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Transcript of MP3EI Jawa
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Masterplan P3EI
Java Economic Corridor73
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JavaEconomicCorridor
Development Theme: Main Economic Acvity:Consists of 4Economic Centers:
Jakarta
Bandung
Semarang
Driver for Naonal Industry
and Services Provision
Yogyakarta
Surabaya
Food &Beverage
Texle
Transportaon
Equipment
Shipping ICT
Defense Equipment
Greater Jakarta
Area
Masterplan P3EI
Java Economic Corridor74
Food And Beverage Industry Node
Capital City/Economics Center
Texle Industry Node
Domesc Sailing Network
Railroad
Economic Center Connecng Lane
Exisng RoadMain Exit Corridor LaneManufacturing Machinery and
Transportaon Equipment Node
Industrial Cluster
Doc. Astra Otoparts
Sea Port
To Kalimantan & Sulawesi
To Banjarmasin
To Balikpapan &
Samarinda
To Sulawesi
To Eastern
Indonesia
To Bali & Nusa
Tenggara
To PonanakTo Batam
To the west
of Sumatra
Internaonal PrimaryPort ofTanjung Priok
Internaonal PrimaryPort ofTanjung Perak
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The main focus of the Java Economic Corridor development will be on Food and Beverage, Texle, and
Transportaon Equipment. In addion, there is also desire to develop other economic acvies such as
Shipping, ICT, and Defense Equipments.
Overview of Java Corridor
Driver for Naonal Industry and Services Provision are the main themes of the Java Economic DevelopmentCorridor. To support this, a special strategy will be implemented to further develop Java Corridor industries
that support the conservaon of water and the environment.
In general, Java Corridor has beer economic and social condions in relevance to other corridors. Therefore,
the Java Economic Corridor has potenal to progress in its value chain from manufacturing based economy
to service-based economy. This corridor has the potenal to serve as the benchmark for economic changes,
evolving from primary-industry focus towards being more focused on terary-industry. Such value chain
evoluon has been successfully developed in Singapore, Shenzhen and Dubai.
There are several issues idened in Java Economic Corridor requiring aenon:
High GDP and prosperity gap between provinces within the corridor; Growth disparity throughout the value chain; the progress of the manufacturing sector is not followed by
the progress of other sectors;
Lack of domesc and foreign investment;
Lack of sucient infrastructure.
Figure 3.C.1: The Distribuon of
GDP per Capita at Current Prices
and Real Growth Rates for the
Regency/City in Java Economic
Corridor Year 2008 Source: Province and Regency in Figure, NSA, Team Analysis
High Income region
Low Income region
Growth rate
IDR Mn
5 year GRDP real CAGR (2003-2008)
Provincy City:Jakarta(West)
DKI Jakarta West Java Central Java East Java
Bandung Semarang Surabaya(East)
Spread of wealth
Provinces
GDP per capita at current price and real growth rate in 2008 for Regencies/Cies in the Java Economic Corridor
Naonal GDP
per capitaIDR 21.7 Mn
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The food and beverage industry is a signicant contributor to the GDP of Indonesia. In 2008, the industrialproducon value of food and beverage reached USD 20 billion, and has grown at an average of 16 percent
every year thereaer. This industry absorbs the largest labor force among other manufacturing industries. In
2010, this industry absorbed a labor force of 3.6 million people, an increase of 3.8 percent from 2009.
From January to August 2010, the food and beverage industry increased its export value by 16 percent for the
food industry and by 13 percent for the beverage industry relave to the same period in the previous year.
Producon for this industry contributes approximately 22.3 percent of total manufacturing producon in Java
Corridor making it the second largest manufacturing industry aer the machinery. Total realized investment
for this industry in Indonesia at the end of 2010 was IDR 25 Trillion, in which IDR 9 Trillion of the investment
came from foreign investment (FDI) and the remaining IDR 16 Trillion from domesc investment (DDI). This
industry ranks the highest for the amount of domesc investments realized in 2010. In 2011, the investment
in food and beverage is expected to reach IDR 38.87 Trillion.
Milk is a product of the food and beverage industry that has potenal to be developed further as the
consumpon of dairy products per capita in Indonesia is relavely lower when compared to China, Malaysia,
and India. This can be considered as an opportunity and therefore, sales of dairy products in Indonesia are
projected to grow by 17 percent annually.
Although this industry has been growing in recent years, there are sll challenges in terms of infrastructure,
human resources, and regulaons for this industry. These challenges prevent this industry to grow to its full
potenal. One such challange that inhibits the growth of this industry is the regulaons that imposes import
tari for food end-products made from rice our, potato, milk, and chocolate is lower than the rates of
import tari for its raw materials. Other regulatory challenges also include the imposion of import tari or
packaging materials. The imposion of such import tari has led to the price increase inpackaging, causing
the high price of packaged products, such as sweets and biscuits. In terms of exports, another challenge being
faced is the high transportaon costs whereas the margin generated by thesale of food and beverage products
is relavely smaller.Figure 3.C.3:Consumpon of Dairy
Products in Indonesia
Consumpon of Dairy Products in Indonesia
Kg per Capita
Source: Euromonitor; Expert Interviews; Team Analysis
Singapore Malaysia China India Indonesia
Cheese MilkYoghurt & sourmilk drinks
Other dairyproducts
Source: Euromonitor; Team Analysis
Beverage 13%
Food 16%
Food and Beverage
Figure 3.C.2: Total Sales
of Food and Beverage in
Indonesia
USD Bn
Total Sales of Food and Beverage in Indonesia
CAGR 2004-2008+16%
1112
1416
20
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Strategies required to face challenges are:
Implement more eecve markeng to capture domesc demand, which is growing rapidly;
Increase the use of the Indonesian Naonal Standard (SNI) and strong branding/labeling in order to
improve regional export for high value added products.
Regulaon and Policy To eecvely implement the above menoned strategies, several measuresneed to be taken relang to regulaons and policies as follows:
Reform policies and regulaons in order to make foreign investment more aracve, e.g. import duty
tari for raw materials such as for rice our, potato, milk and chocolate should be made lower than the
tari for their end products (Ministry of Finance Regulaon No. 241/PMK.011 Year 2011 concerning
Decision Systems Classicaon of Goods and the Imposion of Taris of Import Duty on Imported Goods);
Review policies to lower the cost of packaging materials in order to increase the compeveness of the
food and beverage packaging products (Ministry of Finance Regulaon No. 19 Year 2009 concerning
Decision on Import Duty Tari Determinaon of Specic Products in order to reduce duty for raw
materials e.g.polypropylene and polyethylene packaging).
