Study on Private-Initiative Infrastructure Projects

in Developing Countries in FY2010

Study on Jalarta International Gateway Port Development

Project in the Republic of Indonesia

SUMMARY

March 2011

第1章

第2章 The Ministry of Economy, Trade and Industry

Prepared by:

Ernst & Young ShinNihon LLC

Japan External Trade Organization (JETRO)

ITOCHU Corporation

Oriental Consultants Co., Ltd.

1. Background of the Project

The Greater Metropolitan Area extending from West Java province to Banten province become

significantly important center on various industries and have 36% of GDP in total of Indonesia (in 2008,

except oil and gas ). The port of Tanjung Priok at this area is functioned as only international commercial

port and handled 3.8million TEU in 2009 for the containers. The handling capacity is evaluated at 4million

TEU and is expected to have a difficulty on handling near future.

In this connection, JICA undertook the studies in the international cooperation for port developments as

mentioned below, and reported importance of development for the port infrastructure and access roads in

order to improve the trade environment and ensure effectiveness of logistics.

<< The study for development of the Greater Jakarta Metropolitan ports 2003 >>

<< The study on trade related system and procedures in the Republic of Indonesia 2005 >>

To develop introduction of the private investment, the government provided the policy of PPP (Public

Private Partnership) in Presidential Regulation No.42 in 2005. In respect of Port development, Shipping

Law was enacted in April, 2008 and has induced the private investments in addition to separation of port

management/port operation sectors, aiming to introduce competition and effectiveness on port

management. JICA was also proceeding the study.

<< The study on the new public private partnership strategy for the port development and

management in the Republic of Indonesia 2009 >>

Following the previous supports, the preparation of Master Plan for ports developments in the metropolitan

area for 2025 is ongoing by JICA.

<< Master plan study on port development and logistics in greater Jakarta metropolitan area May,

2010 – May, 2011 >>

Under processing on the above studies, it is a fact that the cargo volume has been increasing rapidly, that

requires urgent projects which cope with immediate increase of the cargoes. The projects have been

ongoing under Japanese Yen loans.

<< The Urgent Rehabilitation Project of Tanjung Priok Port >>

( Scope : widening and deepening the ship lane. Yen Loan : 12 billion Construction : 2011 )

<< Tanjung Priok Access Road Construction Project >>

( Scope : Constructing an access road to Tanjung Priok Port Yen Load : 52.9 billion

Construction : 2011 )

In addition to above development, the urgent construction of new container terminal in Tanjung Priok Port

is now under discussion. In compliance with the request from Indonesian government, JICA is now

proceeding Pre-F/S on construction at North Kalibaru after review of their ongoing „‟Master plan study on

port development and logistics in greater Jakarta metropolitan area‟‟. In the same time, the private

investment plan by the state-owned seaport operator, Pelindo II is separately proceeding at their own

expense for new container terminal of which the opening is aimed in 2013. These 2 plans have different

scope and implementation schedule but the discussion on unification is not concluded yet.

On the other hand, Japanese private firm group consisting of Itochu Corporation and NYK Line intend to

participate the terminal management of new terminal and is desiring application of Japanese PPP scheme.

Japanese firms opine on management of new terminal that it is essential to work with Pelindo II who is

experienced in Tanjung Priok port. However, Pelindo II is going to be one of the terminal operators under

new shipping law and may have a difficulty on securing the concession right of new terminal as the

established port authority is responsible for competitive selection of the operator under new regulation.

To enable Japanese firms to ensure their participation, the development plans should be verified under

discussion with the private counterparts and government officials and identified on practicability.

This study is processing on construction of new container terminal for Port development plan phase 1 at

North Kalibaru for evaluation and shall provide the proposal with action plans from the viewpoints of the

private firms in order to ensure implementation.

2. Study of Concept

The study is processing in the following steps.

1) Identification of the private investment ongoing plan(Pelindo II)

First of all, the process and development of the ongoing plan is identified for port plan, details of design,

construction cost, and environmental and social evaluation etc.

