1. INDONESIA TRANSPORTATION SECTOR OVERVIEW
Infrastructure Forum 4 December 2012
Den Haag
Bambang Susantono, Ph.D.
Vice Minister for Ministry of Transportation
Republic of Indonesia

2. Snapshots of the country
2

3. Indonesia Today and in 2030
16th largest economy in the world 9th largest economy in the world
45 million members of the 135 million members of the
consuming class consuming class
53% population in cities producing 71% population in cities producing
74% of GDP 86% of GDP
55 million skilled workers 113 million skilled workers needed
$ 0.5 trillion market $ 1.8 trillion market opportunity
opportunity in consumer services, in consumer services, agriculture and
agriculture and fisheries, resources fisheries, resources and education
and education
Source: McKinsey Global Institute
33

4. GDP and urbanization pattern in the future
86 % GDP
comes
from
Urban
Areas and
63% from
midsize
cities
4

5. Indonesia GDP growth 2010 - 2030
5

6. More than just population size ...
6

7. The World Embrace Indonesia Performance
7

8. Indonesia to be the 4th largest economy in 2050
World’s 10 largest economies, 2010 (USD Tn, PPP) World’s 10 largest economies, 2050 (USD Tn, PPP)
2012 – World’s 15th
(USD 1,12 Tn, PPP)
8

9. Breakthrough of MP3EI
Master Plan Acceleration and Expansion of Indonesia Economic Development (MP3EI) is
intended to accelerate and foster economic development across the nation through 6 (six)
economic development corridors. This master plan implements the spirit of “not business as
usual”.
Source: MP3EI, 2011
9

10. MP3EI
.... THE ECONOMIC MASTERPLAN
Vision
MAIN STRATEGY
ECONOMIC CORRIDORS DEVELOPMENT
STRENGTHENING THE NATIONAL CONNECTIVITY
STRENGTHENING HR CAPABILITY AND SCI - TECH
10

11. Currently, indicated MP3EI investments are ~ Rp. 4,930 T (USD 500 billion)
including ~ Rp. 2,373 T (USD 250 billion) for infrastructure development
Indicated MP3EI investment (Rp T)* Indicated Infrastructure investment (Rp T)*
4.930 2.373
604 156
78
208 201
416 205
1.109
1.156
1.460
1.133 577
Sumatera Jawa Kalimantan Bali - Papua Total Sumatera Jawa Kalimantan Bali - Papua Total
Sulawesi NT - Sulawesi NT -
Maluku Maluku
* As of April 2012
11
11

12. Implementation So Far (After 1 Year)
In billion
Real Sector Infrastructure
USD
Planned 27.8
251 18.8
170 46.7
58 projects 56 projects 114 projects
Realization 21.6
194 18
162 39.6
49 projects 50 projects 99 projects
In billion
USD Real Sector Infrastructure
Planned 33.9
305 7.2
65 41.1
16 projects 39 55 projects
projects
(Up to July 2012) Realization 9.8
89 5.7
51 15.5
9 27 36 projects
projects projects
12

13. Indonesia offers huge investment opportunity:
Palm Oil Industry
Sei Mangke (Medan,
North Sumatera)
13

14. Sei Mangkei Special Economic Zone (SEZ) provide various
opportunities for investment
Several advantage of Sei Mangkei SEZ
 Regulated under the Government Law No 29/2012
1. 40 km to the Kuala Tanjung Port . Under the
 There are three phase of development in Sei MP3EI program, this port will be developed to a
Mangkei SEZ: global hub port.
1. Develop 104 Ha Area 2. Nearby the “Gunung Bayu – Petlanaan Station”
2. Expand to 640 Ha; (principal permit already issued, railway track
currently waiting for the Right to Build permit) 3. Already produced 30 Ton / hour of Fresh Fruit
3. Developing its area to total 2002,77 Ha Bunches (FFB) since 1997
4. Abundance in water supply. Water are supplied
 There are three investor already commited: from the Bah Bolon Rover( water debit 37,3
1. PT Sinergi Oleo Nusantara (USD 415 Million on m3/second)
biodiesel – bCarotene integrated – industry)
5. Nearby to several Large Palm Oil Plantations
2. PT Cipta Buana Utama Mandiri (Rp 0,4 T on fertilizer (70 km radius):
industry)
3. PT Unilever Indonesia (Rp 1,2 T on oleochemicals 1. PTPN III = 165 Ton FFB/hour
industry) 2. PTPN IV = ± 300 Ton FFB/hour
3. Private = ± 104 Ton FFB / hour
14

