Building and Construction Projects in Indonesia

According to Indonesian Construction Association (AKI), the private sector is developing up

to 65% of all construction projects. Over the next few years will be great opportunities for
most market players in this sector as the government of Indonesia targets to start a few large
infrastructure projects. Information from Oxford Business Group shows that these projects
include 2,600 km of roads, 5,500 km of railways, 49 dams and 24 seaports, 1,000 km of toll
roads, and power plants with a total capacity of 35,000 MW.

On top of that, under the new economic development master plan (MP3Ei) for 2011-2025, the
Indonesian Government estimates an amount of IDR 2.55 trillion (USD 181.8 billion) of
infrastructure investments. These investments will boost economic growth under the six new
economic corridors across Indonesian archipelagoes. Major infrastructure projects are as
follows:

 Trans-Sumatra toll road

 Cibitung-Cilincing toll road
 Halim–SoekarnoHatta express train
 Trans-Sulawesi train
 Ten new airports
 Kali Baru Port, Bitung Port, and Cimalaya Port

https://www.cekindo.com/sectors/building
Kupang – El Tari International Airport of PT Angkasa Pura I in Kupang targets the passenger
terminal construction in the airport to be finished before 20 December 2019, which is the 61st
anniversary of NTT (East Nusa Tenggara). The passenger terminal construction progress has
reached 60%.

“This will be the most beautiful gift for NTT. Hence, it is being built,” El Tari International
Airport General Manager Barata Singgih said in Kupang on Tuesday (1/10).

Barata said that the terminal construction was how Angkasa Pura I was serving the airport
service users. Until now, the two-storey passenger terminal construction progress has reached
60%. Part of the terminal roof has been covered by workers. “Moreover, the number of
passengers at the airport increases every year,” he said.

According to Barata, with the development of El Tari Airport terminal, its yearly passenger
capacity can reach 3 million individuals from only 2.2 million every year. Currently, the number
of El Tari International Airport users is around 5,000 to 6,000 passengers daily.

From the passenger movement traffic in 2016, he explained that there was always an increase. In
2016, there are 1,942,049 individuals, and there are 2,099,890 individuals in 2017, then there are
2.2 million individuals in 2018.

Barata said that, from November 2019, the airport would have jet bridges and apron busses for
passengers. Jet bridges and apron busses for aircraft passengers are meant to spoil the
passengers.

Besides that, aircraft passengers do not have to walk far to the aircraft anymore if the aircraft is
an ATR, such as aircrafts of Wings and TransNusa. “So, if it rains, aircraft passengers do not
have to walk like today. [The passengers] just have to go through the jet bridge to the aircraft,”
he stated.

He continued, on the other hand, airlines had not been optimally utilising the runway capacity
provided by El Tari International Airport. The runway capacity is calculated based on the
number of take-offs and landings in an hour. “The runway capacity of El Tari Airport is only
utilised by 80%, thus there is still space that has not been utilised by airlines,” he said.

Barata explained that the current runway capacity of El Tari International Airport could be
utilised to serve 13 aircraft movements in an hour. “However, only 80% [of the runway capacity]
has been sold to airlines, [which can accommodate] for 11 aircraft movements. Thus, [the
airport] can serve around two more [aircraft movements],” he stated.

He said that his company had promoted this opportunity to airlines to open more flights or add
more flight frequency, but it was still vacant. The target of the promotion is to make airlines that
wish to enter Bali go through Kupang as Ngah Rai Airport runway is overcapacity.

https://www.pwc.com/id/en/media-centre/infrastructure-news/october-2019/construction-
progress-el-tari-airport-reached-60-percent.html
Jakarta – Jakarta-Bandung high-speed railway project is progressing according to plan and it has
entered the elevated track construction stage. Land acquisition has achieved 99%, thus the target
of being operational by 2021 is believed to be realised.

Land Procurement Director General of the Agrarian Affairs and Spatial Planning/National Land
Agency (ATR/BPN) Ministry Arie Yuriwin said that the remaining 1% was predicted to be
acquired next month.

“So, 1% are the remaining lands of the [citizens] affected [by the project]. So, there are still
consigned lands as [the owners] are unsatisfied with the [compensation] amount, and [there are
also] lands that have not been approved by the affected citizens. Hopefully, it will all be resolved
by October [2019],” he said at an event at casting yard 1 of Jakarta-Bandung high-speed railway
project in Cikarang on Monday (30/9).

The Minister said that, out of the 142 kilometres of Jakarta-Bandung high-speed train track, 60%
of it will be elevated, which is around 80 km. Then, 16.9 km of the track is in a tunnel, the rest is
landed. The plan for this structure is designed for smoothness of the train that will reach a speed
of 350 km/h.

During its travels, this train will go through four stations, namely Halim Station, Karawang
Station, Walini Station, and Tegalluar Station.

“Out of the 142.3 km of the high-speed train route, the distance from Halim to Tegalluar can be
travelled in around 36 minutes on direct travel, or around 46 minutes on indirect travel,” Minister
Rini revealed.

https://www.pwc.com/id/en/media-centre/infrastructure-news/october-2019/land-acquisition-
achieves-99-percent.html
In a shady coconut plantation, herds of cattle seem to enjoy chewing on the grass. Once in a
while they also quench their thirst at a pond not too far from Simpang Betungan Road in Selebar
District, Bengkulu City.

In the next few years, those herds perhaps need to find a new place for shelter. It is said that
should there be no obstacle, the place where those herds live will be transformed into a toll road.

A blue cylindrical peg appeared to be fixed in the area when Sumatra Infrastructure Exploration
Team paid a visit to Betungan, Sunday (15/9). The peg at STA 0 + 25 is only two adult steps
away from the edge of the highway. There is the starting point of the 95.8-km Bengkulu – Lubuk
Linggau toll road construction.

Acting and Controlling Manager of PT Hutama Karya’s (Persero) Bengkulu – Taba Penanjung
Toll Road Vinjay Endika has said that currently the location determination stage for phase I that
spans for 17.80 kilometres (km) has been completed.

This section connects Bengkulu with Taba Penanjung. From Taba Penanjung, the toll road
stretches further to Kepahiang for 23.70 km. Then, it continues to Lubuk Linggau for 54.50 km.

Based on the provisions, the construction stage can only start after the land has been acquired.
The land acquisition is the government’s responsibility. In this stage, toll road business
enterprises can contribute by providing land bridging funds which will later be reimbursed by
State Assets Management Agency (LMAN)The investment required for the construction of
Bengkulu – Lubuk Linggau toll road is estimated at Rp33.1 trillion. With the length of 95.8 km,
the average investment per kilometre for this segment reaches Rp346.82 billion. For information,
Bengkulu – Lubuk Linggau toll road concession agreement (PPJT) was inked in March
2019.Overall, the length of the toll road in the Palembang – Bengkulu corridor reaches 351
kilometres. The investment for the toll road construction touches Rp85.51 trillion. The
construction cost is met by the state investment and banking loans.

https://www.pwc.com/id/en/media-centre/infrastructure-news/september-2019/trans-sumatra-toll-
road-breaking-bengkulus-chains.html