ACCELERATING INTERCONNECTIVITYASEAN AND BEYOND

Budi KaryaTransportation Minister

March 2, 2017

2

The Strong Economic Growth In Southeast Asia and Its Challenge

“Southeast Asia economic growth is projected to be above 5% in 2016 and 2017 (Asian Development Bank). While global economic growth throughout 2016 in the range of 2.4% at mid-year report of the World Bank”

3

The Mega Trends Chalenge

4

The ASEAN Community Resources (Labour)

5

The Future of Indonesia

Source: International Electrotechnical Commission. 2014.

6

Indonesia Maritime Fulcrum

Source: Bambang Prihartono, Tol Laut Book

7

Indonesia Marine Highway/Tol Laut (Commercial Route)

FEEDER PORT

MALAHAYATI

JAMBI

TELUK BAYUR

PALEMBANG

PANJANG

TANJUNG EMAS/SEMARANG TENAU KUPANG

SAMPIT

PONTIANAK

BANJARMASIN

KARIANGAU BALIKPAPAN

PALARAN SAMARINDA

PANTOLOAN

KENDARI

TERNATE

AMBON JAYAPURA

FEEDER ROUTE

NEW HUB SORONG

NEW HUB BATAM

HUB PORT

TANJUNG PRIOK

TANJUNG PERAK

MAKASAR

BITUNGBELAWAN/ KUALA TANJUNG

HUB ROUTE

INDES LINESINDES LINESPendulum

8

Indonesia Trunk Line

PELABUHAN FEEDER

PEL. MALAHAYATI

PEL. JAMBI

PEL. TELUK BAYUR

PEL. PALEMBANG

PEL. PANJANG PEL. TANJUNG EMAS

PEL. TENAU KUPANG

PEL. SAMPIT

PEL. PONTIANAK

PEL. BANJARMASIN

PEL. KARIANGAU

PEL. PALARAN SAMARINDA

PEL. PANTOLOAN

PEL. KENDARI

PEL. TERNATE

PEL. AMBON PEL. JAYAPURA

PEL. SORONG

PEL. BATAM

PELABUHAN HUB

PEL. TANJUNG PRIOK

PEL. TANJUNG PERAK

PEL. MAKASAR

PEL. BITUNGPEL. BELAWAN/ KUALA TANJUNG

JALUR KERETA APIJALAN TRANS PULAU

“A path that serves the high capacity logistic distribution. The inter-islands distribution served by the Tol Laut Port which could support vessels up to 4 thousand TEU's. The intra island distribution served from port with by the railway network, coastal shipping, and road network (toll road and arterial road which could support up to 10 Ton axle load)”

9

Kertadjati Aerotropoly

BASED ON NATIONAL POLICIES

DEVELOPMENT OF NATIONAL LOGISTICS BLUEPRINT

Optimizing the role of existing airports to be able to function as an

International Cargo Hub Terminal

NAWACITAthe sixth point of the President’s

mission shows that competitivenes and productivity

is the current focus of the Government of Indonesia

Midterm National Development Plan 2015-

2019:Development of 9 cargo

airports

MASTER PLAN FOR THE

DEVELOPMENT OF NATIONAL

INDUSTRIES 2015 – 2035

Aerospace Park

AerocityCreative

Technology Centre

Residential/Township

Logistic Hub

Business Park

Energy Center

BUSINESS ACTIVITIES OF AEROCITY

THE ROLE OF AEROTROPOLIS

Aerotropolis

Aerotropolis

Off AirportO

ff Ai

rpor

t

On Airport

On Airport

Aerocity

Aerocity

Terminal

Economic Growth

Labour

Tourism Environment

10

Financing The Connectivity Development

PRIVATE:Rp. 515,8

Billion(22,2%)

Transportation Sector Funding

Needs2015-2019:

Rp. 2.328 Trillion

SOE:Rp. 379,2

Billion(16,3%)

GOVERNMENT:Rp. 1.433

Trillion(61,5%)

Transportation Sector Funding Needs (Including Road)

• Business certainty• Licensing• Incentive

PPP Opportunities:Perpres 38/2015

• Established Special Purpose Company (SPC) for operating project• SPC divestment share• Improve the SOE capability to make expantion without

Government Capital Investment• Established SPC for new project• Joint operation between private and SPC• Improve the SOE capability to make expantion without

Government Capital Investment

Government Capital Investment for special government assignment

PRIVATE

PPP

JV SOE (brownfield)

JV SOE (greenfield)

SOE

Government Budget

Paradigma Baru Pembangunan Infrastruktur

Profitable Government Asset could beprivatized

11

Investment in The ASEAN Region

12

THANK YOU