2) Technical review

The technical items are studied as mentioned below.

a) Container cargo demand forecast

The demand forecast is reviewed based on JICA data of The project of master plan study on port

development and logistics in greater Jakarta metropolitan area and the projection of the state-own seaport

operator, Pelindo II, and verified.

b) Study of container terminal layout plan

The requirements of terminal size and capacity is identified in view of current terminal operation data, and

current vessel size and possible increase of the tonnage in the fleet for future. The specification and area of

the terminal is determined.

c) Port plan

The port plan is determined based on current private investment plan in consideration to designed vessel

size and SEA etc.

d) Conceptual design

The design calculation is undertaken based on the typical sections of the channel, breakwater, revetment,

reclamation, access road and other facilities which are determined in the conceptual design. The

implementation of new technical method should be considered in view of squeezing the construction lead

time as well as comparison with current method.

e) Project cost

The estimation of project cost is calculated based on implementation processes of the general design and

undertaking the appropriated method of construction in view of short implementation period. The

introduction of new technologies is discussed in comparison with the previous method.

f) Environmental and social impacts

The evaluation of environmental and social impacts includes verification of the contents of EIA conducted

by Pelindo II and identification of the stake holders. The action plan for the project should be prepared.

3) Justification of the project

The justification of the project is evaluated with study of the following items.

a) Study of investment demarcation between public and private.

It is in general under the ordinary port development and management project that the public is responsible

for the unprofitable public investment for the infrastructures including the breakwater and dredging on

access channel etc ,and the private for beneficial operation and management including installment of the

terminal facilities/equipments etc. In this study, the several patterns of demarcation are considered and

summarized with the implementation schedule and construction cost in view of urgency of Port

development plan phase 1 at north Kalibaru.

b) Verification of implementation schedule ( in case study )

The implementation schedule is verified by each demarcation and reviewed for expected completion and

commencement of operation. The selective demarcation for earlier completion/commencement of

operation is determined for evaluation of finance at next stage.

c) Evaluation of finance ( in case study for practicability )

The verification of the costs is undertaken with study on practicability of implementation schedule.

d) Contributed economical effectiveness ( in view of National investment )

The contribution to economical effectiveness is considered and verified in case of execution and

inexecution.

4) Proposal toward implementation of the project

The proposals of study team are compiled based on the above verifications.

a) Appropriate demarcation of public/private investments in view of commencement on operation and

profitability.

The timing of commencement and appropriate demarcation is proposed in consideration of

implementation schedule and financial evaluation.

b) Utilization of Japan ODA finance program

The amount and investment objectives are proposed.

c) Utilization of Japanese technology on port construction

The proposal on utilization of Japanese advanced technology is prepared in order to squeeze the

construction period and quality management.

d) Action plan

The action plan is prepared and includes each tasks for private and public parties concerned including

promotion/negotiation with Japanese/Indonesia governments for implementation of the projects.

3. Description of the Project 3.1 Progress of DGST plan

DGST responsible for the port development plan is preparing the Master Plan of Tanjung Priok port and

under assistance of JICA and proceeding Pre-F/S for North Kalibaru phase 1 plan. DGST have approved

the port development plan at North Kalibaru phase 1 in November, 2010 proposed by the interim report of

JICA study team and is going to revise the Master Plan. The JICA study including Pre-FS for North

Kalbaru will be completed until May 23, 2011 and then, the request on assistance of F/S and DD etc will be

issued with Japanese government to proceed the plan.

Fig 3-1 Port development plan at North Kalibaru phase 1 proposed by JICA study team

( source : the interim report of JICA in November, 2010)

3.2 Progress of the Private investment plan (Pelindo II)

Pelindo II is proceeding detailed design and selection of the contractor at their expense aiming to open new

container terminal in 2013. Pelindo II argued on their possession of the concession right that there no

need to have competitive tender in case of the entire private investment unless PPP project.

The port development plan of the private investment by Pelido II shown below Fig 3-2 was based on the

Master Plan prepared by MOT in 2007 but it differs from the plan proposed by JICA study team and

incorporated in the revised Master Plan by DGST. DGST is not taking a positive stance to accept

commencement of the construction on their plan.

The argument between Pelindo II and DGST is unresolved and will require further development with

uncertainness.

Fig 3-2 Port development plan at North Kalibaru (The private investment plan)

( source : Pelindo II )

3.3 Participation of 2 Japanese private firms

Itochu Corporation and NYK Lines have initiated the PPP project under Japanese ODA loan and intend to

participate on thee operation/management of the container terminal at the port development plan phase 1 at

North Kalibaru. The port plan on this PPP project was modified based on the proposal of JICA study team

is shown below.

Their management plan is based on joint venture with Pelindo II , who is however making argument on

long implementation schedule under utilization of Japanese ODA loan as the opening of new terminal

requires urgency due to higher growth in the projected throughput. Based on our finance analysis, it is

quite difficult for Japanese firms to participate the project with higher risks as the all private investment

had FIRR at lower rate less than 10% in calculation.