15. Sei Mangkei SEZ will be supported by infrastructure
development
There 18 infrastructure projects related with MP3EI
which will support Sei Mangkei SEZ ... Examples:
 Railway Plan
Rp Billion Road and
Seaport Railway Bridge Energy Energy Total
5,644 699
 Road Plan
2 4
projects projects
4,148
91 39
10 1 1 10,621
projects project project 18
projects
15
15

16. Transport Infrastructure Investment Needs in
Economic Corridors
Sumatera EC
(USD 9,279 Million): Kalimantan EC
(USD 5,366 Million): Sulawesi EC
• Railway: USD 7,826 Million (USD 671 Million):
• Port: USD 1,006 Million • Railway: USD 3,913 Million
• Airport: USD 447 Million • Port: USD 1,118 Million
• Airport: USD 335 Million • Port: USD 671 Million
Sumatera Sulawesi
Economic Kalimantan Economic
Corridor Economic Corridor
Corridor
Papua – Kep.
Maluku Economic
Corridor
Java Economic
Corridor Bali Nusa Tenggara
Economic Corridor
Java EC
(USD 18,558 Million): Papua-Kep. Maluku EC
• Railway: USD.11,738 Million (USD 6,618 Million) :
• Port: USD 5,031 Million
Bali - Nusa Tenggara EC • Port: USD 6,596 Million
• Airport: USD 1,789 Million
(USD 1,677 Million): • Airport: USD 22 Million
• Railway: USD 1,342 Million
• Airport: USD 335 Million
Source : MP3EI, 2011 16

17. Acceleration of Transport Infrastructure Development
Non -Cost •State Budget
Recovery •Local Budget
MP3EI Project
Public Tender / Right To
Transport Infrastructure Match
PPP •Law 23/2007 on Railway
•Law 17/2008 on Shipping
Cost •Law1/2009 on Aviation
No Infrastructure Investment Est. # of •GR 67/05
Need (USD Projects Infrastructure Recovery •GR 13/10
•GR 56/11
Million) Project Presidential
SOE Special
1 Ports and Inland 13,080 92 Asssignment Regulation on
Waterways SOE Special
Assignment
2 Airports 3,577 14
Private
3 Railways 36,445 25 Licencing
Infrastructure
Total 53,102 131 (Private Purpose)
•Special Airports
•Special Ports, Special Terminals
•Special Railways
17

18. Private Sector Involvement Is Made Possible through
Regulatory Reform in Transport Sector
Previous Regulations New Regulations
• Overlapping roles of regulator, • Clear separation of role between
operator and contracting regulator, operator & contracting
agency agency
• Monopolistic / Single Provider • Multi-operator
• Limited access for Private • Wider access for the involvement of
Sector Private Sector
• Centralized • Decentralized
• More on supply approach • Combination of accessibility and
market-driven approaches
• Minimum access for the
Government Support • Wider access for the Government
Support
18

19. Three Ways of Private Sectors Involvement in
Transport Infrastructure Development
Investments in
Transport Sector
Special Purpose Transport SEZ/FTZ Transport Public / Commercial
Infrastructure Infrastructure Transport Infrastructure
• Infrastructure specially developed for the • Infrastructure to be used by
• Infrastructure is located in the
purpose of a business entity and may public and commercially
Special Economic Zones (SEZ)
operate exclusively for the business oriented (tariff applied)
or in Free Trade Zones (FTZ)
entity.
• Several incentives such as • May be solicited (proposed
• Usually unsolicited, i.e. initially proposed reduced tax rates by the GoI) or unsolicited
by the business entity (private sector) • More relaxed restrictions
(compared to the Negative • Ministry of Transport prepares
• Ministry of Transportation reviews the Investment List) the project documents and
feasibility study and other technical tender documents, including
• More incentives and exceptions
matters, including safety issues feasibility study
for the projects in the Bounded
Zones (Kawasan Berikat)
• The investment procedure for the special • The business entity is chosen
purpose transport is done through the • The investment procedure is through TENDER (in
LICENCING (business licence, location through simplified integrated accordance to Presidential
licence, construction licence, and LICENCING from the FTZ/SEZ Regulation No. 56/2011)
operation licence). administrators 19

