hcc jakarta · rapid scan of policies, plans and on-going programs i table of contents 1....

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Rapid Scan of

Policies, Plans and On-going Programs

HCC Jakarta

5 April 2017

Author

Rik Frenkel (Overall coordination and supervision)

Contributors

Frank van Paassen (Infrastructure and finance)

Slamet Mulyadi (Spatial planning)

Shinta Dewi (Social economic and institutional)

Support

Supartinah (GIS analyses)

Rapid Scan of Policies, Plans and On-going Programs

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Table of Contents

1. Introduction to Rapid Scan Document 1

1.1 Background ............................................................................................................................................ 1

1.2 Purpose of the Rapid Scan .................................................................................................................... 1

1.3 Objective of the Rapid Scan ................................................................................................................... 2

1.4 List of Relevant Existing Strategies and Plans ....................................................................................... 2

2. General Development Plans 3

2.1 Description of spatial plan of Jabodetabekpunjur (Perpres 54/2008) .................................................... 3

2.2 Jakarta Spatial Plan (RTRW Jakarta 2030) ........................................................................................... 5

2.3 Jakarta Detailed Spatial Plans (RDTR Jakarta 2014) ............................................................................ 6

2.4 Jakarta Medium Term Development Plan (RPJM Jakarta 2013-2017) ................................................. 7

3. Poverty Reduction and Slum Alleviation 9

3.1 Master Plan for the Acceleration and Expansion of Indonesia's Poverty Reduction (MP3KI) ............... 9

3.2 KOTAKU – Kota Tanpa Kumuh / Cities without Slum Programs ......................................................... 12

3.2.1 Settlement Area Housing Development Plan (RP3KP) DKI Jakarta 13

3.2.2 Rencana Penataan Lingkungan Permukiman (RPLP per village) 14

4. Infrastructure Development Plans 15

4.1 NCICD Roadmap.................................................................................................................................. 15

4.2 JICA Sewerage and Sanitation Master Plan ........................................................................................ 19

4.3 Water Supply ........................................................................................................................................ 21

4.4 Solid Waste Management .................................................................................................................... 23

4.5 Roads and Transportation .................................................................................................................... 24

4.6 Harbours ............................................................................................................................................... 25

5. Community Participation 27

5.1 Awareness Building / Community Empowerment ................................................................................ 27

5.2 Slum Redevelopment ........................................................................................................................... 27

5.3 Livelihood Improvement ....................................................................................................................... 28

5.4 Micro Infrastructure Improvement ........................................................................................................ 29

5.5 Urban Management .............................................................................................................................. 29

6. Private Sector Participation 30

6.1 Corporate Social Responsibility (CSR) in Indonesia ............................................................................ 30

6.1.1 CSR initiatives in Urban Revitalization 32

6.1.2 CSR initiatives in livelihood improvement 32

6.1.3 CSR initiatives in infrastructure development 32

6.2 Public–Private Partnerships (PPP)....................................................................................................... 34

7. Conclusions on Gaps and Overlaps of Policies, Plans and On-going Programs 35


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1. Introduction to Rapid Scan Document

1.1 Background

The Human Cities Coalition (HCC) aims at inclusive urban development with a human face supported by private sector-driven initiatives to improve living conditions and livelihood in urban areas. The overarching approach is based on Market Systems development, which complements Government endeavors, and which is based on multi-stakeholder participation that engages the Private Sector, the Urban Community and the Government as interdependent actors, and mutual beneficiaries. The purpose is not only the effective impact, but also the sustainable social, economic and environmental benefits. Such a multi-stakeholder approach shall be based on common perceptions among the stakeholders of existing conditions, shared priorities, joint strategies, synchronized actions and combined resources. Diagnosis of existing opportunities and constraints, and strategic interventions require practical mechanisms for collaborative action, investment and implementation by the different stakeholders. This can have different forms, including corporate social responsibility (CSR) and public-private partnership arrangements (PPP), but HCC believes that the private sector shall take a bigger role in planning, funding and implementation. The Human Cities Coalition starts its work in Jakarta and Manila, where millions of people only have a few square meters of living space without access to potable water, proper sanitation or power. For both cities an inclusive business case will be prepared, ready for implementation next year. The business case preparation for Jakarta is divided in three phases:

1. Scoping phase, in which ‘Rapid Scans’ will be prepared of existing conditions and existing policies, plans and on-going programs related to slum and livelihood improvement in Jakarta, to select a theme, location and target group for the business case,

2. Planning Framework Phase, in which detailed assessments will be made related to the theme, location and target group of community needs, political economic environment, innovation possibilities and financing opportunities. During this phase a planning framework will be prepared including a long-list of possible interventions.

3. Business Case Development Phase, in which first several optional inclusive business cases will be prepared, from which one will be chosen, and prepared for implementation.

The present ‘Rapid Scan of Policies, Plans and On-going Programs’ concerns the third output of phase 1: ‘Scoping’. It provides an overview of national policies, and plans and on-going programs in DKI Jakarta. Special attention is given to private sector involvement during implementation of these plans.

1.2 Purpose of the Rapid Scan

An overview of urban settlement conditions is provided in the ‘Outline Inventory of Slum Conditions and Poverty DKI Jakarta’ report. Many activities have already been implemented by all stakeholders to improve the conditions in the slum areas. These activities have however not been able to make the slum areas disappear. In this rapid scan a quick assessment is made of all the existing policies, plans and on-going projects, to see where they complement each other, but also where there are overlaps and gaps.


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1.3 Objective of the Rapid Scan

The main objective of the Rapid scan is to identify gaps in the current policies, plans and on-going projects of all stakeholders, where the private sector through an inclusive business approach can help to fill the gaps..

1.4 List of Relevant Existing Strategies and Plans

1 General Development Plans

Jabodetabekpunjur Spatial plan (Perpres 54/2008)

Jakarta Spatial Plan (RTRW Jakarta 2030)

Jakarta Detailed Spatial Plans (RDTR Jakarta 2014)

Jakarta Medium Term Development Plan (RPJMD Jakarta 2013-2017)

2. Poverty Reduction and Slum Alleviation

Master Plan for the Acceleration and Expansion of Indonesia's Poverty Reduction (MP3KI)

KOTAKU – Kota Tanpa Kumuh / Cities without Slum Programs

Settlement Area Housing Development Plan (RP3KP) DKI Jakarta

Rencana Penataan Lingkungan Permukiman (RPLP per village)

3. Infrastructure Development Plans

NCICD Roadmap

JICA Sewerage and Sanitation Master Plan

Water Supply

Solid Waste Management

Roads and Transportation

Harbors

4. Community Participation

5. Private Sector Participation

Corporate Social Responsibility (CSR) in Indonesia

Public–Private Partnerships (PPP)


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2. General Development Plans

2.1 Description of Spatial Plan of Jabodetabekpunjur (Perpres 54/2008)

Presidential Regulation No. 54 of 2008 (Perpres 54/2008) regulates the national spatial plan for the region of Jakarta, Bogor, Depok, Tangerang, Bekasi, Puncak, Cianjur (Jabodetabekpunjur). This area required a national strategy, which consist of spatial planning, space utilization and control of space utilization in an integrated manner. To realize the objectives of spatial planning for Jabodetabekpunjur, a structure plan (rencana struktur) and a spatial pattern plan (pola ruang) have been prepared. A review of this spatial plan started in 2013 and is still going on. Information below summarizes the content of the draft reviewed spatial plan for Jabodetabekpunjur. Figure 2.1. Cities and Districts of Jabodetabekpunjur

Source: Review Jabodetabekpunjur 2013

Economic Conditions The city of Jakarta is very dominant in the center-periphery relationship of Jabodetabekpunjur’s economy, in terms of concentration of business-trading-office activities, local revenue and income levels were high compared to suburbs. Labor having difficulty to find affordable homes will automatically search outside Jakarta, causing irregular rapid growth of Depok, Tangerang and Bekasi.


