INDONESIA ROAD SECTOR DEVELOPMENTby Triono Junoasmono, Ph.D.
Deputy Director of Planning Integration and Network System
Directorate General of Highways
On the 31st Japan Road Congress
Tokyo, October 27th-28th 2015
DIRECTORATE GENERAL OF HIGHWAYSMINISTRY OF PUBLIC WORKS AND HOUSINGREPUBLIC OF INDONESIAOUTLINE
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INTRODUCTIONTHE ROAD STATISTICS
NATIONAL LONG TERM GOALSISSUES AND CHALLENGES ON THE ROAD SECTORFINANCING GAP AS THE OPPORTUNITY
ROAD DEVELOPMENT PLAN
DELIVERY METHODS FOR ROAD SECTOR DEVELOPMENTON-GOING ROAD PROJECTS COOPERATION BETWEENINDONESIA – JAPAN9. BUSINESS OPPORTUNITIES ON THE TOLL ROAD DEVELOPMENT
10. POTENTIAL FUTURE COOPERATION BETWEEN INDONESIA-JAPAN
11. CONCLUSION21. INTRODUCTION
COUNTRY OUTLOOKIndonesia is located between thePacific Ocean and Indian Ocean
thus bridging Asia with Europe,Middle East and Africa

15th largest country in theworld
Total Land Area: 1,811,569 sq km
Distant from furthest points: 5.2
thousand Km

17,508 islands
5th largest population in theworld (Population: 248 millions)

Image source : https://www.awesomestories.com/asset/view/Indonesia-Map-Locator31. INTRODUCTIONECONOMIC STRENGTHGDP Growth Rate

Top 16 Largest GDP14Indonesia
MexicoSpain
South Korea
Australia
CanadaRussiaIndia
Italy
BrazilFranceUnited Kingdom
GermanyJapan
China
United States

12
10% growth

86
4
20-2

2006

2007

2008

2009

2010

2011

2012

2013

2014

-4-6

-

5,000,000

10,000,000

15,000,000

20,000,000

Timor-Leste
0.1%
Thailand
16.3%

Vietnam
6.9%

Singapore
14.6%

Philippines Myanmar
11.6%
0.0%

Indonesia
33.1%

Brunei
Darussalam
0.7%
Cambodia
0.8%
LaoPDRMalaysia
0.4%
15.5%

Korea, Rep.

East Asia & Pacific (developing only)

WorldOECD members

Millions of US$

ASEAN GDP (2014)

Indonesia•

Indonesia is the largest economy of ASEAN
accounting for 33% of the total ASEAN GDP and is
the 16th largest GDP in the world.

•Indonesia has maintain positive economic growtheven with the financial crisis that took place in2009.

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2. THE ROAD STATISTICS

Road Status

NationalRoad

Length(km)Percentageof Total
Road
LengthStable Road
Condition

Authority

47,017

11%

86 %Central Gov’t

Composition of Road Length by Status10.86%(non tollroad)

National Road

10.55%

820

Provincial Road

(toll road)

Provincial
Road

46,486

11%

Municipal/Regency
Road346,294

78%

TOTAL

440,617100%

70.99 %
57.01 %

Provincial
Gov’t
Municipal/Regency Gov’t

78.59%

Municipal/Regency
Road• Indonesia has the longest road network in ASEAN• National road serves as the main primary-arterial road network and in general is in good condition• However, a lot of provincial and municipal/regency roads are in poor conditions. This situation hamper
Indonesia road network connectivity
Source: Statistics Bureau, 201053. NATIONAL LONG TERM GOALS
Three Steps toward achieving long term goals:• Creating new integrated economic activities by improving accessibility tonatural resources, geographic and human resources potential.
• Improving production and marketing efficiency to enhance national economiccompetitiveness and resiliency• Promoting innovation-driven economy
GDP: USD 1.5Trillion
Per capita
income USD
5,000

2015
NOW

Improving Accessibility means
the provision of decent andreliable infrastructure such as
roads, toll roads and bridges.
GDP: USD 700Billion
Per capita
incomeUSD 3,000GDP: USD 4.0 – 4.5Trillion
Per capita income
USD 14,250 – 15,500(High incomecountry)