20. Government had provided many endorsements and incentives in
order to attract private invesments
Several government supports and incentives are in ... Whilst the government is working to prepare the potential
place to attract more investors ...... infrastructure projects to be offered to the private sectors.
 Geothermal Fund: reducing the investor risks
Tax Holiday during exploration activities
Facility
 Presidential Regulation no. 71/2012:
providing clear mechanism and duration of
every stages in land acquisition process
PPP Scheme
Viability Gap
and
Fund
Regulation  Viability Gap Fund: government support to
Government increase the financial feasibility for
supports and infrastructure projects. Some infrastructure
incentives sector may have this facility such as toll road,
water sector, etc
 Land Capping: government support to reduce
Land
Geothermal the risk due to the unpredicted and unavoidable
Procurement
Regulations
Fund increasing land price
20
20

21. Recent amendment on Presidential Decree No. 67/2005
(Presidential Decrees No. 56/2011), had eased PPP from
straining regulations
There are several changes that have been ... simultaneously supported with
made through PD No. 56 / 2011 ... government programs
 Permits unsolicited proposal  Project Development Facility: to fund
feasibility studies. given as revolving
fund to be repaid by winning bidder
 Easier tender process
 Land Capping: To cover the risk of
increasing cost of land acquisition
 Allows Ministry of Finance to give above certain level.
guarantees through appointed
 Land Revolving Fund: Provide
institutions bridging finance for land acquisition
 Allows SOE’s to become the  Guarantee Fund: provides guarantee
for risks better covered by government
contracting agencies
 Viability Gap Fund: provides financial
support in the form of grants, one tie or
deferred, to make them commercially
viable
21

22. Government have been vigorously providing support in every
step of PPP process
Fiscal support given along PPP process
Preparation Bidding Implementation
PDF Government
(Project Development Land Fund Guarantee Infrastructure Fund
Facility)
Project Development Two types of Land Fund: Guarantee fund provides • Takes part in financing a
Facility (PDF) will be used • Land Revolving Fund: guarantee for risks better commercially viable
by CAs to fund feasibility Provide bridging finance covered by government project
studies, and is essential to for land acquisition • e.g. political, price, – Can be as debt, equity
Objective ensure initiation and land acquisition delay or credit
• Land Capping: Cover risk
implementation of projects of increasing cost of land • Based on Perpres 78 / enhancement
– PDF given as 2010 and Permenkeu guarantees
revolving fund to be 260/PMK.011/2010
repaid by winning
bidder
PT SMI (PT Sarana Managed by Government PT PII (PT Penjaminan PT IIF (Indonesia
Multistruktur Indonesia) Investment Unit (under Min. Infrastruktur Indonesia) Infrastructure Fund), a
Providing Finance) and forwarded subsidiary under PT SMI
Party through Toll Road
Regulatory Agency (under PT IIF
Min. Public Works)
22
22

23. TRANSPORTATION SECTOR INVESTMENT CLIMATE
23

24. Opportunities in Air Transport Sector
Airline penetration levels
Population
• With a population of more than 240 (m)
232
240 87 92 28 67 5
496
million, and with major airports
handling more than 68 million
passengers in 2011, Indonesia
presents itself as an immense
aviation opportunity as one of the
fastest growing domestic air traffic
markets in the world.
• Domestic air passengers grew on
average 12.1% per year from 2006 to Source: Euromonitor
2011, while international air Indonesian Airports – Annual Domestic & International
Passengers 2006 to 2011
passengers grew 22.4% annually
within the same period.
• ASEAN Open Skies in 2015 will
further increase the demand of air
travels
Source: DGCA, 2011 24

25. Emerging economies drive strong travel growth
• Worlds air transport double every 15 years and will double again in the next
15 years
• Indonesian air transport is forecast to double within 10 years
Source: Airbus, 2012 25

