A B D U L K A M A R Z U K IA s s i s t a n t D e p u t y M i n i s t e r t o T h e C o o r d . M i n i s t r y F o r E c o n o m i c A f f a i r s

Presented At “Workshop on The Study for Efficient and Integrated Transport/Logistic Development in Eastern MPA”

On 31 October 2013 at Tokyo, Japan

MP3EI’s Influence on JabodetabekMetropolitan Priority Area （MPA）

OUTLINE

MP3EI Target and Strategic Program

MP3EI Project : International Hub

Jabodetabek Metropolitan Priority Area (MPA) Projects

MP3EI TARGET ANDSTRATEGIC PROGRAM

Lead Indonesia becoming the 12th

largest economy in the world by 2025 and the 8th largest economy in

the world by 2045

MP3EI Target

2010

2025

2045

GDP: USD 700 Billion Income/Capita : USD 3,000

GDP : USD 4.0 – 4.5 TnIncome/Capita :USD 14,250-15,500

GDP: 15.0-17.5 TnIncome/Capita :USD 44,500-49,000

To achieve per capita income by 2025 is USD 14,250-15,500, real economic growth of 6.4-7.5 is expected for the period of 2011-2014 with the decrease in the rate of inflation from 6.5%

in 2011-2014 to 3% in 2025

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The Projected National GDP Structure 2025(By Economic Corridor)

The “expansion” means that processing types of economic activities must flourish in many stategic locations outside Java islands so that economic modernization will taking shape in much more balanced fashioned

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Strategic Focus Areas to Boost Regional Development

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MP3EI Project : International Hub

Creating An Efficient yet Integrated National Logistic System is The Ultimate Goal

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Coastal Shipping Development

Development of this short-distance shipping ports aims to meet the following challenges:1. The congestion of road-based transportation, especially in the northern

coast of Java and eastern coast of Sumatra, is very severe. The current road conditions are poor and prone to frequent accidents.

2. The costs of fuel for transport are notably high, thus, theoretically fuel consumption per unit of goods transported by trucks is higher than one transported by ships (economies of scale).

Creating a sea transport (International Hub) system reform that is both comprehensive and integrated by covering four major components, namely:1. Development of port infrastructure;2. Increase the fleet of ships;3. Shipping and port management reforms;4. Development of human resources for sea transportation sector.

Jabodetabek Metropolitan Priority Area (MPA) PROGRAMS

Eco-Friendliness•Low Carbon•Energy Saving

High Quality of Life•Clean•Safe•Smart

A1. Development of MRT-based New Urban Transport System

A2. Development of Road Network in and around Jakarta

A3. Promotion of Urban Re-Development

A4. Improvement of Water Supply and Sewerage System

A5. Solid Waste Treatment

A6. Flood Management

B1. Development of New Growth Sub-Corridor for Jabodetabek MPA

B2. Development of New Academic Research Cluster

B3. Development of Road/Railway along New Growth Sub-Corridor for Jabodetabek MPA

C1. Development of Cilamaya Port

C2. Improvement of Tanjung Priok Port

C3.Development of New International Airport

C4.Improvement of Soekarno-Hatta International Airport

D1.Low-Carbon Power Supply Development

D2.Development of Smart Grid

A. Better Urban Environment

B. New Growth Sub-Corridor for Jabodetabek MPA

C. Multiple Gateway

D. Low-Carbon Energy Development

Growth•Inclusive•Balanced•High value-added

• Efficient• Synergetic• Resilient

• Efficient• Synergetic• Resilient

Source: MPA Development VISION approved by Steering Committee on 22 September 2011

• Efficient• Synergetic• Resilient

Concepts for Development Goals Programs

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TARGET EFFECT INDICATOR TO ACHIEVE CONCEPT FOR MPA DEVELOPMENTPublic Transportation

Increase passenger movement by Railway/Bus 27 % to 45 %

Share of railway/bus in urbanized area is expanded from 27% (2010) to 45% (2020).

Road Average vehicle speed in the morning peak 7 km/hour to 15 km/hour

Average vehicle travel speed will be doubled from 7 km/h (2010) to 15 km/h (2020).

Urban Development

Accelerate multi-core urban development 4 million people in new urban at Suburban Areas

Reduce 3% of population density of DKI Jakarta, and increase 5% of suburban area

Industrial Estate Expedite the industrial estates development 6,800 ha at Suburban Areas

High-value-added industries are introduced to suburban areas

Water Supply Improve piped water service coverage (DKI Jakarta) 54 % to 77%

Piped water supply will be improved from 40.8 m3/s (2010) to 68.3 m3/s (2020).

Sewerage Improve sewerage coverage ratio 2% to 20%

Population of the using sewerage system will be expanded from 0.1 million (2010) to 2 million (2020) people.

Solid Waste Treated/disposed volume 4,500 ton/day to 9,000 ton/day

Treated/disposed rate will be enhanced from 40% (2010) to 60% (2020).

Flood Capacity of discharging flood water to the sea Securing pumping capacity (126 m3/s, 2010)

Reduce the risk of flooding in line with the Master Plan proposed by PU/DKI Jakarta. Polder and retention pond are provided to secure pumping capacity.

