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Table of Contents
Table of Contents
i
Acknowledgementii
Chapter 1 Committee for Acceleration of Priority Infrastructure Delivery1
Chapter 2 Progress of Infrastructure Development in Indonesia7
Chapter 3 Achievement of KPPIP
19
Chapter 4 Latest Updates on KPPIP Priority Projects
30
Chapter 5 KPPIP’s Plan for the Future
101
Glossary108
List of Figures
KPPIP’s Report of August 2015 – December 2015
111
i
FOREWORD
As a country grows, the growth is inevitably reflected in its peoples’ changing needs, and such a change
correlates with demand for infrastructure, ranging from fundamental infrastructure such as the availability
of clean water to construction of hub ports that play a vital role in improving the country’s domestic and
international connectivity.
following the issuance of Presidential Regulation and Presidential Instruction on national strategic projects,
KPPIP was given additional responsibility to safeguard the delivery of 225 projects and construction of the
selected power plants of 35,000 MW, and conducted evaluation on the proposal for future national strategic
projects.
Aside from such a change, a nation’s economic growth is also closely related to the development of
infrastructure. Building appropriate and effective infrastructure offers significant multiplier effects ranging
from employment of manpower for construction process until operation, an increase in investment by both
domestic and foreign investors to an improved competitiveness. All the above-mentioned matters are the
contributing factors in economic growth.
To ensure an effective project monitoring, KPPIP built a monitoring system using integrated information
technology for the use of KPPIP and other relevant parties in the second semester of 2015. The system
provides a dashboard for decision-making and may be used to monitor the progress of a project, reduce
potential obstacles, and formulate concrete and accountable action plans. KPPIP plans to introduce the
system to relevant stakeholders to ensure the maximum use of the facilities by related parties.
Bearing the aforementioned issues in mind, the Government of indonesia places infrastructure as one of the
major work priorities. This decision is evidenced by establishing and strengthening Committee for Accelaration
of Priority Infrastructure Delivery (KPPIP) as one form of the said strategies.
In spite of KPPIP’s success in achieving a number of milestones in project acceleration during the second
semester of 2015, we are fully aware of the fact that more improvement and strengthening are still needed to
improve the infrastructure.
In the second semester of 2015, KPPIP conducted institutional strengthening for the purpose of carrying out
the assigned duties. KPPIP’s Project Management Office (PMO), which has become one of the key stimulators
to support the execution of KPPIP’s duties, was equipped with a program director and sector directors, each
having professional experiences in the sector led. These directors have background knowledge in various
infrastructural sectors and are experienced in the management of infrastructure project with high level of
complexity.
By issuing KPPIP’s report at the end of 2015, we are hopeful that all parties become more familiar and
supportive to KPPIP. In a spirit of acceleration, KPPIP calls for all relevant parties to put in joint efforts to
realize this dream.
In order to enhance its legal standing, Regulation of the Minister of Economic Affairs No. 12 of 2015 on the
Acceleration in Provision of Priority Infrastructure was issued in December 2015. This Regulation of the Minister
of Economic Affairs provides operational foundation for KPPIP by officially deciding 30 priority projects of
KPPIP’s as the first set of works on the list needed to be done in the future. In its implementation, KPPIP has
produced various facilities and budgeting support in order to maintain the quality of the project preparation
phase and the punctuality of the projects overall progress. This will lead to the projects increased acceptance
by the market.
Luky Eko Wuryanto
Deputy for Coordination of Infrastructure and Regional Development /
as the Chairperson of KPPIP Implementation Team
In an attempt to perform its duties effectively, KPPIP also assembled a number of working teams with
duties specific to each team, namely the Working Team for Acceleration in Electric Infrastructure Provision,
Working Team for Acceleration in Bontang Refinery Construction, and Working Team for Acceleration in Land
Procurement.
In addition to the key mandate stipulated in Presidential Regulation No 75 of 2014, KPPIP plays an important
role in formulating Presidential Regulation No. 3 of 2016 and Presidential Instruction No. 1 of 2016 in the
second semester of 2015, where KPPIP selected projects to be included within the national strategic projects
and was later contained in the amendment to Presidential Regulation No. 3 of 2016. As it develops, in particular
ii
iii
COMMITTEE FOR
ACCELERATION OF PRIORITY
INFRASTRUCTURE DELIVERY
KPPIP’s Report for August 2015 – December 2015
1
COMMITTEE
FOR ACCELERATION OF PRIORITY
INFRASTRUCTURE DELIVERY
Infrastructure provision in Indonesia often faces obstacles due to the lack of coordination between various stakeholders
involved, namely the Government (ministries, institutions, regional governments, SOEs/ROEs) and the private sector.
Such a large range of stakeholders, each having its own objectives and responsibilities, has the potential to cause
delays to the implementation of infrastructure projects. Therefore, the establishment of a committee that can work across
ministries and institutions will facilitate and assist the Project Owner in preparing and performing the development of
the project.
The Committee for Acceleration of Priority Infrastructure Delivery (KPPIP) was established with the main objective of
becoming a coordinating unit in decision-making processes to encourage settlement of issues arising from the lack of
effective coordination between the various stakeholders. KPPIP acts as the point of contact to facilitate coordination in
debottlenecking efforts for National Strategic Projects and Priority Projects.
KPPIP was formed by revitalizing KKPPI (National Committee for the Acceleration of Infrastructure Provision), which was
considered ineffective for several reasons such as lack of decision-making authority, limited roles at all stages of the
projects starting from the design stage until the commencement of the construction, inability to provide incentives or
disincentives in order to encourage projects acceleration, and an organizational structure that was too large that often
caused ardous decision-making process. Taking such limitations into consideration, Presidential Regulation No. 75 of
2014 on Acceleration in Priority Infrastructure Delivery was issued for the purpose of establishing KPPIP.
Led by the Coordinating Minister for Economic Affairs as the Chairperson, the Committee consists of the Minister of
Finance, Minister of PPN (National Development Planning)/Head of Bappenas (National Development Planning Agency),
and Minister of Agrarian Affairs and Spatial Planning. Due to the change of the structure of Kabinet Kerja (the currently
ruling cabinet) in October 2014, a change in the organization structure to include the Coordinating Minister for Maritime
Affairs and Minister of the Environment and Forestry in the membership is currently under consideration.
According to the mandates as provided under Presidential Regulation No. 75 of 2014, KPPIP will provide support for
the projects selected as priority projects in line with the criteria established by KPPIP. For such priority projects, KPPIP
will ensure that the projects are prepared in accordance with quality standards it has established and will control the
steps taken for problem resolution. Furthermore, KPPIP will apply incentive/disincentive schemes to follow-up project
monitoring results so that all relevant parties are encouraged to accelerate the delivery of the priority projects. Besides
that, KPPIP also has a duty to expand the capacity of the Government Contracting Agencies (GCAs) to ensure their
capability for providing the projects as well as a duty to coordinate issuance of regulations and policies related to
infrastructure. The chart below shows a brief description of the roles and functions of KPPIP derived from the objective
of its establishment.
KPPIP Report Agustus 2014 - Desember 2015
2
3
6 MAIN DUTIES OF KPPIP AS ASSIGNED IN PRESIDENTIAL REGULATION
NO. 75 OF 2014
1
Top Down Project
(proposed by the
President/Vice
President)
Application of quality standard for Pre-Feasibility
Study (OBC) and Making Revision/Re-Doing if
required (3-5 months)
Bottom-Up Project (proposed
by Ministry/Gov. Agency/Local
Government)
2
Decision on the List of Priority Projects
Decision on funding scheme & source of
funds for projects determined as priority
projects
APBN
Coordination between
PJP and Ministry of
PPN related to source
of fund (APBN, APBD,
PHLN)
3
Assignment to SOE
(BUMN)
Is aimed at accelerating
the implementation
and utilization of SOE’s
financial capacity
PPP Strategic Funding
PPP Unit at the Ministry
of Finance to coordinate
preparation for Final
Business Case (FBC) and
transaction advisory for
the implemenntation of
PPP projects (involving
internationally reputable
consultants)
In line with the development of economic policies, the roles of KPPIP are in adjustment to these developments. KPPIP
has been entrusted with selecting National Strategic Projects (PSN), which have been given privileges and accelerating
facilities as stipulated by Presidential Regulation No. 3 of 2016 on Acceleration of the Implementation of National
Strategic Projects. From the PSN list of projects, KPPIP selected some projects to be put on the list of priority projects.
In 2015, KPPIP finalized various preparations for the operation, establishment and image building of the committee,
which among others covered:
Establishment and operation of various Working Teams (Tim Kerja1) dan Project Management Offices (PMO);
Finalization of the List of Priority Projects for 2015 – 2019 as stipulated by Coordinating Minister for Economic
Affairs Regulation (Permenko) No. 12 of 2015;
Provision of facility to prepare Pre-Feasibility Study, Value for Money, and AMDAL Study for the selected
Priority Projects;
Preparations for and establishment of Standard Operating Procedure (SOP) and mechanisms for monitoring
and debottlenecking;
Actual acceleration in priority projects as elaborated further herein;
Mapping of improvements to be made to regulations on infrastructure;
Development of an IT system for the purpose of project management and improvements in decision-making
quality.
By having completed the operationalization of the Committee in 2015, KPPIP is expected to be able to accelerate the
accomplishment of the tasks as mandated by Presidential Regulation No. 75 of 2014. In order to achieve the target for
2016, KPPIP will push for financial closure of 2 to 4 priority projects, establish all Working Teams required, and ensure
that the IT system is fully operational by the end of the 1st Quarter for the use of all stakeholders. It is expected that all of
the endeavors will encourage the development of infrastructure urgently required to improve the economy of Indonesia.
OUTPUT FROM KPPIP
List of Priority Projects
approved by all parties
Action Plans with target
to be achieved along
with incentives and
disincentives
4
5
Monitoring and debottlenecking
KPPIP assists in the action plan
and conduct monitoring and
debottlennecking
Mapping of strategy for and
policy on infrastructure
Service Level
Agreement (SLA) which
is binding
6
Facilitating capacity
development of apparatus
and institutions related to
priority infrastructure
The Working Team for Acceleration of Electricity Infrastructure Provision (UP3KN) established under Coordinating Minister for Economic
Affairs Decree as the Chairperson of KPPIP No. 129 of 2015 and the Working Team for Acceleration of Bontang Oil Refinery Development
formed under Coordinating Minister for Economic Affairs Decree as the Chairperrson of KPPIP No. 159 of 2015.
1
Figure 1: Duties and Mandates of KPPIP in accordance with Presidential Regulation No. 75 of 2014
4
5
PROGRESS
OF INFRASTRUCTURE
DEVELOPMENT
IN INDONESIA
7
PROGRESS OF INFRASTRUCTURE DEVELOPMENT IN INDONESIA
Indonesian economic growth at 4.73 per cent as of September 2015 did not live up to expectations particularly because
Indonesia needs to achieve a growth rate of 7 per cent at a minimum to be considered as a developed country in 2025.
In the spirit of acceleration, the Government of Indonesia has made every endeavor to boost investment in various
sectors related to infrastructure. Improvements in regulatory, fiscal, and institutional aspects have been made to spur the
achievement of priority projects milestones.
Provision of infrastructure in Indonesia is sluggish because of obstacles encountered at various project stages from the
preparation to the execution. As a whole, poor coordination between stakeholders often delays the decision-making
process. At the preparation stage, problems usually arise as a result of low quality in project preparation and constraints
on allocation of funds. Similarly, projects are often hindered by problems in land acquisition resulting in delays in
achieving financial close of PPP projects. Furthermore, from a financial perspective, unavailability of fiscal support
caused by inconsistency or disagreement on equal risk sharing mechanism between the Government and Business
Entity is another constraint that often emerges. In addition to financial support, limitations on guarantee provided by the
Government for infrastructure projects also reduce interest in investment in Indonesia.
To overcome these obstacles, the Government has taken corrective measures in regulatory, fiscal, and institutional
aspects. In 2014 the Government formed the Committee for Acceleration of Priority Infrastructure Delivery (KPPIP)
charged with leading coordination to accelerate priority infrastructure and promoting improvement in quality of project
preparation by adopting OBC Guidelines. These corrective measures are further supported by the increasing capacity
of Ministry of National Development Planning (PPN)/National Development Agency (Bappenas) in providing facilities for
project preparation, and then continued by the PPP Unit at the Ministry of Finance that provides Project Development
Facility (PDF) and Transaction Advisory for PPP projects to increase investors’ interests in funding the projects.
Aside from the above-mentioned matters, in order to surmount obstacles to land procurement, Law No. 2 of 2012 has
also been issued for the purpose of accelerating land acquisition process for public interest. This particular regulation is
equipped with derivative regulations that have been revised as needed.
Considering that Government support is pivotal to attract investment of Business Entity, the Government has issued
regulations to provide Viability Gap Funding (VGF) and availabilty payment. To bolster this Government support,
guarantee provided by the Government has been expanded to allow State Owned Enterprises (SOE), that are assigned
with instructural development, to receive such a guarantee.
2
9
THEN
NOW
The lack of champion in final decision
making on strategic issues.
Poor quality of project preparation and limitations in funding allocation
Delays to projects due to lengthy process in
land acquisition.
KPPIP is formed to become coordinating center
for Project Implementing Agencies and to lead
debottlenecking effort.
Strengthened project preparation facility as :follows:
- Guidelines for OBC and Determination of Funding
Scheme in KPPIP.
- PDF/TA under PPP Unit, Ministry of Finance.
- Centralized facilities for preparation of regular
projects at Ministry.
A. DEVELOPMENT IN REGULATORY IMPROVEMENT TO SUPPORT
INFRASTRUCTURE PROJECTS
Below is the summary of regulatory corrective measures taken by the Government of Indonesia throughout
2015 for the purpose of creating favourable climate for the acceleration in infrastructure delivery in Indonesia:
Issuance of
Perpres No. 38 of
2015 on PPP
Issuance of Reg.
of MoAASP No.
6 of 2015 on land
acquisition
The Government has issued Law No. 2 of 2012 on
land acquisition and its derivative regulations to give
guarantee for land procurement to investors.
Mar 2015
Jan 2015
Unavailability of fiscal support and prudent
risk management between the Government
and Business Entity.
Limitations on the scope of provision of
Government guarantee.
Expanded fiscal support that can be given and expanded
role of Ministry of Finance:
.
- PPP Unit is formed under Ministry of Finance
- Issue regulations on Viability Gap Funding (MoF
Regulation No. 23 of 2013)
- Issue MoF Regulation No. 190 of 2015 on Availability
Payment
Perpres No. 82 of 2015 allows provision of Government
guarantee for State-Owned Enterprise (BUMN) to
obtain direct lending from Financial Institutions and/or
receive mandate to build infrastructrure as contained in
Presidential Regulation.
Even though tha above-mentioned corrective measures have been taken by adopting partial approach, the Government has been working
on a holistic improvement that reaches all aspect. In the future, the Government of Indonesia shall put forth political courage, consistency
in implementing policies that have been formulated, and the enhancement of a sense of urgency in infrastructure provision for the public.
Feb 2015
Apr 2015
Issuance of Perpres
No. 82 of 2015 on
Direct Lending
Issuance of
Perpres No. 38 of
2015 on PPP
Reg. of Head of LKPP
No. 19 of 2015 on
Procurement in PPP
Jul 2015
Sep 2015
1st Economic
Package (9 Sept)
2nd Economic
Package (29 Sept)
In 2015, the Government actively drew up and issued Economic Policy Packages encompassing improvement to policies
and regulations to boost Indonesia’s economy, including formulation of Presidential Regulation on National Strategic
Projects and Presidential Regulation on Development and Construction of Domestic Oil Refineries. From fiscal-policy
point of view, the Government has provided direct lending facility for State Owned Enterprises (SOE) and availability
payment facility taken from APBN (the State Budget), which are expected to improve the feasibility of the projects. In
addition, improvement on instutional aspects can be seen in the form of merger between PT Sarana Multi Infrastruktur
(PT SMI) and Government Center for Investment (Pusat Investasi Pemerintah) as well as an extension of a mandate
received by Indonesia Infrastructure Guarantee Fund (PT Penjaminan Infrastruktur Indonesia or PT PII).
Perpres No. 117
of 2015 on Trans
Sumatera
Issuance of
Perpres No. 146
of 2015 on The
Acceleration
of Oil Refinery
Development
Reg. of Mof No.