26. Forecast for the Indonesian air transport sector
Source: Airbus, 2012 26

27. Over-capacity Problem at Indonesia Major Airports
Existing pax. Exixting capa. Pax./capa.
Airport
(million/year) (million/year) (%)
Medan 6.2 1 620.00
Pekanbaru 1.9 0.7 271.43
Tg. Pinang 0.15 0.1 150.00
Pontianak 1.5 0.875 171.43
Jakarta 51.5 22 234.10
Bangka 0.95 0.35 271.43
Jambi 0.8 0.25 320.00
Bandung 0.86 0.35 245.71
Palembang 2.1 1 210.00
Padang 1.8 1 180.00
Ngurah Rai 11.1 8 138.75
Surabaya 12 9 133.33
Sepinggan 5.1 1.4 364.29
Semarang 2 0.9 222.22
Banjarmasin 2.6 1.3 200.00
Kupang 0.93 0.26 357.69
Yogyakarta 3.7 1.1 336.36
Source: AP I & II, 2011 27
27

28. Airports Supporting MP3EI
Year 2020 International Year 2030 International
Domestic Domestic
• International airports to serve passengers and cargoes to other countries
• Domestic airports to become feeders for those international airports
28

29. Investment Schemes in The Airport Infrastructure
Development
Existing Commercial
State Owned Enterprises
Airports
(Angkasa Pura I & II)
Development
Airport Greenfield
Infrastructure Public Private Partnership
Development Airports (PPP) scheme
Non-Commercial
Airports (small Government
airports, airstrips,
etc.)
29

30. Existing Commercial Airports Terminal Development
Existing Existing Additional Total Capacity
Pax./Capa.
Airport pax. Capa. Capacity capacity expansion
million/year million/year (percent) million/year million/year (percent)
Angkasa Pura 2
Kualanamu - Medan 6.2 1 620% 8 9 900%
St. Syarif Kasim II - Pekanbaru 1.9 0.7 271% 2.5 3.2 457%
RH. J Fisabilillah - Tg. Pinang 0.15 0.1 150% 1 1.1 1100%
Supadio - Pontianak 1.5 0.875 171% 3.2 4.0 466%
Soekarno Hatta - Jakarta 51.5 22 234% 40 62 282%
Depati Amir - Bangka 0.95 0.35 271% 1.3 1.65 471%
Sultan Thaha - Jambi 0.8 0.25 320% 1.5 1.75 700%
Husein Sastranegara - Bandung 0.86 0.35 246% 4 4.35 1243%
St. Mahmud Badarudin II - Palembang 2.1 1 210% 2.5 3.5 350%
Angkasa Pura 1
Ngurah Rai - Bali 11.1 8 139% 13 21 263%
Juanda - Surabaya 12 9 133% 4 13 144%
Sepinggan - Balikpapan 5.1 1.4 364% 10 11.4 814%
Ahmad Yani - Semarang 2 0.9 222% 3 3.5 389%
Syamsuddin Noor - Banjarmasin 2.6 1.3 200%
Eltari - Kupang 0.93 0.26 358%
Adi Sucipto - Yogyakarta 3.7 1.1 336%
Operating in 2012
Operating in 2013
Source: AP I & II, 2011 Kualanamu Airport Bandung Airport Ngurah Rai Airport
30

31. Several Planned Greenfield Airports
Jakarta Multiple Airport
New Yogyakarta Airport New Bali Airport
31

32. New Non-Commercial Airport Development Plan
Miangas
Medan Baru
Muara Teweh Waisai
Waghete Baru
Sumarorong
Kamanap
Tojo Una2 Sinak Baru
Morowali
Muara Bungo
Buntu Kunik
Kuffar-Seram
Namniwel
Segun
Enggano Bone
Saumlaki Baru
Pekon Serai
Bawean Tual Baru
Werur
Moa
Operating in 2013
Operating in 2014
Total Budget: ±USD 224 million
Operating in 2015
32

