Infrastructure and Tourism-Infra Development in Indonesia Indonesia - - PowerPoint PPT Presentation
Infrastructure and Tourism-Infra Development in Indonesia Indonesia Australia Business Conference 2017 Rainier Haryanto, Program Director Committee for Acceleration of Priority Infrastructure Delivery (KPPIP) 6 November 2017 Agenda RPJMN ,
Rainier Haryanto, Program Director Committee for Acceleration of Priority Infrastructure Delivery (KPPIP) 6 November 2017
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To achieve higher economic growth, Indonesia has determined its infrastructure targets for the period of 2016 – 2019 which were stipulated in the National Medium Term Plan (RPJMN)
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Enggano Kertajati Singkawang Muara Teweh Miangas Maratua Tojo Una- Una Pohuwato Moa Namniwel Taria Kenyam Aboy Sultan Hassanuddin Banda Aceh Belawan Kuala Tanjung Dumai Batam Pangkal Pinang Pontianak Panjang Padang
Cilacap
Lombok Kupang Palangkaraya Banjarmasin Makassar Maloy Bitung Halmahera Sorong Jayapura Merauke Ambon Koroway Batu
Sea toll concept as a means to support Indonesia in becoming the world maritime axis.
vessels (pioneer cargo, transport vessels, pioneer crossing vessels)
Strengthen connectivity through air transport infrastructure development
locations
airplanes Improve transport efficiency by road development and maintenance
Reduce logistic cost by improving railway infrastructure develop new tracks in Java, Sumatra, Sulawesi, and Kalimantan:
Develop urban transport
(BRT) in 29 cities
(MRT) in 6 metropolis and 17 large cities. Achieve electrification ratio of 96.6% by 2019 through generating capacity improvement
capacity of 35,000 MW Ensure efficiency of fuel production by optimizing domestic refineries
2x300,000 barrels
Cilacap and Balongan
Energy Related Logistic Related
Location of 24 new seaports & 15 new airports
Source: Bappenas
Achieving food sovereignty through irrigation system improvement
hydropower plants
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PSN includes 15 sectors at project level and 2 sectors at program level
IRIGASI
Project Program
Electricity 1 PROGRAM Small- Medium Airplane 1 PROGRAM
61 24 27 13 15
Projects Proyek
93 10 1 12 2
Projects Programs
US$49.1 B US$43.3 B US$11.9 B US$34.2 B US$101.5 B US$0.8 B US$81.9 B
Projects Projects Projects Projects Projects Projects Projects Projects Projects Projects Projects Projects Projects ROAD RAILWAY SEAPORT AIRPORT INDUSTRI- AL ZONE HOUSING HOUSING WATER & SANITA- TION IRRIGA- TION DAM TECH- NOLOGY OIL REFINERY SMELTER
National
Projects Projects Projects Projects Projects
Project FISHERY
Project SEA DIKE
Exchange rate: US$ 1 = IDR 13,000 Sumatra Kalimantan Sulawesi Maluku & Papua Java
Bali & Nusa Tenggara
Government of Indonesia introduced 245 projects and 2 programs as National Strategic Projects (PSN) with estimated total investment of US$322.8 Billion
From the 245+2 PSN, KPPIP has selected 37 Priority Projects out of the PSN stipulated in Coordinating Minister of Economic Affairs Regulation No. 5/2017
27 4 4 4 4 3 7 8 17 13 32 20 1 25 15 2 9 4 27 4 16 10 12 21 34 18 18 18 18 18 18 18 18 18 18 4 4 14 11 36 22 19 23 26
(CBL)
Provinces)
(Balikpapan, Cilacap, Balongan, Dumai, Plaju)
Development (NCICD) Phase A
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10.Light Rail Transit (LRT) of Jakarta, Bogor, Depok and Bekasi 11.Light Rail Transit (LRT) of South Sumatera 12.East Kalimantan Railway
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New Priority Projects Existing Priority Projects
