Prepared for: The Ministry of Economy, Trade and Industry Prepared ...

STUDY ON ECONOMIC PARTNERSHIP PROJECTS IN DEVELOPING COUNTRIES IN FY2011

STUDY ON THE LARGE-SCALE BRIDGE OVER THE STRAIT

OF SUNDA AND ITS SURROUNDING COMMUNITY

DEVELOPMENT IN THE REPUBLIC OF INDONESIA

FINAL REPORT

February 2012

Prepared for:

The Ministry of Economy, Trade and Industry

Prepared by:

JGC CORPORATION Value Planning International, Inc.

ORIENTAL CONSULTANTS CO.,LTD. NIPPON KOEI CO.,LTD.

NIPPON STEEL CORPORATION

Reproduction Prohibited

Preface

This report is a summary of results for the “Survey on Formation of International Yen Loan” which

was consigned as a FY2011 project from the METI (Ministry of Economy, Trade and Industry) to

our five companies (JGC CORPORATION, Value Planning International, Inc., ORIENTAL

CONSULTANTS CO.,Ltd., NIPPON KOEI CO., Ltd., NIPPON STEEL CORPORATION).

This survey, named the “Study on the Large-Scale Bridge over the Strait of Sunda and its

Surronding Community Development in the Republic of Indonesia,” examines the feasibility of the

project to construct the Sunda Strait Bridge and to promote regional developments, which are

estimated to cost more than 2 trillion yen. The project would directly connect Sumatra Island and

Jawa Island in Indonesia, heightening domestic connectivity in addition to developing surrounding

regions.

We hope that this report will aid in the realization of the project and will be of reference to related

officials in both Japan and Indonesia.

February 2012

JGC CORPORATION

Value Planning International, Inc.

ORIENTAL CONSULTANTS CO., Ltd.

NIPPON KOEI CO., Ltd.

NIPPON STEEL CORPORATION

Indonesia / Jawa Island / Overall view of Banten Province

Indonesia / Sumatra Island / Overall view of Lampung Province

Location of Projects

Ab-1

List of Abbreviations

(Abbreviation)

(English and/or Indonesian) (Japanese)

A ADB Asian Development Bank アジア開発銀行 AMDAL Analisis Mengenai Dampak Lingkungan

Hidup (EIA) 環境影響評価

ANDAL Analisis Dampak Lingkungan Hidup (Environmental Impact Analysis)

環境影響分析（EIA の一

部）

AS ATC

Automatic Train Control Aerial Spinning Automatic Train Control

エアスピニング（吊橋の

平行線ケーブルの架設

工法の一つ）

B BAPPEDA Badan Perencana Pembangunan Daerah (Indonesian Regional body for planning and development)

BAPEDAL Badan Pengendalian Dampak Lingkungan (Environmental Management Agency)

ｲﾝﾄﾞﾈｼｱ環境管理庁

（2000 年に廃止、BPLHD

に移管） BAPPENAS National Development Planning Agency ｲﾝﾄﾞﾈｼｱ国家開発庁 BKPM Badan Koordinasi Penanaman Modal ｲﾝﾄﾞﾈｼｱ投資調整庁 BKPMD National Investment Coordination Agency ｲﾝﾄﾞﾈｼｱ国家投資庁 BPLHD Badan Pengelolaan Lingkungan Daerah

(Regional Environmental Agency/Department of Environment)

ｲﾝﾄﾞﾈｼｱ地方政府の環境

管理局/環境部

BPN Badan Pertanahan Nasional (National Land Agency)

ｲﾝﾄﾞﾈｼｱ国土庁

BPPT Agency for Assessment and Application of Technology, Indonesia.

ｲﾝﾄﾞﾈｼｱ技術応用評価庁

BRT Bus Rapid Transit BSM PT Bangungraha Sejahtera Mulia ｲﾝﾄﾞﾈｼｱ・ﾗﾝﾌﾟﾝ州、ﾊﾞﾝﾃ

ﾝ州の依頼で、Pre-F/S を

実施している会社 B3 Harmful Wastes 有害廃棄物

C Capex Capital Expenditure 投資金額 CDM Clean Development Mechanism ｸﾘｰﾝ開発ﾒｶﾆｽﾞﾑ CER Certified Emission Reductions 排出権、排出枠

D DCF Discounted Cash Flow 割引キャッシュフロー DGLT Directorate General of Land Transportation

and Island Waterways 運輸省陸運総局

DGR DGST

Directorate General of Railways Directorate General of Sea Transportation

運輸省鉄道局運輸省海運総局

DNA-CDM Designated National Authority-Clean Development Mechanism

CDM 指定国家機関

DKI Jakarta Special Capital Region of Jakarta (Daerah Khusus Ibukota Jakarta)

ｼﾞｬｶﾙﾀ首都特別州

E EIA/ESIA Environmental Impact Assessment/Environmental and Social Impact Assessment

環境影響評価/環境・社会

影響評価

ERP Electronic Road Pricing

Ab-2

(Abbreviation)


G GHG Greenhouse Gas

温室効果ｶﾞｽ

GIS: Green Investment Scheme ｸﾞﾘｰﾝ投資ｽｷｰﾑ I IEDC Indonesian Economic Development

Corridor ｲﾝﾄﾞﾈｼｱ経済回廊

IGCC Integrated coal Gasification Combined Cycle

石炭ガス化複合発電

IPP Independent Power Producer 独立系発電事業 IRR Internal Rate of Return 内部収益率 J JABO(DE)TABEK Jakarta-Bogor-(Depok-)Tangerang-Bekasi ｼﾞｬｶﾙﾀ首都圏 JAMALI Java-Madura-Bali JCF JGC Coal Fuel JETRO Japan External Trade Organization ｼﾞｪﾄﾛ（日本） JICA Japan International Cooperation Agency 国際協力機構 JOGMEC Japan Oil, Gas and Metals National

Corporation 独立行政法人石油天然

ガス・金属鉱物資源機構 JUTPI JABODETABEK Urban Transportation

Policy Integration ｼﾞｬﾎﾞﾃﾞﾀﾍﾞｯｸ都市交通

政策統合ﾌﾟﾛｼﾞｪｸﾄ K KA Keranga Acuan (Implementation Plan) 実施計画 KCJ Kereta Api Commuter Jabodetabek ｼﾞｬﾎﾞﾃﾞﾀﾍﾞｯｸ鉄道会社 KIEC Krakatau Steel Industrial Estate Cilegon クラカタウ社が Cilegon

で手掛ける工業団地 KN-MPB Komisi National Mekanisme Pembangunan

Bersih (Indonesian National CDM Authority (NNA)

CDM 指定国家機関

KOMAS MPB National Commission for CDM L LARAP Land Acquisition and Resettlement Action

Plan 用地取得・住民移転計画

LCV Low Calorie Value M MCIE Modern Cikande Industrial Estate Modern グループが

Cikande で手掛ける工業

団地 METI Ministry of Economy, Trade and Industry,

Japan 経済産業省（日本）

MENLH Menteri Negara Lingkungan Hidup (Ministry of Environment (MOE))

ｲﾝﾄﾞﾈｼｱ環境省

MOT Ministry of Transportation 運輸省 MP3EI Master Plan Percepatan dan Perluasan

Pembangunan Ekonomi Indonesia 2011年 5月に発表された

ｲﾝﾄﾞﾈｼｱ共和国に於ける

経済加速化・拡充ﾏｽﾀｰﾌﾟ

ﾗﾝ（2010～2025 年） MPA Metropolitan Priority Area Metropolitan Priority Area

for Investment and Industry (MPA) in JABODETABEK Area（首

都圏投資促進特別地域）

構想 MRT Mass Rapid Transit

Ab-3

(Abbreviation)


N NC-CDM National Commission for CDM (KOMAS MPB (DNA-CDM in Indonesia))

CDM 国家委員会（ｲﾝﾄﾞﾈ

ｼｱの CDM 指定国家機

関） NMT Non-motorized Transport

O OD Origin-Destination P PAM Perusahaan Air Minum 水道会社 PAP Project Affected Person ﾌﾟﾛｼﾞｪｸﾄ被影響住民 PAX Passengers PERTAMINA ｲﾝﾄﾞﾈｼｱ国営石油会社 PGN ｲﾝﾄﾞﾈｼｱ国営ｶﾞｽ会社 PHPDT Peak Hour Peak Direction Traffic PLN ｲﾝﾄﾞﾈｼｱ国営電力会社 PPP Public Private Participation 官民連携 PT Perseroan Terbatas 株式会社 (DE) P U

PWS Department of Public Works Parallel Wire Strand

ｲﾝﾄﾞﾈｼｱ公共事業局プレハブ平行線ストラ

ンド（吊橋の平行線ケー

ブルの架設工法の一つ）R RKL Environmental Management Plan (Pencana

Pengelolaan Lingkunngan Hidup) 環境ﾏﾈｰｼﾞﾒﾝﾄ計画

RPL Environmental Monitoring Plan (Pencana Pemantauan Lingkunngan Hidup)

環境ﾓﾆﾀﾘﾝｸﾞ計画

RO Reverse Osmosis 逆浸透 ROW Right of Way

S SEA Strategic Environmental Assessment 戦略的環境ｱｾｽﾒﾝﾄ SNI Standard National Indonesia SPPL RKL/RPL 及び UKL/UPL

よりさらに簡略された

文書 SITRAMP

SSB

Study on Integrated Transportation Master Plan for JABODETABEK Sunda Strait Bridge

JICA が策定したジャカ

ルタ首都圏総合交通計

画調査（2004 年）スンダ大橋

T TOD Transit Oriented Development 公共交通指向型開発 ERP Electronic Road Pricing PT KA/PT KAI PT Kereta Api Indonesia ｲﾝﾄﾞﾈｼｱ鉄道会社（政府

の 100%持ち株会社（旧

ｲﾝﾄﾞﾈｼｱ国鉄）） U UBC Upgraded Brown Coal 改質褐炭 UKL Environmental Management Effort AMDAL が義務付けられ

ていない場合の RKL よ

り簡略化された環境ﾏﾈ

ｼﾞﾒﾝﾄ計画に関する文書

（Document） UNFCC United Nations Framework Convention on

Climate Change 国連気候変動枠組み条

約

Ab-4

(Abbreviation)


UPL Environmental Monitoring Effort AMDAL が義務付けられ

ていない場合の RPL よ

り簡略化された環境ﾓﾆﾀ

ﾘﾝｸﾞ計画に関する文書

（Document）

Table of Contents

Chapter 1 Overview of the Host Country and Sector

1.1 Economy and Financial Status .................................................................................. 1- 1

1.2 Outline of the Sectors ............................................................................................... 1- 3

1.3 Target Areas’ Status .................................................................................................. 1- 7

Chapter 2 Study Methodologies .

2.1 Study Contents……………….................................................................................. 2- 1

2.2 Study Methodologies and System ............................................................................. 2- 1

2.3 Study Schedule …...................................................................................................... 2- 2

Chapter 3 Justification, Objectives and Technical Feasibility of the Project

3.1 Overall……………………….................................................................................. 3.1- 1

3.1.1 Background and Necessity of the Project .............................................................. 3.1- 1

3.1.2 Studies to determine the Project specifics……….................................................. 3.1- 5

3.1.3 Project Plan Summary ............................................................................................ 3.1- 9

3.2 Sunda Strait Bridge Plan............................................................................................ 3.2- 1

3.3 Port ............................................................................................................................ 3.3- 1

3.4 Road and Railway ..................................................................................................... 3.4- 1

3.5 Regional Development .............................................................................................. 3.5- 1

3.6 Energy ....................................................................................................................... 3.6- 1

Chapter 4 Evaluation of Environmental and Social Impacts

4.1 Present Environmental and Social Conditions and Situations................................... 4 - 1

4.2 Environmentally-improved Effects by the Projects................................................... 4 - 12

4.3 Environmental and Social Impacts of the Projects.................................................... 4 - 17

4.4 Outlines of Environmental Law, Rules and Regulations in the Republic of Indonesia

…. 4 - 25

4.5 Matters to be completed by the related Authorities in the Republic of Indonesia to realize

the projects…........................................................................................................... 4 - 32

Chapter 5 Financial and Economic Evaluation

5.1 Estimate of Project Costs .......................................................................................... 5- 1

5.2 Overview of Results for Preliminary Financial and Economic Analysis.................. 5- 7

Chapter 6 Planned Project Schedule ...................................................................................... 6- 1

Chapter 7 Implementing Organization in Indonesia and Its Capacity for Implementation

7.1 Outline of Organizations in Indonesia ...................................................................... 7- 1

7.2 Organization for the Project Implementation in Indonesia ....................................... 7- 2

7.3 Review of Implementation Capability ...................................................................... 7- 6

Chapter 8 Technical Advantages of Japanese Companies ..................................................... 8- 1

Appendix

Appendix A4 : Evaluation of Environmental and Social Impacts

Appendix A5 : Results of Financial analysis

Executive Summary


EX-1

(1) Background and Necessity of Project In recent years, Indonesia has had high economic growth at around 6%, with concentration of the

economy in the Jakarta area, regional imbalance of energy resources and increasing economic

disparity between the capital region and rural areas becoming issues. In order to achieve further

economic growth in the future, it has become more important to use latent potential within the country

and make economic linkages between wider economic regions based on the Indonesia Economic

Development Corridors (IEDC) plan and Master Plan of Acceleration and Expansion of Indonesia

Economic Development (MP3EI).

The IEDC plan in Indonesia was arranged with support from the Japanese government, and it has been

decided to proceed with the construction of the Sunda Strait Bridge from the Domestic Connectivity

menu of the IEDC. Therefore cooperation and participation in this project is consistent with the

topics of political discussions between Japanese and Indonesian governments up to this point, and

continuing support is not only highly valuable, but also has the chance of providing Japanese

businesses with meaningful and significant business opportunities.

The roads around the industrial areas in Merak and Anyer, where many Japanese businesses operate,

are in poor condition due to heat, torrential rains, heavy vehicle traffic and poor maintenance, with

frequent traffic jams. For Merak harbour, it has become common for freight trucks to have to wait

several days, making improving area infrastructure an urgent issue. Once this project is completed, it

will not only contribute to the growth of existing Japanese businesses currently plagued by unreliable

logistics, but will also encourage new Japanese businesses to expand to areas on both islands around

the bridge.

Considering the situation, the importance of the Sunda Strait Bridge to connect Java and Sumatra has

been pointed out for some time and with the announcement of Pre-feasibility study results in 2009 by

Lampung and Banten provinces which are located on each coast, organizations have been created in

the central government to work towards beginning construction.

With the cost of bridge construction and related projects said to require investment of a massive sum

of upwards of 2 trillion yen, the cost is not something that can be covered by the Indonesian

government and local corporations, so participation by multiple governments and private companies is

a prerequisite. Currently Chinese companies are showing significant interest in this project, and are

aggressively approaching to the Indonesian side, making it urgent that Japanese businesses and

government start appealing their case as well. Also, due to the difficulty of recovering investment

costs from bridge tolls alone, it has been suggested that the project should be carried out strategically

by including regional development in the area.

(2) Studies Necessary to Determine Project Specifics It is not realistic to payback construction cost by only toll fee according to the sample of

Honshu-Shikoku bridges. The government support for construction cost and combination of

EX-2

surrounding area development are necessary. The item for future study to realize the bridge plan are

shown as follows

.・Significant decrease in the cost of bridge construction

・Government support loan for bridge construction

・To reduce the interest rates of loan for the bridge construction

・Using profits from local development projects to supplement payments for bridge construction

costs

(3) Project Overview 1) Related projects

After examining what kind of project would play to Japan’s strengths, while keeping in mind a

progressive construction timeline, projects that create benefits in the short-term will also be

considered in order to help appeal to Indonesia (for instance, a short-term project to improve road and

port infrastructure (larger, faster ferries) in industrial areas as a prelude to the long-term goal of

building the bridge).

The projects selected in this study based on local studies and surveys of related institutions are listed

below.

Table 1: Planned projects list

Project Current PJ Plan

Goal & Uses Target entities (local)

Referred in

SSB

Bridge

SSB (*) BSM carried out preliminary study.

Joint development to join Lampung and Banten.

-BAPPENAS -Economic

Coordination Minister Office

-BAPPEDA in Banten and Lampung

-Public Project Ministry

3.2

Port

Port Revamping (*)

Current capacity is mostly full with freight trucks. There is a plan for a 5th berth, but the site is an issue.

Since the current facilities are over capacity, it is vital to improve the current port before the bridge is finished.

3.3 (2)

Lampung

Port

New Port (*) None When building the bridge, jetties will be necessary for aquatic transportation, and creation of a new port is necessary along with turning the fabrication area into an industrial area.

-BAPPEDA in Lampung

-Local Traffic/Traffic Planning Bureau

-DGST

3.3.2 (2)

EX-3



Referred in

Road/ R

ail

Road Available (Provincial expansion project exists)

There is a project for a toll road (Bakauheni – Lampung). Maintenance of all roads, not just the toll roads, is necessary, and it is important to create a repair plan considering life cycle cost.

-BAPPEDA in Lampung

-Road Bureau of Public Project Ministry

-DGLT

3.4

Rail Available (Provincial expansion project exists)

There are projects for creating more lines and passenger lines. Maintenance is necessary for use as a long-range freight system.

-BAPPEDA in Lampung

-DGR

3.4

Regional developm

ent

Industrial Township

Some exist, but factories are scattered, and local infrastructure such as power, water and roads is weak * Provincial project exists

As part of a provincial project, maintenance of industrial areas exists. This project will develop industrial areas and the surrounding area as industrial townships

-BAPPEDA in Lampung

-

Industrial City, (Fabrication area) (*)

None When building the bridge, areas for fabrication and storage will be necessary, and a main base will be made on the Lampung side. Progressive development as an industrial area will also be carried out.

-BAPPEDA in Lampung

3.5.4

O&M Center None For operating and maintaining the bridge, continual monitoring and maintaining the state of the bridge is necessary, and creating an O&M center near the bridge is vital.

-BAPPEDA in Lampung

3.5.4.4

Airport (Lampung)

Airport with domestic connections available * Provincial project exists

The provincial project involves turning it into an international airport.

-BAPPEDA in Lampung

-

Airport city None In addition to adding international routes to the Lampung Airport, developing the area around the airport into a city is necessary to encourage airport demand for both people and goods.

-BAPPEDA in Lampung

3.5.5

Energy

Electricity Available (Provincial expansion project exists)

In addition to existing power generation, there is a project for geothermal energy. Considering the future large increase in demand for power, creating more efficient power facilities and power network is necessary. For efficient use of resources, geothermal and low-grade coal power in particular should be emphasized.

-BAPPEDA in Lampung

-PLN

3.6

EX-4



Referred in

Other

Logistics Base None (Provincial project exists)

There is a provincial project to use Terbanggi Basar as a logistics hub. When positioning it, there is a need to consider the surrounding infrastructure (road, rail, airports) and production centers.