GDP: USD 15.0 –17.5 Trillion
Per capita income
USD 44,500 –49,000

BUSINESS AS USUAL
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4. ISSUES AND CHALLENGES IN THE ROAD SECTOR
Backlog in Toll Road Network Development

Network• Backlog and less competitive logistic infrastructure caused byhigh logistic cost and high travel time on main corridors (2.7hr/KM).
• Unready and less spread of expressway development.
• Unbalance modal share; too dominant on the road sector(85%); congestion in metropolitan area
• Spatially unbalance road performance; the conditions of sub
national roads are less stable compare to national roads.

Malaysia
China
Philippines
ThailandIndonesia
Vietnam

00.2

0.4

0.6

0.8

Expressway Density (km/1000 population)

High Cost of Land Transport - Low Connectivity between
Economic Activity Center
Vietnam

INDONESIA

Indonesia

2.7

China

Delivery• Less optimal delivery system due to traditional procurement,• Too many small size contracts• Government bear all the risks

Thailand
Malaysia

0.00

1.00

2.00

3.00

Trip time (hr/100 km)
2016 Road Sector Budget Proportions& Loan Proportions By Donors

Financing• Limited alternative financing models including less optimal
Public Private Partnership (PPP) scheme; too dependant on thepublic resources

Public ServiceAgency (BLU)
0,04%

Sharia Obligation
15,71%

EDCF
0.34%

China
3,36%
State Budget
76,63%

Loan
7,62%

JICA
0.89%

IsDB
0.33%

ADB
0.95%

World Bank
1,75%

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5. FINANCING GAP AS THE OPPORTUNITY
With a very big dream, comes a huge responsibility to provide abundant of financial source. As the government
could only provide + 30% of the total needs, there should be another type of financial scheme. Instead of viewthe financial gap as a problem, it would be better to recognize this as an opportunity for private sectors to give ahand by investing their capital in the development of hard infrastructures.

Investment
Target(StrategicTransportation
Infrastructures)+ US$ 134Billion)

US$ rate as of 23/10/2015

STATE BUDGET +LOCAL GOV’T
BUDGET

FINANCING GAP+ US$ 40.2 Billion

STATE BUDGET +LOCAL GOV’T
BUDGET(30%)+ US$ 14.8 Billion

Others(11%)+ US$ 26.8 Billion

PPP(20%)+ US$ 52.4 Billion

Loan, Bond, etc(39%)}

AlternativeFinancing
Scheme8

6. ROAD DEVELOPMENT PLAN
NATIONAL MEDIUM TERM DEVELOPMENT PLAN 2015-2019

 Accelerating the development of Multimodal
Transportation System
 Accelerating the development of National
Logistic System Encourage the equilibrium of nationaloriented transportation as well as local andregional-oriented transportation

 Building integrated transportation network inorder to support investment on economiczones and outlets

96. ROAD DEVELOPMENT PLAN
DIRECTORATE GENERAL OF HIGHWAYS STRATEGIC PLAN 2015-2019

Increased connectivity support tostrengthen competitiveness (77%)
2019201520192014

Increased stability of National Road (98%)

Reducing travel time in the main corridors down
to 2.2 hr/100 km

Utilization of National Road
up to 133 billion vehicle km

Facilitation for sub nationalroad up to 100%

Road Network Development

Asset Management

Support to Sub
National Road

Preservation of
47.017 KM National
Road (includingbridge)

500 KM Sub National
Road Facilitation• 1.000 KM Expressway• 2.650 KM New Roads• 3.072 KM Capacity Expansion(including FO/UP)

Connectivity 70%
Travel time 2.7 hr/100 km

Stability of national road 94%
Utilization of national road 98 billion vehicle km

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6. ROAD DEVELOPMENT PLAN
DIRECTORATE GENERAL OF HIGHWAYS STRATEGIC PLAN 2015-2019
 Support on Development of
24 New Seaports