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Included in the PSN are Industrial Estates (IE), Special Economic Zones (SEZ), and Priority Tourism Destination (PTD) projects
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1 2 7 12 3 9 11 8
SEZ Projects in PSN
For the SEZ projects, among 12 projects in total, 4 projects are tourism focused
No Project Project Value (mio US$) Status 1 Lhokseumawe SEZ 12.70 Preparation 2 Sei Mangkei SEZ 395.38 Operating 3 Tanjung Api-Api SEZ 946.15 Preparation 4 Belitung SEZ 115.38 Construction 5 Tanjung Lesung SEZ 323.08 Operating 6 Mandalika SEZ 169.23 Operating 7 Maloy Batuta Trans Kalimantan SEZ 200.00 Construction 8 Palu SEZ 130.77 Operating 9 Bitung SEZ 176.92 Construction 10 Morotai SEZ 523.08 Construction 11 Sorong SEZ 184.62 Construction 12 Merauke SEZ
Preparation (US$958.85 mio) Construction (US$ 1,018.46 mio) Not yet determined as SEZ by National Council of SEZ Operating* (US$1,200 mio)
(Exchange rate: US$ 1 = IDR 13,000) *Projects in “Operating” phase may also still undergo construction
: SEZ with focus on tourism industry
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Tanjung
Api-Api
Kuala Tanjung
Bitung
9. Bitung
1. Arun Lhokseumawe 2. Sei Mangkei 3. Tanjung Api-Api 4. Tanjung Kelayang (Belitung) 5. Tanjung Lesung 6. Mandalika 7. Maloy Batuta Trans Kalimantan 8. Palu
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SPECIAL ECONOMIC ZONE INFRASTRUCTURE
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Government support for SEZs and Tourism Destination under PSN Issuance of regulation to accelerate the delivery of PSN Projects
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Government Reg. No. 13/2017 on National Spatial Plan (RTRWN) The issuance of RTRWN can encourage the settlement of obstacles that are caused by spatial mismatch in the implementation of infrastructure projects listed in the annex of Government Reg. No. 13/20. This regulation provides legal certainty for regional governments in following spatial planning recommendations for PSN issued by the Ministry of Agraria and Spatial Planning. MoF Regulation No. 60/2017 on Procedures for the Provision of Central Government Guarantee for the Acceleration of the PSN Implementation This regulation enables further provision of Government Guarantee with regards to political risk for PSN projects, including SEZs. Usage of this political risk guarantee would provide greater certainty to investors in investing in PSN projects, which is expected to make investment in PSN projects more attractive. Presidential Reg. No. 56/2017 Mitigation of Social Impact in the Land Acquisition for PSN This Presidential Regulations is the Government’s effort to minimize the social impact of land acquisition for PSN delivery, especially in state-owned land that have been informally inhabited by public. This regulation enables acceleration of land acquisition by providing a strong legal basis in giving compensation for communities whose living spaces and economic opportunities are impacted by infrastructure development on state-
Government support for SEZs Fiscal incentives in special economic zones
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Main Activities INCOME TAX REDUCTION 20-100% for 5-25 years Other Activities INVESTMENT ALLOWANCE up to 10 years
GOODS ENTERING SEZ IMPORT:
taxes;
FROM CUSTOM AREAS:
Sales Tax GOODS EXITING FROM SEZ EXPORT:
TO DOMESTIC MARKET:
Import duty and other import tax exemption for capital goods (machinery, equipment, parts, etc) Fit with primary activity?