-BAPPEDA in Lampung

-

Water for SSB (Desalination)

None Since water will be necessary for construction of the SSB, facilities will be made by RO and will be used to provide industrial areas in the future.

-BAPPEDA in Lampung

-

Water Supply Available (River available for industrial uses)

With water supply being vital for industrial areas in Lampung, having a water source for each area is important.

-BAPPEDA in Lampung

-

Banten

Road/ R

ail


Maintenance is necessary for all roads, not just the toll roads, and it is important to create a repair plan considering life cycle cost.

-BAPPEDA in Banten

-Road Bureau of Public Project Ministry

-DGLT

3.4



-BAPPEDA in Banten

-DGR

3.4

Regional developm

ent

Industrial Complex

Available There are industrial areas in Krakatoa and near Cilegon. However, they haven’t been integrated as complexes (utilities, lending materials), and they are also behind the curve on reduced energy methods. For continual future growth, they should be remade as complexes to operate at maximum efficiency.

-BAPPEDA in Banten

-Krakatoa

-

SMART City / Eco. City

None As part of Jakarta growing as a metropolitan city, a new city plan that is greener and has reduced energy use is vital.

-BAPPEDA in Banten

-

Water front city, Sports city, Maja

None * Provincial project exists

There is a provincial project, but as mentioned above it should be developed as an environmentally city that conserves energy.

-BAPPEDA in Banten

-

Other

Water Available (River available for industrial uses)

With water supply being vital for industrial areas, having a water source for each area is important.

-BAPPEDA in Banten

-

EX-5



Referred in

Agriculture Available (Existing agriculture)

Development of agriculture and food industries is vital not only as the background supporting Jakarta, but also to shift from high-energy to low-energy production.

-BAPPEDA in Banten

-

Food Industries None -

Tourism Around Anyer, there are several hotels on international lines

Tourism development taking advantage not just of Anyer, but also proximity to Jakarta is necessary.

-BAPPEDA in Banten

-

Tourist Village As part of tourism development, complex development as townships with consideration for regional characteristics is necessary.

-BAPPEDA in Banten

-

New Airport None (Project exists)

The necessity of a new airport must be studied along with tourism development.

-BAPPEDA in Banten

-

(*)Project whose costs are roughly estimated

Source: Study Team

2) Bridge Specification and cost

A survey has not yet been performed for the ground in the strait area. As a result, it is currently

impossible to provide an estimate of bridge specifications and cost. Therefore, based on experience

gained from the Akashi Strait Bridge, the base case, optimistic case and pessimistic case shown

below are set for this survey.

EX-6

Table 2：Bridge Specifications

Base case Case-1 (Optimistic Case)

Case-2 (Pessimistic Case)

Total distance 25km 25km 25km Central span 2,500m 2,500m 2,500m Number of suspension bridges

2 2 3

Suspension bridges (km)

10km 10km 15km

Marine approach (km) 15km 15km 10km Water depth 70m 70m 70m Notes Slide of Akashi Strait

Bridge Reduce cost for suspension bridge portion

Addition of one suspension bridge in area where seabed is weak

Source: Study Team

Based on experience gained from the Akashi Strait Bridge, costs for the base case, optimistic case

and pessimistic case are set as shown in Table 3.

Table 3： Bridge project cost

Base case Case-1 (Optimistic case)

Case-2 (Pessimistic case)

Construction cost 2 trillion yen 1.5 trillion yen 2.5 trillion yen Maintenance cost ：1st year 0.04%

2nd ：year 0.08% 3rd ：year 0.12%

… 50th ：year 2.00%

*The ratio listed above will be applied to construction cost each year (increase of 0.04% per year)

Notes Slide of Akashi Strait Bridge

Reduce cost for suspension bridge portion


Source: Study Team

3) Overall development projects in surrounding areas

Some reginal development projects of areas surrounding the Sunda Strait Brdige are picked up in

this Report and reviewed in Table 1. Among these projects, the focus is placed on the following four

projects from the viewpoints of the strength of Japanese companies, stepwise development accoridng

to the timeline, and short-term contribution:

(i) Port rennovation project (in Banten and Lampung） 35 billion yen

(ii) New port development project（in Lampung） 13.4 billion yen

(iii) Factory complex development with bridge construction（in Lampung） 8 billion yen

(iv) Airport rennovation project（in Lampung） 12 billion yen

EX-7

4) Financial and Economic evaluation

Economic internal rate of return (EIRR) was used to conduct economic analysis for the bridge itself

and will be estimated by the utilization of the input-output table.

The final demand will be determined based on the Sunda Strait Bridge construction cost, regional

development cost, industrial park construction cost, and geothermal development cost. The induced

production value will also be estimated by the utilization of the input-output table. (The Sunda

Bridge’s construction cost of 2 trillion Japanese yen will be used for the current estimates, according to

the base case cost estimation of the study.)

After considering the province’s GRDP per capita and the sector ratio, as the regional characteristics,

production inducement cost amounted to the figures shown in Table 4. The ratio of the total effect

(direct effect + primary effect + secondary effect) from the direct investment will be 1.69.

Table 4 Production Inducement Costs (billion yen)

Effect Sunda Strait bridge

construction cost

Direct effect 2,000

Primary effect 765

Secondary effect 610

Total effect 3,375

Source: Study Team

The number of new jobs created from the bridge investment (2 trillion yen) will be 238,894 people as

gleaned from the direct effect. The sum of direct and primary effects will be equivalent to 486,447

people, while the overall effect (direct effect + primary effect + secondary effect) will be 809,164

people.

Financial internal rate of return (FIRR) was used to conduct financial analysis for the bridge itself.

The calculation results are shown in Table 5. Toll fees are set in 1,000 yen and 3,000 yen, and the

ratios of assistance funds to the initial investment (the amount of assistance funds divided by the total

investment) are set in four cases. The assistance fund ratio of 0% is the case in which there are no

public subsidiaries and income from the development right. As for other assistance fund ratios

(25%/50%/75%), public subsidiaries and income from the development right are expected in the

amount equal to 25%, 50%, or 75% of the total investment.

EX-8

Table 5 Results for financial analysis of bridge

Analysis Case-0

(Base case)

Case-1

(Optimistic case)

Case-2

(Pessimistic case)Toll fee Supportive

capital ratio

1,000 yen 0% -2.24% (-) -1.41% (-) ―

25% -1.87% (-) -0.86% (-) ―

50% -1.20% (-) 0.10% (-) ―

75% 0.48% (-4.60%) 1.97% (2.48%) ―

3,000 yen 0% 1.20% (0.50%) 2.15% (2.83%) 0.53%(-7.34%)

25% 2.00% (2.52%) 3.10% (4.59%) 1.22% (0.60%)

50% 3.34% (5.04%) 4.57% (7.29%) 2.41% (3.33%)

75% 6.08% (10.05%) 7.63% (12.71%) 4.92% (8.00%)

* Value: Project IRR by DCF (Equity IRR).

Source: Study Team

As shown by the results, even when assuming a cutoff rate of 5%, this project is only financially

feasible in Case0-3000-75、Case1-3000-75. Even for the investment amount shown in Case1, support

capital of 50% or more is required for a toll fare of 3,000 yen.

Based on the above results, the following items must be reviewed in order to increase the feasibility of

the Sunda Strait Bridge.

・ Significant reduction in bridge construction costs.

・ A gratuitous loan from the government for bridge construction costs.

・ Restricted interest on interest-bearing support for bridge construction costs.

・ Apply profit from development in surrounding areas to repayment of bridge construction costs.

5) Environmental aspects

The related authorities and/or project operators shall implement the following tasks and duties

promptly to realize the projects:

・Survey and investigation required for plan and design of projects’ plants and facilities such as

route and site, soil investigation, sea water depth, sea conditions, etc.

・To implement feasibility studies, FEEDs, etc. to determine the project operators.

・Finalization of SEA and/or EIA by governments or project petitioners or operators to obtain

SEA and/or EIA approvals from Central and/or regional governments.

・ Preparation of LARAPs to start land acquisition for the projects if required

・ Start of negotiation about fisheries compensations, etc. with fishermen and persons affected by

the projects

(4) Planed Project Schedule In this project, stepwise development is suggested, assuming the timeline of surrounding

EX-9

development plans, based on the project schedule of the bridge.

It takes a long time to construct a bridge. In the case of Akashi Bridge, which is one of the largest

bridges in the world, it took 11 years. In the case of Sunda Strait Bridge , it is difficult to estimate the

construction period, because we have not conducted the assessments of ground and tidal currents, etc.

for design and construction. In this survey, we referred to the case of Akashi Bridge.

As for the surrounding development plan, the first step is to improve the ports between Merak and

Bakauheni, which are essential for bridge construction. The second step is to develop airport cities

and industrial complexes along with the construction of the bridge, and improve transport

infrastructure. The third step is to develop energy resources like geothermal energy, etc. as energy

infrastructure.

The following shows the provisional schedules of individual projects related to the construction of

Sunda Strait Bridge and surrounding area development.

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Figure 1: Project schedule

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Step 1

Step 2

Step 3

Step 4

Bridge

F/S *1

Design

Civil work

Tower

Cable

Installation

Operation

Area

development

Port

Industrial

area*2

Airport *3

Road/Rail

Energy

City

development

: construction : operation

*1 Feasibility study by initiators (including soil survey, etc.) and Basic architecture

*2 Developing industrial city based on temporally construction area.

*3 Renovation of Lampung Airport

Source: Study Team

(5) Feasibility regarding application/implementation for international yen loan

According to Presidential Regulation (No. 86/2011), a preliminary survey regarding construction of

the Sunda Strait Bridge is scheduled to be initiated by a consortium composed mainly of provincial

corporations from Banten Province and Lampung Province. We envision implementation through a

PPP (Public-Private Partnership). Regarding the form of the PPP, it was expected that the survey,

construction and securing of capital funds will be led by the private sector. The planned role of the

government was limited to supervising implementation and providing the minimum required amount

of capital.

However, as shown by the results of financial evaluation conducted for this survey, the project will

EX-11

not be feasible unless there are significant reductions in construction costs, restricted interest on

loans, and publicly provided capital support. Even as a PPP led by the private sector, this project

requires large-scale public support. The preliminary survey for the bridge and development in

surround areas is scheduled to be implemented by the consortium and completed by 2014. It is

necessary to wait for the results of this preliminary survey and conduct careful debate regarding an

international yen loan from Japan.

Furthermore, in addition to construction of the Sunda Strait Bridge, this project includes proposals

for nearly 30 items for regional development. A PPP scheme is not conventionally used for some of

these items, such as renovation of the port, and an international yen loan can be considered as one

method of capital procurement. Conversely, basic infrastructure (access roads, water, sewage,

electricity, etc.) for the construction of an industrial park will be conducted through development

planning and capital procurement by the central and municipal governments. Even so, it is possible

that the actual construction of the industrial park will be led by private corporations and there is

sufficient possibility of a PPP. The possibility of capital procurement for proposed items will depend

on the result of F/S by the initiator.

(6) Technical Advantages of Japanese Companies 1) Bridges

Japanese firms’ advantages regarding bridges are significant. Through a large number of large bridge

projects, including the one for Akashi Strait Bridge, the world’s longest suspension bridge, Japanese

firms have the cutting-edge advanced bridge technologies for the planning, analysis, designing,

materials, construction, and management of cable-stayed and suspension bridges. Accordingly, the

potential of Japanese firms is considered high. The materials that could be supplied from Japan are lightweight, high-strength steel cables (for

suspension bridges) and steel plates for bridges, which are produced with the Japanese latest

technology. The construction technologies for shortening a construction period include the base part

construction using caissons, antiwashout concrete, and the underwater placement method; prefab

towers, cable installation, and coating techniques. Japanese firms also have the

environmentally-friendly design, aseismic measures, and lifecycle-conscious operation and

maintenance, including the system for preventing the corrosion of the inner parts of cables, girders,

and towers using dry air. As for the activities of other countries, China, South Korea, Italy, France, and Denmark, etc. are

approaching the Indonesian government. In this circumstance, in order to use our technical advantages,

it is necessary for the public and private sectors to collaboratively appeal to the Indonesian

government and enlist continuous support from them such as the host by the Japanese government of

seminars selling Japan’s high-quality bridge construction technologies. 2) Port

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Technical advantages to the Japanese companies may be as follows:

a) New port

The targets of the project are regular port facilities. In previous projects, it was common for Japanese

companies, as well as Western consultants and construction companies, to be included. Recently,

however, with the enhancement of the competency of local companies in Indonesia, renovation can

be completed by local consultants and construction companies. Therefore, it seems that Japanese

companies are not so advantageous in terms of technologies.

Port construction work does not require special equipment or materials, and all the materials can be

procured locally. With this, almost no merits can be obtained if materials are supplied from Japan

with transportation costs.

If a new port is constructed at once as part of tentative facilities during the extended construction

work going with the construction of the bridge, there are a lot of merits. Particularly, it is possible

that Japanese companies can maximize knowhow on tentative yards for the construction of

long-span bridges, the area of thier specialty.

With this, it is important to for the public and private sectors in Japan to collaboratively appeal to the

Indonesian government and to sell their technical strength in the construction of a bridge itself and

their advantage in tentative yards, as well as the scheme to convert tentative facilities into a factory

complex upon the completion of the construction of the bridge.

b) Ferres

From the fact that the majority of commercial ferries in service between Meark and Bakauheni are

second-hand Ro-Ro ships made in Japan, it can be considered that Japan has advantage in the

deployment of commercial ships. Indonesia seems to continue to eye not new ships but cheap, second-hand ships. However, there is

possibility that the introduction of second-hand ships will pose problems to the effective handling of

traffic demands until the completion of the bridge because there is gap between second-hand ships in

their sizes, capacity of loading cars, performance including navigation speeds, and ship conditions.

New ships are more desirable because their performance conditions are homogenous. With this, as

major equipment supplied from Japan, Japan-made ships with advanced energy-saving technology

can be considered. For the supply of new Japanese ships reflecting our high-level shipbuilding technology, the use of

the grant aid scheme is considered to be realistic. This system, however, cannot be used for

Indonesia because it has already become unqualified as target nations of regular grant aids. As

mentioned in Chapter 3, Indonesian government officials pay attention only to the positive side of

the bridge construction and seem to be unaware of the negative byproducts, such as problem that if

EX-13

appropriate measures are not be introduced, local ferry services, which compete with the bridge

service, will face danger of bankruptcy, not to mention that development investment until the

completion of the bridge will go to waste.

From this, it can be recommended that the public and private sector in Japan will cooperate to appeal

to the Indonesian government and to sell Japanese technologies by incorporating the following three

points into the bridge construction package: i) the supply of new ships, ii) surveys on the

development of the networks of long-distance ferries after the completion of the bridge, and iii)

operational cooperation built on Japanese companies’ expertise and knowhow on the operations of

long-distance ferries. 3) Road & Railway

In the road and railway sector, Japan is not so advantageous in terms of technology because the

planning, architecture, and construction of roads and rails are also possible in Indonesia. Japan,

however, can boast the high reliability of its roads featuring the state-of-the-art anti-seismic

technology, knowhow on operational and maintenance management for the minimization of

life-cycle costs, and safety equipment such as ATS (the automatic train stop system). Also, Japan

can offer support in terms of advanced technology, such as ITS (Intelligent Transport Systems), as

well as the development of commercial areas, such as highway rest areas, and urban development

near railways.

With the introduction of the ETC（electronic toll collection）system, the supply of ETC-related

equipment is expected. As for railways, with the introduction of the ATS, the supply of equipment

and materials combined with signal and communication facilities is expected.

ATS- and ETC-related facilities manufactured by Japanese companies have advantages in terms of

safety and performance. Overseas companies, on the contrary, are more competitive in terms of

prices. For the enhancement of possibility of Japanese companies’ winning of orders, it is necessary

not only to constantly sell high-level technical competence of Japanese companies but also to

promote the trainings of Indonesian personnel in charge of maintenance and management through

technical cooperation, etc. so that they will prioritize safety, as well as cost-effectiveness. Also,

Indonesian personnel should be informed that ATS- and ETC-related equipment can be effective

only with appropriate maintenance work. With this, it is recommended that the package shall include

maintenance work, as well as initial investment. 4) Regional development

a) Development of Urban City and industrial city

Japan’s advantages regarding regional development and industrial complexes are element

technologies of sensors, batteries, information systems, and optimum designs for the development of

advanced cities, such as SMART cities, eco cities, and airport cities.

EX-14

For planning and designing stages, Japanese firms have the know-how to design and optimize

integrated cities, such as SMART, eco, and airport cities, the technologies to dynamically simulate

and optimize distribution, and the know-how to minimize lifecycle costs considering operation and

management technologies. For industrial complexes, Japanese firms have the know-how to design

and optimize cities where industrial and residential areas are integrated, the technologies for

advanced control and optimal design with information systems, the know-how to optimize industrial

complexes (including utilities and materials) based on the energy-saving technology, the

technologies to dynamically simulate and optimize distribution, the know-how to minimize lifecycle

costs considering operation and management technologies, and the know-how for one-stop services

prioritizing customer services. The fields of regional development and industrial complexes are considerably swayed by

development plans in each country, and so it is important to approach the country from the stage of a

master plan. When producing a master plan, it is necessary to approach the country under the private

initiative, and enlist assistance from the Japanese government. b) Airports and Airport Cities

Japan’s advantages regarding airports include the experience of developing many airports, the

know-how to operate airports for a long time, and the know-how to design and manage for urban

development integrating surrounding areas. This project requires not only the technology for optimizing the entire airport, but also the

technologies for designing airport cities, energizing surrounding areas, optimizing the distribution

networks around the airport, operating and managing the airport, and minimizing lifecycle costs.

Thus, there are many areas where Japanese firms can contribute. In Indonesia, an airport will be developed based on PPP. In order to conduct the above-mentioned

large-scale project for an airport city, it is indispensable to produce a master plan considering

surrounding areas and enlist cooperation from not only Indonesia but also the Japanese government. 5) Energy

Japan’s advantages regarding energy are outstanding technologies in reliability, efficiency, and

energy-saving, including highly-efficient gas/steam turbines, efficient power generation systems,

including combined cycle and cogeneration systems, and optimal design and control technologies for

minimizing transmission loss. The utilization of these technologies would contribute to the

development of reliable power generation systems and transmission networks in Indonesia. As for coal-using power generation, Japan has the unique technologies to reform low-rank coal. In

Indonesia, coal ash is recognized as a hazardous substance, and difficult to dispose of, and so coal

ash is not utilized there. Japan uses coal ash in the fields of cement, civil engineering, construction,

EX-15

agriculture and forestry, etc. and has various technologies to utilize coal ash. Japanese firms are competitive also in the field geothermal power generation. There is a high

possibility that Japanese firms will receive orders for the research and development of resources, the

construction of power plants, and the supply of power generators, as they have the technologies for

preventing corrosion and digging at high temperatures. Japanese companies can boast their distinctive techniques for refining low-rank coal. The possible

benefits of these distinctive techniques include license fees, the winning of the all-in-one orders,

including the design of facilities, the supply of equipment, and installation work, and business

income. Also, Japan has a high share of geothermal power generation plants, and the supply of

power generation facilities is expected. The utilization of low-rank coal is accompanied by risks in technological development, while

geothermal power generation is accompanied by risks in the development of underground resources.

