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Th e Conn ectivity OfSix Econ om ic Corr idor s

33 PPP Projects to Support MP3EI

How And What Is MP3EI?

The Action Plan to StrengthenNational Connectivi ty

National Connectivity 2011 Special Edi tion



SUSTAINING PARTNERSHIP - National Connectivity 2011 Special Edition

2

E D I T O R I A L

H ow wi l l In donesia be in 2025?

In 2025, I ndon esia’s incom e per capita is targeted to reach around U SD 15,000 wit h a Gr oss

D omestic Product (GD P) of arround U SD 4 to 5 tri l l ion. I ndonesia wil l receive a new ti tl e

as a high earn in g count ry. As an il lustrati on, i n 20 10, I ndo nesia’s in come per capit a was U SD

3,000 and i t had a GD P of USD 700 bi l l ion.

T his questi on w ill surely arise: how can w e achieve th at target? C an all stakeholders in th e

count ry synergize to bui ld In donesia? T he answer i s: t hey m ust be capable and m ust be able

to do i t .

N ow, th ere is th e M aster Plan for t he Acceleration and Ex pansion of I ndo nesia’s Econom ic

D evelopm ent ( M P3EI) . T his is a wor kin g docum ent t hat comp lem ent s the other existin gdocuments such as the Lon g Term and M edium Term D evelopment Plan for bot h t he national

and regional level.

M P3EI is in t end ed t o encou rage rapid, balanced, equi table and sustain able econom ic grow th .

T hrou gh t hose accelerati on m easures, I ndon esia wil l be able to pl ace itself in th e ten m ajor

nations of the world by 2025 and six major nations by 2050.

To achieve Indonesia’s Vision by 2025, three basic strategies are formulated, namely the

development of economic potential through economic corridors; strengthening national

connectivit y; and strength ening hu m an resource and N ational Science and Techn ology

capabili t ies. W ith respect to th is m atter, nation al conn ectiv it y becomes a hi ghly relevant issue

to di scuss in t he Sustainin g PAR T N ERSH I P magazine.

M agazin e discusses about how and w hat M P3EI i s; the l ink b etw een M P3EI w ith oth er

wor kin g document s; and an actio n plan to i m prove nati onal. Th is edit ion i s also compl em entedby the opinion of experts and observers of this subject and a list of government programs with

th e PPP schem e that suppo rt s th e massive M P3EI program.

T he issue of in ter corridor connecti vity is str ongly associated w ith the availabilit y of inf rastru ctures

th at enable inter island and in ter territ ory con nectivit y t o becom e faster and cheaper. T herefore,

ports wi th good shippin g and loading and u nloading m anagem ent is a necessity. C onnectivity

shoul d also be suppo rt ed b y an effective means of l and tr ansport ati on such as logistic t rains

and th e existence of a smo oth distribu tion rout es.

By highlighting the issue of national connectivity, hopefully we could provide an overview

of t he variou s investm ent oppor tun iti es in infr astr ucture in accordance wi th the governm ent’s

prior iti es and m ajor programs. Because with out the parti cipati on of the pri vate sector, it w ill

be im possible t o p roperly d evelop various infr astr uctur es in I ndon esia.

Please enjoy reading the magazine.

Edi tors

The Issue of Connectivity in Indonesia

In f rast ructure Reform Sector

D eve lopm en t Prog ram ( IRSD P)BAPPENAS

Jl. Tanjung N o.47 Jakarta 10 310

w ebs ites: w w w . irsdp .o rg

Te l. (62 -21 ) 39 2539 2

Fax. (62-21) 3925390

ADVISOR

D eputy M in iste r fo r In f ras t ruc tu re

Affairs, Bappenas

DIRECTOR

D i r e c t o r f o r P u b l i c P ri va t e

Partnersh ip D eve lopm ent , Bappenas

CHI EF EDITOR

Jusuf A rb i

BOARD OF EDITORSD e l t h y Su g r i a d y S im a t u p a n g ,

Gu n sa i r i ,

R a c h m a t M a r d i an a ,

N o v i e A n d r i an i ,

M o h a m m a d T a u f iq R in a l d i ,

A d e H e n d r ap u t r a

M A N A G I N G ED I T O R

B . Gu n t a r t o

REPORTER/RESEARCH ER

Sa n d r a K a u n a n g ,

A g u s Su p r i ya d i H id a ya t

PHOTOGRAPHER

A r ie f B a k r i

GRAPHI C D ESIGNER

I n d r i e So e h a r yo

TRANSLATOR FROM

IN DO NESIAN VERSION

Set iana



National Connectivity 2011 Special Edition - SUSTAINING PARTNERSHIP

3

C O N T E N T

MP3EI Background: 4

9

13

18

MP3EI and RPJPN - RPJMN:

Economic Corridor:

Action Plan:

25

Expert Opin ion:

PPP Pro ject:

H O W A N D W H AT I S M P3EI ?

T H E C O N N EC T I O N BET W EENM P3EI, RPJP AN D RPJM

T H E C O N N EC T I V I T Y O FSI X EC O N O M I C C O R RI D O R S

T H E A CT I O N PL AN T O ST R EN G T H ENN A T I O N A L CO N N E C T I VI T Y

O PI N I O N AB O U T C O N N EC T I V I T Y I N M P3EIPR IO R I T I Z AT I O N O F C O N ST R U C T I O N

33 PPP PRO JECT S T O SU PPO RT M P3EI

22



Various effor ts that w ere m ade to encour age econom ic growt h i n

Indones ia faced numerous cha l lenges, in par t i cu la r l imi ted

provision of i nfr astr uctur es th at support econom ic activi ties. O n

the other hand, infrastructure availability is urgently needed while

the government’s funding abil i ty for infrastructure developmentis very l imi ted.

T herefore, th e part icipat ion of t he private sector i s crucial and

must be real ized to accelerate the real ization of Indonesia’s

deve l opmen t po ten t i a l s. T h i s cou l d be ach i eved th r ough

i n f ras t ruc tu re p rov i s i on wh i ch i s j o i n t l y conduc ted by the

govern m ent and pri vate sector.

DEVELOPM ENT POTENTI AL AND

CH ALLENGES IN I ND ONESIA

As the largest archipelagic nation in the world, Indonesia has a

range of potentials shown by the characteristics of its geography,

demography, economy, socio-culture and natural resources. From

a geographic point of view, Indonesia is located in a strategic

place and h as direct access to t he largest m ark et in th e wor ld sin ce

it is passed by the Sea Lane of Communication (SLoC) which is

M alacca Strai t that r anks f i rst i n t he global cont ainer shippin g

line.

From the demography perspect i ve , Indones ia a lso has a

“demographic bonus” unti l 2030. This means that there is an

increase in th e num ber o f p rodu ct i ve aged popu la t ion . T he

demography bon us show s that I nd onesia’s econom ic pot ential is

also supported by the potential of human resources productivityin the future.

Another potential is rich natural resources. As we know, Indonesia

is known as a country rich with natural resources, both renewable

(agricultu ral products) and non renewable (min ing and m inerals).

In fact, f or some key comm odit ies, I ndon esia is one of th e world’s

largest producers and exporters.

I ndo nesia’s variou s superior i t ies in natural resources m ust be

m axim al ly u t i l ized w i th th e precautionary pr inciple, especial ly

for m atters related to t he sustain abil i t y of natur al resour ces and

environmental damage that may occur.

O n t he o ther h and, I nd onesia i s also facin g cha l lenges in

developm ent. N atural resour ces own ed by I nd onesia are not

evenly di str i buted in al l p arts of I ndon esia. T he distr i buti on of

natural resources, especial ly oi l and gas, as well as trade and

in dustr y growt h centers are onl y concentrated in som e areas. T hi s

concentration causes disparities between regions and differences

of social welfare between regions.

The Master Plan for t he Accelerati on and Expansion of Indonesia’s Econom ic Development(MP3EI) was form ulated based on vari ous inform ati on and considerati ons that covers avari ety of potentials possessed by Indonesia, part icularly natural resources potential. Theabundant amount of natural resources owned by Indonesia is an invaluable potent ial thatcan be developed to encourage econom ic growth in In donesia.

M P 3E I B A C K G RO U N D


4



We must change our dependence on the primary

sector as th e drivin g force of th e econom y. H owever,

i t is undeniable that the abundant amount of natural

resour ces is an econom ic pot enti al. N atur al resour ces

management m ust be supp ort ed by good m anagem ent

and adequate infrastructures so i t could optimal ly

encourage economic growth.

Another chal lenge faced by Indonesia is low inter

reg ion connect i v i ty w h ich i s ind i cated by t he low

availabil ity of in fr astr uctur es th at encour age econom ic

activities. Infrastructure availabil i ty in some regions

in Indonesia, especial ly in eastern Indonesia is sti l l

inadequate.

Look in g ahead, I ndon esia’s infrastr uctur e developm ent

shoul d be focused to im prove inter region connectivit y.T his aims to reduce transport ati on and logistics costs

to encourage competi t iveness and accelerate the

distr ibution of products.

Aside from econom ic pot ent ial and existi ng challenges,

Indones i a ’s i mage i n the i n te rna t i ona l l e ve l i s

im proving. G lobal trust to Ind onesia’s condi t ion has

increased in accordance wi th the improvement of

In don esia’s rank in t erm s of i t s condi ti on. T his rank

is determined by various international inst i tut ions.

In l ight with the above, transformation is necessary

to sh i f t the consumpt ion based economy in to ain vestm ent based econom y. Such tr ansform ation m ust

be prepared from now wi th the hope that by 2030,

Indonesia wil l be successful and has completed the

transformation.

To suppor t economi c transform ation , a concept on

th e acceleration and expansion of I nd onesia’s econ om ic

development which is the concept of the development

of I ndon esia Economic C orrid ors is currently being

developed.

T his concept uses a regional approach t o accelerate

the economy by address ing i ssues in reg iona l

developm ent, n am ely lack of i nf rastru ctur e and energy

supply, inefficient logistic management, disintegrated

domestic m arket (not unit ed) and l im ited connectivit y

to t he global m arket.

H O W AN D W H AT I S MP 3 E I ?

