Indonesia Investment Summit 2013-Hong Kong 22-23 October 2013 by Eddy Satriya
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Transcript of Indonesia Investment Summit 2013-Hong Kong 22-23 October 2013 by Eddy Satriya
Presented in:Indonesia 2013 Investment SummitConrad Hong Kong, October 21-23, 2013
By: Eddy SatriyaHead of International Cooperation Division
Secretariat of KPE3I
COMMITTEE FOR ACCELERATION AND EXPANSION OF INDONESIA ECONOMIC DEVELOPMENT
KP3EI
1
Accelerating Indonesia’s EconomicTransformation Through MP3EI
Synergy in Resources, Power andInfrastructure
OUTLINE:KP3EI
1. MP3EI: The Way We Are
2. MP3EI Updates
3. Capitalizing on Mining Sector to Support
Infrastructures Development
4. Debottlenecking Initiatives and Priority Projects
ScreeningCommittee for Acceleration and Expansion of Indonesia Economic Development 2011-2025
1.MP3EI: The Way We Are1.MP3EI: The Way We Are
KP3EI
Committee for Acceleration and Expansion of Indonesia Economic Development 2011-2025
Before, Now, and Then……!!!(China , America, and Indonesia)
China constructs Bridges
What can Indonesia do???
America exports Chopsticks
Rich Natural Resourcesmost of them are still intact to be processed into higher VA products
Natural Gas Thermal Coal Geothermal Palm Oil Cocoa Tin Nickel Bauxite FrequencySpectrum
KeyMetrics
About 165TCF of
reserves atproductionrate ± 3 TCF
pa
Worldsecondlargest
exporter
Home of40% ofworld’s
resources(the largest
in theworld)
World’slargest
exporter;>19 miltons per
year
At 770 thoutons/year,world’s 2nd
largestproducer
At 65 thoutons/year,world’s 2nd
largestproducer
Own ± 12%of world’sreserves
(4th largest)
World’s 7th
largestreserves;
world’s 4th
largestproduction
700 MHzoutside
Java,Potential
arrangement for Java
area
2300-2360MHz urbannationwide
About 40% is assumedfeasible. Up to now, 1.200MW has been developed.
Will be at least partiallyprocessed
domestically by 2013(new mining law:
4/2009)
• Abundant resources forgas-based energy andpetrochemical industries
• Not including Non-Conventional Gases,from Coal Bed Methaneand Coal Gassification
5
6
Indonesia’s Population is Growing and BecomingMore Affluent
74mill
141mill
7
All of Indonesia’s MAC Population is Growing,There is a valid concern that economic domination of
Java and Sumatra need to reduced in the long run
Slide - 8
Note: MAC (Middle-class and Affluent Consumer)
Increase economic precense at the regional economic centers is inevitable not only tomaintain market penetration but more to foster enhanced economic competitiveness and
resilience
Increase economic precense at the regional economic centers is inevitable not only tomaintain market penetration but more to foster enhanced economic competitiveness and
resilience8
Political Stability: the world’s third largest democracy
Appointed
Appointed38%
Directlyelected
Directlyelected
62%
0%
20%
40%
60%
80%
100%
2002 2007 2009Source: World Bank, 2009
% of appointed local government heads vs. directly elected
In election year 2009, President wins
more than 60% votes from 176 millionregistered voters
(election year 2009)
9
(New) DemocracyYES!Just Recently (20 Sept2012)
An humble Major fromsmall city Solo in CentralJava, JOKO WIDODOpaired with AHOK fromBelitung (Sumatera),unsurprisingly won themost prestigious positionas DKI Jaya - Jakartagovernors.
Courtesy of Antara10
Indonesia is above world average… Indonesia >100(above world mobile average)
11
0
10
20
30
40
50
60
70
80
90
100
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011*
Per
100
inha
bita
nts
Global ICT developments, 2001-2011*
Mobile-cellular telephone subscriptions
Internet users
Fixed telephone lines
Active mobile-broadband subscriptions
Fixed (wired)-broadband subscriptions
* Estimate.Source: ITU World Telecommunication /ICT Indicators database
11
2010 2011 2012
TARGETRPJM REALIZATION TARGET
RPJM REALIZATION TARGET RPJM REALIZATION*)
Economic Growth 5,5- 5,6 6,2 6,0 - 6,3 6,5 6,4 - 6,9 6,23Inflation 4 - 6 7 4,0 - 6,0 3,8 4,0 - 6,0 4,30Unemployment 7,6 7,1 7,3 - 7,4 6,6 6,7 - 7,0 6,14 (Agt)Poverty 12,0 - 13,5 13,33 11,5 - 12,5 12,49 10,5 - 11,5 11,66 (Sept)
When Realizations meet TargetsWhen Realizations meet Targets
2013 2014STATUSTARGET
RPJMTARGET
APBN 2013TARGET
RPJMTARGET
RKP
Economic Growth 6,7 - 7,4 6,8 7,0%-7,7% 6,8 – 7,2Inflation 3,5 – 5,5 4,9 3,5 – 5,5 4,5 + 1Unemployment 6,0 - 6,6 5,8 – 6,1 5%-6% 5,0 – 6,0Poverty 9,5 - 10,5 9,5 – 10,5 8%-10% 8,0 – 10,0
1 On Track/on Trend 2 =Need Efforts
2
1
1
2*) Tentaive figureSource: Bappenas 2013 12
Indonesia’s GDP Growth Rate 1994 - 2012Relatively robust, but still lower than pre-1997 crisis average rate
7,54 8,22 7,824,70
-13,13
0,79
4,923,64 4,50 4,78 5,03 5,69 5,50 6,35 6,01
4,586,20 6,46 6,23
-15
-10
-5
0
5
10
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
(% YoY)
Source: Indonesia Statistic
Impact of 2008’sglobal financial crisis.
Impact of 1997’sAsian financial crisis.
2001 - 2006: 5 %1994 - 1997 : 7,1 % 2007 - 2012: 6 %
During pre-Asian crisis (1994-1997), the economy grew at an annual average rate of 7.1%, andwas named an 'Asian Tiger' by the World Bank along with South Korea and Thailand.
After Asian Crisis (2001-2006); Indonesia’s average annual GDP growth rate was 5%. From 2007-2012; Indonesia’s average annual GDP growth rate was 6 %. If this can be raised to
7% over the next 20 years, we believe Indonesia will be among the world’s 12 biggesteconomies by 2025, and the 6 biggest economies by 2050. Mc Kinsey Global Institute predictsIndonesia will be the 7th-largest economy in the world in 2030. Standard Chartered GlobalResearch predicts Indonesia will be the world’s 10 largest economies in 2020, and the top six in2030.
~6.02013
13
Key Economics Stabilization Achievement:Consistently Reduced Poverty and Unemployment Rate
Indonesia’s robust average GDP growth of 6.2% over the past six years has reduced theunemployment rate to 6.15% of the total labour force in September 2012 from 11.2% in2005.
In September 2012 the poverty rate dropped significantly to 11.66% of the totalpopulation from 17.75% in 2006.
