3rd Steering Committee JABODETABEKJABODETABEK Metropolitan Priority Area (MPA)Metropolitan (MPA)

October 2012October 2012 Chronology of MPA Master Plan SubSub--technical Mtg/Sector Meetingtechnical Meeting Technical CommitteeTechnical Committee Steering CommitteeCommitteeSteering

2011 2012 MPA Committees 3…678910…1…4567…10 Steering Committee (SC)Steering (SC) …

1st SC (Approval of 17 FTPs) : held prior to the Study … 2nd SC (Approval of VISION 2030) … 3rd SC (Approval of Masterplan) Today Technical Committee (TC)Technical (TC) … 1st TC (Kick-off) … 2nd TC (Inception Report) … 3rd TC (VISION 2030/List of PPs) … 4th TC (MP 2020/Progress of FTPs) … 55thth TC (List of PPs)(List PPs) … 6th TC (Finalization) Monitoring of Progress of FTPsFTPsMonitoring … Note: FTPs: Fast Track Projects, PPs: Priority Projects - Prior to the committees, sub-technical committees/sector meetings have been held as appropriate. 22 AGENDAAGENDA

I. MPA Master Plan toward 2020: (T/C’s Recommendation(1)): to consent MPA Masterplan. II. Fast-Track Projects and Priority Projects (T/C’s Recommendation(2)):to continue to monitor the implementation; and to agree 5 flagship projects. III. The Further Way Forward (T/C’s Recommendation(3)): to set up the mechanism and framework to accelerate the implementation.

33 I. MPA Master Plan toward 2020I. 2020 (Summary)(Summary)

1. Background of the Study 2. Current situation of JABODETABEK MPA 3. Current condition of Infrastructure 4. Vision toward 2030 5. Strategies for M/P toward 2020 6. Masterplan (M/P) toward 2020 by Sectors

44 1. Background of the Study --PositionPosition of MPA Master Plan -- H o w w ill MP A M as te r Pla n b e integ ra ted into M P 3 EI? How will MPA Master Plan be integrated into MP3EI?

Financial & Planning SystemFinancial System Spatial Planning SystemSystem National LongNational Long--TermTerm National Spatial Development Plan Plan (RTRWN)Plan (RTRWN) (RPJPN 2005(RPJPN 2005--2025)2025)

Master Plan of Acceleration and Regional Spatial Expansion of Plan Economic Development JabodetabekJabodetabek-- (MP3EI)(MP3EI) punjurpunjur National MediumNational Medium--TermTerm (Presidential Development Plan Decree (RPJMN 2010(RPJMN 2010--2014)2014) No.54/2008)No.54/2008)

Spatial Plan for Master Plan for Establishing Province/DistrictProvince/District Government Work Plan and Metropolitan Priority Area Draft Budget Revenue Expenditure (RKP/RAPBN)Expenditure (RKP/RAPBN) (MPA) for Investment and IndustryIndustry

55 Source: MPA Study Team, based on MP3EI documentSource: document 1. Background of the Study ––FutureFuture GDP Growth in MP3EI -- Plans for Indonesia’s GDP Growth in MP3EI

Source: MP3EI 66 1. Background of the Study1. Study - Economic Corridors in MP3EI - Six economic corridors were formulated in MP3EI.

Source: MP3EI

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

Hubs and NodesHubs Nodes in and Sumatra Economic CorridorsEconomic Corridors

JAKARTA

Source: MP3EI 88 1. Background of the Study1. Study --CurrentCurrent Position of Indonesia --

Indonesia needs to be more attractive destination for investors than other countries to catch more FDI. a) Rank of Competitiveness-related Index b) Annual Change of FDI/GDP Ratio