Human Resources and Science & Technology In order to support the development ofthe main economic acvies for food and beverage industry, human resource & technology supporng the
industry needs to be developed as follows:
Recruit qualied human resources from within Indonesia and abroad;
Improve educaon and training for local experts supporng the food and beverage industry.
The texle industry is an industry with the highest level of employment in Indonesia (it employs more than
1.3 million people). Of the total labor employed, about half (600 thousand) work in the labor-intensive texle
garment industry.
Figure 3.C.4:
Labor Employment for
each Value Chain of
Texle Main Acvies
Figure 3.C.5:
Percentage of Texle Company
based on Company Size
% Firms by Size
Small scale rms
Medium-large
scale rms
Employees (Thousand)
Texleproducts
Fabrics Yarn Fiber
Sumber: API
1,500
30
748
1,399
381
240
1,000
1,000
Texle
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An important source of foreign exchange, the texle industry is the only non-oil manufacturing export industry
with a posive net export. Texle products are Indonesias largest export commodity to the United States.
Figure 3.C.8:
Esmated Growth
in Texle Industry
IDR Tn
Esmated GDP growth for the texle industry
Source: Team Analysis
CAGR
2004-2009
Fiber
Yam
Fabric
Garment
CAGR
2009-2013
Figure 3.C.6: Total
Export and Import
Commodies Non Oil
Figure 3.C.7: Big
Ten Exports to
the U.S. Based
on Value (Year
2007)
USD Bn
Top 10 Indonesian Exports to US by Value (2007)
USD Mn
2,000
1,500
1,000
500
Net ExportsExports Imports
Note: Imports expressed as negave values
Source: WTO trade stascs, US Census Bureau; Team Analysis
Indonesias Non Oil & Gas ManufacturedMerchandise Export and Import
In the global marketplace, Indonesian texle exports to the U.S. and Japan are lesser than Chinas texleexports to both countries. Indonesian texles industry could benet from the policies that exist in many
countries where they restric imports from a parcular country.
Texle products contribuon to naonal GDP is signicant, amounng to IDR 90 Trillion in 2007.
The amount decreased due to the economic crisis in 2009, but is expected to connue its increased
contribuon in the future.
Texles
and
Clothing
CoonApparel
OtherTexle
Apparel
NaturalRubber
Fish&Shellfsh
Furniture
SporngApparel
CarParts&
Accessories
Computer
Accessories
Crudeoil
Televisions,DVDPlayers
andothervideoEquipment
Chemicals
Oceand
Telecom
Equipment
Telecommunicaon
Equipment
Automove
Products
Electronics
Iron&Steel
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The upstream texle industry in Indonesia sll imports 90 percent of raw natural coon materials. With a suitable
climate for coon culvaon, Indonesia should increase coon producon and therefore be poised to improve the
possibility of upstream integraon, maximize value added and decrease dependency on imported raw material.
From the downstream side, Indonesia has begun to develop the garment design industry in Jakarta. Design isanacvity with high value addion, and as such, should be supported by compeve design capabilies.
Figure 3.C.9: Total sales
of Texle Products Up In
the End Consumer
2008 201220102009 20132011
7591
110133
161
1957
+21%
9
11
13
16
19
16
20
24
29
35
42212
175
145
12098
256
IDR Tn
Total sales of texle products to end consumers
21%
CAGR2008-2013
Others1
Arcles clothing& accessories
Garments
22%
21%
240
280
320
200
160
120
80
40
0
1 Others includes clothing material and expenditure on cleaning, repair and hire of clothing
source: Euromonitor; Team Analysis
The texle industry is labor-intensive, therefore the ease of labor employment/empowerment becomes very
important and Indonesia in this regard is currently ranked below China, India and Thailand.
The upstream texle industry (bers into fabric) is a capital and technology intensive industry that needs
abundant energy recources. The availability and price of electricity eects the level of compeveness of
products produced.
Another hindering issue is high transport costs due to the low eciency of Indonesian seaports. Ship
turnaround me at seaports of Jakarta, Semarang and Surabaya are 67,77, and 38 hours respecvely which
is consideredrelavely long. Turnaround mes in ports in Indonesia are much longer than in Singapore,
which is 26 hours. Yet another hindering issue aside to those menoned above is the condion of producon
machineries in which directly eects level of producvity. The average age of texle machines in Indonesia is
more than 20 years resulng in low producvity.
To develop this sector, a strategy was developed to recapture the domesc market and increase export
valueby strengthening the role of Java as the countrys texle-producing hub. There are addional
opportunies to strengthen its posion in the value chain from upstream (raw materials producon) to
downstream (design producon of garment) so as to create vercal integraon and to improve overall
compeveness.
Most texle producon in Indonesia is concentrated in Java (94 percent), with Jakarta, Bandung, Semarang as
major producon hubs. Upstream industries include ber producers in Purwakarta, Subang and Tangerang.
% of Machines
100
80
60
40
20
0
Age of texle related machines in Indonesia (2006)
Source: Ministry of Industry; Team Analysis
S pinn ing Weavi ng Knin g Fini sh ing Garment
36
6482
8493
78
7
221618
Older than 20 years
Younger than 20 years
Figure 3.C.10: Age of Texle
Machinery in Indonesia
(Year 2006)
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Regulaon and Policy To further improve the main economic acvity of texles, especially in Java,the support of regulaons and policies needed include:
Increase bilateral cooperaon with countries imporng texles;
A review of Law No. 13 Year 2003 concerning Labor Act to further improve business and investment
climate, because the texle industry in general is labor intensive;
Provide incenves for texle acvies with high added value such as design;
Capture domesc texle market, which is projected to grow rapidly (21 percent);
Increase monitoring of the entry of imported products (legal and illegal imports), while increasing the
quality of naonal products to counter the market of imported products.
Connecvity (infrastructure) The development of major texle economic acvity requires theimprovement for connecvity through infrastructure support services, including:
Increasing electricity supply and the feasibility of electricity prices (which can compete with electricity
prices in China and Vietnam);
Increasing me eciency of transport (ship turnaround me) through main ports such as Jakarta,
Semarang and Surabaya;
Decreasing transport cost (Terminal Handling Charge), to that lower than costs in Singapore, Philippines,
Malaysia, and Thailand.
