PLANNING BUREAU MINISTRY OF TRANSPORTATION REPUBLIC OF

OPPORTUNITIES TO IMPLEMENT PPP IN THE TRANSPORT SECTOR

Presented at 1st Meeting of COMCEC Transport Working Group

Ankara, March 28th 2013 FRAMEWORK OF TRANSPORTATION DEVELOPMENT PLAN

LONG PERIOD OF THE NATIONAL SPATIAL PLAN ROAD TRANSPORTATION

DEVELOPMENT PLAN REGULATION REGULATION REGULATION NATIONAL TRANSPORTATION SYSTEM

MEDIUM PERIOD NATIONAL SPATIAL PLAN BY PRESIDENT BY OF THE NATIONAL TRAFFIC NETWORK AND BLUEPRINT OF THE DEVELOPMENT

VISION AND MISSION MISSION ANDVISION TRANSPORTATION MASTERPLAN PLAN NATIONAL SYSTEM TRANSPORTATIONCETAK BIRU GENERAL PLAN OF NATIONAL RAILWAY MASTERPLAN SISTRANAS NATIONAL ROAD NETWORK / TOLL TATRANAS GOVERNMENT ARRANGEMENT OF THE NATIONAL WORK PLAN SEAPORT TATRAWIL TATRALOK ARRANGEMENT OF THE NATIONAL AIRPORT

STRATEGIC PLAN (RENSTRA) MINISTRY OF TRANSPORTATION

ROLLING INFRASTRUCTURE INVESTMENT PLAN MoT WORK PLAN PLAN BY PRIVATE / STATE-OWNED ENTERPRISES/LOCAL-OWNED ENTERPRISES MoT BUDGET WORK PLAN

MoT BUDGET EXECUTION LIST 1 TRANSPORTATION INFRASTRUCTURE DEVELOPMENT PHASES

LONG PERIOD OF THE NATIONAL DEVELPOMENT PLAN LONG PERIOD OF THE MoT DEVELOPMENT PLAN 2005-2025 2005-2025 REALIZATION OF THE RELIABLE TRANSPORTATION VISION INDEPENDENT, FAIR AND PROSPEROUS INDONESIA VISION SERVICE, AND PROVIDE COMPETITIVE VALUE ADDED

Achieve a developed nation, independent, and fair as the The realization of the implementation of effective and efficient GOAL foundation for the next stage of development towards a just and GOAL prosperous society transportation

MEDIUM PERIOD OF THE NATIONAL DEVELOPMENT PLAN 2010-2014 (SECOND PHASE) STRATEGIC PLAN OF MoT 2010-2014 (SECOND PHASE)

VISION PROSPEROUS, DEMOCRATIC AND JUSTICE INDONESIA VISION REALIZATION OF THE RELIABLE TRANSPORTATION SERVICE, COMPETITIVE AND PROVIDE VALUE ADDED

VISSION 1. Economic development and improving people's welfare VISSION 2. Improved the good governance To realize the implementation of effective and efficient transport GOAL 3. Enforcement of the pillars of democracy GOAL and supported the quality of transportation professionals to 4. Law enforcement and eradication of corruption support the realization of a more prosperous Indonesia 5. Inclusive and equitable development

FOUR TRACK STRATEGY FOUR TRACK STRATEGY PRO-GROWTH - PRO-JOBS - PRO-POOR – PRO-GREEN PRO-GROWTH - PRO-JOBS - PRO-POOR - PRO-GREEN

WORK PLAN OF MoT GOVERNMENT WORK PLAN

WORK PLAN BUDGET

FORM OF WORK PLAN BUDGET 2 Partial and sectoral Development of transportation Lack of transportation Very high and inefficient The limited funding of the Accessibility and inadequate transportation planning constrained by geography and Facilities logistics costs transport sector service and policy condition of the region

Transport Infrastructure Development Programme : Transport Development Challenges :