Rank (out of 142 countries) 12% s y s n y s c s o c i e n e d t n n e n i i n a

e 10% i y c e d c a i i r

c f v t a i i f a t f n 2 t s e f i i e c e o r 1 t i

m i e

h t i k t l

0 e r r t p m e t a a e p 2 t p a 8% e r o - o k c n c

n i r k e u m 1 n u e S s d M r t e g a z n

o i 1 o n d l n n c a o s o m s c l 0 m i

m o e a o C a u

s i i t i p

m r e t o 2 n t g t l r

t c e

s a Lao o h o e r n o a n l u a

t e 6% s x i v n n r d t r l k i c o h i i e b h a e c n r o a t o a s i c r v u b v PDR o g d s f a a n n l o e i u a i e n d a e n n n r n G I I I M e H e H t G L F d T M B I 4% 2 1 3 9 3 4 1 2 110 3715 8 Malaysia 21 30 26 29 33 38 15 20 3 44 29 20 24 China 26 48 44 10 32 58 45 36 48 77 2 37 29 2% Thailand 39 67 42 28 83 62 42 30 50 84 22 47 54 0% Indonesia 46 71 76 23 64 69 67 94 69 94 15 45 36 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 India 56 69 89 105 101 87 70 81 21 93 3 43 38 South Africa 50 46 62 55 131 73 32 95 4 76 25 38 41 -2% Indonesia Brazil 53 77 64 115 87 57 113 83 43 54 10 31 44 -4% Vietnam 65 87 90 65 73 103 75 46 73 79 33 87 66 Russian Federation 66 128 48 44 68 52 128 65 127 68 8 114 71 Philippines 75 117 105 54 92 71 88 113 71 83 36 57 108 Source: World Economic Forum, Global Competitiveness Report 2011-2012 99 2. Current Situation of JABODETABEK MPA2. MPA 2.1 Social SituationSituation2.1 Population density is the highest in DKI , but population growth in other MPA areas is larger than that in DKI Jakarta. a) Population Density (2010) b) Population Growth Rate (2000-2010) people/ha

Source: Central Statistical Bureau Population Area Annual City / 2 (km ) 2000 2010 growth rate 5% 2000-2010 Source: Central Statistical Bureau JABODETABEK 6,400.71 21,232,069 27,951,404 2.79% MPA MPA East: Kota DKI Jakarta 664.01 8,389,443 9,588,198 1.34% Kab. Bekasi MPA South: Kota MPA East 1,480.00 3,332,296 4,966,040 4.07% Kota MPA South 2,981.77 5,403,048 7,456,375 3.27% Kab. Bogor MPA West : Kota MPA West 1,274.93 4,107,282 4,900,771 3.76% Kota Tangerang Selatan 1010 Source: Central Statistical Bureau Kab. Tangerang 2. Current Situation of JABODETABEK MPA2. MPA 2.2 Economic Situation2.2 Situation a) Share of GRDP by Area b) Sectorial Composition of GRDP in the Cities/Regencies Agriculture, Forestry, Fisheries Mining and Quarrying Manufacturing MPA West Utilities Construction Trading, hotels and restaurants Transportation and communications Finance, Ownership and Businesses Services MPA South 9% 8% JABODETABEK

Finance, Ownership,

MPA East DKI Jakarta 12%

Manufacturing DKI Jakarta MPA East 71%

Trading, hotels and restaurants

MPA South

Source: Compiled from BPS documents MPA West Majority of the economic Source:Compiled from BPS documents activities concentrate in DKI Jakarta. The production of MPA East is heavily dependent on the manufacturing sector. 1111 3. Current Condition of Infrastructure3. Infrastructure 3.1 View from Transportation3.1 Transportation b) Commuter Satisfaction a) Increment of Commuter Traffic Trip of Public Transport in Major Asian Cities

(2002) 247 (2002) 262 (2010) 344 (2010) 423 Shanghai 67.5 Kota Tangerang Kota Tangerang DKI Kota Bekasi Kota Tangarang S. DKI New Delhi 62 Kota Tangarang S. Jakarta Kab. Bekasi Kab. Tangerang Jakarta Kab. Tangerang 1.4 1.6 61 (2010/2002) (2010/2002) Beijing 60.5 Tokyo 60.5 1.4 (2002) 234 (2010/2002) (2010) 338 Singapore 54.5 BODETABEKDKI Kota Depok Seoul 36.5 Jakarta Kota Bogor 1.5 (unit) 1,000 (2002) 743 Jakarta 30.5 Kab. Bogori (2010/2002) (2010) 1,105 0 20 40 60 80 (Source:JUTPI) Journey Experience Index