Human Resources and Science & Technology The development of the texle industry thatis labor and capital intensive requires measures in human resources and science & technology, such as:
The provision and improvement of vocaonal educaon, specically in the eld of texle product design;
Provision and support to upgrade outdated texle machinery/equipment and increasing texle producing
technology;
Increased technological innovaon for texle products in order to increase sales of texle products to thenal consumer, in the form of clothing (garment), or other texle products.
There is great potential for growth in the equipment and machinery sector. More than 80 percent GDP
contribution of this sector comes from Java Corridor.
In the industrial sector for equipment and machinery, the transportation equipment segment is the largest
contributor, e.g. 93 percent of equipment and machinery sector in Jakarta came from transportation
Figure 3.C.11: Percentage
Contribuon of Equipment and
Machinery segment in Jakarta and
West Java
Percentage split within equipment
& machinery segment1
(%)
Transportaon Equipment
1Based on value added at market prices data for 2005 for each province
source: NSA; Team Analysis
100
80
60
40
20
0
Others
Communicaon equipment
Machinery and apparatus
Transportaon equipment
JakartaWest Java
44
93
33
3
22
41
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Figure 3.C.12:
Value Vehicle
Sales
Figure 3.C.13:
Car Ownership
per 1,000
people
CAGR
2003-2009
IDR Tn
+13%
200
160
120
80
40
0
Auto and motorcycles sales value
Source: Euromonitor, Data Consult, AISI, Team Analysis
20042003 20092005 2006 2007 2008
27.8
82.3
54.561.2
94.2
56.573.4
88.1105.8 Auto +12%
42.8
45.6
60.1
66.7 Motorcycle +16%
99.3
119.0
148.2
172.5
50.1
144.3
37.8
99.0
Note: Data collected for countries with PPP per capita < USD 15,000; ASEAN countries
include Indonesia, Thailand, Malaysia, Philippines, and Vietnam
Source: EIU, Global Insight, Team Analysis
Car ownership per 1,000 people
Malaysia
Romania
Russia
BrazilIran
Argenna
Chile
Kazakhstan
South Africa
Indonesia 2017Indonesia 2007
ASEAN 2007
MexicoUkraine
Egypt
IndiaSri LankaChina
Thailand
PhilippinesVietnam
Indonesia 2012
Pakistan
Turkey
GDP per capita (USD PPP)
4,0002,000 14,000 16,0006,000 8,000 10,000 12,000
300
200
100
0
equipment segment. Transportation equipment industries are concentrated and form a major hub of
transportation equipment production in Jakarta, Bogor, Bekasi and Karawang/Purwakarta (Greater Jakarta).
The transportaon equipment industry has a strong potenal to connue growing. Ownership rao of vehicles
in Indonesia is sll low and is expected to rise with the increase in GDP.
The increase in car sales is expected to be followed by the transportaon component of industrial producon
growth as projected in Figure 3.C.14
Comparison of Transportaon Spare Part Industry Producon Growth
Source: API, Indotexle, Team Analysis
0 5 10 15 20
IndiaIndonesia
ASEAN
Thailand
China
Russia
Czech
Poland
Mexico
Brazil
TurkeyIran
Italy
Germany
USA
16.1
11.1
10.4
10.4
10.0
7.4
4.9
4.2
3.9
3.8
3.2
2.8
2.1
1.1
1.3 Growth (%)
(CAGR 2007 - 2012)
Figure 3.C.14: Comparison
of Transport Components
Industrial Producon
Growth
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Figure 3.C.15:
Vehicle Producon in
Indonesia for Export
and Domesc Sales
CAGR 2006-2008
(Thousand Units)
800
600
400
200
0
Producon of vehicles in Indonesia for export
and domesc sale
Source: Euromonitor, Data Consult, AISI, Team Analysis
20072006
10.5 14.6 16.8
2008
31
296
265351.4
499.6 Producon for
domesc sale37.3%
Producon for
exports80.6%101.0
600.6
60.3
411.6
Exports as % of
producion
In addion to large domesc markets, Indonesia is also likely to increase exports of vehicles. Although producon for
export has not been big in volume, producon for exports is expected to grow two mes faster than domesc sales.
The main economic acvies for transportaon equipment will face a number of challenges and problems asit
develops and grows. Consistent availability of electricity is one of the main challenges. Periodic blackouts andhigh costs are obstacles that many producers complain about.
Seaport infrastructure limitaons could inhibit the growth of this industry. The development and operaon
of the car terminal in Tanjung Priok is sll perceived as crical, eventhough there will be additonal terminals
developed and already exist in medium term planning.
The limitaons of skilled and capable human resources is also considered a crical maer that needs to be
addressed in order to aract more Original Equipment Manufacturers (OEMs) to invest in Indonesia.
The problems faced by the transportaon equipment industry can be described as follows:
ASEAN regulaons and policies have encouraged the development of automove industry and its
components in ASEAN countries. The implicaon of this conditon is a higher import of CBU vehicles from
other ASEAN countries (especially from Thailand) compared to CBU vehicle exports from Indonesia to
other ASEAN countries;
Lack of incenves for the development of the motor vehicle industry and its components that are based
on future technology (Fuel Ecient Car);
The policy for motorcyle (two-wheeled vehicle) industry has not been eecve;
The increase in volume of low quality and low price vehicle components imported from China,
Thailandand India;
Current regulaons/policies are not aracve for the development of automove industry;
The current regulaons do not support the automove industry to do exports.
The following strategies need to be implemented to respond to the challenges faced:
Increase overall capacity in order to ancipate the growth of domesc and export markets in 2015
through 2025 by giving priority to certain Motor Vehicle Industry Investment and its main component
within the period of 2011-2014;
Develop the ability to design and construct vehicles;
Increase role in development and harmonizaon of industry standards for motor vehicles within the
internaonal arena;
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Improve the investment incenve policies;
Improve the policy of export development;
Improve the domesc market development policies.