190 of 2015 on
Availability Payment
Figure 2: Increasing support for the development of Infrastructure in Indonesia
10
Jun 2015
Issuance of Perpres
No. 30 of 2015 on
land acquisition
Aug 2015
Although such measures taken by the Government have shown positive impacts on infrastructure delivery and Business
Entity interest in making investment, it is necessary to bear in mind that regulatory, fiscal, and institutional aspects are
still in need of further improvement.
May 2015
Nov 2015
Oct 2015
6th Economic
Package (6 Nov)
Dec 2015
3rd Economic
Package (7 Oct)
7th Economic
Package (4 Dec)
4th Economic
Package (15 Oct)
8th Economic
Package (22 Dec)
5th Economic
Package (21 Oct)
Regulations in finalization stage:
- Revision to Perpres No. 75 of 2014
- Perpres on the Development of Electricity Infrastructure
11
Economic Policy Packages
Presidential Regulation on National Strategic Projects (PSN)
The Government has released 8 Economic Policy Packages from 9 September 2015 to 21 December
2015. The 8 packages are aimed at reorganizing Indonesia’s regulations that hinder economic growth
(deregulation), restructuring Indonesian bureaucracy, and offering conveniences to create conducive
investment climate and strengthen Indonesia’s economy.
Despite the fact that the central government has issued conducive policies on infrastructure, in practice, their execution
often encounter obstacles. Considering that infrastructure delivery requires punctuality, additional facilities are needed to
accelerate completion of projects considered to have national strategic interests. Facilities provided range from privilege
or special treatment in applications for permits and non-permits, government procurement, land procurement, local
content, debottlenecking, spatial planning, and government guarantee.
Each Economic Policy Package and the expected positive impacts are as follows.
Economic Policy
Package
I
To deregulate 165 regulations, reduce bureaucracy in obtaining
licences related to land acquisition and other licences for
infrastructure projects, provide the legal certainty over land
ownership as well as clarify procedures for and completeness of
documents required in obtaining certain licenses.
II
To improve services in granting investment licences in industrial
areas, to cut the length of time needed to .apply for tax allowance
and tax holiday, and to remove value added tax for transportation
equipment.
III
.
To decrease fuel prices, gas prices, and basic electricity
rate for
industry and to simplify licensing process over land for the purpose
of investment.
IV
V
VI
VII
VIII
12
Key Policy
To reform the labor system as well as annual salary increase
mechanism and to implement policy on a larger-scale and
affordable Credits for Micro, Small and Medium Businesses.
To give incentives in the form of tax relief and revaluation of assets
of a company, state-owned enterprises (SOE), and individuals to
create a more transparent and efficient economic and investment
scheme.
To give incentives in the form of ease of investment process of
Special Economic Zone (SEZ), regulations on water resources,
and expedited licensing process (paperless).
To provide labor intensive industry, where income tax (PPh 21) is
paid by the company, with relief.
To adopt one map policy, to accelerate the development of
domestic oil refineries, and to give incentives to company dealing
with aircraft maintenance service.
This Presidential Regulation attaches a list of projects deserving the facility and privilege/special rights as stipulated
in the body of the regulations. KPPIP plays a role in selecting national strategic projects carried out in consultancy
with ministries/government institutions/regional government serving as project coordinators. The list comprises of 225
projects and 1 electricity program.
Presidential Regulation No. 3 of 2016 on Acceleration of the Implementation of National Strategic Projects and Presidential
Instruction No.6 of 2016 on Acceleration of National Strategic Projects were issued in January 2016.
Revision to Presidential Regulation on the Assignment to Hutama Karya for
the Development of Trans Sumatra Toll Road
Pursuant to Presidential Regulation No. 117 of 2015, which is a revision to Presidential Regulation No. 100 of 2014,
as many as 24 sections of toll road from Bakauheni to Banda Aceh will be built to accelerate the construction of
toll roads in Sumatera. The first stage of the construction puts priority on the construction of 8 toll road sections
including the 4 sections stated in Presidential Regulation No. 100 of 2014, namely Medan-Binjai, PalembangSimpang Indralaya, Pekanbaru-Dumai, and Bakauheni-Terbanggi Besar, and 4 additional sections, consisting
of Terbanggi Besar-Pematang Panggang, Pematang Panggang-Kayu Agung, Palembang-Tanjung Api-api, and
Kisaran-Tebing Tinggi sections. Prioritization for the development of the following sections will be decided by the
Minister of Public Works and Public Housing based on evaluation results.
The Government assigns PT Hutama Karya (Persero) for the aforementioned operation of Trans Sumatera toll road,
and this assignment encompasses funding, technical preparation, construction, operation, and maintenance with
a concession lasting for 40 years. In its implementation, the operation and maintenance of these toll road sections
are predicted to be finalized by the end of 2019 at the latest.
Presidential Regulation No. 146 of 2015 on Construction and Development
of Domestic Oil Refineries
As part of Economic Policy Package VIII and for the purpose of supporting KPPIP priority projects, namely
construction of domestic oil refineries, Presidential Regulation No.146 of 2015 on Construction and Development
of Domestic Oil Refineries has been issued.
This regulation serves as the guidelines for the implementation and acceleration measures that can be done if oil
refinery projects are to be carried out by the Government using PPP scheme or SOE assignment, and Business
Entities. In addition, Presidential Regulation also gives room to PT Pertamina to become Government Contracting
Agency (GCA) if the project adopts PPP scheme. This Presidential Regulation further dictates incentives that can
be given by the Government of Indonesia and parties acting as offtaker.
13
Support given by KPPIP for developing and revising regulations
Regulation of the Head of National Public Procurement Agency (LKPP) No.
19 on the Procedure for Procurement of Business Entity in Infrastructure
Delivery
Presidential Regulation No. 38 of 2015 on Public Private Partnership in Infrastructure Provision requires several
derivative regulations relating to availability payment and procurement of the implementing business entity to support
the implementation of PPP in Indonesia.
In accordance with Presidential Regulation No. 75 of 2014, KPPIP has a mandate to assist, facilitate, coordinate,
recommend amendment and/or issuance of new regulations for the purpose of accelerating infrastructure delivery,
including to resolve issues arising in infrastructure implementation. In line with the mandate given, KPPIP undertakes
several activities to make and revise regulations related to infrastructure delivery.
No.
Regulations
As a follow up, Head of LKPP Regulation no. 19 of 2015 on the Procedure for Procurement of Business Entity in
Infrastructure Delivery was issued in September 2015 governing the procurement of preparatory Business Entity and
implementing Business Entity for PPP projects.
In the implementing business entity procurement, the procurement is aimed to select a business entity to act as the
counterpart for the GCA to execute the PPP project. The selection itself can be made through a tender with prequalification or direct appointment. The latter can be made under certain conditions. By making direct appointment, it is
expected that tender failure can be mitigated and delivery process can be expedited.
Description
Trans-sectoral
1
Amendment to Presidential Regulation
No. 75 of 2014 on Acceleration of Priority
Infrastructure Provision
• Presidential Regulation No. 75 of 2014 has stipulated
KPPIP’s membership. Along with recent development,
there are other agencies that need to be included in
KPPIP, namely Coordinating Minister of Maritime Affairs
and Minister of Environment and Forestry.
•
In the procurement of the preparatory business entity, the procurement is intended to choose a business entity, institution,
national or international organization that is selected through a selection process or by consensus. The chosen entity is
then tasked to carry out supporting activities in order to prepare for the PPP transaction.
Additionally, operational strengthening of KPPIP in
procurement of goods and services is necessary, especially
to support the establishment of pool of consultants.
• In order to accommodate attempts at accelerating
provision of priority infrastructure, Perpres No. 75/2014
needs to be revised.
2
Head of KPPIP Decree to assemble Working
Team for Acceleration of Land Acquisition
• Even though Law No. 2 of 2012 has been issued, land
procurement remains the biggest problem that slows
down the execution of infrastructure projects. Obstacles
identified are:
(1) Information gap between Project Implementing
Agency and Ministry of Agrarian Affairs and Spatial
Planning concerning location and planning of land
procurement;
(2) Poor coordination among stakeholders when
obstacles to land procurement arise; and
(3) Lack of monitoring and synchronization in
transferring the Government’s/SOE’s/ROE’s land for
public use
• Consequently, KPPIP intends to form a Working Team for
Acceleration of Land Acquisition to solve the aforementioned
obstacles as well as to expand its capacity needed for the
acceleration.
3
14
Issuance of Presidential Regulation on
Acceleration in Electricity Infrastructure
Provision
•
Until 2019, the Government is planning to build power
plants with total capacity of 35,000 MW. All projects in
the Ten-Year Electricity Infrastructure Development Plan
(RUPTL), including projects both developed by PT PLN
itself and those under partnership with the private sector,
are contained in this Presidential Regulation.
15
B. DEVELOPMENT OF FISCAL POLICY
Additional Capital to PT Sarana Multi Infrastruktur (PT SMI)
Presidential Regulation No. 38 of 2015 on PPP provides legal basis for availability payment. Availability payment means
periodic payment is made by the GCA to the business entity for the availability of infrastructure that satisfies the quality
and criteria set in PPP contracts. Availability payment is expected to increase project feasibility to stimulate investors’
interest.
In December 2015, Ministry of Finance issued Minister of Finance Regulation No.232/PMK.06/2015 on the Shifting of
Government Investment at the Government Investment Center to Become State Capital Injection for the Limited Liability
Company PT. Sarana Multi Infrastruktur (PT SMI) which serves as the ground for capital injection of PT SMI in the amount
of Rp 18.4 trillion. Prior to receiving the additional capital, the state capital injection into PT SMI was limited to Rp 2
trillion.
In October 2015, Ministry of Finance issued Minister of Finance Regulation No. 190/PMK.08/2015 to manage the
mechanism of availability payment derived from the State Budget (APBN). This will be followed by, Minister of Home
Affairs regulation, which will regulate the mechanism of availability payment from the Regional Budget (APBD).
Government Guarantee for Direct Lending
Previously, project guarantees were focused merely on projects financed through PPP schemes or Government
Budget (APBN/APBD). However, the government has expanded its guarantee to projects receiving direct lending from
international financial institutions as has been governed under Presidential Regulation No. 82 of 2015.
With the existence of Minister of Finance Regulation No.189/PMK.08/2015, the scope of the projects eligible for such
guarantee has been broadened by including projects assigned to State-Owned Enterprises (SOE) under Presidential
Regulations or SOEs that are completely owned by the government.
Project Development Fund
At this moment, the implementation of PPP funding scheme is still limited due to the unavailability of expertise and
special funding as required for high quality project preparation needed for the success of PPP projects. Considering
the importance of PPP schemes to increase private sector investment in infrastructural development, the Ministry of
Finance has formed Directorate of Government Support and Infrastructure Financing Management (PPP Unit) to provide
technical support and funding as has been mandated in Presidential Regulation No. 75 of 2014. This facility is financed
by Project Development Fund governed in Minister of Finance Regulation No.265/PMK.08/2015.
16
C. INSTITUTIONAL DEVELOPMENT
Along with the State Capital Injection, PT SMI has expanded its role to become the center for infrastructure financing
in Indonesia with the capacity to fund development of infrastructure by State-Owned Enterprises (SOE), Regional
Government-Owned Enterprises (ROE), and Regional Governments.
Expansion of Facility of Indonesia Infrastructure Guarantee Fund (IIGF)
Government guarantee is one of the important factors to attract investment in projects. However, in the past, guarantee
can only be provided for projects under PPP scheme.
Through the issuance of Presidential Regulation No. 82 of 2015 on Central Government Guarantee for Infrastructure
Finance Using Direct Lending from International Financial Institutions to a State Owned Enterprise, the scope of projects
eligible for such guarantee is broadened. This guarantee can be provided for a SOEs that are wholly owned by the
Government. SOEs that has been given assignment under the Presidential Regulation is also provided with a guarantee.
As a result, the number of projects eligible for guarantee provided by IIGF is likely to increase.
Improvements and new initiatives in regulatory, fiscal, and institutional policies undertaken by the Government are
expected to be able to solve obstacles encountered in infrastructure provision so that decision on decisions made by
the central and regional government for acceleration can be executed.
17
18
ACHIEVEMENT OF KPPIP
19
ACHIEVEMENT OF KPPIP
In 2015 KPPIP made provisions for and conducted monitoring and debottlenecking of 22 priority projects with a a total
investment value of Rp 851 trillion, which was determined at the committee level and reported to the President by a
letter dated March 18, 2015. At the end of 2015 the number of projects increased to 30 priority projects as stipulated
in Regulation of the Coordinating Minister for Economic Affairs Regulation No. 12 of 2015 on the List of Priority
Infrastructures1.
Throughout the year 2015, KPPIP provided project preparation facilities for the preparation of Bontang Refinery, funded
a strategic study on Jakarta-Bandung High Speed Railway as well as VfM and AMDAL studies on Panimbang-Serang
Toll Road. Besides that, in order to ensure that the projects are implemented on schedule, KPPIP also facilitated
coordination meetings to resolve issues and discuss funding schemes for the priority projects.
In accordance with Presidential Regulation No. 75 of 2014, KPPIP has 6 major mandates with achievements as
summarized below:
Strategic Study on
Jakarta-Bandung
HSR proposals
Feasibility Study on
Panimbang-Serang
Toll Road
Tender for Investment in
Manado-Bitung Toll Road and
Balikpapan-Samarinda Toll Road
Determination of
Jabodebek LRT
funding scheme
Determination of
Palembang LRT
Funding Scheme
Signing of Loan
Agreement on MRTJ
(North-South)
Facilitating JSS project
meetings with Governor of
DKI Jakarta resulting in the
agreement to follow up
project preparation
Encouraging Issuance of Environmental Permit for PLTU Indramayu by
Indramayu Regent
MRT Jakarta: Facilitating coordination meetings with stakeholders for the purpose of acceleration
in negotiation process having prolonged for seven months until signing of loan agreement on
December 4, 2015
Jakarta-Bandung HSR:
Resolving deadlock
related to the proposal
received from
Government of Japan
and Government of
PRC by conducting
evaluation on both
proposals
Panimbang-Serang Toll Road: Facilitating AMDAL document preparation as a requirement for
issuance of Environmental Permit and VfM study as one of bases for determining the funding
scheme to complete the existing Feasibility Study
Permenko No. 12 of 2015 on the List of Priority Infrastructures governing 30 Infrastructure Projects. The expansion from 22 Priority
rojects to 30 Priority Projects took place through a series of discussions with relevant stakeholders and the guidance from the President
P
and Vice President as to which projects to accelerate.
1
2
21
A. ACHIEVEMENT OF KPPIP’S MANDATES
1. Determination of Priority Projects for for the Year 2016
Pursuant to Presidential Regulation No. 75 of
2014, in December 2015, KPPIP issued a list
of priority projects in the form of Coordinating
Minister for Economic Affairs Regulation No. 12 of
2015 on the List of Priority Infrastructures for the
period of 2015-2019.
value of more than Rp 100 billion or play strategic roles
in improving the region’s economy;
3. Construction must commence by 2018. Based on
such basic and additional criteria, 225 PSNs and
one electricity infrastructure development program
have been selected.
The projects were selected from potential National
Strategic Projects duly stipulated in Presidential
Regulation No. 3 of 2016 where further selection
was made by KPPIP. In the process of preparing
the National Strategic Projects, KPPIP referred
to the basic criterion, that is synchronization
between RPJMN, Renstra and RTRW, so that
Green Open Spaces will not be tampered with.
Other than the aforementioned basic criterion, the
PSN (National Strategic Projects) were selected
based on additional criteria covering:
The priority projects were then selected from the list of
National Strategic Project by taking the following matters
into account:
1. There must be an undisputed firmly-committed
champion to realize the project, particularly
to prepare for an action plan and project
implementation schedule;
2. The value of the project must be over Rp 500
billion; however, KPPIP will demonstrate flexibility
regarding the minimum project value;
3. KPPIP not only considers projects with high
investment value, but also takes account of
projects with high economic value;
4. KPPIP focuses on new infrastructure projects,
rather than on maintenance projects or projects
for procurement of facilities.
A. Strategic Criteria:
1. Strategic roles for the economy, social welfare,
defense and national sovereignty (creating
positive impacts on GDP, employment
rate, socio-economic conditions, and the
environment);
2. Conformity between infrastructures (supportive
and complementary to each other);
3.Distribution of projects among regions.