(Source: Frost & Sullivan, Journey Experience Index, May 2011) Traffic congestion is very serious especially in the peak hours by commuter traffic. Commuters in Jakarta are reported to be least satisfied travelers among

major cities in Asia. 1212 3. Current Condition of Infrastructure3. Infrastructure 3.2 View from Disaster Prevention3.2 Prevention

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

Hong Kong Shanghai Tokyo Singapore Seoul Delhi Jakarta

0 2 4 6 8 10 Vulnerability Index

(Source: Munich RE (2005), Megacities – Megarisks Trends and challenges for insurance and risk Source: Balai Besar Wilayah Sungai Chiliwung- Cisadane Management ) Jakarta is seriously affected by flood Disaster prevention facilities against disaster periodically. flood, earthquake and other natural

disaster are insufficient. 1313 4. Vision toward 2030 --SWOTSWOT Analysis Results --

Needs based Development Favorable Unfavolable on SWOT Concept

STRENGTH WEAKNESS Switch to Multi- • Political and economic • Pertinent traffic jams Core urban capital • Large population and rapid structure

I Growth n • 28 million population growth t e • • r Six cities/urban centers Shortage of electricity and n water a l • Water pollution Resilient capital • Shortage of solid waste with multiple treatment gateways High • Vulnerable to natural quality disasters of Life OPPORTUNITY THREAT Promote high-tech • Large population • Low competitiveness for high value industry E • Robust economy FDI x

t • • Insufficient infrastructure Eco- e Abundant natural

r • friendlin n resources Weak technology and

a • innovation Need to adapt to l Huge market of ASEAN ess • Acceleration of market • Investment to other low-carbon integration and economic countries society partnership • Risk of global warming 1414 4. Vision toward 2030 --Concepts,Concepts, Goals, Programs --

Development ConceptDevelopment Concept GoalsGoals ProgramsPrograms

A1. Development of MRTA1. MRT--basedbased New Urban Transport SystemTransport System A2. Development of Road Network in and around High Quality of LifeHigh Life JakartaJakarta •• EfficientEfficient ••CleanClean A. Better Urban •• SynergeticSynergetic A3. Promotion of Urban ReA3. Re--DevelopmentDevelopment ••SafeSafe EnvironmentEnvironment •• ResilientResilient ••SmartSmart A4. Improvement of Water Supply and Sewerage SystemSystem

A5. Solid Waste TreatmentA5. Treatment

A6. Flood ManagementA6. Management GrowthGrowth B1. Development of New Growth Sub-Corridor for ••Inclusive Jabodetabek MPAJabodetabek MPA ••BalancedBalanced B2. Development of New Academic Research ••High valueHigh value--addedadded B. New Growth SubB. Sub-- ClusterCluster Corridor for JabodetabekJabodetabek MPAMPA B3. Development of Road/Railway along New Growth SubGrowth Sub--CorridorCorridor for JabodetabekJabodetabek MPAMPA •• EfficientEfficient •• SynergeticSynergetic C1. Development of Cilamaya PortC1. Port •• ResilientResilient EcoEco--FriendlinessFriendliness C2. Improvement of Tanjung Priok PortC2. Port ••Low CarbonCarbonLow C. Multiple GatewayC. Gateway ••Energy SavingEnergy Saving C3.Development of New International AirportC3.Development Airport C4.Improvement of SoekarnoSoekarno--HattaHattaInternational •• EfficientEfficient AirportAirport •• SynergeticSynergetic D. LowD. Low--CarbonCarbon D1.LowD1.Low--Carbon Power Supply DevelopmentCarbon Development •• ResilientResilient Energy DevelopmentDevelopment D2.Development of Smart GridD2.Development Grid 1515 Source: MPA Development VISION approved by Steering Committee on 22 September 2011 4. Vision toward 2030 --RegionalRegional Characteristics and Constraints --

- National Capital - Government - Center of Commerce and Business - International Gateway - New Towns Paddy field - Gateway to / Paddy field - Industrial Estate Sumatra DKI Jakarta Tangerang - Gateway to Bekasi Central & Tangerang - New Towns Selatan

- Universities Depok

Environment Bogor conservation - Hill Area Environment areaarea - Botanical Garden conservation - Water Source of areaarea Jakarta - Agriculture Univ. Source: MPA Study Team based on Regional Spatial Plan Jabodetabek-punjur (Presidential Decree No.54/2008) 1616 4. Vision toward 2030 --FutureFuture Spatial Structure --

