You are on page 1of 9

Indonesia: PPP Infrastructure Investment Forum

Session 1: Issues and Outlook for PPP infrastructure
development in Indonesia

Role of JICA on infrastructure development in Indonesia

Yuho Hayakawa
Director, Southeast Asia Division 1
Japan International Cooperation Agency

8%/y Reference:PT.000 900.8%/y Java-Bali 7.2%/y Indonesia needs to construct 5.000 500.000 0 2000 2005 2010 2015 2020 2025 2030 2035 2040 Reference :JICA Study 800.000 Movements/y 200.000 300.000 600. Present condition of infrastructure in Indonesia Indonesia is faced with pressing needs to accelerate the infrastructure development.5%/y West Indo 10.000 1 .1. Electricity demand forecast (2011-2020) Indonesia 8.000MW worth of new power plant every year until 2020 East Indo 10.000 2012 700. PLN RUPTL 2011-2020 Forecast of aircraft movement and runway capacity Balance of capacity and demand in container handling at Tanjung Priok and Cilamaya terminal Soekarno –hatta will reach its capacity in 2014 without any expansion Tanjung Priok will reach its capacity in 2014 without any expansion Annual Movements (times/y) ‘000 TEU/Y 1.000 100.000 400.000.000 Soekarno-Hatta Existing Runway Capacity 370.

: Yen Loan) F/S ongoing Karawan New air port PPP (Incl. Objective MPA Concept  Accelerate infrastructure development in JABODETABEK Area  Enhance private companies participation in infrastructure development Major Infrastructure Projects in MPA Project Name Finance scheme Progress MRT NorthSouth & EastWest Yen Loan North-West: Tender East-West: F/S ongoing Cilamaya new port PPP (Incl. : Yen Loan) Plan to be decided after 2013 Indramayu Coal fired power plant Yen Loan E/S consultant under tender Central Java Coal fired power plant PPP PPA signed 2 . JICA support to accelerate infrastructure development in Indonesia JICA supported the MPA master plan to accelerate infrastructure development in JABODETABEK Area. one of the prioritized area in MP3EI.2.

3. regulatory and institutional framework to facilitate the development of PPP in Indonesia.g. JICA’s approach to support infrastructure development through PPP To promote infrastructure development through PPP.  Provide ODA loan to GOI to support public sector financial support such as VGF Available JICA resources: ODA Yen Loan Private Sector Investment Finance (PSIF) PSIF-TA 3 . JICA’s PPP Supporting Framework Institution Building Project Formulation & Development Objective:  Assist GOI to develop policy. equity and long-term debt. JICA can provide full fledge support from institution building to project realization. Objective:  Assist GOI to identify potential PPP Projects  Provide support to structure the project so as to attract private investors. e. Available JICA resources: Available JICA resources: Technical Assistance  Expert Advisory  Master Plan Study  Training Technical Assistance  Master Plan Study  Technical F/S  PDF PPP-F/S Project Realization Objective:  Provide credit enhancement products to the project companies.

JICA’s approach to support PPP institution reinforcement in Indonesia JICA is supporting Government of Indonesia to identify institutional bottlenecks for PPP.4. and institutional refinement is under way. Key functions for PPP 4 .

【Model PPP Project with JICA PDF assistance】 West Semarang Water Supply South Sumatera Coal Mine Mouth Project 9. Guarantee & VGF App. Tender term sheet prep.5.10 Project Objective: Construction and operation of bulk water supply system in West Semarang Project Objective : Construction and operation of mine mouth coal fired power plant in south Sumatera Project Cost (Est. JICA assistance on PPP project formulation & development JICA is also supporting GCA’s to prepare “bankable” PPP projects through PDF support. Contract negotiation etc. Handover to TA PDF review. Market sounding Tender announcement.): USD 80 Mil Project Cost (Est. JICA’s PDF support mechanism Project Selection Wining Bidder Announcement Tender PDF: JICA PPP-NE Team Pre-F/S. PQ and RFP finalization. Evaluation. Financial and Risk Analysis Secure seamless handover to TA Finance Close Transaction Advisory Gov.) : USD 2400 Mil Transaction Advisor: IIF Transaction Advisor: HSBC Tender Target: PQ in 1st half of 2013 Tender Progress: PQ issued November 2012 5 .

by providing PSIF Project Company PSIF 6 . by providing PSIF Private Portion Port Development Project Container Terminal Project Company PSIF Port Infrastructure MOT ODA Loan Support GOI by providing Yen Loan Public Portion Private Portion Water Supply project JICA finance scheme Bulk Water BOT Support project co. Potential JICA support for PPP project realization In terms of PPP project realization. PPP project example PPP design Responsible entity Support project co.6. JICA can support both public and private portion of PPP projects using Yen Loan and PSIF.

sustainable project formulation scheme. and central & local government coordination can be further refined. . regulation is issued. Execution mechanism of BPN will be the key for successful and 7 timely land acquisition. Issues to be addressed for further promotion of PPP infrastructure development Going forward.  How will GOI incentivize GCAs to originate PPP project?  How will GOI secure the quality of projects which can be seen as “bankable” by private investors?  Possibility to have a through dialogue between private companies during project formulation? Project Formulation • Formulation of “bankable” PPP projects by private sectors  GOI’s intention to incentivize private sector initiative for project formulation • Policy consistency  How can GOI minimize the risk of changes in tender rules due to sudden policy change? • Competition or collaboration with SOEs ? Project  What type of projects are appointed to SOEs? Development  Will SOEs participate in the tender as well? • • Availability of non/limited recourse based lending to SPC’s for infrastructure projects Coordination between central government and local government  It seems many projects face bottlenecks on coordination between central and local government. acceptable risk allocation between government & private.7.  How does the Government of Indonesia plan to improve this situation going forward? Project Realization • Land acquisition  New Law. Process Issues to be addressed for further refinement of PPP in Indonesia • Formulation of “bankable” PPP projects by Government of Indonesia  So far most of PPP project which reached tender were supported by international donors.

Thank you .