• Development of safety and security of transportation facilities to support the • Keeping the level of transportation services to improve Roadmap to Zero Accident competitiveness • Institutional structuring and improving the quality of human resources • Transportation services in accordance with international standards • Follow-up activities / completion of construction the infrastructure and (IMO, ICAO, IALA) transportation facilities • Increased levels of safety and transportation services • Pioneer services in the form of operating subsidies and the provision of • Anticipating climate change through reducing carbon emissions infrastructure and transportation facilities • Compatibility global and regional economic cooperation (APEC, AFTA, • Development of transport infrastructure in undevelop areas, border areas BIM-EAGA, ASIA & ASEAN Highway, Asian Railway) and outer islands and post-conflict and disaster areas • Lack of interest in the private sector of transport infrastructure development

Availability of Smooth transport distribution of infrastructure goods & services

3 Expanding rangetheof transport services • • • • • Subsidies for transportparticular pioneer Improving the competitivenessof national products Improved performance of transport infrastructure Expanding the range of transport services Development of basic transport infrastructure “ rural,regions underdeveloped Infrastructurein development Accelerating thedevelopment transportationof orderthein to support Improving transportation and borderareas facilities and infrastructure services in accordance with the minimum service standard improvementwelfarepublic of National Logistics System Setupthe

Support the • Improvement of the Real • Provision the rural infrastructure, underdeveloped Sector Competitiveness transportation Provision thecheap, reliableand sustainable mass regions and border areas PPP PPP Transport Sector Improvement ” Provide operatingsubsidies for for transport pioneer

Increase the PPP in the Transport Sector Provision of Provision of cheapthe and reliable transportationreliable 4 THE CONCEPTION OF INTEGRATED NATIONAL ROADS WITH FERRY, MARINE AND AIR TRANSPORT

Legend: Airport

International Port

Ferry Port

Arterial Road

• Embodiment National Transportation System (SISTRANAS) then manifested by combining the national road network (arterial, collector, toll roads) and transport hubs such as airports, seaports, airports and crossings. • The road network formed as back bone of transportation and domestic connectivity islands in Indonesia. Futhermore, inter-island connection will be done by empowering the freight ferry, sea and air. • In connected the nodes, found the fact that some collector airport (hub), particulary in eastern Indonesia and East , can not be served by national arterial road. While most of international seaport and belt crossing the middle and south in general has been connected by national arterial network. 5 GOALS AND STRATEGIES POLICY FOR LOGISTICS INFRASTRUCTURE

GOALS : The availability of adequate logistics infrastructure and operate effectively and efficiently STRATEGIES a) Port 1) Setting up the port as an international hub in West and East Indonesia region to break away from dependence on international hubs in other countries. 2) Improved operational efficiency by implementing an integrated management port (Logistic Port Management), optimizing the capacity of ports and development of interconnection with the hinterland and the international hub. b) Marine Transport 1) Enforce cabotage for domestic sea freight in full on roadmap schedule . 2) Improving the efficiency and effectiveness of sea transport services performed in an integrated manner and through a route network restructuring. c) River & Ferry Transport 1) Developing Ferry transport industry to improve the smoothness and track shipping capacity in the South Belt, Central & North thus forming an efficient multimodal transportation network. 2) Revitalization of the river that has the potential to be utilized as a part of the transportation system.

Source : Blueprint of the National Logistics System, December 2009 6 GOALS AND STRATEGIES POLICY FOR LOGISTICS INFRASTRUCTURE

STRATEGIES (Continued) d). Road Transportation 1) Reducing the burden of road by developing a network of multimodal transportation and logistics center in an effort to increase the smooth transportation of goods from production center inlet that leads to oulet export-import and inter-island. 2) Increasing the availability and technical feasibility of road transport facilities to ensure the adequacy, reliability and safety of road facilities are efficient in order to support the smooth running of national logistics system.

e). Railway Transport Developing the rail network to transport goods long-distance in , and Kalimantan.

g). Airports And Air Transport Optimizing the role of the existing airport to function as a cargo port.