M P3EI i s a roadm ap that is formu lated as an attemp t

to transform the economy to encourage economic

activities as well as to accelerate economic growth to

im prove comp eti ti veness.

Such econom ic transform ation effort s must be done

by con siderin g al l of t he potent ia ls and chal lenges

faced by In donesia. In addi t ion, M P3EI also acts as

a starting point in d evelopin g the mutual comm itm ent

of the Government and business sector to carry out

v a r i o u s c o n c r e t e d e v e l o p m e n t m e a s u r e s .

N ation al d evelopm ent is not merely an aggregation

or a combination of local /regional development or

even a join t d evelopm ent betw een sectors. N ational

developm ent i s the result of synergy between vari ous

forms of linkages, such as spatial linkages or regional

l in kages, sectoral l in kages and insti t uti onal l in kages.

N ational developm ent i s condu cted through a bett ersynergy between th e cent ral govern m ent , regional

governm ent, State Ow ned Enterprises (BU M N ), L ocal

O wned Ent erprises (BU M D ) and the private sector.

T he private sector w i l l p lay a major and i m port ant

role in the acceleratio n and expansion of econom ic

deve lopment par t i cu la r l y in te rms o f i ncreas ing

i n v e s t m e n t a n d j o b c r e a t i o n . I n c o n t r a s t , t h e

government wil l function as the regulator, faci l i tator

and catalyst.

Fac i l i ta t ion and ca ta lys is wi l l be prov ided by the

governm ent throu gh the provision of in frastructu res

and f i sca l and non f i sca l i ncent i ves . In te rms o f

regulation, t he governm ent wi l l perform deregulatio n

(debottlenecking) of certain regulations that impede

the im plement ation of i nvestm ents.

Speci f ical ly, wi thin Indonesia Economic Corridor,

th e role of t he centr al governm ent wil l only b e l imit ed

to the regulation and al location of central investm ent.

M P3EI i s a lso a start in g point to encourage

In donesia to b ecom e a developed country i nthe futu re. M P3EI’s developm ent concept w as

m ade with an appr oach based on the spir i t

of “Not Busin ess As U sual ”.

National Connectivity 2011 Special Edition - S USTAINING PARTNERSHIP

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M eanwh ile, the role of th e local govern m en t, especially those

located in Indonesia’s economic corr idor, wi l l p lay as the

direct u ser of the determ ined corr idor. In addi t ion, regions

wi ll also play a role in d etermi ni ng regulati ons and i nvestm ent

allocation in the region.

H owever, we m ust real ize that governm ent budget, e i ther

centr al or l ocal, is l im ited. T herefore, the spiri t of not business

as usual should be ref lected as an important element in

deve l opmen t , espec i a l l y i n i n f ras t ruc tu re p rov i s i on .

I t i s v e r y d i f f i c u l t t o f u l f i l l t h e n e e d s f o r a d e q u a t e

infrastructures across Indonesia wi th l imi ted government

bud get. H ence, several inf rastr uctu re provi sio n schem es can

be imp lem ented t hrough joint investm ent al location between

the government and private sector though Publ ic Private

Part nershi p (PPP).

T hese changes should start f rom the G overnm ent along wi th

i ts bureaucracy and shou ld be fo l l owed by increased

p r o d u c t i v i t y , i n n o v a t i o n , a n d c r e a t i v i t y t h r o u g h t h e

developm ent of science and technology. I n addit ion, t he role

of the business sector in economic development must alsobe increased.

To achieve success in develop m ent , th ere are several

requ i rements tha t must be met . F i rs t l y , the ro le o f the

govern ment and bu sin ess sector in developm ent. T he business

sector (pr ivate, state and local enterpr ises) p lays a major and

im por tan t ro le in developm ent , especia l l y i n increasing

investm ent s and job creation . M eanwhi le, th e Governm ent

is respon sibl e for creati ng a condu cive m acro econom y

cond i t i on fo r i n vestm ents . Therefore , the comm i tm ent o f

th e busin ess sector and governm ent becomes crucial t o supp ort

the im plem entation of pol ic ies.

Second ly , re form at ion o f govern ment f i n anc ia l po l i c ies.

Bud get p ol ic i es m ust be made by creati ng a credi ble and

susta inab le Sta te Budget ( APBN ) and i t m ust p r io r i t i ze

accelerated growth to create equi table and sustainable

development.

T h i rd l y, bu reaucracy re form at ion . T he Accelera t ion and

Expansion o f In don esia's Econom ic D evelopm ent needs to

be supported by an effective bureaucracy which is supported

by strong insti tut ion al comm itm ent and the im plementation

of good governance.

Fourth ly, the establ ishm ent of in ter region conn ectiv i t y in

In don esia. In th is case, the govern m ent becomes th e m oto r

for the establishment of inter region connectivity which can

be realized by implementing an integrated system between

national logistics, national transportation system, regional

developm ent and com mu nication and inform ation systems.

Fift hly, food, w ater and energy independence policy. T his is

an essential prerequisite t o supp ort successfu l d evelopm ent

in Indonesia.

Si x th l y , Soc i al Secu r i t y and P over ty A l l ev i a t i on . T he

govern ment is responsible for im plementi ng th e social securit ysystem t o prot ect t he publ ic against econom ic developm ent

ri sks. H ence, th e govern m ent needs to pr ovid e social secur it y

and condu ct povert y alleviation effor ts sustain ably b y creati ng

many jobs.

Basically, the economic corridor concept uses the regional

approach to accelerate the economy by resolving various

regional d evelopm ent issues. 6 econom ic cor rid ors have been

ident i f i ed cover ing m ost o f In donesia’s a rea wh i ch are

specifi cally enu m erated as fol low s: East Sum atera – N ort hw est

Java, N or th ern Java, Kali m antan, Sul awesi, East Java – Bali

– N u sa T en gg ar a an d M al u k u I sl an d s an d Pa p u a.

In donesia Econom ic C orri dors basically consists of the m ain

land access master plan which mainly connects economic

centers and supporting land accesses that connects focus

sectors to faci l i t ies/support ing infrastructures throughout

Indonesia.

T herefore, the basic developm ent of econom ic corrid ors in

In donesia wil l f ocus on nation al connectivity (i nt ra and i nter

island as well as int ernatio nal connectivit y). T he basis of th e

developm ent of In donesia’s econom ic corr idor s is al igned

with the four main concepts, namely road map, the national

logist ics system, the national transportat ion system and

regional development.

In addi t ion t o int ra and i nter island connectiv i ty, economic

corr idor development also aims to enhance regional and

global conn ectiv i t y. W i t hin the region al and global scope,

nation al conn ectivi ty i s str ength ened by th e econom ic corrido r

concept and is expected to con nect I ndon esia wit h r egion al

econom y cent ers such as ASEAN and th e world (global) as

an effort to enhance national competi t iveness. I t is very

M P3EI is developed based on vari ous basic

pr in ciples on successful developm ent th at

requir es change in the poin t of view and atti tude

of all com ponents of the nation


6




Sumatera Corridor:

“Center for Production andProcessin g of N atural

Resources and AsN ati on’s En ergy Reserves”

Kalimantan Corridor:

“Center for Production andProcessin g of N ation al

M inin g and EnergyReserves”

Java Corr idor :“ D river for NationalIn dustr y and Service

Provision”Bali – N usa Tenggara Corr idor:

“Gateway for Tourism andN ati onal Food Suppor t”

Sulawesi Corr idor :

“ Center for Production and Processingof N ational Agricultural, Plantation,

Fishery, Oil & Gas, and M ini ng”

Papua – M aluku I slands Corr idor:

“ Center for D evelopment ofFood, Fishery, Energy and

N ational M ining”

impor tan t to max imize the benef i ts o f reg iona l and g loba l

connectivity.

I N D O N E SI A E CO N O M I C C O R R I D O R S

In donesia Economi c C orr id ors or M P3EI i s im p lemented to

accelerate and expand econom ic developm ent in I ndon esia th rough

the development of 8 (eight) main programs that comprise of 22

( twen ty two ) ma i n economi c ac t i v i t i e s l oca ted th roughou t

Indonesia.

T he developm ent of th ose 8 (eight ) major p rograms in clude: the

m a n u f a c t u r i n g , m i n i n g , a g r i c u l t u r e , m a r i n e , t o u r i s m ,

telecomm unications and energy in dustry and th e developm ent

of n ati onal strategic zones. T he focus of th ose 8 (eight) m ain

programs covers 22 (twenty two) main activities such as: the iron-steel, food , beverages, t extil es, t ranspor tation equip m ent, ship pin g,

nickel, copper, bauxit e, palm oil , rubb er, cocoa, fishery, tour ism,

telecomm uni cation s, coal, and oi l and gas indu str y as well as the

developm ent of Jabodetabek M etr opol i tan and Sun da Str ai t .

T he main strategy of th e im plementation of M P3EI is done by

integrating the 3 main elements.

Firstly, the developm ent of a 6 (six) I ndon esia Economi c Corr idor s,

namely: the corridors of Sumatera, Java, Kalimantan, Sulawesi,

Bali – N usa Tenggara and Papua – M aluku Islands. T hese 6 (six)

econom ic corr id ors are developed th rough t he developm ent of

growt h centers in each corr idor by developi ng in dustrial clusters

and Special Econom ic Z ones (SEZ) that operate based on t he

key resour ces of each econo mi c corrid or. T he develop m ent th em e

of these six economic corridors has been determined according

to the potentia ls possessed by each region and the desi red

developm ent goal.

Secondly, strength enin g th e locally int egrated and int ernation ally

connected national conn ectiv i t y. Th e strengthening of national

connectivit y aim s to im prove the distr ibu ti on of goods and services

and reduce logistics transaction costs.

W ith in t he context of t he developm ent o f a local ly int egratedand i n te rna t i ona l l y connec ted na t i ona l connec t i v i t y , the

deve lopment and s t rengthen ing o f connect i v i ty i s done by

strengthening intra and inter connectiv i ty of economic growth

centers and int er corr idor ( island) connectiv i t y t o smoothen t he

collection and distri bution of r aw m aterial, semi fin ished m aterials

and f inal pr oducts moving in and out of t he corr id ors ( is lands).