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. Transportation Systems Figure 2.2. Pola ruang of northern part of Jabodetabekpunjur

Vice President Boediono introduced 17 strategic actions (in 2010) to address congestion in Jakarta, including Jakarta Transportation Authority to form:

Sector Strategic Action

Transportation Infrastructure

1. Electronic Road Pricing scheme to be fast-tracked 2. Review parking bylaw especially on-street parking 3. Road maintenance fund based in multiyear contract 4. Six new Inner-city toll roads to be built 5. Government to issue policies aimed at halting growth of vehicle use

Spatial Dev. 6. Electronic Road Pricing scheme to be fast-tracked

Public Transportation Improvement

7. Crack down on vehicle using Trans Jakarta Busway lanes 8. Additional 2 Busway corridors to open in 2010 and 2 in 2011 9. More gas station to offer subsidized fuel for Trans Jakarta buses 10. Reduce number of road-clogging mikrolet vans and urge the use of bigger

buses with more capacity 11. Police to crack down illegal buses 12. Renewed pledge to start building MRT stage one in 2011, restarting mono-

rail, and Manggarai-Cengkareng railway development to be fast tracked 13. Rail line to Cikarang to be made double track 14. Faster development of inner-city rail project to be integrated with Jakarta’s

transportation system 15. Trains rerouted and more services to move 3 million commuters daily

Regulation and Governance

16. Establishment of Greater Jakarta transportation authority 17. Revise Greater Jakarta integrated public transportation system master plan


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3 Infrastructure System

Energy Network

Water

Waste Management 4 Environmental Conditions

River Region

Groundwater

Situ

Swamp

Land Transfer Function

Coastal Reclamation

RTH

Biosphere Reserves Cibodas 5 Economic

Economic Structure

Employment

Distribution Industry

Investment

Overview of the Presidential Decree 54/2008 Payload 6 Socio-Cultural

Existing Conditions

Overview of the Presidential Decree 54/2008 Payload 7 Disaster

Flood

ROB

Erosion

Climate Change Vulnerability

Fire Settlement Region 8 Implementation of Spatial

2.2 Jakarta Spatial Plan (RTRW Jakarta 2030)

Spatial plan of Jakarta (RTRW DKI Jakarta or RTRW) is approved by local parliament based on Perda 1-2012. The RTRW earmarks the coastal zone (Pantura) as a strategic area. The new reclaimed area must be constructed as artificial islands. The sea defence along the northern edge of the new reclaimed land will be integrated into the existing road network. Figure 2.3. RTRW spatial pattern plan of northern part of Jakarta


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The Development Vision of DKI Jakarta is to realize a Jakarta as the Capital of the Republic of Indonesia that is safe, comfortable, productive, sustainable, parallel to major cities of the world, and is inhabited by a prosperous society. To realize this vision, the development MISSIONs are as follows:

a. Build humane urban infrastructure and facilities; b. Optimize the productivity of the city to become a world-scale services city; c. Develop urban culture; d. Mainstream disaster mitigation-based development; e. Create prosperous and dynamic urban life; f. Harmonize urban living environment.

2.3 Jakarta Detailed Spatial Plans (RDTR Jakarta 2014)

Detailed Spatial Plans (RDTR) and Zoning Plans (PZ) are reference documents for use and control of space. RDTR documents incorporated Zoning Maps are an elaboration of the Jakarta Spatial Plan 2011-2030 with a map scale of 1: 5,000 produced per Sub-district (Kecamatan). The RDTR and Zoning Regulation regulates among others:

Spatial Pattern of Regional Development and Environmental Properties

Detailed Spatial Plan per Sub-district (Kecamatan)

Zoning Regulations

Licensing and Recommendations

Incentives and Disincentives

Space Utilization Control

Rights, Obligations and Roles of the Community;

Guidance and Supervision Figure 2.4. Example RDTR of Kecamatan Penjaringan


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2.4 Jakarta Medium Term Development Plan (RPJM Jakarta 2013-2017)

Vision: The Government of DKI Jakarta Province, sets the vision in the Jakarta Provincial Medium-term Development Plan 2013-2017, as follows:

"New Jakarta, will be a modern neatly structured city, be a decent and humane place to live, have

a cultured society with a public- service oriented government".

Mission: 1. Realize Jakarta as a modern neatly structured city, consistent with the Spatial Plan; 2. Make Jakarta a city free from chronic problems such as traffic jams, floods, slums, waste and

others; 3. Ensure the availability of residential and public spaces feasible and affordable to the citizens; 4. Build a tolerant culture among the urban society that is, which has the awareness to maintain

the city; 5. Build a clean and transparent and public service oriented government.

Mission are carried to achieve the vision grouped into four (4) pillars of development, namely the Economic, Social, Environmental and Government Pilars

Expected Impacts:

1. The city is able to increase its global competitiveness position; 2. The city develops into a center of trade and services; 3. The GDP per capita of the city grows rapidly and evenly 4. Increased economic growth and controlled inflation 5. The city develops in balance with the need of Open Green Space (RTH) and Open Blue Space

(RTB) with the needs of economic space; 6. The city’s Human Development Index (HDI) of Jakarta increases from 77.97 in 2012 to 79.60 in

2017; 7. The city becomes increasingly attractive as a residence by increased supply and demand for

flats and by slum area improvement; 8. Urban attention to the handling of social issues, especially street children and neglected elderly; 9. The tolerance level of citizens increases, indicated by reduced numbers of social conflicts,

reduced sensitive public areas and increasing democracy index. PRIORITY PROGRAM 1. Transportation System Development

a. Road-based public transport development program (Busway and regular bus) b. Rail-based mass transport development program (MRT, LRT) c. Roads and bridges improvement / development program

2. Anticipation of Flood, Tidal Floods and Inundations

a. Flood control infrastructure development program (dams, dikes, bio-pores, multi-function tunnel)

b. Drainage system development program (polder system, normalization and dredging of rives)

3. Improved Environmental Quality of Housing and Urban Settlements a. Public housing provision program (low cost apartments integrated with public facilities) b. Housing development policy program (encouraging vertical housing) c. Kampung quality improvement and rehabilitation program (kampong and slum upgrade)

4. Environmental Protection and Management

a. Public works facilities and infrastructure improvement program b. Waste management performance improvement program (privatization, waste management

along coasts, rivers and drainage channels) c. Program to increase public participation in waste management


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5. Open Green Space Quality and Quantity Improvement a. Open green space and cemetery expansion program b. Community participation empowerment and mobilization program for parks and cemeteries

6. Economic Inequality Reduction and Employment Expansion

a. Facilities and infrastructure improvement program for cooperatives and smes

7. Multi-Culture Development a. Culture protection, development and utilization program b. Cultural information development and promotion program c. Culture facilities and infrastructure improvement program (Betawi culture, old town

revitalization) d. Regional government building maintenance and development program (construction of Great

Jakarta Mosque)

8. Public Service Improvement a. Local taxes information systems and technology program (taxes online) b. Kelurahan governance capacity building program (‘excellent service’) c. Kecamatan government capacity building program d. Investment promotion program (on-line licensing services) e. City / regency management structuring and management program (one stop integrated

services)

9. Education Quality Improvement a. Compulsory twelve years education program (+ Jakarta smart card) b. Education infrastructure improvement program c. Education quality improvement program

10. Public Health Quality Improvement

a. Health Insurance Program (Jakarta Health Card) b. Health Facilities and Infrastructure Improvement Program (in health centers (Puskesmas),

hospitals (RSUD), and in the traditional markets / low cost housing apartments. c. Health Services Development Program (Active Readiness per Kelurahan) d. Disease Control and Environmental Health Program (Implementation of Community-Led

Total Sanitation per Kelurahan)


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3. Poverty Reduction and Slum Alleviation

3.1 Master Plan for the Acceleration and Expansion of Indonesia's Poverty

Reduction (MP3KI)

The MP3KI plan is structured as a social support plan for MP3EI (Master Plan for the Acceleration and Expansion of Indonesian Economic Development). This plan was never published as an official document, but has evolved as a set of presentation slides.