36,1
0
35,1
0
39,3
0
37,1
7
34,9
6
32,5
3
31,0
2
30,0
2
28,5
9
16,66 15,9717,75
16,5815,42
14,1513,33
12,49 11,66
0,00
2,00
4,00
6,00
8,00
10,00
12,00
14,00
16,00
18,00
20,00
5
10
15
20
25
30
35
40
45
50
2004 2005 2006 2007 2008 2009 2010 2011 2012
poverty (million lives) poverty rate ( % of total population)
Source: Indonesia statistic
10.2
5
11.9
0
10.9
3
10.0
1
9.39
8.96
8.32
7.70
7.24
9,86
11,2410,28
9,118,39 7,87
7,146,56 6,14
-1
1
3
5
7
9
11
13
2,00
4,00
6,00
8,00
10,00
12,00
14,00
2004 2005 2006 2007 2008 2009 2010 2011 2012
unemployment (million people) unemployment rate (%)
Source: Indonesia statistic
unemployment rate poverty rate
14
THE PROJECTED NATIONAL GDP STRUCTURE 2025(BY ECONOMIC CORRIDOR)
NATIONAL GDP TARGET 2025US$ 4.000 – 4.500 billions
FROM 23.8% 27From US$ 217 b US$ 1114 b
FROM 2.1% 3.5%From US$ 19 b US$ 144 b
FROM 4.8% 6%From US$ 44 b US$ 248 b
FROM 2.5% 3.5%From US$ 23 b US$ 144 b
FROM 9.3% 11%From US$ 85 b US$ 454 b
FROM 9.3% 11%From US$ 520 b US$ 2021 b
15
Indonesia Economic Corridors: Masterplan
Basically MP3EI is based on thesestrategic initiatives:1. Encourage a large scale investment
realization in 22 main economicactivities
2. Synchronization of national action planto revitalize the real sectorperformance
3. The development of center ofexcellence in 6 (six) economiccorridors
Main strategy of MP3EI:1. Economic potential development
through economic corridor2. Strengthening the national connectivity3. Strengthening national human
resources capability and science andtechnology
16
With AEC and APEC integration around the corner, Readiness ofEastern Part of Indonesia is the Main Concern Indonesia
17
Strategic Focus Areas to Boost Reg. Development
1818
MP3EI aims at accelerating Indonesia’s economic transformation throughcross-entity synergy and collaboration
MP3EI aims at accelerating Indonesia’s economic transformation throughcross-entity synergy and collaboration
2010GDP ~ US$ 700 B
GDP/c US$ 3,00517th major nation
2010GDP ~ US$ 700 B
GDP/c US$ 3,00517th major nation
2014GDP: US$ ~ 1,2
T
GDP/c:US$ ~ 4.80014 majoreconomy
2014GDP: US$ ~ 1,2
T
GDP/c:US$ ~ 4.80014 majoreconomy
2025GDP: US$ 3,8 –4,5T
GDP/c:13.000 – 16.100US$12 high incomecountry
2025GDP: US$ 3,8 –4,5T
GDP/c:13.000 – 16.100US$12 high incomecountry
1
2
3
Developing economic potential through economiccorridors
Strengthening national human resourcescapability and science & technology
Strengthening national connectivity
• Coordinating Ministry of Economic Affairs, NationalDevelopment and Planning Agency, Ministry of Finance,Ministry of Public Works, Ministry of Transportation,Ministry of Forestry, Ministry of Energy and MineralResources (other relevant Ministries), Governors,Chamber of Commerce leaders, experts, business players
• 9 Working Groups: 3 Cross-sector Working Groups(Regulation, Connectivity, HR & Tech) and 6 WorkingGroups of Economic Corridors)
In creating economic transformation for Indonesia,MP3EI employs three pillars…In creating economic transformation for Indonesia,MP3EI employs three pillars…
… and revolves in the cross-entity efforts to ensuresound projects coordination, consisting of:… and revolves in the cross-entity efforts to ensuresound projects coordination, consisting of:
Chairman : PresidentVice Chairman: Vice President
DAILY IMPLEMENTATION TEAMChairman: Coordinating Minister of Economic AffairVice Chairman 1: Minister of National Dev Planning AgencyVice Chairman 2: Chairman of National Economic Committee
SECRETARIAT
JavaEC
Team
Sumatra
EC*Team
Sulawesi
ECTeam
KalimantanEC
Team
Bali-NTEC
Team
Papua-Kep.MalukuEC Team
REGULATIONWorking Group
CONNECTIVITYWorking Group
HR & TECHWorking Group
Note*ECEconomicCorridor
19
19
2. MP3EI Updates2. MP3EI Updates
KP3EI
Committee for Acceleration and Expansion of Indonesia Economic Development 2011-2025
MP3EI Updates:The Importance of MP3EI
21
Increasing Indonesia's Investment Attractiveness& Regional Based National Economic StrategiesIncreasing Indonesia's Investment Attractiveness& Regional Based National Economic Strategies
Triggered the urgency of SystematicTechnocracy to accommodate the increasingin Value-Added Economic Activities
Triggered the urgency of SystematicTechnocracy to accommodate the increasingin Value-Added Economic Activities
Ability to accommodate a quite effectivesystem for Synchronization and CoordinationAbility to accommodate a quite effectivesystem for Synchronization and Coordination
Provided fresh spirit and sense of hope for therealization of the well-being and developedinclusive society
Provided fresh spirit and sense of hope for therealization of the well-being and developedinclusive society
MP3EI
1
2
3
4
MP3EI Investment UpdatesPer July 2013
Rp. 4,482 TTotal Investment
Rp. 2,304 TInfrastructures
Investment
Rp. 2,178 TEconomic Activities
Investment22
MP3EI Investment Updates (2)Groundbreaked Projects
240Ground-breakedProjects:
647Trillion
RupiahsInvestment
283Trillion RupiahsInfrastructures
Projects
364Trillion Rupiahs
Real SectorsProjects
146 Projects146 Projects
94 Projects94 ProjectsInvestment updates as per July 2013
23
Infrastructure InvestmentsIncluding “KPI-Supporting Infrastructures” (in Billion Rupiahs)
per August 2013 24
INFRASTRUCTURES
MainInfrastructures
NationalBudget 61,646
SOE 512,971
Private 17,569
Mixed 322,105
KPI-Supporting
Infrastructures
NationalBudget 367,607
SOE 1,292,092
Private 679,118
Mixed 796,202
Actual percentage of GB 2011 based on the valueof the investment (not the number of projects)
Actual Groundbreaking Value based on investment (inTrillion Rupiah)
Papua - Maluku
Not yetAlready Groundbreaked
80100%
Bali - NT 40100%
Sulawesi 6418%
Kalimantan 2695% 5%
Jawa 17198%
Sumatera 9097% 3%
100%
TotalInvestment
411,63
MixedGovernment
77,14
94,46
Private
80,24
SOE
159,78
Sulawesi Economic Corridor has as many as 7 of the11 GB projects, but the projects that have not beenGroundbreaked worth quite large (in the mineralmining sector).
So far, 92% projects have been realized for the GB projectslist in 2011. Only in Sulawesi, the realization of the totalproject remaining 63% %
TotalInvestmentRp Triliun
37projects
42projects
22projects
10projects
111projects
25
6% 35,594%
100%
Bali - NT 4,437% 63%
Sulawesi 10,4100%
Kalimantan 99,3100%
Jawa 92,6100%
Sumatera 37,817% 83%
Papua - Maluku
Private
115,56
Mixed
13,07
SOE Government
42,00
41,65
TotalInvestments
212,28
These indicates high value projects that have not beengroundbreaked on Sumatera dn Papua-Kep.MalukuEconomic Corridors (Sumatra: toll roads, state-ownedinvestment on fertilizer; Papua: Freeport).