In order to reduce these risks, it is necessary to conduct highly precise prior researches. We expect

cooperation in such researches from the Indonesian and Japanese governments. (7) Specific schedule until project implementation & risks

hindering implementation The core of present activities is specified by Presidential Regulation (No. 86/2011). A consortium

composed mainly of provincial corporations from Banten Province and Lampung Province is

specified as the initiator of the project, including the bridge and development in surrounding areas. A

preliminary survey is scheduled to be implemented by the consortium and completed by 2014. The

preliminary survey will include a plan for development of surround areas, also known as the

“strategic area’. It is important for Japan to focus on the progress of this preliminary survey. At the

same time, Japan must hold continuous discussions between Indonesian and Japanese government,

and must make an appeal for technical and capital superiority of Japan.

On the other hand, this project depends on the implementation capacity of related institutions

(government, private) in Indonesia. The following section summarizes future risks in terms of

technology, finance and organizations.

1) Technical aspect

According to the Ministry of Public Works, comprehensive examination on Sunda Strait Bridge has

not been conducted. Main activities are limited to information collection, workshop/seminar, study

conducted individually. In addition, survey necessary for construction (e.g. topography, soil) has

been conducted by the private sector in a limited scale so the quality may not be high enough to

satisfy requirement for design work. From those activities, some information regarding bridge

construction and regional development is available but since comprehensive examination that is

specific to Sunda Strait Bridge has not been conducted, according to PU personnel, it is necessary

EX-16

for technical and operational support.

2) Financial aspect

Since Sunda Strait Bridge project is planned to be implemented through PPP scheme, cost for survey,

design, construction, has to be borne by the Consortium, which is one of the criteria mentioned in the

Presidential Regulation. According to the information from BAPPENAS, public sector can provide

financial support but maximum is limited to 20% of the total construction cost, and cost of F/S and

DED is estimated to be about US$ 150 million and all cost has to be provided by the Consortium.

Cost of construction, on the other hand, is estimated to be 2 trillion yen (US$ 25 billion) and the

Consortium will be given right to develop Sunda area (or strategic area for Sunda), but it is difficult

to cover the construction cost from toll fee and development rights alone.

3) Operational aspect

Role sharing between the public sector and the Consortium in general terms is instructed in the

Presidential Regulation. For the public sector responsibility as supervision of the project,

establishment of development board, its structure and members and securing budget for the activities

of the board, and regular reporting responsibility to the President are instructed. For the consortium

responsibility, preparation for the project (feasibility study, basic design, implementation

organization, securing budget source, implementation mechanism and schedule) are instructed.

After the Presidential Regulation is approved, detail instruction is planned to be instructed by

another regulation and cooperation agreement for project implementation, through which operational

aspect and technical aspect (work items, schedule) and risk management will be defined.

In addition, operation of ferry has to be considered. For setting tariff on toll for the bridge, existence of

ferry becomes one of constraints. If ferry operation continues, demarcation between bridge and ferry

has to be examined in order to secure traffic volume of the bridge.

(8) Overview map of Projects The projects selected and examined in this study are shown as below.

EX-17

Figure 2: Overview map of projects

Source: Study Team

EX-18

Chapter 1

Overview of the Host Country and Sectors


1-1

1.1 Economy and Financial Status Indonesia was one of the few countries in the world that were not badly affected by the global financial

crisis of 2007. Since then the country has soundly managed a gradual but solid economic

transformation on the road to a more robust and balanced growth. Its current economic indicators,

initial results of the transformation process illustrate that the Indonesian economy grew by 5.8%,

which is a significant jump from the 2009 figure of 4.5%. This growth was accompanied by expansion

in investments and exports. According to the financial statistics issued by the Ministry of Finance,

the economic growth in 2011 will be 6.3%. Overall, balance of payments is expected to remain at a

record surplus accompanied by steady growth in international reserves.1

In 2010, amid global financial downturn among developed countries that negatively ushered in a

global financial recession, Indonesia fared better as manifested by its 5.8% economic growth helped in

no small way by its healthy export earnings and the increasing role of foreign direct investment.

Increased export performance was achieved by the availability of more diversified products and an

increase in the list of destination countries. The growth in exports was mainly due to improved

performance of export goods and the robustness of the manufacturing industry. Indonesia also enjoys

a large surplus in current, capital, and financial accounts from foreign direct investments (FDI). This

has resulted in a surplus in the Indonesian balance of payments in 2010, which reached US$3.03

billion. The improved balance of payments in 2010 led to the appreciation of the rupiah with low

volatility and became more steady compared to the rupiah’s position by the end of 2009.

Table 1-1 Estimated Economic Indicators of Indonesia (2006–2011)

Economic Indicator 2006 2007 2008 2009 2010 2011

Gross Domestic Product - Growth (%) - Nominal (billion Rp.)

5.5

3,339,217

6.3

3,950,893

6.0

4,952,357

4.5

5,613,442

5.8

6,253,790

6.3

7,006,727 Inflation (%) 6.6 6.6 11.1 2.8 5.3 6.3 Exchange Rate (Rp/US$)*1 9.164 9,140 9,691 10,408 9,200 9,300 Oil Price*1 (US$) 64.3 72.3 97.0 61.6 80,0 80.0

Source: Budget Statistics 2005 - 2011. Ministry of Finance. 2011 Note: *1 Annual average value.

Actual value: 2006-2009, Estimated value: 2010-2011

According to the Central Statistics Agency (BPS), the Poverty Severity Index is 0.58 on average in

Indonesia, and it is much worse in South Sumatera and Lampung, 0.71 and 0.72 respectively. The

Government, recently, changed the poverty line and the composition of poverty severity index

calculation, so there remains some controversial issues, but it is fair impartial to say that southern part

of Sumatera Island is more impoverish compared to resources rich provinces, like Riau and Jambi.

1 2010 Economic Report on Indonesia. Bank Indonesia. 2011

1-2

Table 1-2 Number and Percentage of Poor People, Poverty Severity Index and Poverty Line by

Province, (2010)

Source: Number and Percentage of Poor People, Poverty Gap Index (P1), Poverty Severity Index (P2), Poverty Line by Province, 2010. http://www.bps.go.id/index.php. Central Statistics Agency

The BOI reported that government’s foreign debt and the ability to service that debt remained

favorable, thereby further reducing potential instability of financial system stemming from external

debts. Table 1-3 shows the state budget in 2010 and the proposed budget for 2011.

Table 1-3 State Budget (2010–2011) (Unit: billion Rupiah)

Item 2010 2011

Current Revenues and Grants 992,398.8 1,104,902.0 1. Domestic Revenue 990,502.3 1,101,162.5 1.1. Tax Revenues 743,325.9 850,255.5 1.2. Non-tax Revenue 247,176.4 250,907.0 2. Grants 1,896.5 3,739.5 State Expenditures 1,126,146.5 1,229,558.5 Primary Balance -28,097.4 -9,447.3 Budget Surplus/Deficit -133,747.7 -124,656.5 % Deficit to GDP -2.1% -1.8% Financing 133,747.7 124,656.2 1. Domestic Financing 133,903.2 125,266.0 2. Foreign Financing -155.5 -609.5 3. Excess/Deficiency of Financing

0.0 0.0

Debt Service Ratio (%) 22% 20% Source: State Budget (2010-2011). Ministry of Finance. 2011 Note: (-) means capital inflow

Like other developing countries, Indonesia has long- and mid-term national development plans. The

long-term national development plan was promulgated under Law 17 in 2007 with a planning period

starting from 2005 to 2025. The current mid-term national development plan is from 2010 until 2014.

Based on the long- and mid-term national development plans, each ministry must prepare its mid-term

and annual sectoral development plans.

As mentioned in the long-term national development plan, one of the challenges facing Indonesia is

the need to improve the low accessibility, quality, and services of its physical infrastructures and

Urban Rural Total Urban Rural Total Urban Rural Total Urban Rural TotalRiau 208.9 291.3 500.3 7.17 10.15 8.65 0.17 0.57 0.37 276,627 235,267 256,112Jambi 110.8 130.8 241.6 11.8 6.67 8.34 0.42 0.14 0.23 262,826 193,834 216,187South Sumatera 471.2 654.5 1125.7 16.73 14.67 15.47 0.71 0.71 0.71 258,304 198,572 221,687Lampung 301.7 1178.2 1479.9 14.3 20.65 18.94 0.66 0.75 0.72 236,098 189,954 202,414Banten 318.3 439.9 758.2 4.99 10.44 7.16 0.22 0.28 0.24 220,771 188,741 208,023

DKI Jakarta 312.2 - 312.2 3.48 - 3.48 0.11 - 0.11 331,169 - 331,169Indonesia 11097.8 19925.6 31023.4 9.87 16.56 13.33 0.4 0.75 0.58 232,988 192,354 211,726

Percentage of Poor People(% )Province

Poverty Severity Index(% ) Poverty Line (Rp)Number of Poor People

1-3

facilities, which serve as the backbone for national development. In the transportation sector, land

and inter-island transportation networks are less integrated. As an archipelagic nation consisting of 17

thousand islands, the need for inter-island transportation, as well as cargo and passenger ferry

transportation, services has yet to be met.

Issues identified in the mid-term national development plan are the following: 1) Limited

transportation facilities resulting in high costs and safety issues; 2) Policy setting and planning are

carried out separately by line ministries and/or regions, resulting in weak connectivity and integration

across sectors and regions; 3) Limited funding for infrastructure provision; 4) Inadequate provision of

urban transportation infrastructure; and 5) Limited accessibility of transportation services in rural

areas.

The general targets of transportation development in the second mid-term national development plan

are the following: 1) To develop an integrated multimodal transportation network nationwide and

reduce bottlenecks caused by insufficient infrastructure capacity, 2) To improve accessibility of

transportation services in rural areas, 3) To enhance safety in transportation services and facilities, 4)

To carry out institutional restructuring in the transportation sector, and 5) To carry out adaptation and

mitigation measures on climate change in the transportation sector.

1.2 Outline of the Sectors (1) Road and Bridge

After the decentralization era, which started in 2001 based on Law Number 22, of 1999 on Regional

Autonomy (decentralization), the responsibilities of infrastructure development, operation and

maintenance were also divided among central, provincial and district/city governments. The central

government is now responsible for national roads and bridges and local governments are responsible

for local one.

Table 1-4 Road Network and Surface Condition (2008) (Unit: km)

Surface Type / Government Type State Province District/City Total

Asphalt 32,964 32,622 193,158 258,744 Gravel 1,664 4,311 66,958 72,933 Soil 0 3,012 88,432 91,444 Others 0 180 14,458 14,638 Total 34,628 40,125 363,006 437,759

Source: National Road Network in Indonesia 2008, Pusta Pengolahan Data, Bina Marga, Ministry of Public Works

1-4

Table 1-5 National Roads by Island (2008) (Unit: km)

Island National Road Length

Density Density Index

(km/km2) (km/1,000prs) Sumatra 10,588.91 0.022 0.217 0.069 Java 5,119.12 0.040 0.039 0.039 Bali & Nusa Tenggara 2,376.50 0.033 0.191 0.079 Kalimantan 5,705.97 0.010 0.444 0.068 Sulawesi 7,091.50 0.038 0.429 0.127 Maluku & Papua 3,746.83 0.008 0.739 0.075 Total/Average 34,628.83 0.018 0.152 0.052

Source: National Road Network in Indonesia 2008, Pusta Pengolahan Data, Bina Marga, Ministry of Public Works

Although the data in Table 1-6 is quite old the modal share of domestic freight transportation has been

considered to remain static since then.

Table 1-6 Modal Share of Domestic Freight Transportation (2001)

Transport Mode Total (‘000 ton) %

Road 2,514,150 91.25 Railway 17,250 0.63 Sea Transport 222,490 8.07 Air Transport 1,370 0.05

Source: Workshop Strategy for Indonesian-German Cooperation in The Priority Area Transport, 2006 DG Landcom (original: OD Nasional, 2001)

(2) Railways

Railway is operated only in Java and Sumatra Island; while railway dominates cargo transportation in

Sumatra Island, it is also used to transport passengers in Java Island. However, as shown in Table 1-6,

the modal share of railway is quite low, 0.63% (As the data is in 2001, there is some possibility not

reflecting current trend. Currently PT. KAI is focusing to cargo transportation by railways and

share of railway will be increasing.) In order to accelerate the use of railway for both passenger and

cargo transportation, the Directorate General for Railway at the Ministry of Transportation finalized a

national railway development plan in 2011,

Throughout Indonesia, the total length of operated track is 4,818,898 km.

Table 1-7 Railway Passenger and Freight in Java and Sumatra (2009)

Java Island Sumatra Island

Passenger (million prs) 202,907 4,223 Fright (million ton) 4,137 14,773

Source: Annual Statistics Book 2009. Ministry of Transportation. 2010

1-5

Table 1-8 Major Commodities Carried by Train (2005–2009) (unit: million ton)

Commodity 2005 2006 2007 2008 2009

Oil (Fuel) 3,406 2,892 2,966 2,624 2,470 Fertilizer 243 156 69 35 4 Cement 3,044 3,488 3,143 2,974 2,750 Coal 8,552 8,942 8,542 10,926 11,030 Plantation Products 472 532 644 645 1,038 Containers 445 476 271 266 111 Sand 80 44 29 29 28 Others 1,086 953 1,087 1,765 1,032 Total 17,328 17,483 16,751 19,264 18,463


(3) Air Transportation

The aviation industry has enjoyed steady domestic and international growth after the recovery from

the global economic crisis in 2007. This has been particularly true in the last two years. The number

of international passengers increased by two-fold in 2009 compared to that in 2003. The number of

trips made for international flights increased by 1.5 times in the same period, while the volume of

cargo either did not change much or decreased by as little as 6% in 2009, compared to that in 2003.

With the current airport developments in many provinces, the new airport development plans, and the

geographic characteristics of Indonesia as an archipelago, it is anticipated that the demands for

passenger and cargo will increase, particularly once low- to middle-income families have more

purchasing power in the future.

Table 1-9 Domestic and International Air Traffic in Indonesia (2003 – 2009)

Source: Domestic Air Traffic Indonesia 2003-2009, International Air Traffic Indonesia 2003-2009. http://www.bps.go.id/index.php. Central Statistics Agency

The enactment of Law No. 1 in 2009, or the Aviation Law, ushered the recent changes in air

transportation. The significant changes included a major policy change touching on airport operators

whereby private companies are now allowed to manage airports and compete with current operators

which commonly are state-owned companies. Under the new law, many airport operations are

expected to be transferred from the Directorate General of Civil Aviation to the private sector and from

the Ministry of Transportation to the local governments. Airport operations could even be a joint effort

between a private firm and a local government unit under PPP schemes. One such successful

Unit 2003 2004 2005 2006 2007 2008 2009Aircraft 774,820 999,711 1,006,222 1,058,747 1,005,682 871,777 1,146,383 - International 82,325 108,714 112,525 112,063 97,377 112,041 123,946 - Domestic 692,495 890,997 893,697 946,684 908,305 759,736 1,022,437Passenger 51,213,023 70,698,796 67,644,009 81,057,687 88,924,776 92,047,571 105,378,884 - International 8,687,809 10,952,841 11,858,358 11,697,977 13,370,874 14,852,474 16,313,295 - Domestic 42,525,214 59,745,955 55,785,651 69,359,710 75,553,902 77,195,097 89,065,589Carog 600,854 718,089 725,961 770,387 894,943 951,682 891,026 - International 230,349 232,541 230,032 249,243 322,868 319,995 290,947 - Domestic 370,505 485,548 495,929 521,144 572,075 631,687 600,079

trip

person-trip

ton

1-6

example is the new airport in Lombok, West Nusa Tenggara province. Eighty percent (80%) of the

fund used to build the new airport came from the private sector while the remaining 20% came from

the local government.

(4) Maritime Transportation

Composed of 17,000 islands, Indonesia is the world’s largest archipelagic nation. Because of its

fragmented landmass, maritime transportation plays a vital role in the country’s economy and

development, especially in the aspect of inland and international transportation of people, goods, and

services. Figure 1-1 shows the increasing transaction volume in the past five years for domestic and

international cargos, especially for domestic cargo. A plateau in the growth of the volume on

international transactions after 2007 until the current date is ascribed to the impact of the global

financial crisis. However, as the domestic cargo volume shows, the crisis did not significantly affect

the domestic market, further showing that Indonesia is one of the countries least affected by the

financial crisis.

Figure 1-1 Inter-island and International Cargo Volumes (2000–2009) (Unit: ‘000 ton)

Source: Inter Island and International Cargo Loading and Unloading Indonesia 1988-2009 (000 tons). http://www.bps.go.id/index.php. Central Statistics Agency

Indonesia’s maritime fleet has also increased in the past years along with the rise of the country’s

transaction cargo volumes. Table 1-10 shows the number of ships by ownership. In total its

maritime fleet has increased by 14% in the past five years. On the other hand, the national ownership

increased by more than 50% in the same period mainly due to the government policy increasing the

capacity of inter-island transaction volume by maritime transportation. Although the number of fleet

and cargo volume steadily increased and took more share of domestic cargo transportation, a major

constraint for ship transportation is insufficient infrastructure and operating capacity at major ports

throughout the country. The limited capacity in port facilities is causing congestion in operation,

loading and unloading, and has led to logistical delays.

0

200,000

400,000

600,000

800,000

1,000,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Domestic International Total

Domestic

International

1-7

Table 1-10 Number of Ships by Ownership

2005 2006 2007 2008 2009

National 6,012 6,428 7,154 8,165 9,164 Foreign Charter 1,955 1,488 1,154 977 865 Foreign 6,520 6,594 6,540 6,616 6,510 Total 14,487 14,470 14,848 15,758 16,539


Another major issue in maritime transportation is dilapidated vessels. Since shipbuilding industry is

still in a primitive stage in Indonesia, the country must rely mostly on imported second-hand vessels.

Because of this practice almost 40% of the country’s maritime fleet are composed of vessels that are

still being operated even though they have already reached the 25-year durable age limit.

Figure 1-2 Vessel Age in Indonesia (2008)

Source: Data Collection Survey on Priority Sectors and Developmental Issues in the Republic of Indonesia. JICA. March 2010.

