BKPM 2015

Investment Opportunities in Infrastructure
Opportunities and Challenges for Delivering Infrastructure in

Indonesia
Rudy Salahuddin
Director of Infrastructure Investment Planning
Den Haag, 30 April 2015
2015 by Indonesian Investment Coordinating Board. All rights reserved
Outline
1
Indonesias Economic and Investment Performances
Funding Gap
Infrastructure Investment Opportunities and Regulations
Challenges and Solutions
IndonesiaInvestment Coordinating Board
5.1%
3,000
2,500
2,000
GDP Growth
in 2014
1,500
1,000
Indonesias GDP
In the last 10 years
500
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
at 2000 Constant Market Prices

by Expenditure 2004-2013
(IDR Trillion)
2nd fastest
Growing Economy
Among G-20
Countries
(After China, in 2013)
Indonesias Growth Beats

Estimates
Indonesias GDP growth in 2013 beats all
estimates in a Bloomberg News survey of
25 economists, where the median was
5.34 percent.
(Bloomberg, 2014)
4th
Worlds Most
Populous
248
17,508 islands
Country
million
Population (in
2013)
Biggest Archipelagic
Nation
IND
16
NESIA
th
Worlds Largest
Economy
trillion
USD GDP
(PPP)
Member State
G20
4,876
USD GDP
per capita
(PPP)
Investment
Grade (Moodys, Fitch and
R&I)
APEC CEOs: Business confidence is rising, and Indonesia has

Momentum to surprise ...
For
second
time,
Indonesia
among
China,
USA
and
Australia become most
preferable investment
destination.
The
most promising country foroverseas business

(Japan Bank for International Cooperation Survey 2014)
Rank
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
China
China
China
China
China
China
China
China
Indonesia
India
India
India
India
India
India
India
India
India
India
Indonesia
Thailand
Vietnam
Vietnam
Vietnam
Vietnam
Vietnam
Thailand
Indonesia
Thailand
China
Vietnam
Thailand
Thailand
Russia
Thailand
Thailand
Vietnam
Thailand
China
Thailand
USA
USA
Russia
Thailand
Russia
Brazil
Indonesia
& Brazil
Vietnam
Vietnam
Vietnam
Russia
Russia
USA
Brazil
Brazil
Indonesia
Brazil
Brazil
Mexico
Korea
Brazil
Brazil
USA
USA
Russia
Russia
Mexico
Mexico
Brazil
Indonesia
Korea
Indonesia
Indonesia
Indonesia
USA
USA
Rusia
Myanmar
USA
Brazil
Indonesia
Korea
Korea
Korea
Korea
Malaysia
USA
Russia
Russia
10
Taiwan
Taiwan
Taiwan
Taiwan
Malaysia
Malaysia &
Taiwan
Taiwan
Myanmar
USA
Myanmar
Positive Factors
1. Future growth potential of local market
2. Current size of local market
3. Inexpensive source of labor
4. Supply base for assembler
5. Base of export to third countries
Issues of Concern
1. Rising labor costs

2. Execution of legal system unclear
3. Intense competition with other companies
4. Underdeveloped infrastructures
5. Difficult to secure management-level staff
Top-4 Most Prospective Host Economies for 2013-2015

TNCs top 10 prospective host economies for 2013-2015
(Percentage of respondents selecting economy as a top destination
United Nations
Conference on Trade
and Development
Indonesia remains on the
top five destinations for the first time.
(Results from UNCTADs World Investment Prospects Survey 2013-2015 which polls TNC executives on their
investment plans)
Indonesia Investment Coordinating Board
Positive Outlook From Credit Rating Agency

Oct 2014, R&I (Credit Rating Agency from Japan)
reported that Indonesias position in BBB- rating is
stable.
January 2014, Moodys issued Credit Analysis :
Indonesias Report which mentioned Indonesias
Investment Grade Rating (Baa3) with a stable outlook.
BBB
BBB-
November 2014, Fitch Ratings reported that Indonesia

still maintain its Investment Grade Rating (BBB-) with
stable outlook.
Moodys
Fitch
Indonesia's
foreign debt
rating
S&P
Japan Credit
Rating Agency
Indonesias current position

Investment grade
In general, Credit Rating Agencies gave positive review

on Indonesias strong and stable economic growth,
strong fiscal position and a relatively low debt to GDP
ratio compared to peers.
Specifically, Fitch Rating gave positive reviews on
Indonesias effort in maintaining financial market
stability amid the volatile global financial market due to
The Fed tapering issue.
McKinsey:
Indonesia today andin2030
Source: McKinsey Global Institute, September 2012.

The Investment Coordinating Board of the Republic of Indonesia
Indonesia Economic Performance

GDP Growth 2007 2015
Year
Indonesia GDP
Growth
World GDP
Growth
2007
6.30%
5.3%
2008
6.00%
2.70%
2009
4.60%
-0.40%
2010
6.10%
4.1%
2011
6.50%
2.8%
2012
6.23%
2.3%
2013
5.78%
2.2%
2014
5.1%
3.4%
2015
5.5%*
4%*
GDP BY SECTOR
Contribution of
services has
grown in the last
decade
GDP BY COMPONENT
Private
consumptions
remains the main
economic
driver
Source: BPS, IMF

Notes: *) 2015 World GDP Growth projection data by IMF
ECONOMIC GROWTH:
6.23% (2012), 5.78% (2013), and 5,1% (2014)
NOMINAL GDP: RP 9,084.0 TRILLION
( US$ 1,009.3 BILLION) (2013)
GDP/CAPITA : RP 36.5 MILLION
(US$ 3,924.7) (2013)
10
Indonesia Economic Performance