Transformation from Single-Core Structure to Multi-Core Structure Single-Core Structure Multi-Core Structure

Over congestion Adopted Central Central City Sub- City Sub- Center Center

Sub- Center Sub- Center

Source: MPA Study Team Source: MPA Study Team Heavy concentration in the central city Less traffic concentration Need extensive mass transit systems to support (e.g. Tokyo) Easier to protect nature

Difficult to protect nature More resistant to disasters

Vulnerable to disasters 1717 4. Vision toward 2030 --MPAMPA Development Vision 2030 -- JABODETABEK MPA Development Vision 2030JABODETABEK 2030

WEST Existing Gateway Soekarno NORTH Hatta Airport Tanjung Priok Port Existing TangerangTangerang Gateway TangerangTangerang SelatanSelatan Jakarta Proposed Gateway

Cilamaya New Port DepokDepok BekasiBekasi BogorBogor

SOUTH Proposed Gateway KarawangKarawang EAST Source: MPA Development Vision 2030 approved by Steering Committee on 22 September 2011 1818 5 . S t r a t e g i e s f o r M / P t o w a r d 2 0 2 0 5. Strategies for M/P toward 2020 5.1 Comparison with Other Metropolitan Cities5.1 Cities

80 a) Modal Shares Population Size 70 5 million Tokyo (pop. 8.84 million) 60

) 50 BETTER %

Modal share ratio of (

n i 40 a r T Mumbai Jakarta is quite lower f o

30 (pop. 18.84 million)

e Singapore (pop. 4.74 million)

r Seoul (pop. 9.78 million) a

level than other h 20 S

l a d countries. o 10 WORSE M Bangkok (pop. 6.90 million) 0 Shanghai (pop. 16.34 million) -10 Ho Chi Minh Jakarta Metro Manila (pop. 5.98 million) (pop. 9.6 million) (pop. 11.50 million) -20 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000

Population Density (persons/km2) Source: World Economic Forum, Global Competitiveness Report 2011-2012

2000 2005 2009

1.52 30,000

t 4.45 1.16 u ) p s

h 25,000 g b) Container Throughput U u E o

T 20,000 r d h 1.59 T n

r a 15,000

e s 5.09 n u i o

a 10,000 1.31 2.55 1.53 t 2.16 3.41 h 1.23 n T

( 1.14 o 5,000 Indonesia is lagging C i k k e a g n g n u n o a l i r r o i j o y o a n n i h o h k r k s n n a h o g

compared with neighbor p e g o a c a P u b K

n i a T

n N a n B T M g a g I g l a h n h n n a i B l C u S o r

j S a H n m h

countries. a e a T a w L a J Tokyo Seoul Beijing ShanghaiHong Kong Bangkok Singapore Manila New Delhi Jakarta 1919 Source: Containerisation International Yearbook (Informa) 5 . Strateg ies for M /P tow ard 202 0 5. Strategies for M/P toward 2020 5.1 Comparison with Other Metropolitan Cities5.1 Cities c) Water Supply/Sewerage Facilities d) Waste Collection Ratio

Piped Water 100 Jakarta Coverage 95 Manila Access to Sewerage Deli Delhi 90

) Shanghai

Ho Chi Minh % DKI Jakarta ( 85

n o Bangkok i Manila t 80 a R Shanghai n o

i 75 t

Seoul c

e Population l l

Tokyo o 70 C

e Hong Kong t 10 million s 65 a

Singapore W 60 5 million 0 20 60 80 10040 (%) 55 Source: Water Knowledge Center, ADB 50 0 1000 2000 3000 4000 5000 GDP(US$/Person) Source: MPA Study Team based on Asian Green City Index (Economist Intelligence Unit) Ratios of piped water coverage and access to sewerage are among the Waste collection ratio of DKI Jakarta is lowest in the major Asian cities. relatively high. But the ratio of outside Jakarta varies from 23% to 72%. 2020 5. S tra te g ie s fo r M /P to w a rd 2 0 2 0 5. Strategies for M/P toward 2020 5.2 Infrastructure Needs of Industries (Investors)5.2 (Investors)