1.3 Target Areas’ Status (1) Banten Province

Banten province is one of the expansion areas that used to be a residential area of Jawa Barat (West

Java) province. It became a province by virtue of Law No. 23/2000. Banten province currently

consists of four regencies(Pandeglang regency, Lebak regency, Tangerang regency and Serang

regency) and four municipalities (Cilegon municipality, Tangerang municipality, Serang municipality

and Tangerang Selatan municipality). Banten province lies between 5º7'50" and 7º1'11" south

0

20

40

60

80

100

120

140

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44

Age

Num

ber

of

Vess

els

GenCargo Container Bulk

62% 38%

0

20

40

60

80

100

120

140

0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44

Age

Num

ber

of

Vess

els

GenCargo Container Bulk

62% 38%

1-8

latitude and 105º1'11" and 106º7'12" east longitude.

It is located on the western tip of Java Island and provincial capital (Seran) is about 70 km from DKI

Jakarta. It has a total area of 9,662.92 km2 or about 0.51 percent of the total area of Indonesia. It shares

borders with the province of DKI Jakarta and Jawa Barat to the east, the Java Sea to the north, the

Indian Ocean to the south, and the Sunda Strait to the west. Thus, Banten province has a strategic

position as a connecting land between Java and Sumatra Island, which lies across Sunda Strait. The

municipality of Tangerang Selatan has now become the hinterland of DKI Jakarta.

The total population of Banten province from year to year is constantly increasing. In 2000, the

population numbered 8.10 million, increasing to 9.78 million in 2009 at an average of 2.1 percent per

year. When compared with that year’s projected population for Indonesia, which is 231.37 million,

Banten’s population accounted for 4.20 percent of the total population of the country. This made

Banten the fifth most populous province in Indonesia. In 2009, Banten was also one of the four large

provinces with the densest population. Its density level reached 1,085 inhabitants per km2. The total

labor force in Banten province reached 4.36 million people in 2009 from 4.33 million the previous

year, or an increase of 31,785 people.

Banten’s economy in 2009 faced a tough challenge, mainly due to the financial and economic crises

which spread globally since 2008 with its maximum impact felt that year. As a result, the economy

slowed down and foreign demand weakened, adversely affecting Banten’s capacity in the supply side,

especially in its manufacturing sector.

On the demand side, from the total GRDP of Banten amounting to INR133.05 trillion, 59.49 percent is

accounted for by household consumption; 31.65 percent by gross fixed capital formation; 4.80 percent

of the expenditure components government's 6.89 percent and the remainder of the component stock

changes and net export components. Therefore, it can be said that the economic growth of Banten is

driven by domestic household consumption.

In real terms, Banten’s economy in 2009 grew by 4.69 percent, which was lower than in 2008, when

the country posted a 5.77 percent growth rate. The slow growth of the supply side was due to the

slowdown in growth in most economic sectors, especially manufacturing as well as trade, hotels and

restaurants, which grew by 1.50 percent and 6.51 percent, respectively, as a result of the weakening of

foreign demand and sluggish demand for investment. Manufacturing and trade/ hotels/ restaurants

sectors are the dominant economic sectors in Banten with their respective shares of 43.17 percent and

20.79 percent.

The manufacturing and trade/ hotel/ restaurant sector are concentrated in Tangerang municipality,

Tangerang regency and Cilegon municipality. Thus, Banten’s GRDP is dominated by these areas. In

1-9

2009, these same regency and municipalities shared 34.94 percent, 21.75 percent and 14.15 percent to

the nominal GRDP of Banten. The rest which amounted to 29.16 percent came from Serang regency,

Tangerang Selatan municipality, Pandeglang regency, Lebak regency and Serang regency.

Meanwhile, in terms of growth, Tangerang Selatan municipality became the fastest regional economic

growth center that reached 8.49 percent and the slowest one was Serang regency which only grew by

3.18 percent. Meanwhile, Tangerang municipality, Tangerang regency and Cilegon municipality each

grew by 5.74 percent, 4.40 percent and 4.84 percent.

The GDRP per capita in Banten was 11.41 million rupiahs in 2007, increasing to 12.76 million

rupiahs in 2008. Compared to other regencies and municipalities, the GDRP per capita of Banten

ranked the highest at 52.43 million rupiahs. In 2008, the regency with a higher GDRP growth rate

than that of the province were Cilegon and Tangerang (29.18 million rupiahs).

Table 1-11 Distribution of Banten Province GRDP at Current Market Prices by Industrial Origin

(million rupiahs), 2007-2009

Type of Industry 2007 2008 2009

Agriculture 5,242,350.48 5,408,861.73 5,641,900.50

Mining & Quarrying 69,292.77 79,151.12 90,195.51

Manufacturing Industry 31,496,751.75 32,225,075.20 32,707,531.26

Electricity, gas ,water supply 2,629,581.32 2,805,792.50 2,922,549.08

Construction 1,880,273.94 2,010,388.56 2,204,523.41

Trade, Hotel, Restaurants 12,800,800.86 14,202,996.50 15,127,918.26

Transportation & Communication 5,780,569.93 6,200,675.31 6,877,187.61

Finance, Real estate, Business Sv. 2,138,061.77 2,489,875.78 2,822,560.19

Services 3,009,092.96 3,380,093.59 3,636,754.80

TOTAL GRDP 65,046,775.77 68,802,910.30 72,031,120.61

Source: Banten Dalam Angka 2010

1-10

Table 1-12 Banten Province GRDP at Current Market Prices by Regency/Municipality


2007 2008 2009

Regency

Pandeglang 6,122,594.25 6,939,119.48 7,465,228.79

Lebak 6,029,385.22 6,749,770.68 7,279,724.71

Tangerang 25,305,220.70 28,270,740.50 30,707,143.77

Serang 9,846,646.45 10,729,727.43 11,497,791.59

City/Municipality

Tangerang 39,354,584.22 44,688,729.38 49,330,670.42

Cilegon 16,038,683.42 18,013,859.12 19,982,129.65

Serang 3,884,487.47 4,354,137.96 4,806,605.82

Tangerang Selatan 7,649,549.15 8,931,176.87 10,127,849.79

Total (8) 114,231,150.88 128,677,261.42 141,197,144.54

Source: Banten Dalam Angka 2010

(2) Lampung Province

Geographically, Lampung is located between 103º0’40" and 105º0’50" east longitude and from

6º0’45" to 3º0’45" south latitude. The northern boundary of Lampung is Sumatera Selatan and

Bengkulu, the southern boundary is Sunda Strait, the eastern boundary is Java Sea, and the western

boundary is the Indonesia Ocean. Lampung has a total area of 3,528,835 hectares. Lampung Barat is

the largest area in Lampung province (495,040 hectares), while Metro is the smallest (6,179 hectares).

Based on data from the Public Work service, Lampung province has five river basins, namely Tulang

Bawang river basin, Mesuji river basin, Seputih river basin, Sekampung river basin, and Semangka

river basin. Rivers and streams have a potential that can be utilized and preserved. Based on data

from the National Land Agency, Lampung province has more than 150 islands, both large and small.

These islands have the potential to improve the welfare of the people of Lampung. It is commonly

known for its geological instability in terms of earthquakes and volcanoes.

The western part of Lampung province is mountainous and known as “Bukit Barisan” meaning

mountain range, with some parts at more than 1,500 m above sea level. The center of the province is

hilly, while wetlands and peat characterize the eastern portion. Agricultural areas for palm oil,

cassava, sugar cane, coffee, and rubber are located in the center of Lampung province.

In 2008, the population of Lampung province was 7,391,128. Population density showed an

imbalance: Compared to the regency, the municipality’s population density was generally higher. The

population density of Bandar Lampung, for example, reached 4,320 per square kilometer, while Metro

accommodated 2,205 persons per square kilometer. In contrast, the population density in some

1-11

regency is below 500 per square kilometer. In Lampung Barat, population density is only 81 per

square kilometer.

Lampung province has three seaports, namely, Panjang seaport, Srengsem seaport, and Bakauheni

seaport. Panjang Seaport handles goods. The Srengsem Seaport is used exclusively to export molasses,

and the Bakauheni Seaport is used for passengers, goods, and vehicles. In 2009, the number of

passengers passing through Merak-Bakauheni used both ro-ro ships and speed boats but the latter

declined compared to 2008. On the other hand, the number of crossing vehicles increased.

Table 1-13 Number of Passengers and Vehicles/Cars through Merak-Bakauheni Ferry Route

Merak-Bakauheni 2007 2008

Passengers (prs) 14,585,873 16,363,319

Vehicles/Cars (unit) 2,750,846 3,123,688

Source: Statistik Perhubungan 2008 Table A.1.2.04-06

Based on Lampung’s GRDP at 2000 constant prices, the economic growth of the province for the past

three years increased. In 2009, the economic growth of Lampung increased by 5.07 per cent. This

figure is lower compared to the 5.26 percent posted in 2008.

In 2008, majority of the economic sectors in Lampung province experienced positive growth except

for mining which experienced a negative growth of -9.21 per cent. In the past years, the financial

sector, rental and business service sector had the highest growth at 12.91 percent, followed by

transportation and communications which increased by 11.25 percent. The trade, restaurant and hotel

sector is in third place with 6.95 percent growth rate.

For the past three years, the industrial structure was dominated by three main sectors of the economy,

namely, agricultural sector; trade, restaurant, and hotel sector; and manufacturing sector. Based on the

GRDP’s of Lampung province in 2009, the share of this agricultural sector is 34,381.8 billion rupiah

(38.93 per cent). Meanwhile, the manufacturing sector is 12,423 billion rupiah (14,07 Percent).

By expenditure, the largest share in Lampung’s GDRP was spent in 2007-2009 on household

consumption and foreign trade. In 2009, the total household consumption was 51,414 billion rupiah or

about 58.21 percent of the total GRDP. This is followed by export and import at 29.63 percent.

During the period 2006-2009, the GDRP per capita in Lampung based on current prices increased. In

2006, it was 6.811 million rupiahs, increasing to 10.08 million rupiahs in 2008. Compared to other

regencies and municipalities, the GDRP per capita of Bandar Lampung ranked the highest at 20.48

million rupiahs. In 2008, the regency with a higher GDRP growth rate than that of the province were

Bandar Lampung, Tanggamus, Tulang Bawang, Lampung Tengah, Lampung Utara, and Lampung

1-12

Barat and Metro, while the other regency/municipality have growth rate lower than province’s growth.

The highest growth rate occurred within Tulang Bawang regency (6.98 percent). This was followed by

Bandar Lampung with 6.01 percent. Way Kanan Regency had the lowest growth rate with 4.38

percent.

Table 1-14 Distribution of Lampung Province GRDP at Current Market Prices by Industrial Origin

(hundred million rupiahs), 2007-2009

Type of Industry 2007 2008 2009

Agriculture 227,329 287,738 343,818

Mining & Quarring 21,901 23,066 17,800

Manufacturing Industry 83,139 97,265 124,230

Electricity, gas ,water supply 4,012 4,415 4,127

Construction 30,790 32,782 37,428

Trade, Hotel, Restaurants 87,147 101,589 120,462

Transportation & Communication 50,948 66,601 87,976

Finance, Real estate, Business Sv. 3 6,651 47,729 57,126

Services 67,298 83,716 90,253

TOTAL GRDP 609,219 744,905 883,224

Source: Lampung Dalam Angka 2010

1-13

Table 1-15 Lampung Province GRDP at Current Market Prices by Regency/Municipality


2007 2008 2009

Regency

Lampung Barat 1,886,393 2,252,210 2,527,773

Tanggamus 4,785,848 5,681,752 4,167,827

Lampung Selatan 6,087,585 7,248,902 9,108,034

Lampung Timur 7,157,048 8,177,979 8,958,866

Lampung Tengah 9,193,036 11,092,671 13,635,156

Lampung Utara 4,812,148 5,771,034 7,111,438

Way Kanan 2,084,552 2,586,367 2,425,569

Tulang Bawang 7,921,438 10,129,195 5,819,800

Pesawaran 2,766,724 3,317,681 4,119,305

Pringsewu - - 2,509,773

Tulang Bawang Barat - - 2,844,919

Mesuji - - 2,833,526

Municipality

Bandar Lampung 10,525,658 13,437,169 17,067,998

Metro 756,550 869,206 1,017,101

Source: Lampung Dalam Angka 2010

1-14

Chapter 2

Study Methodologies


2-1

2.1 Study Contents This study is aimed at summarizing the previous researches about Sunda Strait Bridge and the

regional development around Banten and Lampung. We also studied social and economic situations,

including local organizations, legal systems, industries, distribution, transportation, urban

development, and land use.

Actually, we summarized development plans with reference to national and regional development

plans, economic corridor plans, national and provincial space plans (Banten and Lampung).

2.2 Study Methodologies and System (1) Study method

By collecting and summarizing existing reference materials and interviewing related institutions, we

put together national and regional development plans, economic corridor plans, national and

provincial space plans (Banten and Lampung), to grasp the current situation and clarify problems.

Based on existing data, we grasped the current situations of distribution and flow of people and needs

at transportation and traffic centers, the current situation of trade between the Java and Sumatra, the

current situation, needs, and trend of industrial development, etc. (without field surveys, such as

measurements).

The following institutions are the inteviewing targets.

・Central governments: BAPPENAS, Economic Coordination Minister Office, Public Project

Ministry

・Local governments: BAPPEDA in Banten and Lampung, Public Project Bureau

・Private sector: Japanese firms and logistics companies, etc.

We collected mainly the following reference materials:

・National development plans (medium-term and long-term plans)

・Regional (provincial) development plans (medium-term and long-term plans), national space

plans, and provincial space plans

・Sunda Strait Bridge-related references: pre-feasibility study by BSM

(2) System

Each study team was composed of the following members, and researched bridges, regional

development, industrial complexes, ports, roads, railways, and energy.

2-2

Fig.2-1: System table

2.3 Study Schedule (1) Schedule

Studies were conducted in accordance with the following schedule.

Fig.2-2: Schedule

2011 Jul

Aug

Sep

Oct

Nov

Dec

2012 Jan

Feb

Work in Japan

Current situation study

Development strategy

Project scheme

Economic/social effects

Environmental preservation

Project development

Reports

Field surveys

Current situation study

Field interview 1

Field interview 2

Field reports

2-3

(2) Results of field surveys

1) First field survey (2011/8/22-2011/08/26)

The results of the field survey are shown below.

Table 2-1: First field survey Date Destination Participants Survey results

08/22 PT. INKA PT. INKA, JGC

・Researched railroad plans in the Sumatra

08/23 Economic Coordination Minister Office

Economic Coordination Minister Office Nippon Koei

・Researched the organization, etc. of Economic Coordination Minister Office ・Grasped the situation of presidential orders

08/23 Melac and Bakauheni JGC ・Surveyed the situation of ferries at Melac and Bakauheni ports

08/24 Space Planning Bureau of Public Project Ministry

Space Planning Bureau of Public Project Ministry Nippon Koei

・ Researched the projects of Public Project Ministry regarding Sunda Strait Bridge ・ Collected the space plans (provincial ordinances) in Banten

08/24 BAPPEDA BANTEN BAPPEDA, Nippon Koei

・Interviewed about the situation of Sunda Strait Bridge ・Collected the space plans in Banten

08/24 Kirin Mion Foods Kirin Mion Foods JGC

・Interviewed about the establishment of Japanese companies in each region

08/24 BAPPEDA LAMPUNG BAPPEDA, JGC

・Interviewed about the situation of presidential orders and development plans around Lampung

08/25 Public Project Ministry (Specialist Ikeda)

Public Project Ministry, Nippon Koei, JGC

・Interviewed Public Project Ministry about the situation of Sunda Strait Bridge

08/25 JICA JICA, JGC

・Interviewed about local information

08/25 Nippon Steel Nippon Steel, JGC

・Interviewed about local information ・Interviewed about Krakatau

08/25 MCI MCI, JGC


08/26 General Road Bureau of Public Project Ministry

Public Project Ministry, Nippon Koei

・Researched the situation of Indonesia’s preparation for Sunda Strait Bridge

08/26 BAPPENAS BAPPENAS, Nippon Koei

・Researched the situation of Indonesia’s preparation for Sunda Strait Bridge

08/26 Oriental Consultants Oriental Consultants, JGC


08/26 Japanese Embassy Japanese Embassy, JGC


08/26 Nippon Koei Nippon Koei, JGC


2) Second field survey (2011/9/21-2011/09/30)


2-4

Table 2-2: Second field survey Date Destination Participants Survey results 09/21 MCI MCI,

Oriental Consultants, JGC ・Interviewed about local information.

09/22 Krakatau Krakatau, Nippon Steel, Oriental Consultants, JGC

・Interviewed about industrial complexes in Krakatau

09/22 BAPPEDA BANTEN BAPPEDA, Oriental Consultants, JGC

・Interviewed about the situation of presidential orders and regional development plans around Banten.

09/23 Economic Coordination Minister Office (Mr. Tulus)

Economic Coordination Minister Office, Oriental Consultants, JGC

・Researched the situation of presidential orders

09/23 JETRO JETRO, Oriental Consultants, JGC

・Interviewed about local information.

09/24 METRO, WAYKAMBAS, KALIANDA

Oriental Consultants, JGC ・Surveyed the development situations of METRO, WAYKAMBAS，and KALIANDA, and infrastructure

09/25 Panjang Port and the southern area of Bandar Lampung

Oriental Consultants, JGC ・Researched the situations of Panjang Port and the southern area of Bandar Lampung

09/26 BAPPEDA LAMPUNG (Mr. Fahrizal et al.)

BAPPEDA LAMPUNG, VPI, Oriental Consultants, JGC

・Interviewed about the situation of presidential orders and regional development plans around Lampung

09/26 Toyota Bio Indonesia Toyota Bio Indonesia, VPI, Oriental Consultants, JGC

・Researched the situation of Japanese companies in the region

09/26 Regional Transport and Traffic Planning Bureau (DINAS Perhubungan)

DINAS Perhubungan, Oriental Consultants

・Surveyed the port development plans in Lampung ・Surveyed the OD investigation

09/26 PELINDO II (Panjang Port) PELINDO II (Panjang Port),Oriental Consultants

・Researched the current situation and development plans of Panjang Port

09/27 PT. SANKYU PT. SANKYU, Oriental Consultants, JGC

・Researched the situation of Japanese companies in the region ・Researched the current situation of distribution in Banten

09/27 PT. ASAHIMASU Asahi-mas in Cilegon ・Researched the situation of Japanese companies in the region

09/27 BAPPENAS (Mr. Bastary) BAPPENAS, VPI, Oriental Consultants, JGC

・Researched the situation of presidential orders

09/27 General Maritime Bureau (DGST)

DGST, Oriental Consultants

・Researched the port development related to Sunda Strait Bridge in Lampung and Banten

09/28 Cilegon, Bojonegara, and Anyer

Oriental Consultants, JGC ・Researched the situations of industrial complexes in Cilegon, and the development of Bojonegara and Anyer

09/28 General Railway Bureau (DGR)

DGR, Oriental Consultants

・Researched the development of Serpong Line

09/29 BAPPEDA BANTEN BAPPEDA BANTEN, Oriental Consultants

・Researched the development related to Sunda Strait Bridge in Banten

2-5

Date Destination Participants Survey results 09/29 Land Transport Association

(Organda) Organda, Oriental Consultants

・Surveyed the current situation of JABODETABEK and the cargo transportation in South Sumatra

09/30 General Land Transport (DGLT)

DGLT, Oriental Consultants

・Researched the development of Sunda Strait Bridge and the ferry between Merak and Bakauheni.