IND ONESIA ECONOM IC CORRIDORS DEVELOPM ENT

Source: M aster Plan for the Acceleration and Expansion ofIndon esia's Economic D evelopment (M P3EI) 2011-2025, Coordinating M inis try of Economic Affairs


7



M eanw hile, int ernation al conn ectivity is enhanced by strengtheni ng

infrastructure networks, communications networks and commodity

movement (goods, services and information) effectively and

eff ic iently as the gateway for inter country trade and tourism.

T hird ly, accelerating capaci ty bui l d in g of h um an r esources in

In don esia and developin g science and technology t o suppo rt the

deve lopment o f ma jor p rograms in each economic corr idor .

Considering the “demography bonus” which Indonesia wil l have

in t he futu re, the quali ty of hum an r esources m ust b e enhanced.

Several policies are implemented to improve the quality of resources

such as by im proving th e qual i t y of education includi ng higher

education , vocati onal educatio n, and tr ain ing specifi cal ly related

to the development of major programs; increasing technological

competence and skills; enhancing research development activities

through collaboration between the government, business sectorand higher education institutions and develop a national sustainable

innovation system.

Regardi ng i nfr astru cture developm ent needs, the d evelopm ent of

major econom ic activ i t ies wi t hin In donesia Econom ic C orridors

needs to b e supp orted b y an abun dant am ount of energy resources.

W it h th e presence of I ndon esia Econom ic Cor ridor s, the electri city

needs in In donesia is predicted t o r each approxim ately 9 0,000

M W in 202 5 ( in peak condi t i on). Electr ic i ty is used to suppor t

th e developm ent of m ajor economic activit ies wit hin the corridor.

T he fu l f i l lment o f energy and o ther in f rast ru c ture needs wi l l

c e r t a i n l y r e q u i r e a s i g n i f i c a n t a m o u n t o f i n v e s t m e n t s .

In terms of investment needs to support the development of

In donesia Econom ic Corr idors, indi cation s show th at ID R 4,021

tr i l l ion wi l l be invested. O f t he total estim ated in vestm ent, the

government wi l l contr ibu te around 10% in the fo rm o f bas ic

infrastructures such as roads, seaports, airports, rai lroads and

power plants. The remaining contribution wil l be provided, from

t h e r o l e o f t h e p r i v a t e sec t o r , B U M N s a n d o t h e r s.

I n general , M P3EI can b e regarded as a mani f estatio n o f t he

collaboration between the government and the business sector as

an e f fo r t to deve lop a range o f key sectors and to ident i fy

in frastru cture needs to d evelop In don esia’s potenti al. M any haverealized that t he successful developm ent of I ndo nesia in t he fut ure

requires the particip ation of th e busin ess sector.

H opeful ly, mut ual com m itm ent of various stakehold ers could be

established th rough M P3EI to t ransform In donesia’s econom y to

achieve Indonesia’s vision of an independent, developed, just and

prosperous society.(*)

18% 32% 24% 8% 3% 15%% invetmentper corridor

Indicated value ofinvestments based

on investors

M ix

B U M N

Government

Private Sector

21%

18%

10%

51%

IDR Trillion

4.000

3.000

2.000

1.000

Sum atera Java K alim antan SulawesiBali - N usaTenggara

Papu a -M aluku island

Total6 Corridors

0

714

1.290

945

309

233622

4.012

In dicat ions of In vestm ents in the M ajor Econom ic Act iv i t ies of 6 Corr idors

Source: M P3EI 2011-2025, Coordinating M inistry of Economic Affairs


8




M eanwhi le, the explanation of L aw N o. 17/2007 which

is an integral part of the Law, explains that to achieve

equ i tab l e d i s t r i bu t i on o f deve l opmen t , reg i ona l

development wil l be implemented to improve the l iving

quality and welfare of the people as well as to equitably

distr ibute i t .

T he N ation al Long Term D evelopm ent Plan (RPJPN )

200 5-2 025 has been end orsed and becam e the basis for

deve l opmen t p rog rams fo r a pe r i od o f 20 yea rs

commencing from 2005 to 2025. In addi t ion, RPJPN

200 5-20 25 also serves as a guidelin e for t he preparation

o f the N at i on al M ed i um T erm D evel opm en t P l an

(RPJM N ) wh ich is a developm ent p rogram for th e next

5 years. T he Presid ent’s visio n and m issio n i s conveyed

in th e RPJM N and i t mu st also refer to R PJPN . W ithin

th is context, t here is a clear r elation ship between RPJPN

and RP JM N .

T he questi on th at arises is where is I ndo nesia econom ic

corr ido rs posi t i oned in the N at iona l D evelopm ent

Plannin g System and how does it int errelate wit h R PJPN

and RP JM N ?

THE RELATIONSHIP BETWEEN

MP3EI AND RPJPN

M P 3E I i s devel oped w i th the v i si on “ Creat i n g an

In depend ent, D eveloped, Just and Prosperous I nd onesian

So c i et y “ . T h i s v i si o n a l i g n s w i t h t h e n a t i o n a l

devel opm en t ’ s v i si on as set o u t i n RP JPN . T he

in terrelated vision ind icates th at M P3EI i s an integral

par t o f the N at ion al D evelopment P lann in g System.

Anot her m att er t hat ind icates int errelation is periodi city

betw een the two docum ent s. T he per iod o f M P3EI

starts from 2011 t o 2025. 2 025 is also th e end of the

im plementation of RPJPN . D espi t e having the same

completion period, the M P3EI document is not int ended

to replace th e RPJPN document. T he M P3EI docum ent

is actually a complementary document that integrates

wi th t he RPJPN docum ent and is specifical ly aim ed at

a c c e l e r a t i n g t h e d e v e l o p m e n t o f I n d o n e s i a .

In the M P3EI document , the developm ent o f m ajor

economic activ i t ies and the planned development of

faci l i t ies and in frastru cture to suppor t economi c activit y

are elaborated in greater d etai l wi th reference to the

RPJPN . T his is ref lected in t he vision “ C reati ng an

I ndependent , D eveloped, Just and Pro sperous I ndo nesian

S o c i e t y ” w h i c h w i l l b e a c h i e v e d b y 2 0 2 5 .

Besides referri ng to R PJPN , th e M P3EI d ocument also

consi de rs the N at i o na l A c t i on P l an fo r Reduc i ng

G reenh ouse G as Em ission (RA N -G RK ) wh i ch i s a

national comm itm ent related to cl imate change. A nother

document considered in t he developm ent of M P3EI is

th e N ational Strategic Spatial Plan.

Gi ven th at the M P3EI docum ent contains a variety of

strategic infrastructure development plans which aims

to support economic activity, the development of variousfacilit ies and inf rastr uctu res shou ld refer to th e N ational

St rategic Spat ial Plan so a con fl ict do es not arise between

in f ras t ruc ture deve lopment and e f fo r ts to p reserve

pro t ected areas.

Law no. 25/ 2004 regardi ng t he Nation al Develop ment Plann in g System has

mandated the integration of the long term, medium term and annual development

plan. This also indicates that the Law acts as a legal umbrella for the

im plementation of development plans in order to guarantee the achievement

of the countr y’s goals.


9

M P3EI a n d R PJPN - R PJM N



THE RELATIONSHIP BETWEEN

MP3EI AND RPJMN

T he next qu estion is what is the relat ionship between M P3EI

and t he RPJM N docum ent? In term s of thei r period, t he M P3EI

document clearly has a longer implementation period compared

to th e RPJM N document . Th e RPJM N document i s a 5 year

period document which ref lects the vis ion and mission of the

elected Presid ent and V ice Presid ent . An nu al ly, th e RPJM N

document is elaborated more technically t hrough the form ulation

of the Annual Work Plan (RKP) which forms the basis for the

determ ination of p rograms and budget al locati on f or every sector

and region.

M eanwhi le , the M P3EI docum ent i s p repared wi th a per iod

comm encing f rom 2011 un ti l 2025. H ence, several programs and

act i v i t i es ment ioned in the RPJM N document i s a par t o f the

deve lopment o f Indones ia economic corr idors wh ich wi l l be

im plement ed for appr oxim ately 15 years wi th r eference to R PJPN .

T here are several conn ecti ons betw een the R PJM N docum ent

(RPJM N 2010-2 014 curr entl y becomes the reference for the 5

y ea r d ev el o p m e n t p l a n ) a n d t h e M P 3 E I d o c u m en t .

Firstly, th e M P3EI document that cont ains a variety of Ind onesia’s

econom ic developm ent p lan fo r 2 011-2 025 serves as a reference

for t he fo rm ula t ion o f RPJM N , par t i cu la r l y i ssues re lated to

economi c developm ent and connect i v i t y . By re fer r in g to t he

M P3EI docum ent , the RPJM N document becomes the basis for

the formul ation of RK P and D raft State Budget (RA PBN ) so the

various programs and m ajor activ i t ies set f orth in M P3EI could

be imp lem ented.

Secondly, the relationship b etw een th e M P3EI and R PJM N 2010-

2014 document l ies within the context of regional development.

RPJM N 2010 -201 4 incor porates str ategies and d evelopment

directions that are divided in several regions. M eanwhi le, M P3EIhas also divided several economic corridors covering several islands

such as Sum atera, Java, K alim antan, Sul awesi, B ali-N usa Tenggara

and Papua and M aluku I slands.

The Connect ion Between M P3EI and Nat iona l Development P lan



10

M P3 EI a n d R PJPN - R PJM N



T herefore, the development of pol icy and strategy direction s

in R PJM N whi ch div ides the corr idors accordin g to each

island m ust consider th e developm ent str ategies set for th

in the M P3EI document .

W hat about RPJM at the regional level? C onsidering that

th e locus of t he developm ent M P3EI is based on t he division

of areas, more specifically in Indonesia economic corridors,

the role of the central government is merely l imi ted to

regulation formulation and investment al location for the

central government (government and private sector). In

contrast, the role of the regions grows larger where regions

act as the locati on and plays the role of t he direct u ser of

the determ ined corr id ors.