On the assumption of participation of 2 Japanese firms in terminal operation business, the concession right

is essential to lie at Pelindo II but it is not fixed due to competitive tender process required in new

regulation. Pelindo II is insisting to proceed their plan at private investment to ensure obtainable

concession right at earlier stage. This issue is still unresolved and under argument.

Fig 3-3 Port development plan at North Kalibaru (proposed by the study team)

The points argued are summarized as follows;

Table 10-4-1-1 Summary of the points argued in the plans

ITEM Pelindo II DGST (JICA Study) METI Study

Development Plan

Berth Length：800m

Depth of Basin：-18.0m

Location：East Water of the Port

Berth Length：1,200m

Depth of Basin：-15.5m

Location：North Water of the Port

Berth Length：1,000m

Depth of Basin：-14.5m

Location：North Water of the Port

Development Cost617 Million USD

(Pelindo Study)

1,000 Million USD

(Progress Report; still under

estimation)

789 Million USD

(METI Study)

Year of

Commencement

Operation

2013

2015～2016

(Progress Report; still under

estimation)

2015: Partial Operation

2016: Full Operation

Finance All Private InvestmentBasic Infra：Yen Loan

Terminal Facilities：Private

Basic Infra：Yen Loan

Terminal Facilities：Private

Concession RightObtained by private operator with own

investment

Port Authority will call tender for

concessioner

Obtained by private operator with own

investment

OperatorAssumed Pelindo II & local/foreign

partners

Port Authority will call tender for

concessioner

Assumed Pelindo II & Japanese Private

Investors

PPP SchemeIntroduction of PPP scheme is assumed

not required

Concession right will be given through

tender competition even for unsolicited

project

Introduction of Japanese PPP scheme is

assumed on the condition that Pelindo

II and Japanese investors will obtain

concession right

Japanese 2 firms would like to start discussion of the partnership in new terminal management firm but at

first, it is recommendable to induce Pelind II to agree PPP scheme with Japanese ODA loan which enable

to reduce the financial risks and to discuss on ensuring possession of concession right.

4. Implementation Schedule

The implementation schedule of the development plan at North Kalibaru finally proposed by the study

team is shown below table (Table 4-1 Implementation schedule).

On this study, the handling capacity at the current facilities in Tanjung Priok port is estimated at 5million

TEU for the international containers which will be increased as per the international container forecast in

Fig 4-1 Throughput forecast for international/domestic containers at Tanjung Priok. Based on these

forecast and estimation, it is opined that the commencement of operation for new terminal in the port

development plan at North Kalibaru phase 1 is required in 2015 at latest. The implementation schedule is

extended for 5 years but it is essential to ensure schedule management accurately so that the terminal can

be completed without delay.

Table 4-1 Implementation schedule

Fig 4-1 Throughput forecast for international/domestic containers at Tanjung Priok

0

5,000

10,000

15,000

20,000

20

09

20

10

20

11

20

12

20

13

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

22

20

23

20

24

20

25

20

26

20

27

20

28

20

29

20

30

Year

Co

nta

iner

Th

rou

gh

pu

t (1

,00

0T

EU

)

Total Throughput Forecast

International Container Forecast

Domestic Container Forecast

5. Feasibility of the Project

5.1 Preliminary Economic Analysis

The purpose of this section of the report is to evaluate the effect of public investment from the viewpoint of

the national economy. The national benefit is calculated based on the comparison between the “With

Project Case” and the “Without Project Case”.

With Case : defined as the completion of the project proposed in this study.

Without Case : defined in order to handle the excess cargos which are more than the capacity of the

existing container terminals. It is assumed that the cargos are handled at the TJ

Emas port, which is located in the Java Island, and transferred to the hinterland of

TJ Priok port by truck.

The feasibility of the project is evaluated with the calculated Economic Internal Rate of Return (EIRR).

Table EIRR calculation results

CASE Alternative – A Alternative – B

BASE CASE 20.7% 20.6%

the costs increase by 10% 19.5% 19.4%

the benefits decrease by 10% 19.4% 19.3%

In general, it is said that a project with an EIRR of more than 15% is economically feasible considering the

opportunity cost of capital in Indonesia. As for this study, the resulting EIRRs of all cases are larger than

15%. This means that the planned project is economically feasible.

