will intensify the link between existing industrial resources and scientific research achievements with business activities. The candidate sites are Serpong, Bekasi and Bogor.

Flagship project

Challenges & Actions to be Taken

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Project preparation including land acquisition and resettlement

Challenges & Actions to be Taken• Finalization of Pre-Feasibility Study supported by

METI by the end of November, 2012• Based upon METI Pre-F/S, the further study will

be considered • Formulation of Attractive Business Plan for the

Private Sectors (by BPPT)• Listing on PPP Book• Government Supports, such as Tax Holidays

and/or Tax Reductions, Protection of Intellectual Properties, Priority Access to Biological Resources, etc.

Sewerage Zones and Prioritized ProjectProject Outline Develop sewerage system in DKI based on

the Revised Master Plan on Sewerage Development (dividing DKI into15 zones and building sewerage in stages)

Build wastewater treatment plants and sewerage networks for better urban environment in DKI Jakarta

Two feasibility studies are on-going targeting Zone 1 and Zone 6

Jakarta Sewerage DevelopmentJakarta Sewerage Development

F/S on-going

F/S on-going

Flagship project

Challenges & Actions to be Taken

Source: Revised Master Plan

Selection of the optimal sewerage system to Jakarta

DKI’s policies on tariff level and tariff collection system

Consideration of PPP Improvement of institutional framework and

capacity development for wastewater management

Central Jakarta

3636

T/C’s Recommendation(2)T/C’s Recommendation(2)

Technical Committee endorses the remarkable progress of Fast-Track Projects and Priority Projects, thus recommending:

Steering Committee to continue to monitor the

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Steering Committee to continue to monitor the implementation of the MPA projects; and to agree to accelerate Jakarta MRT, Cilamayaseaport, Soekarno-Hatta International Airport, Academic Research Cluster, and Jakarta sewerage development as flagship projects of MPA.

Technical Committee confirms the necessity for further joint effort to accelerate the MPA projects, thus recommending Steering Committee that :

MPA Steering Committee and Technical Committee should continue to be held regularly. “MPA Implementation Team” can

II. The Further Way ForwardII. The Further Way Forward

T/C’s Recommendation(3)T/C’s Recommendation(3)

3838

continue to be held regularly. “MPA Implementation Team” can be newly assigned to work for the project acceleration.

Further study should be explored to serve for project formation including the integrated study of smooth logistics to assist the development of the surrounding infrastructure related to Cilamaya.

MPA Masterplan and the future progress should be reported to the chairman of KP3EI, President of Republic of Indonesia.

Recommendation to Steering Committee Recommendation to Steering Committee

I. T/C’s Recommendation(1):

Steering Committee to consent “the Master Plan for Establishing Metropolitan Priority Area for Investment and Industry in JABODETABEK.”

II. T/C’s Recommendation(2):

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II. T/C’s Recommendation(2):

Steering Committee to continue to monitor the implementation of the MPA projects; and to agree to accelerate Jakarta MRT, Cilamaya seaport, Soekarno-HattaInternational Airport, Academic Research Cluster and Jakarta sewerage development as flagship projects of MPA.

Recommendation to Steering Committee Recommendation to Steering Committee

III. T/C’s Recommendation(3):

MPA Steering Committee and Technical Committee should continue to be held regularly. “MPA Implementation Team” can be newly assigned to work for the project acceleration.

Further study should be explored to serve for project

4040

Further study should be explored to serve for project formation including the integrated study to assist the smooth logistics through development of the surrounding infrastructure related to Cilamaya.

MPA Masterplan and the future progress should be reported to the chairman of KP3EI, President of Republic of Indonesia.

Terima kasihTerima kasih