B. Operational Criteria:
1. The proposed project must have a high quality
feasibility study.
2. The Project shall either have an investment
From such a priority-based process, 30 priority projects
have been selected for 2015-2019, and these projects
have been stipulated in Regulation of the Coordinating
Minister for Economic Affairs No. 12 of 2015. Therefore,
KPPIP can focus on these 30 projects without neglecting
its mandates, but continue to monitor and support the
debottlenecking process required for the PSN.
2. Improvement in Quality of Project Preparation
Panimbang-Serang Toll Road
In preparing the toll road project which was potentially implemented under the PPP scheme, KPPIP facilitated
the provision of consulting services in the amount of Rp 2.6 Billion for conducting quantitative evaluation and
establishing guidelines for the preparation of VfM study for the toll road sector. PT Marga Graha Penta was
awarded the Project and has coordinated with Indonesia Toll Road Authority (BPJT), Directorate General of
Highways (Ditjen Bina Marga) and Banten Provincial Government for the preparation of the study and the study
was completed at the end of December 2015. The VfM study becomes the basis for determining the funding
scheme for the project proposed under the PPP scheme.
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In addition, in order to ensure that the preparation for the Project could be done without delay, KPPIP provided Rp 990
Million for consulting services for the purpose of preparing an AMDAL Report. PT Karsa Buana Lestari has carried out
the study, given a detailed account of and preliminary dissemination of information with regional governments and the
local community along the areas traversed by the toll road. In the process of preparation for the report, the consultant
coordinated with Ditjen Bina Marga, Banten Provincial Government and Regional Environmental Protection Agency
(BLHD) of Banten. By providing the fund, the land procurement process is expected to be realized on schedule in 2016 .
Jakarta-Bandung High Speed Railway
KPPIP provided Rp 3.1 Billion for consultation with a first-class internationaly-known consultant as stipulated in
Presidential Regulation No. 93 of 2015 on the Evaluation Team for Jakarta-Bandung High-Speed Railway Project and
appointed PT Boston Consulting Group - Parsons Brinckerhoff consortium through a series of selection process to
review the proposal for Jakarta-Bandung High Speed Railway submitted by the Government of Japan and Government
of PRC. The Evaluation Team consisted of the Coordinating Minister for Economic Affairs, Coordinating Minister for
Maritime Affairs, Minister of Finance, Minister of Transportation, Minister of SOE and Minister of National Development
Planning/Bappenas.
The components under evaluation encompassed aspects of commitment, government risks, technology, and user’s
experience, socio-economic impact and project planning. The final report on the work results, which constituted part of
the consideration for the Evaluation Team in the decision-making process for the selection of the proposed projects, was
finalized at the end of September 2015. The decision on the determination of the project funding scheme was made by
the Government of Indonesia at the beginning of October 2015 and the preparation for the project could be continued.
Bontang Oil Refinery
KPPIP allocated a budget of Rp 12.2 Billion in 2015 for the procurement of a consultant, PT Pricewaterhouse Coopers
(PwC) Advisory, which was appointed as the consultant charged with conducting the prefeasibility study/OBC for
Bontang Refinery. The OBC, which was completed in December 2015, became the basis for determining the funding
scheme and served as grounds for Government support to improve the feasibility of the project.
In drawing up the OBC, the winning consultant worked collaboratively with a first-class internationally-known technical
consultant such as Jacobs Engineering, which is highly experienced in conducting technical studies on oil and gas
projects around the world as part of the team. Such technical study gave some insight for the decision makers into
determining the applicable configuration to Bontang Refinery that is in line with the policy of the Government of Indonesia
with respect to the strategy to achieve energy security.
Synchronization between PPP Unit, Ministry of Finance, and Ministry of PPN (National
Development Planning) / Bappenas
To avoid obstacles posed by different standards or overlaps in the process during the preparation for the project,
KPPIP has coordinated with the PPP unit at the Ministry of Finance on projects potentially implemented under the PPP
scheme. The synchronization was made by harmonizing feasibility study standards which also involved the Ministry of
PPN/Bappenas and cutting down stages and simplifying documents required to apply for the fiscal support (VGF) and
government guarantee.
Having clear standards in preliminary feasibility study is very important to ensure that the project is well-prepared, so
that obstacles in the future can be minimized. Effective coordination between KPPIP, Ministry of PPN/Bappenas and PPP
Unit involved in establishing such standards is expected to prevent confusion on the side of Implementing Agency as the
party preparing the preliminary feasibility study.
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3. Acceleration in Determining Project Funding Scheme
South Sumatra LRT
Through a series of coordination meetings and active monitoring by KPPIP, the Palembang LRT funding scheme has
been decided to use SOE assignment under Presidential Regulation No. 116 of 2015 on the Acceleration in Light
Rail Transit Operation in South Sumatra Province in October 2015. It is stipulated that PT Waskita Karya is assigned
to build the infrastructure while PT Kereta Api Indonesia is to operate the railway facilities. By the issuance of the
Presidential Regulation, all stakeholders are expected to perform their duties and obligations to ensure that partial
target operation is achieved in August 2008.
Jakarta, Bogor, Depok and Bekasi LRT
In line with the process undergone for determining the Palembang LRT funding scheme, KPPIP conducts active
monitoring related to the preparation of the required regulations until the issuance of Presidential Regulation No. 98 of
2015 on the Acceleration in the Operation of Integrated Light Rail Transit in Jakarta, Bogor, Depok and Bekasi Areas
in September 2015.The development of the infrastructure with six-track services is assigned to PT Adhi Karya and
procurement of the railway facilities will be carried out by the Ministry of Transportation. Under this SOE assignment
scheme, it is expected that the target for the whole operation of LRT tracks services will be achieved in 2018.
of the Location Determination for the project and referring to Article 36 of Presidential Regulation No. 38 of 2015,
procurement for the PPP Executing Business Entity was put out to tender. The Indonesia Toll Road Authority (BPJT)
carried out pre-qualification stage from July to August 2015 and announced the result of the pre-qualification stage on
September 29, 2015 by producing a shortlist of four business entities, namely (1) Consortium of PT Jasa Marga – PT
Wijaya Karya – PT Pembangunan Perumahan, (2) PT Bangun Tjipta Sarana, (3) Consortium of HCM – Dewanto, dan (4)
PT Waskita Toll Road.
Balikpapan-Samarinda Toll Road
In the coordination meeting held by KSP in July 2015, KPPIP reported the progress of the priority projects in the toll
road sector, including Balikpapan-Samarinda toll road. Considering the issuance of the Location Determination for
the project and the progress of land procurement that had achieved more than 75%, and referring to Article 36 of
Presidential Regulation No. 38 of 2015, the tender for procurement of PPP Executing Business Entity was held. Through
the coordination following the tender, BPJT carried out a pre-qualification between July and August 2015 and selected
four business entities, namely (1) Consortium of Naza Engineering and Construction Sdn Bhd – PT Daya Mulia Turangga,
(2) PT Waskita Toll Road, (3) Consortium of PT Citra Marga Persada – PT Kaltim Binasarana Konstruksi – PT Brantas
Abipraya – PT Istaka Karya dan (4) Consortium of PT Jasa Marga – PT Wijaya Karya – PT Pembangunan Perumahan with
the notification of award sent on November 27, 2015.
North-South Corridor of MRT Jakarta
Soekarno-Hatta International Airport (SHIA) Express Railway
For the purpose of obtaining clarity on the continuation of the preparation for SHIA Express Railway project, KPPIP
facilitated coordination meetings to discuss the updated status of the project, including the funding scheme for the
project. In the meeting, Directorate General of Railway of the Ministry of Transportation announced the cancellation of
the application of PPP scheme in this project. In response to this decision, the facilities for preparation of the project
under PPP scheme by PT SMI was decided to be discontinued and returned to the Ministry of Transportation.
KPPIP facilitated the support for acceleration in the signing of the exchange note required to secure the execution of
the loan agreement. A close coordination between the Ministry of Finance, Ministry of National Development Planning/
Bappenas, and Ministry of Foreign Affairs was needed during the steps to conclude agreements on the substance of
and mechanism for loan disbursement. As a result, the exchange note was signed on November 27, 2015, and the loan
agreement was targeted to be executed in December 2015.
Trans Sumatera Toll Road
KPPIP has supported the process of transfer of land required to be used as the location of the converter station from
PT Perkebunan Nasional (PTPN) 7 to PT PLN. In November 2015, the appraisal process was completed and both
parties negotiated the price. Therefore, the transaction process could take place in December 2015 so the transfer of
rights over the land could be expedited and PLN could start the construction.
KPPIP facilitated the initiative to coordinate integrated infrastructure development in Sumatra by using Trans Sumatra
toll road as the backbone of the cross-sectoral infrastructure development. The coordination is aimed at optimizing
the utilization of the toll road track and involving a number of stakeholders, among others, the Ministry of Public Works
and Public Housing (BPPASPAM, Cipta Karya and Directorate General of Water Resources, Ministry of Energy and
Mineral Resources (Directorate General of Oil and Gas and Directorate General of Electricicy), Ministry of Transportation
(Directorate General of Railway), Ministry of Agrarian Affairs and Spatial Planning/National Land Agency (MoAASP/NLA)
Ministry of Environment and Forestry, Ministry of Communication and Information, PT Hutama Karya, PT PGN and PT
PLN.
Additionally, KPPIP also encouraged the issuance of the Location Determination for Lahat – Gumawang transmission
line required for the purpose of backfeeding for PLTU Sumsel 8 Mine Mouth Power Plant (PLTU Mulut Tambang
Sumsel 8). If this backfeeding process is delayed, the schedule for the HVDC project is predicted to fall behind
schedule.
KPPIP facilitated a series of coordination meetings and collected data and information related infrastructure development
plan from each institution. Considering that the integration plan will use the toll road track, further coordination will be
made by the Regional Infrastructure Development Agency (BPIW) and MoPWPH with the support of ad hoc coordination
by KPPIP.
Manado-Bitung Toll Road
In addition, KPPIP also monitored the revision process of Presidential Regulation No. 100 of 2014 on the Acceleration
of Toll Road Development in Sumatra until the issuance of Presidential Regulation No. 117 of 2015 in October 2015 to
include the assignment of 24 road sections to PT Hutama Karya. Out of the 24 sections, 8 priority sections are targeted
to be in operation by 2018-2019.
4. Monitoring dan Debottlenecking
High Voltage Direct Current (HVDC)
In the coordination meeting held by Presidential Staff Office (KSP) in July 2015 and attended by stakeholders,
among others, the Ministry of Public Works and Public Housing (MoPWPH) and the Provincial Government of North
Sulawesi, KPPIP reported the progress of the preparation for Manado-Bitung Toll Road. Considering the issuance
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25
5. Improvement to Regulations
Presidential Regulation on National Strategic Projects
WORKING SYSTEM
The Presidential Regulation on National Strategic Projects (PSN) aims to provide special facilities for the projects
serving national strategic interests so that the provision of the infrastructure can be made easier and faster. The
facilities provided under the Perpres (Presidential Regulation) cover permits-and-licenses and non-permitsand-licenses facilities, government procurement, land procurement, local content, debottlenecking support and
government guarantee.
Operationalization of KPPIP’s PMO (Project Management Office)
KPPIP was appointed as the party in charge of selection of the PSN. Since September 2015 KPPIP has been
preparing for the establishment of a criteria for selection and has selected the projects based on information and
confirmation from the Project Implementing Agencies. After undergoing such a process, KPPIP selected 225
projects and 1 electricity program as described in the PSN Regulation Attachment.
Presidential Regulation No. 3 of 2016 on the Acceleration in the Implementation of National Strategic Projects and
Presidential Instruction No. 1 of 2016 on the Acceleration in the Implementation of National Strategic Projects were
issued in January 2016.
Decision of the Coordinating Minister for Economic Affairs on the Working Team for the
Acceleration of Land Acquisition
The process of land procurement for infrastructure projects often poses as a major hurdle. A large number of interministerial or inter-institutional stakeholders are involved a large variety of land procurement obstacles starting from
the planning stage to the delivery of the result requires intensive and comprehensive coordination. In response
to this matter, KPPIP finds it necessary to establish a Working Team for the Acceleration of Land Acquisition that
consists of Coordinating Ministry for Economic Affairs, Coordinating Ministry for Maritime Affairs, Ministry of Finance,
Ministry of the Environment and Forestry, Ministry of Foreign Affairs, Ministry of State-Owned Enterprises, Ministry
of Agrarian Affairs and Spatial Planning/National Land Agency (MoAASP), Ministry of Religious Affairs, Attorney
General’s Office and the National Police of the Republic of Indonesia. In order to support the working team in their
job, a Technical Team will be established, with details of membership and duties of which shall be determined by the
MoAASP based on the requirement for settlement of land procurement issues.
The letter of decision on the Working Team for the Acceleration of Land Acquisition was targeted to be issued in
January 2016.
6.Facilitation for Capacity Building of Apparatus and Institutions Related
to Priority Infrastructure Provision
In 2015, KPPIP’s capacity building activities were still focused on building KPPIP’s internal capacity in performing
the mandates it had received. KPPIP organized workshops on November 30 and December 1 to improve its capacity
to apply the Outline Business Case (OBC) Guideline, determine the funding scheme, and monitor the projects and
resolve issues.
26
B. OPERATIONALIZATION OF KPPIP’S PMO AND DEVELOPMENT OF
The Project Management Office (PMO) was established at the beginning of 2015. The KPPIP’s PMO consists of
professional experts led by the Program Director for the purpose of supporting the operation of the KPPIP. The PMO
has the duties to provide full support and conduct analysis required during the preparation for and implementation
of priority projects.
In August 2015, the Program Director, Director of Finance, Director of Energy and Electricity, and Accountant were
appointed and started performing their duties. Meanwhile, KPPIP has planned and conducted preparation for the
tender for other expert positions for the year 2016.
Integrated Information Technology (IT) System
In order to provide an integrated IT system as the information and data base for the development of the projects
being monitored, KPPIP appointed PT Accenture Indonesia to build the IT system which was targeted to be
completed by the end of December 2015.
Its initial implementation will be by KPPIP, the system was expected to be used by all Implementing Agencies in
Ministries/Institutions and SOEs to report the progress and issues during preparation and implementing stages of
the projects. This IT system is expected to improve the level of accuracy in the data as they will be updated on a
real time basis by the parties performing preparation and implementation activities for the projects. To support the
project management functions and activities at each stage of the project cycle, the IT system will provide data and
information that encompass:
1. Project Status Overview Dashboard: displays the project performance as a whole from the point of view of
development and achievement of actual project phases as well as the latest issues about the project;
2. Milestone Analytical Dashboard: displays information concerning potential delay in the project based on the
plan and actual conditions of the project;
3. Project Performance: displays information concerning details of a project from various perspectives such as
general information about the project, progress of preparation, as well as the risks to and issues about the
project;
4. Data webservice and Batch Uploader: are features in an application to make the data maintenance process
easier using program uploading or interface with the application currently available at the Ministries/
Institutions;
5. Project Risk and Issue Dashboard: displays the status of risk mitigation and settlement of issues in all
projects available on the KPPIP’s dashboard.
All data and information in the system will be used by KPPIP to monitor and evaluate preparation for and
implementation of the project as well as becoming the basis for decision-making related to the projects.
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C. KPPIP BUDGET REALIZATION
Budget realization was accelerated after the establishment of the PMO at the second semester of 2015. Throughout
the year 2015, KPPIP absorbed 61.76% of the total budget where 62.62% of it was spent on consulting services
(Strategic Studies on Jakarta-Bandung HSR, Pre-Feasibility Study for Bontang Refinery, Value for Money and AMDAL Studies for Panimbang-Serang Toll Road and KPPIP IT System mockup). On top of that, 16.96% and the total
budget absorbed was spent on daily operation expenses; 8.14% on the fees of services rendered by individual
consultants, 4.75% on overseas business travel, 3.49% on out-of-town businesss travel, 2.62% on within-the-city
business travel, and 1.41% on other operational expenses.
In 2015, KPPIP succeeded in funding 4 studies on project preparation which were completed in December 2015.
The results of the studies play important roles in the decision making and progress of priority projects.
