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Asia Pacific Forum on

“Strengthening of Programming and Financing of

Strategic Urban Infrastructure Investment.”

DKI Jakarta Province

IDENTIFYING BOTTLENECKS IN

CAPACITY

Presentation by Sutanto Soehodho

Deputy Governor for Industry, Trade and Transportation

Jakarta Capital City Government

16 April 2012, Chengdu, China

OUTLINE

1. Current Circumstances and Challenges in Jakarta

2. Core Principles of Jakarta’s Development Policy

3. Information on Jakarta’s Medium Term

Development Plan

4. Financing of Development Projects

Current Circumstances

and Challenges in JakartaA.

JAKARTA AS A MEGACITY

Globalization and

Urbanization Population : 9,6 million

Population Density: 13.000 – 15.000/ sq. km².

Certain areas reaches 20.000 – 30.000 in habitants/sq. km²

Population Growth: 1,39% per year

Total population of the Jabodetabek (Greater

Jakarta) Megapolitan Area : 28 million (the

fourth largest in the world

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JAKARTA AS A DELTA CITY

KEPULAUAN SERIBU

Jakarta faces issues related to the geographical limitations of a city

situated in a delta

The delta of Jakarta is traversed by 13 streams

originating from regions outside Jakarta, all of which empty into the Bay

of Jakarta

Most of the lowlands, are influenced by the tides of the Java Sea

The high urbanization rate is not complemented by an

influx of more skilled workforce, which results in challenges in the following fields:

1. Transportation (i. e. traffic jam )

2. Water Resources Management (i. e.f looding)3. Waste Management4. Health Services5. Education6. Employment Opportunity

7. Welfare (i. e. poverty)

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Flooding and traffic congestion is

Jakarta’s most complicated issue to date

CHALLENGES

Principles of Development Policy

in JakartaB.

DEVELOPMENT POLICY IN JAKARTA

• Jakarta’s 2030 Spatial Plan is derived from

the Presidential Regulation No. 54 of 2008 on

Spatial planning in the Jabodetabekjur Greater

Jakarta Megapolitan Area

• The regulation is basically a Long Term

Development Plan (RPJP) which is described in

more detail in the Medium Term Development

Plan (RPJMD) for the year 2007-2012

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1. DEVELOPMENT OF ANINTEGRATED TRANSPORTATION SYSTEM

STRATEGY� Build MASS PUBLIC TRANSPORTATION SYSTEM as the backbone

for transportation

� DEVELOPING INFRASTRUCTURE SYSTEM

� Target ROAD RATIO 10%

Ilustration of TOD Sudirman Area,Bunderan HI

� RESTRICT THE USE OF PERSONAL

TRANSPORTATION � LL

Management, Congestion Pricing,

Intelligent Transport System etc.

� DEVELOPING THE AREA around

terminal, bus stop, shelter, and mass

public transit station in according with

TOD CONCEPT

STRATEGY� Optimizing the function of the RIVER /

MAIN CHANNEL

� Controlling the flow from the upstream

through the recovery and development

SITU and RESERVOIRS and

NORMALIZATION OF THE RIVERSIDE

ENVIRONMENT

� Improving and enhancing the DRAINAGE

SYSTEMS

� Constructing DIKES to anticipate the rising

of the sea level.

� Increasing the supply of the BLUE OPEN

SPACE to 5%

2. INTEGRATED FLOOD CONTROL SYSTEM

STRATEGY� Encourage an efficient and

environmentally friendly

TECHNOLOGY-BASED WASTE

MANAGEMENT SYSTEM

� Improve waste management system in

TPST Bantar Gebang

� Build Intermediate Treatment Facility

(ITF) in downtown

� Minimizing the volume of waste in

landfills by utilizing the 3R Principle

(Reduce, Reuse, Recycle)

3. INTEGRATED WASTE TREATMENT SYSTEM

STRATEGY

• Improving waste water

treatment services, both

centrally and communally

• Developing alternative source

of clean water (non-potable

water)

• Gradually separating the

drainage system and the

waste water piping system

3. IMPROVING LIQUID WASTE TREATMENT

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5. WATER SUPPLY

� Improving the public water

supply network

� Increasing the supply of water

or sustainably treated bulk

water

� Gradual decrease in the

exploitation of ground water

� Waste water treatment as a

source on clean water

� Utilization of sea water

STRATEGY

6. PROVISION OF HOUSING FACILITES

Achieved by urban renewal which encourages VERTICAL BUILDING, COMPACTNESS, and DIRECT CONNECTION TO THE MASS TRANSPORTATION NETWORK in accordance the characteristic of the region

At the relatively densely populated district area, such policies are implemented using the INTEGRATED KAMPUNG IMPROVEMENT PROGRAM

Creating a policy which gradually directs ONE DECENT HOUSING UNIT FOR EVERY FAMILY

7. PUBLIC FACILITIES AND SERVICES WHICH MEET INTERNATIONAL STANDARD

� Providing means for affordable and quality

education for the community

� Developing distribution system in an optimal trading

means attention to hierarchy and scale of service

areas

� Providing traditional markets which are clean, safe,

and convenient for public

� Providing means for social services which meet the

eligibility standards of the Capital of the Republic

of Indonesia

STRATEGY

8. INCREASING SUPPORT RESOURCES ENVIRONMENT AND NATURAL RESOURCES

STRATEGY� IMPROVING THE QUALITY OF URBAN

ENVIRONMENT

� Developing and optimizing THE GREEN OPEN

SPACE � gradually freeing SPACES owned by the

community

� Applying innovative ways in PROVIDING GREEN

OPEN SPACES such as the construction of ROOF

PARKS, and WALL GREEN etc.