So far 81% have been realized for the GB projects in2012. Java and Sulawesi GB is 100%.
TotalInvestmentRp Triliun
20projects
28projects
21projects 4 projects 71
projects
Actual percentage of GB 2011 based on the valueof the investment (not the number of projects)
Actual Groundbreaking Value based on investment(in Trillion Rupiah)
26
Not yetAlready Groundbreaked
Economic Corridors
Total Projects Investment Value(Billion Rupiahs) Total
Infrastructure Real Sectors Infrastructure Real Sectors ProjectsInvestment
Value(Billion Rp.)
Sumatera 32 7 25.814,9 36.719,0 39 62.533,9
Jawa 13 31 74.840,0 40.934,0 44 115.774,0
Kalimantan 9 11 14.628,0 94.250,7 20 108.878,7
Sulawesi 9 7 7.880,0 2.858,0 16 10.738,0
Bali-NT 5 4 16.838,0 26.435,0 9 43.273,0
Papua-Kep.Maluku 14 4 3.085,0 201.480,0 18 204.565,0
Total 82 64 143.085,9 402.676,7 146 545.762,6
The project plan’s value will be very high, compared to 2012’s GB list, with investment value about twice from 2012.
* December 2012 27
Real Sectors Groundbreaking Matrix 2011 – Juli 2013SOE Private Government Mixed Total
TP Investment TP Investment TP Investment TP Investment TP Investment
Sumatra2011 6 2.956,13 7 9.532,99 0 - 1 50.600,00 14 63.089,122012 2 5.638,00 6 506,54 0 - 0 - 8 6.144,542013 1 6.247,03 0 - 0 - 0 - 1 6.247,03
TOTAL 9 14.841 13 10.040 - - 1 50.600 23 75.480,69
Jawa2011 6 18.569,65 14 19.040,61 - - 0 - 20 37.610,262012 0 - 8 9.953,00 0 - 0 - 8 9.953,002013 0 - 0 - - 0 - 0 -
TOTAL 6 18.570 22 28.994 - - - - 28 47.563,26
Kalimantan2011 4 5.216,00 6 4.038,95 0 - 1 4.500,00 11 13.754,952012 6 6.741,46 7 84.290,00 0 - 0 - 13 91.031,462013 1 4.400,00 1 1.200,00 0 - 0 - 2 5.600,00
TOTAL 11 16.357 14 89.529 - - 1 4.500 26 110.386,41
Sulawesi2011 1 4.500,00 4 6.692,00 0 - 1 735,70 6 11.927,702012 1 4.138,80 0 - 0 - 0 - 1 4.138,802013 0 - - - 0 - 0 - 0 -
TOTAL 2 8.639 4 6.692 - - 1 736 7 16.066,50
Bali - NT2011 0 - 4 32.252,00 0 - - - 4 32.252,002012 0 - 1 1.500,00 0 - 0 - 1 1.500,002013 0 - 0 - 0 - 0 -
TOTAL 0 0 5 33752 0 0 0 0 5 33.752,00
Papua - KepMaluku
2011 1 14.400,00 3 48.809,20 - - 1 18.000,00 5 81.209,202012 0 - 0 - 0 - 0 - 0 -2013 0 - 0 - 0 - 0 -
TOTAL 1 14.400 3 48.809 - - 1 18.000 5 81.209,20
Total Koridor
2011 18 45.641,78 38 120.365,75 0 - 4 73.835,70 60 239.843,232012 9 16.518,25 22 96.249,54 0 - 0 - 31 112.767,802013 2 10.647,03 1 1.200,00 0 - 0 - 3 11.847,03
TOTAL 29 72807,063 61 217815,289 0 0 4 73835,7 94 364.458,05
*TP= Total Projects28
SOE Private Government Mixed TotalTP Investment TP Investment TP Investment TP Investment TP Investment
Sumatra2011 7 8.983,40 0 - 2 3.834,00 11 15.332,00 20 28.149,402012 0 - 2 4.318,00 7 3.993,10 3 5.525,00 12 13.836,102013 0 -
TOTAL 7 8983,4 2 4318 9 7827,1 14 20857 32 41.985,50
Jawa2011 7 31.561,00 0 - 7 11.787,00 5 12.882,00 19 56.230,002012 4 41.201,00 2 6.687,00 4 29.200,00 3 10.185,00 13 87.273,002013 0 -
TOTAL 11 72762 2 6687 11 40987 8 23.067,00 32 143.503,00
Kalimantan2011 2 3.297,00 1 783,00 8 21.339,00 1 1.200,00 12 26.619,002012 1 350,00 0 - 10 4.791,00 2 1.557,00 13 6.698,002013 1 1.200,00 1 363,28 1 22.000,00 3 23.563,28
TOTAL 4 4847 1 783 19 26493,28 4 24757 28 56.880,28
Sulawesi2011 - - 0 - 9 3.399,00 0 - 9 3.399,002012 2 4.487,00 3 2.278,00 3 1.188,00 0 - 8 7.953,002013 0 -
TOTAL 2 4487 3 2278 12 4587 0 0 17 11.352,00
Bali - NT2011 5 3.382,00 0 10 6.163,00 0 15 9.545,002012 0 - 0 - 1 110,00 1 110,00 2 220,002013 0 -
TOTAL 5 3382 0 0 11 6273 1 110 17 9.765,00
Papua - KepMaluku
2011 1 2.500,00 0 - 15 12.534,92 1 500,00 17 15.534,922012 1 3.600,00 0 - 2 384,00 0 - 3 3.984,002013 0 -
TOTAL 2 6100 0 0 17 12918,92 1 500 20 19.518,92
Total Koridor
2011 22 49.723,40 1 783,00 51 59.056,92 18 29.914,00 92 139.477,322012 8 49.638,00 7 13.283,00 27 39.666,10 9 17.377,00 51 119.964,102013 1 1200 0 0 1 363,28 1 22000 3 23.563,28
TOTAL 31 100561,4 8 14066 79 99086,3 28 69291 146 283.004,70
Infrastructures Groundbreaking Matrix 2011 – Juli 2013
*TP= Total Projects29
SOE Private Government Mixed TotalTP Investment TP Investment TP Investment TP Investment JP Investasi
Sumatra2011 13 11.939,53 7 9.532,99 2 3.834,00 12 65.932,00 34 91.238,522012 2 5.638,00 8 4.824,54 7 3.993,10 3 5.525,00 20 19.980,642013 1 6247,026 0 0 0 0 0 0 1 6.247,03
TOTAL 16 23824,556 15 14357,529 9 7827,1 15 71457 55 117.466,19
Jawa2011 13 50.130,65 14 19.040,61 7 11.787,00 5 12.882,00 39 93.840,262012 4 41.201,00 10 16.640,00 4 29.200,00 3 10.185,00 21 97.226,002013 0 0 0 0 0 0 0 0 0 -
TOTAL 17 91331,65 24 35680,61 11 40987 8 23067 60 191.066,26
Kalimantan2011 6 8513 7 4.821,95 8 21.339,00 2 5.700,00 23 40.373,952012 7 7091,457 7 84.290,00 10 4.791,00 2 1.557,00 26 97.729,462013 2 5600 1 1200 1 363,28 1 22000 5 29.163,28
TOTAL 15 21204,457 15 90311,95 19 26493,28 5 29257 54 167.266,69
Sulawesi2011 1 4500 4 6.692,00 9 3.399,00 1 735,70 15 15.326,702012 3 8625,8 3 2.278,00 3 1.188,00 0 - 9 12.091,802013 0 0 0 0 0 0 0 0 0 -
TOTAL 4 13125,8 7 8970 12 4587 1 735,7 24 27.418,50
Bali - NT2011 5 3382 4 32.252,00 10 6.163,00 0 - 19 41.797,002012 0 0 1 1.500,00 1 110,00 1 110,00 3 1.720,002013 0 0 0 0 0 0 0 0 0 -
TOTAL 5 3382 5 33752 11 6273 1 110 22 43.517,00
Papua - KepMaluku
2011 2 16900 3 48.809,20 15 12.534,92 2 18.500,00 22 96.744,122012 1 3600 0 - 2 384,00 0 - 3 3.984,002013 0 0 0 0 0 0 0 0 0 -