33. Opportunities in Railway Transport Development
Source: National Railway Master Plan, 2010
33

34. Freight Access Rail to Port Development Plan
Coal,
Petrochemical Petrochemical
Industrial Area Industrial
Metropolitan Area
Jakarta Food
Metropolitan
Surabaya Manufacturing
Complex
Legend
Operating rail
Built rail by 2030
Planned rail
Built High Speed Train (HST)
by 2020
Planned High Speed Train (HST) Dockyard
(biggest in Indonesia)
Network Development and Freight Access Rail to Port Services:
No Program Period
1 Tanjung Priok (DKI Jakarta) 2011-2013
2 Cirebon (West Java) 2011-2016
3 Tanjung Perak (East Java) 2011-2014
4 Tanjung Emas (Central Java) 2012-2015
5 Bojanegara (Banten) 2016-2018
34

35. Freight Access Rail to Port Development Plan
Network Development and Freight Access
Rail to Port Services:
No
Program Period
.
Rubber, CPO 1 Lhokseumawe (NAD) 2018-2020
2 Belawan (North Sumatra) 2011-2012
3 Tanjung Api-api (South Sumatra) 2018-2023
CPO 4 Dumai (Riau) 2019-2023
5 Teluk Bayur (West Sumatra) 2021-2025
6 Panjang (Lampung) 2018-2023
Operating rail
CPO, Coal
Built rail by 2030
Planned rail
35

36. Muara Wahau – Bengalon Railway Development,
East Kalimantan
36

37. Opportunities in Sea Transport Sector
MALAHAYATI
LHOKSEUMAWE Miangas
Karatung
Marore
BELAWAN Kakorotan
MALAYSIA Kawio Essang Geme
Rainis
Ranai Beo Melonguane
Matutuang
Sedanau NUNUKAN Kawaluso Lirung
Mangarang
Tapak Tuan Lipang
Tarempa
TARAKAN
P. Simeulue Letung Midai Makalehi
P. Banyak BAGANSIAPIAPI Serasan TANJUNG SELOR Berebere
Pehe Daruba
Lahewa
Afulu DUMAI Biaro Dama Tobelo
SIBOLGA BATAM Lolasita P. Mafia
Solanakak SINTETE TOLI TOLI BITUNG Mayau Wasilei Wayamli
Sirombu
PEKANBARU TG. PINANG Bicoli Buli
Sehe Tifure
Tl.Dalam SIAK Tambelan SANGKULIRANG Moti Peniti
Gemia
Werur
Boluta BENGALON GORONTALO
Gita
Saribi
P. Tello TEMBILAHAN SENGATA Weda Miosbipondi
Saeru Popolii Kayoa
PONTIANAK BONTANG Mafa Jenggerbun
Sigologolo Indari
SAMARINDA Besui Sausapor Korido
Singapokna Sinaki PAGIMANA SORONG BIAK
PALU
Arefi
Sikabaluan Srilagui Ampana Meosmengkara MANOKWARI
M.Saibi Siberut BALIKPAPAN Poom
Poso Waigama/ Teminabuan Serui
Saumanuk MUNTOK TAYIN Teba
Misol Sarmi
Sioban KETAPANG Kolonedale Fafanlap Bintuni Kaipuri
Sanana
Gela
Berilau PALEMBANG KowedaD. Rombebai JAYAPURA
Tg. Pandan/Belitung KUMAII Kobisonta/
Babo
Bula
Kobisadar Waren
Amahai
Wapoga Trimuris
PULANG PISAU
Fakfak
Bula
Gorom/
Pegatan Watunoho Kasonaweja
Ondor
Maliku Nabire
Amahai
Bahaur
Toheru
BENGKULU KOTA BARU Parepare KENDARI
Werinama
Leksula
Banda
Namrole AMBON
P. Kerayan Kolaka
P.Ambalau
Ulima/
Geser
Larearea/ P.Kesui
P. Tior Tanah merah
Marabatuan Biringkasi Sinjai Pomako
Maligan
Elat
LAMPUNG Boepinang Kaimer
Maradapan Raha P.Kur
Sikeli Banabungi P. Toyando Dobo
Serua
MAKASSAR
Bebar/
Masalembo Ampera
Wulur
PANJANG Burunga (P.Kaledupa)
Teon
BAWEAN Benjina Gententiri
Nila
Usuku(P.Tomia) TUAL
Kalar kalar
Selayar Papalia
Kayuadi Batu atas (P.Binongko) P. Molu Batu Goyang Asiki
Jampea
Masela
Larat
Tepa
Seira Wanam
Bonerate Tutu Kembong
Kimaam
Lakor MERAUKE
Ilwaki
Upisera SAUMLAKI
TG. WANGI BIMA
Adaut
Mahaleat
Lelang/
Kisar
Wonreli/
Maritaim
Moa
Kroing
Leti
Mpokot
Ket PELNI Routes
: Trayek PT. Pelni
LEMBAR NTB
Ende Attapupu
Wini
Naikliu
KUPANG
Sabu
Ket : Pelabuhan Pangkal Perintis
Pioneering Routes Raijua
Ndao
Tl. Bayur R- 1 R- 2 R - 58 R - 57 R - 56 R - 55 R - 54 R - 53 R - 52 R - 51 R - 50
DARWIN
R - 49 R - 48
Indonesia whose coastline extends to 54,716 TERNATEhas waters in two-thirdsSORONG
AMBON SAUMLAKI
km MANOKWARI
of its
Bengkulu Kotabararu BITUNG Makassar KUPANG J
R - 30 BIAK
territory. Its sea transport is vital- 18 supporting the economy and asserts a great need
R in R – 41 R - 44
R- 3 R- 6 R- 9 R – 13 R - 16 TUAL R - 19 R – 25 R - 27 AY R - 31 R - 38
in Tg.Pinang P. Pisau its islands.
connecting Pagimana A
R - 35 R - 42 R – 45
R - 20 R - 28
R - 10 R - 12 R – 17 R - 26 P R - 32 R - 39
R- 4 R- 7 Tahuna
R - 23 U
R - 36 R - 46
Sintete Surabaya KENDARI R – 21 R – 29 R – 33
R
R – 37 R - 40 R - 43 R - 4737
R- 5 R- 8 R - 11 R - 14 R - 15 R - 24 R - 22 A R - 34