In add i t i on , reg i ons w i l l a l so p l ay a ro l e i n d ra f t i ng

regulations and d eterm ini ng in vestm ent al location in theregion (governm ent and pri vate). T herefore, regions need

to synergize the allocation of resources and the development

of k ey sectors, i nfr astru ctures, and spatia l p lanni ng w i t h

t h e c o n c e p t o f I n d o n e s i a e c o n o m i c c o r r i d o r s .

Such synergy is realized w it h r egulatory suppor t, locati on,

resources, and im plementation thr ough t he developm ent

i mp l emen ta t i on f ramework and de te rm i na t i on o f the

developm ent targets of r egion s as stated i n t he developm ent

p lan o f RPJM D and Reg ional Work P lan (RKPD ). W i th

such synergy, I nd onesia econo m ic cor ri dors are expected

to quickly be implemented and integrated in the central

or regional developm ent plan. T herefore, the priori ti zatio n

of regional development plans is expected to support the

developed economi c corrid ors.

SYNERGY BETWEEN PLANNING

DOCUMENTS

As a docum ent, M P3EI contains vari ous guidelines for t he

development of more speci f ic major economic activ i t ies

which are equipped with infrastructure needs and several

recommendations for changes/revisions of legislat ions.

N everth eless, synergy betw een the pl anni ng docu m ents is

r e q u i r e d t o g u a r a n t e e su c c essf u l d e v el o p m en t .

The Connection between M P3EI and Planning and Im plem entation


RPJMD

RenstraKL

Renja -KL

RKA - KL Detail ofAPBN

MP3EI(Indonesia’s

Economic Corridor)

Refer

Guideline

Guideline

RPJPN

RPJPD

RPJMN

Consider

Elaborate

RenstraSKPD

RKP

RKPD

Renja -SKPD

Align with Musrenbang

MP3EIAction Plan

RAPBN

RAPBD

RKA -SKPD

APBN

APBD

Detail ofAPBD

UU SPPN UU KN

Guideline

Guideline

Guideline

Guideline

Guideline

Guideline

Elaborate Guideline

Guideline Guideline

Refer

Refer

ReferRefer

Refer

Refer

Refer

Refer

Refer


11



Such synergy is realized with regulatory support, location,

resources, and implementation through the development

i m p l e m e n t a t i o n f r a m e w o r k a n d d e t e r m i n a t i o n o f t h e

developm ent targets of region s as stated in R PJM D and

R K P D .

As a planning document, the MP3EI

document is closely related with the

Long Term Development Plan (RPJP)

and RPJMN. M P3EI is formulated by

c o m b i n i n g 2 ( t w o ) k i n d s o f

approaches, namely sector and

regional (regional development)

which are in tegra ted in to the

development of economic corridors.

Those 2 (two) kinds of approaches

are also contained in the RPJMN and

RPJPN plann in g documents wh ich

also com bines sector and regional

planning.

T he sector approach is based on th e ident i f ication of k ey

sector s that h as high d evelopm ent p rospects globally and is

based on the idea that Indonesia has the potentia l andcapabi l i ty for enhancing i ts competi t iveness in the fu tu re.

M eanwhi le, regional approach or regional developm ent is

appl i ed t o pr opagate th e developm ent of key sectors that

have been determined the 6 (s i x ) i dent i f i ed economic

corridors.

To support th e developm ent of a region’s key pot ent ials and

to create planning synergy wi th the central government,

p l ann i ng i n a reas tha t se rve as the l oca t i on fo r the

im plementation o f econom ic corrido rs should be focused on

the f ol low in g issues:

a. A ccel erat i on on th e dete rm i na t i on o f the P rovi nc i a lStr ategic Spatial Plan (RT RW ) to resolve the conf l ict of

the uti l ization of land between forest, agricul ture and

m in in g areas;

b. Lack of law enfor cement. Securi ty and order th reats are

sti ll relatively high, in cludi ng in t our ism areas. Th erefor e,

local governments should increase security and order

through the implementation of strict rules and sanctions

for offenders;

c . H ar m o n i z at i o n o f l a w s an d r e gu l a t i o n s. T h e l o cal

governm ent together w ith the cent ral government should

increase the harmonization of laws and regulations.

O bstacles in i nt er region t rade wh ich can pot entia l ly

create high economy costs in the form of levies and tax

dup lication s must also be reduced; and

d. Co ordination between the centr al, provincial and regional

governm ent s to develop t he area in t o an econom ic

corr idor.

By considerin g t he dif ferences in th e characteristics of each

region, d evelopm ent synergy b etw een regions is the answer

t o e n c o u r a g e i n c r e a s e d p r o d u c t i v i t y a n d n a t i o n a l

compe t i t i veness by p r i o r i t i z i ng e f f i c i en t and e f fec t i ve

management of natural resources in order to encourage

harmony and balance of inter region development, observe

sustainable development principles and maintain sustainable

development.

T he stro ng role of t he govern m ent wi l l guarantee synergy in

al l exist in g development plan concepts of R PJPN , RPJM N ,

RK P, RPJPD , RPJM D , RK PD , Indon esia economic corridors

and variou s Regional M aster Plans. T he synergy of vario us

developm ent plan concepts wi l l result in the achievem ent of

th e desired developm ent targets both at regional and n ation al

levels.

Such synergy is realized with regulatory support, location,

resources, and implementation through the development

i m p l e m e n t a t i o n f r a m e w o r k a n d d e t e r m i n a t i o n o f t h e

developm ent t argets of region s as stated in R PJM D and

R K P D .

W it h such synergy, acceleration and expansion effort s of

Indonesia’s economic development through each economic

corr idor is expected to quickly be smoothly implementedand integrated in the central or regional development plan.

T herefore, the prior i t ization of regional developm ent plans

is expected to support the acceleration of the development

of the determined regions. (*)


12

M P3 EI a n d R PJPN - R PJM N



T hose six econom ic corr idor s in clud e th e Sum atra, Java,

K ali m ant an, Sulawesi, B ali, N usa Tenggara, and Papua –

M aluku Islands corrid or. Int ra regional connectivit y will be

developed in each corridor to connect the main economic

centers in each corrid or i nt ernally and externally wit h other

corridors and the world market.

Furt hermore, connectivity str engthenin g aim s to expand

economic development to the surrounding areas, especially

to und erdevelop ed, remote and border areas. H ence, successfu lacceleration and expansion of Indonesia’s economic

development depends on how strong Indonesia’s national

and international economic connectivity is.

Increased connectivity in those six economic corridors is

based on the integration of the four elements of national

poli cy whi ch consists of th e N ation al Logistics System

(Sislognas), t he N ation al Transport ation System (Sistr anas),

Regional D evelopment (RPJM N /RT RW N ) and Information

and C omm unicat ion Techno logy ( IC T ) . In t egrat ion i s

performed to achieve effective, efficient and integrated

nat iona l connect i v i ty in o rder to enhance nat iona l

competitiveness.

The integration of the four main elements aims to achieve

the vision of national connectivity which is locally integrated

and globally conn ected. Locally i nt egrated means integrating

the existing connectivity system effectively and efficientlyto support the mobilization of goods, services and people

to all parts of I ndon esia.

To d evelop an i nt egrated local connectivit y, transport ation

networks must be integrated with the transportation hubs.

In addi t ion to transportat ion networks and to support

connectivity, telecomm unications and i nform ation networks

should also be integrated.

T H E CO N N E CT I VI T Y O FSI X ECO N O M I C CO R RI D O R SThe Master Plan f or the Accelerati on and Expansion of Indonesia’s Economic

Development (MP3EI) has developed six economi c corr idors which are group edaccordi ng it s terr it ory based on the natural resources potenti al possessed by each

terri tory by considering in ter region connection .


13

E CO N O M I C CO RRI D O R



Such connectivity integration should be established in all regions inIndonesia. Some areas in eastern Indonesia tend to have minimal

transportation network s due to it s geographi cal condit ion and ot her

aspects. At least, we must observe how to integrate connectivity

effectively and efficiently to encourage equitable development between

regions.

M eanwh ile, globally int egrated m eans effective and effi cient nati onal

connectiv it y system wh ich int errelates wit h one anoth er and acts as

a door to the international world. In this case, the development of

seaports and airports that have trade and industrial facilities as well

as an effective and efficient cu stom wi ll becom e the key for achieving

th at goal.

In terms of connectivity, the Government is the driving force of the

creati on and developm ent of basic in frastr uctures to suppor t economi c

integration. In order to support economic integration, the government

can identify transportation hubs and distributi on cent ers to facilit ate

the logistical needs for m ain and suppor tin g comm odit ies and enhance

comm unications and inf ormation technology networks to f aci l i tate

all economic activities, government activities and the national

education sector.

W hen developin g the conn ectivit y system in an econom ic corri dor,effectiveness and efficiency and global connectedness is the main

factor that must be achieved. Some principles should be considered

to achieve it, such as: (1) enhanced flow of goods, services and

information, (2) reduced logistics costs, (3) reduced cost inefficiencies,

(4) realized equit able access across the region , and (5) reali zed synergy

between growth centers.

W ith r egards to effort s to str engt hen connectiv ity i n six econom ic

corridors, below are several enhancements that focus to encourage

t h e d e v e l o p m e n t t h e m e o f e a c h e c o n o m i c c o r r i d o r .

Connectivity Developm ent of Sum atra

Econom ic Corridor

Sumatra Island has great potential as a growth center in the ASEAN

sub region, Asia Pacific and other international areas. In addition,

Sum atra Island h as th e mo st str ategic t rading access com pared to

other major islands in Indonesia. It possesses a complete set of natural

resources such as agricult ure, pl antation , fi shery, forestr y and m in ing.

Four M ain Elem ents that Form National Connectivity




14



Based on t his factor, Sum atera Econom ic C orr idor is developed as

a “C ent er f or Produ ction and Processing of N atural Resources and

As N ation’s Energy Reserves” . T he developm ent of Sum atera Econom ic

C orri dor is directed t o several m ain econom ic acti viti es such as th e

developm ent of palm oil, rub ber, coal and steel.