Needs of 4 Major Industries to Infrastructure Development Infrastructure Automobile Electric and Chemical Machinery Sectors Electronics Highway Road *** *** ***** ***** Local Road ***** *** *** ***** Seaport *** *** ***** * Airport * ***** ** Power Supply *** ***** * ***** Water Supply / Sewerage *** *** *** ***

Note: *****: Very important, ***: Important, *: Less important Source: Compiled based on Private Sector Perceptions of Challenges and Opportunities by Japanese Infrastructure Users by JBIC and NRI 2121 5.3 Infrastructure Development in MPA VISION5.3 VISION Development Strategies for M/P toward 2020 GOALS MEASURES 9 Infrastructure Sectors PROGRAMS in VISION 2030 to achieve GOALS corresponding to MEASURES to achieve GOALS Mitigation of traffic congestion 1. Public Transportation A1. Development of MRT-based New Urban Transport System Urban greening 2. Road A2. Development of Road Network in A. Better Urban and around Jakarta Stable water supply 5. Urban Development Environment A3. Promotion of Urban Re- /Industrial Estate development Prevention of environmental A4. Improvement of Water Supply and pollutions 6. Water Supply and Sewerage Sewerage Systems A5. Solid Waste Treatment 7. Solid Waste Treatment Mitigation of flood disaster A6. Flood Management

8. Flood Control B1. Development of New Growth Sub- Transformation to multi-core Corridor for Jabodetabek MPA urban structure B. New Growth 5. Urban Development B2. Development of New Academic /Industrial Estate Research Cluster Sub-Corridor Promotion of high-tech and value- for JABODETABEK B3. Development of Road/Railway added industries along New Growth Sub-Corridor MPA 1. Public Transportation for Jabodetabek MPA Formulation of structure for the C1. Development of Cilamaya Port sub-corridor C2. Improvement of Tanjung Priok 2. Road Port C. Multiple Gateways Improvement of existing logistic C3. Development of New International hubs 3. Seaport Airport C4. Improvement of Soekarno-Hatta International Airport Development of new logistic hubs 4. Airport D. Low-carbon D1. Low-carbon Power Supply Development Energy Energy saving 9. Power Supply Development D2. Development of Smart Grid 2222 6 . M a s te r P la n ( M /P ) to w a r d 2 0 2 0 b y S e c t o rs 6. Master Plan (M/P) toward 2020 by Sectors

SECTORS TARGET EFFECT INDICATOR BY M/P MAJOR PROJECTS LISTED IN M/P (from 2010 to 2020)

Development of MRT-based new urban transport Public Increase passenger movement by Railway/Bus systems, development of railway along the new Transportation 27 % to 45 % growth sub-corridor, and railway access to Soekarno- Hatta International Airport

Development of road network in and around Jakarta, Average vehicle speed in the morning peak traffic flow improvement and transportation Road 7 km/hour to 15 km/hour demand management, development of access road to seaport and airport, etc.

Accelerate multi-core urban development Urban 4 million people will live in new urban at suburban 4 million people in new urban at Suburban Development areas, mainly through new township development. Areas

For more detail of the projects, see attached “List of Fast Track Projects (FTPs) and Priority Projects” 2323 6 . M a s te r P la n ( M /P ) to w a r d 2 0 2 0 b y S e c t o rs 6. Master Plan (M/P) toward 2020 by Sectors

SECTORS TARGET EFFECT INDICATOR BY M/P MAJOR PROJECTS LISTED IN M/P (from 2010 to 2020)

New industrial estate attracting high-value-added industries are to be developed, by taking the Industrial Expedite the industrial estates development advantages of the agglomeration of the existing Estate 6,800 ha at Suburban Areas industrial estates and future gateway developments such as new airport and new seaport.

Improve piped water service coverage Development of water supply systems, such as Water Supply (DKI Jakarta) Jatilufur Project (Phase I and Phase II) and their 54 % to 77% distribution system.

Improve sewerage coverage ratio Sewerage Development of sewerage system in DKI Jakarta. 2% to 20%

Treated/disposed volume Developments of new landfill site and intermediate Solid Waste 4,500 ton/day to 9,000 ton/day treatment facilities.