Realization of 2015 Budget by KPPIP - 61.76%
1,41%
16,96%
4,75%
3,49%
2,62%
8,14%
62,62%
Consulting Service Expenses – for
Study purpose
Within-the-city Business Travel
Overseas Business Travel
Other Operational Expenses
Consulting Services Expenses –
Individual
Out-of-town Business Travel
Daily Operational Expenses
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29
LATEST UPDATES
ON KPPIP PRIORITY
PROJECTS
30
KPPIP’s Report of
forAugust
August2015
2015––December
December2015
2015
2
DAFTAR
PROYEK
KPPIP’S
PRIORITY
PRIORITAS
PROJECTS2015
IN 2015
LATEST UPDATES ON KPPIP PRIORITY PROJECTS
Legends:
In the second semester of 2015, KPPIP encouraged preparation of 22 infrastructure projects which becomes the focus of
KPPIP1. The 22 priority projects have a total investment value of Rp 851 Trillion and they are targeted to be realized by 2019
Although Coordinating Minister for Economic Affairs Regulation No. 12 of 2015 that determines 30 Priority Projects for 2015-2019 was issued in December 2015, such 30 Projects have not become the main focus in the second semester of 2015 considering the determination
was made at the end of 2015.
1
32
Water & Sanitation
Airport
Energy
Road
Electricity
Urban Transportation
Port
Railway
33
List of 22 KPPIP’s Priority Projects
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1
JAKARTA SEWERAGE SYSTEM (JSS)
PROJECT IMPLEMENTATION SCHEDULE AND PROJECT STATUS ASSUMING PPP
SCHEME IS ADOPTED
Investment Value
Funding Scheme
: Rp 8.1 trillion (Zone 1)
: Likely to spend APBN with Foreign Loan (Japan) for Zone 1;
funding scheme for other zones has yet to be decided
Location
: DKI Jakarta
Implementing Agency
: Provincial Government of DKI Jakarta
Construction Commencement Date : 2018 (IPAL Zone 1)
Commercial Operation Date
: 2022 (Zone 1)
PROJECT DESCRIPTION
Jakarta Sewerage System project will manage domestic waste treatment in 15 zones (including the zone that
has been in operation), with the initial focus on Zones 1 and 6. Both are targeted for operation in 2021. Zone
1 will serve the central and north areas and Zone 6 will serve the west area. Total cost of Zone 1 project is ±
IDR 8 Trillion, while the development of Zone 6 will cost ± IDR 5 Trillion.
Zone 1 constitutes an integrated waste treatment system consisting of: 1). Waste Water Treatment Plant
(IPAL); 2). Piping System; and 3). House connections, with an area coverage of 4,901 Ha. IPAL for Zone 1 will
be constructed in Pluit with an average capacity of 198,000 m3 per day. Currently, the acceleration of the
project is focused on Zone 1.
PROJECT SIGNIFICANCE
As the nation’s capital city, DKI Jakarta has developed as a center of government, business, and industry.
Since the development is not accompanied by the improvement of disposal system for handling wastes
generated, the condition of water and sanitation in Jakarta has increasingly worsened. Currently, the coverage
ratio in DKI Jakarta is only 4% of the entire area with a BOD pollution rate of 84 mg/l. This condition makes DKI
Jakarta the second lowest capital city in Southeast Asia in terms of sanitation. In addition to the above, JSS
is also needed to support the effectiveness of the National Capital Integrated Coastal Development (NCICD),
which has commenced with construction. Since the development of waste water treatment plant is crucial to
NCICD development, this project has become a priority to the central government with the issuance of Letter
No: S-130/D.VI.M.EKON/09/2013 regarding the Acceleration of the Development of Integrated Waste Water
Treatment System in DKI Jakarta, which stipulates the importance to achieve 75% coverage of waste water
service area in 2022.
have
LATEST UPDATES
JICA has provided support in the preparation of Pre-feasibility Study for Zone 1 and the result has been disseminated to
related parties, including the Coordinating Ministry for Economic Affairs, the Directorate General of Cipta Karya, Ministry
of Public Works and Public Housing, National Development Planning Agency (Bappenas), and Regional Development
Planning Agency of DKI Jakarta. Subsequent coordination meetings at the ministerial level will be held to determine the
optimum funding scheme based on the results of the study conducted.
A coordination meeting at the ministerial level is planned to be held at the beginning of 2016.
The government of DKI Jakarta through PD PAL has appointed a consultant to develop Detailed Engineering Design for
zones outside of zone 1 and 6.
Considering that this project is closely related with NCICD, support will be given so that the project is not delayed and
will not reduce the optimum level of the environmental/economic benefits from NCICD, especially when NCICD Phase
B has commenced.
FUNDING SCHEME
The pre-feasibility study for Zone 1 has been carried out with JICA support.
Based on the discussion meeting at Echelon 1 level held on May 20, 2015, the funding scheme has been narrowed down to
two funding scheme options, which are State Budget with foreign loan from Japan and Public-Private Partnership scheme.
The meeting concluded that the funding scheme will be decided at Ministerial level with the option of State Budget or PPP
scheme.
The construction of Zones 1 and 6 will increase the area coverage of waste water service in DKI Jakarta
by 20%. The commencement of the Zone 1 project preparation is aimed to have a spillover effect to the
construction of other Zones. In the end, the construction of all projects in the Jakarta Sewerage System (JSS)
is expected to exceed the targeted waste service coverage in DKI Jakarta.
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LAND ACQUISITION
The development of Zone 1 does not need land acquisition as the land is owned by the Regional Owned Enterprise
(ROE) of DKI Jakarta, hence, matters related to land acquisition in Zone 1 will be solved internally within the jurisdictions
of DKI Jakarta.
NEXT STEPS
1
To expedite the determination of project funding scheme for Zone 1 and Zone 6
of IPAL JSS at the ministerial level.
2
To provide facilities for other zones to expedite the
determination of the funding scheme.
2
WEST SEMARANG DRINKING WATER SUPPLY SYSTEM
Investment Value
Funding Scheme
Location
Implementing Agency
Construction Commencement Date
: Rp 1.17 Trillion
: Not yet determined
: Semarang, Central Java
: Municipal Government of Semarang
: 2017
: 2021
PROJECT DESCRIPTION
West Semarang Drinking Water Supply System is a project to supply drinking water under PPP scheme. The
Government Contracting Agency is the Municipal Government of Semarang, supported by PT Indonesia
Infrastruktur Finance (IIF) as the transaction advisor. It has become one of the pilot projects for PPP with
availability payment scheme from the Regional Budget.
THE DRINKING WATER SUPPLY SYSTEM PROJECT IS DIVIDED INTO
2 DIVISIONS:
DISTRIBUTION NETWORK
RAW WATER SUPPLY
SYSTEM
Raw water source facilities
Transmission network
Water Treatment Plant (WTP)
Clean water transmission network
Reservoir
This project will use water from Jatibarang Dam and aims to resolve the problem of raw water supply shortage
in Semarang, which is currently supplied by Kudus Regency. The purpose of the project is to provide drinking
water for 31 sub-districts in 3 districts, in which around 60,000 families do not yet have access to the Drinking
Water Supply System (SPAM) network in West Semarang, Tugu, and Ngaliyan areas. The project aims to
resolve clean water crisis and reduce the use of ground water in Semarang.
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39
PROJECT IMPLEMENTATION SCHEDULE AND PROJECT STATUS ASSUMING PPP
SCHEME IS ADOPTED
As the succession of the Municipal Government is approaching, the determination of the funding scheme shall await the
new government election.
LAND ACQUISITION
Even though the Documents for Land Procurement Planning have been prepared, the issuance of the Location
Determination was suspended in late 2015 to wait for the results of the Regional-head Elections. To ensure that the
project is on schedule, the land procurement is projected to be completed in April 2016.
NEXT STEPS
To coordinate with the new Municipal Government of Semarang for the funding scheme determination
and the continuance of other stages of the project.
Spatial Plan
LATEST UPDATES
Funding scheme determination and other related matters have yet to be resolved shall be decided by the Mayor elected
in Regional-Head Elections on 9 December 2015. As mayor inauguration can take some time, the decision is likely to be
made in January 2016.
FUNDING SCHEME
The West Semarang Drinking Water Supply has been prepared to adopt PPP scheme, and has been planned to receive
Government Support in form of Viability Gap Fund (VGF). In-principle approval for VGF was issued in May 2015. The
West Semarang Drinking Water Supply constitutes one of the projects planned to receive availability payment from
Semarang Regional Budget.
Following the meeting chaired by the Vice President on 3 July 2015, guidance was given on the change in the project
scheme from PPP to the Assignment of Regional Government–Owned Enterprise (ROE) via Regional Drinking Water
Company of the city of Semarang.
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3
NATIONAL CAPITAL INTEGRATED COASTAL DEVELOPMENT (NCICD)
PHASE A
: Rp 600 trillion (all phases); Investment value of Phase A
amounts to Rp 26 trillion
Funding Scheme
: State Budget and Regional Budget for Phase A, potential
PPP for other phases
Location
: DKI Jakarta
Implementing Agency : Provincial Government of DKI Jakarta and the Ministry of
Public Works and Public Housing.
Construction Commencement Date : 2016
: 2018
PROJECT IMPLEMENTATION SCHEDULE OF NCICD PHASE A
Investment Value
PROJECT DESCRIPTION
National Capital Integrated Coastal Development (NCICD) includes the construction of a giant seawall in the
north of Jakarta Bay as an effort to protect the capital city from floods. Large lagoons will be built within the
walls to accommodate the water flow from 13 rivers in Jakarta (water reservoirs).
This mega project consists of three phases, as follows :
Phase
A
Phase
Phase A focuses on improving the existing coastal protection. This includes the reinforcement
and development of the existing coastal dams of 30 kilometers in length and the development
of 17 artificial islands on the Jakarta Bay. The first phase was launched in the beginning of
September 2014. The construction is planned to begin in early 2016.
B
Phase B focuses on efforts to develop the west outer giant seawall planned to be constructed
during 2018 through 2022.
Phase
Phase C focuses on constructing east outer giant seawall planned for after 2023. Several longterm developments in the east of the Jakarta Bay are conducted by closing part of the bay in
order to anticipate if land subsidence in the east part of Jakarta cannot be avoided. To reduce
the impact due to the closure during construction, a part of the eastern giant seawall will be
allocated for Tangerang-Bekasi toll road.
C
LATEST UPDATES
In order to accelerate the delivery of this project, the Environmental Impact Assessment (EIA) and Strategic Environmental
Assessment (SEA) were completed in December 2015.
Although the division of tranches for Phase A in DKI Jakarta has been completed, determination of tranches for Phase A
in Tangerang and Bekasi is still required, for which the Decision Lettesr from each Governor is necessary for the progress
of tranches finalization.
This project also awaits the approval for the allocation of multiyear funding from the Regional Government of DKI.
FUNDING SCHEME
Phase A funding scheme will use State and Regional budgets and the details of cost allocation will be further determined.
Other project phases are planned in collaboration with private entities with investment opportunities in NCICD.
LAND ACQUISITION
National Capital Integrated Coastal Development (NCICD) which is located in the north of Jakarta will require a
land reclamation in which 90 million m3 of sand will be needed for the construction of the outer giant seawall. The
additional 210 million m3 of sand will be used for land reclamation that creates new dry land with 1,250 hectares area to
accommodate urban development.
The raising of seawalls in Phase A will use the existing seawalls ground area, hence land acquisition is not needed.
NEXT STEPS
Determination of tranches for Phase A is required for Tangerang and Bekasi accompanied
by the Decision Letters issued by the Governor of the respective provinces.
More than half of Jakarta residents live in the coastal area and significant urban economic activities develop in the
coastal area. There are 13 rivers which disembogue in Jakarta Bay and 40% of the coastal lowland area lies below
tidal surface. Floods in coastal area are exacerbated by the land subsidence due to excessive extraction of ground
water.
Due to such concerns, the National Capital Integrated Coastal Development (NCICD) becomes crucial. This mega
project will be conducted in 3 phases where the first phase will be conducted by raising the existing seawalls.
.
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OIL REFINERY IN BONTANG
4
Investment Value
: Rp 75-140 trillion
Funding Scheme
: Potential for PPP scheme (awaits the Determination)
Location
: Bontang, East Kalimantan
Implementing Agency
: PT Pertamina (awaits the Determination)
: 2022
PROJECT DESCRIPTION
Bontang Refinery is a refinery construction project in Bontang, East Kalimantan, aiming to produce fuel at
the minimum of 235 thousand barrels per day. The refinery is planned to use a configuration system which
includes system collaborations like petrochemicals system. The output of the refinery will be prioritized to
satisfy domestic fuel demand.
Considering the need for fuel and the vision to achieve energy security, Indonesia needs to grow the
domestic refinery industry. A combination of Grass Root Refineries (GRR) and Refinery Development Master
Plan (RDMP) is needed to enhance the provision of crude oil and oil fuel in Indonesia to be able to reduce
import dependence.
It is expected that the construction of Bontang refinery will not face significant issues in land procurement
process because a 300 hectares area has been made available. In addition to that, the supporting
infrastructure such as road access, jetty, etc., are also available.
PROJECT IMPLEMENTATION SCHEDULE ASSUMING PPP
SCHEME IS ADOPTED
PROJECT IMPLEMENTATION SCHEDULE ASSUMING PPP SCHEME IS ADOPTED
Investment
Tender
June 2016
Guarantee
Projected to start in
February 2016
Development of BED
and FEED
September 2017
Financial Close
April 2018
LATEST UPDATES
Since October 2015, PT Pricewaterhouse Cooper Advisory Indonesia (PwC) has started to draw up OBC based on
KPPIP’s standards for Bontang oil refinery. The drawing up of the OBC is aimed at recommending the optimum funding
scheme for the project and promoting good governance in giving financial incentives required.
While drawing up the OBC, the Consultants have consulted with the related parties such as the Ministry of Finance, the
Ministry of ESDM, and PT Pertamina. In addition, the Consultant and PT Pertamina have made a field trip to Bontang to
carry out an appraisal of the facilities both available and required for the construction of this oil refinery.
In December 2015, the Government announced Paket Kebijakan VIII (8th Economic Policy Program) covering the
issuance of Presidential Regulation No. 146 of 2015 on Construction and Development of Domestic Oil Refinery required
as legal ground for the preparation of Bontang oil refinery project.
FUNDING SCHEME
One of the plans for the construction of oil refinery in Bontang is to adopt PPP scheme where PT Pertamina will act as
the Government Contracting Agency. PPP scheme is considered because of the limitations on funding capacity of the
State Budget (APBN) to finance the construction of the refinery.
In December 2015 the government, in its Economic Policy Program IIII (Paket Kebijakan Ekonomi III), announced that
Bontang oil refinery is likely to adopt PPP (KPBU) scheme, and Presidential Regulation on Oil Refinery allows the adoption
of PPP (KPBU) scheme and gives room for PT Pertamina to be the Government Contracting Agency.
Based on the results of OBC, PPP scheme can be adopted. Further, the decision on the location and configuration is
required to determine the level of government support needed to improve the feasibility of the project. Now there are 2
options, namely pure fuel oil refinery and petrochemical fuel oil refinery.
The decision on the funding scheme for the project will be made at the ministerial level.
44
45
LAND ACQUISITION
The Directorate General of the State Treasury of the Ministry of Finance, has provided a 300-ha parcel in Bontang District
that can be used for the construction of oil refinery under rental mechanism charged at Rp 0 (null Rupiah) rental fee.
NEXT STEPS
1
Decision on the Government policy on energy sustainability is required so that funding scheme for
the project can be determined.
2
Meetings at the ministerial level to determine project funding scheme.
REVITALIZATION OF THE EXISTING REFINERIES /
REFINERY DEVELOPMENT MASTER PLAN (RDMP)
5
Investment Value
: RP 210 trillion
Funding scheme
: Potential for SOE Assignment
Location
: Cilacap, Balongan, Dumai, Balikpapan, Plaju
Implementing Agency
: PT Pertamina
: 2021
PROJECT DESCRIPTION
RDMP project is a project to revitalize 5 refineries located in Cilacap, Central java; Balongan, West Java; Dumai,
Riau; Balikpapan, East Kalimantan; Plaju, South Sumatera; to increase the capacity of oil refineries in Indonesia.