5.2 Preliminary Financial Analysis

The purpose of this section is to evaluate the feasibility of this project by calculating FIRR (Financial

Internal Rate of Return) on the soundness of the balance of payments and investment earnings over time.

The study is proceeded on the fore-mentioned plans in chapter 3, Alternative A ( all private investment )

and Alternative B ( public private partnership ) for comparison. The procurement of investments by the

terminal operator is assumed to comprise 30% by the owned capital and 70% by a loan from the

commercial bank based on the discount rate of 10.5%.

Table 5-2-1 Financial terms and condition for analysis

Alternative A, Case 6

政　　府 民　　間

1 事業費分担 －航路浚渫、防波堤建設、地盤改良・埋立、橋梁・道路建設、岸壁建設、陸上ターミナル施設建設、荷役機械調達

2 収入 －荷役手数料、トランシップ料、コンテナ保管料、コンテナ転地料　等

3 運営費 － 人件費、燃料費、水道光熱費、ターミナルマネージメント費

4 維持管理費 －岸壁、ヤード舗装、建物、荷役機械、維持浚渫、アクセス道路

5 減価償却費 －防波堤、護岸、埋立地、アクセス道路、岸壁、ヤード舗装、建物、荷役機械

6 税金 － 利益の20%

7 物価上昇

8 レベニューシェア

9 資金調達 －自己資金30%、市中銀行70%

市中銀行（年利15%、返済期間10年、据置期間なし）

Alternative B, Case 1

政　　府 民　　間

1 事業費分担 航路浚渫、防波堤建設、地盤改良・埋立、橋梁・道路建設 岸壁建設、陸上ターミナル施設建設、荷役機械調達

2 収入 岸壁使用料、曳船料等荷役手数料、トランシップ料、コンテナ保管料、コンテナ転地料　等

3 運営費 人件費、水道光熱費等 人件費、燃料費、水道光熱費、ターミナルマネージメント費

4 維持管理費 維持浚渫、アクセス道路 岸壁、ヤード舗装、建物、荷役機械

5 減価償却費 － 岸壁、ヤード舗装、建物、荷役機械

6 税金 － 利益の20%

7 物価上昇

8 レベニューシェア

9 資金調達円借款（年利1.5%、返済期間25年、据置期間7年）

円借款STEP（年利0.2%、返済期間40年、据置期間10年）

自己資金30%、市中銀行70%

市中銀行（年利15%、返済期間10年、据置期間なし）

項　　目

項　　目

民間ターミナルオペレーターの収入の10%をRoyaltyとして政府に支払うと仮定

年率5%の物価上昇率を2020年まで考慮（建設費、運営費）

年率5%の物価上昇率を2020年まで考慮（建設費、運営費）

－

The outcome of evaluation is summarized in the below table. FIRR(Financial Internal Rate of Return) of

Alternative A was calculated at lower value , 8.6%, which is below the discount rate of 10.5% in the

assumed owned capital (30% of total investment amount).

In the other hand, Alternative B was quoted at 3.8% for FIRR in the public portion and 18.1% for the

private portion. The major revenue of the public comprises the royalty (10% of the revenue of private

terminal operator) on the previous assumptions but the lower interest loans including Japanese yen loan

shall be required to compensate repayment of the loan. The discussion is continued at the chapter of Cash

flow in details. FIRR for the private portion 18.1% which is higher than the discount rate of 10.5%. It is

recognized that Alternative B is very feasible in financial viewpoint. As the result of evaluation, the

Alternative B plan would be proposed for the favorable demarcation in finance.

Table 5-2-2 Summary of financial analysis

Alternative A

Case 6

Private Operator Government Private Operator

459,300 486,700

FIRR (%) 8.6% 3.8% 18.1%

(A) 10% overrun for investment cost FIRR (%) 7.7% 3.2% 16.5%

(B) 10% lower demand FIRR (%) 7.2% 3.1% 16.3%

(A) & (B) FIRR (%) 6.4% 2.5% 14.7%

Alternative B

Case 1

(Sensitivity Analysis)

Total 946,000906,600Investment Cost (1,000 USD)

6. Introduction of Japanese Technology etc

6.1 Technical Advantage

6.1.1 Container terminal management It is understood that it is significant to consider the quality of service for the users in terminal management

and to ensure continuous efforts and improvements on operational productivity and efficiency among the

terminal operators in competition in order to obtain the regular users (shipping lines). Japanese global

shipping lines have managed and operated their own terminals, through which they have built their

knowledge/experiences on operational demand/required productivity/efficiency etc and management skill

at the position of not only for the ships operator (terminal user) but also terminal management. Especially,

their terminals in Japan have achieved higher productivity among the world under cooperation with the

local stevedore labors. Their knowledge and activity in Japan terminal has been valued in terminal

management overseas and contributed to the benefit for the foreign shipping lines who are jointly operated

and in vessel-shared operation.