38. Domestically, trade routes are vibrant and growing
fast (Inter-island trade has been growing with 37% CAGR in the last 5 years)
Fast growing, vibrant domestic trade routes
9 MT
18% CAGR 74 MT
40% CAGR
10 MT 20 MT
36% CAGR 50% CAGR
13 MT 8 MT
56 MT 85% CAGR 18 MT 73% CAGR
27% CAGR
35% CAGR
66 MT
6% CAGR 2 MT
39 MT
52% CAGR
70% CAGR
8 MT
2% CAGR 2 MT 2 MT
96% CAGR 70% CAGR
= Selected major domestic goods routes (MT/yr) 51 MT
66% CAGR
Inter-island trade has increased ~5x from 638 Mn Ton
in 2006 to 3,153 Mn Ton in 2011
Note: Province to province origin-destination goods flow for all means of transportation (sea, air, land), CAGR 2006-2011
Source: OD Matrix - Ministry of Transportation 2006 and 2011
38

39. Container Traffic Projection in Major Ports in
Indonesia, 2009-2030
BELAWAN TANJUNG PRIOK
4.810.400 TEUs 21.239.900 TEUs
TANJUNG PERAK
9.444.700 TEUs
BITUNG
BATAM
PEKANBARU
BALIKPAPAN
SORONG
PONTIANAK
MAKASSAR JAYAPURA
TELUK BAYUR PALEMBANG
2.469.900 TEUs
BANJARMASIN
PANJANG
TANJUNG EMAS
3.114.600 TEUs
Source: MoT, 2012
39

40. Port Development within the Economic Corridors
SUMATERA : JAVA : KALIMANTAN : PAPUA – MALUKU :
1. Sabang 10. Bojonegara 17. Pontianak 25. Ambon
2. Belawan 11. Tg. Priok 18. Balikpapan 26. Ternate
3. Dumai 12. Tg. Intan 19.Sampit 27. Sorong
4. Batam (Batu Ampar/ 13. Tg. Emas 20. Banjarmasin 28. Jayapura
Sekupang/ Kabil/ 14. Tg. Perak 21. Mekar Putih 29. Merauke
Lobam)
5. Tg. Balai Karimun BALI – NUSA TENGGARA : SULAWESI :
6. Teluk Bayur 15. Benoa 22. Makassar
7. Tua Pejat 16. Tenau Kupang 23. Pantoloan
8. Palembang 24. Bitung
9. Panjang
40