Regulaon and Policy Regulatory and policy reforms required in order to support the strategiesand eorts to address the problems include:
Strengthen the structure of the automove industry through the addion of major components industries
such as engines, drive trains, and axles;
Revise regulaons on threshold for exhaust emissions and noise, as well as building the industry for
alternave-fueled vehicles;
Acvely parcipate in the global arena with harmonizaon of automove industry standards;
Harmonizaon of taris by the FTA, for upstream and downstream industries;
Policy incenves, which include the proposed reducon in tax allowances, Import duty and Value Added
Tax (PPN);
The policy of export development through the proposed reducon in import duty and Income Tax (PPh);
Policy for domesc market development through the proposed reducon of import duty, VAT, Vehicle Re-
registraon Fee (BBN), and Vehicle Registraon Tax (PKB);
Provision of incenves to OEMs to make Indonesia its producon base. With the AFTA, OEMs have
greater freedom to determine its producon base, therefore, strengthening relaonships with exisng
OEMs is crucial. It is necessary to create an condusive climate to aract investment in Indonesia
compared to other countries in Southeast Asia.
Connecvity (infrastructure) Development of the main economic acvies requirestransportaon and infrastructure connecvity support in the form of:
Increased capacity and adequate electricity supply to avoid periodic blackouts, which can also reduce
the high producon cost;
The development and operaon of motor vehicles special terminal at the port of Tanjung Priok or in
the short term, the addion of new terminals.
Human Resoures and Science & Technology The necessary steps required for thedevelopment of transportaon in regards to human resources and science & technology include:
Encourage the transfer of knowledge and technology, in which currently, Indonesia s manufacturing
capability is limited to acvies with low added value (it is necessary to raise Indonesias
manufacturing posion in the value chain so that it is no longer just producing simple plasc
component, but have the capacity to produce the body, electrical components and complex
transmission); Improve ability to provide adequate resources for experts with proper skills to perform higher
addedvalue tasks, especially to aract investments from Original Equipment Manufacturers (OEMs) to
Indonesia, specically in Java.
As a marime country with extensive territorial waters, Indonesia requires sea transportaon to travel within
its archipelago. Ships are needed, not only as a means of transportaon for passengers and goods, but also to
support the defense system in Indonesian waters.
Within the last ve years, the shipping industry in Indonesia has shown good progress. In March 2010, Indonesia
had a eet of 9,309 units (11.95 million Gross Tonnage), an increase by 3,268 units of ships (54.1 percent)
compared to that in March 2005 (6,041 ships; 5.67 million Gross Tonnage) (IPERINDO, 2011). This increase is
the impact of the implementaon of base cabotage, e.g. 100 percent of domesc freight must be transported
by Indonesian-agged vessels (Presidenal Instrucon No. 5 Year 2005 on the Naonal Shipping Industry
Empowerment).
Shipping
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On a naonal scale, the major challenge facing the shipping industry is to increase the capacity of the naonal
ship building industry to build ships. This is a result of the implementaon of base cabotage, considered by
some as too early and not in line with domesc industrial capability to build ships. On an internaonal scale,
the main challenge is to increase the role of Indonesia in internaonal ship building. Indonesia is one of thelargest marime countries in the world, but the posion of Indonesia in the role of ship building in the world
is sll far below Vietnam. Currently, Indonesia is ranked 18th while Vietnam is ranked 5th. Top posion is held
by China, followed by South Korea and Japan (Investor Daily, 2009; IPERINDO, 2011)1.
Strategies needed to be undertaken to raise the level of Indonesias marime posion:
Increase ulizaon of domesc producon of ships;
Increase capacity and capability of the shipping industry;
Development of shipping supporng industries (shipping component); and
Improve support of the banking sector to the shipping industry.
Regulaon and Policy In order to support the major economic acvies of shipping development inJava, as well as Sumatra, the necessary support and related policy regulaons needed are:
Increase the number of manufacturers and the ability of naonal shipbuilding industry in the construcon
of ships up to a capacity of 50,000 DWT (Dead Weight Tonnage). Shipyards that have the facilies in the
form of buildingberth/raving dock capable of building/repairing boat/vessels up to a capacity of 300,000
DWT are directed to be developed outside of Java or Sumatra;
Give priority to the building and improvement for ships under 50,000 DWT in the country;
Review Presidenal Decree No. 22 Year 1998 on Commercial Ships and Fishing Vessel Import in New and
Non-New Condion, in the context of ulizaon of the naonal shipbuilding industry and its supporng
industries;
Give priority to the manufacturing of vessels supporng exploraon and exploitaon of oil and gas that
can be made domescally, except for the type-C vessels;
Determine the reasonable level of interest rates and collateral for loans from commercial banks and the
provision of so loans facilitated by the Government;
Restructure the strong nancial support from a number of nancial instuons in the country to nance
the domesc producon of ships in order to comply with the provisions of cabotage;
Review the policy for Value Added Tax (VAT) from upstream to downstream shipping industry in order to
cut cost of producon;
Review the applicaon of policy on import duty covered by the Government (BM DPT) for the shipping
industry, in which BM DPT applies only for shipping components that are not produced in Indonesia.
Connecvity (infrastructure) Eorts to develop the shipping industry in Java requires connecvity(infrastructure) support in the form of: Pier development, break water facility, main access point and terminals access point at the seaports used
for shipping industry acvies;
Provision of electricity;
Provision of clean water treatment plant and wastewater treatment facilies.
Human Resources and Science & Technology Shipping industry acvies should also besupported by the development of human resources and science & technology through:
Increased capability in ship design through the development of special schools in the eld of shipping
industry to improve capability to produce sha, propellers, steering gear and deck machinery;
Educaon development to increase the capacity of industries supplying raw material for ship component; Improved facilies of test laboratories to comply with the Internaonal Marime Organizaon (IMO)
standards;
Roune training for work force in the shipping industry.
Source: IPERINDO, 2011
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
ShipUnit
9,309
6,041
unl March 31, 2005 unl March 31, 2010
3,268 unit
(54.1%)
Figure 3.C.16: Increasing
Number of Fleet Naonal
Commerce Indonesian ag
(Posion in March 2005 vs.
March 2010)
1Investor Daily, 2009, Investasi Galangan Kapal Butuh US$ 5,4 Miliar,hp://www.ptppa.com/index.php?opon=com_content&view=arcle&id=98%3Ainvestasi-galangan-kapal-butuh-us54-miliar&cad=1%3Alatest-news&lang=in, April 6th, 2011IPERINDO, 2011, Potensi S ektor Industri dan Manufaktur Bidang Perkapalan,disampaikan pada Rapat Percepatan dan Perluasan Pembangunan EkonomiIndonesia 2011-2025, Borobudur Hotel, February 8th, 2011
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As menoned in the Presidenal Regulaon No.28 Year 2008 on Naonal Industrial Policy, ICT has beenrecognized as a mainstay industry of the future. In addion, the ICT is a meta-infrastructure2, which is
becoming an important prerequisite for maintaining the sustainability of economic growth. Development of
ICT should connue to be accelerated in order to improve the naons compeveness to create knowledge
based economy.