TOTAL 3 20500 3 48809,2 17 12918,92 2 18.500,00 25 100.728,12
Total Koridor
2011 40 95.365,18 39 121.148,75 51 59.056,92 22 103.749,70 152 379.320,552012 17 66.156,25 29 109.532,54 27 39.666,10 9 17.377,00 82 232.731,902013 3 11847,026 1 1200 1 363,28 1 22000 6 35.410,31
TOTAL 60 173368,463 69 231881,289 79 99086,3 32 143126,7 240 647.462,75
TOTAL Groundbreaking Matrix 2011 – Juli 2013
*TP= Total Projects 30
KalimantanKalimantan
SumatraSumatra
JavaJava
Bali – NusaTenggaraBali – NusaTenggara
SulawesiSulawesiPapua-MalukuPapua-Maluku
SumatraInvestment
Value(US$ Mill)
Toll RoadsMedan–Binjai (15.8 km) 210.4Palembang–Indralaya (22 km) 179.6Pekanbaru–Kandis–Dumai (135 km) 1,529.9Bakauheni–Terbanggi Besar (150 km) 2,372.4Tebing Tinggi–Kisaran–Rantau Prapat (178 km) 1,396.2Panimbang–Serang (83 km)** 1,191.0Lubuk Pakam–Tebing Tinggi (43.5 km)* 707.8
SeaportsHub Kuala Tanjung 2,794.5Tanjung Sauh at Batam Not yet available
JavaInvestment
Value(US$ Mill)
Access Road to Purwakarta Industrial Area (7.8km)* 71.2Umbulan Water Supply* 211.3Cilamaya Port and Access Road (30km) 4,175.6Karawang Airport & Access Road 3,746.5Railway Madiun–Surabaya (165 km Double Track) 429.5Coal-Fired Power Plant Indramayu 4 (1 x 1000 MW)* 2,116.0
KalimantanInvestment
Value(US$ Mill)
Toll Road Balikpapan-Samarinda(99.02 km)
1,260.5
Purukcahu–Bangkuang–Mangkatip Railway (290 km)
2,277.0
Coal-Fired Power PlantAsamasam 5-6 (2x100 MW)*
331.2
SulawesiInvestment
Value(US$ Mill)
Road Palu–Parigi (37.4 km) 103.5
Toll Road Manado–Bitung (46 km) 353.1International Hub Bitung 3,208.4Railway Makassar–Pare-Pare (136.3km)*
621.0
Hydro Electric Power Plant Karama(4x112.5 MW)*
1,375.5
Bali-NTInvestment
Value(US$ Mill)
Water Supply South Bali** 282.2
Papua-MalukuInvestment
Value(US$ Mill)
Road Enarotali–Tiom (240 km)** 173.9
Notes: Blue-marked projects are potential PPP-projects. All projects are expected to groundbreak (GB) in 2017, except: *) GB in 2015 and **) GB in 2016
25 HIGH PRIORIT Y PROJECTS WILL BE READY FOR GROUNDBREAKING BETWEEN2015 AND 2017. 16 PROJECTS OF THESE PROJECTS HAVE POTENTIAL TO BE FUNDEDTHROUGH A PPP SCHEME.
31
MP3EI Enhancements
32
EnhancedMP3EI
EnhancedMP3EI
MaritimizationStrengthening themanagement of
marine resources,strengthening
connectivity, andstrengthening of the
National LogisticsSystem
MaritimizationStrengthening themanagement of
marine resources,strengthening
connectivity, andstrengthening of the
National LogisticsSystem
Natural-ResourceBalance Sheet
Optimization of potential ofnatural resources to
support the realization ofecological sustainability
Natural-ResourceBalance Sheet
Optimization of potential ofnatural resources to
support the realization ofecological sustainability
Strengthening ofEconomic SocietyWhere the economic
dimension will becamecornerstone in the
empirical process ofacceleration and
expansion of economiccorridor development
Strengthening ofEconomic SocietyWhere the economic
dimension will becamecornerstone in the
empirical process ofacceleration and
expansion of economiccorridor development
Enhanced Version of MP3EI are plannedto be released on APEC Summit 2013
Incorporating Sustainable Development IssuesInto MP3EI
Water (air)
Energy (energi)
Health (kesehatan)
Agriculture (pertanian)
Biodervisity (biodiversitas)
Indonesia's participation inthe World Summit onSustainable Development(WSSD) has demonstrated acommitment to achievesustainable economicdevelopment.
In practice, the WSSD hasprovided a WEHABframework that consists offive inherent aspect ofhuman life
33
3. Capitalizing on Mining Sector toSupport Infrastructures Development
3. Capitalizing on Mining Sector toSupport Infrastructures Development
KP3EI
Committee for Acceleration and Expansion of Indonesia Economic Development 2011-2025
Mining Sectors on MP3EIIncluded on 22 Main Economic ActivitiesMining Sectors on MP3EIIncluded on 22 Main Economic Activities
35
22 MainEconomicActivities
22 MainEconomicActivities
Oil&GasOil&Gas Ship
pingShipping Textil
esTextil
esFood
Beverage
FoodBeverag
e
SteelSteel
DefenseEquipm.DefenseEquipm.
PalmOil
PalmOil
Rubber
Rubber
CocoaCocoa
AnimalHusbandry
AnimalHusbandryTim
berTimber
TransportTransport
CoalCoalNickelNickel
Copper
Copper
Bauxite
Bauxite
Fisheries
Fisheries
Tourism
Tourism
FoodCropsFoodCrops
Metropolitan
JakartaArea
Metropolitan
JakartaArea
SundaStraitArea
SundaStraitArea
ICTICT• MP3EI sets a number of major
programs and the maineconomic activities focused ofdevelopment strategies andpolicies.
• This priority is a result of anumber of agreements thatare built together with allstakeholders in the discussionand dialogue series that areinteractive and participatory.
• Mining Sectors such as Steel,Coal, Nickel, Copper, Bauxiteare included on MP3EI’s 22Main Economic Activities.
MP3EI Impact on InfrastructureAnd Mining SectorsMP3EI Impact on InfrastructureAnd Mining Sectors
36*)Regulation such as Law No.4 year 2009, Government Regulation No. 27 year 2012, Government Regulation
No. 23 year 2010, and Minister of Energy and Mineral Resources’ Decree No. 7 year 2012
Role of Mining Sectors in MP3EIRole of Mining Sectors in MP3EI
37Source: Ministry of Energy and Mineral Resources, Republic of Indonesia
• Exploration and Exploitation• Mining Facilities• Smelter• Coal Processing Facilities (Gasification and
Upgrading, etc.)