41. 47 Designated Ports for ASEAN Connectivity (14 in
Indonesia)
: Indonesia’s Ports
Source: JICA Study on Guidelines for Assessing Port Development Priorities 2009
41

42. PPP Projects in Port Sector
BIDDING PROCESS
• Development of Cruise Terminal in Tanah Ampo
• Surabaya West Access Channel
PRIORITY PROJECTS
• Cilamaya Port Development Project
• Pelaihari Port Development Project
• Maloy Port Development Project
POTENTIAL PROJECTS
• Garongkong Port Development Project
• Bau-bau Port Development Project
• Luwuk (Tangkiang) Port Development Project
• Probolinggo Port Development Project
• Makassar New Port Development Project
42

43. Optimization Shipping Services
Current Domestic Shipping Network Optimal Domestic Shipping Corridor
Indonesia has 70 major ports The development of an optimal East
functioning as commercial ports West Shipping corridor would reduce
the transport cost, therefore unlock the
However, restricted by the limited
economic growth for regions like
access draft and lack of proper port Sumatera, Kalimantan, Sulawesi, and
handling facilities, majority of these Papua
ports in Indonesia only serve by
container vessels with carrying
capacity of 300 TEUs to 500 TEUs and
operate single loop shipping services
Source: Drewry, 2012
43

44. Pendulum Nusantara: Reducing domestic
transportation cost by building national container
backbone
"Pendulum Nusantara", proposed plan to boost national domestic trade
Malahayati
Belawan
Batam
Pontianak Bitung
P. Baru Balikpapan
Padang
Jambi
Samarinda Sorong
P. Bai
Banjarmasin Ambon Jayapura
Palembang
Biak
Panjang T. Priok Makasar
Banten Semarang Timika
Cirebon Surabaya
Benoa
Kupang Merauke
These don't mean exclusive port development in these
locations
Source: IPC, 2012
44

45. Indonesia Main Sea Corridor, West – East Pendulum
Loop Aceh
BELAWAN
Loop
Pantai Loop North
Loop North-
Timur Papua
East Sulawesi
Sumatera and North
BATAM SORONG
Loop Maluku
Babel and
West Loop Maluku
Loop East Loop West
Kalimantan and South-
Kalimantan Sulawesi
TJ PROK West Papua
Loop Pantai Barat
Sumatera
MAKASAR
SURABAYA
Loop East
Loop West Nusatenggara
Nusatenggara
Main Sea-Corridor
45

46. The Integrated Pendulum Service would reduce the
average shipping costs
Prior to the Pendulum Service
With the Pendulum Service Source: IPC, 2012
46

47. Future containership designs
The trend toward bigger and bigger container ships is continuing….
20.000
“Triple E” Class
(18000 TEU)
18.000
16.000
14.000
E “Emma” Class
(12500 TEU)
12.000
10.000
S “Sovereign” Class
(8000 TEU)
8.000
R “Regina” Class
6.000 (6000 TEU) Inbound International Container Ships
L “Lica” Class Entering Indonesia (5000 TEU)
4.000 (3400 TEU)
2.000 Indonesia Domestic Container Ship
(1800 TEU)
0
1970 1975 1980 1985 1990 1995 2000 2005 2010
In 40 years, the capacity of container ships grew six fold.
47
Source: Rodrigue, J-P (2011)

48. Port Infrastructure Development along Pendulum
Nusantara
Hard Infrastructure
PORT LOCATION
MINIMUM REQUIREMENT
BELAWAN BATAM JAKARTA SURABAYA MAKASSAR SORONG
Chanel
-13 - 10,5 -15 -13 -7,5 - 13 N/A
(mLws)
Berth
(Length/ 300 / -13 400 / -10 350 / - 9 400 / -13 450 / - 7,5 850 / -11 N/A
Depth)
Yard
6 8 6 10 5,6 11,5 N/A
(Hectare)
Equipment
(Container
4 4 - 4 4 5 N/A
Crane Post
Panamax)
Belawan Batam Sorong
48
Source: IPC, 2012