Capacity of discharging flood water to the sea Development of urban drainage systems, and Flood Control Pumping capacity (60 m3/s to 126 m3/s) reconstruction of East Pump Station at Pluit, etc

For more detail of the projects, see attached 2424 “List of Fast Track Projects (FTPs) and Priority Projects” 6 . M a s te r P la n ( M /P ) to w a r d 2 0 2 0 b y S e c t o rs 6. Master Plan (M/P) toward 2020 by Sectors

SECTORS TARGET EFFECT INDICATOR BY M/P MAJOR PROJECTS LISTED IN M/P (from 2010 to 2020)

International/Domestic container cargo Improvement and expansion of the existing facilities Seaport capacity at Tanjung Priok and development of a new 7.2 million TEUs to 11.6 million TEUs international port at Cilamaya.

Expansion of the facilities at Soekarno-Hatta Annual passengers capacity Airport International Airport and development of new 22 million to 90 million airport.

Secure Reserve Margin for Peak Demand Development of coal-fired plants and improvement Power Supply More than 30% of voltage qualities, etc.

For more detail of the projects, see attached “List of Fast Track Projects (FTPs) and Priority Projects” 2525 T/C’s Recommendation(1)T/C’s Recommendation(1)

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

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

2626 II. FastII. Fast--Track Projects and Priority ProjectsTrack Projects 1. Overview1. Overview Fast Track Projects : to be commenced by 2013 Priority Projects: to be completed by 2020 Fast-Track Projects (billion IDR) Total 214,100 (100%) Private 120,200(56%) Public 93,900(44%) Government of 15,100(7%) Total (billion IDR) Indonesia Total 411,300 (100%) Japan’s ODA and 78,800(37%) Other Foreign Assistance Private 227,100 (55%) Priority Projects (billion IDR) Public 184,200 (45%) Total 197,200 (100%) Government of 58,500 (14%) Private 106,900 (54%) Indonesia Japan’s ODA and 125,700 (31%) Public 90,300 (46%) Other Foreign Assistance Government of 43,400 (22%) Indonesia Note : This figure is provisional estimation. Japan’s ODA and 46,900 (24%) Other Foreign Assistance 2727 2. Fast Track Projects2. Projects 1. Identified Projects: 18 projects in 9 sectors Sector Projects International port North Kalibaru; Cilamaya Industrial area Smart community Mass transportation network Jakarta MRT; JABODETABEK Railway Road network Road network capacity enhancement; Improvement of road network within Industrial Area to the East of Jakarta Airport and its related Access railway to Soekarno-Hatta Airport(SHA); infrastructure Expansion of SHA Water supply and sewage DKI-Bekasi-Karawang Water Supply (Jatiluhur) system Waste management regional solid waste Treatment Flood management system Reconstruction of East Pump Station at Pluit Electric power infrastructure Java-Sumatra transmission line; Indramayu coal-fired power plant; Banten coal-fired power plant; Gas-fired power plant and FSRU; Rajamandala Hydroelectric power plant; coal-fired plant For more detail of the projects, see attached “List of Fast Track Projects (FTPs) and Priority Projects. 2828 2. Fast Track Projects2. Projects

2. Major Progress as of Today

. Commitment 4 FTPs out of 18 FTPs are already committed by GOJ Japan ODA Loans: MRT N-S (Phase1 &Phase 2 E/S), Indramayu Coal-fired Power Plant (E/S), and Jawa-Sumatra Interconnection Transmission Line Japan Grant Aid: East Pump Station at Pluit

.Preparation 16 FTPs’ Feasibility Study are completed and 2 FTPs’ on-going 3 FTPs’ tendering process completed and 4 FTPs’ on-going ex. (Completed) Reconstruction of East Pump Station at Pluit etc. (on-going) MRT N-S (Phase 1: Civil Works, Rolling Stocks, and E&M Systems), Java-Sumatra transmission line etc. 5 FTPs’ Concessionaires are already selected ex. Access Railway to Soekarno-Hatta Airport, Central Java Coal-fired Power Plant etc.