To support the developm ent of each m ain econom ic activi ty, effor ts

to enhance connectivity such as the construction of toll roads and

railway l in es is required. Sumatr a is str ategically position ed as it is

adjacent to another count ry. Th erefore, connectivit y strength enin g

focuses on t he development of i nternation al hubs such as hub port s

for in ternation al ship pin g lin es on t he eastern and western coast of

Sumatera as an alternative to open and expand development

oppor tun i t i es ou ts ide Java, wh i le reduc ing Java ’s load.

Conn ectivity D evelopm ent of Java

Econom ic Corridor

T he rapid econom ic growt h i n Java is not balanced or suppor ted by

adequate natu ral resources. O n the other hand, Java has m ore adequate

infrastructures compared to other areas outside Java. Java remains

to be the most attractive island for investments as it has more adequate

inf rastr uctur es and is home to t he cent er of admin istr ati on. T herefore,

Java Econom ic C orrid or is developed to become the “D river for

N ational In dustry and Service Provision”.

Co nnectivit y strengthening th rough in frastr ucture developm ent is

focused on the northern part of Java which is marked by the

constr uction of t he Trans Java Roll Ro ad and r ai lw ay l ine whi ch

connects loci in order t o sm oothen the m ovement of comm oditi es

from nor th to south Java and vice versa. In additi on, seaport s and

airports are also developed as an attempt to smoothen the flow of

commod i t i es w i th i n the co r r i do r and be tween co r r i do rs .

T he developm ent of m ajor econom ic activit ies and connecti vity i n

Java Econom ic C orr id or i s expected t o address th e disparit y issue of

th e Gr oss Regional D om estic Product ( G RD P) between regions as

well as to encourage greater global integration.

Connectivity Developm ent of Kalim antan

Econom ic Corridor

Aside from possessing adequate amount of natural resources in the

agricult ure, min ing and f ishery sector, K alim antan is the developm ent

cent er in Eastern I ndo nesia. It is str ategically posit ion ed and supp ort s

int er regional cooperation. Fu rth erm ore, K alim ant an h as an enorm ous

potential in the mining sector (oi l , gas, gold and coal), forestry

(wood), plantation (palm oil and rubber) as well as sea and land

fishery.

The Fram ework of National Conn ectivity



15



T he developm ent of K alimantan Economi c Corr idor is designated

to become the “C ent er f or Producti on and Processing of N ational

M in ing and Energy Reserves” . Th e m ain econom ic acti vit ies in

K al im antan Economic C orridor w i l l focus on the four econom ic

centers of Pontianak, Palangkaraya, Banjarmasin and Samarinda

City which are connected through the Corridor Connecting Line.

In accordance with the Acceleration and Expansion of Indonesia’s

Econom ic D evelopm ent , several m ajor econom ic activi ti es have

been identi fied. T hese major econom ic activit ies have a potent ial

to support economic growth in Kal imantan Economic Corridor

i n t h e f u t u r e , n a m e l y : i r o n s t e e l , b a u x i t e a n d t i m b e r .

As a large region, some major economic centers in Kalimantan

menti oned in th e spatia l p lan of K al imantan wi l l be conn ected

wi t h the Trans K al im antan road and rai lway network wh ich wi l l

be i n teg rated w i t h r i ver t ranspo r ta t i on . W i th many p r i va te

compan i es engaged i n the m i n i ng sec to r i n K a l i man tan ,in f r ast ru c ture developm ent in Ka l im antan wi l l be conducted

through the in f ras t ruc ture deve lopment consor t ium mode l .

T hrough t h i s m ode l , companies engaged in m in i ng , coal i n

particular, will share the development and usage of infrastructures

such as rai lway and roads so eff ic iency wi l l be increased.

Connect iv i ty D evelopm ent of Sulawesi

Econom ic Corr idor

Sulawesi is the development center in Eastern Indonesia, is

strategically posit ion ed and suppor ts int er region al cooperation .

In addi ti on, th e region possesses adequate n atur al resour ces in

th e agricult ure, m ini ng and fishery sector. Sulawesi I sland h as a

great potential in the plantation sector (cocoa, cloves, coffee and

cashew nu t), m arine fishery (t un a and skip jack), crops (rice and

corn) and m inin g (nickel , asphal t and m arble).

Based on the various exist ing potentia ls, Sulawesi Economic

C orridor developed as the “C enter f or Produ ction and Processing

of N at iona l Agr i cu l tu r al , P lan ta t ion , F ishery , O i l & Gas, and

M i n i ng”

In frastr uctur e D evelopm ent in Sum atera focuses on t he movement

of goods (crops and mining products) to a processing or industrial

area which w il l t hen be transported to th e port. W ater and energy

in frastruct ur e develop m ent also appli es th e sam e fo cus. W ater

and energy in frastr ucture is developed to support the pro ducti on

o f ag r i cu l tu re , p l an ta t i on and m i n i ng i n eve ry p rov i nce .

T he developm ent of Sulawesi Econom ic Cor ridor wi l l evolve in

accordance with the construction and existence of Trans Sulawesi

Tol l R oad wh ich l in ks South Sulawesi w i th N orth Sulawesi . In

additi on, given th at the corrid or is located by th e Pacifi c O cean

and in ternat iona l sh ipp i ng l i ne , several l ocat ion s shou l d be

determi ned to fun ct ion as in t ernat iona l hubs. H opefu l l y , the

determination of international hubs in Eastern Indonesia wi l l

accelerate development in Eastern Indonesia which is dominated

by islands.

ILUSTRATION OF THE ECONOMIC CORRIDOR




16



Connectivity Developm ent of Bali – Nusa

Tenggara Econom ic Corridor

As an int egrated r egion, th e region of B ali – N usa Tenggara actu ally

has huge development potential due to its natural resources in

particular, livestock, fishery and tourism. The large marine fishery

resour ces pot enti al have not been m an aged opt im ally yet. Th e

potent ial of field, for est and plantati on resources is also large so

there is an op port un ity to m anage th ose natural resources for

regional economi c developm ent .

T he D evelopm ent of Bali – N usa Tenggara Economic C orridor

is designated to becom e th e “T ouri sm G ateway and N ational Food

Support ”. I n the long run, tou rism activities in t his corridor wi l l

become the drivin g force of econom ic development in Bali – N usa

Tenggara Economi c Corr idor. T his can be achi eved th rough t he

diversifi catio n of tou rism p roducts, expansion of tour ism area,sustainable development of the competitiveness of tourism

destin ations and th e developm ent of a market share wit h h igh

purchasing power.

In f ras t ruc ture deve lopment i s conducted in l i ne wi th the

development of t ourism destinations wi thi n the corr idor. Th e

development of f armin g activi ties wil l be pur sued consistentl y

through the development of advanced technology to improve the

quality of cattle, integrate faming activities with crops to guarantee

th e food source for livesto ck, develop pr ocessin g in dustri es and

increase the capacity of road and seaport infrastructures for the

distribut ion of f arm products.

By considering the geographical condition of this corridor which

compr ises of i slands, transport ation in Bali – N usa Tenggara

Economic Corridor is developed with an emphasis on land, sea

and ai r connectiv i ty which connects is lands and provinces.

T his connectivity system will support all m ajor economic activiti es

(tour ism , farm in g and fishery) as well as oth er activit ies that h ave

high investm ent value. M inin g exploration i s not pr iorit ized in

this corridor because it would deliver negative impacts on the

tourism, fishery and farming sector. Seaport and airport development

is prioritized for existing ports located adjacent to the major

econom ic activit y loci in order to m ake it m ore effective, efficient

and to minimize transportation costs.

Connectivity D evelopm ent of Papua – Malu ku

Islands Econom ic Corr idor

M aluku I slands has a large development pot ent ial due to i ts natural

resour ces, especially fishery and m ari ne to uri sm. I t has m assive

marine fishery resources potential but it has not been managed

optimally yet. In contrast, Papua still has a great opportunity for

developm ent in term s of n atu ral resources, especial ly m ini ng,

forestry, fishery, plantation and marine tourism.

Based on variou s existi ng pot enti als, Papua – M aluku Islands

Economic Corridor is developed to become the “Center for

D evelopm ent of Food, Fishery, Energy and N atio nal M ini ng”.

T he developm ent of Papua – M aluku I slands Econom ic Corr idor

wi l l focus on the preparation of the Sofi f i -Ambon-Sorong-

M anokw ari-T im ika connectivity. M erauke In tegrated Food andEnergy Estate in M erauke wh ich i s presently being developed

should be supported by the preparation of internationally scaled

inf rastru ctures wit h th e developm ent of airport s and seaport s.

In addi t ion , land connectiv i ty from Ti mi ka-Jayapura-M erauke

shou ld also be developed in l ine wi th the growin g econom ic cent ers

in each corrid or h ubs. Considering that t he costs requir ed fo r t he

developm ent of th is area is very l arge, foreign f un ds may be requ ired.

T herefore, th e governm ent can start t he feasibi lit y stu dy on t he

developm ent of t he area to ease the m arketin g of tho se areas to

attract in vestors. (* )


17



As a result , variou s problem s such as hi gh p rice di sparit y b etw een

region s arise. T hese problems remain to be a major o bstacle in th e

development of competitive main economic corridors, particularly

in eastern Indonesia.

The condition expected from inter region connection is strong

national economi c connectivit y (in tra and in ter region) as well as

strong international economic connectivity between Indonesia and

the world market. Indonesia’s national connectivity is an integral

and in separable part of glob al connectivit y. T herefore, Ind onesia’s

national connectivity must be connected with regional and global

economic centers in order to enhance national competitiveness.

Strengthenin g the n ation al connectivi ty is essential t o m axim ize th e

benefit s of regional and global/in ternation al conn ectivi ty. Th is can

be realized t hrou gh the int egration of t he four elem ent s of n ati onal

policy wh ich consists of t he N ati onal L ogistics System (Sislognas),

the N ational Transportation System (Sistranas), Regional D evelopm ent

( R PJM N / R T R W N ) an d I n f o r m a t i on an d C o m m u n i cat i o n

Techno logy ( ICT / IC T ) .