Poverty Level by Province between March 2012 and September 2012

Macro-economic Policy


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Framework Design MP3KI

Transformation Cluster I


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Transformation Cluster II, III, IV

Position of MP3KI and MP3EI integrated in the planning documents

Map with Number of Poor People (2010) and Main MP3EI Infrastructure Development


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3.2 KOTAKU – Kota Tanpa Kumuh / Cities without Slum Programs

Program KOTAKU is a strategic effort of the Directorate General of Human Settlements, Ministry of Public Works to accelerate slum rehabilitation to support the "100-0-100 Movement", which stands for 100% access to drinking water, 0% slums, and 100% access to sanitation. The program deals with slums by building a collaborative platform to increase the participation of local governments and communities. KOTAKU implementation starts with baseline data collection by a Community Based Organization (BKM / LKM), of 7 slum indicators per village/ward. These indicators are: 1. Housing conditions 2. Access to road network 3. Local drainage 4. Access to drinking water. 5. Access to sanitation 6. Solid waste management 7. Fire prevention After that, a plan is produced integrating community plans with local government plans. This plan determines the priority activities to reduce existing slums and prevent new slums, which will either be implemented by the public or by other parties with expertise in infrastructure development in the region and city entities. The KOTAKU funding sources originate from foreign donor agencies, including the World Bank (World Bank), Islamic Development Bank, and the Asian Infrastructure Investment Bank, complemented by local government budgets and community participation to achieve the slum quality improvement targets.

Figure 3.1. Kotamu Slum Prevention and Upgrading


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Figure 3.2. Kotaku Implementation Process at City and Community Level

3.2.1 Settlement Area Housing Development Plan (RP3KP) DKI Jakarta

Settlement Area Housing Development Plans (RP3KP) are under development at Provincial and City level for DKI Jakarta. These plans will function as RP2KPKP plans in the Kotaku setup. Goals

Optimal utilization of settlement areas to fulfil the need for decent, safe and sustainable housing;

Provision of quality utilities infrastructure, facilities and services, in sufficient and sustainable quantity, and accessible to all citizens of Jakarta.

Objectives

The gradual realization of the norm of one decent house for each family;

Settlements served by environmental facilities and infrastructure in accordance with the ‘Minimum Standard Services (SPM)’ for housing and residential areas;

The achievement of ‘cities without slums’ by 2019 in accordance with the Government's target (100% sanitation - 0% slums - 100% water supply);

The increasing role of all stakeholders, especially the private sector in the development and provision of housing and settlement to reduce the backlog

The availability of good quality facilities - infrastructure and utilities for housing and residential areas


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Figure 3.3. Example map of available expansion area and vertical housing distribution of North Jakarta District

3.2.2 Settlement Environment Restructuring Plan (RPLP per Kelurahan)

Goal and Objectives

The goal of the community-based ‘Settlement Environment Restructuring Plan’ (RPLP) is to realize a social order living in harmony with the environment through healthy, productive, and sustainable identity. The objectives of Community-based planning are to:

a. Awareness of the community to live in a well arranged settlement in harmony with the wider environment and ready to response to disasters.

b. A healthy, clean and civilized community. c. Community abled to conduct development planning and management of their housing

environment in a creative and innovative manner. d. Realising institutional effective and efficient administrative procedures in implementing good

governance at village level.


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4. Infrastructure Development Plans

4.1 NCICD Roadmap

The NCICD Roadmap summarizes flood protection and prevention measures, as well as opportunities for revitalization of the coastal area. This was achieved by matching, linking and synchronizing existing studies, strategies and master plans into a common planning framework comprises 9 main components: Effective flood protection measures (sea and river dikes, retention ponds, pumping systems), sustainable flood prevention measures (slowdown land subsidence by halting deep groundwater abstraction, bulk water supply, sewerage and sanitation), and revitalization based on revenue-generating private investment opportunities (land reclamation and development, redevelopment and rehabilitation of coastal area, land and sea transport). A comprehensive inventory of existing conditions served to build a common perception among the stakeholders of the interrelated problems. Based on shared visions and priorities, joint strategies were formulated as basis for synchronized planning, multi-source funding of investment, and consistent multi-year implementation. Specifically, the Roadmap shall serve as basis for updating the previous PTPIN master plan, integrating the 17 land reclamation islands in Jakarta Bay, and accelerating the first stage of implementation of coastal sea and river dikes.

Triangle of stakeholders (government, private sector,

community)

Integrated plan combining flood protection solutions, flood

prevention measures and private investment opportunities.

Process Cycle of six interrelated steps (Strategy, Master Plan,

Investment Program, Implementation, O&M, M&E)

The Regional Development Context includes the following aspects:

Urban Agglomeration. Coastal development of Jakarta shall take into account the overall regional context of Jabodetabekpunjur that overlaps with the Provinces of DKI Jakarta, West Java and Banten.

On-land and off-shore. Spatial development on land shall take into account the spatial functions of Jakarta Bay, and vice versa, especially for offshore flood protection measures and land reclamation.

Upstream-midstream-downstream. Coastal development shall consider the impacts from upstream, midstream and downstream. Water from 13 upstream rivers is intercepted by 5 midstream flood canals, which bypass the downstream coastal area, and directly discharge into Jakarta Bay. The coastal area is subdivided into 8 polder systems surrounded by ring dikes.

Govern-ment

Private Sector

Academics Media Law

Urban Commu-

nity

Sea and River Dikes

Retention Ponds

Pumping Stations

Ground-water

Water Supply

Sewerage and

Sanitation

Land Recla-mation

Redevelop-ment

Land and Sea

Transport

Strategy Formulation

Master Planning

Investment Program-

ming

Implemen-tation

Operation and Maintenance

Monitoring and

Evaluation


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Integrated Coastal Development Strategy 1. The seaside of each ring dike shall provide protection against flooding from the sea. The heights of

existing ring dikes shall be increased to cope with the current rates of land subsidence until at least 2040. On average this means, that on the seaside the height of the ring dikes shall be +6’00 m above sea level, whereas the riverside dikes along the flood canals shall be built at a level of +4’00 m above sea level.

2. The current on-shore retention capacity of the coastal area is 276 ha, or less than 0,5% of the total polder area, whereas the optimum retention capacity would need to be 4-5%. Since there is not enough open space in the densely built-up coastal area, additional offshore retention shall need to be created in the open water between the current coastline and the land reclamation islands by extending the existing polder systems towards the sea. This will add 2’077 ha offshore retention, increasing the retention/polder ratio to 4,2%.

3. Small retention capacity implies dependence on high pumping capacity. Currently the 8 polder

systems are actually composed of many sub-polders, each served by their own pumps. The installed pumping capacity is insufficient, and several pumps are even not in operational condition. Once the additional offshore retention has been created, the corresponding pumping capacity of the extended polders shall be 759 m3/s for the coastal area including the reclamation islands.

4. To slowdown land subsidence in the coastal areas, deep groundwater over-abstraction shall be

halted based on ‘groundwater amnesty’ arrangements in locations with land subsidence due to groundwater use by industrial complexes, commercial districts and residential apartment blocks locations. Groundwater levels and land subsidence shall be monitored by the Ministry of Energy and Mineral Resources (ESDM), and groundwater use shall be monitored by DKI Jakarta.

