STRATEGY FOR SUSTAINABLE INFRASTRUCTURE DEVELOPMENT
IN INDONESIA
Minister of National Development Planning/Head of National Development Planning Agency
Presented at :”The Third International Conference on Sustainable Infrastructure Built Environment”
Bandung, 27 September 2017
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Outline
Urban growth and Infrastructure Challenges
Strategy for Sustainable Infrastructure
Financing scheme
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URBAN GROWTH AND INFRASTRUCTURE CHALLENGES
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UrbanizationDefinition
URBANIZATION as the process of population concentration CITY SIZE
Small 50,000 – 100,000 inhabitants
Medium 100,000 – 500,000 inhabitants
Big City 500,000 – 1,000,000 inhabitants
Metropolitan 1,000,000 – 10,000,000 inhabitants
Megapolitan More than 10,000,000 inhabitants
STRUCTURALURBANIZATION
URBANAGGLOMERATION
Source: Pontoh and Kustiwan, 2009
94CITIES*
Large Metropolitan
10
14 12
Small Medium
57
Megapolitan
1
*districts are not included
Agglomeration of Metropolitan Areas
The main city will be related to other cities surrounding it and forming agglomeration of urban area based on the correlation of the function of the cities.
Government Regulation Number 13 of 2017 on National Spatial Planning 2008-2028
URBANAGGLOMERATION
‘Urban Area’ (Kawasan Perkotaan)Center of National Activities(Pusat Kegiatan Nasional)
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12 11
10
98
7654
12
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1. Mebidangro2. Palapa3. Patungraya Agung4. Jabodetabek5. Bandung Raya6. Kedungsepur7. Gerbangkertosusilo8. Sarbagita9. Mataram Raya10. Mamminasata11. Manado Bitung12. East Kalimantan13. Banjar BakulaSource: Government Regulation Number 13 of 2017
City can be defined based on the basic component owned by the city itself, such as morphology, number of population, social, economy, as well as law and regulation (Pontoh and Kustiwan, 2009)
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Rapid Urbanization
In 2035 almost 90 % population in Java live in cities , very large urban 76 million areas around
Jakarta - Bandung
Until 2085 proportion of residents who live in cities are estimated to
continue to rise
In other areas such as NTT, West Sulawesi and Maluku,
more than half of the population still live in rural
areas.
- 2.000.000 4.000.000 6.000.000 8.000.000 10.000.000 12.000.000 14.000.000 16.000.000
JakartaDepok
TangerangDenpasar
BekasiTangerang Selatan
BatamPekanbaru
SurabayaSamarinda
AmbonBandung
MakassarSemarang
MedanPalembang
SerangJambi
Bandar LampungJayapura
BalikpapanKupang
BogorPalangka Raya
BanjarbaruMataram
KendariSorong
TasikmalayaPontianak
PadangBanda Aceh
BengkuluMalangCilegon
2010 2045
Without intervention, population distribution will not changed. Most citizens will live in Java
106
1.042
13725
9213
151
1.303
20441
12721
0
200
400
600
800
1000
1200
1400
Sumatera Jawa - Bali Nusa Tenggara Kalimantan Sulawesi Maluku - Papua
2010 2045
1.000.000**
Metropolitan cities
Total Population*) Projection done without intervention;**)Metropolitan as defined in Law 26/2007
2010People living in urban
areas
49,8%
2035People living in urban
areas
69,1%
Balancing metropolitan’s distribution between western and eastern part of Indonesia: development of new growth areas outside Java (New Cities, Industrial Zones, Special Economic Zones and Tourism Zones
Source: Bappenas, 2017
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Urban Agglomeration:Engine of Economic Growth
Jabodetabek contributes 19.15% of GDP. Jakarta contributes 16.20% to national and 85% to Jabodetabek.
More than 90% of the richest men Indonesia (income>USD 36,000) reside in Jabodetabek, controlling>50% of national financial wealth (BCG, 2017).
Contribution of Java and Sumatra accounts for 80% of GDP in the last 20 years.
Rapid economic development of Jabodetabek gives an impression of Java Centrist development in Indonesia.