In th e conn ectivit y scheme of plannin g docum ents (see th e schem e

on t he con nection b etween t he M aster Plan for t he Acceleratio n and

Expansion of I ndonesia’s Economi c D evelopm ent (M P3EI) and the

national developm ent plan document), i t is clear that th e M P3EI

document m ust be restr uctured in the form of an action plan. Th e

acti on pl an shou ld be closely associated wit h t he Governm ent W ork

Plan (R K P) and is used t o develop the D raft State Budget ( RAPBN ).

In addition, t he M P3EI docum ent also aims to become a guideline

for the development of investment policies for the private sector and

Public Private Part nership (PPP).

MP3EI ACTION PLAN

Indonesia needs to provide infrastructures which aims to support

economic activities. Infrastructure availability has a broad spectrum.

In frastru ctures th at encourage inter region conn ectivit y should r eceive

m ain attention to accelerate and expand econom ic developm ent in

Indonesia.

Infrastructure provision that support connectiv i ty wi l l reduce

tr anspor tati on and lo gistics costs, also increasin g th e comp eti ti veness

of p rodu cts and acceleratin g econom ic m ovem ent . I nfr astructu re

connectivit y includes the developm ent of t ransport ation and IC T

lines along with all related rules and regulations.

Such connectivity mu st b e suppor ted by t he national transport ation

system that synergizes with multi and inner transportation modes

by considering the characteristics of each transportation mode,

regional development, geographical aspects, region specific factors

and selection of appropriate technologies.

National i nter region connectivi ty system and i ts linkage wi th global connectivi ty is required

to suppor t nati onal econom ic integrati on. The nation al logisti cs system fail ed to operate

effi ciently and effecti vely due to lack of support from domesti c connecti vity, technology and

reliable in form ation system.


18

A C T I O N P L A N



T he Strengthening N ational Con nectiv i ty action plan i n M P3EI

aims to: (1) connect major economic growth centers in order to

maximize growth, (2) expand economic growth through increased

accessibility of economic growth centers and (3) widely disseminate

th e benefit s of d evelopment ( in clusive and equit able growt h) t hro ugh

the enhancement of connectivity and basic services in underdeveloped,

remot e and border areas to ensure equal di str ibut ion of development .

Speci f ical ly, th e pur pose of t he developm ent of th e M P3EI

Co nn ectivi ty M aster Plan are to (1) Become a guidelin e th at includes

goals, strategies, and p olici es on t he acceleration of t he im plem ent ation

of th e developm ent and f undin g of M P3EI activit ies that encourage

national connectivity; (2) Become a guideline for the Economic

Cor rid or Team and activit y im plementers in accordance wit h th e

goals and targets of M P3EI acti vit ies th at encour age conn ectiv it y

which wi l l be implemented in 2011-2012; (3) Coordinate and

synchronize the existing resources at the central, provincial and

regency/m uni cipal level in th e corri dor t o in crease effi ciency in th e

im plem entation of 2011-2012 M P3EI activit ies; either in terms of

fundi ng from the State Budget, Provincial Regional Budget ( APBD ),

Regency/M unicipal A PBD , contr ibutions from donor inst i tut i ons

and PPP or ot her sources of f und ing; and (4) Provid e inputs for t he

form ulation and im provement of planning docum ent s in t he central

and regional level.

T he connectivity action plan in t he M P3EI fr amework is form ulated

based on t wo pri ncipl es.

First, the imp lemented connectiv ity action pl an is expected to pr ovideadded value to the existing infrastructures. Added value can be gained

by improving the condition of existing faci l i ties infrastructures,

improving infrastructure management and eff ic ient usage of

infrastructures.

Second, th e connectivit y action plan is impl emented wi th a focus

on i ncreased am ount of i nfr astr uctures and new inf rastru ctures.

T hese tw o items could be implemented inter corridor and wit hin

a cert ain corridor. I nter corrido r m eans that th e conn ectivit y action

plan could be im plemented in all corri dors or is not just focused on

one specific corridor with activities in the form of policy or regulation

formulation for small scaled projects. In contrast, certain corridor

means that the activities of the action plan only focus on certaincorridors and is project based.

T he action plan is expected t o strengthen n ation al conn ectivit y t hat

focuses on several n ation al developm ent p rio rit ies related t o p hysical

connectivity such as the development of ports, airports, railway, and

roads in the transportation sector; energy development; national

logistics system and I C T developm ent wh ich have been d ivid ed in

each economi c corrido r.

Concepts of Gate Port an d I nternational Airport in the Future



19



T he action plan for t he perio d of 201 1-201 5 is the fir st phase of

the quick win phase. In this phase, activities are focused to shape

and operate M P3EI im plementing insti tut ions which wil l d evelop

an action plan f or debott lenecki ng regulation s, licenses, in cent ives

and the development of supporting infrastructures needed and

real ize investm ent comm itm ents (qui ck w ins).

Policy and regulation formulation in this first phase emphasizes

on inter corridor development. In addition, national connectivity

is strength ened especial ly wi th t he determ in ation of global hubs

for seaports and airport s in the corri dors in W estern and Eastern

Indonesia.

Another issue developed in the first phase of the formulation of

the M P3EI A ction Plan i s the preparation of hi gh qual i ty hum an

resources. T hi s correspon ds to th e dem ographi c bon us that

In don esia holds unti l 2030. T he preparati on of h um an resourcesin focused on th e establi shm ent o f centers of excellence related

to the m ain economi c corr idors of each corr id or. T his is a f i rst

step tow ards th e developm ent of I C T capacity.

Sp e ci f i c a l l y , i n t h e sh o r t t e r m , M P 3 E I f o c u se s o n t h e

im plementatio n of various action plans wh ich m ust be compl eted

by 2014 . T he short term action plan aim s to ensure that strategic

initiatives can be implemented and can serve as a basis for the

acceleration and expansion of econom ic developm ent in subsequent

phases.

In the second phase (2016-2020), the activities wil l be focused

to accelerate the development of long term infrastructure projects,strengthen innovation abil i ty to increase the competitiveness of

M P3EI m ain econom ic activi ties, enhance econom ic governance

in various f ie lds and encourage the expansion of industr ia l

developm ent wh ich w il l cr eate added value.

In t he thi rd phase (2021 -2025 ), M P3EI activi ties wil l em phasize

on strengthening industr ia l competi t iveness to win the global

competition and the application of high technology for sustainable

development.

P R I O R I T I Z E D

C O N N E CT I V I T Y AC T I V I T I E S I N M P 3 EI

Priorit ized conn ectivit y activiti es in the fir st phase is divi ded i nto

two par ts , namely in te r corr idor p r io r i t i za t ion and corr idor

priori t i zation. Corr idor p rior i t i zation is an activ i ty performed by

the ministr ies/ insti tut ions of each corr idor. Funding for such

activi ty derives from APBN and is suppor ted by fund s from State

O wn ed Ent erprises (BU M N s)/A PBD /Private Sector. T he activities

m enti oned in th e M P3EI Acti on Plan are prior i t i zed activ i t ies

aimed to overcome the strategic issues of each corr idor in

accordance wi th the economic potentia ls possessed by each

economi c corr idor.

Following are several prioritized connectivity activities that are

d iv ided accord in g to i ts corr idor i n the M P3EI act ion p lan :

Firstly, Sum atr a Econom ic Corr idor. T he priorit ized connectivi ty

activi ties in this corridor f ocus on i mp roving th e quality of roads,

rai lways, electricity and port services in order to develop main

economic activities such as palm oil, rubber, coal and steel industry.

Furth erm ore, inter connectiv i ty development in the corr idors of

Sum atra and Java is also priori ti zed thro ugh t he constru ction of

Sunda Strait Bridge (JSS).

Second ly , Java Economic Corr idor . Pr io r i t i zed connect i v i ty

activities are focused to increase electricity provision, improve

service in major ports in Jakarta, Semarang and Surabaya to

develop t he main economi c activit y of t exti l e and to construct of

j et t i es to sup po r t the sh ippi ng industr y. I n the t elem at i cs sector ,

connec t i v i t y i s p r i o r i t i zed on the deve l opmen t o f secu re

comm uni cati on and in form ati on systems. M eanwhil e, Jabodetabek

area is developed through various prioritized activities such as

airport and seaport development, monorail construction and the

deve l opmen t o f a f l ood con t ro l sys tem i n Jabode tabek .

T hirdly, Kal im antan Economic Corri dor. Priori t ized connectiv i tyactivities in this corridor focus on the development of coal railway

netw ork s, im provement and in crease of ri ver and seaport capacity,


20

A C T I O N P L A N

National Connectivity Vision




i mp rovemen t and i nc rease o f powe r p l an t capac i t y and

improvement of road access for the economic activities of palm

oil, steel and bauxite.

Fourthl y, Sulawesi Econom ic C orrid or. Priori t ized connectiv i ty

activ i t ies in th is corr idor focus on the improvement of access

roads and i r r i ga t ion fac i l i t i es to suppor t the main economic

activit y of agricultur e. M eanwhil e, to support the main econom ic

acti vit ies of cocoa and ni ckel, several activit ies are prior iti zed t o

increase port capacity, road capacity, electricity supply, water

supp ly and telecom m un icati ons access.

To develop the fishery economic activity, the fol lowing activities

are prioritized: the development of fishing ports and Fish Processing

U ni ts (U PI) and th e constr uctio n of f ish stor age faci l i t i es. In

order to develop the main activ i ty of o i l and gas, oi l and gas

refining infrastructures as well as fuel storage facilities are required.

F i f th l y , Bal i -N usa Tenggara Econom ic C orr id or . Pr io r i t i zed

connectiv i ty activ i t ies in th i s corr idor focus to enhance ai rpor t

deve l opmen t , enhance capac i t y bu i l d i ng , deve l op road

infrastructures and construct new power plants to support the

main economic activ i t y of touri sm, increase f ishery production ,

develop the sal t business and support l ivestock production.

Sixthly, Papua – M aluku Is lands Econom ic C orridor. Priori t ized

connectivity activities in this corridor focus on the development

of water resources infrastructure networks, improvement and

developm ent of sea and river por ts, im provement and d evelopm ent

of roads and brid ges, constru ction of pow er plants to support the

development of th e main econom ic activit ies of palm oil , copper,

ni ckel, oi l and gas and f ishery.