49. Concluding Remarks
 Indonesia is an enormous, growing
market. With its productive
workforce, growing middle class, it
has the capital to grow to be one of
the largest economies in the world.
 There are abundant business
opportunities in growing markets
as demand increases, driving more
consumption, and thus requiring
new or improved infrastructure to
support it.
49

50. Thank You
50

51. Indonesia: Country Profile
Land area Population
 Indonesia has total land of 1.8 million sq. km  Indonesia’s population is estimated as
and water of 0.9 million sq. km 245.6 billion in 2011.
 The archipelago state is consist of 17,508  It is the 4th largest country in terms of
islands, among which 6,000 are inhabited population, after China, India and
 Total land boundary is 2.8 thousand km and United States
total coastline is 54.7 thousand km
51

52. Overview of Indonesia’s Economic Development
In the past decade, Indonesia’s economy has constantly outpaced the average world
economy, even in the crisis years of 2008-2009
Figure 1.2: Historical Indonesian GDP development 2003-2010 Strong Indonesia GDP growth
3.000.000
GDP
7  Indonesian economy maintained
2.500.000 6 an average 5.4% annual growth
Growth % 5.4
2.000.000
5 during the period of 2001 to 2012.
1.500.000
4 During this period Indonesian
3 GDP growth has constantly
1.000.000
2 outpaced average World GDP
500.000
1 growth.
-
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
0
 In the 2009 downturn, the world
Figure 1.2: Historical Indonesian GDP development 2003-2010
economy saw negative growth,
CAGR (%) where as Indonesian GDP growth
7,00 World GDP Growth
6,00 Indonesian GDP Growth 5.4
still remained at 4.5%, and 2010,
Indonesian GDP growth rate has
5,00
bounced back to 6%
4,00
3,00 3.4  The GDP growth was driven
2,00
primarily by the combination of
large volume of foreign investment
1,00
and the private consumption
-
2001 2003 2005 2007 2009 2011 2012 thanks to the countries vast
Source: IMF
population. 52

53. Summary of Development Themes of Indonesia
Economic Development Corridors
“Production, Agriculture,
and National Energy '‘Production, Agriculture,
Center” “Production, Mining, and Plantation and Fishery
National Energy Center” Center”
'‘National Agricultuire,
Fishery,
Energy, and Mining Center
“National Industry and
Services Enhancer” '‘Gateway to National Tourism
and National Food Annex''
Source: MP3EI, 2011 53

54. Intra-island, Inter-island, and International
Connectivities
Locally Integrated, Globally Connected
City
Town
Town Island Asia
City
Town Town Indonesia
Island International Europe
City
Gateway
Town
City
Town
Town America
Island
Town City
Between Growth Within Growth
Centers (sub-regions) Centers (urban)
Inter-island International
Intra-island
LOCAL Connectivity NATIONAL Connectivity GLOBAL Connectivity
54

55. Passenger Traffic Forecast at Jakarta Airport
Million pax
160
Int'l FORECAST 141.4
140 Dom
Total
120 108.8
Actual 2011 110.3
100
83.7
84.8
80
Deregulation 60.7 64.4
Monetary Crisis
Krisis Moneter 65.3
60 51.5
47.4 50.2
40 26.5
30.5 40.1
24.6
19.7
20 13.9 8.8 8.2 10.7 11.2 14
19 20.7 24.5 31.1
14.9 23.9
8.6 5.3 5.1 3.8 4.6 6.7
6.1 9.1 18.4
4.4 11.3 13.4 14.2
0 5.6 5.8 6
3.7 4.5 4.9 4.8
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2011 2014 2015 2020 2025 2030
Source: AP II, 2012
• Jakarta Airport registered phenomenal growth rates for 2011 in excess of 15%
as compared to 2010. (44.4 million pax in 2010 to 51.5 million pax in 2011)
55

56. Sei Mangkei Railway Development
• Sei Mangkei Industrial Area is a CPO-based industrial area occupying a land of 2,003 ha.
• There is a palm kernel oil processing plant with a capacity of 400 tons per day
• To enhance its logistics, a 25-km railway plan connecting the industrial area to Kuala Tanjung
Port is currently being developed.
56