DEBT TO GDP RATIO (%)
60%
50%
40%
26.1%
30%
20%
On the fiscal side, the government of indonesia

promoted fiscally conservative policies reducing
the gross government debt to GDP ratio from
more than 90% in 2000 to less than 30%.
DEBT TO GDP RATIO 2013: 26.1%
DEBT TO EQUITY RATIO 2014: 25.6% (TARGET)
10%
0%
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
FOREIGN RESERVES (Billion USD)

120
110.1
111.2
110.5
96.2
100
80
56.9
60
40
112.8
42.6
66.1
51.6
20
0
2006
2007
2008
2009
2010
2011
2012
July
August
2014
2014
THE COUNTRYS FOREIGN EXCHANGE RESERVES

INCREASED TO USD $111.2 BILLION AT THE END OF
AUGUST 2014, COVER 6.5 MONTHS OF IMPORTS.
The rising reserves were mainly due to receipts
from the Euro bonds issued by the Indonesian
government and foreign exchange earnings from oil
and gas exports. In addition, buoyant foreign
capital inflows also had a positive impact on the
accumulation of the official reserve assets.
11
Indonesia Investment Realization 2010 March 2015 : Per Quarter

140
120
Rp Trillion
100
80
60
40
20
0
QI
Q II
Q III
Q IV
QI
2010
Q II
Q III
Q IV
QI
2011
Q II
Q III
Q IV
QI
2012
Q II
Q III
Q IV
QI
2013
Q II
Q III
Q IV
2014
QI
2015
DDI
6.7
15.2
16.6
22.0
14.1
18.9
19.0
24.0
19.7
20.8
25.2
26.5
27.5
33.1
33.5
34.1
34.6
38.2
41.6
41.7
42.5
FDI
35.4
35.6
40.1
36.9
39.5
43.1
46.5
46.2
51.5
56.1
56.6
56.8
65.5
66.7
67.0
71.2
72.0
78.0
78.3
78.7
82.1
Total
42.1
50.8
56.7
58.9
53.6
62.0
65.5
70.2
71.2
76.9
81.8
83.3
93.0
99.8
100.5
105.3
106.6
116.2
119.9
120.4
124.6
Description:
Based on the data BKPM have, investment projects realization in the first quarter (January March) in 2015 has reached Rp. 124.6
trillion, where it increased 16,9% compared to the same period in 2014 that had reached (Rp. 106.6 trillion).
These figures also again reached a new high record on investment realization in Indonesia, which came from the Domestic Direct
Investment which was amounted at Rp. 42.5 trillion, increased 22,8% from Rp. 34.6 trillion in the same period of 2014, While the total
investment realization of Foreign Direct Investment amounted Rp. 82.1 trillion or an increase of 14,0% compare to the same period in
2014.
based on the investment realization 2010 March 2015 data, every quarter shows an increase of a significant number of realization,
looking on the numbers, increased to a more stable yet high level. This indicates that investment in Indonesia starting to enter onto a
Note:
high and sustainable level.
-2010,2011, and 2012, exchange rate US$1 = Rp 9,000

-2013 (Q I dan Q II), exchange rate US$1 = Rp 9,300 (based on State Budget 2013)
-2013 (Q III dan Q IV),exchange rate US$1 = Rp 9,600 (based on State Budget 2013)
-2014 (QI, QII dan QIII), exchange rate US$1 = Rp 10,500 (based on State Budget 2014)
-2014 (QIV), exchange rate US$1 = Rp 11,600 (based on State Budget 2014)
-2015 (Q1), exchange rate US$ 1 = Rp 12,500 (based on Revised State Budget 2015)
12
*Based on Revision of BKPM's Strategic Plan 2010 - 2014
Netherlands Investment Realization to Indonesia 2010 Q1/2015

FDI Realization in Indonesia by Origin
Country in 2010 Q1/2015
USD Million
Excl. oil, gas, and financial sectors
Investment
No
Country
(USD Million)
1 Singapore
27,282
2 Japan
13,311
3 USA
7,684
4 South Korea
7,463
5 Netherlands
5,822
6 United Kingdom
4,651
7 British Virgin Islands
4,622
8 Malaysia
4,394
9 Mauritius
2,492
10 Hong Kong, RRC
2,191
Netherlands Investment Realization in Indonesia by
Sector in 2010 Q1/2015
USD Million
Excl. oil, gas, and financial sectors
Investment
No
Sector
(USD Million)
Transportation, Warehouse,
1
2,330
and Telecomunication
2 Mining
1,756
Chemical and
3
623
Pharmaceutical Industry
255
4 Construction
219
5 Food Industry
Netherlands Investment Realization in Indonesia

2010 Q1/2015
2500.00
2000.00
1500.00
1000.00
500.00
0.00
Project
Investment (USD Million)
2010
2011
2012
2013
2014
Q12015
100
95
125
174
181
46
608.27
1354.45
966.54
927.82
1726.34
239.07
Investment (USD Million)
Project
Description:
Investment from Netherlands to Indonesia is very important.
Based on our data, Netherlands was ranked as the top 5
countries of origin of foreign investors in Indonesia.
This investment realization is the realization that directly
coming from Netherlands, not through Special purpose vehicle
(SPV) countries, such as Singapore, Cayman island, British
virgin island, Seychelles, etc.
Netherlands investment for the last five year amounted to 5.82
billion USD with 721 projects.
Most of Netherlands investment are in Transportation,
Warehouse, and Telecommunication; Mining; Chemical and
Pharmaceutical Industry; Construction; and Food Industry.
13
Investment Realization Target for 2015 2019 (In USD Billion)