A l l o f the p r i o r i t i zed connect i v i t y ac t i v i t i e s i n M P 3E I a re

im plement ed thro ugh synergized developm ent between t he cent ral

and local government as well as between regions. Synergized

development between regions is implemented by strengthening

national connectiv i ty that ut i l izes the regional and global geo

str ategic posi t ion . Thi s wi l l become the backbone that form s

national connectivity and is expected to function as an instrument

for creating b alance in region al econom y.

T his does not o nly encourage equitable distribu tion of econom ic

acti vit ies to all part s of I ndo nesia, it can also create independence

and com pet i t i veness o f an i n tegrated nat ion al economy. ( * )

Java Econom ic Corr idor

21National Connectivity 2011 Special Edition - S USTAINING PARTNERSHIP




In 2025, Indonesia wil l gain a ti tle as a developed country with

an incom e per capi t a ranging from U SD 14 ,250 – 15,500 wi t h

a G ross D omestic Product (GD P) of about U SD 4.0 - 4.5 tri l l ion.

To realize this vision, the real economy must grow by 6.4% to

7.5% in the period of 2011 – 2014 and approximately 8.0% to

9.0% in the period of 2015 – 2025. Economic growth must be

accomp anied by in flation reduction of 6 .5% in t he period of 2 011

– 20 14. T herefo re, the i n f lat ion rate w i ll beco m e 3 .0 % in 20 25 .

H ow cou ld I ndo nesia 2025 vi sion be achieved? At least, t here are

th ree main strategies in M P3EI . Firstly, develop economi c potenti al

thr ough t he economi c corr idor s. Secondly, strengthen national

connectiv i ty. T hi rd ly, strengthen h um an resource capaci ty and

national science.

T he strategy of nati onal connectivit y m ust be supp ort ed because

as the world’s largest archipelagic nation, Indonesia has a vast

terri tory. Indonesia stretches for 5,200 km long and is 1,870 km

wi de . F ac ts on the f i e l d shows tha t l a ck o f i n te r i s l and

transportation has increased distribution costs, thus drastical ly

in creases the pr ice of good s.

T he econom ies become focused on int ra island econom y and n ot

inter island economy. Economic differential power is scattered

on variou s islands. As a consequence, i t could not be uni ted dueto the absence of connective modes.

I f domest i c connect i v i ty i s good, the wor ld wi l l i nd i rec t l y be

closer to In don esia because th e count ry’s geographical l ocati on

is very strategic as i t is located adjacent to M alacca Str ait w hi ch

is the main route for global container ships.

In re l a t i on to the deve l opmen t o f na t i ona l connec t i v i t y ,

inf rastru cture developm ent mu st b e priori t ized. For instance is

the deve lopment o f roads, por ts , a i rpor ts un t i l suppor t ing

infrastructures such as water.

D espite t hat in frastru cture developm ent is the governm ent’s duty,

the govern m ent has l im i ted fund ing ab i l i t y . T herefore , the

governm ent has includ ed 33 Publ ic Private Part nership (PPP)

projects in the M P3EI docum ent .

According to the calculation of t he M inistry of N ational D evelopment

Planni ng (PPN )/ N ational D evelopm ent Planni ng Agency (Bappenas),

the target for fun ding of i nfrastru cture developm ent fin anced by th e

PPP schem e wil l reach ID R 327.8 t ri l l ion.

Opinion About Connectivity in MP3EIPriori tization of ConstructionOn 20th May 2011, President Susilo Bambang Yudhoyono signed the “Master Plan for the

Acceleration and Expansion of Indonesia’s Economic Developm ent” or MP3EI. Thi s Master

Plan wi ll be implemented in 2011 – 2025 with the hope that Indonesia will stand equally wi th

developed count ri es in the world.

E X PE RT O P I N I O N


22



PPP PROJECTS

“PPP pro jec ts are encouraged to s t rengthen in f ras t ruc ture

avai labi l i t y,” said the D irector fo r Publ i c Private Part nership

D evelopm ent of t he M ini stry of PPN /B appenas, Bastary Pandj i

Indra.

Some of th e tol l r oad projects whi ch wi l l be bui l t w i th t he PPP

schem e am ong oth ers include M edan-K ualanamu -Tebing T inggi

Tol l Road, Palembang-In dralaya Tol l Road, Pekanbaru-D um ai

Toll Ro ad, Balikpapan-Sam arinda Toll Road and M anado-Bit ung

Tol l R oad.

O n t he other hand, some airpor t and seaport pr ojects include the

expansion of Tanjung Priok Port, Kertajati International Airport,

Kulonp rogo International Ai rport and t he construction of M aloy

Port in E ast K al im antan.

For Vi ce M ini ster of Transport at io n, Bambang Susantono, t he

most impor t an t f ac tor in the imp lementat ion o f M P3EI i s the

commencement of construction work. “ W hat must be priori t ized

is construction, construction and construction,” he said. According

to h im, the governm ent is try ing to meet t he demand. T he main

function of development is to reduce the widening gap between

demand and supply.

Present ly, the governm ent and State Ow ned Enterprises (BU M N )

have started ph ysical wor k. An gkasa Pura I I , for instance, h as

ini t iated th e construction of th e f i rst foundation at D epati Am ir

Air port in Pangkalpin ang on 24t h O ctober 2011; Taha Sul t an

Air port i n Jambi, last M onday; and Supaio Ai rport in Pontianak,

K al i man tan i s p l anned to f o l l ow on 2 7 th D ecember 2011 .

T here are th ree str ategies th at can be used t o r ealize in fr astr uctu re

deve l opmen t . F i r s t l y , s i mp l i f y the l i cens i ng p rocess fo r

infr astru ctures th at wil l be buil t by t he private sector. T he rai lw ay

cons t ruc t i on i n E as t K a l i man tan i s an examp l e o f such

simpl i f ication. Secondly, focus on the usage of State Budget

(APBN ) such as in the construction of th e double rai lway tracks

of Pantura l ine.

T h i rd l y , emp ower the ab i l i t y o f B U M N s to accel era te the

deve lopment o f p ro jec ts such as the de legat ion o f ra i lway

development to PT. Kereta Api Indonesia/Indonesia Rai lway

C o m p a n y ( P T . K A I ) . I n a d d i t i o n , s e v e r a l i n i t i a t i v e s a r e

im plemented by the Ind onesia Port C orporation I I ( PT Pel indo)

to con struct port faci l i t ies.

Ch ai rm an o f th e Indonesi an T r anspo r ta t i on S oci e ty (M T I ) ,

Professor D anang Parik esit , of t he Facult y of En gineeri ng, G adjah

M ada U niversi ty in Yogyakarta revealed t hat t here is optim ism

in the im p lementa t ion o f M P3EI. “ Var ious team s have beenfor m ed and t hey have start ed work ing. T he resul t s are also

beginni ng to appear”, h e said.

D anang hop es that in 2012 , various large scale inf rastr uctur e

proj ects wil l be im plem ented. “ In fact, th ese projects have been

schedul ed sin ce a long tim e ago. Th erefore, M P3EI onl y int roduces

old p rojects wi th a new face,” he said.

W hat D anang means by new face is th e categori zati on of p roj ects

wi th in economi c corr id ors. H ence, developm ent can be mo re

prioritized and focused.

T he classic pr oblem in infrastru cture developm ent in Ind onesia

is land acquisiti on. T he Land Acqui sit ion B il l p lays a crucial role

in encourag ing the smooth imp lementa t ion o f i n f ras t ruc ture

pr ojects, especially th ose that requi re a vast am oun t of land such

as to ll roads.


23



M oreover, th e Presid ent D irector of PT . Jasa M arga T bk , Frans

S. Sunito for example, has always been saying, “In this world,

only the land acquisi t ion process in Indonesia is conducted

through d el iberation” .

As an i l lustration, the construction of the Trans Java Toll Road

that connects Jakarta – Surabaya has not been completed due to

slow l and acquisiti on. A noth er exam ple is the constru ction of th e

new runw ay at S oeka rno – H at ta In te rnat i ona l A i r po r t i n

Cengkareng whi ch requires 830 hectares of land. W ith t he new

l eg i s l a t i on , the l and acqu i s i t i on p rocess w i l l be fas te r .

T he Land Acqui siti on L aw whi ch consists of 62 chapters is quite

progr essive. In fact, some arti cles state th at com pensation does

n o t o n l y c o m e i n t h e f o r m o f c a s h , b u t a l s o s h a r e s .

REVISION OF M P3EI

In i t s developm ent , th e N ati onal L ogist ics System (Sislognas)

blueprint that aims to suppor t M P3EI i s also subject to criti cism .

For example, the master plan of Sislognas is considered to ignore

the developm ent and im provem ent of land transport at ion such

as logistics trucks.

“ In fact, 9 0% of goods in In donesia are transport ed by logist ics

tr ucks. T hese truck s have not been t ouch ed by Sislognas to supp ort

M P 3 E I , ” sai d t h e C h a i r m a n o f t h e L a n d T r an sp o r t a t i o n

O rganizatio n (O rganda), Ek a Sari Lorena, when asked for her

op in ion about M P3EI.

Eka shows that from the 11 programs included in quick wins,

th ere is no p rogram w hich explici tl y discusses land t ransportation .

T he 7 th po in t on ly m ent ion s tha t the balance of com pet i t i on

between land and sea transportation .

I ron ical l y, data f rom M P3EI wh i ch quot ed f rom the founder o f

In dependent Research Advi sory I nd onesia, Lin C he W ei, states

that the portion of investm ent in road infrastru cture is 19% . Th is

i s la rger t han ra i lway (18% ), por ts (7%) and ai rpor ts (2%).

“ Roads are constru cted wit hou t im provi ng the users. T herefor e,

no m att er how long roads are bui l t , i t w i l l n ever m eet t he road

demand because road users wil l never be efficient,” said Eka.

In essence, said Eka, how could we mobil ize goods and people

effectively wi t hin th e economic corr i dors i f th e plan i s not wel l

prepared? “ Present ly, there are 6 m illi on u nit s of t ucks in I ndon esia

where 64% are aged betw een 1 0-24 years. D o no t t alk about

effi ciency,” said Eka. H e added th at it is dif ficu lt r ejuv enate truck s

wi t hout governm ent incentives.