Source : Blueprint of the National Logistics System, December 2009 7 MASTER PLAN FOR ACCELERATING AND EXPANSION IN INDONESIA ECONOMIC DEVELOPMENT (MP3EI)

 Reference for the Minister and The Head of institutions government non ministry (LPND) to establish sector policies in order to accelerate the implementation and expansion of Indonesia's economic development in their respective areas of assignment, as outlined in the strategic plan document of each Ministry / institutions government non ministry (LPND)  Reference for making policy in order to accelerate and expand of Indonesia's economic development at provincial and district / municipality concerned.  3 (three) main strategies in MP3EI :  Developing Indonesia economic corridors;  Strengthening national connectivity;  Accelerating the advance of national science and technology.  The estimated total cost to support this program amounted to 4.000 trillion rupiah during the 2011-2025 TRANSPORTATION GOALS TO SUPPORT DEVELOPMENT OF 6 PRIORITY ECONOMIC CORRIDORS

3 4 6 1 Manokwari

2 5 3 4 1 5 2 6 Integration Between National Logistic System, National Transportation System (Multimoda Transportation, Masterplan of Seaport, Airport, Road and Railway) and Economic Corridor 9 DEVELOPMENT STRATEGY OF NATIONAL ECONOMIC CORRIDOR (MP3EI)

Sumatera Corridor : Kalimantan Corridor : Center for Production and Corridor : Center For Production and Center for Production and Processing of Processing the agricultural Processing of National Energy & Mining Agricultural Products, Plantation, and the produce & national energy National Fisheries

Java Corridor : Thrusters National Industry and Service - Corridor : – Nustra Corridor: Processing of Abundant Natural National Tourism Gate and Resources and Prosperous Human National Food Support Resources WORKDEVELOPMENT PLAN THE STRATEGYMINISTRY OFOF TRANSPORTATION NATIONAL ECONOMICIN SUPPORTING CORRIDOR (MP3EI) MP3EI

Sumatera Corridor : Kalimantan Corridor : Center for Production and Sulawesi Corridor : Center For Production and Center for Production and Processing of Processing the agricultural Processing of National Energy & Mining Agricultural Products, Plantation, and the produce & national energy National Fisheries

• Development of land, railways, sea and air transport sector in each corridor could be funded by government investment (budget), Public Private Partnership (PPP), or purely private investment / SOE; • To attract private investment, simplification in permitting process needs to be done.

Java Corridor : Thrusters National Industry and Service Papua Corridor : Bali – Nustra Corridor: Processing of Abundant Natural National Tourism Gate and Resources and Prosperous Human National Food Support Resources THE NEEDS INVESTMENT IN TRANSPORT SECTOR

Transport Sector Investment Allocations In 2010 – 2014 (Rp. Trillion) Transport Sector Investment Allocations In 2010 – 2014 (Rp. Trillion)

From the results of study in the Ministry of Transportation is in the next five years is expected that a number of needs in the transport sector reaches Rp.1.626 trillion. However, the availability of government budget is very limited and can only meet less than 10% of the total investment requirement, although the government budget to the Ministry of Transportation grew by an average of 27% per year. INVESTMENT PROJECTS

(PERIODNo Corridor 2011 -2025)Project MP3EI Source Total Investment (USD Million)

1. SUMATERA Land & Railways Transportation Government 4,070 Private /State Owned Enterprise 621 Public Private Partnership (PPP) 3.800 Sea Transportation Government 951

Private /State Owned Enterprise 716 Air Transportation Private /State Owned Enterprise 188 Public Private Partnership (PPP) 0. 23

2 JAVA Land & Railways Transportation Government 6,113

Private /State Owned Enterprise 3,656

Public Private Partnership (PPP) 20,833

Sea Transportation Government 331 Private /State Owned Enterprise 3,065 Air Transportation Government 976 Private /State Owned Enterprise 490

Public Private Partnership (PPP) 435 INVESTMENT PROJECTS

(PERIODNo Corridor 2011 -2025)Project MP3EI Source Total Investment (USD Million) 3. KALIMANTAN Land & Railways Public Private Partnerships (PPP) 4.144 Transportation Sea Transportation Government 1.041

Private /State Owned Enterprise 59

Air Transportation Government 141

Private /State Owned Enterprise) 188

4 SULAWESI Land & Railways Government 27 Transportation Sea Transportation Government 242

Public Private Partnerships (PPP 309 INVESTMENT PROJECTS

(PERIODNo Corridor 2011 -2025)Project MP3EI Source Total Investment (USD Million) 5. BALI- NUSA Land & Railways Transportation Government TENGGARA 1.419 Sea Transportation Private/ State Owned Enterprise 42 Air Transportation Private/ State Owned Enterprise 338