MiningActivities
• Road• Railway• Port
Infrastructures
• Coal Based Power Plant• Mine Mouth Coal Based Power Plant• Renewable Energy Power Plant
Electricity
• Steel Industry• Cement Industry• Pulp & Paper
Other Industry
MP3EI infrastructure projects offer potential opportunities of~USD 64 billion for private sector participation
Funding Gap
599(28%)
APBN
152(7%)
PPP
400(19%)
SOE
536(25%)
41%
24%
Funding gap calculation based on:• MP3EI Database per 31 August 2012 (477 Projects)• Funding gap formula: Investment value – (allocated State Budget + SOE). Private sector funded projects are assumed 100% fully covered.• ICT sector is not included in the calculation as the projects list still under progress of validation• Energy funding gap requires further validation with PLN
MP3EI Infastructure Project Funding Sources* MP3EI Infrastructure Project Funding Gap perInfrastructure Sector
1%8%24%
27% 41%
Water(logistics),
0,2%Airport, 10,6%
Energy, 34,3%Road &Bridges, 11,0%
Railway,22,5%
Seaport,21,5%
Potential PPP opportunities are largest inthe energy, railway and seaport sector.There are also opportunities in the road,airport and water sector.
Funding Gap: ~ USD64 Billion
State-OwnedEnterpriseFunds
State Budget(APBN)
Private Funds
Mixed Funds
38
The government will lead the infrastructure development byfunding 15 projects that will ground break in 2014
The 15 infrastructure projects funded by the Government will be the kickoff for infrastructure development inIndonesia and improve Indonesia’s competitiveness through a significant reduction of logistical costs
The 15 Infrastructure projects to be funded by theGovernment have a total investment value of US$ ~ 3.72Billion
2014:
15Infrastructure
Projects(38%)
2014:
15Infrastructure
Projects(38%)
2017:
25Infrastructure
Projects(62%)
2017:
25Infrastructure
Projects(62%)
MP3EI High Priority Projects in 2014Bridge 1 ProjectWater 2 Projects
Sanitation 1 ProjectEnergy 2 Projects
ICT 1 ProjectRailway 2 ProjectsAirport 1 Project
Seaport 5 Projects
Sumatra:3 ProjectsUS$ 1.13 Billion
Kalimantan2 ProjectsUS$ 988.8 Million
Sulawesi2 ProjectsUS$ 659.2 Million
Papua-Maluku1 ProjectUS$ 164.8 Million
Bali-Nusa Tenggara2 ProjectsUS$ 144.2 Million
Java:4 ProjectsUS$ 350.2 Million
National ICT Project(Palapa Ring):US$ 288.4 Million
2014
39
25 Priority Projects that are planned for groundbreaking before2017 have large potential to be funded through PPP schemes
16 High Priority Projects with groundbreaking before 2017 will be offered to the private sector through Private-Public Partnership (PPP) schemes.
2014:
15 InfrastructureProjects(38%)
2014:
15 InfrastructureProjects(38%)
2017:
25Infrastructure
Projects(62%)
2017:
25Infrastructure
Projects(62%)
5 projects directly funded throughState Budget(20%)
3 projects indirectly funded throughState Budget (Loans)(12%)
1 project funded by State-Owned Enterprise(4%)
Those 25 projects, which will be groundbreaking before2017, have a total investment value of US$ ~32 Billion
MP3EI High Priority Projects in 2017Road 12 Projects
Water Supply 2 ProjectsRailway 3 ProjectsAirport 1 ProjectsEnergy 3 ProjectsSeaport 4 Projects
Sumatra:9 ProjectsUS$ 10.3 Billion
Kalimantan3 ProjectsUS$ 3.9 Billion
Sulawesi5 ProjectsUS$ 5.6 Billion
Papua-Maluku1 ProjectUS$ 175.1 Million
Bali-Nusa Tenggara1 ProjectUS$ 278.1 Million
Java:6 ProjectsUS$ 10.7 Billion
16 PotentialPPP Projects(20%)
16 PotentialPPP Projects(20%)
Funding sources for infrastructure projects plannedfor groundbreaking in 2017:
Funding sources for infrastructure projects plannedfor groundbreaking in 2017:
2017
40
Sumber: ISAAA 2011
3
30
60
Others
Others
Untapped
In percentage (%)Opportunity in Downstream Palm Oil Industry
The current global demand for biodiesel is92 mn tonnes, while total supply is only 33mn tonnes- untapped opportunity.
Indonesia
The current CPO national productivity inIndonesia is only 2,98 ton/ha while theproducivity potential in Indonesia is 7 ton/ha.
The existing palm oil industry isconcentrated in Sumatera, withinfollowing KPIs*
Investment in infrastructure is required tosupport the palm oil industry – investmentopportunity:
2,98
7
Current Productivity Productivity Potential
Current ProductivityProductivity Potential
Ton CPO/haOpportunity in Upstream Palm Oil Industry
GAP= 4,02 ton/ha
Source: Kementerian Pertanian RI, Pusat Data InfoSAWIT, 2010
Sei Mangkei (Medan,North Sumatera)
Dumai (Riau island)
Kampar (Riau island)
Lampung Timur
Bangka Barat(Bangka Belitung ild)
Muara Enim(South Sumatera)
Empat Lawang(South Sumatera)
Tanjung Api-Api (SouthSumatera)
Pasaman Barat(West Sumatera)
Solok Selatan(West Sumatera)
Ogan-Komeling Ilir(South Sumatera)
• Kuala Tanjung port - available forinvestment
• Dumai port expansion - govt funded• Belawan port expansion - govt fundedPort
• Pekanbaru – Kandis – Dumai toll road -available for investment
• Medan – Binjai toll road - available forinvestment
• Trans Sumatera - available forinvestment
Road
• PLTU Banjarsari 2 x 100 MW• PLTU Mulut Tambang 4x150 MW• South Sumatera 9 – Mine Mouth Coal
Fired Steam Power Plant (2 x 600MW)
• South Sumatera 10 – Mine MouthCoal Fired Steam Power Plant (1 x600 MW)
Energy**
Rokan Hulu-Hilir Siak(Riau island)
Singingi (Riau island)
Lingga (Riau island)
*Palm oil plantations are also available in Aceh,Bengkulu and Jambi provinces
**Available for investment
Indonesia offers huge investment opportunity –palm oil industry as an example (1/5)
41
Huge potential of Palm Oil Industry
4,5 4,5 4,8 5,5 5,7 5,95,2 5,4 5,6 5,8 6 6,2
2,8 3,7 4,86,1 6,4 6,6
0
20
2006 2007 2008 2009 2010E 2011E
EU25CinaIndia
In million tonPalm Oil Demand from Main Importer Countries is Continue to Rise
Sumber: Oil World, Reuters, 2010
Palm Oil Outlook Positive Worldwide:China, EU and India respectively are the
main consumers of palm oil accountable for80% of world’s demand. Rising population
and increasing income, world experiencesan increase in demand for. palm oil & its
derivats
Consumption Growth > 7% CAGR:Consumption growth of palm oil worldwide forthe last 7 years have been increased and isexpected to rise as the price of oil continues toincrease. Such growth is also on account of agrowing population as well as the rising demandfor alternative energy sources – biodiesel.
19
10 97
0
20
India Cina Indonesia Eropa
% CAGR
in %Consumption Growth of Palm Oil, 2005-2009 CAGR
Sumber: Oil World, Reuters, 2010
The demand for palm oil will likely remain strong and research and development work is being done inIndonesia.The availability of land in Indonesia, coupled with recent years of high seed sales, record energyprices, and high vegetable oil prices are factors that will result in Indonesia continuing to lead the world inpalm oil production for years to come.