90
Investment
Target
80
70
60
50
40
30
22.9
20
27.9
34.8
42.1
43.5
43.7
78.4
66.6
57.0
50.0
10
0
FDI
DDI
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
16.2
6.7
19.5
8.4
24.6
10.2
28.6
13.5
28.3
15.2
28.9
14.8
32.5
17.5
36.3
20.7
41.6
25
47.9
30.5
Note:
Exch. Rate 2010-2012: 1 USD = Rp 9,000; Exch. Rate 2013: 1 USD = Rp. 9,450; Exch.
Rate 2014: 1 USD = Rp 10.500
*) Asumption: 2014 target is achieved
Note:
Exc. Rate 2015-2019: 1 USD = Rp. 12.000 (RAPBN 2015)
2010-2014
2015-2019
Growth average: 28,3%
Growth average: 15,1%
Source of investment
Source of investment
FDI : 63,6%; DDI : 36,4%
FDI
: 69,0%; DDI : 31,0%
Sector
Sector
Primary: 21,8%; Secondary : 41,8%; Tertiary: 36,4%
Primer
Location
Location
Java
: 59,4%; Outside Java : 40,6%
Java
: 15,7%; Secondary : 53,5%; Tertiary: 30,8%

: 46,5%; Outside Java: 53,5%
14
Outline
1
Funding Gap
15
Funding Gap
Infrastructure Financing : RPJMN 2015-2019
APBN + APBD
(Strategic
Infrastructure:
IDR 5.452
Trillion/ USD
460 Billion* )
Around IDR 1.178T
Around IDR 350T

Around IDR 1.090T
Financing Gap
Around IDR 93T

Around IDR 2.741T
APBN + APBD
22%
SOE 6%
PPP 20%
Off Balance Sheet

2%
Gap - 50%
Alternative
Financing
Scheme
1. PPP is an alternative financing scheme to provide infrastructure due to limited capacity of APBN/APBD to fund all
strategic infrastructure projects in Indonesia in 2015-2019
2. The above numbers show CAPEX and major rehabilitation, not including operational and maintenance costs
3. The estimated numbers are tentative.
*1 USD: Rp. 11.900
Source: BAPPENAS, 2014
16
Outline
1
Funding Gap
17
Investment Strategic Plan 2015-2019
Investment Priority Sectors

Power Generation
35 GW new
projects
7 GW
projects in
the pipeline
Labor-intensive
industry
Textile
Food &
Beverages
Import-substitution
industry
Chemical &
Pharmaceutical
Iron & Steel
Furniture
Toys
Electronics
CPO &
derivative
products
Wood
products, pulp
& paper
Automotive
Machinery
Rubber
products
Fish &
derivative
products
Shrimp
Downstream industry
of natural resources
Cacao
Sugar
Smelter
Maritime
Shipping
Ship building
Sea port
Tourism
Strategic
tourism areas
MICE
Export-oriented
industry
Cold storage
ICT for
maritime
18
Government Programs on Infrastructure Development 2015-2019
42 GW ELECTRICITY
POWER PLANT
(7 GW + 35 GW)
1,000 KM OF TOLL
ROAD
3,258 KM OF RAILWAYS
15 NEW AIRPORT
24 NEW SEAPORT
8 SPECIAL ECONOMIC
ZONES
14 NEW INDUSTRIAL
ESTATES
INFRASTRUCTURE
DEVELOPMENT BANK
Indonesia National Mid-Term Plan 2015-2019
19
PPP Infrastructure Projects

NO
SECTOR
STATE
BUDGET
28.3
REGIONAL
BUDGET
16.7
In USD Billion
STATE OWNED
PRIVATE
TOTAL
5.4
16.7
67.1
Road
Railways
12.5
0.9
10.2
23.6
Sea Transportation
41.5
19.9
13.7
75.0
7.1
0.4
4.2
2.1
13.8
4.2
0.8
5.0
Air Transportation
Land Transportation
(included ASDP)
City Transportation
7.5
1.3
0.4
0.4
9.6
Electricity
8.3
37.1
36.3
81.7
0.3
12.6
29.3
42.2
1.0
1.3
2.3
18.6
23.2
10
Energy (Oil and Gas)

Information Technology
and Communication
Water Resources
23.0
5.7
0.6
4.2
33.4
11
Drinking water and waste
18.9
16.5
3.7
2.5
41.6
12
Housing
32.0
3.7
1.0
7.3
44.0
184.6
45.4
88.9
141.0
460.0
40.14%
9.88%
19.32%
30.66%
100.00%
Total Infrastructure
Percentages
According to the five years development plan (RPJMN) 2015-2019, in order to achieve economic growth of 7%, infrastructure
investment from 2015-2019 should reach USD 460 Billion
Central and Regional Government budget cover 50 % of total investment need.
Big opportunity for private investment participation
(includes PPP): USD 141 Billion (30,66%)
20
Indonesia PPP Infrastructure Projects Market Sounding in H1 2015

BEIJING, 13 MAY 2015
1.
2.
3.
IPP Projects (procurement process in 2015)

Kuala Tanjung Port, North Sumatera
Pandaan Malang Toll Road, South Sumatera
FRANKFURT, 28 MAY 2015