2929 Flagship Progress of Jakarta Mass Rapid Transport (MRT)Progress (MRT) project Progress of North-South Line MP3EI Project ► Phase I (Lebak Bulus-Bundaran HI) •Bidding process on-going for Civil Works, Rolling Stocks and E&M System Packages •Contract signing for Underground Section is expected within this year

► Phase II (Bundaran HI-Kampung Bandan) • GOI submitted Finance Request for Engineering Services and approved by GOJ Progress of East-West Line Kampung Bandan St. • Scope of Engineering Services, including Implementation Structure are N-S Phase II (Total 8.1ｋｍ） under discussion Further acceleration • N-S: Bundaran HI St.  Listing on Blue Book (Phase I and II)  Finance Request for Phase I and II N-S Phase-1 Construction （Total 15.7ｋｍ） Lebak Bulus St. • E-W: Listing on Blue Book and Finance Request for Engineering Services 3030 Progress of Cilamaya SeaportSeaportProgress Flagship project Progress of Cilamaya Seaport MP3EI Project ► JICA Masterplan completed in April, 2012 ► JICA Feasibility Study started in January, 2012 and on-going Necessity of Cilamaya Seaport ► To correspond to increasing demand for containers (19,360,000 TEUs in 2030=3.6 times as large as the actual amount of 2011) ► To mitigate the further traffic congestion in Jakarta caused by heavy land traffic flowing from eastern JABODETABEK industrial area to Tanjung Priok Port via Jakarta- Toll Road ► To contribute to enhance the Connectivity Tanjung Priok Port Cilamaya New Port as a new gateway and establish the Industry Cluster Early commencement of operation in Cilamaya is vital for increasing cargo handling capacity and debottleneck land traffic congestion Further acceleration Industrial estates in eastern JABODETABEK ► Listing on Blue Book and Finance Request (Engineering Services) ► Assigning the responsible authority for Cilamaya access road 3131 3 . P rio r ity P ro je c ts 3. Priority Projects 1. Identified Projects: 45 projects in 15 programs (excluding FTPs) Programs Major Projects MRT-based new urban transport ・Station Plaza Development and Park & Ride System system Enhancement (Dukuh Atas) (*1) Development of Road Network in ・ Development of Jakarta Outer Outer Ring Road and around Jakarta ・ Introduction of ITS in JABODETABEK Promotion of Urban Re- ・ Pilot Project of Urban Development/Re-Development development (including Maja (*2) Improvement of Water Supply and ・ Rehabilitation of Water Distribution Facilities in DKI Jakarta, Sewerage Systems Bekasi, and Karawang, with the integration of DKI Jakarta- Bekasi-Karawan Water Supply (Jatilfur) ・ Development of Sewerage System in DKI Jakarta (*1) Solid Waste Treatment ・ Development of New Landfill Site at Tangerang (*2)

Flood Management ・ Development of Urban Drainage System in DKI Jakarta Development of New Growth Sub- ・ Development of New Township(Karawang) (*2) Corridor for JABODETABEK MPA ・ Development of New Industrial Estate in the Vicinity of the New Airport

(*1) JICA PPP F/S (*2) METI F/S For more detail, see attached “List of Fast Track Projects (FTPs) and Priority Projects. (*3) JICA M/P 3232 3 . P rio r ity P ro je c ts 3. Priority Projects

Programs Major Projects Development of New Academic ・ Development of New Academic Research Center (Serpong, Research Cluster Bekasi, Bogor) (*2) Development of Road/Railway along ・ Construction of Second Jakarta-Cikampek Toll Road(*2) New Growth Sub-Corridor for ・ Construction of Freight Railway to New Cilamaya Seaport JABODETABEK MPA ・ Construction of Access Road to the New International Airport ・ Construction of Jakarta- High Speed Railway via the New International Airport (*2) Development of Cilamaya Port ・ Development of Logistics Park (Supporting Facilities for the New Port) Development of New International ・Development of New International Airport (Karawang) (*3) Airport Improvement of Soekarno-Hatta ・Expansion of SHIA (Development of Third Runway)(*3) International Airport (SHIA) Low Carbon Power Supply ・ Other Renewable and Low-Carbon Emission Power Development Projects connecting to Java--Sumatra Power Network Development of Smart Grid ・Improvement of JABODETABEK Power Supply Quality