42
With coal production of approximately 300million tons/ year, Indonesia has coalreserves for the long term:
The existing coal industry isconcentrated in following KPI*(select sample):
Investment in infrastructure is required to support thecoal industry – investment opportunity:
Energy
PLTU Mulut Tambang (4x150MW) (IDR7.5 trillion)
PLTU Banjarsari (2x100MW) (IDR 2.8trillion)
East Kalimantan Coal Fired Steam PowerPlant (2x100MW)
KPI Kotabaru Location: South Kalimantan
KPI Kutai Timur Location: East Kalimantan
KPI Tanah Laut Location: South Kalimantan
KPI Tanah Bumbu Location: South Kalimantan
KPI Muara Enim Location: Pendopo, South
Sumatera
KPI Tanjung Api-Api, Tanjung Carat Location: South Sumatera
KPI Palembang Location: South Sumatera
Port Maloy port, East Kalimantan (IDR 4.8
trillion) –available for investment
From 1996 to 2010, Indonesia’s coal production grew by an average of 14.8% per year with an average growth of coal exports at 15.1% peryear. The level of domestic coal consumption experienced an average growth of 13.8% per year within the period of 1996-2010.
Railway
Coal Railway South Sumatera – Lampung(IDR 802 billion) – available for investment
Coal Railway Puruk Cahu – Bangkuang,Central Kalimantan (IDR 15 trillion) –available for investment
Coal Railway Puruk Cahu – Tanjung Isuy,Central Kalimantan (IDR 20.3 trillion) –available for investment
*Source: Indonesia Coal Mining Association (2010), Directorate General Mineral (Ministry of Energy and Mineral Resources)
Export
265
Production
325
Reserves
21,000
Resources
104,800
Coal profile in Indonesia, 2010 (Mn Tons)
52.4
0.5
51.9
Others
104.8
Sumatera Kalimantan Total
Coal resources in Indonesia, 2009 (in Bn Tons)
43
Indonesia offers huge investment –opportunity coal industry as an example (2/5)
The current production capacity for bauxiteprocessing is only ~2% of total bauxitepotential in Indonesia:
The existing bauxite extraction isconcentrated in following KPI*(select sample):
Investment in infrastructure is required to supportAlluminum Smelter – investment opportunity:
Port
Teluk Melano port, West Kalimantan - govtfunded
Pontianak port improvement - govt funded New port development in Pontianak -
available for investment
Energy
PLTU Parit Baru (2x50 MW) WestKalimantan – available for investment
East Kalimantan Coal Fired Steam PowerPlant (2x100MW – available forinvestment
Other Pontianak Water Supply – govt funded
KPI Ketapang Location: West
Kalimantan
KPI Kabupaten Sanggau Location: West
Kalimantan
KPI Mempawah Location: West
Kalimantan
Private sector investment opportunities in bauxite industry are massive – for example processingbauxite into alumina and aluminum. In addition, there are also major investment opportunities forinfrastructure provision for these mines – such as private rail or private ports.
Indonesia Bauxite Profile, 2010 (tons)*
Road
New road development in KPI Ketapang -govt funded
Tayan bridge development - govt funded
*Source: Ministry of Energy and Mineral Resources
207,932
NationalBauxite
Resources,551.961.397
, 74%
NationalBauxite
Reserves,179.503.546
, 24%
NationalBauxite
Production,15.490.357 ,
2%
Indonesia offers huge investment opportunity-Aluminium Smelter as an example (3/5)
44
Indonesia offers huge investment opportunity –nickel industry as an example (4/5)The current production capacity forNickel processing is 462,000 tonsfrom 3,900,000 tons of total Nickelpotential in Indonesia
The existing Nickel industryis concentrated in followingKPI:
Investment in infrastructure is required tosupport the nickel industry – investmentopportunity:
89%
11%
National Nickel Reserves
Recent National Nickel Production Seaport
• Bitung Port Expansion(IDR 414 Billion)
• Makassar Port Expansion(IDR 2.2 Trillion)
Road
• Manado – Minut – Bitung tollroad
• Access Road to supportNickel Industry from NorthKolaka to Pomala Port IDR79.4 billion
• Access Road to supportNickel Industry from NorthKolaka to Lasususa Port
KPI Palopo Location: Luwu Timur, South Sulawesi Main Economic Activity in KPI: Nickel
mining and processing
KPI Kolaka Location: Kolaka, South East Sulawesi Main Economic Activity in KPI: Nickel
Mining
KPI Konawe Utara Location: Mandiodo, South East
Sulawesi Main Economic Activitty in KPI: Nickel
Smeltering – Pig Iron
KPI Morowali Location: Bahodopi, Central Sulawesi Main Economic Activity in KPI: Nickel
Mining, Preparation and Smeltering(Pig Iron)
Source: United States Geological Survey Energy• North Sulawesi Coal
Fired Steam Power Plant(2x55 MW) 45
Kg/c
apita
/yea
r
With the govt target to reach the steelconsumption of 100kg/capita/year by 2025, thegovt commits to boost the downstream steelindustry:
The existing steel industry isconcentrated in following KPI:
Investment in infrastructure is required to supportthe steel industry – investment opportunity:
400
85
84
0
1721
0
3229
0
10
20
30
40
50
60
70
80
90
Kalimantan Sulawesi OthersPapuaSumatera Maluku
Primary iron deposit
Laterite iron deposit
Iron deposit in Indonesia (%)
Source: Min of Industry, 2007; Indonesian Commercial Newsletter Vol 57, June 2008
Steel consumption, 2008
Port
Development of Tanah Grogotport (IDR 163 billion) – govtfunded
Expansion of Batulicin port (IDR10 trillion) – govt funded
Energy PLTA Kusan 67 MW (IDR 860
billion) – available for investment
KPI Kotabaru Location: Kotabaru, South
Kalimantan
KPI Kotawaringin Barat Location: Central
Kalimantan
KPI Tanah Laut Location: Tanah Laut,
South Kalimantan
KPI Tanah Bumbu Location: Tanah Bumbu,
South Kalimantan
KPI Cilegon Location: Banten
Road
Lingkar Selatan Cilegon road(IDR 300 billion) – govt funded
Road development in TanahBumbu area – private sectorfunded
WaterSupply
Batu Licin Water Supply (IDR200 billion) – available forinvestment
Indonesia offers huge investment opportunity –steel industry as an example (5/5)
46
4. Debottlenecking Initiatives andPriority Projects Screening
4. Debottlenecking Initiatives andPriority Projects Screening
KP3EI
Committee for Acceleration and Expansion of Indonesia Economic Development 2011-2025
48
“Selecting infrastructure projectswith estimated strategic
contribution for acceleration andexpansion of economic growth”
* Urgency of the project, Readiness Level, Socio-economic Effects, Environmental Effects **considering diversification of corridor and sector, synergy with principles and targets MP3EI, as well ascost-benefit analysis of project delay.
Phase 1Project Identification: Earlyidentification of projects based onseveral criteria: construction has notstarted yet, no maintenance/reparationproject or goods procurement,investment value > US$ 50 Million.