1.
2.
3.
4.
5.
6.
7.
8.
Pondok Gede Water Supply, Bekasi, West Java

Pekanbaru Water Supply, Riau
West Semarang Municipal Water Supply, Central Java
Balikpapan-Samarinda Toll Road, East Kalimantan
Manado-Bitung Toll Road, North Sulawesi
Cileunyi-Sumedang-Dawuan Toll Road, West Java.
Pandaan Malang Toll Road, South Sumatera
Legok Nangka Solid Waste Treatment and Final
Disposal Bandung, Jawa Barat
21
Other Regulations : Provision of Infrastructure under PPP scheme

Regulations
Remarks
Presidential Regulation No. 12 of 2011

(Revision of Presidential Regulation
No. 42 of 2005)
Presidential Regulation No. 12 of 2011 is the amendment of Presidential Regulation

No. 42 of 2005, established on 24 February 2011, concerning the Committee for the
Acceleration of Infrastructure Provision. BKPM is also one of the Committee
members.
PRESIDENTIAL REGULATION NO. 38 OF

2015
The regulation was established on 20 March 2015, the newest regulation concerning
Partnership between the Government of Indonesia with business entity (PPP) in
infrastructure provision.
Revisions on Head of BKPM Regulation

No.90 of 2007 on BKPM Organizational
Structure
The revision of the regulation is established as Head of BKPM Regulation No. 1 of

2011 concerning Second Amendment to Head of BKPM Regulation No. 90/SK/2007
on Organization and Administration of BKPM
Law and Presidential Regulation of

Land Procurement for Development
Law No. 2/2012 on Land Procurement For Development has been signed by President in
January 2012 and Presidential Regulation No. 99/2014 just launched in September 2014
Completion of Presidential Regulation

concerning the Infrastructure
Guarantee in Public Private Partnership
Projects through Business Entity of
Infrastructure Guarantee
Presidential Regulation No. 78 of 2010 concerning Infrastructure Guarantee in

Public Private Partnership Projects through Business Entity of Infrastructure
Guarantee had already been established.
PMK No. 260/PMK.011/2010 concerning Guidelines of Infrastructure Guarantee
Implementation on Public Private Partnership Projects Business as the
implementation regulation of The Presidential Regulation No. 78 of 2010.
22
New in Presidential Regulation No. 38 of 2015 (PPP in Infrastructure Provision)

More opportunities, by adding more infrastructure types that can be cooperated with Business Entities (PPP scheme)
No
Existing Infrastructure Types
No
Additional Infrastructure Types
1.
Transportation Infrastructure
11
Energy Conservation Infrastructure
2.
Road Infrastructure
12
Urban Facility Infrastructure
3.
Water Resources and Irrigation Infrastructure
13
Education Facility Infrastructure
4.
Drinking Water Infrastructure
14
Sport and Arts Facility Infrastructure
5.
Centralized/ Off Site Wastewater Treatment

Infrastructure
15
Region Infrastructure
6.
Decentralized/ On Site Wastewater Treatment

Infrastructure
16
Tourism Infrastructure
7.
Waste Treatment Infrastructure
17
Health Infrastructure
8.
Telecommunications and Informatics Infrastructure
18
Penitentiary/Prison Infrastructure
9.
Electricity Infrastructure
19
Housing Infrastructure
10.
Renewable Energy, Oil and Gas Infrastructure,
More certainty in land procurement, by using new law as the main reference
More support to potential investors (private and state-owned companies) need, especially by making more coordination
between government contracting agency (GCA) and related ministries or regional government
More flexible, by giving more opportunities to potential investors to use some GCAs master plans to initiate the investors
feasibility study, thus (if agreed by the GCA) make them as the projects initiator.
Faster process, by allowing direct appointment to some projects procurement with certain conditions.
23
Government Guarantee and Support for Infrastructure Projects *)

IMPROVEMENT ON INFRASTRUCTURE PROCUREMENT PROCESS
To simplify the procurement procedures of PPP Infrastructure projects, The foreign companies or business
entities are eligible to follow the tender without setting up a local company first in Indonesia. They may also
enter into the tender in the form of consortium with local or international partner. However, once they are
announced as the winning bidder, they have to set up an Indonesia business entity; Pre-qualifacilitation
process now will only be repeated once.
Procurement of land is also held by Contracting Agency prior to the inclusion of tender document.
GOVERNMENT GUARANTEE
Provided by Minister of Finance through Indonesia Infrastructure Guarantee Fund (IIGF)/PT Penjaminan
Infrastruktur Indonesia (PT PII)
GOVERNMENT SUPPORT
Viability Gap Fund (VGF), Land Fund, Geothermal Fund, Permits and Licensing, Land acquisition, Use of State
Assets, Feed in Tariff for renewables energy
PROJECT PREPARATION
Through PT. Sarana Multi Infrastruktur (PT. SMI) for preparing of pre-feasibility study; peparing of tender
documents; providing assistance during the tender process; and providing support towards realization of
financial close
FISCAL FACILITIES
1. Tax allowance are eligible to infrastructure and renewable energy; Tax Holiday are eligible to Oil Refinery
project
2. Geothermal Fund
3. Feed in Tariff (Hydropower Energy, Solar Energy, and Solid Waste to Energy)
24
Outline
1
Funding Gap
Challenges and Solution Alternatives in Infrastructure Development
25
Challenges and Solution Alternatives
Challenges
Solutions
Land
Acquisition
Implementation
of Land
Procurement
Act
Inefficiency of
License Process
One Stop
Service for
Investment
License
Improvement
of PPP
Regulation
New PPP
regulation
26
Land Procurement Law
One of the main challenge in the infrastructure project especially in toll