Considering the fuel demand and the goal to achieve energy security, Indonesia needs to grow the domestic
refinery industry. The capability of Indonesia to meet domestic demands is very low (48 days in 2013 and it is
estimated to decrease to 38 days in 2025) and has a potential to threaten energy security.
RDMP needs to coincide with new refinery project (Grass Root Refinery) to improve production capacity and
competitiveness of the existing refineries in Indonesia. With the revitalization of the five refineries (Cilacap,
Balikpapan, Plaju, Balongan, and Dumai), the production will increase 150%.
PROJECT IMPLEMENTATION SCHEDULE OF RDMP STAGE I
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47
LATEST UPDATES
HIGH VOLTAGE DIRECT CURRENT (HVDC)
Pre-feasibility study, selection of contractors, and Bankability Study for RDMP projects had been completed in the end
of 2014. PT Pertamina had signed a Memorandum of Understanding (MoU) with selected investors on December 10,
2014 with partners from Saudi Aramco, JX Nippon, and Sinopec China. Based on the latest updates in 2015, JX Nippon
has withdrawn from Balikpapan refinery project because the estimated investment plan differed from what had been
initially approved. PT Pertamina will conduct the revitalization in stages. Phase 1 will start from Balikpapan Refinery and
Cilacap Refinery.
FUNDING SCHEME
6
Investment value
Funding Scheme
Location
Implementing Agency
Planned Construction Commencement Date
Planned Commercial Operation Date
: Rp 33.4 Trillion
: State Budget with Foreign Loan
: South Sumatra, Lampung, Banten, West Java
: PT PLN
: Packages 1-4 in 2016. Package 5 in.
: 2019
For this revatilization project, PT Pertamina will establish strategic partnerships with several entities, such as with Saudi
Aramco for Cilacap refinery.
PROJECT DESCRIPTION
LAND ACQUISITION
Revitalization will be conducted in the locations of the existing refineries, thus, land procurement will not be needed.
FOLLOW-UPS REQUIRED
1
High Voltage Direct Current (HVDC) is a project to develop transmission system that connects Sumatra and
Java. The system will be utilized to transmit electricity from Mine-Mouth Coal-Fired Power Plant 8, 9, and 10
in South Sumatra to Java Island.
To obtain long-term contracts and provision of crude oil, G2G agreements with
countries such as Irak, Iran, Azerbaijan, Saudi Arabia are required.
Regency
2
To issue in principle permits for foreign investment for the establishment of JV companies
in 2017 at the latest.
3
4
The issuance of other certificates and related oil and gas permits at
the EPC phase up to the operation.
5
48
(Lampung) to Salira
Approval for tax holiday or tax allowance in 2016.
Approval for Environmental Permits.
49
HVDC is a ~742 km transmission project and its implementation needs ~300 ha land. HVDC transmission
has the capacity to transmit 3,000 MW power from Sumatra to Java and vice versa. It aims to improve the
capacity of electricity supply on Sumatra and Java, and to reduce power generation costs by optimizing
the abundant low grade coal on Sumatra Island.
LATEST UPDATE
In December 2015, PT PLN (Persero) and PT Perkebunan Nusantara VII had a discussion, and both parties were
in agreement about the amount of compensation proposed by the assigned KJPP .
• Tender for Package 1 is undergoing the technical evaluation stage.
• Tender for Package 2 awaits the Board of Directors’ approval for technical evaluation that has been duly
completed.
• Tender for Package 4 is undergoing the technical evaluation stage.
FUNDING SCHEME
HVDC project has been determined to use fund from State Budget with Foreign Loan from JICA in the
amount of JPY 181.87 Billion (~IDR 33.4 Trillion).
LAND ACQUISITION
HVDC PROJECT IMPLEMENTATION SCHEDULE
South Sumatra
1
Land acquisition process for HVDC converter station in Muara Enim has already reached the final stage
as PT PLN and PT Perkebunan Nusantara VII have agreed upon the price determined by the appointed
KJPP. The latest update on December 15, 2015 showed that both parties were in the process of handing
the land over and submitting an administrative application .
2
Most of the land for transmission line and HVDC tower sites in Muara Enim is at the land appraisal
stage by KJPP, and so is the land in Ogan Komering Ulu (OKU), Ogan Komering Ulu Timur (OKUT) and
Ogan Komering Ilir (OKI). So far the land for 44 tower sites in OKUT District and 3 tower sites have been
acquired.
3
The legal basis for land procurement for 275 kV Lahat – Gumawang transmission line to transmit power
from South Sumatra 8 Mine Mouth Power Plant (PLTU MT Sumsel 8) is currently being shifted from the
obsolete land law to the new one.
TENDER
TENDER
TENDER
Lampung
TENDER
TENDER
1
The Decision Letter on the determination of the Land Acquisition Committee for the land located in six
(6) regencies, that are Lampung Tengah, Lampung Selatan, Lampung Timur, Mesuji, Tulang Bawang, and
Tulang Bawang Barat, was issued by the Ministry of AASP in August 2015. Thus, land acquisition for
HVDC transmission line in those areas refers to Law No. 2 of 2012 as the legal basis.
2
The procurement of land for the landing point in Lampung Selatan regency has been completed. At
present, the landing point is under construction.
3
Oper ation
The procurement of land for 253 tower bases in Lampung Province has mostly reached valuation phase
except for those in Lampung Timur regency. So far, land has been procured for 17 tower bases in
Lampung Timur and 8 tower bases in Mesuji.
Oper ation
TENDER
50
51
Banten
Banten
1
Land acquisition process is being shifted from B2B land procurement scheme by PT PLN to that of under
Law No. 2 of 2012.
2
Land for landing point in Cilegon Regency is now available and the sub-sea cable is at the construction
stage.
3
Land acquisition for electrode station awaits the Decision Letter from the National Land Agency’s regional
office of Banten to start the process.
4
So far the land acquisition in Banten has reached the inventory taking stage, particularly for five (5) areas
traversed, namely Serang Regency, Serang Municipality, Cilegon Regency, Pandeglang Regency and Lebak
Regency. Currently, land has been acquired for 12 tower sites in Cilegon and 6 tower sites in Pandeglang.
West Java
1
2
The process of land acquisition for converter station in Bogor Regency is ongoing following the renewal of
the Location Permit issued by the Provincial Government of West Java in August of 2015. So far, 51 out of
55 hectares of land has been procured.
7
Investment Value
Funding Scheme
Location
Project Implementing Agency
: Rp 18 Trillion
: IPP where the successful bidders are PT Bukit
Asam dan China Huadian Corporation which
together formed a consortium named PT Huadian
Bukit Asam Power (HBAP)
: South Sumatra
: PT PLN
: 2016
: 2019
PROJECT DESCRIPTION
South Sumatra Mine-Mouth Coal-Fired Power Plant 8 (PLTU Sumsel 8) is a coal-fired power plant with
‘mine-mouth’ scheme where the power plant is located parallel to the coal mine, thus reducing logistic
costs. This PLTU will have 1,200 MW capacity and will be connected with HVDC transmission line (Project
No. 6).
Land acquisition for tower sites in Bogor Regency has reached the inventory taking stage.
NEXT STEPS
Issuance of LoI for HVDC Package 1 and 2.
52
A. SOUTH SUMATRA MINE-MOUTH COAL- FIRED POWER PLANT 8
The growth of population and industry on Java Island especially the west part of Java has increased the
needs for electric power that cannot be fulfilled by power plants in Java Island. Seeing the huge potentials
for coal and the construction of coal-fired power plants on Sumatra Island, the Government of Indonesia
has prepared a plan to develop power plants and transmissions to create sustainable electricity supply for
both Sumatera and Java islands.
53
FUNDING SCHEME
PLTU SUMSEL 8 PROJECT IMPLEMENTATION SCHEDULE
PLTU Sumsel 8 is a project with Independent Power Producer (IPP) scheme where PT PLN conducts a tender for
Business Entities that will fund and construct the project. The winning bidder is PT Huadian Bukit Asam Power (HBAP)
which is a consortium of PT Bukit Asam and China Huadian Corporation.
LAND ACQUISITION
The AMDAL for the project has been issued and the land has been procured. At present, certificates for the land procured
are in the process of issuance.
TENDER
LATEST UPDATE
Power Purchase Agreement (PPA) for Sumsel 8 was signed on September 17, 2012 with 3 times extension of financial
close.
TENDER
As the Letters of Intent (LoI) for HVDC Package 1 and Package 2 have not been issued, an amendment to PPA is under
consideration in order to accommodate the change in the schedule for the financial close.
NEXT STEPS
TENDER
1
To encourage acceleration in the issuance of decision on the change in the schedule of
financial close and to determine the follow-ups required at a later stage.
2
TENDER
To secure the issuance of LoI for HVDC Package 1.
3 To secure the issuance of LoI for HVDC Package 2.
4 To finalize land certification process.
5 To achieve financial close.
TENDER
Oper ation
Oper ation
TENDER
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55
PLTU SUMSEL 9 & 10 PROJECT IMPLEMENTATION SCHEDULE
7
B. SOUTH SUMATRA MINE-MOUTH COAL- FIRED POWER PLANTS
9 & 10
Investment Value
Funding Scheme
Location
Implementing Agency
: Rp 36 Trillion (Sumsel 9) and Rp 18 Trillion
(Sumsel 10)
: IPP where the winning bidder has not been
determined
: South Sumatra
: PT PLN
: 2017
: 2021
TENDER
TENDER
PROJECT DESCRIPTION
South Sumatra Mine-Mouth Coal-Fired Power Plant 9 & 10 (PLTU Sumsel 9 & 10) are coal-fired power
plants with ‘mine-mouth’ scheme where the power plant is located parallel to the coal mine, thus reducing
logistic costs. These PLTUs will have 1,200 MW and 600 MW capacities and will be connected to HVDC
transmission line (Project No. 6).
TENDER
TENDER
The growth of population and industry on Java Island especially the west part of Java has increased the
needs for electric power that cannot be fulfilled by power plants in Java Island. Seeing the huge potentials
for coal and the construction of coal-fired power plants on Sumatra Island, the Government of Indonesia
has prepared a plan to develop power plants and transmissions to create sustainable electricity supply for
both Sumatera and Java islands.
TENDER
Oper ation
Oper ation
TENDER
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57
500 KV SUMATRA TRANSMISSION LINE
LATEST UPDATE
The new Requests for Proposals (RFP) for Sumsel 9 and Sumsel 10 were issued on 18 Desember 2014. The deadline for
submission of the bids (bid submission date) was extended until February 2016.
FUNDING SCHEME
PLTU Mulut Tambang Sumsel 9 & 10 project adopts Independent Power Producer (IPP) scheme where PT PLN conducts
a tender for Business Entities that will fund and develop the project.
LAND ACQUISITION
8
Investment Value
Funding Scheme
Location
Implementing Agency
: Rp 24.4 trillion
: Of the total 1,330 km, 430 km is potentially funded
by SOE, the funding scheme for the remaining 900
km is yet to be decided
: Sumatra
: PT PLN
: 2016
: 2017 – 2023
The project has not entered the land acquisition stage. The land acquisition for the Mine-mouth Power Plant will start
after tender award notification.
NEXT STEPS
To ensure that the notification of award is achieved in mid-2016.
PROJECT DESCRIPTION
The construction project of 500 KV Sumatra Transmission Line aims to deliver electricity generated in the
southern part of Sumatera to the northern region of the island using a 1,330-km transmission line from
Muara Enim in South Sumatera to Langsa in Aceh.
The Sumatra Transmission is needed to transmit electricity from Coal-Fired Power Plant (PLTU) in South
Sumatra to the north region of Sumatra to improve electricity access of the communities. The schedule
for the construction of this project will be synchronized with the completion of the construction of PLTU
Sumsel 8, 9, 10 and the construction of HVDC so as to avoid uneven supply of electricity on Sumatra Island
and Java Island.
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59
IMPLEMENTATION SCHEDULE
LATEST UPDATE
The 430-km (New Aur Duri – Peranap – Perawang) Sumatra Transmission Line project was initially planned to be assigned
through direct appointment to and be divided equally among five (5) SOEs (Hutama Karya, Adhi Karya, Waskita Karya,
Wijaya Karya, Pembangunan Perumahan). However, due to the absence of legal basis for direct appointment scheme,
PT PLN decided to conduct a tender.
At the end of 2015, PT PLN stipulated PT Waskita Karya as the winning bidder for New Aur Duri – Peranap – Perawang
section.
A suitable funding scheme for the remaining 900-km project is currently still being explored. PT PLN is also preparing
tender documents for the tender to take place in the early 2016.
FUNDING SCHEME
PT PLN has stipulated PT Waskita Karya as the winning bidder for the 430-km section from New Aur Duri – Peranap –
Perawang. However, PT PLN is still in the preparation stage of putting the remaining ~900 km of Transmisi Sumatera out
to tender.
LAND ACQUISITION
PT Waskita Karya has started the process of land procurement for New Aur Duri – Peranap – Perawang section followed
by groundbreaking in of April 2016.
NEXT STEPS
60
1
To monitor the process of land acquisition for New Aur Duri – Peranap – Perawang section
2
To monitor the tender process of the 900-km section.
61
SUTET 500 KV TANJUNG JATI – TX (UNGARAN – PEDAN) (144 KM)
CENTRAL – WEST JAVA 500 kV TRANSMISSION LINE
9
Investment Value
Funding Scheme
Location
Implementing Agency
: Rp 7.64 trillion
: Potential for State Budget with Foreign Loan (KfW and
JICA)
: West Java and Central Java
: PT PLN
: 2017
: 2019
PROJECT DESCRIPTION
The construction of the 500-kV transmission is aimed to deliver electricity produced in Central Java to
Jakarta load center that is located in the western part of Java.
The transmission line from West Java to Central Java is highly needed to transmit the electricity generated
by PLTU Indramayu (1,000 MW), PLTU Jawa 1 (1,000 MW), PLTU Pemalang (2x1,000 MW), PLTU Jawa 3
(2 x 660 MW), PLTU Jawa 4 (2x1,000 MW) and PLTU Batang (2,000 MW). Consequently, it is necessary to
synchronize the development schedules and completion of all projects.
SUTET 500 KV TX (UNGARAN – PEDAN) – BATANG (63 KM)
Description
Funding
Survey, study
IMPLEMENTATION SCHEDULE FOR CENTRAL – WEST JAVA 500 KV
TRANSMISSION LINE PROJECT
EIA
Permits & License
Land Acquisition
Tender Documents
Bidding Process
Construction
Energizing (for Back Feeding)
SUTET 500 KV BATANG – MANDIRANCAN (334 KM)
Description
Funding
Survey, study
EIA
Permits & License
Land Acquisition
Tender Documents
Bidding Process
Construction
62
63
SUTET 500 KV MANDIRANCAN – INDRAMAYU (180 KM)
Description
Funding
Survey, study
EIA
LATEST UPDATE
All sections are going through a survey and study process, which is projected to finish in the second quarter of 2016.
The funding scheme is under a further in-depth review to ensure the completion of the construction by the year 2019.
FUNDING SCHEME
This project potentially receives a foreign loan from JICA and KfW. While waiting for the loan, PT PLN undertakes the
initiative to first allocate its own budget to land acquisition and preparation for other tender documents.
Permits & License
LAND ACQUISITION
Land Acquisition
Tanjung Jati – Cibatu section is in the process of land acquisition in compliance with Law No. 2 of 2012 with construction
projected to commence in 2017.
Tender Documents
Bidding Process
Construction
SUTET 500 KV INDRAMAYU – CIBATU (260 KM)
Description
Tanjung Jati – TX (Ungaran – Pedan) section is also going through the process of land acquisition and is projected to be
completed in late 2016. Initial construction is targeted to start in mid-2016.
Ungaran – Pedan – Batang section, Batang – Mandirancan section, Mandirancan – Indramayu section, and Indramayu –
Cibatu section will undergo land procurement in mid-2016.
NEXT STEPS
Funding
Survey, study
EIA
To accelerate the land acquisition that is now in the stage of
document preparation.
Permits & License
Land Acquisition
Tender Documents
Bidding Process
Construction
64
65
LAND ACQUISITION
10
INDRAMAYU COAL-FIRED POWER PLANT (PLTU INDRAMAYU)
Investment Value
Funding Scheme
Location
Implementing Agency
: Rp 20 trillion
: State Budget using Foreign Loan (JICA)
: Indramayu, West Java
: PT PLN
: 2017
: 2019
PROJECT DESCRIPTION
The development of coal-fired power plant with a capacity of 1,000 MW is aimed to supply electricity for Java
and Bali.