� Involving and improving ROLES AND

PARTICIPATION BY THE COMMUNITY AND

PRIVATE SECTORS � including by

providing INCENTIVES to maintain and enhance

the GREEN OPEN SPACE and WATERSHEDS

AREA

� DISASTER MANAGEMENT

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9. DEVELOPMENT OF JAKARTA’S NORTHERN COASTAL AREA

REVITALIZATIONOF OLD BEACHES AND RECLAMATIONAREAS AS AN

INTEGRATED PROCESS

�UTILIZING THE PRICIPLES OF CROSS SUBSIDY

North Coast of AKARTA (32 Km), consisting of Reclamation Area (2.700 Ha) and Revitalization Area (2.500 Ha)

Directed to be an independent city area according to the principles of ECO2 CITY in managing the urban infrastructure, such as creating water and waste management system which is integratedwith the provision of energy, water management system and transportation system

Serves as Jakarta’s flood control facilities, and is well integrated with the plan of Jakarta Sea Defence (Sea Embankment)

Utilizing the BEACH for PUBLIC INTEREST while at the same time keeping the livelihood of the fishermen and preserving the coastal ecosystems

10. SPECIAL ECONOMIC ZONE

DEVELOPMENT (KEK) MARUNDA

According to the 2030 Jakarta Spatial Development Plan,

the Marunda area is designated as a Provincial Strategic

Areas for Community Economic Development

The area prepared for the projects

covers 3,200 hectares, consisting of of 1639 hectares of

land area and 1561 ha of sea area

MarundaCommunity Economy Area will be divided into

seven zones:

1. 2,036 ha of reclaimed zones;

2. 268 ha of industrial zones, warehousing, train stations

and government administration areas,

3. 154.2 ha of residential zones;

4. 121.47 ha of pure warehousing and industrial zones;

5. 197.82 ha of industrial and commercial warehousing

6. 207.96 ha of reservoirs, green open space, and

warehouse

7. 231.30 ha of green open space with commercial area

Informations on

Medium Term Development PlanC.

Jabotabek Metropolitan Priority Area

(MPA)

As part of the program MP3EI, MPA is expected to be

an entrance point of for investment and

industrial growth

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MPA Program

1. Construction of rail-based Urban

Transport System (MRT)

and increasing the number of

Commuter line Rail Transport

2. Development of roads inside the

city and and around the city limits

(regular and highway)

3. Redevelopment of the city

center to improve the environmental

harmony of the city

Program MPA

4. Improving water supply and waste water treatment system

5. Improving waste management

6. Improving Flood Control

7. Developing a new growth sub-corridor for Jabodetabek MPA

8. Developing Research Center

9. Construction of road/railway to support the new growth sub-corridor for Jabodetabek MPA

Program MPA

10. Development of

Cilamaya Seaport

11. Improving the Tanjung

Priok Seaport

12. Improving the Sukarno

Hatta Airport

13. Developing an

environmentally friendly

power plant

14. Development of Smart

Grid System

Development MRT (S-U)

Southern Corridor – North: 23.3 Km (Lebak Bulus –Kampung Bandan)

� Phase I : Lebak Bulus-BundaranHI � Estimated Cost : JPY 153,56 billion� Operation Target : 2016

� Phase II : Bundaran HI–Kampung Bandan� Estimated Cost :JPY 131,07 Billion� Operation Target: 2018

Cost Sharing (Kep Menko EkonomiNo 57/2005):� National Government : 42% (in

NPPH)� Local Government (DKI Jakarta):

58% (in NPPP)

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1. DEVELOPINGAREA around the terminal, bus

stop, shelter, and mass public transit station in

accordance with TOD CONCEPT

2. MRT Station Locations : Lebak Bulus, Fatmawati,

Cipete Raya, Haji Nawi, Blok A, Blok M,

Sisingamangaraja, Bund Senayan, Istora, Benhil,

Setiabudi, Dukuh Atas dan Bundaran HI

Development of the TOD AREA

along with the MRT CorridorDevelopment MRT (T-B)

� Balaraja-Cikarang Corridor

Synchronization of

road network and

JCDS

Polder to

keep water

Land

reclamation

Development Jakarta Coastal Defence that is

integrated with other development

Development Integrated with:

• Construction of Toll Road and Mass Rapid

Transport

• Reclamation

• Port Development

• Clean Water Provision

• Tourism

Regional Infrastructure Development

Financing D.

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Regional Infrastructure Development

Financing

� Limited government funds (Source : Local gov’t budget, state budget and loans

from non-profit lending institutions. Until 2025 the government was only able to

finance the fund amounting to IDR 50 trillion

� While until 2025, development of infrastructure costs about IDR 200 trillion.

� So there is a gap of IDR 150 trillion that can be financed by public enterprises /

private sector through non-conventional forms of financing such

as PPP, bonds/obligation, etc.

Project Needs

Local Gov. BudgetLocal Gov. Budget

2007 2025

Accumulated 50 trillion IDR for

Dedicated Project

Approx. Accumulated Regional GDP :

IDR 12.600 trillion

Funding Gap, 150

trillion IDR

Opportunity for Financing : PPP,

Capital Market, FDI, G to G Loan,

Gov. Debt.

Accumulated project need

207 trillion IDR

2012 Jakarta Capital City Government

Thank You