Top 200 InfraProjects
Recommendation from Line Ministries:data collection and initial discussions onprojects with KP3EI Secretariat, Bappenas,MoF, BPN and related Line Ministriesbased on the agreed criteria.*
Phase 2
78 SelectedProjects
Phase 3Technical Committee Discussion: In-depth discussion on strategic value ofselected projects using helicopter viewperspective.**56 Priority
Projects
PrioritizationCriteria
PrioritizationCriteria
ScoringSystemScoringSystem
ScoreJustificatio
n
ScoreJustificatio
n
Summary ofOutcome Priorities
Summary ofOutcome Priorities
FinalResultFinal
ResultWeighting CriteriaWeighting Criteria
The prioritization process follows a three-step methodology based oninternational best practice and involves stakeholders throughout the process
48
49
Production centers which have the potential and the high level of investment-readiness require governmentcommitment in the provision of infrastructure to reduce logistics cost and accelerate economic growth...Production centers which have the potential and the high level of investment-readiness require governmentcommitment in the provision of infrastructure to reduce logistics cost and accelerate economic growth...
1. Development ofdownstream palm oilindustry in SEZ* Sei MangkeiPT Unilever Indonesia and PTFerrostaal are investing US$1billion.
6. Karawang Industrial AreaThere are more than 7 industrial areasexporting more than 65% of Indonesia’stotal export.L’Oreal has invested USD 1 billion,automotive companies are building plantswith US$1.5 Billion investment value.
7. Tourism industry in Bali and LombokNumber of tourists who visited Lombok rose 35%per year from 2010 to 2012. Mandalika haspotential to attract US$ 300 Million investment andSenggigi is already attracting foreign hospitalitycompanies.
3. Coal Industry in Central KalimantanPotentially produce USD 4.5 billion/yearworth of coal, current production is aroundUSD 750 million
11
66
2288
7.7.
445. Coal industry in SouthSumatera39% of national coal reserves islocated in the southern part ofSumatera, with an estimatedamount of 18.13 billion tons.
Production Center
SLOC & ALKI Strategic Sea Lines
55
8. Sorong as the gateway for PapuaSorong, which is located in thenorthern part of Papua, becomes thecenter of activity and gateway ofPapua.
33
4. Bitung and Palu Investment-Focused AreasPotentially attract investment of US$ 170Million (Palu) and US$ 174 Million (Bitung) inchocolate, rattan, sea grass, coconut, fisheryand manufacturing industries.
2. Downstream palm oilindustry in East KalimantanCurrently there are 200companies and 42 oil palmplantations in East KalimantanCPO industry.
The selection of priority projects is based on the immediate needs of economicdevelopment centers and investment-readiness of downstream industries
* Special Economic Zone 49
50
The Government will fund 24 of the most urgently needed priority infrastructureprojects to ensure accelerated delivery (as early as 2014)
Kuala Tanjung Port*(US$ 600M) Palu – Parigi Rass
(US$ 100M)
Trans SumateraHigh Grade Highway(US$ 6180.1M)
Coal-Fired PowerPlant PangkalanSusu 2 x 200 MW(US$ 417.2M)
Coal-Fired PowerPlant Indramayu 2 x1000 MW(US$ 2044.5M)
Lembar BayPort (US$ 39M)
Enarotali – Tiom Road(US$ 168M)
Coal-Fired PowerPlant Asamasam 2x 100 MW (US$320M)
Coal-Fired Power PlantTakalar 2 x 100 MW(US$ 280M)
Balang IslandBridge (S157.2M)
Makassar – Pare-Pare Railway(US$ 600M)
Medan – KualanamuDouble Track Railway(US$ 78.8M)
Water SupplyJatiluhur (US$ 189M)
Sorong Port(US$ 160.9M)
Access Road toPurwakartaIndustrial Area (US$68.8M)
Dam Kolhua &Dam Raknamo(US$ 100M)
Notes: Exchange rate IDR/US$= 10.000; Palapa Ring (US$ 280M) is a priority project but not displayed (multi-corridor scale project)*) development of existing port
Following the 3 pillars of MP3EI, the entire process of selecting priority infrastructure projects is based on: Urgency of the project; ease of implementation (readiness level); social, economic, and environmental effects;• Supporting Production Centers or Investment-Focused Areas with strategic value, coupled with a high level of investment readiness, for example: Sei Mangkei,
Maloy, Bitung, Karawang. Project's contribution to strengthening National Connectivity
• Solo – Madiun (US$ 223.7 M)• Madiun Surabaya (US$415 M)
Double Track Railway
50
51
Another 32 projects (US$29 Billion in total) located in the main economic growthcenters are selected as priority projects to be offered under PPP-scheme (2017)
Following the 3 pillars of MP3EI, the entire process of selecting priority infrastructure projects is based on: Urgency of the project; ease of implementation (readiness level); social, economic, and environmental effects;• Supporting Production Centers or Investment-Focused Areas with strategic value, coupled with a high level of investment readiness, for example: Sei Mangkei,
Maloy, Bitung, Karawang. Project's contribution to strengthening National Connectivity
Note: Exchange rate IDR/US$= 10.000*) expansion of current Padang Water Supply facilities
International HubKuala Tanjung(US$ 2700M)
Maloy CPO Port(US$178M)
International HubBitung Port(US$ 3100M)
Manado – BitungTollroad(US$ 341.2M)
Cilamaya Port &Access Road(US$ 4034.5M)
Makassar NewPort (US$ 360M)
Karawang Airport(US$ 3619.9M)
Puruk CahuBangkuangRailway(US$2200M)
Balikpapan –Samarinda TollRoad(US$1217.9M)
Panimbang-Serang TollRoad (US$ 1150.7)
Water Supply SouthBali (US$ 272.7M)
• Jakarta Wastewater Disposal System(US$ 431.9M)
• Pondok Gede Water Supply (US$ 20M)• Tanjung Priok Access Road (US$
612.5)
• Umbulan Water Supply(US$ 204.2M)• Lamongan Regency
Water Supply (US$ 16.7M)
Padang Water Supply*(US$ 28M)
East Agam &Bukittinggi WaterSupply (US$ 17M)
• Batam Municipal SolidWaste Disposal (US$ 100M)
• Tanjung Sauh Port inBatam (US$ 756M, Phase I)
Coal-Fired PowerPlant Karama 4 x112.5 MW(US$ 1329M)
Consolidated UrbanDevelopment in BandaAceh (US$ 21M)
• Karya Jaya Integrated TerminalPalembang (US$ 75M)
• Monorail South Sumatera(US$ 515.5M)
Pandaan-Malang TollRoad (US$ 420M)
Solid WasteDisposal &Treatment Surakarta((US$ 30M)
• Pasir Koja-Soreang Toll Road (US$ 210M)• Cisumdawu Toll Road (US$ 1015.8M)• Integrated Railway Terminal Gedebage
(US$ 133M)• Kertajati Airport (US$ 112.5M)
Revitalization of Rail Station &Pedestrianization Malioboro(US$ 870M)
Muara Enim-Pulau BaaiRailway (US$ 3000M)
51
Project/ Investor Bottleneck issues
▪ Sei MangkeiIndustrial Estate
▪ Delay in land acquisitionprocess due to delay in theissuance of Provincial SpatialPlanning State Law (PerdaRTRWP)
▪ Infrastructure availability intime of the investment(Kuala Tanjung seaportexpansion, road, railway andKuala Namu airport)
PTPN III
Debottlenecking effort and result▪ Enhance coordination between line
ministries/agencies, other governmententities and stakeholders, whichresulted in acceleration of RTRWfinalization
▪ KP3EI ensures additional budget isprovided and allocated to supportinfrastructure projects implementationin timely manner
Samples of top down initiatives to debottleneck MP3EIEconomic Sectors Development facilitated by KP3EI (1)Samples of top down initiatives to debottleneck MP3EIEconomic Sectors Development facilitated by KP3EI (1)
▪ Bangko TengahRailway for coaltransportation
▪ Railway area overlaps withforest area
▪ Delay in issuance of IPPKH(Forest land area use permit)
▪ Coordination is conducted up toMinistrial level, resulted in clearance ofdispute settlement
▪ KP3EI facilitated the provision of ~9.881ha forest area to be used by PT BukitAsam
52
Project/ Investor Bottleneck issues
▪ ANTAMInvestment FocusedArea of North Konawe
▪ Mining Permit (Ijin UsahaPertambangan) unilaterallyrepealed by Bupati of NorthKonawe
▪ Mining Permit overlappedwith PT Duta Perkasa IntiMinerals
Debottlenecking effort and result▪ KP3EI facilitated a meeting with Bupati
of North Konawe for acceleratedmining permit issuance
▪ The result is still awaiting the re-issuance of PT Antam’s Mining Permitfrom Bupati of North Konawe
Samples of top down initiatives to debottleneck MP3EIEconomic Sectors Development facilitated by KP3EI (2)Samples of top down initiatives to debottleneck MP3EIEconomic Sectors Development facilitated by KP3EI (2)
▪ PT Vale IndonesiaInvestment Focused Areaof Morowali and Palopo
▪ Delays in the issuance ofIPPKH by the Ministry ofForestry, because therecommendation letter fromBupati of Luwu and fromGovernor of CenterSulawesi is not yet beingsent to Ministry of Forest
▪ KP3EI facilitated the meeting with PTSCM and PT Vale regarding the MiningPermit issues
▪ The resul was the publication of IPPKHfrom Ministry of Forestry to PT ValeIndonesia. Yet, on the website ofMinistry of Forestry, the IPPKH are stillon process.