ICT has been able to provide the range and choice of services that increasingly facilitates various levels of
society to gain access to voice communicaons, images and data. Currently, except for Maluku and
Papua, all major cies in Java and other main islands have been connected by ber-opc backbone network.
Meanwhile, the ICT market is growing from year to year. In 2009, markets included hardware products valued
at USD 979.9 Million, consulng USD 211.7 Million and soware USD 110.3 Million (HP Indonesia, 2009).
However, to support the acceleraon and expansion of economic development, ICT infrastructure
development needs to adapt to internaonal trends and available new technologies. The Indonesian
government has targeted the development of the Naonal Broadband Network (NBN) for the period 2010-
2015. This is in line with the World Bank study (2009) which states that for developing countries, every 10
percent increase in broadband penetraon can enhance economic growth by 1.38 percent. As one of the
major naonal economic acvity, the development of NBN is integrated into the Masterplan for Acceleraon
and Expansion of Indonesia Economic Development (MP3EI).
2Metainfrastructure is any infrastructure which can improve theeecveness of other infrastructure
Informaon and Communicaon Technology (ICT)
Source: Telkom Indonesia, 2011
80%
70%
60%
40%
30%
20%
10%
0
InstalledBroadband
Percentage
Installed Broadband Capacity Percentage
2010 2011 2012 2013 2014 2015
up to 1 Mbps 19% 15% 11% 7% 3% 2%
1-4 Mbps 60% 53% 42% 29% 19% 8%
20 Mbps 21% 31% 43% 56% 68% 75%
100 Mbps 0% 1% 4% 7% 11% 15%
Figure 3.C.17:
Wireline Access
Transformaon
target 2010-2015
The target to be achieved in the development of ICT infrastructure is to develop NBN based on the
development of the Telkom Super Highway network and other network operators that currently exists. With
this, the target of the development of ICT by 2014 is reaching broadband connecon level of 8 percent of allhouseholds or 30 percent of the populaon already convered by broadband access.
However, the development of NBN to spur economic growth must also be synchronized with the eorts to revitalize
the domesc ICT industry, considering that during this process, the ICT sector remains largely dependent on imported
goods. Data from Ministry of Communicaons and Informaon (Kemkominfo) shows that the development of
ICT infrastructure experienced rapid growth with capital expenditure (CAPEX) of ICT devices around IDR 40 Trillion
during the period of 2004-2005, and the number is increasing from year to year, especially with the growing needs
fornaonal broadband capacity.
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2008 2009 2010 2014
Populaon (million) 238 240 242 252
Number of Household (million) 61 62 63 66Number ofBroadband (million) 0.41 0.85 1.25 19.7BB Penetraon (% of Household) 0.2% 0.4% 0.5% 8%
BB Penetraon (% of populaon) 0.7% 1.4% 2% 30%
Broadband
Penetraon
Target
ICT INDUSTRY UPSTREAM-DOWNSTREAM (CURRENT CONDITION)
FOREIGN
FOREIGN FINISHED
PRODUCT
ICT
COMPONENT
NON ICT
COMPONENTASSEMBLY
ASSEMBLYSW DESIGN
HOUSE
FOREIGN
- Plasc
- PCB Design
House
- Antenna
- Module
- Cabin
- Power
- Plasc
- Copper
- Paper
- Prinng
- Base Staon
- CPE
- M.I.D.
- Handset
- Computers
- User
Interface
- Games
INDONESIA INDONESIA INDONESIA
& FOREIGN
? 60% 5% 5% 30%BOM
Weight
Source: Telkom Indonesia, 2011
UPSTREAM DOWNSTREAM
Figure 3.C.20:
ICT Industries
Downstream-
Upstream Linkages
Figure 3.C.18:
Naonal ICT Service
Target
The ICT industry structure can be described in the form of layers, in which the industry located at the upper layer
depends on the layer below it (ICT industry Layer Structure) as is shown on gure 3.C19.
Based on consideraons for strategic posion, the readiness of stakeholders in the country, values, and schedule
of implementaon, it is expected that the Government of Indonesia will fully support domesc industries,
namely:
1. Device Manufacturing Industry;manufacturing of terminal devices in all Economic Zones and chipset
industries centered in Economic Zones located in Java.
2. Ecosystem Development-based Services Industry;i.e. professional and consulng services, market research.
3. Content and Applicaons Industry;which support soware applicaons in producve sectors such as
agro-industry, tourism, sheries, mining, and creave industries (adversing, animaon, games, cloud
applicaon).
4. Ecosystems Research and Innovaon to support industrial development and synchronized with the
priories and needs of users in each economic zone.
In the case of ICT device manufacturing industry, there are linkages between upstream-downstream industries.The upstream industry represents research and development (R & D) and the downstream industry is
the nished product in the form of devices. Devices are not only limited to small/hand-held devices, base
staons, computers, and electronic tools, but also supporng devices for telecommunicaons operator
(telecommunicaons infrastructure).
The main challenge faced by the ICT industry is preparing to face free market compeon beginning 2014.
In 2014, aside from Indonesia, which targets a 30 percent broadband penetraon, other countries are also
targeng large increase in broadband penetraon i.e. Korea 93 percent, Singapore 87 percent, Malaysia 73
percent and Taiwan 57 percent.
Figure 3.C.19 Structure
of ICT Industry Layer
Layer 0 Content Industry
ICT Applicaon Industry
(e-Government, e-Health)
Access Sevices Industry
Infrastructure Services Industry
(network provider)
Integraon, Installaon, and MaintenanceSystem Industry of ICT Device
ICT Device Manufacturing Industry
ICT Device Component Industry
ICT Device Component MaterialIndustry
Layer 1
Layer 2
Layer 3
Layer 4
Layer 5
Layer 6
Layer 7
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Strategies needed to respond to the above challenges include:
Harmonizaon of policies and government programs to create a conducive atmosphere to encourage the
development of ICT in Indonesia;
Acceleraon of equitable provision of infrastructure and ICT services; Expanding the use of ICT applicaons in various major economic acvity;
Strengthening the compeveness of the naonal ICT industry.
