Infrastructure and Tourism-Infra Development in Indonesia Indonesia - PowerPoint PPT Presentation

Infrastructure and Tourism-Infra Development in Indonesia Indonesia Australia Business Conference 2017 Rainier Haryanto, Program Director Committee for Acceleration of Priority Infrastructure Delivery (KPPIP) 6 November 2017

Agenda RPJMN , Strategic, and Priority Infrastructure Projects RPJMN , Strategic, and Priority Infrastructure Projects Update on Strategic and Priority Project Status Solving Infrastructure Issues Solving Infrastructure Issues 2

Agenda RPJMN , Strategic, and Priority Infrastructure Projects RPJMN , Strategic, and Priority Infrastructure Projects Update on Strategic and Priority Project Status Solving Infrastructure Issues Solving Infrastructure Issues 3

To achieve higher economic growth, Indonesia has determined its infrastructure targets for the period of 2016 – 2019 which were stipulated in the National Medium Term Plan (RPJMN) Logistic Related Banda Aceh Sea toll concept as a means to support Indonesia in becoming the Miangas Belawan world maritime axis. Kuala Tanjung • develop 24 new seaports Maratua Pontianak Bitung Dumai • increase number of substantial Singkawang Batam Pohuwato vessels (pioneer cargo, transport Maloy Halmahera vessels, pioneer crossing vessels) Padang Muara Jayapura Sorong • develop 60 crossing ports Teweh Tojo Una- Pangkal Una Pinang Taria Enggano Palangkaraya Banjarmasin Sultan Strengthen connectivity through air Ambon Kenyam Hassanuddin Namniwel transport infrastructure Aboy development Makassar Panjang Tj. Priok Tj. Perak Kertajati • develop 15 new airports Koroway Merauke Cilacap Batu • develop air cargo facilities in 6 Moa Lombok locations Location of 24 new seaports & 15 new airports • increase number of pioneer Kupang Source: Bappenas airplanes Develop urban transport Reduce logistic cost by improving railway Improve transport efficiency by road infrastructure • develop Bus Rapid Transit development and maintenance develop new tracks in Java, Sumatra, • develop 2,650 km of new roads (BRT) in 29 cities Sulawesi, and Kalimantan: • develop 1,000 km of new toll roads • develop Mass Rapid Transit • rehabilitate 46,770 km of existing road • 2,159 km inter-urban railways (MRT) in 6 metropolis and 17 • 1,099 km urban railways large cities. Energy Related Achieve electrification ratio of 96.6% by Achieving food sovereignty through Ensure efficiency of fuel production 2019 through generating capacity irrigation system improvement by optimizing improvement domestic refineries • develop 33 new dams and 30 • develop power plants with total • build new oil refineries of hydropower plants capacity of 35,000 MW 2x300,000 barrels • expand 1 million ha irrigation system • Expand existing refineries in • rehabilitate existing irrigation system Cilacap and Balongan 4

Government of Indonesia introduced 245 projects and 2 programs as National Strategic Projects (PSN) with estimated total investment of US$322.8 Billion 27 61 Projects 24 13 Projects Projects Projects Sulawesi Kalimantan Sumatra US$11.9 B Maluku & Papua US$43.3 B US$49.1 B US$34.2 B 93 1 2 Programs Projects National Proyek Projects 10 12 Projects Java US$101.5 B 15 US$81.9 B Bali & Nusa Tenggara US$0.8 B PSN includes 15 sectors at project level and 2 sectors at program level Project WATER & IRRIGA- TECH- OIL INDUSTRI- FISHERY SMELTER ROAD SEAPORT AIRPORT HOUSING HOUSING IRIGASI SEA DIKE RAILWAY DAM SANITA- AL ZONE TION NOLOGY REFINERY TION 74 30 54 7 4 12 1 23 10 8 3 3 7 6 1 9 Projects Projects Projects Projects Projects Projects Projects Project Project Projects Projects Projects Projects Projects Projects Program Electricity 1 Airplane 1 Small- PROGRAM Medium PROGRAM Exchange rate: US$ 1 = IDR 13,000 5