roads, railways, and airports is the land procurement.
Regulation on Land Procurement For Infrastructure Development (Law No 2

of 2012) which has been signed by President on 14 January 2012.
Some of important issues are as follow:
Article
Issue
Note
Land Procurement for

development
Related parties must relinquish their land when implementing land acquisition
for public interest.
23 (1-5)
Short dispute
settlement ( 3 months
14 days)
If there is any objection, the related party can propose a lawsuit to the Local
State Administrative Court at least 30 (thirty) working days since the
issuance of the determination of the location.
Administrative Court has 30 days to accept or decline the lawsuit.
Related party could propose cassation to the Supreme Court of the Republic
of Indonesia if they object with the decision of the Administrative Court
within period of 14 days.
The Supreme Court must give a decision in no later than 30 (thirty) working
days.
47(1)
Implementation of
procurement for public
purpose
The release of the land should be implemented not exceed 60 (sixty) days
after the determination of the construction site
27
One Stop Services for License
Investment Licensing Process
28
22 Ministries/Agencies Involved In One Stop Service (OSS) Center

Ministry of Energy & Mineral Resources
10 group of licenses
Ministry of Communication & Informatics

Ministry of Environment and Forestry

Ministry of Manpower
5 group of licenses
Ministry of Industry
Ministry of Public Works & Public Housing
Ministry of Agrarian & Spatial/BPN

1 group license
Ministry of Marine & Fishery

1 group of license
Ministry of Trade
Ministry of Education & Culture

1 group of license
Ministry of Agriculture
8 group of licenses
Ministry of Defense
10 group of license
Ministry of Finance
2 group of licenses
National Police (POLRI)

6 group of license
Ministry of Transportation
7 group of licenses
7 group of licenses
National Agency of Drug and Food Control (BPOM)
3 group of license
Ministry of Law and Human Rights

1 group of license
National Standardization Agency (BSN)
Ministry of Health
9 group of licenses
National Encryption Agency (LEMSANEG)
Ministry of Tourism
From total 144

licenses
delivered in
OSS Center:
104 licenses
delegated to
BKPM and 40
licenses not
delegated but
also served in
OSS Center.
2 group of license
PT. PLN Persero
29
Example of Licenses Authority Delegation to One Stop Service Center

Minister of Transportion Regulation No. PM 3 of 2015
on PTSP Implementation for Transportation Sector in
BKPM, consisting of 7 licenses:
1. Marine company business licenses (SIUPAL)
2. Operational Permit for Special Marine Transport
Company (SIOPSUS)
3. Port Legal Entity (PBUP)
4. Business License for Salvage Companys and
Underwater Works
5. Business License for Crew recruitment and
placement (IUPPAK)
6. Commercial Airport Permit
7. Air Freight Permit
Minister of Energy and Mineral Resources Regulation

No. 35 of 2014 on PTSP Implementation for Electricity
and Geothermal Sector in BKPM, consisting of 10
licenses:
1. Electrical power supply business license
2. Operating Permit (Certificate of Operation Feasible
- SLO)
3. Determination of business area
4. Electrical Power Supporting Service Business
license
5. Cross country power sale - purchase license
6. Permit for utilization of electrical power grid for
Telecommunication , multimedia, and informatics
7. Assignment of geothermal preliminary survey
(PSP)
8. Geothermal license
9. Geothermal Supporting Business approval
10. Geothermal explosive warehouse utilization permit
30
Integration of Electricity Licensing Services in OSS Center
PLN
OSS CENTER
KESDM
Investor
1. Principle License
(IP) / temporary
IUPL
2. APIP (Inatrade)
3. Import duty
facility (DBC)*
4. NIK (DBC)*
5. IUPTL
6. Ioperating License
7. designation of
area
8. Assignment
Geothermal
Survey
9. Geothermal
License
1. RUPTL
2. Procurement
(Auction, Direct
Selection,
Appointment
Directly)
3. PPA/PJBL
4. Financing Date
Min of Forestry and

Environment
* Online oleh investor

Min. of
Transportation
BPN
OSS
PROVINCE*
1. Specific Terminal
License
2. Navigation
License
1. Foreign Commercial Loan Approval

Coord. Min. of Economy
1. Commisioning
2. Inspection, testing, and publishing
SLO
Min. of Manpower
1. Foreign Manpower Utilization Plan

(RPTKA)
2. Permit to Employ Foreigner (IMTA)
Min. of Public Works

and Housing
1. Dam Permit
2. Construction
License
1. Security Feasibility (SJKU)

Min. of
Finance
1. Borrow and Use Permit of Forest (IPPKH)

2. Indonesian Environmental Feasibility
Assessment (AMDAL)
1. Technical
3. Certification
consideration
2. Land acquisition
(implementation)
* Location permit from OSS Province if the location is across

regencies/municipalities
Regional LIcensing
1. Building and Construction Permit (IMB)
OSS
District/City
Regional LIcensing
2. Environmental Permit
3. Location Permit
4. Permit use of boiler
5. Permit use of lift
6. Permit use of genset

