MINISTRY OF TRANSPORTATION REPUBLIC OF INDONESIA INVESTMENT APPORTUNITIES IN INDONESIA S TRANSPORTATION

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1 MINISTRY OF TRANSPORTATION REPUBLIC OF INDONESIA INVESTMENT APPORTUNITIES IN INDONESIA S TRANSPORTATION Seoul, November 27,

2 OUTLINE GEOGRAPHIC AND SOCIAL ECONOMIC CONDITION OF INDONESIA STRENGHTENING NATIONAL CONNECTIVITY TO DEVELOP INDONESIA S ECONOMIC CORRIDORS CONNECTIVITY AND GROWTH CONNECTING CITIES THROUGH INTEGRATED TRANSPORT NETWORK POTENTIAL PROJECT FOR GOVERNMENT AND BUSINESS PARTNERSHIP How To Invest In Transport Sector 2

3 GEOGRAPHIC AND SOCIAL ECONOMIC Indonesia is a Strategic Country due to is location in international crossing: India and Pacific Ocean; Asia and Australia Continent GEOSPATIAL Territorry : 7,8 Million (M) km² Water : 5,9 M km² - Archipelagic water : 2,9 M km² - Territorial sea : 0,3 M km² - Exclusive Economic Zone : 2,7 M km² Land Area : 1,9 M km² Province : 34 Provinces Island : 17,504 Islands Coastlines : 94,156 km The 4th longest Coastlines In the world after Canada, USA, and Russia, Located between Asia and Australia Continent SOCIAL ECONOMIC Population : 252,2 Million Population Growth : 1,35% Human Development Index: 73,8 G D P : ,7 T GDP per-capita : 41,8 M Economic Growth : 5% 3

4 STRENGHTENING NATIONAL CONNECTIVITY TO DEVELOP INDONESIA S ECONOMIC CORRIDORS Connectivity Economic Corridor: The area to be targeted development initiatives and infrastructure projects to create and strengthen the economic base and competitive integral in achieving sustainable development. 4

5 CONNECTIVITY AND GROWTH STRATEGY AND POLICY 2 5

6 INTEGRATED TRANSPORT NETWORK CONNECTIVITY GROWTH Better Safety and Security System Better Service System Capacity Development 6

7 Why Indonesia? Indonesia has shown progressive achievement in the past years 129 Indonesia s Ease of Doing Business Rank, Target in 2019 Rank Source BKPM 7

8 14 POTENTIAL PROJECT FOR GOVERNMENT AND BUSINESS PARTNERSHIP Role Paradigm Shift of Government, Private Sector, and State- Owned Enterprise Private Government & Business Partnership Joint Venture State own enterprise State own enterprise National Budget/ Regional Budget Railway: 3 Project - USD 1,3B 1. Bandung LRT (37 M) 2. Makassar- Pare- Pare Railway (376 M) 3. Surabaya- Tram (870 M) Sea Transport : 9 Project - US 5,8B Air Transport : 2 Project - USD 1.66B 1. Kuala Namu Internasional Airport (1.53 B) 2. Lombok International Airport ( 126 M) 1. Kuala Tanjung International Hub Port (2,8 B) 2. New Priok Port Development (730 M) 3. New Deep Port Development in Kijing, Phase 1 (382 M) 4. Gili Mas New Port (153 M) 5. Port of Benoa (158 M) 6. Makassar New Port, Phase 1 (575 M) 7. Sorong- Seget Port Development (180,5) 8. Cikarang Bekasi Inland Waterways (374 M) 9. New Deep Port Development in Tanjung Carat (462.8 M) 8

9 Government of Indonesia PPP Regulation The Government of Indonesia (GOI) has taken a series of major step to refine the PPP policies and regulatory frame work in order to improve the attractiveness and competitiveness of PPP program there are : 1. Ministerial Regulation of Finance Number 190 Year 2016 Regarding Availability Payment on PPP In Infrastructure Provision 2. MOT PPP Internal Guideline 3. Ministerial Regulation of National Development Planning / Head of National Development Planning Agency Number 4 Year 2015 regarding Operational Guideline for the PPP in Infrastructure Provision 4. Head of National Procurement Agency (LKPP) Regulation Number 19 Year 2015 Regarding Guideline for Procurement of Business Entity on PPP in Infrastructure provision 5. Regulation of Availability Payment 6. Ministerial Regulation of Finance Number 190 Year 2016 Regarding Availability Payment on PPP In Infrastructure Provision 7. Ministerial Regulation of Home Affair Number 96 Year 2016 Regarding Availability Payment on Regional PPP in Infrastructure Provision 9

10 How To Invest In Transport Sector 10

11 PPP PROCESS IN MOT PPP Joint Office advice contributions LKPP as transaction probity DIRECTORATE GENERAL Directorate General Transport Cooperation Bureau PT. PII conducting Government Gurantee PRE- QUALIFICATION (PQ) REQUEST FOR PROPOSAL (RFP) PPP Agreement Signing Project identification Preliminary study Prepare OBC Bid Award Financial Closing up Planning Stage Preparation Stage Transaction Stage 11

12 THANK YOU KEMENTERIAN PERHUBUNGAN Jalan Medan Merdeka Barat No. 8 Jakarta Telp , Fax