 Support on Development of 15
New Airports

 Support on Harbour in 60locations

 Support on Railways

 Support on urban areas andrail crossings Supporton15
industrial Areas

Expressway
Construction(1.000 km)

Development of Strategic
Road to support Tourism andborder area

 Support on 25 Priority National
Tourism Strategic Zones (KSPN)

Priority

National Road
Construction(2.650 km)

Construction of FO/UP on therail intersection andmetropolitan area
(15.000 m)

Construction on missing link(to seaport and airport)

Preservation ofNational Road
(47.017 km)

Support on
local/provincialroad(500 km)

Construction ofRing Road11

6. ROAD DEVELOPMENT PLANREGIONAL APPROACH ON INFRASTRUCTURE DEVELOPMENT
1. Regional approach to achieve “infrastructure for all” and “sustainable development”.
2. Toll Road provision, operation, and maintenance in the developed region involving private sector.
3. Government budget can be allocated to provide and improve road network in the developing andnewly developing region.

Developed Region(Involving Private Sector)

Developing Region(Involving Private Sector with Support ofGovernment)

Newly Developing Region(With total support from the Government)

12Expressway Development

Kalimantan

Sulawesi

In Operation : - km

In Operation : 18 km

Plan : 99 km

Plan : 107 km

Expressway••

Plan : 2,865 km
In Operation : 43 km

Sumatera•Plan : 2,815 km
In Operation : 878 km

Jawa

Plan : 229 km
In Operation : 10 km

Bali

Since the first toll road
opened in 1978, Indonesia
can only expand its tollroad network up to 948
km (recent data).
Toll Roads (Expressways) is
important as the landtransport backbone
especially to support
National Logistic System
In the long run, Indonesia
plan to expand its Toll
Road network up to 6,115km, mostly located inSumatera and Jawa.
13Trans Sumatera and Trans Jawa Expressways•123•
4Trans Sumatera and Trans Jawa Expressways
serves as the land transport backbone forthose two already developed islands and isimportant for logistical activities by reducing
traffic loads on the existing non-toll roads.
The Government plan to complete andoperate additional 203 km Trans Sumatera
expressway and 575.73 km Trans Jawa
expressway by 201956Trans Sumatera
Total length: 2,840 km
Currently Operational: 43 km

Trans JawaTotal length: 1,187 km
Currently Operational: 479 km

14Traffic Conditions on Java in 2030 withCurrent (Trans-Java) Tollroad Plans

Trafficconditions ontollroads

Trafficconditions onother arterialroads
Red indicates heavy congestion

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Required Additional Road Network to Achieve
Acceptable Traffic Conditions on Java in 2030

Trafficconditions on
tollroads

Trafficconditions onother arterialroads
Red indicates heavy congestion16

7. DELIVERY METHODSFOR ROAD SECTOR DEVELOPMENT

Expressway

PPP

SOE, SBOT/Lease, BOTPBAS
Traditional Procurement

National Road

PBC, PBMC

Metropolitan andUrban Road

Traditional Procurement
PBC, PBMC
Traditional Procurement

Sub National Road

Existing

Incentive Based Road Improvement and MaintenanceFuture17

8. ON-GOING ROAD PROJECTS COOPERATIONBETWEEN INDONESIA – JAPANNo.

ProjectType

Amount (JPY)

Scope of Work

1

The Project forConstruction of Bridges
in the Province of Nusa
Tenggara Barat Phase 3

Grand Aid

961,000,000 • Construction of 10 bridges (with various
length between 20-50 m)• Construction of approach roads• Construction of river bank protections

2Expert on Road Policy

Grand Aid

22,073,000 Provide advice and/or guidance in the roadsector and assisting the formulation of roadand project policies

3Aceh Reconstruction
Project IP – 545

ProjectAssistance-Loan

11,593,000,000 • Civil works: Reconstruction of 141 KM roads• Consulting services and construction
supervision of the civil works

4

Tanjung Priok AccessRoad Construction
Project Phase 1 IP – 529

ProjectAssistance-Loan

26,306,000,000 • Civil works: Construction of 8,3 KM flyovers
as access roads for Tanjung Priok Port
• Consulting services and construction
supervision of the civil works

5

Tanjung Priok AccessRoad Construction
Project Phase 2 IP – 531

ProjectAssistance-Loan

26,620,000,000 • Civil works: Construction of 4 KM flyovers asaccess roads for Tanjung Priok Port• Consulting services and construction
supervision of the civil works

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9. BUSINESS OPPORTUNITIESON THE TOLL ROAD DEVELOPMENT : PPP SCHEME

27316 1*)**)

5IN TENDER PROCESSUNSOLICITED PROCESS

No.