3) Third field survey (2011/11/25-2011/12/02)


Table 2-3: Third field survey Date Destination Participants Survey results 11/25 Public Project Ministry

(Ikeda Specialist) Public Project Ministry, Nippon Steel, Oriental Consultants, JGC

・Researched the situation of development of Sunda Strait Bridge

11/26 Coast reconnaissance around Anyer Beach

Nippon Steel, Oriental Consultants, JGC

・Coast survey around Anyer

11/27 Marine survey with boats Nippon Steel, Oriental Consultants, JGC

・Surveyed the site of Sunda Strait Bridge from the sea

11/30 Road Research Institute Road Research Institute, Oriental Consultants

・Researched Sunda Strait Bridge

12/01 FUGRO (marine geological survey company)

FUGRO, Oriental Consultants

・Researched the assessment situation of Sunda Strait Bridge

12/01 JICA JICA, Oriental Consultants

・Surveyed and reported local information

12/02 Public Project Ministry (Ikeda Specialist)

Oriental Consultants ・Reported the assessment situation and conducted interviews again

4) First field report (2011/12/20-2011/12/21)

The results of the field survey and presentation are shown below.

Table 2-4: First field report Date Destination Participants Survey results 12/20 Public Project Ministry (vice

minister) Public Project Ministry, Ministry of Economy, Trade and Industry, JGC

・The Japanese government conducted presentations to Public Project Ministry

12/21 MCI MCI, JGC

・Interviewed about local information.

2-6

5) Second field report (2012/01/16-2011/01/19)

The results of the final field report are shown below.

Table 2-5：Second field report Date Destination Participants Survey results 01/17 Public Project Ministry (vice

minister) Public Project Ministry, Ministry of Economy, Trade and Industry, JGC

・The Japanese government conducted presentations to Public Project Ministry

01/18 BAPPEDA BANTEN BAPPEDA BANTEN, JGC ・JGC elucidated survey results for BAPPEDA BANTEN.

01/19 BAPPEDA LAMPUNG BAPPEDA LAMPUNG, JGC ・JGC elucidated survey results for BAPPEDA LAMPUNG.

Chapter 3

Justification, Objectives and Technical Feasibility of

the Project


3.1-1

3.1 Overall

3.1.1 Background and Necessity of the Project (1) Background

In recent years, Indonesia has had high economic growth at around 6%, with concentration of the

economy in the Jakarta area, regional imbalance of energy resources and increasing economic

disparity between the capital region and rural areas becoming issues. In order to achieve further

economic growth in the future, it has become more important to use latent potential within the country

and make economic linkages between wider economic regions based on the Indonesia Economic

Development Corridors (IEDC) plan.

The IEDC plan in Indonesia was arranged with support from the Japanese government, and it has been

decided to proceed with the construction of the Sunda Strait Bridge from the Domestic Connectivity

menu of the IEDC. Therefore cooperation and participation in this project is consistent with the

topics of political discussions between Japanese and Indonesian governments up to this point, and

continuing support is not only highly valuable, but also has the chance of providing Japanese

businesses with meaningful and significant business opportunities.

The roads around the industrial areas in Merak and Anyer, where many Japanese businesses operate,

are in poor condition due to heat, torrential rains, heavy vehicle traffic and poor maintenance, with

frequent traffic jams. For Merak harbour, it has become common for freight trucks to have to wait

several days, making improving area infrastructure an urgent issue. Once this project is completed, it

will not only contribute to the growth of existing Japanese businesses currently plagued by unreliable

logistics, but will also encourage new Japanese businesses to expand to areas on both islands around

the bridge.

Considering the situation, the importance of the Sunda Strait Bridge to connect Java and Sumatra has

been pointed out for some time and with the announcement of Pre-feasibility study results in 2009 by

Lampung and Banten provinces which are located on each coast, organizations have been created in

the central government to work towards beginning construction.

With the cost of bridge construction said to require investment of a massive sum of 2 trillion yen, the

cost is not something that can be covered by the Indonesian government and local corporations, so

participation by multiple governments and private companies is a prerequisite. Currently Chinese

companies are showing significant interest in this project, and are aggressively approaching to the

Indonesian side, making it urgent that Japanese businesses and government start appealing their case

as well. Also, due to the difficulty of recovering investment costs from bridge tolls alone, it has been

suggested that the project should be carried out strategically by including regional development in the

3.1-2

Banten DKI Jakarta Jawa BaratOthers in

JawaLampung

Sumatera Selatan

Others in Sumatra

Banten 115,672 83,323 165,649 127,396 492,040 2,415 3,151 7,513 13,079 3,546 508,665 DKI Jakarta 78,819 185,943 280,180 62,352 607,294 1,426 2,705 5,576 9,707 1,896 618,897 Jawa Barat 171,034 263,349 1,446,281 497,641 2,378,305 39,697 8,210 25,540 73,447 13,077 2,464,829

Others in Jawa 90,847 60,590 414,624 3,804,671 4,370,732 569 6,259 14,248 21,076 52,186 4,443,994 456,372 593,205 2,306,734 4,492,060 7,848,371 44,107 20,325 52,877 117,309 70,705 8,036,385

Lampung 17,644 12,275 39,139 32,372 101,430 18,972 22,469 40,155 81,596 3,934 186,960 Sumatera Selatan 2,154 1,757 4,543 2,487 10,941 14,247 34,363 24,208 72,818 928 84,687 Others in Sumatra 28,566 20,297 47,884 50,495 147,242 12,254 20,402 411,205 443,861 20,953 612,056

48,364 34,329 91,566 85,354 259,613 45,473 77,234 475,568 598,275 25,815 883,703 2,292 2,792 10,056 37,508 52,648 2,539 4,977 25,348 32,864 354,329 439,841

507,028 630,326 2,408,356 4,614,922 8,160,632 92,119 102,536 553,793 748,448 450,849 9,359,929

JawaSub-total in Jawa

SumatraSub-total

in SumatraOthers Total

OthersTotal

Sub-total in Sumatra

Sub-total in Jawa

Jawa

Sumatra

Origin / Destination

area.

(2) Interchange between Sumatra Island and Java Island

The current status of interchange between Sumatra Island and Java Island is analysed using the

National Transport OD survey (Asal Tujuan Transportasi Nasional (ATTN) in Indonesian)

conducted by the MOT in 2006. The number of passengers and cargo volume by origin and

destination has been investigated every five years in the survey with the latest survey being

conducted during this study.

1) Cargo

The cargo volume from Sumatra Island to Java Island is approximately 260 million tons per year.

The volume from Java Island to Sumatra Island is approximately 117 million tons per year. The

cargo from Lampung province to West Java province mainly flows through this area and is

approximately 79 million ton per year, which accounts for 20 percent of the cargo volume between

Sumatra Island and Java Island.

Table3.1-1: Cargo Flow between Sumatra Island and Java Island in 2006

Unit: Thousand Tons

( Source: METI Study Team, based on the National Transportation OD Survey in 2006 )

3.1-3

Banten DKI Jakarta Jawa BaratOthers in

JawaLampung

Sumatera Selatan

Others in Sumatra

Banten 22,187 14,604 30,453 23,082 90,326 3,128 2,925 11,662 17,715 3,245 111,286 DKI Jakarta 1,014 178,182 141,415 32,272 352,883 1,114 350 3,158 4,622 3,247 360,752 Jawa Barat 30,453 48,919 262,834 89,364 431,570 7,195 9,334 30,604 47,133 16,049 494,752

Others in Jawa 21,351 11,708 89,655 718,684 841,398 5,835 10,035 47,093 62,963 64,775 969,136 75,005 253,413 524,357 863,402 1,716,177 17,272 22,644 92,517 132,433 87,316 1,935,926

Lampung 3,128 2,114 7,195 5,832 18,269 3,482 4,166 7,329 14,977 1,878 35,124 Sumatera Selatan 2,925 2,368 9,339 9,813 24,445 4,166 10,232 10,562 24,960 4,060 53,465 Others in Sumatra 2,695 2,867 9,243 11,945 26,750 2,336 4,335 27,028 33,699 5,707 66,156

8,748 7,349 25,777 27,590 69,464 9,984 18,733 44,919 73,636 11,645 154,745 1,497 1,060 6,163 22,567 31,287 1,979 2,277 13,276 17,532 109,194 158,013

85,250 261,822 556,297 913,559 1,816,928 29,235 43,654 150,712 223,601 208,155 2,248,684 Total

Total

Jawa

Sub-total in Jawa

Sumatra

Sub-total in SumatraOthers

Origin / DestinationJawa

Sub-total in Jawa

SumatraSub-total

in SumatraOthers

Fig.3.1-1: Cargo Flow between Sumatra Island and Java Island in 2006


2) Passengers

The main passenger flow is the flow between islands. The passengers from Sumatra Island to Java

Island number approximately 70 million persons per year. The number of passengers travelling from

Java Island to Sumatra Island is 132 million persons per year.

Table 3.1-2: Passenger Flow between Sumatra Island and Java Island in 2006

Unit: Thousand Persons


3.1-4

Fig.3.1-2: Passenger flow between Sumatra Island and Java Island in 2006


(3) Merak Bakauheni Ferry Terminal

Present conditions of Meark and Bakauheni Ferry terminal facilities are as shown in Fig.3.1-3. Ferry

operations are conducting with five (5) berths in both terminals of Merak and Bakauheni (partially

under construction) and 33 Ro-Ro ships at present. Table 3.1-3 shows the latest two (2) years traffic

volume between Merak and Bakauheni terminals. Based on the table, it can be read that about 8,000

4-wheel vehicles and 1,400 motor cycles are transported (both directions) by average 74-time trips by

Ro-Ro ships per day in 2010. The current traffic volume of Merak and Bakauheni terminals are

mostly full capacity of the facilities, therefore, improvement of the facilities and/or operations coping

with the expected future traffic demands are most important subject at present. This matter will be

discussed later.

3.1-5

Fig. 3.1-3: Present Conditions of Merak and Bakauheni Ferry Terminals

(Data Source: DGST)

Table 3.1-3: Traffic Volume of Merak and Bakauheni Ferry Terminal (Both Directions)

Trip Number ofShips Passengers 2-Wheel

Vehicle4-WheelVehicle

(time) (units) (person) (unit) (unit)2009 52,614 33 16,298,551 495,638 2,716,9482010 54,339 33 16,384,345 519,417 2,912,205

Data Source: Directorate General Land Transportation by Interview Survey

Year

3.1.2 Studies to determine the Project specifics (1) Interchange around the Sunda Strait

An OD survey on the Merak – Bakauheni ferry passengers was conducted in 1998 (Study of the Long

Term Development Plan for the Ferry Terminals and Routes connecting Sumatra / Java / Bali Islands,

August 2002, Pacific Consultants International). According to the survey, the passengers from Jakarta

and West Java area account for 80 percent of the passengers from Java Island. 90 percent of the

passengers from Sumatra Island come from Lampung province and South Sumatra province. The cars

from Jakarta and the West Java area account for 95–98 percent of the passengers from Java Island.

75–80 percent of the cars from Sumatra Island come from Lampung province and South Sumatra.

Based on the above survey, it is considered that the target demand for the Sunda Strait Bridge is

passengers and cargo between Jakarta DKI, West Java province, Banten province, Lampung province,

3.1-6

Origin / DestinatonLampung, Sumatra

Selatan

Banten, DKI Jakarta(Banten, DKI Jakarta,

Jawa Barat)

Lampung, Sumatra Selatan

22,04610,535

(27,069)

Banten, DKI Jakarta(Banten, DKI Jakarata,

Jawa Barat)

7,517(24,046)

215,987(730,061)

Origin / DestinatonLampung, Sumatra

Selatan

Banten, DKI Jakarta(Banten, DKI Jakarta,

Jawa Barat)

Lampung, Sumatra Selatan

90,05133,830

(77,512)

Banten, DKI Jakarta(Banten, DKI Jakarata,

Jawa Barat)

9,697(57,604)

463,757(2,790,250)

and South Sumatra province. Based on the National Transport OD Survey, the passengers from

Jakarta DKi and Banten province to Lampung province and South Sumatra province are 18 million

persons per year (49 thousand persons per day) and the cargo volume is 44 million tons per year (119

thousand tons per day). If West Java province is included in the Java area, passengers the from Java

area to South Sumatra area will be 51 million persons per year (140 thousand persons per day) and the

cargo volume will be 135 million tons per year (370 thousand tons per day). On the other hand, the

number of passengers using the Merak- Bakauheni ferry are 16 million persons / year as of 2010. The

Merak- Bakauheni ferry is considered to be the main transportation mode between Java Island and

Sumatra Island.

However, there is a good possibility that air passengers and long-trip sea containers will shift to motor

transport since the travel time between Sumatra Island and Java Island would be shortened by using

the Sunda Strait Bridge. Development of the South Sumatra area would also create additional demand

for the Sunda Strait Bridge. On the other hand, the Merak – Bakauheni ferry will also be used after the

construction of the Sunda Strait Bridge and it will continue to be one of the main transport modes to

travel the strait. Therefore, all of the above-mentioned passengers and cargo will not shift to motor

transport using the Sunda Strait Bridge. The number of passengers and volume of cargo flowing

between the Java and South Sumatra areas are shown in following table for reference.

Table 3.1-4: Passenger Flow between Jakarta/West Java Area and South Sumatra Area in 2006

Unit: Thousand Persons

Table 3.1-5: Cargo Flow between Jakarta/West Java Area and South Sumatra Area in 2006

Unit: Thousand Tons


3.1-7

(2) Present condition of port transport

1) Commercial Port

Main ports in the objective area are Panjang Port in Lampung Province, Banten, Ciwandang, Merak

Mass and Bojonegara Ports in Banten Provice. Table 3.1-6 shows cargo volume in the ports in

Lampung and Banten Provices in the year of 2006 and 2007. According to the table, about 18 million

tons in Lampung Province and about 5 million tons in Banten Provice are handled in 2007.

Table 3.1-6: Cargo Handling Volume in Lampung and Banten Provice

(Unit: ton)

Unload Load Total Unload Load Total2006 2,535,792 5,022,810 7,558,602 811,560 4,473,740 5,285,300 12,843,9022007 2,668,089 7,826,116 10,494,205 2,927,188 4,639,659 7,566,847 18,061,0522006 2,588,912 835,994 3,424,906 755,008 24,960 779,968 4,204,8742007 3,015,915 1,386,402 4,402,317 900,145 72,998 973,143 5,375,4602006 2,446,749 5,158,747 7,605,496 941,162 4,581,640 5,522,802 13,128,2982007 2,409,721 5,071,573 7,481,294 1,108,418 4,548,574 5,656,992 13,138,286

Data Source: * Statistical Year Book of Indonesia 2008 & 2009, BPS** Lampung in Figures 2009 & 2010, BPS and BAPPEDA Lampung

Banten Province *

Location Year

Panjang Port**(Lampung

Interisland International Total

Lampung Province *

Cargo volume of Panjang port is also shown in Table 3.3-1, based on this figure, it can be evaluated

that the most of cargoes in Lampung Provice are handled in Panjang Port.

(3) Road and Rail Transport

1) Road and Rail Transport Network

The road and rail transport network in Lampung province and Banten province is shown in

following figure. There are three national roads running through the central, east and west areas of

Lampung province and the South Sumatra railway is used to transport the coal mined at Tanjung

Enim to Tarahan port. Most of the national roads in Lampung province are two-laned. However,

even though the railway is used to transport both passengers and cargo, the track capacity is small

since it’s a non-electrified single track.

In Banten province, the there is a toll road between Jakarta and Merak, national roads around

Pandeglang, and a railway from Jakarta to Merak via Ranglakasbitung. The railway transports

passengers and cargo; however, the number of trains between Rangkasbitung and Merak is few.

3.1-8

Fig.3.1-4: Road and Rail Network in Lampung Province and Banten Province

( Source: METI Study Team, based on materials from both provinces and Jasa Marga )

2) Road and Rail Development Plan

To coordinate with the Sunda Strait Bridge development plan, toll road development plans around

the area have been planned by PU, Lamoung province and Banten province. A part of the toll road

between Bakauheni and Tigger Besar is in the tendering stage.

Fig. 3.1-5: Road and Rail Development Plan in Lampung Province and Banten Province

( Source: METI Study Team, based on materials from both provinces and Jasa Marga )

3.1-9

3.1.3 Project Plan Summary After examining what kind of project would play to Japan’s strengths, while keeping in mind a

progressive construction timeline, projects that create benefits in the short-term will also be

considered in order to help appeal to Indonesia (for instance, a short-term project to improve road and

port infrastructure (larger, faster ferries) in industrial areas as a prelude to the long-term goal of

building the bridge).

Since project costs will be extremely large, project studies will consider both yen loans and using

private-sector resources at the same time.

The projects selected in this study based on local studies and surveys of related institutions are listed

below.

Table 3.1-7: List of projects



Referred in

SSB

Bridge

SSB (*) BSM carried out preliminary study.

Joint development to join Lampung and Banten.

・BAPPENAS ・Economic Coordination Minister Office ・BAPPEDA in Banten and Lampung ・Public Project

Ministry

3.2

Port Port Revamping (*)

Current capacity is mostly full with freight trucks. There is a plan for a 5th berth, but the site is an issue.

Since the current facilities are over capacity, it is vital to improve the current port before the bridge is finished.

3.3 (2)

Lampung

Port

New Port (*) None When building the bridge, jetties will be necessary for aquatic transportation, and creation of a new port is necessary along with turning the fabrication area into an industrial area.

・BAPPEDA in Lampung ・Local

Traffic/Traffic Planning Bureau

・DGST

3.3.2 (2)

Road/ R

ail


There is a project for a toll road (Bakauheni – Lampung). Maintenance of all roads, not just the toll roads, is necessary, and it is important to create a repair plan considering life cycle cost.