53
Project/ Investor Bottleneck issues Debottlenecking effort and result
▪ Jakarta MRT ▪ Jakarta MRT project hasbeen discussed for ~20years with no significantprogress, while financialloss due to traffic hasreached IDR 12.8 T in2012
▪ GOI encouraged Local Government toproceed with the plan as per initialtimeline
▪ The recent development is that CentralGovernment accelerating their supportand plans to increase CentralGovernment funding portion from thecurrent 42% to >48% for MRT project
54
▪ Central Java IPP ▪ Location permit has notbeen issued by localgovernment due to differentinterpretations of the powerplant
▪ Requires acceleration forland acquisition andcertification
▪ The location permit that was stuck for 20months was unlocked in 3 monthsfollowing KP3EI involvement
▪ KP3EI continues support of de-bottlenecking for land acquisition processto reach financial close by Oct 2013
Samples of top down initiatives to debottleneck MP3EIEconomic Sectors Development facilitated by KP3EI (3)Samples of top down initiatives to debottleneck MP3EIEconomic Sectors Development facilitated by KP3EI (3)
Improving Investment Climate
44 regulations have been completed, 16 regulations are being revised, 28 regulations to be revised.
Revisions, corrections, and improvement made on the regulation comprise of : Law(UU); Government Regulation; Presidential Decree; Draft of Law, Draft ofGovernment Regulation; and Ministerial Decree. Some are sectors , others are cross-sectoral or regional basis.
As of April 2013
55
56
No. (Policy Substance) InstrumentA. (Fixing current balance account and maintaining exchange rate)
1 (Reducing oil and gas import – increasing biodiesel portion in diesel fuel by10% as mandatory requirement)
(Min of Energy and MineralResources Decree)
2 (Increasing export by relaxing the mineral export procedure)(Min of Energy and MineralResources DecreeCircularNotes)
3 (Tight Fiscal Policy by applying additional VAT on Luxury Goods for CBU carand branded products) (Goverment regulation)
B. (Maintain Economic Growth and Purchasing Power)1 (Guidence on the Minimum Wage Policy) (Presidential Instruction)
2 (Classification of labor intensive and medium industries) (Min of Industry Decree)
3 (Reducing the income tax rate of article 25 and postpoing the payment ofincome tax of article 29 for selected industrial tax payer) (Min of Finance Decree)
4(Relaxing regulation for Bonded Zone)a. (Up to 50% of Domestic Sales)b. (Above 50% of Domestic Sales can be provided by DG Custom on behalf of
MOF and based on the recommendation from related ministries)(Min of Finance Decree)
(Stabilization Policy and Economic Growth Package)
56
57
NO. (Policy Substance) (Instrument)B. (Maintain Economic Growth and Purchasing Power)
5 (Waiver facility on VAT for imported books) (Gov Reg and MoF Reg)
6(Fiscal Relaxation – Reducing and/or Waiver on VAT for LuxuryGoods which are no longer considered as luxuries good e.g.Electronics (Television, Refrigerator, Air Conditioner, Water Heater,Camera and Sanitary Equipment)
(Gov Reg and MoF Reg)
C. (Maintaining inflation rate)
1 Deregulate trading rules for meat and horticultural products fromusing quantity based to references price mechanism
(Min of Trade and Min of AgricultureReg)
D. (Accelerating Investment)1 Reduction of Negative Investment List – DNI (Presidential Decree)
2
(License simplification)1. (Reducing number and type of license)2. (Grouping similar license)3. (For the 1st stage, it will be applied in mainstream sector of
mineral and gas by reducing 69 license to 8 (similar group)license)
(SLA for implementation of licensesimplification)
(Stabilization Policy and Economic Growth Package)
57
58
No. (Policy Substance) (Instrument)D. (Accelerating Investment)
3 (Debottleneck obstacles in strategic investment projects)a. (Finalize renegosiation for Contract of Works - Kontrak Karya
and PKP2B)
(Revision of Gov Reg no 24/2012 onDivestation, Mainstreaming on MineralSector) and Gov Reg no 9/2012 onRoyalty
b. (Finalize financial closing of PLTU Batang 2x1000 MW) (Pres Reg)
(Stabilization Policy and Economic Growth Package)
58
REPUBLIC Of INDONESIACOORDINATING MINISTRY FOR ECONOMIC AFFAIRS
Eddy SatriyaHead of International Cooperation Division,
Secretariat of KP3EI
Deputy Assistant for ICT and Utility
Jalan Medan Merdeka Barat No. 7,Jakarta Pusat - Indonesia
Phone: +62 21 34832611; Fax: +62 21 34832609email: [email protected] @EddySatriya
Recent publications are available on:eddysatriya.wordpress.com
kolom.pacific.net.id
Eddy Satriya• 1989 :Graduated from Bandung Institute of Technology
(Telecommunication Engineering)• 1997 :Graduated from University of Connecticut (MA in Economics)• 1989-90: Program Management Consultancy (PMC-IV) for
Telecommunication Development• 1990-2005: Working in Bappenas (The National Development Planning
Agency).• 1995 : Secretary to Board of Commissioners of PT.Telkomsel• 1997- present: Visiting Lecturer in University of Indonesia, University of
Pelita Harapan, and ITB• 2002-present : Actively writes various article and column in national
papers and magazines.• 2005 (Dec)-present: Working in Coordinating Ministry for
Economics Affairs• 2011 - Present: Head of International Cooperation Division,
Secretariat of KP3EI
Contact:[email protected]
62.21.3511466 – t
62.21.3511464 – f