YES NO
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PSN Investment Value
State Budget SOEs/ RSOEs Private Estimated required funding1 for PSN of 245 Projects + 2 Program: PSN requires funding from various sources, including state budget, SOEs/R-SOEs, and private IDR 525 Trillion Total Investment Value IDR 1,258 Trillion IDR 2,414 Trillion
1Exclude 16 projects which investment value is still unknown
5 Sectors with Highest Investment Value:
Energy 12 Projects IDR 1,242 Trillion Electricity 1 Program IDR 1,035 Trillion Road 74 Projects IDR 684 Trillion Train 23 Projects IDR 613 Trillion SEZs and IEs 30 Projects IDR 290 Trilion
State Budget 13% SOE/RSOE 30% Private 57%
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1Including one electricity program under construction category (39% of
electricity program has reached construction per April 2017)
not reached financial close
Progress of 245 PSN + 2 Programs per September 2017 Progress of 35 GW Electricity Program per October 2017
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6% 11% 38% 42% 3%
40% 5% 53% 2%
Progress Status of 37 Priority Projects Funding Scheme of 37 Priority Projects
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Exchange rate: US$ 1 = IDR 13,500
30% 24% 46% Preparation Transaction stage Construction stage
11 Projects in Preparation Stage 9 Projects in Transaction Stage 17 Projects in Construction Stage
9% 40% 51% APBN/D BUMN/D Swasta
US$16.4 billion State/Regional Budget (including G-to-G loan) US$74.5 billion SOE/Regional SOE US$95.21 billion Private/PPP
From the monitoring effort conducted by KPPIP, here are some results of the achievement of the National Strategic and Priority Projects (PSN)
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PROJECT NAME PROJECT ACHIEVEMENT Patimban Port Environmental Permit has been issued on February 28, 2017. Thus, one of the prerequisites for foreign loan applications through loans from the Japanese Government through JICA has been fulfilled. Hub Internasional Port of Kuala Tanjung The Pre-Feasibility Study/Outline Business Case integrated with the port development plan and regional infrastructure development has been completed and socialized to the
from the Government of Indonesia. Central - West Java Transmission Line 500 kV Contracts for three packages of Engineering Procurement Construction (EPC) (Tx-Batang section, Batang-Mandirancan 1 section and Batang-Mandirancan 2 section) have been signed in March 2017, so the 928 km line construction can be started. Coal Fired Power Plant Jawa-4 (Tanjung Jati-B) The acceleration of Financial Close was reached on March 31st, 2017 from the initial target
Serang – Panimbang Toll Road The signing of the Toll Road Concession Agreement (PPJT) and the guarantee facility of PT Penjaminan Infrastruktur Indonesia (Persero) has been done in February 2017.
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Issue 1: Easing infrastructure provision and investment Government has also created Economic Policy Packages 1-16 to ease infra provision
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PKE 1: National industrial competitiveness PKE 2: Investment permit, tax holiday PKE 3: Electricity tariff PKE 4: Worker welfare PKE 5: Revaluation of assets, double taxation and Sharia Banking PKE 6: Special Economic Zones PKE 7: Labor-intensive industries PKE 8: One Map, Oil Refinery, Aircraft parts inventory PKE 9: Electricity infrastructure, stabilization of meat price PKE 10: Micro Small Medium Enterprises PKE 11: Business credit, pharmaceutical PKE 12: Ease of doing business in Indonesia PKE 13: Housing for low-income society
PKE 14: E-commerce
Policy package that is directly related to the provision of SEZ projects
PKE 15: Logistics PKE 16: Integrated permit system
Issue 1: Easing infrastructure provision and investment Three Economic Policy Packages are directly related to acceleration of SEZ projects
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Economic Policy Package 6: Special Economic Zones
Incentivize business in SEZs through:
Economic Policy Package 12: Ease of Doing Business
Aims to improve Ease of Doing Business in Indonesia through:
Economic Policy Package 16: Integrated Permit System
business owner, and the business owner would receive a checklist to complete. This is expected to accelerate the provision of facilities in taxation, customs, and ease in labor, immigration and land acquisition.
Issue 2: Indonesia workforce to support infrastructure development Indonesia current workforce structure has potential to support infrastructure development
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Increasing number of workforce in Indonesia is followed by challenge to increase workforce competitiveness
Population
255.46 mn
Work Force
127.67 mn
Non Work Force
127.79 mn
Population
120.65 mn
Unemployed
7.02 mn (5.5%)
INCREASE INCREASE DECREASE
Source: Central Bureau of Statistics, Feb ‘16
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Issue 2: Indonesia workforce to support infrastructure development However Current state of employment shows a gap
is elementary school graduate
and expertise
vocational school graduate (9.84%)
generation of national workforce
providing a safe environment;
governance;
domestic strategic sectors;
reform.