・BAPPEDA in Lampung

・Road Bureau of Public Project Ministry ・DGLT

3.4



・BAPPEDA in Lampung ・DGR

3.4

3.1-10



Referred in

Regional developm

ent

Industrial Township

Some exist, but factories are scattered, and local infrastructure such as power, water and roads is weak * Provincial project exists

As part of a provincial project, maintenance of industrial areas exists. This project will develop industrial areas and the surrounding area as industrial townships


-

Industrial City, (Fabrication area) (*)

None When building the bridge, areas for fabrication and storage will be necessary, and a main base will be made on the Lampung side. Progressive development as an industrial area will also be carried out.


3.5.4

O&M Center None For operating and maintaining the bridge, continual monitoring and maintaining the state of the bridge is necessary, and creating an O&M center near the bridge is vital.


3.5.4.4

Airport (Lampung)

Airport with domestic connections available * Provincial project exists

The provincial project involves turning it into an international airport.


-

Airport city None In addition to adding international routes to the Lampung Airport, developing the area around the airport into a city is necessary to encourage airport demand for both people and goods.


3.5.5

Energy

Electricity Available (Provincial expansion project exists)

In addition to existing power generation, there is a project for geothermal energy. Considering the future large increase in demand for power, creating more efficient power facilities and power network is necessary. For efficient use of resources, geothermal and low-grade coal power in particular should be emphasized.

・BAPPEDA in Lampung ・PLN

3.6

Other

Logistics Base None (Provincial project exists)

There is a provincial project to use Terbanggi Basar as a logistics hub. When positioning it, there is a need to consider the surrounding infrastructure (road, rail, airports) and production centers.


-

Water for SSB （Desalination）

None Since water will be necessary for construction of the SSB, facilities will be made by RO and will be used to provide industrial areas in the future.


-

Water Supply Available (River available for industrial uses)

With water supply being vital for industrial areas in Lampung, having a water source for each area is important.


-

Banten

3.1-11



Referred in

Road/ R

ail


Maintenance is necessary for all roads, not just the toll roads, and it is important to create a repair plan considering life cycle cost.

・BAPPEDA in Banten ・Road Bureau

of Public Project Ministry

・DGLT

3.4



・BAPPEDA in Banten ・DGR

3.4

Regional developm

ent

Industrial Complex

Available There are industrial areas in Krakatoa and near Cilegon. However, they haven’t been integrated as complexes (utilities, lending materials), and they are also behind the curve on reduced energy methods. For continual future growth, they should be remade as complexes to operate at maximum efficiency.

・BAPPEDA in Banten ・Krakatoa

-

SMART City / Eco. City

None As part of Jakarta growing as a metropolitan city, a new city plan that is greener and has reduced energy use is vital.

・BAPPEDA in Banten

-

Water front city, Sports city, Maja

None * Provincial project exists

There is a provincial project, but as mentioned above it should be developed as an environmentally city that conserves energy.


-

Other

Water Available (River available for industrial uses)

With water supply being vital for industrial areas, having a water source for each area is important.


-

Agriculture Available (Existing agriculture)

Development of agriculture and food industries is vital not only as the background supporting Jakarta, but also to shift from high-energy to low-energy production.


-

Food Industries None -

Tourism Around Anyer, there are several hotels on international lines

Tourism development taking advantage not just of Anyer, but also proximity to Jakarta is necessary.


-

Tourist Village As part of tourism development, complex development as townships with consideration for regional characteristics is necessary.


-

New Airport None (Project exists)

The necessity of a new airport must be studied along with tourism development.


-

3.1-12

(*)Project whose costs are roughly estimated

Part of the above regional development plans are already finalized by state governments, etc. or in the

process of bidding. Also, it becomes highly probable that initiators appointed based on Presidential

decree（No.86/2011）would discuss the regional development projects of areas surrounding the Sunda

Strait Bridge in their feasibility study and that results would be incorporated into the regional

development planning of Sunda Strait Bridge neighboring areas. In this case, it is highly probable that

the initiators would offset the construction costs of the Sunda Strait Bridge by profits on the sales of

the development right pertaining to the regional project, and it is decided that detailed planning would

be also explored in their feasibility study. At the present stage, therefore, it was excluded from the

targets of financial evaluation, and the current situation and the content of the existing plan were

checked.

3.2-1

3.2 Sunda Strait Bridge Plan

3.2.1 Overview Sunda Strait Bridge Plan is the challenging project for unknown world and it will help not only the

surrounding area but also the whole Indonesia development through making the wide economical

area which spreads from Java Island to Sumatra Island. The Sunda Strait Bridge (shown below SSB)

will be multi-purpose bridge and will carry road as well as railway, electric power,

telecommunication and oil pipes.

On the other hand the SSB is the first build long span suspension bridge, which has so many item to

be overcome for realization. Those are indicated as follow:

Long span

Deep sea foundation

Soft soil geology

The project location is near to the plate boundary earthquake prone area

The tsunami influent area

In addition to the issues mentioned above, the current lack of detailed studies necessary to design the

bridge is also a factor impeding the implementation of the SSB project.

Here this chapter shows the existing F/S of SSB construction and the necessary basic survey item for

the bridge feasibility study and shows the direction for the next step. And furthermore this chapter

shows not only the design study item but also the construction and road management study item for

implementing the life long bridge planning.

Fig.3.2-1: Plan of bridge

( Source: Indonesia Bandung Institute of Road Engineering “2008 report” )

3.2-2

3.2.2 Background and Necessity of the Project (1) Project Scope

The figure 3.2-1 shows the planed routes by IRE (Institute of road engineering) report in 2008 , the

alignment of route is proposed various kinds of way. Now it is not clear to say but the length of the

route will be 27km for strait portion and all together approximately 28 km is the proposed planning

area.

This chapter seizes the SSB project as life cycle of bridge from construction to management as well

as existing study. The Japanese technology can supply almost all of the required demands from

planning, design, construction and maintenance management thus every step of the bridge life

Japanese side can support this project by own experience. Therefore it can be unified the whole tone

of the project steps and can be optimized the project steps by the adapting Japanese technology.

The bridge especially the suspension bridge is the ultimate assemble of technologies, and the range

of the supply of the products is quite wide. Here shows the details.

• The steel products are reinforced bar , thick plate, high strength wire, cast steel stainless

steel, H-shaped steel and galvanized metal, and for Aluminium, Cupper

• Chemical products are Plastic, Rubber, Vinyl, Polyethylene and styrol

• The electronic products are the lighting Illumination LED air conditioning equipment.

• The communication equipment products are bridge monitoring system traffic control

device, transmitting facility and optical fibber.

• Pavement material for road,paintings, sealing and coatings materials for anti-weathering.

Indonesian Government has a target that 90% of the products will be made in Indonesia but it can be

said that it is the challenging target from the point of view on the high technology at suspension

bridge. Therefore Japan can contribute on the technical assistance. At the operation stage it will be

provided from Japan various kinds of products for renewal and exchange, so the future continuous

demands will be necessary.

(2) Project Background

1) President Soehart Era

Sunda Straight Bridge plan started from 1980’s in Indonesia. The priority on Development policy

leaded the economy in Indonesia jumped up and the traffic volume between the Java and Sumatra

had extremely increased, the ferry boat capacity was doubled or tripled by ferry terminal renovation

assisted by Japan. And also Japanese experts had been sent not only tunnel as well as bridge. One

tunnel expert from Railway construction Authority to BPPT 4 years and 5 experts from

Honshu-Shikoku Bridge Authority to Ministry of Public Works 10 years were sent through JICA.

The intension of connecting two Islands had become small because the size of bridge and difficulty

3.2-3

of construction and budget. While BPPT developed Batam Island and Bintan Island and constructed

bridge between two Islands. That development delivered Resort hotels and supply water and

electricity to Singapore. But economy crisis hit Indonesia and President Soehart and Dr. Habibi step

down then the budget for public sector came down.

JICA and BPPT jointly held a seminar on tunnelling technology in 1991 in Jakarta. The main point

of that seminar was subway plan in Jakarta, the Seikan tunnel was introduced for Sunda strait plan. It

was clear that the tunnel in Indonesia was difficult because the operation of tunnel needs stable

electric power supply for drainage, evacuation of air and tunnel lightings. The planned area is near to

the huge volcano and capability of faults and the Tunami prone location, those matters leads the

conclusion of SSB difficult.

2) President Yudoyono and after

Republic of Indonesia have been developed and jump up from developing country to middle class

country since 10 years has passed from Asia economic crisis. At 2009 the Suramado Bridge opened

for traffic as the first sea crossing long span bridge. This matter have droved the intension of bridge

between Jawa and Sumatra became reality. Thus President Yudoyono rises up the plan of Sunda

Strait Bridge for his remarkable result. His plan is based on the method of PPP as many public

infrastructure development used in the world. Besides the bridge plan have been also raised up from

Banten and Lampung provinces both are foot points for the bridge. The president Yudoyono

planed to develop economy of whole Indonesia and planed to harmonize the ultra concentrated Java

and Sumatra having rooms for development through connecting two Islands by SSB. The

Transmigration policy has been adopted for long time, but it was not effective because so many

people returned to Java island not to stay in Sumatra Island. It is necessary to reduce the population

concentration of Java Island becoming 200 million. The bridge plan also included not only traffic

infrastructure as road and railway but also telecommunications and energy pipes. The bridge will

serve as transportation and utilization for reserved resources and energy in Sumatra.

(3) Present situation

1) Situation of Indonesia

The preliminary study has been conducted from 2009, then the basic survey has been planed, but

now basic data have not yet been obtained because the basic survey shall be conducted by

consortium. It is known that the amount of survey will be more than 15 billion yen which will be

earned by PPP frame. The survey has not yet started now because there is no sponsor for whole

project. At 2010 Japan conducted seminars for Sunda Strait Bridge by Japanese experts through

these seminars Indonesia staff recognized the necessity of survey and Banten and Lampung

provinces are responsible for the natural conditions. In spite of the situation there have not been

responded from provinces. And the Wiratman and associates indicated the Geological structure

based on the assumption from the Topology. The assumption for the volcanic ash layer bearing

3.2-4

capacity is much higher than usual as sand layer strength which means the assumption is risky side.

The proposed bridge design includes a 150 m deep substructure, significantly deeper than that of any

existing bridge. That means the bridge plan depends on the future technology development and it is

necessary to gain data of natural condition. And it is necessary to study the structure of plate

boundary type earthquake and Tsunami study and near by faults earthquake study will be necessary

for the structure estimation. According to the latest hearing from FUGRO (Off shore Investigation

Company) there is only one Geological survey which was surveyed by BPPT in 1991.

2) Approaches of Foreign country

There are so many approaches from foreign firms according to the documents which were collected

at this time. Especially China, he afforded system for implementation of loans by Chinese syndicate

from Indonesian booklet. However it will not turn realistic unless f/s indicates plus result or whole

scale of project estimation. There is no new technical suggestion from their presentation. There is

some gap between China or Korea and European countries, but it will be better to watch this

situation simultaneously. Table3.2-1 shows the ranking of span length of suspension bridges in the

world. So many suspension bridges were located in China.

3.2-5

Table3.2-1: Suspension bridge ranking

Japanese private companies do the bridge projects recently in the world such as Izmit bridge in

Turkey and Messina bridge in Italy. It will be good for Indonesia to lead the bridge planning based

on long span foreseen, and that leads the results of sustainable operation for example by using high

quality Japanese products secure longer quality and lead the reduction of maintenance cost with

Japanese contribution in SSB project plan.

If SSB were to be built without the participation of Japanese companies, it will become more

difficult for Japanese companies to participate in future long bridge projects in the Asian region.

Rank Bridge Maxium span length (m) Country Completed year

South Korea 2012(during construction) (will be completed)

China 2013(during construction) (will be completed)

Norway 2013(during construction) (will be completed)

China 2012(during construction) (will be completed)

South Korea 2015(during construction) (will be completed)

20 1090 Turkey 1988Fatih Sultan Mehmet(Second Bosporus)

19 1100 Japan 1988Minami Bisan-seto

18 1108 China 2008Huangpu Zhujiang

America 1957

17 1150

Mackinac

Ulsan Harbor Bridge

15 1176

16 1158

Aizhai

14 1210 Sweden 1997Hoga Kusten

13 1280 China 2007Yangluo Yangtze River

America 1964

12 1280 America 1937

Verrazano-Narrows

Golden Gate

10 1310

11 1298

Hardanger

9 1377 China 1997Tsing Ma

8 1385 China 1999Jiangyin Yangtze River

7 1410 United Kingdom 1981Humber

China 2005

6 1418

Runyang Yangtze River Highway

Nanjing No.4 Yangtze River

4 1545

5 1490

Gwangyang

3 1624 South Korea 1998Great Belt East

2 1650 China 2009Zhoushan Xihoumen

1 1991 Japan 1998Akashi-Kaikyo

3.2-6

(4) Effectiveness and influence of this project

The area of Sunda strait will be developed a new port area for bridge construction and a new factory

for bridge construction, the area will be established as a new factory combination. And after

construction, maintenance operation needs a employment and demands for bridge facility. After

the opening of bridge there should be a good connection between Java and Sumatra. The capacity

of road is much higher than that of ferry. It will be possible to expand the Jakarta metropolitan area

to Sumatra island.

For the point of influence to Japan it will be quite difficult to supply high quality products used in

bridge construction without Japanese firms. It is difficult to procure advanced materials such as high

tensile strength wire, stainless steel fabrication, and complicated cast steel, high quality treatment

machinery without Japanese companies. In case of Japanese products are used, the possibility of

adopting standards and criteria will be determined by Japanese standard like JIS. At the time of

renewal it will be possible to supply by Japanese products.

And it will be possible to use the Japanese products for renewal or renovation. If the control system

will be many in Japanese, it is necessary to have a quality control and single assemble system. If

the system is assembled by various parts from many countries, it will be very difficult to make

information network.

(5) Similar sample of area development by bridge

Honshu-Shikoku bridge case is described as sample of area development by bridge as hereinafter.

At the beginning, the impact of bridge connecting between two area is predicted as travelling time

reduction, merchandise area development, change of industrial structure.The area development and

bridge connection are collaboration of impact to the isolated area. Those are samples of results by

bridges. Description is given from,the aspects of following 6 factors.

1) Traffic network

2) Logistic development

3) Industrial development

4) Retail sales center

5) Tourism

6) Agriculture and Fishery

1) Traffic network

(i) Road network

Only Chugoku highway was located far from Setouchi area which connected Kobe via Hirosima

to Yamaguchi before Setoohashi opening. Then followed Sanyo, Okayama, Yonago, Takamatsu,

Matuyama, Tokushima, highways were opened for making road network. Finally those roads

consisted of Radar network and connecting Nihonkai to Pacific ocean by Kochi highway in north

3.2-7

to south direction.

(ii) Railway

Also railway net work was closed by Seto bridges which has railway to national railway network.

This route made link to Shikoku to Chugoku as a daily travel to school or office and this means

that the residential area enlarged to Shikoku.

(iii) Aviation

Every Prefecture has its own airport in Shikoku and these airports are connected to the highway

network.

(iv) Ferry

Before the opening of bridge the ferry boat played the roll of connection of islands. The

beginning of bridge opening the ferry service had been existed, but the connect ability of road

network and toll fee reduction made the ferry closed. Therefore for the Sunda Straits Bridge

Project, there is a need to take effective acition such as clarifying objectives and the like through

discussion with government representatives, as countermeasure as described in 3.3. The

connectivity of bus service from Shikoku has been well prepared and it has been convenient for

passengers to Kansai area. The transfer to railway station has been connected in a minute and it

is sufficient for network connecting.

2) Logistics development

The private sector initiated the development of logistics. As a result network hubs of logistics have

been located at the Honshu island portion and the delivery center of newspapers have been set at

the Shikoku area.

3) Industrial development

The industrial development in Setoichi area had been implemented before bridge opening, the

manufacturing items are heavy or chemical industries. The after opening of bridge, the most

suitable industry is transport or light weight products company but these were not located. It is a

common sense in the nation wide that the special companies belonging to the local history or

heritage have been survived. Such as high quality towel in Imabari, hand made glove in Nagao

Kagawa, high performance micro motor or air back facility in Kagawa, blue ray Diode in

Tokushima, they are world wide top sales companies.

4) Retail sales center

Retail sales shopping center are located suburban area as nation wide intensity so shopping arcade

at near station became unpopular. Those shopping center compete each other from both side of

the Seto Inland sea.

3.2-8

5) Tourism

The impact from bridge opening for tourism could not have long life, but local products which

have identification characteristics developed became popular. And it helps area development.

Such as well known Sanuki Udon which is made of special flour in Kagawa is one of the basic local

material then it became nation wide product which is not depended on short time boom.

6) Agriculture and Fishery

The added value for products of Agriculture and fishery can be raised by short cut of transport time

by bridge with cooperation of logistics. The fresh delivery of products such as Awaodri name of

chicken, the vegitables in Awaji island, the green pepper of Kochi, live delivery of fresh sea bath in

Uwajima those are established the fame in Kansai area.

Those results are proved by comparison between traffic volumes of before and after bridge opening

which are 1.7 times of passenger and 1.5 times of cargo.

There were some out of prediction matter which are industrial structure changed from heavy and

chemical industry to high performance manufacture and change of shopping district from station

arcade to suburban center, but total benefit for whole area and total sale or products raised, it is clear to

see the contribution of the Seto inland sea area.

(6) Comparisons with Other Options

The connection of tunnelling is one of the alternative methods and held the seminar as mentioned in

(2)-1) but the emotion of the tunnel has not yet arisen. The capability of using tunnel option is low

considering the maintenance, electronic fee and the disaster prevention.

Therefore at the point of maintenance stage there will be electric facility renewal such as pumping

station, evacuation system and lightings. If any problems should occur with the electrical supply, it

would increase the risks from water entering the tunnel, either through leaking or rainwater, which

could be an issue when adapting the tunnel to Indonesia. For the viewpoint of disaster prevention

of fire in the tunnel such as Simplon tunnel in Alps and Dover tunnel in English strait, it can be said

that it will be impossible to adapt the tunnel in Indonesia.

Here shows the comparison study of tunnel and bridge. The white line shows the bridge option and

yellow line shows the tunnel option.

3.2-9

Fig.3.2-2: Comparison of Plans

Table3.2-2: Comparison of Tunnel and Bridge

Tunnel Bridge

(+) (-) (+) (-)

• Low cost (1/5

Bridge)

• 58 km from

Krakatau

• Loco technology

in the future may

expand the

capacity (shuttle

may be

improved)

• B/C Ratio 1,56-2,95

• Longer distance (33

km)

• Under the sea

surface, no view

• Sensitive of

sabotage

• Vehicle waits the

Train, longer travel

time (30-45min)

• Limited capacity for

traffic demand.

• Electricity Train

only for bridging/

passing

• B/C Rasio 3,22-3,40

• Shorter distance

(27,9 – 29,2 km)

• Over the sea, good

view.