Following the Environmental Permit issuance on May 26, 2015, PLTU Indramayu is now in the process of preparing Land
Acquisition Planning Documents to acquire the land. Land acquisition will be continued after the edict on the consistency
of Indramayu spatial planning from the Ministry of Agrarian Affairs and Spatial Planning (MoAASP) is issued.
NEXT STEPS
1 To hold coordination meetings on the consistency of spatial planning
of Indramayu Regency for the construction of the said PLTU.
2
To promote the acceleration of preparation and implementation of land acquisition
The purpose of this PLTU is to support the electricity supply system and reduce electricity crisis in the Java
and Bali regions. In addition to the above, this project aims to create economic growth and create positive
impacts on the communities by supporting the industrial estates growth in the Eastern region of Jakarta and
West Java.
LATEST UPDATE
Regional Secretary of Indramayu Regency called for an edict from the Ministry of Agrarian Affairs and Spatial
Planning regarding the consistency of spatial planning for the construction of PLTU Indramayu by taking
into account the measure of the designated land and of the village covered for the construction of PLTU in
Regional Regulation of Indramayu No.1 of 2012 on Spatial Planning of Indramayu Regency.
The requested edict is being formulated at the Directorate General of Spatial Planning, Ministry of Agrarian
Affairs and Spatial Planning (MoAASP). KPPIP will facilitate coordination meetings to expedite the issuance
of the edict so that the project can continue to land acquisition stage.
FUNDING SCHEME
PLTU Indramayu has been stipulated to use funding from the State Budget (APBN) received as foreign loan
from Japan International Cooperation Agency (JICA) that amounts to USD 2 billion.
66
67
LATEST UPDATE
PLTU BATANG / CENTRAL JAVA POWER PLANT
11
Investment Value
Funding Scheme
Location
Implementing Agency
: Rp 40 trillion
: Independent Power Producer (IPP) with PT
Bhimasena Power Indonesia (PT BPI) as the
selected investor
: Batang, Central Java
: PT PLN
: 2016
: 2019
PROJECT DESCRIPTION
PLTU Batang or Central Java Power Plant (CJPP) is an ultra critical coal-fired power plant with 2 x 1,000
MW capacity in Batang Regency, Central Java. PLTU Batang will be constructed by the Special Purpose
Vehicle (SPV) of PT Bhimasena Power Indonesia consisting of J-POWER (34%), Adaro (34%), and Itochu
(32%). This project is guaranteed by Indonesia Infrastructure Guarantee Fund (IIGF) and the Central
Government for political and force majeure risks.
The deadline for the Financial close is put off from October 2015 to March 2016 and the revision to the PPA has been
signed.
FUNDING SCHEME
The funding scheme has been determined as IPP where the winning bidder was PT Bhimasena Power Indonesia formed
by J-Power (34%), Adaro (34%), and Itochu (32%).
LAND ACQUISITION
Cassation process against community refusal to provide land for the power block was expected to be settled in December
2015, yet the process took longer. At the same time, the District Court of Batang will deliver the minutes of consignment
to the Ministry of AASP. Consequently, compensation process has legally ended and rights over land have changed
hands from the locals to the Ministry of AASP and therefore can be transferred to PT PLN.
Transfer process of State’s General Reserve Land (TCUN) has been executed using a transfer scheme to PT PLN prior
to the utilization of the land by PT BPI.
The power plant with a capacity of 2,000 MW is aimed to supply electricity for the population of Java
Island. This project also becomes a pilot project with PPP scheme with the largest value in Indonesia.
PROJECT IMPLEMENTATION SCHEDULE OF PLTU BATANG
Land Acquisition
Awaits the completion
of land acquisition for
Power Block in early
2016
68
Financial Close
March 2016
Construction
Has yet to start
Commercial
Operation
Projection
2019
69
WATER TO ENERGY (DEVELOPMENT OF 4 NEW HYDROELECTRIC
POWER PLANTS (PLTA KARANGKATES IV & V, KESAMBEN, AND
PLTM LODOYO)
NEXT STEPS
1
Transfer of rights of public land within the power block area to PT PLN.
2
Transfer of TCUN land to PT PLN.
12
Investment Value
Funding Scheme
Location
Implementing Agency
: Has yet to be decided
: Potential SOE appointment for PLTA Karangkates
IV & V, Kesamben, and PLTM Lodoyo, and PPP
potential for other projects, including to increase
dam capacity to become power plants.
: West Java and Central Java
: PT PLN
: 2016
: 2019
PROJECT DESCRIPTION
Water to Energy Program is divided into 4 acceleration programs, where one of them is a breakthrough
for Karangkates IV & V, Kesamben, and Lodoyo Hydro Power Plants (PLTA) and Micro-Hydro Power
Plant (PLTM) construction acceleration, with a total capacity of 147 MW. PLTA Karangkates IV & V and
Kesamben are located in Brantas River, East Java, while PLTM Lodoyo will utilize a weir. Total capacity
of the three PLTAs and one PLTM reaches 147 MW.
In addition to the above-mentioned projects, Matenggeng Dam, which has the potential to generate
900 MW, has received KPPIP’s attention. The project is currently in the study process and the funding
scheme is not yet determined.
PLTA Karangkates IV & V can generate 100 MW of electricity. PLTA Kesamben has a capacity to generate
37 MW and PLTA Lodoyo can generate 10 MW. With a total of 147 MW, the four power plants are
selected as they can potentially be constructed the fastest.
IMPLEMENTATION SCHEDULE FOR PLTA KARANGKATES IV & V AND
PLTA KESAMBEN
Feasibility Study
December 2015
Environmental
Impact Assessment
(EIA)
April 2016
Funding Scheme
Determination
Detailed Engineering
Design (DED)
2016
2016
Land Acquisition
December 2015
70
Construction
April 2016
Commercial
Operation
Projection
2018
71
IMPLEMENTATION SCHEDULE FOR PLTMH LODOYO (LODOYO MINI-HYDRO
POWER PLANT)
Feasibility Study
UKL - UPL
October 2014
December 2014
Groundbreaking
Commercial
Operation Date
December 2016
2019
Basic Design and
Design (DED)
December 2015
NEXT STEPS
1
Funding Scheme
Determination
To encourage finalization of consortium to determine funding scheme and EPC value
required for PLTA Karangkates IV & V.
2
2016
To promote issuance of letter of approval from the Board of Directors
of PLN on the inclusion of PT PJB in SPC.
LATEST UPDATE
PLTA Karangkates IV & V encountered obstacles in funding scheme determination as it is subject to approval by six (6)
members of the consortium. As a result, the EPC cost is yet to be determined.
Arrangement for Power Purchase Agreement (PPA) was delayed because the Special Purpose Company (SPC) has
not been formed due to a pending written approval from the Board of Directors of PLN for PT Pembangkit Jawa Bali, a
member of the SPC. Once the SPC is formed, the consortium will arrange the license for SIPPA.
The Feasibility Studies (FS) for PLTA Karangkates IV & V and Kesamben were completed in December 2015.
The FS for PLTM Lodoyo II was completed in October 2014, with the basic design and DED finalized in December 2015.
FUNDING SCHEME
PLTA Karangkates IV & V and PLTA Kesamben are potentially funded through a synergy among State-Owned Enterprises
consisting of PT Pembangkit Jawa Bali (PJB), PT Wijaya Karya, PT Waskita Karya, PT Hutama Karya, PT Brantas Energi,
and Perum Jasa Tirta I.
PLTM Lodoyo potentially uses funds from SOE synergy that comprises PT Pembangkit Jawa Bali (PJB), Perum Jasa Tirta
I, and PT Brantas Energi.
Both consortiums are awaiting direct appointments as project initiators from PT PLN with a recommendation letter from
the Ministry of PPN/Bappenas (National Development Planning Agency).
LAND ACQUISITION
PLTA Karangkates IV & V will use land owned by Perum Jasa Tirta I. Land procurement for PLTA Kesamben is awaiting
the signing of Power Purchase Agreement (PPA).
PLTA Lodoyo does not require land procurement.
72
73
PANIMBANG – SERANG TOLL ROAD
13
Investment Value
Funding Scheme
Location Implementing Agency Planned Construction Commencement Date
Spatial Plan
: Rp 12 trillion
: Potential for PPP
: Banten
: Indonesia Toll Road Authority (BPJT)
: 2017
: 2018
Has been registered
Financial Close
Environmental
Permit
Borrow-to-use
Permit for Forest
Area (IPPKH)
Has yet to be issued
Not requiredH
Construction
Land
Acquisition
as yet to be started
Commercial
Operation Target
PROJECT DESCRIPTION
The toll road development for the length of 83.6 km to provide access to the Tanjung Lesung Special
Economic Zone (SEZ) and Ujung Kulon National Park.
Projected in July 2017
Projected to
commence in July
2017
2018
Aside from supporting tourism growth in Tanjung Lesung and Ujung Kulon National Park, this toll road
is expected to reduce logistic costs for goods delivery from industrial estates in Pandeglang to ports in
Jakarta or vice versa.
PROJECT IMPLEMENTATION SCHEDULE
Pre-feasibility
Study
April – December 2015
Feasibility Study
Design (DED)
December 2015
2016
Funding Scheme
Determination
2016
Investment Tender
Awaits funding
scheme determination
VfM study concluded
the project is likely to
adopt PPP
scheme using
Availability Payment or
SBOT with VGF
Feasibility
Support/VGF
Awaits funding
scheme determination
Environmental
Impact Assessment
(EIA)
September – December
2015
LATEST UPDATE
The Ministry of PWPH shall stipulate the route selected under the updated feasibility study delivered by the Provincial
Government of Banten. Since September 2015, KPPIP has provided facilities for developing VfM study and EIA (AMDAL)
documents. To prepare VfM study, KPPIP has coordinated with BPJT and the Directorate General of Bina Marga as
well as the Regional Government and decided that the findings of the study shall be used as the basis for funding
scheme determination. EIA (AMDAL) documents were developed in coordination with DG Bina Marga as the initiator.
Conclusion drawn from the results of Environment Impact Analysis (ANDAL) confirms that this toll road construction
is environmentally feasible, and that DG Bina Marga may proceed with the next stage of the process, which is the
application for the Environmental Permit.
DG Bina Marga is in the process of drafting documents for land acquisition planning containing a basic study on
environmental impacts. Location Determination by the Governor of Banten is expected to be issued within 1-2 months
after the submission of the documents.
FUNDING SCHEME
Guarantee
Awaits funding scheme
determination
The results of VfM study concluded that the optimum funding scheme is PPP using availability payment scheme from
the State Budget (APBN) or Supported-Build-Operate-Transfer (SBOT) with Viability Gap Funding (VGF). The funding
scheme is to be determined as early as 2016.
LAND ACQUISITION
In a Coordination Meeting on Panimbang – Serang Toll Road held on 14 July 2015, it was agreed that the process for land
acquisition shall be pursuant to Law No. 2 of 2012 on Land Acquisition for Public Interest. The estimated land needed for
Serang – Panimbang Toll Road is 700-800 hectares in area. Ministry of Public Works and Public Housing (MoPWPH) has
determined the amount of budget needed to procure the land in 2016. Location Determination by Governor of Banten is
expected at the beginning of 2016.
Based on the study interim results, the majority of routes are located in plantations and irrigated fields owned by the
Government which shall not be occupied by the community. The inhabitants living on land potentially impacted by the toll
road plan are less than 10% of the total area of land needed for the toll road.
74
75
PT Banten West Java, as the developer of Tanjung Lesung Special Economic Zone, has expressed its willingness to
acquire land for the first 25 km following the issuance of Location Determination and the signing of cooperation agreement
between the Ministry of Public Works and Public Housing and PT Banten West Java that guarantees that the cost of land
acquisition for the first 25 km from PT Banten West Java will be reimbursed by State Budget.
NEXT STEPS
1 The signing of joint-operation agreement between the Ministry of Public Works and Public Housing
(MoPWPH) as the agency that needs the land and PT Banten West Java for land procurement process by
a business entity.
2
The issuance of Determination of Locations for the implementation of land procurement by the
Governor of Banten is to be done after the submission of the documents for land procurement
plan by Ministry of PUPR.
3
MANADO – BITUNG TOLL ROAD
14
Investment Value
Funding Scheme
Location
Implementing Agency
: Rp 3.9 trillion
: PPP supported by the Government in the form of
partial construction
: North Sulawesi
: 2017
: 2018
PROJECT DESCRIPTION
This 39-km toll road shall connect two major cities in North Sulawesi, Manado and Bitung. This project is
divided into two (2) stages, namely (1) Section 1: Manado – Airmadidi and (2) Section 2: Airmadidi – Bitung.
Preparation for investment auction at the beginning of 2016.
This project aims to support the increased traffic in the Manado – Bitung route, enhancing the tourism sector
as well as economic growth in Manado, North Minahasa, and Bitung. This toll road will also serve as the
main access road to Bitung Special Economic Zone (SEZ) and Bitung International Hub Port, which will be
developed.
Pre-feasibility
Study
Completed in 2012
Completed in 2012
Determining
Funding Scheme
Investment Tender
Has been decided
76
Feasibility Study
Preparation for
investment tender;
Four (4) business
Design (DED)
Completed in 2013
Feasibility
Support/VGF
Partial construction
by the Government
EIA (AMDAL)
Documents
Completed in 2013
Guarantee
Has yet to be
processed
77
Spatial Plan
Has been registered
Environmental
Permit
Has been issued
Borrow-to-use
Permit for Forest
Area (IPPKH)
Not required
Land
Procurement
Location Determination
was issued in April;
Land acquisition per
December 2015 had
achieved 31.55% of
the target
LAND ACQUISITION
Land acquisition process for Manado – Bitung Toll Road has started since June 2015 where land acquisition process for
Section 1 (Manado – Airmadidi) has reached 90.16% using IDR 6.72 Billion from the Regional Budget of South Sulawesi.
The land acquisition fund has been allocated in the 2016 Regional Budget. Until the end of 2015, negotiation on, land
verification of, and payment for the land would be done to finalize land procurement for Section 1.
Following the issuance of Location Determination by the Governor of North Sulawesi on 22 March 2012 and its revision
on 7 April 2015, land acquisition for Section 2 (Airmadidi – Bitung) was targeted to have started in August of 2015. At the
moment, land measurement for Section 2 is in progress and projected to complete in 2016.
NEXT STEPS
Financial Close
Projected to complete
in December 2016
Construction
Projected to
commence in February
2017
Commercial
Operation Target
2018
LATEST UPDATE
1
Implementation of investment tender in mid-2016.
2
Confirmation of allocation of 2016 budget for land acquisition funds by the
Provincial Government of North Sulawesi and continuation of land procurement
for Section 2.
3
Acceleration in negotiations between Ministry of Finance and the People’s
Republic of China as the lender regarding an additional loan of USD 600
million for partial construction by the Government.
BPJT conducted a pre-qualification selection from July to August 2015. The notification of the pre-qualification results
was issued in September 2015, where four business entities were declared as qualified. BPJT further made preparations
for investment tender expected to take place in the middle of 2016.
FUNDING SCHEME
The funding scheme of this project is Supported-Build-Operate-Transfer (SBOT). The Government will provide support in
the form of partial construction for Section 1, the Manado – Airmadidi route for the length of 14 km. The fund used for the
construction of section 1 comes from State Budget through loan from the Government of the People’s Republic of China
(PRC). The construction of Section 2, the Airmadidi – Bitung route for the length of 25 km will be implemented by private
sector investment is estimated at IDR 3 Trillion. This fund from the private sector will be allocated to finance construction,
operations, and maintenance during concession period.
Financing for land acquisition comes from the 2015 State Budget amounting to IDR 19 Billion for section 1 and
approximately IDR 440 Billion for section 2. The Provincial Government of North Sulawesi also provides funding support
through the 2016 Regional Budget amounting to IDR 6.72 Billion for land acquisition for section 1 and IDR 100 Billion for
section 2.