7. Lighting protection permits
8. Company registration Permit (TDP)
9. Occupational health and safety permit
31
BKPM Programs: Facilitation /Debottlenecking Investment Realization
Making sure governments involvement in facilitating and solving investment

realization problems.
As a clearing house agent, BKPM facilitate companies and projects that are
stagnating because of variety of reasons by coordinating with related
stakeholders to help solving the problems.
For pilot project, we are currently in the process of facilitating 95 stagnant
projects/investment plans which spread over 25 provinces with the total value
of USD 35.3 billion.
These projects mostly have problems with local governments.
The project is covered in in seven priority sectors (Electricity, labor-intensive
industry, value added (agriculture and minereal/smelter), maritime related
industry, import substitution, export oriented industries, and tourism).
32
invest in
Indonesia Investment Coordinating Board (BKPM)

www.bkpm.go.id
London
Seoul
New York
Tokyo
Taipei
Abu Dhabi
Singapore
Sydney
THANK YOU | TERIMA KASIH

Badan Koordinasi Penanaman Modal (BKPM)
JalanJenderal Gatot Subroto No. 44, Jakarta 12190

P.O. Box 3186, Indonesia
t : +62-21-5288-0456 |f: +62-21-5288-0389 |e : ppp@bkpm.go.id
2015 by Indonesian Investment Coordinating Board. All rights reserved
35 GW Electricity Program
energy utility in 2014
Development Of Electricity Infrastructure 2015-2019:
42 GW (7 GW initial plan, 35 GW new program (top down)
Hydro,
6%
Geother
mal, 5%
Diesel/Oi
l, 10%
Coal,
54%
Gas, 23%
by PLN
Power Plan : 17.4 GW
Transmission : 50.000 kms
Main station : 743 location
CAPEX: USD 45.42 BILLION
by Private (IPP/PPP)
Power Plan : 24.6 GW
Transmission : 360.000 kms
CAPEX: USD 36.25 BILLION
To support economic growth 7% on average in 2015-2019 with

electricity demand growth 8.8% and electrification ratio at 97.2%
energy utility in 2019

Hydro,
5%
Geother
mal, 5%
Other
renewab
les, 1%
Diesel/Oi
l, 2%
Gas, 23%
Coal,
65%
34
Kuala Tanjung New Port

PROJECT TITLE
Kuala Tanjung New Port
PROJECT LOCATION
Kuala Tanjung, Batu Bara Regency, North Sumatera
CONTRACTING AGENCY
Ministry of Transportation
PROJECT BACKGROUND
TENTATIVE SCHEDULE
INVESTMENT ESTIMATED COST
Future growth of shipping activities in

North Sumatera
have
to
be
accommodated by an adequate port
facilities. To support this, the expansion
of the existing port needs to be done.
This will increase the comparative
advantage for export commodities
Finalization of Final Business

Case (2014)
Estimated Project value: T.B.A
Preparation of Detailed Engineering

Design (2015-2016)
Pre-Qualification (T.B.A)
SCOPE OF WORK
Reclamation area is about 52 Ha.
Container Yard is about 31 Ha.
Container Freight Station is about 0.2 Ha
Wharf design depth -17 mLWS : 1000 m.
To be announced (T.B.A)
Bidding & Evaluation (T.B.A)
CONTACT
Mr. Adolf R. Tambunan
Director of Port and Dredging, Ministry of
Transportation
Karya Building 15th Floor, Jl. Medan Merdeka Barat No. 8
Jakarta 10110, INDONESIA
Tlp : +62 21 3506964
Fax : +62 21 3848963/34834847
Transportation Service and Partnership Analysis Center,
Minisitry of Transportation.
Cipta Building 6th Floor Jl. Medan Merdeka Barat No.8
Jakarta 10110, INDONESIA
Tlp : +62 21 3517608
Fax : +62 21 3852671
35
Pondok Gede Water Supply

PROJECT TITLE
Pondok Gede Water Supply, Bekasi
PROJECT LOCATION
Bekasi Municipal, West Java
CONTRACTING AGENCY
Municipal Government of Bekasi

PROJECT BACKGROUND
By the implementation of Pondok
Gede Water Supply Project, the Bekasi
Municipal plans to increase the total
service coverage for the Pondok Gede
and surrounding area. The realization
of this project will accelerate the city
process to achieve the MDGs target of
80 percent.
PPP MODALITY
BOT (Build Operate Transfer)
TENTATIVE SCHEDULE
Finalization of Final
Business Case (2013)
Pre Qualification (H1 2015)
Bidding & Evaluation (H2 2015)
US$ 20 million
SCOPE OF WORK
Water intakes with total capacity 300 l/s.

Water transmission
Water treatment plant with capacity of 300 l/s
Reservoir with capacity 7000 m3
Distribution pipelines for 61 km
House connections for 30,000 consumers
CONTACT
Negotiation with
Preferred Bidder (H1 2016)
Contract Award (H2 2016)
Head of Physical Division, Regional Development

Planning Agency (BAPPEDA) Bekasi Municipal
Jl Ir. H. Juanda No.100 Bekasi Municipal, INDONESIA
Phone : +62 21 8801339
Fax : +62 21 8801339
Email : dang_mulyana@yahoo.com
Pekanbaru Water Supply

PROJECT TITLE
Pekanbaru Water Supply
PROJECT LOCATION
Pekanbaru Municipal, Riau
CONTRACTING AGENCY
Municipal Government of Pekanbaru

PROJECT BACKGROUND
Pekanbaru Municipal, the capital of Riau
Province, is a developing city surrounded
by oil & gas fields and palm plantations.
The total population is about 1,000,000
people living in this flat area. Since most
of the area is swamps, the quality of
underground water is not good. On the
other hand, the service coverage of PDAM
Tirta Siak (Pekanbaru Municipal water
company) is only 8% of total population
with around 13,000 connections.
Therefore, the Government of Pekanbaru
Municipal has a strong commitment to
improve the water supply service in order
to achieve 32% service coverage in 2025
PPP MODALITY
TENTATIVE SCHEDULE
Business Case (T.B.A)
Pre Qualification (T.B.A)
To be confirmed
SCOPE OF WORK
To be confirmed
Bidding & Evaluation (T.B.A)
CONTACT
Negotiation with
Preferred Bidder (T.B.A)
Contract Award (T.B.A)
Riau Province Regional Development Planning Agency,