0,67%
1,21%
2,18%
2,24%
3,08%
6,55%
16,20%
19,15%
Sarbagita
Mamminasata
Kedungsepur
Mebidangro
Bandung Raya
Gerbangkertosusilo
DKI Jakarta
Jabodetabek
Contribution of Metropolitan Areas to GDP (2015)
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Infrastructure Development Framework2015-2019
Transportation Institutional integration
96.6%electrification ratio
100% drinking water access
100% sanitation access
Livable housing access
Border & underdeveloped regions accessibility
Fulfillment of Basic Needs
Infrastructureto Support Leading Sectors
ConnectivityMaritime Highway +
Intermodal
Broadband Development:• e-Government, e-Health, e-Education,
e-Logistic, e-Commerce.Energy Development: 35 GW
• Target 1,200 kWh/Capita in 2019 (current facts: Vietnam 1,300 kWh/Capita, Malaysia 4,400kWh/Capita)
Leading Sector
Service and Tourism
Agriculture
Manufacturing
Urban Transport
Transportationsafety & security
Development of road, rail-basedmass transport system & intermodal
Improve the capacity and quality of the urban road network
Develop sustainable urban transport
Shift Improve
Network to support journey
efficiency
Increased share of public transport
Increased utilization
technology
Urban Transport Development Concept
Avoid
Regional Development/Growth Center
Marine HighwayRegional
Development/Growth Center
Intermodal Intermodal
Port AreaDevelopedArea
Under-Developed
Area
Transportation institutionalintegration
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“Indonesia's infrastructure competitiveness index relatively stagnant (rank 60) and still lower than Thailand, China, and Malaysia.”
Source: World Economic Forum Report, 2016
Logistic Performance (World Bank, 2016)
“Indonesia Logistic and Accessibility Quality is Still Lower than Many Asian Countries.”
Infrastructure Challenges
Ratio of Railway Double Track to Total Network (%)
Variables Indonesia China Vietnam Thailand Malaysia Filipina2015 2016 2016
Quality of Overall Infrastructure 81 80 43 85 72 19 112Quality of Roads 80 75 39 89 60 20 106Quality of Railroad 43 39 14 52 77 15 89Quality of Sea Transport 82 75 43 77 65 17 113Quality of Air Transport 66 62 49 86 42 20 116Quality of Electricity Supply 86 89 56 85 61 39 94Fixed-telephone lines 80 86 64 99 91 72 107
Global Competitive Index 2017
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Sustainability Issue in Urban Development “Rapid motorization and urbanization gave significant impact to environment and peoples’ quality of life.”
High Urbanisation rate2015: urban population= 150 millions (59%)2035: urban population= 240 millions (75%)
Urban Transport Sustainbility Issues
Among 11 Big Cities, 15 Medium Cities and
52 Small Cities in Indonesia, only 5 cities
have Urban Railway System.
Economic loss due to severe traffic
congestion in Jakarta amounted to around
USD 5 billion per year.
Urban air quality indicators such as PM10
and CO levels during 2008-2013 rose by 86% and 60% respectively.
Road traffic fatality in 2015 in Indonesia was 27.000. (around 70% was in urban areas.
Rapid motorization
Motorcycle
CarTruckBus
PopulationTransport Technology
ModeCapacity
(passengers/hour)
5 millionsMRT 63,000 LRT 20,000 BRT 12,000
1 – 5 millionsLRT 20,000 BRT 12,000
500.000 - 1 millions
BRT 12,000
100.000 - 500.000 Regular Bus 1,000 Less than 100.000 Regular Bus 1,000
Promoting sustainable urbantransport system for Indonesiacities, emphasizing on non-motorized transport anddevelopment of modern,integrated mass publictransport system.
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Water Conservation
DAM
Irrigation
• Water resource conservation activities should aligned with the development of DAM and water irrigation.
• Water security can be achieved by strengthening coordination and synchronization of planning.
In the future, a rich country does not mean a country with abundant oil reserves, but a country with abundant water supply.