Seaport International container cargo capacity 4.9 million TEUs to 9.1 million TEUs

Unload 35% of container handling volume from DKI Jakarta (Tj. Priok Port) to new Cilamaya Port.

Airport Annual passengers capacity 22 million to 90 million

Actual annual passengers have already reached 42 million at SHIA in 2010.

Power Supply Secure Reserve Margin for Peak Demand More than 30%

Secure 30% of reserve margin (Peak Demand/System Capacity) in Java-Bali System.

Target Effect IndicatorR

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MPA IS AIMED AT REDUCING TRAVEL TIME, SPURRING ECONOMIC GROWTH, AND LIVABLE CITY ENVIROMENT

MPA is launched with focus on infrastructure development and enhancement of livelihoods in urban areas  

The Metropolitan Priority Area (MPA), consists of 45 projects aimed at transforming the metropolitan area (Jabodetabek) into attractive and suitable area for direct investment and industrial development by accelerating infrastructure development

MPA is aimed to follow the orientation of MP3EI, which is positioned to encourage the realization of long and medium‐term National Development Plan

MPA focuses in acceleration of multi‐core urban development especially to address 4 million people in new urban areas at suburban areas. This involves :  Improvement of piped water service coverage in DKI 

Jakarta Improvement of sewerage coverage ratio from 2% 

into 20% Improvement of treated/disposed volume of waste 

from 4,500 tons/day into 9,000 tons/day Improvement of capacity to discharge flood water to 

the sea from initial pumping capacity of 60 m3/s into 126 m3/s

Securing electricity reserve margin for peak demand

In addition, MPA also targets enhancement of Mass Urban Transport and better Road Networks, which includes: Increase passenger movement by public 

transportation : railway & bus through Mass Transportation Network

Increase average speed  of driving and access to residential areas

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HIGHLIGHTS OF MPA FLAGSHIP AND FAST TRACK PROJECT PROGRESS TO DATE

Finance Commitment

1. (FG) (FTP) Jakarta MRT (N‐S I (I))2. (FTP) North Kalibaru3. (FTP) Smart Community4. (FTP) East Pump Station at Pluit5. (FTP) Java‐Sumatera HVDC

1. (FG) Sewerage system in DKI2. (FTP) JABODETABEK Railways

1. (FG) (FTP) Jakarta MRT (N‐S (II))2. (FG) (FTP) Jakarta MRT (E‐W (E/S))3. (FG) (FTP) Cilamaya New Port Development (E/S)4. (FTP) Java‐ Sumatera HVDC (II)

Commencement of Works

1. (FTP) North Kalibaru2. (FTP) East Pump Station at Pluit

1. (FG) (FTP) Jakarta (N‐S I (I))2. (FTP) Smart Community

Project Name Project Status      

Formal Finance Requests have been submitted after May 2013

Formal Finance Requests have been submitted before May 2013

Formal Finance Requests are currently being accelerated by GoI

Initial work started after May 2013

Initial work started before May 2013

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GOI IS COMMITTED TO MOVE FORWARD WITH THE MULTIPLE PORT DEVELOPMENT SCENARIO

Good end-to-end transport time Cilamaya provides attractive access to Jakarta East industrial user, while Kalibaru absorbs additional Jakarta West user demand

Good end-to-end transport time Cilamaya provides attractive access to Jakarta East industrial user, while Kalibaru absorbs additional Jakarta West user demand

Good end-to-end transport time Cilamaya provides attractive access to Jakarta East industrial user, while Kalibaru absorbs additional Jakarta West user demand

Competitive port services A healthy competition between Kalibaru and Cilamaya will allow for enhanced port services (including lower tariff) to industrial user

Competitive port services A healthy competition between Kalibaru and Cilamaya will allow for enhanced port services (including lower tariff) to industrial user

Competitive port services A healthy competition between Kalibaru and Cilamaya will allow for enhanced port services (including lower tariff) to industrial user

Reduced traffic flow into Jakarta Traffic congestion could be mitigated because industrial trucks from Jakarta East will not flow into central Jakarta

Reduced traffic flow into Jakarta Traffic congestion could be mitigated because industrial trucks from Jakarta East will not flow into central Jakarta

Reduced traffic flow into Jakarta Traffic congestion could be mitigated because industrial trucks from Jakarta East will not flow into central Jakarta

Availability of alternative during crisisAble to provide alternative sea transport even if one port location function is paralyzed due to vessel accident or road flooding

Availability of alternative during crisisAble to provide alternative sea transport even if one port location function is paralyzed due to vessel accident or road flooding

Availability of alternative during crisisAble to provide alternative sea transport even if one port location function is paralyzed due to vessel accident or road flooding

Diversified port construction completion riskConcurrent development will diversify port capacity shortage risk

Diversified port construction completion riskConcurrent development will diversify port capacity shortage risk

Diversified port construction completion riskConcurrent development will diversify port capacity shortage risk Development of Cilamaya Port

supports the multiple port development scenario and enables the achievement of mentioned benefits

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THANK YOU