78
79
BALIKPAPAN – SAMARINDA TOLL ROAD
15
Investment Value
Funding Scheme
Location
Implementing Agency
Spatial Plan
: Rp 11.4 trillion
: PPP supported by the Government in the form of
partial construction
: East Kalimantan
: 2016
: 2018
Has been registered
Environmental
Permit
Borrow-to-use
Permit for Forest
Area (IPPKH)
Has been issued
Has been issued
Land
Procurement
Location Determination
revision has been
issued in April 2009
Land procurement as
of December 2015
had reached 80%
PROJECT DESCRIPTION
Financial Close
This 99 km toll road will connect two largest cities in East Kalimantan, namely Balikapapan and Samarinda.
This project is divided into two sections, Section 1 consists of Package 1 (25.07 km) and Package 5 (11.09
km) and Section 2 consists of Package 2 (23.26 km), Package 3 (21.9 km) and Package 4 (17.7 km).
Projected in October
2016
Construction
Commercial
Operation Target
Projected to start in
November 2016
August 2018
This toll road will support palm oil, coal, oil and gas, and agriculture-based industrial estates in the two cities
and along the toll road. This toll road project will also support the projected increase of passengers and goods
traffic as well as reduce logistic costs and travel time between Samarinda and Balikpapan.
LATEST UPDATE
BPJT held a pre-qualification tender in August 2015 and five companies were qualifed.
FUNDING SCHEME
PROJECT IMPLEMENTATION PLAN
Pre-feasibility
Study
Has been completed
Feasibility Study
Design (DED)
Completed in 2014
Has been completed
Environmental
Impact Assessment
(EIA)
Completed in 2014
Funding scheme for this project is Supported Build-Operate-Transfer (SBOT). This project will use a PPP scheme with a
partial construction support for Packages 1 and 5 from the Central Government and the Provincial Government of East
Kalimantan. The private sector will play a role as a partner for the construction of Packages 2-4 and the operations of
the toll road for all packages.
LAND ACQUISITION
The Provincial Government of East Kalimantan has allocated IDR 1.2 Trillion for land acquisition, which will be deemed
as a sunk cost and IDR 1.5 Trillion for construction. The Provincial Government of East Kalimantan has expressed its
commitment to increase the fund from Regional Budget if necessary. The Provincial Government of East Kalimantan has
sent a letter to BPJT stating that land acquisition has exceeded 75%, thus, BPJT may conduct tender. Progress in land
procurement per December 2015 had reached more than 80% and the vast majority of land is in the process of receiving
payment for monetary compensation from the Provincial Government of East Kalimantan.
NEXT STEPS
1
Implementation of investment tender in mid-2016.
2
Acceleration in procurement process for the remaining land.
3
80
Additional documents on details of land acquisition from the Provincial Government of East
Kalimantan for Bina Marga are to be included in a complete set of tender documents.
81
FOUR TRANS SUMATRA TOLL ROAD SECTIONS
16
Investment Value
Funding Scheme
Location
: Rp 31 trillion (four first priority sections)
: Assignment of PT Hutama Karya
: North Sumatra, Riau, South Sumatra,
and Lampung
Implementing Agency
: Assignment of PT Hutama Karya
Planned Construction Commencement Date : 2015 (for some sections)
Commercial Operation Commencement Date : 2016 (Section 3 of Medan - Binjai)
PROJECT DESCRIPTION
The 304 km Trans Sumatra Toll Road will connect Sumatra Island from Aceh to Bakauheni. Phase 1 consists
of 8 sections, which are divided into four initial sections: (1) Medan - Binjai, (2) Palembang - Indralaya, (3)
Pekanbaru - Dumai, (4) Bakauheni - Terbanggi Besar; and four additional sections: (5) Terbanggi Besar Pematang Panggang, (6) Pematang Panggang - Kayu Agung, (7) Palembang – Tanjung Api-Api and (8) Kisaran
– Tebing Tinggi.
The purpose of this project is to improve connectivity, reduce logistic costs, and stimulate industrial growth on
the island of Sumatra.
Feasibility Study
Has been completed
Has been completed
Constructiion
Fu
undin
ng a
ac
chie
eve
ed in
n
December 2015
Section
i 3 & 2 are in
n
prrogress
ess
Spatial Plan
Has been reg
gisttered
d
Has been issue
ssued
d
In ection
Inj
i
achi
hieved
d and
d 30%
%
was
as PT
T
L SMI’ s loa
oan))
Fu
und
ding
ggag
g
gree
eeme
ee
ent
with PT SMI has
been done
DED
Available and
Pre-feasibility
Study
Feasibility Study
Has been completed
Has been completed
Borrrow-tto-use
Permit for Forest
Area
a (IPPKH
IPPKH)
Has been issue
ssued
d
DED
EIA Documents
EIA Documents
Has been completed
Lan
and
d
Available and
A
Has been completed
completion of land
acquisition
Spatial Plan
Environmental
Permit
Acquisition
Has been registered
Has been issued
Section
i 1: 2015 – 2016
Section
i 2 & 3:
estimated
d comp
pletion
in 2016 (severall
parrcelss are
e being
valilid
dated by BPN an
nd
awaiting
i i payment off
a mon
nettary compensation by D
DG
G Bina Ma
Marga
a
B
g
82
Aug
ugust
g
2018
Fu
undiing
g sch
heme was
dee
etermine
ned
ed in
Decemb
ber 2014 (70%
of Sttatte Capiitall
completion of land
procurement
Environmental
r
Per
ermitt
Comm
mercial
c l
Op
peration
n Targett
Palembang – Indralaya Section
Medan – Binjai Section
Pre-feasibility
Study
Financial Close
Borrow-to-use
Permit for Forest
Area (IPPKH)
Not required
Land
Acquisition
Section 1: completed
in 2015
Section 2 & 3 are
projected to complete
in 2016 (several
parcels are still being
validated by BPN and
awaiting payment of
Monetary Compensation by DG Bina Marga)
83
Financial Close
Funding scheme was
determined in
December 2014 (70%
of State Capital
Injection - partially
achieved, 30% from
PT SMI’s loan)
Funding agreement by
PT SMI has been
entered into
Construction
Section 1 & 3 are in
progress
Commercial
Operation Target
Financial Close
August 2018
Funding scheme was
determined in June
2015 (45% of State
Capital Injection
55% is loan)
Construction
Section 1 & 3 are in
progress
Commercial
Operation Target
August 2018
Some creditors are
being studied
Pekanbaru – Dumai Section
Bakauheni – Terbanggi Besar Section
Pre-feasibility
Study
Feasibility Study
Has been completed
Has been completed
DED
Available and
Pre-feasibility
Study
Feasibility Study
Has been completed
Has been completed
DED
EIA Documents
EIA Documents
Available and
Completed
completion of land
procurement
Completed
completion of land
procurement
Spatial Plan
Spatial Plan
Has been registered
Environmental
Permit
Has been issued
Borrow-to-use
Permit for Forest
Area (IPPKH)
Not required
Land
Acquisition
Section 1-4: await
results of appraisal and
payment of Monetary
Compensation
for parts waiting for
acquisition.
Has been registered
but Regency Spatial
Plan still awaits
determination of forest
area to become APL
Environmental
Permit
Issued
Borrow-to-use
Permit for Forest Area
Coordination with the
Ministry of Environment and Forestry is
required to
determine status of
forest area to
become APL
Land
Acquisition
The majority of land is
inventoried.
Land acquisitions for
the four sections are
projected to complete
in 2016
84
85
Financial Close
Funding scheme was
determined in June
2015 (45% of State
Capital Injection has
not been achieved,
55% loan)
Construction
Has yet to start
Commercial
Operation Target
July 2019
Creditors are being
studied
LATEST UPDATE
Presidential Regulation No. 117 of 2015 on the Amendment to Presidential Regulation No. 100 of 2014 on Acceleration in
Toll Road Construction in Sumatra has been issued. This amendment was made to accommodate 24 sections assigned
to PT Hutama Karya, where four additional priority sections, namely Pematang Panggang – Terbanggi Besar, Kayuagung
– Pematang Panggang, Palembang – Tanjung Api-Api, and Tebing Tinggi – Kisaran are estimated to be completed
between 2018 and 2019.
Government Regulation No. 79 of 2015 on the Second Amendment to Government Regulation No. 29 of 2000 on
Construction Services Delivery has been issued. This regulation accommodates the implementation of construction for
works assigned to SOE.
The circulation of Service Level Agreement (SLA) signing for Acceleration in Construction of Toll Road in Sumatra at
the Ministerial and Gubernatorial level is in progress. This SLA is intended to obtain approval and joint commitment to
accelerate toll road construction in Sumatra through expedited licensing process, synchronization, and harmonization
of policies as well as united actions between stakeholders comprising the Minister of PWPH, the Minister of Finance,
the Minister of State-Owned Enterprise (SOE), the Minister of Home Affairs, the Minister of Agrarian Affairs and Spatial
Planning, the Minister of Environment and Forestry, the Governor of North Sumatera, the Governor of Riau, the Governor
of South Sumatera, the Governor of Lampung, and the President Director of PT Hutama Karya.
LAND ACQUISITION
The total budget needed to acquire land for the first four sections of 304 km is IDR 3.178 Trillion. Currently, land acquisition
process is underway, and there are several obstacles with regard to right relinquishment process of the land owned by
the community for Medan-Binjai section and Palembang-Indralaya section. Furthermore, Location Determination for
Development Approval Letter (SP2LP) for Bakauheni-Terbanggi Besar section has only been partially issued.
Medan – Binjai Section
Location Determination has been issued and land acquisition is at 70% of the total 17 km. The majority of
land acquired belongs to State-Owned Plantation Company II (PT PN II). At the moment, appraisal, inventory,
identification in five villages and preparation for deliberation in four villages are in progress.
Palembang – Indralaya Section
Location Determination has been issued, and land procurement has achieved 60% of the total 22 km. The
completion of administrative procedures for the handover of the land is in progress.
Bakauheni – Terbanggi Besar Section
Location Determination has been fully issued for a parcel of land that measures 140 km in length and 120 m in
width. As much as 4% of land procurement has been achieved, and appraisal as well as validation process for
the majority portion of the land needed are in now in progress.
Land procurement and construction process are divided into four (4) large groups, namely (1) Bakauheni –
Sidomulyo, (2) Sidomulyo – Kotabaru, (3) Kotabaru – Metro, and (4) Metro – Terbanggi Besar.
Pekanbaru – Dumai Section
Acquired land has reached 19.7 km of the total 130 km and another 9.5 km is in the process of payment for
Monetary Compensation by DG Bina Marga. There was a complete revision to the initial plan of the 126-km land
needed to 130 km.
NEXT STEPS
FUNDING SCHEME
1
This project uses funding scheme through the assignment to PT Hutama Karya where the Government grants State
Capital Injection for the equity portion, while the loan portion will come from domestic funding and direct lending scheme.
Land acquisition fund will be fully covered by the Central Government through the Ministry of Public Works and Public
Housing.
86
Collecting signatures for Service Level Agreement by the relevant Minister and Governor.
2
Acceleration in completion of land acquisition until the end of 2016.
87
NORTH – SOUTH JAKARTA MRT
17
Land Acquisition
Investment Value
Funding Scheme
: Rp 25 trillion
: The State Budget and Regional Budget of DKI Jakarta using
Foreign Loan
Location
: DKI Jakarta
Project Owner
: The Provincial Government of DKI Jakarta
: 2019
Location
Determination
has been
issued
Financial Close
December 2015
Construction
Commercial
Operation Projection
Phase 1:
August 2013 –
February 2019
Phase 1:
projected in August
2018 (partial)
Phase 2:
2018 – 2020
(estimation)
Phase 2:
2020 (estimation)
PROJECT DESCRIPTION
The development of Mass Rapid Transit (MRT) in the capital city is aimed to improve public transportation
facilities and reduce traffic congestion in Jakarta. The first stage of this project consists of 2 phases: (1) Lebak
Bulus - Bundaran HI and (2) Bundaran HI - Kampung Bandan.
MRT Jakarta is a public transportation that will help to resolve traffic congestion, improve mobility of the
people, reduce carbon emission and create new job opportunities in DKI Jakarta.
Pre-feasibility
Study
Phase 2: 2015
Spatial Plan
Has been registered
Feasibility Study
Phase 2: 2015
Environmental
Permit
Has been issued
Design (DED)
Phase 2: 2016-2017
Borrow-to-use-permit for Forest Area
(IPPKH)
Not required
EIA (AMDAL)
Documents
Has been completed
Other Permits
Recommendations by
Minister of Youth and
Sports for Relocating
Lebak Bulus Stadium
(December 2014);
Approval of Minister of
Finance for POLRI’s
land as a grant (March
2015)
88
LATEST UPDATE
KPPIP facilitated the acceleration in the signing of an exchange note required to ensure the execution of the loan
agreement. An intensive coordination between the Ministry of Finance, the Ministry of National Development Planning/
Bappenas, and the Ministry of Foreign Affairs is required to agree upon substance and mechanism of the loan deposit
on the Exchange Note, which is part of the loan agreement process. The Exchange Note was signed on 27 November
2015, whereas the signing of the loan agreement was on 4 December 2015.
At the moment, construction of depot, corridor, and station for Phase 1 is in progress. Moreover, there is a potential risk
of cost overrun that has not been settled. It may be charged to the Central Government or the Provincial Government
DKI Jakarta. The Finance and Development Supervisory Board (BPKP) of DKI Jakarta Province is presently conducting
an audit. Following the completion of the audit, the Provincial Government of DKI Jakarta will ask for financial inputs from
the BPKP of DKI Jakarta Province.
FUNDING SCHEME
MRT Jakarta project uses State Budget funding with foreign loan from Official Development Assistance (ODA) of the
Government of Japan amounting to IDR 14.3 Trillion. This loan is divided into three loan packages: Package 536 in the
amount of JPY 1.869 Billion, Package 554 in the amount of JPY 48.15 Billion and Package 571 in the amount of JPY
75.218 Billion.
LAND ACQUISITION
Land procurement as of December 2015 has achieved 86% of the total area needed and is likely to fall behind the
deadline due to unfinished submission of administrative evidence by the land owners for the land payment, ownership
dispute, and difficulties in meeting the land owners.
The process of land acquisition is still in progress and in need of acceleration in a number of locations encompassing
CP 101 (depot, planned corridor DK Terminal, Pasar Jumat and Lebak Bulus Station detour corridor), CP 102 (corridor,
special bridge corridor, Jl. Kartini/Simatupang corridor) and CP 103 (corridor, Blok A station, Blok M station, H. Nawi
station, and Sisingamangaraja stations).
89
NEXT STEPS
1 Expedite the audit process done by DKI Jakarta Provincial Government regarding investment funds
that have been expended and decide on the amount of additional investment needed.
2 Top down decision regarding which party is better suited to take on the additional investment
fund needed.
3
18
SOEKARNO – HATTA INTERNATIONAL AIRPORT EXPRESS RAILWAY
Investment Value
Funding Scheme
Location
Project Owner
: Rp 24 trillion
: Potential Assignment to BUMN
: DKI Jakarta and Banten
: Ministry of Transportation
: 2018
: 2022
Completion of land acquisition to reach operation target in early 2019.
PROJECT DESCRIPTION
SHIA Express Railway project serves as an alternative transportation to SHIA with a 30-minute estimated
maximum travel time from the city center to the airport. The SHIA Express Railway, with a 37 km track from
Soekarno-Hatta Airport to Halim Perdanakusuma Airport, will have stations within the city that can be easily
accessed via road and other transportation modes, and that are located close to centers of commercial
activities as well as densely populated residential areas that are connected to the MRT Jakarta transportation
system and other railway lines.
At the airport, the stations will be located near passenger terminals and at a walking distance from the
departure terminal, or from the baggage collection place and the arrival terminal.
Moreover, the SHIA Express Railway will prioritize user experience by providing passenger baggage storage,
shortening travel time and providing reliability compared to other transportation modes. This railway will also
have faster speed compared to the Commuter Line Train and will have fewer stops.
The purpose of this project is to accommodate the need for access from and to SHIA, considering the growing
capacity and passenger traffic at SHIA. The economic benefit of this project will help the improvement of
commercial and industrial activities in the surrounding area as well as create job opportunities for local
people.