Issue in Water Management
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STRATEGY FOR SUSTAINABLE INFRASTRUCTURE
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The world has entered the age of sustainable development
With the adoption of the Sustainable Development Goals
at the United Nationson September 25, 2015 and
The Paris Climate Agreementon December 12, 2015
Sustainable development means economic development
that is socially inclusive and
environmentally sustainable
THE SDGS WILL OPERATE DURING 2016-2030
Implementation of Sustainable Development Goals
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The Medium-term Development Plan2015-2019 Target
Population
Transport Technology
ModeCapacity
(passengers/hour)
5 millions
MRT 63,000
LRT 20,000
BRT 12,000
1 – 5 millionsLRT 20,000
BRT 12,000
500.000 - 1 millions BRT 12,000
100.000 - 500.000 Regular Bus 1,000
Less than 100.000 Regular Bus 1,000
• Promoting sustainable urban transport system for Indonesia cities, emphasizing on non-motorized transport and development of modern, integrated mass public transport system.
• The medium-term development plan 2015-2019target is to increase the share of public transportin urban areas to 32%.
• The plan includes: Development of Mass Rapid Transit (MRT) and
Light Rail Transit (LRT) in metropolitan areas(such as MRT and LRT in the JakartaMetropolitan Areas, Tram and LRT in SurabayaMetropolitan Areas, and LRT in Palembang).
Development of Bus Rapid Transit (BRT)system in medium cities (such as Batam,Denpasar, Pekan Baru and Surakarta).
Avoid-Shift-Improve strategies such as compactcity and Transit-Oriented Development (TOD)development, increase of vehicle tax andparking fees and promoting more efficienttransport technology.
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• The main source of emissions in Indonesia comes from forestry (conversion of forest).
• Indonesia's commitment to reduce emission 26% and 41% compare to baseline in 2020.
• The source of emission from the sector of Transportation and Energy are mainly from fuel consumption.
• The biggest energy consumption in Indonesian Primer Energy (in terms of fuel consumption): 48 % in 2005 and CO2 emission from motor vehicle is 23% from total energy sector (2005).
• CO2 emission from the sector of Transportation and Energy in 2010: 0.403 Giga Ton and Projected in 2020: 0.788 Giga Ton (Do Nothing).
• Distribution the use of fuel consumption in transport sector- Road 90,7% - Sea 6,9%- Air 2,4% - Rail, less than 1%
Strategy 1: Indonesia Emission Mitigation Target
SectorTarget (Gton CO2e) in 2020
26%(without any support)
41%(with financial support)
Forestry 0,672 1,039
Agriculture 0,008 0,011
Transport and Energy 0,036 0,056
Industrial 0,001 0,005
Waste 0,048 0,078
Total 0,767 1,189
Indonesia Emission Mitigation Target
• Presidential Decree No. 61/2011“National Action Plan Reducing Green House Gas Emission”
• BAPPENASTechnical Guidance to Evaluate and Reporting the RAD-GRKImplementation
Adaptation
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Mitigation
Tress/plantation
Conservation/Avoided
deforestation and degradation
Switch to energy-efficient
technologies
Renewable energy
(no fossil fuel)
Adaptation measures taken in order to anticipate the
impacts of climate change.
Adaptation is done by developing a policy framework, strengthen the
impact of climate change vulnerability assessment, capacity
building of all stakeholders.
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Strategy 2: Urban Transport Planning
“Development of Integrated Transport Network consist of Mass Transport and support by Mixed Use Infrastructure Planning.”
AVOID Reducing the need to travel and avoid
unnecessary trip
SHIFT Changing mode choice rather than
private vehicle with inclusive design
IMPROVEIncreasing the energy efficiency of vehicles,
fuels and transport operations
The City Government should develop environment friendly transportation with
availability infrastructure for Non Motorized Transport, Public Transportation (BRT, MRT,
and Feeder Bus).
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Strategy 3: Transit Oriented Development
“Integrating Public Transport to Transit Oriented Development concept to Increase Mobility and Accessibility Efficiency.”
• Urban sprawling: Mid-low income people spread to rural area due to inability to access housing as unaffordable land prices and high density housing in city center.