5. To substitute deep groundwater use by other bulk water sources, the piped water distribution

networks shall be expanded, and water within the existing networks shall be reallocated to locations with severe land subsidence. Besides, inter-basin bulk water transfer from the Jatiluhur reservoir in the West Java and the Karian reservoir in Banten shall be accelerated, and rivers, flood canals and retention ponds shall be tapped as bulk water source.

6. For this purpose, the surface water quality of the rivers that discharge into the offshore retention

ponds shall need to be considerably improved by accelerating construction of off-site sewerage systems in each polder, complemented by on-site communal sanitation systems. Commercial and industrial areas shall build and operate their own wastewater treatment plants.

7. Integration of the 17 land reclamation islands into the 8 extended polder systems shall provide

adequate flood protection, and require up to 15% less construction material, which has both environmental and financial advantages. The integration of the reclamation islands into the extended polders will serve as catalyst for the revitalization of the coastal area of Jakarta. The funding of flood protection measures (dikes, retention, pumps) and flood prevention measures (groundwater management, bulk water supply, sewerage and sanitation) shall be based on revenues from land reclamation by private developers.

8. Flood protection provided by extended polders, access to safe piped water, and clean rivers and

retention ponds shall serve as opportunities for rehabilitation of existing coastal slum areas. Resettlement to a safer location and fair compensation shall be offered to people who live in locations that cannot be protected against flooding, or that are needed for flood protection measures. Fisherman communities who depend for their livelihood on the sea shall be offered resettlement near the fishing ports. Fishing ports shall keep open access to the sea. Cooling water systems of the 3 coastal power plants shall remain operational. Cables and pipes on the sea floor shall not be disturbed. Existing 195 ha protected mangrove forests shall be extended from 195 ha to 375 ha by planting new mangroves in the estuaries of the extended flood canals between the reclamation islands.


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9. The missing east-west link in the northern part of the outer-ring road shall be built along the northern edge of the land reclamation islands, possibly combined with railway tracks and MRT. The toll road shall serve access to the international seaport of Tanjung Priok and the international airport of Sukarno Hatta, and connectivity with their industrial hinterland, including dry-ports proposed in Tangerang and Bekasi. The deep seaport expansion of Tanjung Priok benefits from the ongoing reclamation of island N and from the east-west toll road along the new northern coastline. The modernization of the international seaport shall serve as locomotive of national economic growth.

Implementation Plan 1. Between 2017 and 2019 emergency measures (D) shall be implemented at critical locations along

the coast that are exposed to imminent flooding, including repairs of sea dikes, rehabilitation of drainage system, and additional pumping capacity. Pilot projects shall be conducted to slowdown land subsidence, through phasing out of deep groundwater abstraction and substitution by other bulk water sources, and improvement of river water quality through implementation of an off-site sewerage system combined with on-site communal sanitation systems. The emergency measures shall provide safety against flooding until 2025.

2. Between 2019 and 2025 the 8 existing polder systems shall be extended (M) outside the current

coastline to integrate the 17 reclamation islands within the safety of the ring dikes, and to create additional offshore retention in the open water between the coastline and the reclamation islands. This solution replaces the initial on-shore coastal dike alignment (Phase A) that was delayed, and that did not include additional retention. Based on the assumption that land subsidence will slow down by halting deep groundwater abstraction, the extended polders will provide long-term flood protection, or at least until 2040 if land subsidence would continue at the current rates.

3. If land subsidence would not slowdown, a decision would need to be made by 2028 to optimize (O)

the flood protection provided by the extended polder system, among others by increasing upstream retention to reduce peak flows, by topping up ring dikes around the extended polders at locations affected by land subsidence, and by reconsidering the option of a large offshore sea dike that would close off Jakarta Bay. Depending on bathymetrical, geological, geophysical and oceanographic studies, implementation of this option would be scheduled between 2030 and 2040.

4. The financial feasibility of implementation shall be based on cross-subsidies between, on the one

hand, public investment in effective flood protection and prevention measures, and on the other hand, revenue-generating private investment opportunities in the coastal area that benefit from these measures, including reclamation and development of the 17 islands in Jakarta Bay, redevelopment and rehabilitation of the coastal area, and improved land and sea transportation in the coastal area in a regional context.

Implementation Plan Extended Polder System


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Emergency Measures (D)

Medium Term Extended Polder Systems (M)

M


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4.2 JICA Sewerage and Sanitation Master Plan

Current Situation of Sewerage and Sanitation in DKI Jakarta

Figure 4-1 shows the current situation of treating & discharging wastewater in DKI Jakarta.

Figure 4-1 Current Situation for Wastewater Discharge in DKI Jakarta

Population for Wastewater Treatment: 13,380,000 (including floating population)

Actual Population: 10,035,000

Vision

Vision for the New M/P is set as follows:

“Create sustainable water cycling society in DKI Jakarta”

Improve the current river water quality up to the level that river water can be used as water sources for water supply system in DKI Jakarta by the year 2050.

Period

The New M/P proposes development plans for improvement of wastewater management in DKI Jakarta

for the following development years and prioritized projects as the short-term development plan.

(Year) 2012 2020 2030 2050

Short-term

Development Plan

Medium-term

Development Plan

Long-term

Development Plan

Prioritized Projects

are proposed.

Facility plans are

proposed. Facility plans are proposed.

Sewerage ITP

Septic Tank Slum

Population for Wastewater Treatment

(peoples*103)

1300, 1 0 %

8567, 6 4 %

Water Purification Plant

168, 1% 3345, 25%

Septic Tank Pop. 8,567,000

(64%)

Slum

Pop. 1,300,000

(10%)

M S T

C S T

On-site

ITP

Pop. 3,345,000 (25%)

* CST : Conventional Septic Tank * MST : Modified Septic Tank * ITP : Individual Treatment Plant * ATP : Advanced Treatment Plant

Sludge from Domestic Insufficient

ITP with ATP

I T P

Off-site

Setiabud i

WWTP

???

??? Sewerage

Pop. 168,000

(1.3%)

P u m p i ng S t a t i o n

Sludge

Sludge Treatment Plant

De-sludging by DPU

Ancol disposal site

Jawa sea

Compost

Landfill

Figure S2-1 Current Situation for Wastewater Discharge in DKI Jakarta


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Improvement Targets

In order to fulfill the vision mentioned above, the following targets are proposed in the New M/P:

Table 2-1 Improvement Targets for Wastewater Management in DKI Jakarta

Item Unit Short-term Plan

Medium- term Plan

Long-term Plan Y2012 Y2014 Y2020 Y2030 Y2050

Design Population 1,000PE 12,665 12,665 12,665 12,665 12,665 Administration Population 1,000PE 10,035 10,361 11,284 12,665 12,665

Off-s

ite

Facility Coverage Ratio % 2 7 20 40 80

Service Coverage Ratio % 2 4 15 35 80

Served Population 1,000PE 168 387 1,685 4,478 10,166

On-s

ite

On-site Treatment Ratio % 85 96 85 65 20

Served Population for On-site 1,000PE 8,567 9,974 9,599 8,188 2,500

Regular Desludging Coverage ratio

% 0 20 50 75 100

Change CST to MST (MST/(CST+MST))

% 2 16 25 50 100

Slu

m

are

as

Open Defecation Ratio % 13 0 0 0 0

Open Defecation Population 1,000PE 1,300 0 0 0 0

River Water Quality (BOD) mg/L 61 54 33 24 10

Sewerage Zones and Prioritized Project Areas for Each Target

Development Year Sewerage zones for each target development year have been determined as shown below:

Priority Zone No.