Jl. Gajah Mada No. 200, Pekanbaru, Riau.
T: +62761-36061/36026
E: sekretariat@bappeda.riau.go.id
T.B.A
To be announced (T.B.A)
West Semarang Municipal Water Supply

PROJECT TITLE
West Semarang Municipal Water Supply
PROJECT LOCATION
Semarang, Central Java
CONTRACTING AGENCY
National Supporting Agency for Water Supply System
Development (BPPSPAM)

PROJECT BACKGROUND
The PDAM has a 3,200 l/s production
capacity but at present it produces only
2,800 l/s and 2,600 l/s during the dry
season. PDAM coverage is around 57%; in
Western Semarang coverage is only 33%.
Expansion is constrained by the limited
water source and network. Non-PDAM
users in Western Semarang get water
from dug wells or deep wells that are
managed by individuals or by the
community.
The
exploitation
of
underground water has caused land
subsidence in the northern part of the
area.
PPP MODALITY
TENTATIVE SCHEDULE
US$ 20.00 million
Land Acquisition (2014)
SCOPE OF WORK
Pre Qualification (2014)
Water Treatment Plant: 1,000 l/s

Service Reservoir
Trunk distribution pipe
US$ 1 = Rp 9.400
CONTACT
Financial Close (Q3 2015)
Construction (2015 - 2016)
Mr. Purnomo Dwi Sasongko

Head of Procurement Committee
West Semarang Water Supply PPP Project
purnomodwi.pds@gmail.com
Phone/Fax: +62-24-3541095
Operation (est. 2016)

38
Balikpapan Samarinda Toll Road

PROJECT TITLE
Balikpapan-Samarinda Toll Road
PROJECT LOCATION
East Kalimantan
CONTRACTING AGENCY
Indonesia Toll Road Authority (BPJT)

US$ 1,200.00 million (EIRR: 19.19%)
PROJECT BACKGROUND
TENTATIVE SCHEDULE
This project will develop new toll road

corridor from Balikpapan to Samarinda
for 99.02 kilometers and as part the
establishment of a sub regional multimodal transport network to support
the free movement of people and
goods across borders.
Business Case (H2 2014)
PPP MODALITY
Supported BOT (Build-Operate-Transfer)
SCOPE OF WORK
Length 99.02 km
Design speed 80 km/hr
Number of lane 2x2 lanes
Lane of width 3.6 m
Outershoulder width 3,0 m
Inner shoulder width 1.5 m
Media width 3.8 m
Right of Way 40.00 m (minimum)
CONTACT
Negotiation with Preferred
Bidders (H2 2015)
Head of Indonesia Toll Road Authority (BPJT)

Gedung Bina Marga Lantai 3, Jalan Pattimura No.20
Kebayoran Baru , Jakarta Selatan 12110, INDONESIA
Tlp : +62 21 7258063
Fax : +62 21 7257126
Email : bpjt@pu.go.id, investasi.bpjt@gmail.com
Manado Bitung Toll Road

PROJECT TITLE
Manado Bitung Toll Road
LOCATION
North Sulawesi
CONTRACTING AGENCY
Ministry of Public Works
PROJECT BACKGROUND
TENTATIVE SCHEDULE
Bidding & Evaluation (H2

2015)
Negotiation with
Preferred Bidder (H2 2015)
SCOPE OF WORK
Length
Design Speed
Number of Lane
: 39 km
: 100.00 km/h
: :2 x 3 lanes
(phase II)
Lane of width
: 3.60 m
Outer Shoulder Width : 3.00 m
Inner Shoulder Width : 1.50 m
Median Width
: 3.00 2.50 m
Right of Way
: 40.00 m
(minimum)
ESTIMATED INVESTMENT COST
Estimated Project Value: US$ 200
million (FIRR: 11.97%, concession
period: 45 years)
Toll Road Project Manado - Bitung is a project that built to

connect the city with the Port of Bitung Manado. Bitung
harbor has been established as the integrated Economic
Development Area (KAPET) by the government and being
initiated into Special Economic Zones (KEK).
CONTACT
Gedung Bina Marga Lantai 3
Jalan Pattimura No.20 Kebayoran Baru
Jakarta Selatan 12110, INDONESIA
Tlp : +62 21 7258063
Fax : +62 21 7257126
Cileunyi Sumedang Dawuan (Cisumdawu) Toll Road

PROJECT TITLE
Cileunyi Sumedang Dawuan Toll Road
LOCATION
West Java
CONTRACTING AGENCY
BPJT, Ministry of Public Works
BACKGROUND
TENTATIVE SCHDULE
Business Case and Tender
Documents (2014)
Bidders (H1 2016)
SCOPE OF WORK
Length: 58.50 km
Design Speed
Number of Lane
Lane Width
Outer Shoulder Width
Inner Shoulder Width
Median Width
: 80 km/jam
: 2 x 3 lanes
: 3.60 m
: 3.00 m
: 1.5 m
: 13.00 m