412345Serpong-Balaraja *)**)Manado-Bitung *)BalikpapanSamarinda *)Pandaan-Malang *)CileunyiSumedangDawuan

Length(km)/ No ofSections

30,00/ 339,00/ 299,02/ 537,62/ 3

Investment
Cost(Rp. Milyar)

5.177

8.745

13.086

Land Cost(Rp. Milyar)/
Progress

1.751/0%1.200/
Seksi I 88,92%

TenderPreparation

Praqualification

Segment
Name

Status67

Panimbang-SerangBatu Ampar-Muka
JALAN TOLPRIORITAS
Kuning-Bandara

JALAN TOL PRIORITAS

Hang Nadim

58,50/ 6

83,90/ -25,00/ -2.968

10.033

6.738

2.200

1.200/85%

294
22,35%

1.295/
31,28%

1.006/0%-/-

Praqualification

TenderAnnouncement on

TenderPreparation

TenderPreparation

TenderPreparation

1910. POTENTIAL FUTURE COOPERATION BETWEENINDONESIA-JAPANIn addition to what Government of Indonesia and Government of Japan have done, the GoI feels
the urge for more assistance/learning from the GoJ in terms of:
Project
Intelligence
Transportation
SystemLocation
Pilot project inmain island for
National Road
(Toll and Non-Toll)

Intelligent Transport
SystemObjective••••

Improve Incident Response Actions
Improve Traffic Response Actions
Snycronize data from Toll Road and Non-Toll Road authority
Snycronize data from Public Transport and Police authority

Urban Arterial
Road Improvement
ProjectBig cities/
metropolitan
areas

Improve connectivity and mobility, as well as alleviate traffic
congestion in big cities/metropolitan areas (Palembang, Medan,Bandung, Semarang, Denpasar and Banjarmasin) by constructionof bypasses/ring roads

Project Delivery
SchemeNational Road(Non-Toll)• Lesson learnt from Japan experiences on national road delivery
system
• Improve the national road delivery system (effective and efficient)

Construction ofFlyovers andUnderpasses

National Roads inBig Cities andRailway Crossings• Improve mobility in big cities• Improve safety for road users in railway crossings• Usage of barriers in flyovers to reduce noise pollution forsurrounding area and wind impacts on vehicles

Construction ofTunnel

West Sumatera

Improve connectivity and reduce travel timeLong Span Bridge

Subject TBD

Improve connectivity and reduce travel time

Road Safety Audit& Road Safety
Inspection

Main corridors ofPrimary Roads

Fly OverMedian Barrier

Tunnel• Reducing traffic accidents numbers by taking ex ante evaluationand ex post evaluation

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VIDEO OFINDONESIA ROAD PROJECT

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11. CONCLUSION
 Ministry of Public Works and Housing supports infrastructure connectivity
and logistic movement as one of crucial aspects in reducing andeliminating non-tariff barriers to trade and investment.

 Future road development plan of DGH is focusing on road network
development, road network management, and support to sub-nationalroad.
 In realizing such program especially road network development (capacityexpansion), the main issues faced today are related to the land acquisition
process and low feasibility of the projects (the need for Government
support and guarantee to increase the project’s attractiveness to theprivate sector).
 Innovative delivery is needed in infrastructure funding and financing tosupport Public Private Partnership in infrastructure provision especially on
the road sector.
 Indonesia welcome to all participation which will be beneficiary to theacceleration of road sector improvement and development.

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THANK YOU

DIRECTORATE GENERAL OF HIGHWAYSMINISTRY OF PUBLIC WORKS AND HOUSING