Target Development Year

1 1

Short-Term Plan: Year 2012 to 2020 2 6

3 to 6 4, 5, 8 & 10

Mid-Term Plan: Year 2021 to 2030

7 to 14 2, 3, 7, 9, 11, 12, 13 & 14 Long-Term Plan: Year 2031 to 2050


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4.3 Water Supply

Based on data from PT. PAM Jaya, the need for clean water in Jakarta today is 28 m³/s, while the Provincial Water Supply Company (PD PAM Jaya) can only serve 18 m³/s. The supply of bulk water for Jakarta mainly comes from outside Jakarta, from Jatiluhur amounted to 14.6 m³/s and Cisadane of 2.8 m³/s. While the bulk water supply is owned by Jakarta came from Krukut (IPA Cilandak) of 0.4 m3 / sec and from Cengkareng Drain of 0225 m³/s. The total area that has been underserved drinking water in Jakarta is only about 55% of all the Jakarta area. Jakarta Jakarta Western and Northern byet been fully served by drinking water with a total of 800 thousand connections only. In addition, the level of Non-Revenue Water (NRW), i.e. water cannot be income (eg lost due to leakage), were as high as ± 42.28%. Need for clean water in Jakarta in 2030 is estimated at 41.6 liters / sec. For the residents who will live in the islands reclaimed need to examine the fulfillment of clean water which should be considered in view of the availability of bulk water sources to meet the needs of water in Jakarta is quite high and new taps can meet about 60%. The need for clean water in 17 reclaimed islands is estimated at 3.2 m³/s. Meeting the needs of clean water in Jakarta by 2030 will still rely on bulk water source from outside Jakarta, from Jatiluhur, Karian Dam, Cisadane and IPA Pondok Benda. While the source of bulk water from Jakarta itself will be obtained from the West Flood Canal, the East Flood Canal, Cengkareng Drain, Krukut and Pesanggrahan.

Figure 4-1: Existing Bulk Water Sources for Jakarta

Source : PAM Jaya

As for short-term development plan (2017-2019) in order to meet clean water in Jakarta is:

Construction of Urban Forest Science 500 L / dt & Supply Tirta Benteng 300-500 L / dt for the northern area of the west side of Jakarta

Construction of Buaran IPA III 3000 L/ Dt for the area north east side of Jakarta

IPA development Pesanggrahan 600-750 L / dt for northern areas Plan fulfillment clean water to Jakarta needs the support of the Government, both central and local government. Support in question include:

Support the availability of bulk water

Support investment funding

Support for easy permitting


22

Support easy adjustment of water tariff, given the tariff adjustment has not been done since the beginning of 2007.

Figure 4-2: Bulk water Compliance Scheme Jakarta Year 2015-2030


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4.4 Solid Waste Management

In 2014 the city reached 5,300 tons of garbage per day, and in 2015 reached an average of 6,000 tons per day. A total of 3,845 tons, or approximately 60.5% of the waste coming from settlements, among other things remaining 1,429 tons (22.5 %) of offices, 725 tons (12.4%) of the industry as well as hotels and restaurants, as well as about 757 tons (12%) of roads, parks, stations and terminals. Waste transported only reached 87%, so 13% of the waste is still untouched. The bins were not transported is discharged into the river, dumped, burned, or in general carelessly discarded. Due to the large amount of waste that is not transported, the volume of the piles of garbage along the river every day to grow. The cost to the city every day to reach Rp1.95 billion waste management. Waste management in Jakarta is plagued lack of a fleet of trucks as well as non-permanent employees (PHL) in charge of transporting the garbage. The garbage truck owned DKI only 841 units, while 100 other truck units leased from private parties. Each truck transport capacity of 15 cubic meters and an average of 1.5 trips only able to operate every day. DKI truck fleets could only carry 21 172 m³ of waste per day. Every day there are about 2,000 m³ of garbage not transported. Continuous production and the limited number of carrier fleet makes the waste is not transported properly. Location landfill Jakarta is in Bantar Gebang the present condition is already full. To stop solid waste ending up in the surface water a full coverage (100%) of the solid waste collection is targeted, which will be implemented through the increase of available waste collection personnel and equipment, supported by the construction of three Regional solid waste treatment plants (Nambo in Bogor, Ciupecang in Tangerang and Bantergebang in Bekasi), and socialization campaign on cleanliness and waste recycling.

Bandara Soekarno Hatta Bandara Halim Perdana Kusuma Yang ada Transfer Station Limbah Direncanakan Limbah Transfer Station Prioritas Rencana ITF Masa Depan Intermediate Treatment Facility (ITF) Direncanakan Tempat Pembuangan Akhir (TPA) Stasiun Transisi Intermediate (SPA)

Utara / Barat / Pusat Utara / East / Pusat Selatan Timur

layanan Batas

Zona layanan

Lokasi: Marunda

Area: 76 ha Tersedia area: 8 - 10 ha Kemitraan Sektor Swasta

Kapasitas: 1.000 ton / hari

Lokasi: Cakung Cilincing Area: 5 ha

Teknologi: Pengomposan Tersedia area: 6 ha Kapasitas: 1.000 ton / hari

Operasi mulai: Juli 2007

Lokasi: Pulo Gading

Area: 11.85 ha Tersedia area: 6 ha Kapasitas: 1.000 ton / hari

Lokasi: Duri Kosambi

Area: 10.1 ha Teknologi: Pengomposan Tersedia area: 5.1 ha

Kapasitas: 400-800 ton / hari

Lokasi: Universtias Indonesia

Area: 1,9 ha Teknologi:? Kapasitas: 350 ton / hari


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4.5 Roads and Transportation

Based on The Study on Integrated Transportation Master Plan (SITRAMP) Jabodetabek, length of roads

in Jakarta is only 6549 kilometers; This has included non-toll flyover along 57 km. The total length of

roads in Jakarta is less than 1% of the total length of roads in Java. The length of roads in Jakarta is still

dominated by local road at 76.9% followed by 19.8% secondary roads and primary roads and highway

respectively 2.1% and 1.2%. Comparison between path length and the total area in Jakarta area is only

4%, while it is ideal for the city of Jakarta is 10-15%. Traffic movement in Jakarta and surrounding land

patterned inner ring road system (inner ring road) and the outer ring (outer ring road). The outer ring is a

primary arterial road network or radial network. With the lane over embankments, lanes may as well be

integrated into the road network system in the capital, such as the Jakarta outer ring road (JORR) 1 and

2. The road section is on the sea dike is sufficient to complete the already existing JORR , Not only that,

the highway above the embankment also help complete connectivity in North Java as planned central

government.

Figure 4-3: Jakarta Toll Road Map and Surrounding

In addition, the road above the embankment will also help speed up the movement of goods to and from

the Port of Tanjung Priok. Access to the east and west can directly via the ramp on top of the bank

without having to go directly through the toll JORR 1. The same ease is also given to passengers who fly

through Soekarno-Hatta. Passengers heading Cikarang and Bekasi can pass through the embankment


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and straight out in the west area of Bekasi. This will shorten the travel time for passengers to

destinations in East Jakarta.

The discussion on the development of the road network in this report will only discuss the development

of the motorway network which passes reclaimed island.

Public Transport Development

So far land transportation that can bring a lot of people are using the rail transport infrastructure. To

these shuttles government also planned to use the Mass Rapid Transit (Mass Rapid Transit, MRT) to

serve the North-South corridor (Blok M-Kota) through Jalan Sudirman-Thamrin. Areas that are not

served MRT plans to use the Light Rail Transit (Light Rail Transit, LRT), which is to the East-West

movement.

4.6 Harbours

Based on Tanjung Priok Port Master Plan 2012, the development of Tanjung Priok Terminal East Ancol

include the development and the development of Kali Baru North Terminal.

Figure 4-4: Tanjung Priok Port Development Plan

Construction of Terminal East Ancol divided into three (3) phases, among others:

Short-term (2012-2017) Terminal early stage development starting with the East Ancol reclamation

area of ± 25 hectares.