• Mid-low income people increasingly bear the burden of having to bear the cost of transportation as a result of staying away from the center of activity in the city center.
• Vertical consolidation should be encouraged as it is very efficient in land utilization and it’s relatively stable to face the need of housing that will continue rises in the future.
• The development should be allocated in the location that well-connected by public transport and the center of economic activity.
EXISTING CONDITIONS
City Center
Urban Sprawling
SUSTAINABLE DEVELOPMENT
Urban Transport Stations
Mass Transportation
Integrated Public Transport with Commercial,
Residential, and Business Areas
City Center
Vertical Development with TOD(Transit Oriented Development)
Source: Coordinating Ministry for Economic Affairs16
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FINANCING SCHEMES
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PPP:
UDS 135 Billion
(37%)
Investment Need for
Infrastrucure for 2015-2019:
USD 370 Billion
SOEs:
USD 80 Billion
(22%)
Central and Local Gov Budget:
USD 155 Billion
(41%)
Source: Bappenas- JICA, 2014: Background Study for RPJMN 2015-2019
FUNDING REQUIREMENT FOR INFRASTRUCTURE
Note: Transport Infrastructure InvestmentNeed USD 195 Billion (40% of InfrastructureInvestment)
Expanding the Opportunity of PPP Implemetation through Presidential Regulation 38/2015
• Establishing Special Purpose Company (SPC) on an Ongoing Infrastructure Project
• Divesting of SPC Share• Empowering SOE without Government Share of Capital
• Infrastructure Sector Ministry/Government Institution:• Commiting to the New Paradigm• Improying Readiness of PPP and Government-Funded
Infrastructure Project• Establishing PPP Node (Human Resource Optimalization)
• Land Acquistion:• Empowering Lembaga Manajemen Aset Negara (LMAN) • Establishing Land Banking
• Cultivating Stable and Predictable Business Environtment• Granting Licenses• Providing Fiscal Incentives
• Establishing SPC on an Infrastructure Project under Preparation• Establishing SPC through SOE and Private Partnership• Empowering SOE without Government Share of Capital
Providing Government Share of Capital for Government Assignment to SOEs
PRIVATE SECTOR
PPP
JV SOE (brownfield)
JV SOE (greenfield)
SOE
Local and Central Government Budget
NEW PARADIGM IN INFRASRUCTURE DEVELOPMENT
Infrastructure Funding
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THANK YOU
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APPENDIX
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“Development of Urban Mass Transportation to Support Sustainable Development which provide peoples’ mobility needs.”
Development of MRT Jakarta Development of LRT Jabodebek Development of LRT South Sumatera
E/S Barat – Timur Phase I Stage I
Kalideres – Cempaka Baru (Loan IP-569)
Phase 1: North South E/S (Loan IP-536); Konstruksi Stage I (Loan IP-554); Konstruksi Stage II (Loan IP-571)
Phase 2 North South
North – South Corridor:With 20 millions commuter trip across Jakarta per day, Mass Transportation urgently need to be developed.• 23 km with 21 Stations• Demand Estimated 412,000 pax/day
(2020)• TOD Facilities in Each Stations
Cibubur – Dukuh Atas – Bekasi TimurAs third largest Metropolitan Areas in the world, Jabodetabek served 30 millions population which need reliable mass transport infrastructure. • 39.1 km with 16 Stations• Demand Estimated 160,000 pax/day
(2020)• Planned supported by TOD Facilities in
each stations
Airport – Jakabaring StadiumTo support the Asian Games in 2018 as well as cities economy. • 23 km with 13 Stations• Demand estimated from number of flight
to South Sumatera which is 3.6 million people/year
• Planned to operated in July 2018
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Example of Sustainable Urban Transport Development
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“Development of Urban Mass Transportation to Support Sustainable Development which provide peoples’ mobility needs.”
Project Highlight: Development High Quality Elevated BRT Tendean - Ciledug
• 8.6 km with 12 stations• Targeted covered 25,000 pax/day• Integrating commercial, business,
and residential areas
Example of Sustainable Urban Transport Development
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