Estimated project cost is US$ 1,000
miliion (concession period: 35 years)
This toll road will provide direct access for goods

transportation from some areas to the port city of Cirebon.
This toll road is urgently required to help shift some of the
development of the region to the east side of Bandung.
CONTACT
Tlp : +62 21 7258063
Fax : +62 21 7257126
PPP MODALITY
Supported BOT
Pandaan Malang Toll Road

PROJECT TITLE
Pandaan Malang Toll Road
LOCATION
East Java
CONTRACTING AGENCY
BPJT, Ministry of Public Works
BACKGROUND
TENTATIVE SCHDULE
Business Case and Tender
Documents (2014)
Bidders (H1 2016)
SCOPE OF WORK
Length: 37.62 km
Design Speed
Number of Lane
Lane Width
Outer Shoulder Width
Inner Shoulder Width
Median Width
CONTACT
Estimated investment cost is US$ 255,5

Million (EIRR: 16.78%, concession
period: 35 years).
Mr. A. Gani Ghazaly Akman

Tlp : +62 21 7258063
Fax : +62 21 7257126
PPP MODALITY
: 120 km/jam
: 2 x 3 lanes
: 3.60 m
: 3.00 m
: 1.5 m
: 9.70 m
Malang Pandaan road is part of Southern Java road

network that connect the Surabaya Municipal with the
other area in East Java through Malang Regency and
Pasuruan. The regional development has created
disturbance and barriers to the transportation flow in the
existing road Pandaan Malang. For instance, high
frequency of pedestrian and public vehicles in the artery
and toll road creates road congestions. The road congestion
is inevitable for economy of the region, therefore the
Pandaan Malang toll road is designed to improve the
connectivity within the region.
Supported B.O.T
Legok Nangka Solid Waste Treatment and Final Disposal Bandung

PROJECT TITLE
Legok Nangka Solid Waste Treatment and Final Disposal
Bandung,
PROJECT LOCATION
Bandung, West Java
CONTRACTING AGENCY
West Java Provincial Government
PROJECT BACKGROUND
The concept of this project is to operate a
sanitary landfill site which will facilitate
efficient disposal of household, and
commercial waste from the Bandung city
in final disposal site.
The final disposal site should incorporate
waste sorting, recycling and or
composting facilities, it may also
incorporate methane capture for flaring
or secondary power generation.
TENTATIVE SCHEDULE
Estimated Project Value US$ 60 Million
Operational hours: 18 hours/day, 365 days/year

Operational capacity: 1500 ton/day
Output target: RDF and/or other optional waste to fuel
technology
CONTACT
Negotiation (H2 2015)
PPP MODALITY
SCOPE OF WORK
West Java Regional Solid Waste Management (BPSR)

West Java Provincial Government
Address: Jalan Kawaluyaan Indah No. 4 Bandung 40286
West Java INDONESIA
Tel/Fax : +62 22 7332078

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Investment Opportunities in Infrastructure

Opportunities and Challenges for Delivering Infrastructure in

Den Haag, 30 April 2015

2015 by Indonesian Investment Coordinating Board. All rights reserved

Indonesias Economic and Investment Performances

Infrastructure Investment Opportunities and Regulations

Challenges and Solutions

IndonesiaInvestment Coordinating Board

at 2000 Constant Market Prices

Indonesias Growth Beats

IndonesiaInvestment Coordinating Board

Indonesias Economic and Investment Performances

APEC CEOs: Business confidence is rising, and Indonesia has

IndonesiaInvestment Coordinating Board

Indonesias Economic and Investment Performances

most promising country foroverseas business

1. Rising labor costs

IndonesiaInvestment Coordinating Board

Indonesias Economic and Investment Performances

Top-4 Most Prospective Host Economies for 2013-2015

Indonesia remains on the

top five destinations for the first time.

Indonesias Economic and Investment Performances

Positive Outlook From Credit Rating Agency

November 2014, Fitch Ratings reported that Indonesia

Indonesias current position

In general, Credit Rating Agencies gave positive review

IndonesiaInvestment Coordinating Board

Indonesias Economic and Investment Performances

Indonesia today andin2030

Source: McKinsey Global Institute, September 2012.

Indonesias Economic and Investment Performances

Indonesia Economic Performance

Source: BPS, IMF

Indonesias Economic and Investment Performances

Indonesia Economic Performance

On the fiscal side, the government of indonesia

FOREIGN RESERVES (Billion USD)

THE COUNTRYS FOREIGN EXCHANGE RESERVES

Indonesia Investment Coordinating Board

Indonesia Investment Realization 2010 March 2015 : Per Quarter

IndonesiaInvestment Coordinating Board

-2010,2011, and 2012, exchange rate US$1 = Rp 9,000

Netherlands Investment Realization to Indonesia 2010 Q1/2015

Netherlands Investment Realization in Indonesia

Investment (USD Million)

IndonesiaInvestment Coordinating Board

Indonesias Economic and Investment Performances

Investment Realization Target for 2015 2019 (In USD Billion)

Growth average: 28,3%

Growth average: 15,1%

: 69,0%; DDI : 31,0%

Primary: 21,8%; Secondary : 41,8%; Tertiary: 36,4%

: 59,4%; Outside Java : 40,6%

: 15,7%; Secondary : 53,5%; Tertiary: 30,8%

Indonesia Investment Coordinating Board

Indonesias Economic and Investment Performances

Infrastructure Investment Opportunities and Regulations

Challenges and Solutions

IndonesiaInvestment Coordinating Board

Infrastructure Financing : RPJMN 2015-2019

Around IDR 1.178T

Around IDR 350T

Around IDR 93T