Medium Term (2018-2023)Reclaimed land on short term next Passenger Terminal built area + 25

hectares with a quay length of 500 m and depth of the pool -10 s / d -12 m LWS. At the same time

also be reclaimed in East Ancol in the medium term of ± 47.2 ha. Land reclamation on this mid-term

stage will be used as the Car Terminal Phase 1 with a quay length of 1200 m and the depth of the

pool -12 s / d - 14 m LWS. As the supporting infrastructure and to ease access in and out of

Terminal East Ancol built the access road (phase one) over 2100 m.

North Kalibaru Terminal Terminal East

Ancol

phase I

phase II phase III

phase I

phase II

phase III


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Long Term (2024-2030)At this stage of the long-term will do reclamation of ± 131.8 ha. Reclaimed

land is mostly used as a phase II expansion of the Car Terminal with an area of 92.8 hectares and

field + Multipurpose Terminal of ± 39 ha with a total quay length of ± 3000 m and a depth of -16 m

LWS pool, as well as the access road (phase two) Terminal East Ancol along the 2900 m.

Breakwaterexisting (DAM West) and partly breakwater east inflows that have a total length of 1927

m was dismantled and moved to the northern part of East Ancol reclamation along 309 meters. In

addition, there is an extension of the eastern breakwater inflows throughout 1385 m.

Terminal Ancol this eastern part of the plan of the island M of 17 reclaimed islands in the Bay of Jakarta

North Kalibaru Terminal Development divided into three (3) phases, among others:

Short-term (2012-2017) Short Term Stages in North Kalibaru Terminal development includes the

construction of Container Terminal (phase one), which consists of a container wharf along the 2,400

m with a depth of -16 m LWS pool and can be developed to a depth of -20 m LWS is projected to

accommodate vessels with a length of 400 meters, width 56 meters and draft of 15.5 meters. This

terminal has an area of 128 ha field with an access road along the 2,803 m, including equipment

container handling capacity reached 4,5-6 million TEUs per year. In addition, it also built liquid bulk

terminal on the north side with a quay length of 1600 m and a depth of -20 m LWS which has an

area reaching 48 ha including tools loading and unloading of bulk liquid handling. To support the

operational activities of the port, allocated development Reserve that can be used for the Power

Plant, water treatment, and Custom Clearance for the operation with the Customs Behandle

supplied seluruhnnya land area of 36 hectares. Breakwater construction and / or revetment made

throughout 9814 m to dismantle most of the existing breakwater (Breakwater Pertamina West and

East) along the ± 3.200 m. Moreover, also conducted dredging activities with a volume of

27,801,655 m3 ± to a depth of -16 m LWS.

Medium Term (2018-2023) At the stage of the Medium Term built Container Terminal (stage two)

on the western side of the development of Kalibaru Terminal Short Term lengths moorings at a

depth of 2080 m -18 m LWS and extends to a depth of -20 m LWS. The area of container terminal ±

130 ha complete with tools handling of containers, thus projected to increase the capacity of as

many as 4-5 million TEU's. To reduce the impact on traffic congestion due to development in the

North Kalibaru Terminal will dibangunan Highway and railroad tracks along the 7,200 m. The toll

road is built as many as three (3) lanes for each direction and form of the overpass (elevated road)

connecting Terminal in North Kalibaru to Marunda. The total width of the bridge + 26.20 m with a

width of each lane is 3.8 m. To obtain the free area under the bridge which can be passed vessels of

5000 GT, the bridge on a particular span will be built at an elevation + 20 m of the highest water

level with a width of at least 100 m span. The allotment of land in Marunda this will be a major

gateway to the Terminal in the North Kalibaru and will include activities such as:

- Administration gates (A-Check)

- Security Ports and Terminals

- Territory customs inspection, and

- Examination of Animal region

In addition, a portion of land in Marunda will function for industrial areas, CFS and stacking

containers.

Long Term (2024-2030) At the stage of the Long Term Container Terminal was built on the north

side of the Medium-Term development of Kalibaru terminal with mooring 2122.5 m long with a depth

of -20 m LWS. Container Terminal has an area of 63.6 ha ± tools including the handling of

containers. The addition of the field is projected to increase the capacity of 1.5 million TEUs.

Currently Kalibaru Terminal Phase I has operated investment value for the Kalibaru terminal 1 (New

Priok) amounted to 4.2 trillion Rupiah.


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5. Community Participation

5.1 Awareness Building / Community Empowerment

Below an overview is presented of past and ongoing NGO activities related to awareness building and

community empowerment in slum areas in Jakarta:

Ciliwung Merdeka was established in 2000 by the slum community who lived and wanted to stay on the Ciliwung riverbanks in Bukit Duri and Kampung Pulo. Ciliwung Merdeka's goal is to enable citizens of the community to counter the ill effects of social-economic-political-legal structural inequalities such as marginalization, inaccessibility, and poverty. To achieve this goal, Ciliwung Merdeka endavours to increase capacity and capability to respond to day to day struggles, to enhance critical awareness and solidarity, to cope with flood disasters, the threat of HIV-AIDS, drugs, the threat of forced eviction and stigmatization. Cultural and educational programs address environmental issues, health, economy, spatial planning, art and culture to improve the quality of life in the village. These programs empower community members to become healthy, happy, independent, and openly communicative despite challenges of poverty. We try to get into the "total conversation" with their situation of uncertainty, alienation (from the dominant urban development discourse that structurally causes inequalities), and how social, economic and political marginalization limits their life skills, and capacity. At the same time, we attempt to recognize the desire, the spirit of shared struggle, joy and their expectations. (source: The Struggle of 'Terrain Vague' Community on the banks of Ciliwung River: The Story of Bukit Duri)

5.2 Slum Redevelopment

Below an overview is presented of past and ongoing NGO activities related to slum redevelopment in

Jakarta:

The year of 2015 poor communities in Jakarta were evicted from several riverside kampongs such as Kunir, Kampung Pulo, and Bukit Duri. These evictions alarmed other communities to act immediately. Kampung Krapu and Tongkol in North Jakarta decided to demolish their own houses to give space for five meter wide lanes along the banks. From June to December 2015 several buildings were voluntarily torn down, including a small mosque at Tongkol. Further, the residents run through a series of public discussions, with attendance of a number of architects and academics. Consensus reached to prepare a vision of kampung self-improvement that involved the upgrading of both houses and public facilities. Seven families in Tongkol volunteered to rebuild their


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houses from scratch. Six out of seven households decided to share a structure over a shared lot. During October 2015 to January 2016 the six families were able to work together and completed their new three-story house. Project finance was made possible through a collective loan of EUR 10.000 available from Urban Poor Consortium (UPC). The Indonesian division of ‘Architecture Sans Frontieres’ (ASF-ID) contributed design and technical facilitation.