6.1.2 Cargo handling equipments

The terminal requires introduction of highly efficient machineries with stable performance and low

breakdown ratio in order to ensure smooth and safety operation. The electrical equipment management

system for these equipments is especially required to be high quality and stable due to direct factor on

emergency stoppage by breakdown and safety issue involved during operation. Low defect ratio can

contribute to not only cargo operation management but also maintenance cost under long term operation.

Under these requirements, Japanese equipments have the advantage to the others. Considering to

environmental effects and energy issue in future, Japanese manufacturers have developed hybrid

machineries and electrical RTG etc with technical advantage.

6.1.3 Construction work

It is said that Japanese firms have the advantage of a quality and process management to Chinese, Korean,

Indian, Thailand and other contractors. It is considered that Japanese contractors are beneficial for this

project which requires short implementation schedule and quick commencement of operation. With regards

to construction materials, a quality of steel pipe piles and corrosion-proof technology have been higher

than other Asian products. The introduction of Japanese high technology on soil improvement is practical

and is definitely contributing to expediting schedule and higher quality.

6.1.4 Study / Design

Japanese consultants have so far worked on various ODA projects in Indonesia and preformed well for

preparation of Master Plan, feasibility study, detailed design, selection of contractors, construction

management and other wide fields. For this project, it is essential to invite Japanese consultants in view of

necessary introduction of Japanese technology on managing construction under tight schedule, soil

improvement and others.

6.2 Economical Advantage

6.2.1 Price competitiveness of Japanese firms

Japanese manufacturers and construction firms have been highly appreciated by Asian government officials

in technical, delivery and punctual viewpoints but it allows impression of high costs. The increase of cost

has been attributed to the direct and indirect costs on the labor, domestic transportation and land etc.

Japanese firms have continued to various efforts on reduction of the costs by proceeding overseas transfer

of the production and localization at the development countries.

6.2.1 Utilization of Japanese ODA PPP project

Japanese MOFA fully recognized importance and contribution to the economical progress of the

development countries by Japanese private investments and have encouraged their support on the

government finance including ODA and activities of Japanese firms in cooperation with the related

government officials and assistance firms in collaboration. By utilizing their official and political supports,

it is expected that Japanese firms have financial advantage and develop their activities which will

contributing to the counterpart countries.

With regards to this project of the port development plan at North Kalibaru phase 1, it is recognized that

the scheme of Japanese PPP project with moderate loan program supported by Japanese ODA loan should

be discussed and accepted instead of the entire private investment plan proposed by Pelindo II.

6.2.2 Optimizing of Japanese ODA terms, STEP

STEP project was introduced in 2002 to optimize Japanese competent technologies and know-how for

overseas transfer to the development countries. The regulation and policy have offered the special Japanese

loan terms of the lower interest at 0.2% for a loan period of 40 years in case of Indonesia, subject to

procurement of Japanese products/materials for more than 30% of the concession price. This financial

terms should be effective in the project favorably and supported financially with advantage when

implementation.

7. Risks on Execution of the Project

7.1 Necessity for expediting the study/formalities on Japanese ODA scheme

The study is proceeded in case of adoption of Japanese ODA loan for the public portion. It is understood

that Japanese government have proceed review of the ODA application process in compliance with the

request of expediting the process by the counterpart countries and in viewpoints of strategic effectiveness

on the support. Japanese government declared the policy in June, 2008 in respect of „‟Expediting Japanese

ODA loan process‟‟ that the approval lead time for procurement of the consultants and construction work

should be shortened to within 2 years as target. It is recognized that this policy has been reviewed every

year with additional amendments for improvement. It is recommendable that this policy should be

optimized for implementation of the subject projects.

With regards to this project, it is considered that E/S (Engineering Service) loan may be applicable and

needs to accept the engineering service including collection of the site data, detailed design and preparation

of the tender documents etc for the design work in advance to the construction work. This loan scheme is

subject to completion of the feasibility study with official acceptance of the practicability/justification of

the project, and may be applicable in this project case as the practicability/justification was already

confirmed by Pre-F/S of JICA study although F/S is not officially finalized. In ordinary Yen loan, it is in

principle that the environment assessment report should be disclosed by 120 days prior to conclusion of the

concession contract but E/S loan allows to go on the environment assessment in parallel with design work

and preparation of the tender documents, and is one of the favorable option for consideration.