in mn in mn Employed Unemployed million million
Workforce
mn
2016 Unemployment 2015-2019 Mid Term Development Plan Unemployment Target
Indicator Number
(7.05 mn people)
Source: Central Bureau of Statistics, Feb ‘16
Issue 2: Indonesia workforce to support infrastructure development Vocational education revitalization needed to support infrastructure and tourism industry
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Vocational School Polytechnic Community Academy INDONESIA PROFESSIONAL WORKFORCE Non Professional Labor
Presidential Decree to revitalize vocational school
Revitalization of Polytechnic and Academy:
infrastructure
polytechnic
Centre
MEA
10.Textile and clothing 11.Automotive 12.Wood-based product Profession:
KPPIP
Menara Merdeka, 8th floor Jl Budi Kemuliaan I No 2, Jakarta 10110 E-mail : sekretariat@kppip.go.id Landline : +62 21 2957 3771
focusing on agro-industry and eco-tourism industry, with total area of 1,250 ha
meetings, incentives, conferencing, exhibitions purpose, leisure spot, luxury lodging, and commercial center for products from Central Lombok Location Mandalika, West Nusa Tenggara Investment Value IDR 177 billion Funding Scheme SOE Project Owner PT Indonesia Tourism Development Corporation (ITDC) Construction 2016 Operation Target 2017
and Governor of NTB has requested the President to inaugurate SEZ Mandalika in September 2017
ha) has reached 90%
accelerated investment permit (3 minutes)
and initial construction, including Pullman Hotel and Clubmed Hotel
runway, port revitalization, and clean water network
process Latest Status
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Description
focusing on fish processing industry, manufacture, logistics, and tourism
to provide supporting infrastructures including the provision of national roads, airports, ports and electricity supply Location Morotai Island Regency, North Maluku Investment Value USD 520 billion Funding Scheme Private Project Owner PT Jababeka Morotai Construction 2016 Operation Target 2018
have been established in 2014
land is being prepared for construction, while 3km of entrance road has been built
Morotai outer ring-road and Pitu Airport – most sections of the Morotai ring- road has been built, remaining sections connecting Hapo Village to Bere Village is yet to be built
jetty and management office renovation has been started Latest Status
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Description
Road is expected to support tourism around Yogyakarta, Semarang, and Solo, especially The Borobudur Temple. This toll road will connect the existing toll road, Semarang – Solo Toll Road with the Special Region of Yogyakarta.
will be 71,56 km with the expected average daily traffic amounted to 16,322 car/day.
Location Yogyakarta – Central Java Investment Value Estimated USD 911.4 Million Funding Scheme Potential for PPP Project Owner Indonesia Toll Road Authority Construction 2018 Operation Target 2020
Thus, KPPIP is currently preparing the Outline Business Case (OBC) which will be completed in December 2017.
result.
Latest Status
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Description
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Location Banten Province Investment Value USD 410 Million Funding Scheme PPP Project Owner Indonesia Toll Road Authority Construction 2017 Operation Target 2019
awarded to PT Wijaya Karya
(33 km), which is currently in Prequalification process of construction business entity procurement
specifically in identification and mapping the land ownership
Latest Status Description
toll road aims to provide access to Tanjung Lesung Special Economic Zone (SEZ) and Ujung Kulon National Park.
development in Tanjung Lesung and Ujung Kulon National Park, this toll road is expected to reduce logistic costs from the industrial zone in Pandegelang to ports in Jakarta.
as the gateway to Western Indonesia. The port is expected to serve transshipment cargo by 2.3 million TEUs in 2030.
accommodate captive and transshipment cargos from international and domestic, especially from and to Sei Mangkei SEZ and Kuala Tanjung Industrial Zone.
Location North Sumatra Investment Value Estimated US$ 2.25 billion (Phase I) Funding Scheme Potentially PPP (to be determined) Project Owner Ministry of Transportation Target Construction Estimated in mid 2019 Target Operation Estimated in 2021 Description
distributed to stakeholders. The OBC’s objective is to ensure the planning and preparation of the project meets the criteria and depth of study that is accepted by the market, and also provide recommendation on port area and regional infrastructure development.
port, terminal and industrial zone. The land including industrial zone will be acquired by the Indonesian Government if PPP scheme is selected.
Latest Status
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Seaport in Bitung, North Sulawesi, to support the development of Bitung SEZ. The International Hub Seaport will also support the industrial activities in East Indonesia, including Ambon and Ternate (Agriculture, Manufacturing, and Mining), and Samarinda, Balikpapan, Tarakan, and Nunukan (Coal, Oil, and Plywood).
Million TEUs.
Location North Sulawesi Investment Value Estimated US$ 2.55 billion Funding Scheme Potentially PPP (to be determined) Project Owner Ministry of Transportation Target Construction Estimated in 2020 Target Operation Estimated in 2022 Description
port, Bitung SEZ, and Lembeh Island.
OBC.
defined based on the OBC.
Bitung.