(source: www.architectureindevelopment.org)

5.3 Livelihood Improvement

Below an overview is presented of past and ongoing NGO activities related to livelihood Improvement in

Jakarta:

Marunda Urban Resilience in Action (MURIA) is an urban resiliency strengthening program funded by Cordaid Netherlands and CARE Interntional and delivered by Karina KWI Yogyakarta and Bina Swadaya Konsultan since August 2015. This program is inspired by the use of Integrated Risk Management (IRM) approach which integrates Disaster Risk Reduction, Climate Change Adaptation and Environment Management and Restoration in Partners for Resilience Program in Indonesia. The use of IRM approach was previously implemented in the rural areas in Nusa Tenggara Timur Province from 2011-2015. MURIA Program aims to bring the urban resiliency improvement in the urban spatial planning and development by fostering the engagement of the urban poor community and other stakeholders such as the Government of North Jakarta City, CSOs, private sectors and also academicians. The multi stakeholders collaboration within the established MURIA Platform towards the Marunda resiliency. Some urban resiliency program which have been delivered within one year of MURIA implementation are the Risk Proof Urban Farming, Participatory Mapping using OpenStreetMap (OSM), Flood Contingency Planning Making, and Waste Management Initiative. In April 2016 Care International Indonesia (CII) also joined the MURIA Platform to start the delivery of their Personal Advancement and Career Enhancement (PACE) program which will provide urban community soft skills enhancement through stress relief, financial literacy training, and leadership training for women group in Marunda. (source: www.cordaid.org)

The Kampung Maju Kamal Muara project was implemented by the Sahabat Cipta Foundation between 2008 and 2012. The project aimed to increase the livelihood of 450 smallholder households in Kamal Muara village, North Jakarta. It focuses on skills development of youth and women micro entrepreneurs. The project trained 40 middle school drop-outs in sewing and motor repair skill, after jobs were guaranteed a garment factory and a motorcycle workshop (Auto Mitsuda). The business knowledge and technical skills of 180 micro entrepreneurs has been improved and linked to potential markets. (source: www.sahabatcipta.or.id)


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5.4 Micro Infrastructure Improvement

Below an overview is presented of past and ongoing NGO activities related to micro infrastructure

improvement in Jakarta:

Wahana Visi Indonesia (WVI) has contributed in realizing clean and healthy Jakarta by implementing Community Led Total Sanitation (CLTS) in Kampung Penjaringan and West Semper in 2013-2015. In the 2.5 year period, WVI through Community-Led total sanitation for child-friendly eco-city in North Jakarta (CLEAN J) accompanies 20,584 people, 10 CLTS group, implementing triggering activities in 16 neighborhoods, 11 schools and children study groups. CLTS trigger is an activity that is conducted to trigger disgust or guilty feeling if there are community people throwing garbage in not proper place or defecating openly. WVI helped the operation of 5 garbage banks, which can absorb 5-7 ton of garbage that can be reused or recycled. Working with community people, WVI established 3 bio filtration units/ communal septic tanks that benefit 24 families. Through the CLEAN J project, WVI has contributed in improving the stop open defecation, hand washing with soap, and garbage sorting. (source http://www.wvindonesia.org)

FORKAMI is a new organization declared in 2000. Its missions are to create a platform for information exchange, mediate and provide some advises for different stakeholders on water quality management. In 2002, FORKAMI conducted a customer satisfactory survey in Jakarta, working together with the Regulatory Body of PD PAM Jaya.

5.5 Urban Management

Below an overview is presented of past and ongoing NGO activities related to urban management

redevelopment in Jakarta:

SAPOLA (Slum Alleviation Policy and Action Plan) was a policy-making activity accompanied by an action plan to alleviate slums. The activity was implemented by URDI (Urban and Regional Development Institute) between 2010 and 2014 and funded by the Cities Alliance (which includes 30 members, including World Bank and UN-Habitat). SAPOLA was basically designed to support the Indonesian government in the pursuit of improved human development index (HDI) and accelerate the achievement of Millennium Development Goal (MDG) 7 Target 11 (in 2020, achieve significant improvement in the lives of 100 million slum dwellers). The main purpose of SAPOLA is to develop national policies and strategies for reducing slums and improve living conditions of the people in it. SAPOLA included six pilot cities namely: Jakarta, Surabaya, Makassar, Banjarmasin, Palembang and Medan.


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6. Private Sector Participation

6.1 Corporate Social Responsibility (CSR) in Indonesia

Since the last two decades there has been a growing interest in CSR in Indonesia. Not only in the

corporate society but also in the larger political economic landscape. The uptake of CSR practices can

be observed in business as well as in government agencies and non-governmental organizations

(NGOs). In the early 1990s this was hardly the case and practice on Health, Safety and Environment

was mainly found in mining industries. In the mid-1990s the focus shifted from ‘security’ to a ‘social

license to operate’. Community development became the norm. This was even further enhanced by the

resignation of Suharto in 1998 and due to rising pressure from NGOs and other CSOs. Most recently,

law no. 40/2007 concerning limited liability companies made CSR mandatory for state-owned companies

(limited companies). CSR obligations have been introduced in three kinds of laws:

The State-Owned Enterprises Law (Law No. 19/2003). Article 88 of this states that Indonesian State-

Owned Enterprises (SOEs) must be active in assisting Small and Medium-Sized Enterprises

(SMEs), cooperatives and the people. They must also allocate 2% of their net profit to CSR.

The Investment Law (Law No. 25/2007). This Law defines CSR as 'the responsibilities attached to

every investment so as to maintain a harmonious and balanced relationship that concurs with the

environment, local values, local norms, and local cultures'. The responsibilities of investors with

regard to CSR are (a) to maintain environmental conservation; (b) to care for the safety, health,

comfort and well-being of employees; and (c) to comply with the laws. Infringement of the Law may

cause the withdrawal of a business permit. However, the Law still lacks implementation guidelines,

principles and standards.

The Limited Liability Company Law (Law No. 40/2007). Article 74 in this Law imposes an obligation

to engage in environmental social responsibility on companies which carry out activities in the

natural resources sector and/or in a related sector. A company in this category is obligated to

allocate funds for CSR implementation and the allocated funds are considered corporate operational

expense. Moreover, firms are allowed to treat CSR expenditures as costs in their accounting,

subject to the fairness of such expenditures. In some cases local governments stimulate companies

to fulfill their legal CSR obligations by donating funds for charity projects. According to INA, KADIN

and IBL this can then be considered as a kind of ‘tax’. There will be a sanction, which is as yet

undefined, should firms fail to implement CSR.

Despite the country being a frontrunner in making CSR mandatory by law, attention to CSR and sustainable development in general is currently mainly limited to international and large Indonesian enterprises. Some already implementing ISO 26000 guidelines. To a large extent this can be explained by the fact that enforcement by Indonesian authorities still represents a challenge. In addition, most Indonesian companies still consider CSR as a form of charity, as well as the government. The chamber of commerce (Kadin) of Indonesia has prepared its ‘own guidelines’ on CSR, which are mainly based on the ISO 26000. Indonesia Business Links (IBL) is a non-for-profit-organization founded in 1998 as a response to the economic crisis by a group of Indonesian business leaders, with the objective to promote good corporate governance and citizenship and encourage social and environmental responsibility as the best way out of the crisis. The organization is promoting CSR through publications, seminars and network building.


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ISO 26000: Guidance on Social Responsibility

ISO 26000 provides guidance rather than requirements, so it cannot be certified to unlike some other well-known ISO standards. Instead, it helps clarify what social responsibility is, helps businesses and organizations translate principles into effective actions and shares best practices relating to social responsibility, globally. It is aimed at all types of organizations regardless of their activity, size or location. The standard was launched in 2010 following five years of negotiations between many different stakeholders across the world. Representatives from government, NGOs, industry, consumer groups and labour organizations around the world were involved in its development, which means it represents an international consensus. The contents of the guidelines are reflected in the figure below. The column on the right describes the background and principles of CSR (Clause 1 till 4). The core of the guidelines on how to implement ISO 26000 in an enterprise is presented in clauses 5 till 7. ISO 26000 already moves in the direction of inclusiveness. This is reflected in Clause 5, where stakeholder identification and engagement is seen as a fundamental practice, and in clause 6 where ‘labour practices’, ‘consumer issues’ and ‘community involvement’ are defined core subjects of CSR.

Below several examples of private sector participation through voluntary as well as mandatory CSR initiatives will be presented. In DKI Jakarta developers are obliged to implement social projects identified by the provincial government, as social compensation. For development of housing complexes larger than 5’000 m² for example 20% of the area must be used for low cost housing.


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6.1.1 CSR initiatives in Urban Revitalization

Below an overview is presented of past and ongoing CSR activities related to urban revitalization in

Jakarta:

The Agung Sedayu Group has constructed 50 units low cost housing (‘Kampung Deret’) in Tanah Tinggi using CSR funds in 2013. The average cost per housing unit was around 50 million Rupiah.