In order to expedite the construction aiming to early commencement of the terminal operation, it is

required that the various method to reduce the implementation time should be considered and discussed in

any occasion.

8. Evaluation of Environmental and Social Impact

8.1 Existing Matters of Environment General The target area of this study is around the port of Tanjung Priok, because the subject of this survey focuses

on the phase I of the port development plan of Tanjung Priok Port. In the Tanjung Priok port, the

employment of around 30,000 people has been produced and in the Kalibaru fishing port, which is at the

east side of Tanjun Priok Port, approximately 2,000 fishermen have lived. In sea area of the Tanjung Priok

port, the water pollution is observed with the problem. Therefore in this development plan for the new

container terminal neighboring inhabitants and environment should be considered.

8.2 Positive Environmental and Social Impact of the Project

With implementation of the project such as construction of new container terminal and access roads,

removal of the existing breakwater, the environmental improvement around project site can be considered

as follows.

By removing the breakwater at east side of the port, the water flows inside the port are becoming

faster and the sea water are exchanged. The improvement for water quality is expected. (Natural

Environment)

By access of the larger vessels accompanied with development of container terminals and increases of

depth in the routes and at anchorage, CO2 emissions per container 1TEU is expected to be reduced.

(Natural Environment)

It is expected to hire local residents for the workforce required in the port. So, it is expected to

improve the life level of residents and generate employment opportunities for local residents. (Social

Environment)

With construction of the new terminal and increase of the cargo volume, it is expected to increase

industrial and regional development at the hinterland. (Social Environment)

8.3 Negative Environmental and Social Impact of the Project

Table 8-1 List of Environmental and social impacts

Category Environmental

Item Confirmation of Environmental Considerations

2

Pollution

Control

(1) Air Quality

The examinations on compliance with the environmental standards

should be carried out in EIA, because it would be affected by increase of

passing vehicles with this project.

(2) Water Quality

Water quality simulations for alternative plans should be carried out in

EIA exam, because it would be affected by variation of layout of port

with this project.

(3) Wastes The disposal plan of waste materials should be prepared and it should be

strictly supervised during the implementation of this project.

(4) Noise and

Vibration

The examinations on compliance with the environmental standards

should be carried out in EIA, because it would be affected by increased of

passing vehicles with this project.

4 Social

Environ

ment

(1) Resettlement

With construction of access roads, the resettlement of 50 houses may be

required. In EIA exam, the route to minimize number of houses to be

resettled should be considered from alternative routes.

(2) Living and

Livelihood

Depend on layout of the terminal and the route of access road, fishermen

of Kalibaru fishing port are limited to maritime traffic.

8.4 Alternative Plans As a comparison of layout of landfill and access roads, Pelindo II plan and Master Plan are compared at the

view point of the environmental impact.

Table 8-2 Alternative plans about environmental impacts

PELINDO II Plan Master Plan

A route B route C route

Layouts

A route

B route

C route

Fishery

Fishery to use aquacultures at reclamation areas should be

moved. Fishermen of Kalibaru fishing port are limited to

maritime traffic. The piers in fishing port with C route

would affect to traffic convenience for fisherman.

No impacts on fishery

Water

Quality

By removing the breakwater and widening water area,

partially improvement for water quality is expected.

Polluted materials may transfer to Kalibaru fishing port.

Due to securing water flow at east

side of port, big improvement for

water quality would be expected.

Residents

Number of

houses to be

resettled with

construction of

access road :

about 50 houses

Number of

houses to be

resettled with

construction of

access road :

about 50 houses

Number of

houses to be

resettled with

construction of

access road :

about 25 houses

Number of houses to be resettled with

construction of access road : about 50

houses

Evaluate ○ △ × ◎

8.5 Actions to be made by the Government for the Project Pelindo is promoting the private investment plan which is based on Master Plan of the Tanjung Priok port

in 2007. The three provinces (DKI Jakarta, Bekasi and Tangeran) have conducted SEA survey about

coastal area use of the Java Sea, and until December 2010 (or January 2011) will submit SEA to Ministry

of the Environment (or their organizations) and plan to get approval from MOE. After approval of SEA,

Pelindo would submit EIA (under preparation) to MOE and in three months the development permit would

be receive from MOE.