6 MALUKU -PAPUA Land & Railways Transportation Government 66

Sea Transportation Government 679 Public Private Partnership 6.153 Air Transportation Public Private Partnership 17 Structuring Urban Transport System and Accelerating Economic Development

MEBIDANGRO (Medan-Binjai-Deli Serdang-Karo)

JABODETABEK (-Bogor-Depok- Tangerang-Bekasi) MAMINASATA (Makassar-Maros- BANDUNG RAYA Gowa-Takalar (Bandung-Cimahi- Sumedang) SARBAGITA GERBANG KERTASUSILA (Denpasar-Badung- (Gresik-Bangkalan-Mojokerto- Sumber: Kemenko Perekonomian, 2011 Gianyar-Tabanan Surabaya-Sidoarjo-Lamongan

In line with the development of 6 economic corridor based on commodity and regional development , urban transport development is also a major priority in the Accelerate program Master plan for accelerating and expansion Indonesia Economic Development Indonesia(MP3EI). In this case, the 6 Metropolitan area will serve as the main hub of each corridor. This is also reflected by the inclusion of development programs in an integrated transport system to the six metropolitan areas into program of Metropolitan Priority Area (MPA) which is part of the implementation of development Economic Corridor URBAN TRANSPORT POLICY

To Increase To Reduce Transport To reduce role and To Increase Traffic Management to pollution and accessibility safety and congestion on control The noise from Public security the road demand transportation Transport Mode

improvement Development Increasing road intermodality BRT (Bus Rapid Disincentive for Improvement in capacity through tr based on Transit Transit/busway) In using private cars an sign and marking affic management & e Oriented Big cities / d vehicles polluting road ngineering Development Metropolitan (TOD)

Development The spatial of Sterilization mode network and Promotion of the efficient of service in Urban Traffic restriction use of alternative movement (mixed transportation n railways include land use) energy odes airport railways

Selection Determination Development in of technologies Intelligent The spread safety-awareness of Minimum Service environmentally Transport System of peak hour trips campaign Standards friendly modes of (ITS) transport

17 TRANSPORT INVESTMENT PROCEDURE

Mo Legal & Mo Local Mo IICB Human Rights, Transportation Government Environtment MoTrade

Investment Investment Company Bussiness Bussiness Preparation Agreement Formation License License

Location Location Spatial Permit Planning

Environment Environment Impact Building Assesement Permit Construction Construction Permit

Operation Operating License

Safety, operation Operation management Schedule 18 STRATEGIES & EFFORTS TO IMPROVE PPP PROJECTS

RPJMN 2010-2014 Policy Separation of Regulator and Operator Function Reforms New Regulation of Transport Sector New Regulation of Government

Improvement of State Budget Allocation Effective Use of Long Term Contract Project Budget E - Procurement Medium Term Expanditure Framework

Infrastructure Budget Risk Management Unit GOVERNMENT SUPPORT Quarantee Fund TO Land Acquisition PPP PROJECT Provide Independent Land Rater Project Development Fasilities PPP Guide for Investor PRIORITIES OF PPP PROJECT IN TRANSPORT SECTOR

 The construction of Airport Railways from Manggarai – SHIA, that has 2 (two) lines : Express Line/Dedicated Line (via Pluit) and Commuter Line (via Tangerang), with investment budget forecast approximately US$ 1.1 Billion;  The development of Tanjung Priok Port at Kali Baru with investment budget forecast approximately US$ 1.3 Billion;  The development of Tourism Port of Tanah Ampo at Bali with investment budget forecast US$ 40 million.

20 PROSPECTS AND OPPORTUNITIES PPP TRANSPORTATION SECTOR

No Project Status Inland Transport 1 Development of Pekan Baru Cargo Terminal, Potential 2 Development of Karya Jaya Integrated Terminal, Palembang Potential

Railways 1 Rantau Prapat – Duri - Dumai – Tl.Kuantan – Muaro Railway Potential 2 Integrated Terminal Of Gedebage (Railway), Bandung, Potential 3 Muara Tuhup – Kalipapak – Balikpapan Coal Railway And Terminal, East Potential Kalimantan