Regulaon and Policy In order to support the general strategy, regulatory and policy measures needto be aligned, namely:
Evaluate TKDN (Level of Local Content) calculaon and guidance for Domesc Industries including for SMEs;
Provide tax incenves for ICT components that can not be produced in Indonesia;
Prepare mechanism of cooperaon among government agencies, private, and research instutes.
Connecvity (infrastructure) The development of ICT industry needs to be supported by: Provision of backbone and last mile connecon with required broadband capacity to support business
enes;
Development of government communicaon and informaon systems that are safe (secure) and
integrated.
Human Resources and Science & Technology Development of ICT industry needs to besupported by the following acvies:
Build data centers and data recovery center based on in-country potenals and human resources;
Encourage capacity building in the ICT sector in every layer of society, both in the civil society,
government agencies and decision maker(s);
Build domesc applicaons and digital content industries;
Expand the scope of laboratory tesng capabilies so that it can test the technical specicaons of other
countries;
Build and develop the Smart and Techno parks.
It is very important for Indonesia to have the ability to maintain security and to create conducive atmosphere
for economic development. The task of maintaining naonal security will be easier if there is guaranteed
technological capability support from the naonal strategic industry. The naonal technological capability
should be able to produce defense equipment products as well as commercial products that are highly
compeve.
In the defense equipment industries, there are a number of naonal programs where the state-owned
enterprises is the lead integrator (person in charge of the system) and SOE Strategic Industries as the level 1,
level 2 and level 3 (er 1 to er 3) Contractors. Naonal programs should be able to produce planes, rockets/
missiles, torpedoes, warships/submarines, combat vehicles, weapons, and ammunions.
There are compelling reasons for Indonesia to further develop this area:
Indonesia has a higher border threat as a result of its vast sea and land border. Border cases in Indonesia
are oen triggered by strained relaons with neighboring countries. The forms of violaons that occur
are complex, including illegal shing, illegal mining and trading in the form of sand mining and logging;
The forms of the oense require a systemac eort to save Indonesias oceans, as well as improve the
ability to exploit marine resources of Indonesia;
The strategic posion of Indonesia on the axis of internaonal trac, including its placement making it
more prone to various security threats by air. Air safety issues with potenal future threats include threats
of violence (air piracy, sabotage vital facilies, terror, and so on), the threat of air violaons (dark and
reconnaissance ights to parts of Indonesia), the threat of resources (use of airspace by a foreign country),
and the threat of violaon of the law through the medium of air (illegal migraon and human smuggling).
Defense Equipment
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2009-2010
2011
2011-2015
2015-2020
2025
Determinaon of TNIs Needs
Industrial Policy
Naonal Defence
Determinaon of The
Enterprises
Formulate Naonal Program
Determinaon of Enterprise
Mission
Budgeng Policy
Expansion to global market
through partnership
MISSION
1. Fullling the basic needs of military dimension
of land, sea, and air, so that Indonesia could
become independent
2. Experng technology and having domesc
industrial root
3. Having competent and creave human
resources
4. Having wide network through strategic
alliances with domesc and overseas partner
Independent DefenceIndustry
Compeveness Development
Investment
Progressive Manufacturing Prototyping
Long Run
Core CompetenceDevelopment
Strategic Alliances
Short Run:
Determinaon of Mission
Improving Enterprises Quality
Human Resources Preparaon
System Reorganizaon
Increasing Revenue Mix
Middle Term:
Business Reposioning &
Markeng System
F inancial Access Domesc and Foreign Partnership
Innovaon and Development of
Product & Services
Figure 3.C.21:
Strategic Defense
Industries unl 2025
Regulaon and Policy In order to support the general strategy, the following maers must beaddressed:
Urgent discussion of the bill related to the Strategic Industries Development and Ulizaon for Defense;
Acceleraon of the publicaon of the Presidenal Instrucon that can be used by the Ministry of Defence
and Security, Ministry of Industry, Naonal Development Planning Agency, and Ministry of Finance in
carrying out the construcon of propellant;
Increased cooperaon with foreign partners, as well as increased involvement of Indonesian humanresources in the development of KFx ghter aircra design.
Human Resources and Science & Technology Support for the development of major defenseequipment requires the construcon of research centers in order to increase technological capabilies and
producon.
On the other hand, the main economic acvies for defense equipment is to address problems in order
to develop and grow. This is due to the absence of Law for Development and Ulizaon of Strategic Defense
Industries that would support Indonesia to have a naonal defense industry. The domesc industry has not
been able to provide for all of their own needs.
Development of acvies for defense equipment to 2025 emphasizes the fulllment of the increasing needs of
defense equipments from TNI (Naonal Army) and Naonal Police. This can be accomplished by beginning with
the following strategies: synchronizaon to meet the needs of defense equipment within the domesc industry,
accelerate technology transfer process (transfer of technology) for infrastructure development, increase local
content and producon cooperaon (joint producon), and encourage further economic acvity in the country.
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Aerospace Industry
In addion to products related to defense and security, other products that are highly commercial/compeve
that could be an output from the naonal strategic industry is the producon of air passenger transportaon.
In the vast archipelago of Indonesia, geographical condions oen dictate the mode of transport. If the locaon
is dicult to reach using land or sea transport, then air transport is a beer alternave, only if there is sucient
airport infrastructure.
Air transport is a preferred mode in order to facilitate the ow of people, goods and informaon from an area or
region to another. Air transport is considered a transportaon mode related to me ulity as a means of moving
people, goods and informaon within or across regions.
The implementaon of air transports to remote areas, which oen is economically not protable, needs
government compensaon in some form of subsidies to ensure connuity of air transport services to remote
areas.
Main challenges faced by the Naonal Aerospace Industry are as follows:
The market for the product class Feeder (19 passengers) and Commuter Regional (30 to 50 passengers)
are very large. Almost all the world airline industry compete market in Indonesian market; Aircra products owned in Indonesia, are products of the 1970s and 1980s, and there has been no
substute product unl now;
Low local commitment to use domesc products;
Not having Customer Financing and Leasing Facilies like other aircra industry;
Growth in passenger movement and goods transport connue to rise, though the rate of an aircra
accident rate in Indonesia is sll high;
The average age of an aircra in Indonesia is over 20 years.