Sinar Mas Land developed a semi-natural green park, playground, futsal court, hall and international-standard skate park in Kalijodo, which used to be Jakarta's oldest and biggest red-light district. the area and allowed partnering private developer. The eviction of the area, which opened up 1.6 hectares of new green space, was deplored by human rights groups saying it violated the principles of involuntary resettlement according to the UN International Covenant on Economic, Social and Cultural Rights that Indonesia ratified in 2005.

Pluit Reservoir Park using CSR funds of Jakarta Propertindo. The main purpose of the project is to restore its capacity in order to be able to mitigate the current conditions of annually flooding (and a 25 year return period). The project improves the living quality of almost 15.000 households currently located on the reservoir banks and prone to repeated flooding, by providing proper subsidized apartments nearby in order that these households may maintain their social and economic activities. It seeks to rejuvenate the area through integrated blue and green infrastructure for a more sustainable living where people can enjoy and interact closer nature. Private Sectors especially those in property business and Local Government Owned Enterprises were asked to participate in several ways. (www.urban-innovations.org)

6.1.2 CSR initiatives in livelihood improvement

Below an overview is presented of past and ongoing CSR activities related to livelihood in Jakarta:

Many companies provide scholarships as an application of CSR to supports students who have financial difficulties but having good academic achievement.

The Kampung Maju Kamal Muara project described in sub-chapter 5.4 was financed by CSR of PT. Kapuk Naga Indah. Livelihood initiatives are often funded through CSR and implemented by NGOs.

6.1.3 CSR initiatives in infrastructure development

Private companies are seldom willing to channel their CSR funds for improving public drinking water and

sanitation facilities. Most preferred to work directly with local communities rather than involve themselves

in activities in which they would have to deal with the government. CSR activities in this field in Jakarta

area therefor CSR activities of government enterprises, already active in the field. Below an overview is

presented of past and ongoing CSR activities related to urban infrastructure in Jakarta:


33

GPOBA Program (Global Partnership on Output Based Aid): Palyja has implemented 5,042 household connections for underprivileged in Rawa Bengkel, Menceng, Warung Gantung, Rawa Lele, Utan Jati, Muara Baru. These house connections included direct house connections for houses on legal land, and house connections through a master meter principle for houses on illegal land, where the master meter is located on legal land, and from there distributed by the community to illegal houses.

(Source: www.palyja.co.id and www.gpoba.org)

PT Agung Podomoro Land sponsors a continues Green Waste Program in its project areas and business units, among others are in Podomoro City, Sudirman Park, Kalibata City, Gading Nias Residences and CBD Pluit. Here the company supports the Local Government in waste management and recycling (waste banking and composting), as well as creating a clean and healthy environment for the surrounding communities.

http://www.palyja.co.id/


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6.2 Public–Private Partnerships (PPP)

In recent years, the Indonesian government has put an increasing amount of focus on Public-Private Partnerships (PPPs) as a means to increase infrastructure development across Indonesia, recognizing that inadequate infrastructure remains one of the main impediments to further economic growth and development. PPPs are a mechanism, now widely used across the world, in which the government and private sector partner together fund or operate a service. Indonesia has looked to PPPs as the magic solution to address many of its infrastructure issues and provide the funding and project expertise to get projects off the ground. Although the private sector is expected to take the lead in financing infrastructure projects and project development, take up has so far been limited. The progress of PPPs in Indonesia still remains at an early stage of development, with significant barriers such as difficulties with land acquisition, regulatory uncertainty and low levels of capacity among government officials at the regional level. This makes implementing PPP projects extremely difficult at present for the private sector – it also dissuades private sector investment. The Indonesian government has introduced a number of incentives to encourage take up and help address these issues. Despite these measures, only 3% of infrastructure projects over the last 5 years have been PPPs. The PPP Book 2017 is prepared to provide the latest preview and information about infrastructure PPP projects plan. Total projects in the PPP Book 2017 are 22 projects with 21 under preparation projects and 1 ready to offer projects also there are 17 already tendered projects. Projects under preparation in the PPP 2017 book relevant for JabodetabekPunjur are:

Development of Patimban Port, West Java (3203 million USD)

The 2nd Jakarta – Cikampek Toll Road (834 million USD)

Tanjung Priok Access Toll Road (281 million USD)

Pondok Gede Water Supply, Bekasi, West Java (25 million USD)

Figure 6-1: Tanjung Priok Access Toll Road


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7. Conclusions on Gaps and Overlaps of Policies, Plans and On-going Programs

Spatial plans of Jabodetabekpunjur and DKI Jakarta are in need of update to include latest

infrastructure developments (Coastal Revitalization, MRT, high speed train track)

The existing RPJM will soon be updated parallel to the new term of the governor of DKI Jakarta

The Kotaku program provides detailed bottom-up plans prepared through community participation

at RT/RW level, summarized per Kelurahan. Not all slum areas however are part of the surveyed

RT/RWs, especially the slum areas on illegal land. Further on the budget needed to implement all

the programs proposed in the Kotaku plans is much higher than the budget available to Kotaku,

even with the assistance of three donors (World Bank, ADB and IDB). Further on is livelihood

missing in the Kotaku plans.

The NCICD Roadmap includes urban revitalization in its programs, but as no clear plan to

implement this. Resettlement of communities is needed where rivers and sea dikes will be built.

According to Kotaku almost all citizens of DKI Jakarta have access to sanitation facilities. According

to the JICA sewerage and sanitation master plan however these facilities are badly maintained and

polluting the environment. To build a robust sewerage system for DKI Jakarta JICA estimates a

period of 40 years will be needed (until 2050).

Water supply expansion is hampered by lack of additional bulk water supply (already 20 years no

new bulk water sources). Many slum areas depend on water tank cars and water distributed by jerry

cans, because there is a lack of bulk water, and PD PAM Jaya is not allowed to connect

houses/shelters build on illegal land.

Jakarta has become cleaner because of high investment by DKI Jakarta in river cleaning and street

sweeping. Final disposal sites are however overfull, and new disposal facilities are not available yet.

The waste treatment site Nambo is still waiting its completion, and it is not clear if Jakarta will be

allowed to dispose its waste here.

The traffic in Jakarta is getting more and more congested. Public transport is still lacking behind but

has finally received serious attention (Busway MRT, high speed train). The traffic jams are however

expected to continue, since road capacity development is not able to follow the growth in motorized

vehicles.

National NGOs in Jakarta are mainly active in awareness building and community empowerment.

Former unfair resettlement practices of have resulted in a distrust among the slum dwellers to the

government and private sector. Many National NGOs have become specialized in teaching and

helping the community to achieve their rights. This has unfortunately resulted in a distrust between

the stakeholders, which makes multi-stakeholder participation very difficult. National NGOs active in

slum improvement and poverty alleviation in Jakarta are the Urban Poor Center (UPC), Ciliwung

Merdeka, KIARA and Rujak Center.

International NGOs are more active in livelihood and micro infrastructure development and disaster

resilience. Scale of their programs in Jakarta is however limited to the scale of a pilot projects. The

Indonesian government has directed the majority of International NGOs activities to rural areas.

Currently the MURIA program is the only slum improvement and poverty alleviation program in

Jakarta where International NGOs are involved, comprising Caritas/Cordaid with its off-spring


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Karina and CARE. International NGOs active in (mostly rural) livelihood include ICCO, SNV, and

Swisscontact, with its off-spring Sahabat Cipta Foundation.

Private sector participation is mainly limited to voluntary or obligatory CSR, where most voluntary

CSR is used for scholarships, and regreening, and obligatory CSR is directed to low cost housing

and infrastructure. PPP schemes are attractive in design but have seldom resulted in real

implementation. The role of the private sector to improve poverty and slums is still small.

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