“ W e need 60,000 tru cks per year bu t t he domestic autom otive

industry is only capable of providing 30,000 trucks per year. We

wish to import trucks, but we are constrained in doing so,” he

said.

For Eka, m any detai led plans in M P3EI shou ld be reviewed and

focused more. “I see that many policies are made in the room.

M ore benefi ts could be obtained i f we talk more wi t h th e f ie ld

operators, “he said.

M eanwh i le, D joko Seti jow arno an expert in t ransportat ion f rom

Soegijapranata Catholic University reminded various parties to

always observe projects overseen by the local government.

“ W e should avoid th e situ ation where transportation i nfr astru ctures

have been construct ed but t he govern m ent does not develop t he

transportat ion mod es and pr oducti on cent ers. Keep an eye onhow vi l lage roads are constr ucted and m aintained. D o not al low

h igh economic costs to ar i se due to the loca l government ’s

ignorance in developin g the transportation networ ks in t he region,”

said D joko.

Simil ar to ot her projects, M P3EI i s in t he mid- term ph ase where

th e era is rapidl y changin g. Th us, i t is cru cial t hat progr am s

should be mo re focused and revised. T his shoul d n ot be avoided

as purely intends to accelerate development in this country. (*)


24

E X PE RT O P I N I O N



33 P PP PROJECTS TO SU PPORT M P3EIT he governm ent has in cluded 33 Pub lic Private Partn ership (PPP) Projects in the M aster Plan for t he Acceleration and Expansion

of I ndon esia’s Econom ic D evelopm ent (M P3EI) d ocument. T he D irector ate of Publ i c Private Partn ership D evelopm ent (PK PS)of t he M in ist ry o f N at ional D evelopment P lann i ng (PPN )/N at iona l D evelopm ent P lann in g Agency (Bappenas) , sta ted t hat the

p r o j e ct s w e r e d el i b e r a t e l y i n c l u d e d i n t h e M P 3 E I p r o g r a m t o ac c el e r at e i n f r a st r u c t u r e d e v el o p m en t .

Bappenas has set a target of I D R 327.8 t r i l l ion of f und s to f in ance in frastru cture developm ent i n th e M P3EI d ocument w i th t he

PPP scheme. T hat amount of fu nds is an accum ulation of 33 PPP projects l isted in the M P3EI d ocument. T he 33 PPP projects as

l isted in the PPP Book.

No Project TitleProject

Estimation Value (milli on)Location / Corri dor Planned Operation

South Banten A irport

Expansion of Tanjung Priok Port

M edan-Kualanamu-Tebing Tinggi Toll Road

Strategic Inf rastructure and Regional Developm ent of Sunda Strait

D KI Jakarta-Bekasi-K arawang Water Supply (Jatiluhur )

USD 213,61

U SD 1.170,61

USD 670.40

USD 25.000

USD 189,30

Pandeglang Regency, Banten/ Java

Kalibaru Sub D istrict, DKI Jakarta/ Java

North Sumatera/Sumatera

Banten & Lampung/ Java -Sumatera

D KI Jakarta & West Java/ Java

2015

2015

2015

2021

2014

1

2

3

4

5

READY FOR O FFER PROJECTS

T hese cover PPP projects th at have m et the fol l owi ng crit eria: (i) Th e tender docum ent has been com pleted, (i i ) T he PPP tender

comm it tee has been establi shed and is ready to op erate, (i i i ) T he tender scheduled has been d eterm in ed, ( iv) G overnm ent suppor t

has approved (i f r equired).

Below i s the list of ready for off er proj ects:

PROJECTS IN TR ANSACTI ON PROCESS

Below i s the list of p rojects in t ransacti on p rocess:

No Project Titl eProject

Estim ation Value (mi llion) Location / Corridor Planned Operation

Um bulan Water Supply

Cent ral Java Co al Fired System Power Plant 2.00 0 M W

Soekarno-H atta Ai rport M anggarai Railw ay D evelopment

Puruk C ahu-Bangkuang Coal Railway

East Java / Java

C entral Tengah / Java

D KI Jakarta / Java

Central Kalimantan / K ali m ant an

2014

2015

2013

2014

1

2

3

4

U SD 204.20

USD 700

U SD 204.20

USD 2,100

25National Connectivity 2011 Special Edition - S USTAINING PARTNERSHIP

P P P P R O JE C T



PRI ORI TY PROJECTS

Are PPP projects that have met the fol lowing criteria: (i) Included in the Potential PPP Project Plan proposed by the contractor as

an unsolicited project, (ii) Based on the pre feasibility, the project is legally, technically, and financially feasible; (iii) Risk identification

and its al lo cati on h as been i denti fied, (iv) T he PPP scheme has been determ in ed, (v) G overn m ent supp ort has been id entif ied (for

marginal projects).

Below i s the list of pri orit y projects:

M edan-Binjai Toll Road (15,8 km)PPP M odality:> Land acquisition cost and part of construction w ill b e carried out

by government.> T he concession period wi ll be grant ed for 35 years.

Palembang-Indralaya Toll Road (22 km )

PPP M odality:> BOT (Build-O perate-Transfer)> T he concession period wi ll be grant ed for 35 years.

Tegineneng-Babatan Toll Road (50 km )PPP M odality:> B O T> T he concession period wi ll be grant ed for 35 years.

Kemayoran-K ampung M elayu Toll Road (9,65 km )PPP M odality: BO T

Sunter-Rawa Buaya-Batu Ceper Toll Road (22,92 km )PPP M odality: BO T

Ulujami-Tanah Abang Toll Road (8,27 km)

PPP M odality: BO T

Pasar M in ggu-Casablanca Toll Road (9,56 km )PPP M odality: BO T

Sunter-Pulo G ebang-Tam belang Toll Road (25,73 k m )PPP M odality: BO T

D uri Pulo-Kampung M elayu Toll Road (11,38 km)PPP M odality: BO T

Toll Road Access to Tanjun g Priok (16,67 k m)PPP M odality:> D esign and constru ction wor k wil l be conducted by the governm ent> O peration and m aint enance wil l b e offerred to th e private sector

through tender mechanism

Pasirkoja-Soreang Toll Road (15 km)PPP M odality:> B O T> T he concession period wi ll be grant ed for 35 years.

N orth Sumatera / Sumatera

South Sumatera /

Sumatera

Lampung - SouthSumatera

D KI Jakarta/ Java

D KI Jakarta/ Java

D KI Jakarta/

Java

D KI Jakarta/ Java

D KI Jakarta/ Java

D KI Jakarta/ Java

D KI Jakarta/ Java

W est Java / Java

Solicited

Solicited

Solicited

Solicited

Solicited

Solicited

Solicited

Solicited

Solicited

Solicited

Solicited

USD 120,40

USD 124,90

USD 318,20

USD 695,40

USD 976,10

USD 425,50

USD 572

USD 737,80

USD 596

USD 612,50

USD 143,50

1

2

3

4

5

6

7

8

9

10

11

2015

2015

2015

2014

2014

2014

2014

2014

2014

2012

2015


Estimation Value (milli on) Location / CorridorType of

ProposalPlanned

Operation


26

PPP PROJECT



POTENT I AL PROJECTS

Are PPP projects that have met th e fol lowing cri ter ia: ( i ) H ave compl ied wi th t he N ation al /R egional M edium Term D evelopm ent

Plan (R PJM N /R PJM D ) and in frastr ucture str ategic plan, (i i ) Th e proj ect location suit s the Regional Str ategic Spatial Plan (RT RW ),

(i i i ) A r elati onship i s established betw een t he infr astr uctu re sector and the region, (iv) Recovery o f pot ent ial costs, (iv) Prel im in ary

study.

Below i s the li st of pot enti al projects:

No Project Title ProjectEstim ation Value (mi llion)

Location / Corridor Planned Operation

2015

2015

2016

2015

2016

2016

2016

2015

2014

USD 800

USD 99.50

USD 500

USD 1.700

USD 844,60

USD 705

USD 260,90

USD 82,40

USD 375.66

M ajalengka, W est Java / Java

East K alimantan / Kalimantan

D I Yogyakarta / Java


Pekanbaru, Ri au / Sumatera


N orth Sulawesi / Sulawesi

Kota Semarang, Central Java / Java

W est Java / Java

1. Kertajati Int ernational Airport

2 . D evelopment o f New Samarinda Ai rpor t

3 . Ku lonprogo In ternat ional A i rport

4. D ev el o p m en t o f M al o y I n t e r nat i o n al P or t ( 8 7 4 h a)

5. Pekanbaru-Kandis-Dum ai Toll Road (135 km)

6. Balikpapan-Samarinda Tol l Road (84 km)

7 . M an ad o- Bi t u ng To ll R o ad ( 4 6 km)

8. West Semarang M unic ipal Water Supply

9 . Jat igede Water Supp ly

Cil eunyi-Sumedang-D awuan Toll Road (58,50 km )PPP M odality:> B O T> T he concession period wi ll be granted for 35 years.

Terusan Pasteur-U jun g Berun g-Cil eunyi-G edebage Toll R oad (27,50 km )PPP M odality:> B O T> Land acquisiti on cost and part of constru ction w ill be carried out by

government.

Pandaan-M alang Toll Road (37,62 km )PPP M odality:> B O T> T he concession period wi ll be granted for 35 years.

N usa Dua-Bandara N gurah Rai-B enoa Toll R oad (9,70 km)PPP M odality:> B O T

> T he concession period wi ll be granted for 35 years.

W est Java / Java

W est Java / Java

East Java / Java

Bali/Bali-N usatenggara

Solicited

Solicited

Solicited

Solicited

2015

2015

2015

2015

U SD 1.015,80

USD 800

U SD 293,20

U SD 196,10

12

13

14

15


Estimation Value (million)Location / Corridor

Type ofProposal

PlannedOperation

27National Connectivity 2011 Special Edition - SUSTAINING PARTNERSHIP



An amphi bious aircraft parked on Kahayan River,Palangkaraya, Cent ral Kalim antan. The lack ofairport facilit ies forces certain part ies to chartersmall aircrafts that could land on t he river.

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