Pre-feasibility
Study
Has yet to be
determined
90
Feasibility Study
Has yet to be
determined
Design (DED)
Has yet to be
determined
EIA (AMDAL)
Documents
Has yet to be
determined
91
Determination of
Funding Scheme
Assignment
planned to SOE
and Presidential
Regulation is being
made
Environmental
Permit
Spatial Plan
Regional Regulation
of DKI Jakarta No.1
of 2014 (Halim –
Palmerah – SHIA
corridor); Regional
Regulation of DKI
Jakarta No. 1 of
2012 (SHIA –
Manggarai route)
Borrow-to-use
Permit for Forest
Area (IPPKH)
Not required
MAKASSAR – PAREPARE RAILWAY
19
Investment Value
Funding Scheme
Location
Project Owner
: Rp 6.4 trillion
: State Budget (APBN)
: Makassar and Parepare, South Sulawesi
: 2015
: 2018
PROJECT DESCRIPTION
The Makassar – Parepare 144 km railway project constitutes part of the Trans Sulawesi railway network
that will connect the entire Sulawesi Island.
Land Acquisition
Has yet to be
determined
Financial Close
Has yet to be
determined
Construction
Has yet to be
determined
Commercial
Operation Target
This railway in the western part of South Sulawesi will serve the demand for passengers and goods
transportation as well as connect ports in Parepare and in Makassar.
Has yet to be
determined
IMPLEMENTATION SCHEDULE PLAN
Activities
LATEST UPDATE
Pr
The Ministry
of T
Transportation
Notice of award
The Ministry
of T
Transportation
Land Acquisition
The Ministry
of Agrarian
Affairs and
Spatial Planning
LAND ACQUISITION
Construction
Winning
Bidder
The SHIA Express Railway will need 84.68 ha land, where most of the land is owned by the Government of Indonesia.
The land owned by the private sector registered with the Ministry of Agrarian and Spatial Planning is estimated to
be 5.2 km, or 13.09 ha. The land required for Dukuh Atas Station and Manggarai Station is not owned by the private
sector. Meanwhile, the land required for three stations (Pluit, Tanah Abang and Halim) is estimated to be 16.86 ha. It is
necessary to take into account that Halim Station requires 7.2 ha residential land while Tanah Abang Station requires 0.3
ha residential land, which is not registered with the Ministry of Agrarian and Spatial Planning. The required unregistered
land is not yet included in the calculations of the total land requirement. Total estimated needs for non-government
land as well as residential area owned by the private sector are ~IDR 2.3 Trillion. The land acquisition and resettlement
processes will refer to Law No. 2 of 2012 and Presidential Regulation No. 71 of 2012.
Operation
Winning
Bidder
At the moment, the project is being temporarily put off for a further feasibility study. The study on funding, legality, and
project technicality has been handed over to the Ministry of Transportation.
FUNDING SCHEME
Under the direction of the Minister of Transportation, the funding of this project is likely to adopt SOE Assignment
scheme. A Presidential Regulation stipulating the assignment to SOE is being made.
FUNDING SCHEME
This project will use State Budget through the Ministry of Transportation.
LAND ACQUISITION
The Central Government has allocated IDR 350 Billion for the land acquisition compensation for the length
of 70 km. The Ministry of Transportation estimated that the total amount needed for land acquisition is Rp
2.4 trillion.
NEXT STEPS
Project implementation starts once the Presidential Regulation governing the assignment to SOE is issued.
92
93
LATEST UPDATE
At the moment, fabrication and laying of railway lines along the prepared sections are in progress. In 2016, the track will
expand to Makassar and to Parepare from Barru Regency.
NEXT STEPS
1
20
KUALA TANJUNG INTERNATIONAL HUB SEAPORT
Investment Value
Funding Scheme
Location
Project Owner
: Estimated at Rp 30 trillion
: Potential for PPP
: Kuala Tanjung, North Sumatera
: 2017
: 2020
Completion of railway lines construction of Stage I.
2 Planning of construction of railway line extension in the direction of
Makassar and Parepare from Barru Regency.
PROJECT DESCRIPTION
The Kuala Tanjung international hub port aims to create an entrance for logistic flow to the western region
of Indonesia. Based on the assessment result conducted by the Ministry of Transportation in 2015, the
development of this seaport will increase the volume of container traffic up to 12.4 million TEUs in 2039.
The increased volume of container traffic comes from the demand from Sei Mangkei Special Economic Zone
(SEZ) to Jambi Province, and the seaport is projected to obtain additional demand from four competitors,
namely Port of Singapore, Port of Tanjung Pelepas, Port Klang, and Penang Port.
It is expected that with this international hub, Indonesia may benefit from seaport demands that have long
been enjoyed by Singapore and Malaysia. Based on the 2012 Kuala Tanjung Port Plan, the construction of
this seaport will accommodate cargoes to support the development of the Sei Mangkei SEZ and the Port
of Belawan.
Pre-feasibility
Study
December 2013
Funding Scheme
Determination
Has yet to be
determined
94
Feasibility Study
2016
Investment
Tender
2016
DED
2016
Feasibility
Support/ VGF
Awaits results of
feasibility study
EIA
Documents
2016
Guarantee
Awaits results of
feasibility study
95
Environmental
Permit
Spatial Plan
Has been registered
Financial Close
Construction
Has yet to be
determined
2017
Borrow-to-use
Permit for Forest
Area (IPPKH)
Unknown
Land
Acquisition
Land acquisition
for the land-side area
Operation
Projection
2020
BITUNG INTERNATIONAL HUB PORT
21
Investment Value
Funding Scheme
Location
Project Owner
Construction Date
: Estimated at of Rp 34 trillion
: Potential for PPP
: Bitung, North Sulawesi
: 2017
: 2019
PROJECT DESCRIPTION
This seaport is chosen as an International Hub Seaport in the Eastern Region of Indonesia with the following considerations:
LATEST UPDATE
The Ministry of Transportation has conducted a feasibility study for the construction of Kuala Tanjung International Hub
Port with a Public-Private Partnership (PPP) funding scheme. However, the feasibility study still needs improvement to
find the best and fastest funding scheme among the following options: State Budget, assignment of SOE (PT Pelindo I)
or a PPP scheme. KPPIP will allocate budget to the feasibility study improvement.
FUNDING SCHEME
The funding scheme has not been determined. This project has a potential of adopting a PPP scheme. The role of the
government and that of the private sector will be determined later following the completion of the study.
1. Growth in the Eastern Region of Indonesia has a higher potential compared to the Western Region
of Indonesia;
2. The logistic dynamics in the Eastern Region of Indonesia are expected to grow exponentially.
This seaport will support the development of Bitung Special Economic Zone (SEZ), which is declared as one
of the Government of Indonesia’s priorities. In addition to the above, the existence of Bitung International
Hub Port will also support industrial activities in the eastern region of Indonesia, including Ambon and Ternate
(agriculture, industry and mining) as well as Samarinda, Balikpapan, Tarakan and Nunukan (coal, petroleum
and plywood).
LAND ACQUISITION
Currently, land acquisition process has yet to be determined and is still waiting for to the completion of the study.
NEXT STEPS
Pre-feasibility
Study
December 2013
Feasibility Study
2016
1 To encourage the Ministry of Transportation to accelerate
the preparation of the Kuala Tanjung International Hub Port
project through coordination with KPPIP.
2 To revise to the policy in the port sector with regard to the synchronization
of the Port of Belawan, the Port of Tanjung Sauh (Batam) as well as the
effective implementation of the cabotage system.
3 To prepare regional masterplan to be the strategic reference for
regional development in the future.
LATEST UPDATE
The location has been determined in the existing port location. If capacity expansion is necessary, then it will
be expanded to the location of Bitung SEZ.
The government of the People’s Republic of China is interested in establishing cooperation with the
Government of Indonesia to develop Bitung International Hub Port and the surrounding SEZ. On the other
hand, the Government of South Korea also conducts a study with regard to the development of Bitung SEZ.
Under the direction of the Minister of Transportation, part of project construction will be assigned to PT
Pelindo IV; however, the determination of development scheme needs to be made in writing.
96
97
FUNDING SCHEME
This project has a potential of adopting PPP scheme. The role of the government and that of the private sector will be
determined later following the completion of the study.
LAND ACQUISITION
22
REVITALIZATION OF TEN (10) AIRPORTS
Considering the dynamics encountered during project development that has been stagnant
throughout 2015, KPPIP decided to remove this project from KPPIP priority projects.
Currently, land acquisition process has yet to be determined and is still waiting for the completion of the study.
NEXT STEPS
1
Following the studies by the Government of the People’s Republic of China and the Government
of South Korea, it is necessary to accelerate the issuance of top down instructions with regard
to the development scheme of Bitung International Hub Port and Bitung SEZ in the future to
provide a clear deadline for the implementation of the Bitung International Hub Port project.
2
98
Preparation for regional masterplan as the strategic reference for future
regional development.
99
100
KPPIP’S
FUTURE PLAN
KPPIP’s
KPPIP’s Report
Report for
for August
August 2015
2015 –– December
December 2015
2015
101
KPPIP’s Future Plan
During the first year of its operation, KPPIP made every endeavour to fulfill all mandates it received under Presidential
Regulation No. 75 of 2014. Below is the summary of the completion of the six mandates including the highlights of the
achievement through out 2015:
KPPIP’s achievements in 2015: Having completed 6 mandates as stipulated in Presidential Regulation No. 75 of
2014, particularly in increasing project preparation quality and encouraging debottlenecking, improvement to
policies/regulations as well as capacity development
1. Improvement in Project
Preparation Quality
2. Model Projects with quality as per
International Pre-Feasibility Study standard
and provision of other project preparation
facility
3. Determination of Funding
Scheme
Preparation
of OBC
Quality
Guidelines
Preparation of
VfM using
quantitative
method for toll
road sector
4. Debottlenecking of and Acceleration
in the Project
Issuance of Determination
of Location for PLTU
Batang accelerated to
July 2015
Consultant procurement to
review the proposal for
Jakarta-Bandung High
Speed Railway from
Japan and PRC
Encouraging acceleration
in carrying out a tender for
investment in
Balikpapan-Samarinda
Toll Road and
Manado-Bitung Toll Road
from Q4 to become Q2 of
2015
2
Encouranging Minister of
Transportation to determine
funding scheme for SHIA
Express Railway (resolving
uncertainty over PPP
scheme)
Encouraging Determination
of funding scheme for
South Sumatra LRT under
Perpres No. 116 of 2015 on
Assignment to SOE
Preparation of AMDAL
for Panimbang-Serang
Toll Road in order for the
land to be procured in
2016
5. Improvement in policy and
regulations
Issuance of regulations
that support PPP namely
MoF Regulation on
Availability Payment and
Regulation of Head of
LKPP on procurement of
Business Entity for PPP
scheme
6. Capacity Development
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Implementing Induction
Program for KPPIP’s
PMO
Issuance of Regulation of
MoAASP/Head of LMA
No. 6 of 2015 on Land
Acquisition in order to adjust
to the Revision of Perpres
103
Achievements in 2015 are in line with KPPIP’s roadmap1 prepared for a period of three years (2015 – 2017). Thus, the
target and strategy as summarized on the roadmap below are determined as a relevant target for KPPIP to achieve and
meet in 2016.
KPPIP’s Future Plan: Focus and Target of KPPIP’s Achievement for 2016
Meanwhile the strategies for implementation in 2016 have been broken down further into KPPIP’s business plan. The
business plan has been approved by the Implementation Team. To execute the entire business plan, KPPIP has obtained
a principle approval for a budget amounting to Rp 88.1 Billion. The following is KPPIP’s business plan for 2016:
FOR
KPPIP’s Roadmap of 2015 – 2017 has already been described in the performance report of the period of July 2014 – June 2015; changes have yet to be
made to such version.
1
104
Category A Project is the project that needs more considerable efforts (more than 2 action plans). Category B Project is the project that requires 1 to 2 action
plans to achieve progress.
2
105
106
107
108
Glossary
Glossary
AMDAL or EIA
Environmental Impact Assessment
ANDAL
Environmental Impact Analysis
A/P
APBD
Regional Budget
APBN
State Budget
Bappeda
Regional Development Planning Agency
Bappenas
National Development Planning Agency
BBM Fuel Oil
BBWS
Large River Basin Organization
BED
Basic Engineering Design
BLHD
Regional Environmental Protection Agency
BOD
Biological Oxygen Demand
BOTBuild-Operate-Transfer
BPJT
Indonesia Toll Road Authority
BPN
National Land Agency
BUMD
Regional Government-Owned Enterprise
BUMN or SEO
State-Owned Enterprise
B2B
Business to Business
CJPP
Central Java Power Plant
DED
Detailed Engineering Design
EPC
Engineering, Procurement and Construction
FBC
Final Business Case
FEED
Front-End Engineering Design
FS
Feasibility Study
GRR
Grass Root Refinery
G2G
Government to Government
HSR
High Speed Railway
HVDC
High Voltage Direct Current
IFC
International Finance Corporation
IPAL or WWTP
Waste Water Treatment Plant
IPP
Independent Power Producer
IPPKH
Borrow-to-use Permit for Forest Area
JICA
Japan International Cooperation Agency
JSS
Jakarta Sewerage System
KEK or SEZ
Special Economic Zone
KLHS or SEA
Strategic Environmental Assessment
MoAASP
Ministry of Agrarian Affairs and Spatial Planning
MEMR
Ministry of Energy and Mineral Resources
MoNDP
Ministry of National Development Planning
MoPWPH
Ministry of Public Works and Public Housing
KfW
Kreditanstalt für Wiederaufbau (German Development Bank)
KKPPI
National Committee for the Policy on the Acceleration of Infrastructure Provision
KPPIP
Committee for Acceleration of Priority Infrastructure Delivery
KSP or EOP
Executive Office of the President
KUR
Credits for Micro, Small and Medium Businesses
kVKilo-volt
LoI
Letter of Intent
LKPP
National Public Procurement Agency
LRT
Light Rail Transit
MoU
Memorandum of Understanding
MRTJ
Mass Rapid Transportation Jakarta
MWMegawatt
PTPIN or NCICD
National Capital Integrated Coastal Development
OBC
Outline Business Case
ODA
Official Development Assistance
PDAM
Regional Drinking Water Company
GDP
Gross Domestic Product
PDF
Project Development Fund
Permenko
Regulation of the Coordinating Minister
Perpres
Presidential Regulation
PHLN
Foreign Loan/Grant
PPA
Power Purchase Agreemment
PJP
Implementing Agency
PJPK
Government Contracting Agency
PLTA
Hydroelectric Power Plant
PLTM
Micro-hydroelectric Power Plant
PLTU
Coal-Fired Power Plant
PMO
Project Management Office
PMK
Regulation of the Minister of Finance
PMN
State Capital Injection
PP
Government Regulation
VAT
Value Added Tax
KPBU or PPP
Public-Private Partnership
PT HBAP
PT Huadian Bukit Asam Power
PT IIF
PT Indonesia Infrastructure Finance
PT PGN
PT Perusahaan Gas Negara (State-Owned Gas Transmission and
Distribution Company)
PT PII or IIGF
PT Penjaminan Infrastruktur Indonesia (Indonesia Infrastructure
Guarantee Fund)
PT PLN
PT Perusahaan Listrik Negara (State Electricity Company)
PTPN
PT Perkebunan Nasional (State-Owned Plantation Company)
PT PwC
PT Pricewaterhouse Cooper Advisory Indonesia
PT SMI
PT Sarana Multi Infrastruktur
PSN
National Strategic Project
RDMP
Refinery Development Master Plan
RI
Republic of Indonesia
RPJMN
National Medium-Term Development Plan
PRC
People’s Republic of China
RTRW
Regional Spatial Plan
RUPTL
Ten-Year Electricity Infrastructure Development Plan
SBOTSupported-Build-Operate-Transfer
SHIA
Soekarno-Hatta International Aiport
109
List of Figures
Glossary
SK
SLA
SOP
SPAM
SPC
SPV
TA
TCUN
TI or IT
Timja
UP3KN
UGR
USD
VfM
VGF
WTP
110
Decision Letter
Service Level Agreement
Standard Operating Procedure
Drinking Water Supply System
Special Purpose Company
Special Purpose Vehicle
Transaction Advisory
State-Acquired Abandoned Land
Information Technology
Working Team
National Electricity Development Program Implementation Unit
Monetary Compensation
United States Dollar
Value for Money
Viability Gap Funding
Water Treatment Plant
Figure 1
Figure 2
Duties and Mandates from KPPIP in accordance with Presidential
Regulation No. 75 of 2014
Increasing support for the development of Infrastructure in Indonesia
111
112
113

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