NATIONALSYNERGY
Aircra with 50 seatsCapacity (Naonal Producon)
Amphibi Aircra
Rapid passengers growth
Lack of aircra with 50seats capacity
Exisng Condion NATIONAL STRATEGICINDUSTRY
Figure 3.C.22:
Synergy Aerospace
Industry Development
Planning and ImplementaonCoordinaon
Sercaon andUsers
Assistance andIndustry Policy
Supervisor of SOE
Technology
Development
Ministry of Research
and TechnologyGovernment
Agencies and R&D
Ministry ofTransportaon
Ministry ofIndustry
Ministry of SOE
Ministry of Research andTechnology
The Agency for the Assesment and
Applicaon of Technology
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Figure 3.C.23:
Comparison between
Esmated Number of
Vehicles and Highway
Capacity
15,000
10,000
5,000
0
10,000
8,000
6,000
4,000
2,000
0EsmaonofTotalVehicle
inJabodetabek
RoadsLength(Km)
Esmaon of Total Vehicle Number
Roads LengthRoad Capacity
2008 2009 2010 2011 2012 2013 2014 2015
Regulaon and Policy To address the various challenges in the development of the naonal aerospaceindustry, regulatory and policy support is required for the following:
Develop standardized aviaon components by using maximum local content and technology transfer;
Develop raw materials industrial and components to support the aerospace industry; Develop and produce primarily passenger aircra with a capacity of less than 100 passengers;
Provide ease of nancing facilies and taxaon;
Facilitate cooperaon with similar industry and/or market users at home and abroad;
Provide support from the state budget nancing, budget and procurement of domesc banks in the
producon of naonal aircras;
Mul-years contracts, can be used by remote areas aviaon operators to purchase the aircra with a
capacity of 19 passengers;
Establish an integrated regional airline industry.
Human Resources and Science & Technology Eorts to support the naonal aerospaceindustry requires human resources and science & technology and development through:
Development of markeng research and engineering that are commercially feasible;
Human Resources Development in aerospace industry.
The Jabodetabek Area covers three provinces (namely DKI Jakarta, Banten and West Java) and 12 regencies/
cies which control approximately 60 percent of naonal import-export acvies, as well as more than 85
percent of decisions related to the naons nancial.
Based on the latest populaon data, the total populaon residing in the Greater Jakarta area is approximately
28 million inhabitants (2010) or more than 12 percent of the naonal populaon. Greater Jakarta area is the
largest urban area in Southeast Asia. It is esmated that more than 30 percent of Greater Jakarta residence
has income of more than IDR 50 Million or approximately USD 5,000 per year.
There are a number of challenges faced in the development of Greater Jakarta. One of the main problems
in this region is high trac congeson caused by the current road capacity, which if far below the capacity
required to accommodate vehicle movement. Growth of motor vehicles is much higher than the growth of
road capacity.
Greater Jakarta Area/Jabodetabek Area
Another challenge faced by the Greater Jakarta area is the low availability of clean water, limited airports and
seaports capacity, and hindered access to airports because of ooding during the rainy season. The occurrence of
ooding is caused by poor drainage arrangements, and the buildup of waste in rivers such as Ciliwung River, and Kali
Krukut.
Source: Team Analysis, 2010
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40
30
20
10
0
Soekarno-Haa Airport Capacity(Current condion)
Source: Team Analysis, Jakarta Globe Source: Indonesia Shipping Report 2010
Passengers
Capacity
+15%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Terminal 3Operaon
20
15
10
5
0
Passengers (Million) Mn TEUs
Capacity and Esmated of ContainerSea Port Demand in Jakarta
Passengers
Capacity
2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030
Inadequate CapacityAer 2014
Figure 3.C.24: The Capacity of
Airports that are no Longer
Sucient
Figure 3.C.25: Capacity and
Demand Esmates in Jakarta
Container Port
Strategies undertaken to address these challenges include:
Spread business acvity outside of DKI Jakarta to reduce the me of travel between business centers inthe internal Greater Jakarta;
Development of a mass transportaon system that is comfortable, safe and cheap, especially to
commute from the suburb area (expected to reduce air polluon of this region more than 50 percent)
and because about 40 percent of the naonal vehicle located in Greater Jakarta, it will signicantly
reduce the amount of naonal subsidies for fuel. Subsidy reducon could be used by other regions in
Indonesia that is more in need;
Development of interconnected mass transportaon network paern that is easily accessible to all the
acvies surrounding the business centers and government;
Development of an ecient logiscs network of producon centers in the region as well as with other
producon centers that have a close relaonship;
Development of sewerage and drainage system that can overcome the problems of environmentalquality (accumulaon of garbage, slums and ood).
Regulaon and Policy In order to support this general strategy, some related regulatory andpolicy measures need to be done, namely:
Arrange transportation management into a single institutional handling at the central government
level;
Build the Maja area in Tangerang and provide incenves to encourage spread of some acvity outside
of DKI Jakarta;
Encourage cooperaon with various pares, both with domesc and internaonal community, through
mechanisms that uphold professionalism;
Organize neighborhoods and business centers to encourage a beer micro-cosmic condion through
the provision of green areas;
Expand the industrial area to the east of Jakarta, including developing smart community.
Connecvity (infrastructure) Advancing the Greater Jakarta area can be done by: Further developing Soekarno Haa Airport;
Further developing the Port of Tanjung Priok and build a new possible Port at Cilamaya;
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Figure 3.C.26: The Value of
Investments in Java Corridor
Develop a network of mass transportaon trains from suburbs into the center of metropolitan areas and
metropolitan centers in the region;
Build the MRT North-South, East-West to reduce air polluon and the amount of naonal subsidies for
fuel; Build a monorail and a circular railway line from Manggarai to Soekarno-Haa Internaonal Airport;
Improve road network in the Greater Jakarta area, including the construcon of y-overs and under-
passes;
Develop a logiscs network of industrial centers on the outskirts of Greater Jakarta area for improved
access to the Port of Tanjung Priok Port Cilamaya, and Soekarno-Haa Airport;
Reform the ood control system;
Reform the system of solid and liquid waste disposal from residenal areas and industrial areas, including
the development of processing and nal disposal of solid waste in West Java;
Develop new sources of clean water supply.
Other economic acviesIn addion to the main economic acvies for Java, there are also several industries that are considered
to have potenal for development, including steel, copper, oil and gas as well as the 10 Naonal Tourism
Desnaons. These acvies are expected to contribute to the enre development of Java Corridor.