Latest Status
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No Project Name Sector Province Investment Value (US$ Million) Transportation and Road sectors 1 Kertajati Airport Airports West Java 378.2 2 Kuala Tanjung International Hub Port Ports North Sumatera 2,307,7 3 Bitung International Hub Port Ports North Sulawesi 2,615.4 4 Trans Sumatera (Padang – Pekanbaru) Roads Sumatera 2,814.9 5 Yogyakarta – Bawen Toll Road Roads D.I. Yogyakarta – Central Java 933.8 Other sectors 6 Cilacap refinery Energy Central Java 5,252.1 7 Balikpapan Refinery Energy East Kalimantan 5,252.1 8 Balongan Refinery Energy West Java 1,200.4 9 Bontang Refinery Energy East Kalimantan 14,555.8 10 Waste to Energy (Semarang, Makassar, Tangerang) Energy Central Java, South Sulawesi, Banten 322.1 11 Jakarta Sewerage System Water & Sanitation DKI Jakarta 5,384.6 12 Kuala Tanjung Industrial Zone Industrial Zone North Sumatera 346,2 13 Tanjung Lesung Special Economic Zone Industrial Zone Banten 323.1 14 Landak Industrial Zone Industrial Zone West Kalimantan 93.9 15 Tanggamus Industrial Zone Industrial Zone Lampung 1,346.2
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No Project Name Sector Province Investment Value (US$ Million) 16 Jorong Industrial Zone Industrial Zone South Kalimantan 1,000.0 17 Maloy Batuta Trans Kalimantan Special Economic Zone Industrial Zone East Kalimantan 195 18 Bantaeng Industrial Zone Industrial Zone South Sulawesi 1,830.7 19 Bitung Special Economic Zone Industrial Zone North Sulawesi 172.5 20 Morowali Industrial Zone Industrial Zone Central Sulawesi 3,728.9 21 Konawe Industrial Zone Industrial Zone Southeast Sulawesi 2,153.3 22 Mandalika Special Economic Zone Industrial Zone West Nusa Tenggara 165 23 Buli Industrial Zone Industrial Zone North Maluku 330.1 24 Morotai Special Economic Zone Industrial Zone North Maluku 510.2 25 Teluk Bintuni Industrial Zone Industrial Zone West Papua 2,355.9 26 Batulicin Industrial Zone Industrial Zone South Kalimantan 159 27 Java Integrated Industrial Port Estate Industrial Zone East Java 1,969 28 Dumai Industrial Zone Industrial Zone Riau 1,344 29 Tanjung Buton Industrial Zone Industrial Zone Riau 527 30 Multi Purpose Satellite Technology National 310 31 Sumatera 500kV Transmission Electricity Sumatera 1,830.7
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NO. SUBJECT INCENTIVES/FACILITIES 1. CORPORATE INCOME TAX (PPh) 1. Primary Industry (Tax Holiday):
billion-1 trillion (USD 38.5 - 72 million) *USD 1 = IDR 13,000
investment less than Rp. 500 billion (USD 38.5 - 72 million) *USD 1 = IDR 13,000 in particular area 2. Other than Primary Industry (Tax Allowance):
(5% per year);
to 10% (or lower if treaty is available);
2. VALUE ADDED TAX (PPN) AND SALES TAX ON LUXURY GOODS (PPnBM)
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NO. SUBJECT INCENTIVES/FACILITIES 3. IMPORT DUTIES AND EXCISE
tariff rates 4 NEGATIVE LIST Negative list not applied in SEZ, except for:
5. RESTRICTION AND LIMITATION TO EXPORT AND IMPORT
(domestic area) 6. BUSINESS LICENSES
hours.
be handled by SEZ Administrator.
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NO. SUBJECT INCENTIVES/FACILITIES 7. FOREIGN PROPERTY OWNERSHIP IN TOURISM SEZ
landed house
be renewed up to 80 years
8. LOCAL TAXES IN TOURISM SEZ
9. LABOUR AND EMPLOYMENT
SEZ
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NO. SUBJECT INCENTIVES/FACILITIES 10. IMMIGRATION Immigration facilities for Individual working in SEZ, including his/her family:
11. LAND TITLING Land Titling in SEZ:
established in Indonesia, for 30 years, could be extended for 20 years dan renewed for 30 years (total 80 years)
could be extended for 20 years and renewed for 30 years (total 80 years)
entering commercially operated period
fully owned