From the 245+2 PSN, KPPIP has selected 37 Priority Projects out of the PSN stipulated in Coordinating Minister of Economic Affairs Regulation No. 5/2017 4 4 24 14 23 22 24 24 4 15 27 4 18 2 23 24 23 24 4 4 24 1 18 30 4 12 22 23 24 18 23 18 22 27 18 25 24 18 22 31 27 18 24 24 24 4 11 23 37 18 18 4 18 36 9 4 4 7 34 33 8 16 27 13 New Priority Projects # 3 24 24 10 13 19 37 17 32 20 29 20 27 21 Existing Priority Projects 35 26 # 28 37 6 37 37 5 37 24 24 24 1. Balikpapan-Samarinda Toll Road 13. Light Rail Transit (LRT) of DKI Jakarta 26. Tuban Oil Refinery 2. Manado-Bitung Toll Road 14. Kuala Tanjung International Hub Seaport 27. RDMP/Revitalization of Existing Oil Refineries 3. Panimbang-Serang Toll Road 15. Bitung International Hub Seaport (Balikpapan, Cilacap, Balongan, Dumai, Plaju) 4. 15 Segments of Trans Sumatera Toll Road 16. Patimban Port 28. Abadi WK Masela Field 5. Probolinggo-Banyuwangi Toll Road 17. Inland Waterways / Cikarang – Bekasi – Laut 29. Unitization Field Has Jambaran-Tiung Biru 6. Yogyakarta-Bawen Toll Road (CBL) 30. Indonesian Deepwater Development (IDD) 7. SHIA Express Railway 18. Palapa Ring Broadband 31. Tangguh LNG Train 3 Development 8. MRT Jakarta North – South Line 19. Central Java Power Plant (CJPP) 32. West Semarang Drinking Water Supply 9. Makassar – Parepare Railway 20. Central – West Java Transmission Line 500 kV 33. Jakarta Sewerage System 10.Light Rail Transit (LRT) of Jakarta, Bogor, 21. Indramayu Coal-fired Power Plant 34. National Capital Integrated Coastal Depok and Bekasi 22. Sumatera 500 kV Transmission (4 Provinces) Development (NCICD) Phase A 11.Light Rail Transit (LRT) of South Sumatera 23. Mulut Tambang Coal-fired Power Plant (6 35. Jatiluhur Drinking Water Supply 12.East Kalimantan Railway Provinces) 36. Lampung Drinking Water Supply 24. PLTGU (16 Provinces) 37. Waste to Energy Program in 8 Cities 25. Bontang Oil Refinery 6

Included in the PSN are Industrial Estates (IE), Special Economic Zones (SEZ), and Priority Tourism Destination (PTD) projects 7

For the SEZ projects, among 12 projects in total, 4 projects are tourism focused 1 SEZ Projects in PSN 2 9 10 7 11 8 4 3 5 6 12 Project Value (mio No Project Status US$) 1 Lhokseumawe SEZ 12.70 Preparation 2 Sei Mangkei SEZ 395.38 Operating Preparation (US$958.85 mio) 3 Tanjung Api-Api SEZ 946.15 Preparation 4 Belitung SEZ 115.38 Construction Construction (US$ 1,018.46 mio) 323.08 5 Tanjung Lesung SEZ Operating 169.23 6 Mandalika SEZ Operating Operating* (US$1,200 mio) 200.00 7 Maloy Batuta Trans Kalimantan SEZ Construction Not yet determined as SEZ by 130.77 8 Palu SEZ Operating National Council of SEZ 9 Bitung SEZ 176.92 Construction 10 Morotai SEZ 523.08 Construction (Exchange rate: US$ 1 = IDR 13,000) 11 Sorong SEZ 184.62 Construction *Projects in “Operating” phase may also 12 Merauke SEZ - Not Yet Determined still undergo construction : SEZ with focus on tourism industry 8

Government support Development of strategic transportation projects to support SEZs 1 2 13 10 9 18 14 7 15 17 16 8 11 4 3 19 5 12 6 SPECIAL ECONOMIC ZONE INFRASTRUCTURE 9. Bitung 1. Arun Lhokseumawe 13. Pelabuhan Hub Internasional 18. Kereta Api Tebing Tinggi – Kuala 10. Morotai 2. Sei Mangkei Kuala Tanjung Tanjung 11. Sorong 3. Tanjung Api-Api 14. Pelabuhan Hub Internasional 19. Kereta Api Tanjung Enim – Tanjung 12. Merauke 4. Tanjung Kelayang (Belitung) Bitung Api-Api 5. Tanjung Lesung 15. Pelabuhan KEK Maloy 6. Mandalika 16. Pelabuhan Palu (Pantoloan) 7. Maloy Batuta Trans Kalimantan 17. Pelabuhan Sorong Seget 8. Palu 9

Government support for SEZs and Tourism Destination under PSN Issuance of regulation to accelerate the delivery of PSN Projects Government Reg. No. 13/2017 on National Spatial Plan (RTRWN) The issuance of RTRWN can encourage the settlement of obstacles that are caused by spatial mismatch in the implementation of infrastructure projects listed in the annex of Government Reg. No. 13/20. This regulation provides legal certainty for regional governments in following spatial planning recommendations for PSN issued by the Ministry of Agraria and Spatial Planning. Presidential Reg. No. 56/2017 Mitigation of Social Impact in the Land Acquisition for PSN This Presidential Regulations is the Government’s effort to minimize the social impact of land acquisition for PSN delivery, especially in state-owned land that have been informally inhabited by public. This regulation enables acceleration of land acquisition by providing a strong legal basis in giving compensation for communities whose living spaces and economic opportunities are impacted by infrastructure development on state- owned land. MoF Regulation No. 60/2017 on Procedures for the Provision of Central Government Guarantee for the Acceleration of the PSN Implementation This regulation enables further provision of Government Guarantee with regards to political risk for PSN projects, including SEZs. Usage of this political risk guarantee would provide greater certainty to investors in investing in PSN projects, which is expected to make investment in PSN projects more attractive. 10