• May build Rest Area

at P Sangiang/

Tempurung

• Good safety

• Vehicle can driving

into directly

• Train can running

into directly

• Shows land/sea mark

• High cost.

• Disturb “Natural

Conservation “at

P.Sanghiang /

P.Tempurung

• Meramang fault at

Banten (Route-2)

• 50 – 56 Km from

Krakatau

• Pylon height

460-520 m fsl, may

be crushed by

plane.

Rute-1(Balitbang)

Rute-2 (Wiratman)

RuteTerowongan

(Sindur)

SuspensionBox GirderI GirderCable Stayed

Rute-1(Balitbang)

Rute-2 (Wiratman)

RuteTerowongan

(Sindur)


Rute-1(Balitbang)

Rute-2 (Wiratman)

RuteTerowongan

(Sindur)


3.2-10

3.2.3 Studies to determine the Project specifics (1) Demand Forecasting

The estimation of traffic volume at the SSB bridge portion shows fig.3.2-3 done by the Ministry of

Public Works. Their estimation of traffic is maximum 180,000 per day. Usually the maximum

traffic volume is based on the one lane capacity as 30,000 per day thus their estimation will be

calculated as 6 lanes times 30,000 equals 180,000 per day. However this figure is based on the flow

of traffic, in case of toll road the traffic volume will be governed by toll gate capacity. Usually the

capacity of one booth is maximum 8,000 per day, the toll gate space will be limited maximum 10 to 12,

so the realistic traffic volume should be 100,000 per day.

Fig.3.2-3: Estimation of traffic volume

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

180,000

200,000

2000 2020 2040 2060 2080 2100 2120

Tra

ffic Volume

(Vehi

cle/D

ay)

Year

Troffic Volume Prediction

Traffic Volume

( Source: Ministry of Public Works )

(2) Understanding and Analyzing Problems

It is not realistic to payback construction cost by only toll fee according to the sample of

Honshu-Shikoku bridges. The government support for construction cost and combination of

surrounding area development are necessary. The item for future study to realize the bridge plan

are shown at the followings.

• Significant decrease in the cost of bridge construction

• Government support loan for bridge construction

• To reduce the interest rates of loan for the bridge construction

3.2-11

• Using profits from local development projects to supplement payments for bridge

construction costs

(3) Examination of Technical Methods

Japanese advantage for construction of steel and concrete structure is technology for reduction of

construction term, for example sitting caison method and anti-desegraded in water concrete and

prefabricated tower erection and cable erection is good for erection. Japan has painting system of

durable paint and enlengthened painting method for repaint cycle. And at operation stage Japan has

anti-corrosion system for cable and tower and girder by dehumidity equipments.

3.2.4 Project Plan Summary (1) Basic Policy for Determining Project Specifics

From above mentioned item here it will be suggested that the toll fee decision rights will belong to

the consortium and toll fee table system is governed by consortium by law is important.

And additional suggesting item will be as follow:

• measures for shortening construction term

• avoiding low quality products which will be costful in the future

• establishing cargodistribution system for easiness of procurement of exchanging products

• to secure the equivarent traffic volume for payback the establishment of network conecting.

The traffuc jam leads decrease of traffic volime.

(2) Design Concept/ Specifications for Applicable Facilities

The existing Indonesian planning design is suitable for existing basic data. However the possibility

of changing by basic Geological foundation data is high and that will lead the significant change of

structure type. It is necessary to collect the basic foundation data in a hurry, but it will cost very high.

It is impossible the private sector would be willing to invest that much into studies.

(3) The contents of proposed project (site and project budget)

This project is a long span project from survey, design, construction to operation that means more than

100 years long. The cost of operation will be double of construction cost that leads the sustainable

management for 100 years and good performance for traffic as planned increased traffic volume in

future. The project volume should be more than several trillion yen. It will be better to contribute

the operation by Japanese experience; the maintenance level of this bridge will be far high from

Indonesian maintenance performance.

(4) Issues and Solutions when proposed Technology and System are adapted

There are surveys for design, construction and operation those are leaded to the cost estimation of life

cycle. At this time there is no concern about this area. It is common to do this kind of basic survey

3.2-12

which has not yet decided earned by governmental budget. This is the main reason for stacking this

project because this project has been omitted this basic survey. The suggesting items to survey are as

follows:

1) Necessary survey for design criteria

Substructure:

• Geology in whole route (bearing capacity, Sonic Velocity, rank of soil)

• Faults distribution

• Tidal current

• Wave height

• Plate boundary type earthquake and The Tunami

Superstructure:

• Wind (direction velocity, distribution, horizontal and vertical)

• Temperature (average Max Mini day change season change)

• Live load (traffic volume/axel load)

2) Necessary survey for construction (workable ratio)

• Wind (10m/s over)

• Rain fall (2mm/hr)

• Tidal current (2KNT above)

• Wave height (1m 1/3 equivalent wave height)

3) Necessary survey for operation (workable ratio)

• Wind (25m/S over)

• rain fall (30mm/hr）

• salt contamination (steel paint induce rust, concrete; salt penetration-carbonize-reinforce

bar-rust)

• Humidity (cable water leak-rust; dehumidification)

• Ultra Violet (paint resin-UV sensible-plastic-)

Above mentioned survey spread many items and times to search and it will need huge data base.

The most important survey is off-shore boring for determination of horizontal alignment and bridge

type. The off-shore boring needs a sea platform and that means mobilization of platform and a

boring cost. 30km long this bridge needs several boring data and it will cost several billion yen. It

cannot start this bridge because there is no boring data.

The development of paint using environmental friendly and durable materials is also important to

reduce maintenance. The Sunda special paint shall be consider non VOD and durable for tropical

weather which means strong ultra-violet and high temperature and gusty wind and bird

contamination. The durability test should be conducted by long term weathering test at site. This

3.2-13

test should be conducted for stainless steel, aluminium, galvanized material, sealing material,

covering seal, rubber raping, PTFE material, in the first stage of survey. These tests should be

required large test area. And it is important for measuring salt contamination and ultra-violet at

site.

According to the hearing survey about undersea - investigation at this time, undersea – investigation of

Izmit bridge costs about 1.8 billion yen. However, the scale of Izmit bridge is different from

SSB.Accordingly,for SSB case, considering the number of cable suspension bridge and overall length,

at least 4 billion yen.Fortunately, home-port of investigation ship is Singapore port. Therefore it is not

required huge cost of shipping double. Even though undersea – investigation expense is still high, this

is expected to be an obstacle of implementation of SSB project.

(5) Movement in Indonesia

There was a seminar held at Ministry of Public works in September 13, many foreign firms made

presentations. The Wiratman and Associates which is belonging to BSM Artagraha group presented

pre-feasibility study. In their presentation they indicated the Geological condition and bearing

strength of bed layer which is really attractive for us. And they made many pages for wind resistance

evaluation and seismic analysis following the last year presentation which contained natural

frequency of bridge analysis and they wanted to appeal their results of study.

(6) Conclusion

This time the team introduced necessary survey items and survey points. We can indicate future

development method towards Indonesian side. It was necessary to be recognized the survey study

and show the ability of Japanese technology. The team can show necessity of natural condition data

not only the design and construction but also the operation as it is said the life cycle condition for the

Indonesian side and it might be help for their intension of survey and it might be some help for the

bridge operation in Indonesia.

3.2-14

3.3-1

3.3 Port

3.3.1 Back ground and Necessity of the Project (1) Commercial Port 1) Development Plan of Commercial Ports In Sumatra island side, port development plan of Panjang Port has been approved by the Minister of Transport (KM 36, 2006), and the development is under process by PT. PELINDO which is a company currently operating the Panjang Port. On the other hand, there are Banten, Merak Mas, Bojonegara and other ports in Jawa island side. Merak Mas port was developed for the exclusive use for a private company, however, since cargo handling volume is small, therefore, the facilities were utilized for commercial purpose in recent years. The Bojonegara port was developed by the master plan approved by minister of transport (KM67, 2005), and berth for container handling was constructed, however, further development is not proceed. The reasons could not be clarified by the interview survey. 2) Development Plan of Panjang Port Master plan study was conducted by the Indonesian consultant in2004, and the master plan was approved by the Minister of Transport in 2006. The port development is under process based on the master plan. Development target years are set up at 2010 (short term), 2015 (medium term) and 2030 (long term), and cargo volume of each target years are forecasted in the master plan study. The forecasted cargo volume is as shown in Table 3.3-1. In this table, actual cargo volume in 2004 when the master plan study was conducted and the volume in 2009 which is obtained in this study are also presented. Total cargo volume in 2010 which is a target year of short term is forecasted 15.5 million tons compare with the actual cargo volume in 2004 was 12.5 million tons. Against this, actual total cargo volume in2009 was 14.5 million tons. In addition to this, actual data in 2011 which was provided by PT. PELINDO Panjang Branch, total cargo volume is 15,505,687 tons, container handling is 91,943 boxes, 2,894 ship calls and total ship tonnage is 18,177,150 gross tons. According to these figures, it can be said that the actual cargo volume is slightly lower than the forecasted however, forecasted cargo volume are mostly right at present.

3.3-2

Table 3.3-1: Forecasted Cargo Volume of Panjang Port by Master Plan Study

20041) 20092) 2010 2015 2030Call 2,429 2,577 3,093 3,687 6,249GRT 21,613,875 15,295,742 26,360,291 31,407,387 53,238,246

Import tons 678,622 1,461,333 855,705 1,038,097 1,853,440Export tons 4,048,853 5,282,313 5,173,542 6,346,018 11,712,275Total tons 4,727,475 6,743,646 6,029,247 7,384,115 13,565,715

Unloading tons 2,214,995 2,783,783 2,737,031 3,264,893 5,541,616Loading tons 5,626,331 5,158,670 5,646,331 7,824,194 12,207,603

Total tons 7,841,326 7,942,453 8,383,362 11,089,087 17,749,219tons 12,568,801 14,686,099 15,512,221 * 18,473,202 31,314,934

Data Source: 1) Rencana Induk Pelabuhan Panjang Propinsi Lampung (Attachement of KM 32, 2006), DGST2) Lampung in Figures 2010, BPS and BAPPEDA Lampung

Note: * Cargo volume in 2010 may have some error. The figures are based on the original data source.

Total

Cargo Volume

Prediction in 2006 M/P1)Actual

International

Domestic

Ship Call

UnitItem

20041) 20092) 2010 2015 2030tons 455,172 N/A 599,935 755,171 1,506,148tons 1,908,141 N/A 2,255,950 2,593,753 3,942,087tons 1,677,911 N/A 2,060,191 2,444,497 4,083,531tons 7,519,733 N/A 9,183,739 10,839,065 17,708,732tons 1,027,844 7,942,453 1,412,406 1,840,715 4,074,436tons 12,588,801 14,686,099 15,512,221 18,473,201 31,314,934Box 76,826 N/A 110,578 151,036 272,411

TEU's 85,130 N/A 127,164 173,691 313,273Data Source: 1) Rencana Induk Pelabuhan Panjang Propinsi Lampung (Attachement of KM 32, 2006), DGST

2) Lampung in Figures 2010, BPS and BAPPEDA Lampung

Item Unit Actual Prediction in 2006 M/P1)

Container Cargo

General CargoBag Cargo

Luquid BulkDry Bulk

ContainerTotal

Cargo Volume

Port Development plan based on the master plan is as shown in Fig. 3.3-1. Table 3.3-2 shows a list of the planed development facilities by the master plan. According to these information, the forecasted cargo volume in 2030 is double at present and 1,300m length general berth constructions are planned in addition to the existing 1,522m berth.

Fig. 3.3-1: Panjang Port Master Plan

T E L U K L A M P U N G

9.394.000 9.394.500 9.395.000 9.395.500 9.396.000 9.396.500

CV. S UT

OMO

534.000534.500

535.000535.500

536.000

534.000534.500

535.000535.500

536.000

PARKIRLAP.

Y os S udarso

PT. DAYA SAKTI

O g a n

Tel uk Semangka II

Tanjung Pura III

Teluk Semangka

(PT . INDO LAM PUNG)

Way Panjang

B a h a r i

POS III

PT. AND

A HA

NESA

CPO ( P TPN VII )

GUDANG

CV. FAJAR

P T.DJA

TI

S u m a t e r a

P T.MA SK

ITA

J a w a

S TAS IUN RADIOP ANT AI

Tg. Pura II

Gg. M. Nurul Yaqin

P A S A R

GD AP I

B MG

BT. KAYA

Tanjung Pura

Tanjung Pura 1

K AR AN TINA

Dewi

P ER TA-

P T. GUN UNG MADU

GD.006

KTR. K

PINL GL

GUDANG KPI

ADM IRALL INE

GUDA

NG

PMK

WOR K SHOP

PT.SAMIN

KES.PEL

KP3 GUDANGA LAT B/M

P OS

POS

GD.002

( PERTAMIN A )

GUDANG

001

DER MAGA BGD.005

LAMA

P EL INDO

GD.004

DERMAGA

A

DERMAGA C

K a l

i m a

n t a n

Y o s S u d a r s

oS u m a t e

r a

Teluk Lampung

Nurul Iman

Sumbe r

POS II

BEA

GUDANG

007 P LANTAT ION

P T. GUNUNG MADU

PELINDO IIKANTOR BARU

BNI 1946

C F S

POS

DIAMETER = 420 M

DERM

A GA D

I

K OLAM PUTAR

LAP ANGA N PE NUMP UKAN DERMA

GA D

II

T e l u k A m b o n

Yos S udarsoLAP ANGA N PE NUMP UK AN PETIKEMAS

D E R M A G A P E T I K E M A S

P ANCA M ITRA

G UG US AN KARANG TERE NDAM

- 10

0

J E T T Y P E R T A M I N A

GUDANG

A SPA L C

AIR

(PT.RAB

ANA A

SPALIN

DO)

GUDANG

- 10

- 12

- 10

- 13

KOLAM PUTARDIAMETER = 500 M

( R

E K

L A M

A S

I )

SionalB AT AS DLKR PE LABUHAN

CV. BUMI WARAS

Kampung Um

bul Jambu

PUSKESPEL

RAMBU SUAR

S EME N B ATURAJA

BDN

S DN P IDADA

Soekarno - Hatta

T e l u k T o m i n i

S oekar no - Hatta

Kel. Panjang UtaraKam

pung Pidada II

- 12

- 12

- 1

- 12

Perumahan

PJKA

S e l a t Selat Gaspar II

Se l at Gaspar I

S el at Mal aka ISel at M

al ak II

S elat M al aka III

S el at M al aka IV

B aruna Jaya

Selat Sunda

YAYASANDHARM

A PHALA

Gang Kerinci

BATAS DLKR PEL ABUHAN

Soekar no Hatta

S oekarno - Hatta

G a s p a r

S u m a t e r a

P ETIK EMAS

CFS

POS I

CUKAI

E TA NOL

A DPEL

TELKOMSEL

Kom

plek Yuka

P E R T

A M I N

A

Terminal Bus

Lapangan Sepak Bola

D E R M A G A P T. I S A B

CPO ( P

T Si

nar Ja

ya In

ti)

E MKL

REP AIR CONT AINER

WORK

SHOP

TPK

PT. D

L

GD.003

N IAN

T1

T2

T3T4

T5

T6

T7

T8

T9T10

T11

T12

T13

T14

T15T14a

T17c

9.397.000

9.394.000 9.394.500 9.395.000 9.395.500 9.396.000 9.396.500 9.397.0009.393.500

9.393.500

B BM

(TET ES TEBU)

Daerah P eti Kemas

Areal P enunjang Terminal

Areal P erkantoran

Areal P emukiman

Term inal Konvensional

Daerah C urah Cair

Ruang Terbuka Hijau

KODE : SUMBER JUMLAH LEMBAR

DIRENCANAKANTANGGAL

DIGAMBARTANGGAL

SKALA

PETA ORIENTASI

LOKASI :

LAMPIRAN SURAT NO.DARI SURAT KEPUTUSANMENTERI PERHUBUNGANNOMORTANGGALDISAHKAN DITANGGAL

::: JAKARTA:

DEPARTEMEN PERHUBUNGAN

DISETUJUITANGGAL

NAMA GAMBAR

PELABUHAN PANJANG TAHUN 2030

::::::

: NOT TO SCALE

1 20 3 4 5 6 7 8 9

1000 200 300 400 5 00 M

S

T

B

U

PANJANG, BANDAR LAMPUNG

RENCANA TATA GUNA LAHAN DARATAN

RECEP

TOIN F

ACILIT

IES

R ENCA

NA P EN

GEMBAN

GAN T

ANGKI T

IMBUN

C URAH

C AIR

( Source: Rencana Induk Pelabuhan Panjnag Propinsi Lampung, KM 32, 2006), DGST )

3.3-3

Table 3.3-2: List of Planned Facilities to be developed by the Master Plan

Short Term Mideum Term Long Term2004 1) 2012 2) (2005 - 2010) (2011 - 2015) (2016 - 2030)

Conventional TerminalBerth m 1,318 1,522 300 (L) x 30 (W) 250 (L) x 30 (W) 750 (L) x 30 (W)Whrehouse unit 7 7 1 1 2

sq.m 12,582 11,680 6,000 6,000 12,000Road and Parking sq.m 24,793 6,000 30,000 25,000 75,000Equipment

Crane unit 2 5 1 1 2Forklift unit 4 3 2 2 4

Utilities (Electric/Water Supply) Set 1 1 1Container Terminal (Petikemas)

Berth m 400 400 - - 300 (L) x 40 (W)CFS m2 7,200 6,000 - - 6,000m2 1 unitCY m2 75,000 75,000 2,000 7,500Road and Parking m2 2,000 - -Equipment

Container Crane Unit 2 3 - 1 1TT / RTG Unit 5 5 - 2 5Top Loader / Side Loader Unit 3 2 - 2 5Forklift Unit 10 3 - 4 10Head Truch / Truck Unit 15 10 - 4 10

Utilities (Electric/Water Supply) Set - 1 1Wharehouse and other buildings Unit 1 1

Liquid Bulk TerminalJetty unit 1Tank Ha

OthersPilot Boat unit 3 3 1 1 3Tug Boat unit 3 6 1 1 3

Data Source: 1) Rencana Induk Pelabuhan Panjang Propinsi Lampung (Attachement of KM 32, 2006), DGST2) Port of Panjang, PT. Pelindo II, Panjunag Branch

DescriptionsDevelopment Plan 1)

ConditionsExisting Conditions

Unit

3) Coping with the Traffic Demand during the Bridge Construction For the Sunda bridge construction, temporary construction yard for bridge foundation and girder segments construction and/or fabrication, and ship berthing and cargo loading/unloading facilities for handling and forwarding of such segments to transport to the construction/installation sites are necessary. If the bridge construction started, not only the cargo demand for construction materials and equipment but also consumer goods for construction labors, for example, which may induced additional demands by probable ripple effect of the economy due to the bridge construction. Among these cargo demands, especially for handling the construction materials and equipment is proposed through new berth not through the existing Panjang Port. Because the berthing facilities for the bridge construction work shall be constructed to handle the afore said bridge segments and it will be advantage if this new berth will be utilized for the port facilities for Industrial Estate which is proposed at north-east coast of Bakauheni. The reasons are as follows: a. In the master plan of Panjang Port, cargo handing demand due to Sunda Bridge Construction may not included and not considered. b. Time and period of development of Panjang Port according to the master plan may be different with the increased period and time of cargo demand due to the bridge construction, therefore, there are some possibility that the cargo handling capacity of Panjang Port may not enough against the cargo demand during the bridge construction period. c. Considering to the road conditions, transportation from existing Panjang Port to the bridge construction site may be difficult since the bridge segments which are necessary to construct/fabricate and to transport are large sizes. If the transport is possible, however,

3.3-4

transportation costs are definitely necessary, therefore, to establish a base station for construction/fabrication and inbound/outbound near the construction site has an advantage. d. Temporary construction/fabrication yard and berthing facilities are surely necessary for the bridge construction. Therefore, if these facilities can be utilized as the permanent facilities after the bridge construction, investment for such facilities constructions will be effective and the facilities will contribute for the regional development. In this stand-point, it is highly recommended to the yard and berthing facilities are utilized for the facilities of industrial estate. (2) Ferry Terminal (Merak and Bakauheni) 1) Demand Forecasting In the existing study conducted by JTCA1 (hereinafter called “the JTCA Study”), traffic volume in Passenger Car Unit (PCU) are forecasted as shown in Table 3.3-3 and Fig. 3.3-2.