InvestmentThe Java Economic Development Corridor idened new investment plans for development of main economic
acvies of Food and Beverage, Texles, Transportaon Equipment, Greater Jakarta Area, Shipping, Defense
Equipment, and supporng infrastructure with a total investment of IDR 1,278 Trillion
The following is an overview of exisng investment in Java:
1,500
1,000
500
0Food andBeverage
Indicaon of Investment in Java Corridor
IDR Tn
JabodetabekArea
TransportaonEquipment
Shipping Texle InfrastructuresICT Total
Mix
SOE
Private
Government
Defense
Equipment
352
844
419
283
95
481
1,278
25 32 9 29 4
Investment iniaves that successfully idened the funds are collected from Government, private sector and
state-owned enterprises as well as a combinaon of all.
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In addion to the investments listed, there are some other investments that are part of the 22 naonal
priories but are not part of main economic acvies in Java, such as Steel, Copper, Tourism (focused on 10 of
the Naonal Tourism Desnaon) and Oil & Gas with a total investment of IDR 168.58 Trillion.
Strategic Iniaves of Java Corridor
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Figure 3.C.27: Java Economic Corridor Investment Map
Java Economic Corridor
Government
SOE
Private
2K2-(16)-2
IDR 351.89 Tn
Jabodetabek Area
IDR 7.58 Tn
Banten: Food and
Beverage, Transportaon
Equipment
K2-(2,4)-1 1
IDR 1.27 Tn
Bogor:Transportaon
Equipment
K2-(4)-3 3
IDR 28.65 Tn
Bekasi & Surroundings:
Transportaon Equipment,
Food and Beverage
K2-(4,2)-4 4
IDR 4.37 Tn
Southern Central Java:
Food and Beverage,
Texles
K2-(2,3)-6 6
IDR 2.06 Tn
Pasuruan-Malang:
Food and Beverage
K2-(2)-8 8
IDR 51.64 Tn
Java:Trans Java Toll Road
K2-(23)-9 9
IDR 204.54 Tn
Java:Railway and
Express Train
K2-(23)-10 10
IDR 13.44 Tn
Metropolitan Gerbang
Kertosusilo: Food &
Beverage, Shipping
K2-(3,5)-7 7
IDR 1.97 Tn
Bandung & Surroundings:
Defense Equipment,
Texles
K2-(18,3)-5 5
1 2
3
4
5
10
10
109 9
9
6
8
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No Code LocusMain Economic
AcvityStakeholders Supporng Infrastructure
InvestmentValue
(IDR Trillion)
Investment SharingTowards Main EconomicAcvies in All Corridors
(%)
1 K2-(2,4)-1 Banten
Food and Beverage
Private
Roads, Power & Energy, Airports, Ports,Railway, Other Infrastructure
5.12 20
TransportaonEquipment
Roads, Power & Energy, Airports, Ports,Railway, Other Structure
2.46 8
2 K2-(16)-2 Jabodetabek Jabodetabek AreaGovernment, SOE
and Private
Airports, Railway, Ports, Roads, OtherInfrastructure
351.89 100
3 K2-(4)-3 BogorTransportaon
EquipmentPrivate
Roads, Power & Energy, Other
Infrastructure1.27 4
4 K2-(4,2)-4Bekasi and its
surroundings
TransportaonEquipment
Private
Roads, Ports, Railway, Power & Energy,Other Infrastructure
22.57 69
Food and BeverageRoads, Ports, Railway, Power & Energy,
Other Infrastructure6.08 24
5 K2-(18,3)-5Bandung and its
surroundings
Defense Equipment
SOE and Private
Airports, Ports, Power & Energy, OtherInfrastructure
1.58 100
TexleRailway, Roads, Power & Energy, Other
Infrastructure0.38 4
6 K2-(2,3)-6 Southern CentralJava
Food and Beverage
Private
Roads, Ports, Power & Energy, Railway,
Other Infrastructure
3.46 14
TexleRoads, Ports, Power & Energy, Other
Infrastructure0.91 10
7 K2-(3,5)-7Metropolitan
Gerbang Kertosusila
Food and Beverage
SOEand Private
Roads, Ports, Railway, Power & Energy 4.44 17
Shipping Roads, Power & Energy 9.00 56
8 K2-(2)-8 Pasuruan-Malang Food and Beverage PrivateRoads, Railway, Power & Energy, Other
Infrastructure2.06 8
9 K2-(23)-9 Trans Java Toll Road Cross Sector
Government,
Private - 51.64 3
10 K2-(23)-10Railway and Express
TrainCross Sector
Government, SOE
and Private- 204.54 11
Figure 3.C.28:
Investment Indicaon
Agglomeraon
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Figure 3.C.29: Indicaons of
infrastructure investment by
government, SOE and Mix
In addion to investments associated with the main economic acvies above, the Government and SOEs
are commied to infrastructure development in Java Corridor. The following is an indicaon of infrastructure
investment which will be implemented during 2011 - 2014 for each type of infrastructure that will be made by
the Government, SOEs, and mix:
Looking forward, even though Java will connue to serve as a pillar for the Indonesian economy, economic
development for main economic acvies should be limited if they consume large quanes of water and
have high energy consumpon. Java should restrict economic acvity that is aggressively changing the
environmental landscape. In the period from 2011 to 2014, Java Economic Development Corridor will focus
on six main economic acvies with an indicaon of the total investment to be issued expected to reach IDR
1,278 Trillion.
In relaon to spaal structure, and by promong the principles of sustainable development, infrastructure
development in Java Economic Corridor will be focused on the northern part of Java. Along the northern coastof Java, the Trans Java highway and railroad will be constructed that will connect dierent locuses.
The development and improvement of seaports in Tanjung Priok, Cilamaya, Merak, and Lamongan will
expedite the ow of goods both intra-and inter-corridor. Internaonal Airport of West Java which will be built
in Majalengka, and is expected to accelerate the realizaon of the Corridor and at the same me spread the
density of economic acvies in western part of Java.
The development of a number of main economic acvies and the development of connecvity in Java
Economic Development Corridor is expected to help Java overcome the main problems faced by the corridors
of GDP disparies among regions. Acceleraon and expansion of the economy in Java Corridor is expected
to strengthen the posion of Java as the Center of Naonal Industry and Services Provision and provide
posive eects for the development of other corridors.
Indicaon of infrastructure investment by Government, SOE, and Mix (IDR Tn)
800
600
400
200
0
237
32
16
105
45
24
138 787
TotalOther
Infrastructure
Water
Ulity
ICTAirport RailwayPower & EnergyPort
189
Road
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