21 PROSPECTS AND OPPORTUNITIES PPP TRANSPORTATION SECTOR

No Project Status Sea Port 1 Expansion Of Tanjung Priok, Kalibaru, DKI Jakarta. Ready For Offer 2 Tanah Ampo Cruise Terminal, Karangasem, Bali. Ready For Offer 3 Development Of Bulk Terminal (Kuala Enok Port), Riau Potential 4 Expansion Of Tanjung Priok Port, Cilamaya, Karawang, West Java Potential 5 Development Of Pelaihari Port, Potential 6 Development Of Maloy International Port, Potential

22 PROSPECTS AND OPPORTUNITIESPROSPECTS AND PPP OPPORTUNITIES TRANSPORTATION SECTOR PPP TRANSPORTATION SECTOR

No Project Status Airport 1 South Airport, Pandeglang, Banten Ready For Offer 2 Kertajati International Airport, West Java Potential 3 Expansion Of Dewandaru Airport Karimun Jawa, Potential 4 Kulonprogo International Airport, DI Potential 5 Development Of Singkawang Airport, Potential 6 Development Of New Bali Airport, Bali Potential 7 Development Of Tjilik Riwut Airport, Potential 8 Development Of New Samarinda Airport, East Kalimantan Potential

23 DEVELOPMENT PROGRAMME FOR MULTIMODAL TRANSPORTATION FLOW OF GOODS

PORT PASSENGER UNDEVELOPED AREAS TRANSPORTATION NODE GOODS TRANSPORTATION NODE 25 MAIN SEAPORT 1) 11 CARGO AIRPORT 2) 7 SPECIAL COAL TERMINAL 9 METROPOLIS4) 183 UNDEVELOP & CPO 3) REGIONAL DISTRICT 5)

1. Lhoukseumawe Port 1. Soetta Airport - Jakarta 1. Balikpapan 1. Mebidangro (Medan, 2 Very Severe Undeveloped 2. Belawan Port 2. Juanda Airport - 2. Samarinda Binjai, Deli, Serdang, Karo) District 3. Dumai Port Surabaya 3. 2. Palembang 18 Very Undeveloped District 4. Tj. Pinag Port 3. Samratulangi Airport - 4. Kotabaru 3. Jabodetabek (Jakarta, 106 Undeveloped District 5. Pekanbaru Port Manado 5. Belawan Bogor, Depok, Tangerang, 57 Mild Undeveloped 6. Batam Port 4. Hasanuddin Airport - 6. Dumai Bekasi) District 7. Teluk Bayur Port Makasar 7. Pekanbaru 4. Bandung Raya 8. Panjang Port 5. Sepinggan Airport - 5. Kedungsepur (Kendal, 9. Palembang Port Balikpapan Demak, , 10. Banten Port 6. Supadio Airport - , Purwodadi) 11. Tj. Priok Port Pontianak 6. Gerbangkertosusilo 12. Pontianak Port 7. St. Badaruddin Airport - (Gresik, Jombang, 13. Tj. Emas Port Palembang Mojokerto, Sidoarjo, 14. Tj.Perak Port 8. Frans Kaisiepo Airport - Lamongan) 15. Banjarmasin Port Biak 7. Sarbagita (Denpasar, 16. Kupang Port 9. - Bangli, Gianyar, Tabanan) 17. Benoa Port Wamena 8. Maminasata (Makasar, 18. Samarinda Port 10.Sentani Airport - Sungguminasa, Takalar, 19. Makassar Port Jayapura Maros) 20. Balikpapan Port 11.Hang Nadim Airport - 9. Jogmantul (Yogjakarta, 21. Bitung Port Batam Sleman, Bantul) 22. Biak Port 23. Jayapura Port 24. Ambon Port 25. Sorong Port

Note: 1) Determination Study of Port Open to Foreign Trade, Balitbanghub 2004 ; 2) Blue Print Concepts of National Logistics System, Coordinating Ministry of Economic Affairs 2009; 3) 70 Port Performance Data Analysis, Balibanghub, 2008 ; 4) PP 26/2008 Ttg RTRWN ; 5) Evaluation of 3 Years Undeveloped Areas, Ir. H.M. Lukman Edy MSi, 2007 24 THANK YOU

Planning Bureau General Secretariat of the Ministry of Transportation Medan Merdeka Barat Street No. 8 Jakarta 10110 Phone. : (021) 3811308, 3505006 Fax. : (021) 3522338