(*1) JICA PPP F/S For more detail, see attached “List of Fast Track Projects (FTPs) and Priority Projects. (*2) METI F/S 3333 (*3) JICA M/P 3 . P rio r ity P ro je c ts 3. Priority Projects

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

Planning Stage Construction Stage Operation Stage ·Consistency with spacial plans ·Issuance of Government ·Operation model ·Allocation of risks and guarantee (tariff setting, demand responsibilities between public ·Land acquisition, resettlement & projection, etc.) & private sectors forest area clearance ·Decision making by Government ·Permits on location/construction on selection procedure of ·Supplementary measures to concessionaire reduce viability gap (solicited/ unsolicited) ·Change in conditions of concession contract · Start of selection process ·Change in financial laws & regulations without enough readiness (subsidy, tariff, remittance, etc.) · Coordination among concerned ·Environmental & social monitoring ministries/SOEs

3434 SHIA and New Academic Research ClusterSHIA Cluster Flagship project Expansion of SoekarnoSoekarno--HattaHatta New Academic Research ClusterClusterNew International Airport (SHIA)International (SHIA) With the aim of creating value-added industry, Project Outline the cluster will intensify the link between To construct third runway and improve other existing industrial resources and scientific facilities of SHIA in order to cope with rapid research achievements with business increase of air traffic in accordance with activities. The candidate sites are Serpong, master plan of Ministry of Transportation Bekasi and Bogor.

Challenges & Actions to be Taken • Finalization of Pre-Feasibility Study supported by METI by the end of November, 2012 • Based upon METI Pre-F/S, the further study will be considered Challenges & Actions to be Taken • Formulation of Attractive Business Plan for the Private Sectors (by BPPT) Project preparation including land acquisition and • Listing on PPP Book resettlement • Government Supports, such as Tax Holidays and/or Tax Reductions, Protection of Intellectual Properties, Priority Access to Biological 3535 Resources, etc. Jakarta Sewerage DevelopmentJakarta Development Flagship project

Sewerage Zones and Prioritized Project Project Outline  Develop sewerage system in DKI based on F/S on-going the Revised Master Plan on Sewerage Development (dividing DKI into15 zones and building sewerage in stages)  Build wastewater treatment plants and sewerage networks for better urban environment in DKI Jakarta  Two feasibility studies are on-going F/S on-going targeting Zone 1 and Zone 6

Challenges & Actions to be Taken  Selection of the optimal sewerage system to Jakarta  DKI’s policies on tariff level and tariff

collection system Central Jakarta  Consideration of PPP  Improvement of institutional framework and capacity development for wastewater management Source: Revised Master Plan

3636 T/C’s Recommendation(2)T/C’s Recommendation(2)

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

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

3737 II. The Further Way ForwardII. Forward T/C’s Recommendation(3)T/C’s Recommendation(3)

Technical Committee confirms the necessity for further joint effort to accelerate the MPA projects, thus recommending Steering Committee that :  MPA Steering Committee and Technical Committee should continue to be held regularly. “MPA Implementation Team” can be newly assigned to work for the project acceleration.  Further study should be explored to serve for project formation including the integrated study of smooth logistics to assist the development of the surrounding infrastructure related to Cilamaya.  MPA Masterplan and the future progress should be reported to the chairman of KP3EI, President of Republic of Indonesia.

3838 Recommendation to Steering Committee

I. T/C’s Recommendation(1): Steering Committee to consent “the Master Plan for Establishing Metropolitan Priority Area for Investment and Industry in JABODETABEK.” II. T/C’s Recommendation(2): Steering Committee to continue to monitor the implementation of the MPA projects; and to agree to accelerate Jakarta MRT, Cilamaya seaport, Soekarno-Hatta International Airport, Academic Research Cluster and Jakarta sewerage development as flagship projects of MPA.

3939 Recommendation to Steering Committee

III. T/C’s Recommendation(3):  MPA Steering Committee and Technical Committee should continue to be held regularly. “MPA Implementation Team” can be newly assigned to work for the project acceleration.  Further study should be explored to serve for project formation including the integrated study to assist the smooth logistics through development of the surrounding infrastructure related to Cilamaya.  MPA Masterplan and the future progress should be reported to the chairman of KP3EI, President of Republic of Indonesia.

4040 Terima kasihTerima kasih