Table3.3-3: Traffic Volume Forecast in Passenger Car Unit (PCU) (one-direction)

(Based on the Actual Traffic Volume between Merak and Bakauheni from 1998 to 2009)

(Data Source: The JTCA Study)

YearActual

(Vehicle UnitCounted)

Conversion(PCU) andForecast

Yearly GrowthRate

1998 1,021,976 1,430,7661999 874,227 1,223,918 -14.5%2000 1,136,071 1,590,499 30.0%2001 1,112,177 1,557,048 -2.1%2002 1,111,875 1,556,625 0.0%2003 1,159,383 1,623,136 4.3%2004 1,253,273 1,754,582 8.1%2005 1,327,427 1,858,398 5.9%2006 1,299,711 1,819,595 -2.1%2007 1,427,410 1,998,374 9.8%2008 1,660,842 2,325,179 16.4%2009 1,649,179 2,308,851 -0.7%2010 2,424,293 5.0%2011 2,545,508 5.0%2012 2,672,783 5.0%2013 2,806,422 5.0%2014 2,946,743 5.0%2015 3,094,081 5.0%2020 3,855,787 4.5%2025 4,691,155 4.0%2030 5,571,620 3.5%

Average in12 years1998 - 2009:4.5 %

1 Project Formation Study on Merak – Bakauheni Ferry Terminals Expansion Plan, March 2010, JTCA

3.3-5

Fig.3.3-2: Traffic Volume Forecast between Merak and Bakauheni (one-direction)

Vehicles Traffic; Actual Record and ForecastMerak to Bakauheni

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

1995 2000 2005 2010 2015 2020 2025 2030 2035 2040Year

Vehi

cles

Tra

ffic

Actual (Vehicle Unit)

Conversion (PCU) andForecast

( Data Source: The JTCA Study )

In the JTCA study, traffic capacity was also evaluated. According to the study, average vehicle transport capacity per one trip of Ro-Ro vessel is evaluated 88.1 PCU based on the actual traffic conditions in 2009. The annual traffic capacity is estimated 2,575,520 PCU by 80 trips/day which is estimated under the operations with existing 33 Ro-Ro ships and four (4) berths. The capacity is capable of the 2012 year demand. The study is concluded if the fifth berth which is under constructing will be utilized, the traffic capacity will be capable up to 2015 year demand. However, according to the traffic volume forecast as shown in Table3.3-3, after the 2016, the demand will be beyond the capacity. Until completion of the Sunda Strait Bridge constructions (planned in 2025), traffic demand shall be born by the ferry terminal facilities and Ro-Ro ships.

2) Development plan and budget Under the above-mentioned circumstances, development of the Merak and Bakauheni ferry terminal facilities and procurement of Ro-Ro ships are conducting by sub-sector of the land transportation of “Master Plan for the Acceleration and Expansion of Indonesian Economic Growth (MP3EI)” (Presidential Decree No.32, 2011). The outline of the plan is as shown in Table 3.3-4. Development of Fifth and Sixth berths of Merak and Bakauheni terminals is under progress by Indonesian national budget based on this program. According to the interview survey, detailed design of Sixth berth is completed, Tender will be started in January 2012, and construction work may start May or June in 2012.

3.3-6

Table 3.3-4: Development Plan and Budget for Merak and Bakauheni Ferry Facilties

Year Budget (Rp.) Main Activities

2009 81,440,403,000 - Construction of Berth No. 5 at Merak and Bakauheni- Construction of North Breakwater at Maerak

2010 89,906,127,000 - Construction of Berth No. 5 at Merak and Bakauheni- Construction of North Breakwater at Merak

2011 108,902,556,000 - Construction of Gangway and Side Ramp of Berth No.5 at Merak and Bakauheni- Construction of North Breakwater at Merak

2012 431,093,183,000

- Construction of Gangway and Side Ramp of Berth No.5 at Merak and Bakauheni- Construction of Berth No.6 at Merak & Bakauheni- Construction of Gangway and Side Ramp of Berth No.5 at Bakauheni- Procurement three 5,000 GRT Ferry

2013 720,000,000,000- Construction of South Breakwater at Merak- Construction of North and South Breakwater at Bakauheni- Construction of Berth No. 6 at Merak and Bakauheni

2014 950,000,000,000- Construction of South Breakwater at Merak- Construction of North and South Breakwater at Bakauheni- Construction of Berth No. 6 at Merak and Bakauheni

Data Source: Directorage General of Land Transportation (DGLT)

3) Ketapang and Margagiri New Ferry Route Development Plan Existing Merak terminal is close to the national highway and city area, and there are no available space for expansion after completion of the Sixth berth. In this and other reasons, a study by the Indonesian consultants by ADB fund was conducted and Ketapang (south-east of Sumatra Island in Lampung Provice) and Margagiri (west of Jawa Island, Banten Province) new ferry route was planned. The project is originally planned to be performed by PPP scheme, however, BAPENASS was judged the Project is not feasible, therefore, the Project was formally abandoned.

3.3.2 Studies to determine the Project specifics (1) Development of Panjang Port In the master plan of the Panjang Port development, Sunda bridge construction plan may not be considered. According to the bridge construction, regional development of surrounding area of Lampung province may activate and traffic demand increase may accelerate, therefore, year of development/investment to the Panjang Port may be necessary to modify. However, until the traffic demand will be double, it may still takes time, therefore, Panjnag Port development scheme against the cargo demand in the hinterland area is recommended to follow the existing master plan study. (2) New Port Development 1) Role of the New Port As mentioned in the above, the new port construction is considered. Role of the existing Panjang Port and the New Port is organized as follows.

3.3-7

Table 3.3-5: Role of existing Panjang Port and the New Port

Port During Bridge Construction After Completion of the Bridge Panjang Port To handle of the increased general cargo

demand such as consumer goods of the construction labors

To handle general cargo demands which may be increased of the hinterland area development, the port may role of the core port of the Lampung region.

New Port To handle of the construction materials, equipment and bridge segments which are constructed/fabricated at the temporary construction yard

Exclusive usage to handle the cargoes to/from the Industrial Estate which is planned north-east coast of Bakauheni.

The new port can be utilized for exclusive use for the inbound and outbound cargoes of the Industrial Estate which is planned at the north-east coast of Bakauheni. If there is a port adjoin the Industrial Estate, lead time of logistics can be reduced and this feature will be a good sales point to attract investors to the Industrial Estate. 2) Candidate Location To select the construction site of the port, engineering judgment is necessary based on the detailed site reconnaissance survey, topographic and hydrographic survey and others are necessary. However, to process for the discussions at present, a site along the coast behind of Pulau Rimau Balak which is about 2 to 3 km north side of Bakauheni is assumed. 3) Cargo Volume and Scale of Facilities Inbound of the construction materials and equipment to the temporary construction yard and outbound of bridge girder and other segments which are constructed/fabricated at the yard, ship loading and unloading facilities are necessary. Considering 10,000 to 50,000 DWT class ships berthing for transport of the construction materials and equipment, and berthing for crane barges to unload fabricated girder segments, about 300m length berth is required. To reduce the bridge construction period, simultaneous work for segment fabrications by two yards, the loading and unloading berth length shall be 600m. Forecasted cargo volume to handle at the port is depend on the development plan of the Industrial Estate, however, if the 600m berth will be utilized to the general cargo berth, and 1,400 tons/m/year handling capacity, as a rough general figure, is assumed, 840 thousand tons cargo can be handle by this berth. It can be considered that the capacity is enough at the initial stage of the Industrial Estate development. (3) Merak and Bakauheni Ferry Terminal The facility can be covered the traffic demand until 2015 with 33 Ro-Ro ships and five (5) berths, however, after this period until Sunda Strait Bridge operation will be started, it is about 10 years if the bridge operation will start on 2024, traffic demands shall be cope with the Merak and Bakauheni ferry terminal facilities and Ro-Ro ships. On the other hand, after the bridge operation started, the ferry and the bridge will be competing with each other, and the ferry may not be able to play a same role at present.

3.3-8

Based on the above-mentioned circumstances, several problems may be realized. The expected issues are listed up and then, suggestions and recommendations to solve the issues will be discussed in below. 1) Issues and Solutions Following problems can be pointed out. a. Coping with traffic demand until bridge operations Present facilities are possible to cope with the demands only up to 2012 with four (4) berths and up to 2015 with five (5) berth if includes the fifth berth which is currently constructing (by the JTCA Study). By using six (6) berths includes sixth berth which will be construct and additional three (3) 5,000 GRT Ro-Ro ship, it is possible only up to the traffic demand at 2017.

b. Decrepit Ro-Ro ships Among existing and operating 33 Ro-Ro ships, ships of its age more than 20 years old are 24 ships.It was evaluated that these ships shall be replaced up to the year of 2020 (by JTCA Study). Replacement and renewal of these ships by investing the private companies which are currently operating the Ro-Ro ships can not be expected, since these private companies worry about demand decreasing and/or abolition of the ferry services after starting the bridge operations. c. Issues after the bridge operations Construction of Surabaya and Madula Bridge was completed in 2009 by Chinese aid. Traffic volume by Ro-Ro ships between Ujung and Kamar which is the same route of the bridge from 2006 to 2011 is presented in Table 3.3-6. It can be read that the traffic volume is drastically decreased after the bridge operation was started. Traffic volume through the bridge is unknown, however, decreased traffic of ferry might be shifted through the bridge.

Table 3.3-6: Traffic Volume of Unjung and Kamar Ferry Route

Trip Passengers 2-WheelVehicle

4-WheelVehicle

(time) (person) (unit) (unit)2006 125,124 10,438,180 3,220,105 1,518,4782007 124,845 9,875,436 3,282,384 1,009,3972008 124,891 10,650,973 3,638,258 1,615,2512009 89,053 11,230,750 2,716,165 783,1602010 37,089 3,916,748 N/A N/A2011 21,181 5,516,953 1,045,097 208,674

Data Source: Directorate General Land Transportation by Interview Survey

Year

Similar situation is expected to happen at the Sunda strait. If the operation of Ro-Ro ferry will be discontinued, investment to the terminal facilities and ships before the bridge operations will be wasteful. Sometimes, the discussions that the ships to be assigned for the other ferry route in regional area are realized, however, Ro-Ro ships currently operating at Merak and Bakauheni ferry route are large size ships such as 5,000 GRT to 10,000GRT class, therefore, these ships can not be

3.3-9

sailed at local routes which are small size berthing facilities and shallow water depth for small size vessels. d. Subject for continuation of local ferry operations PT. ASDP is currently operating 34 routes in Indonesia. About 30% of the total profit is made by Merak and Bakauheni Ferry operations, and this profit is made up the deficit of the local route ferry operations (the JTCA Study). After completion of the bridge constructions, if the profit by Meark and Bakauheni ferry operations will not be expected, these local route ferries which are necessary to make up the deficit can not be operated further. Therefore, to find and/or create another profitable scheme which can be replaced Merak and Bakauheni Ferry operations or to find an official financing package is necessary to maintain the continuous local ferry operations. If these ferry operations will be discontinued, it may be a social problem since infrastructure of social life of local inhabitants may not be sufficient. 2) Recommendations a. Clarification of government policy against the negative factors The government and the governmental authorities shall have a correct understanding of the negative factor against the bridge constructions, and clarify their policies how to solve the problems. For instance, to meet the increased traffic demands between Merak and Bakauheni ferry before bridge operations, further procurement of Ro-Ro ships is necessary, however, such investment can not be expected to the private companies. Continuous local ferry operations are necessary however, after the bridge operations, private company may not be possible to keep such local ferry operations since their profit obtained by the Merak and Bakauheni ferry will not be expected. b. Recommendations on replacement of the old Ro-Ro ships and improvement of operation At present, Ro-Ro ships are operating by about 10 knots sailing speed between Merak and Bakauheni, because more than half of the ships are old and slow speed, therefore, if some ships operates high speed, they forces to wait before berthing due to the slow speed ship operations. In these circumstances, Ro-Ro ships are operating about three (3) hours cycle for two (2) hours for sailing and one (1) hour for berthing. In this case, one ship can trip four (4) rounds between Merak and Bakauheni per day, so maximizing the traffic capacity by ferry operations, namely, to keep the 24 times berthing in one day, 6 ships per berths shall be allocated. In the JTCA Study, it was pointed out that traffic capacity can be increased by introducing the large size Ro-Ro ships and increasing the ship sailing speeds. Under the following assumptions, required number and size of new ships, operation method to satisfy the traffic demand until the bridge will be operated (at 2025, 4,691,155 PCU), is estimated. The assumptions are i) among the existing 33 ships, all ships other than the 12 ships which are younger than 15 years ship age at 2015, will not be used further, ii) six (6) berths will be utilized for the operations, and iii) several new ships additionally introduced will be operated.

3.3-10

According to the try and error calculations, it was found that the traffic demand at 2025 can be coped with the following conditions.

i Following two (2) type of new ships shall be procured ・ Type I

5,000 to 6,000 GRT (can be berthed at No. 1 to 6 berths) LOA: 130 – 140 m Horsepower: 12,000 – 15,000 HP Draft: 5.5 to ｍ6.0 Transport Capacity: Sedan: 30 units, Truck 80 units

・ Type II 10,000 to 11,000 GRT (can be berthed at No. 3 and 6 berths) LOA: 170 – 190m Horsepower: 2 ～8,000 35,000 HP Draft: 6.5 to 6.7m Transport Capacity: Sedan, 100 units, Truck, 180 units

ii 12 ships which will be used from the existing shall be allocated 6 ships each for No.1 and No.2 berths.

iii Operation (sailing) speed of the above 12 ships shall be 10 knots as same as the current operations for these 12 ships since the ship are categorized old ships. In the same reason, frequent ship maintenances may be necessary therefore, it is considered that ship rotations of allocated six (6) ships per berths shall be four (4) ships for operation and two (2) ships for maintenance.

iv In addition to the three (3) 5,000 GRT ships which are planned to be procured in the master plan, further three (3) new same size of ships shall be procured. In total six (6) ships shall be allocated three (3) ships each for No. 4 and No. 6 berths, and it shall be rotated as 2 ships for operations and one (1) ship for maintenance at each berth.

v Furthermore, eight (8) number of 10,000 GRT size ships shall be procured. Four (4) ships shall be allocated for No. 3 and No. 6 berths each, and it shall be rotated three (3) ships for operations and one (1) ship for maintenance.

vi All ships which are allocated for No.3 to No. 6 berth shall be operated in 20 knots sailing speeds to maintain the 6 times round trips per ship.

Above conditions are summarized in Table 3.3-7. Table 3.3-8 shows the traffic volume which can be available by the above mentioned operation conditions. As shown in this table, it is clear that the traffic capacity can be cover the demand in 2025.

3.3-11

Table 3.3-7: Proposed Ship Allocation and Operation Plan

1 2 3 4 5 6Number of Trip ships 16 16 18 12 18 12 92Total Number of Ship ships 6 6 4 3 4 3 26Ship in Operation ships 4 4 3 2 3 2 18Ship in Dock ships 2 2 1 1 1 1 8Sailing Time min. 120 120 60 60 60 60Port Time min. 60 60 60 60 60 60Trip per ship per day cycle 4 4 6 6 6 6

Item Unit Berth No. Sum.

Table 3.3-8: Available Traffic Volume

(unit) (unit) (unit)Existing Ships 12 32 88.1 1,029,008New ships (5,000 GT) 6 24 93.0 814,680New ships (10,000 GT) 8 36 240.0 3,153,600

4,997,2884,691,155

Kind of ShipsShipNos.

Total CapacityDemand in 2025

PCU/yearTrip/dayPCU

/ship/trip

Based on the above-mentioned discussions, it is recommended i) to procure three (3) Type I (5,000 GRT) Ro-Ro ships and eight (8) Type (10,000 GRT) Ro-Ro ships before 2015, and ii) to allocate and to operate the ships as shown in Table 3.3-7. By this operations, Ketapan and Margagiri new ferry route development will not be necessary. c. Development of Long Distance Ro-Ro Ferry Services Effective usage of the Ro-Ro ships and existing facilities of Merak and Bakauheni facilities which may be invested until completion of the Sunda Strait Bridge, development of long distance ferry service operations is recommended after the bridge operations. As an general idea, two (2) berths are allocate for Merak and Bakauheni ferry services with tourism and/or leisure functions and remaining four (4) berths are allocate for long distance ferry services. Long distance Ro-Ro ferry services is not common in Indonesia, however, Indonesia is an archipelago country, therefore, sea transportation among the isolated islands are surely necessary and potential demands for long distance transportation by Ro-Ro ships are expected. If the long distance cargo transportation by truck through Ro-Ro ships become popular, following advantages may be realized.

i Lead time of logistics can be reduced since the transshipment at ports which are required for general cargo ship transportations are not necessary. This may be more advantage for small order cargo transport.

ii Truck driver can take rest in the ferry ship during transportation and,

3.3-12

iii Because the traffic volume of regional main and/or trunk roads may be reduced, traffic safety may be increased, road congestion may be relieved and pavement life may be sustained much longer.

Development costs of the terminal facilities at the Ro-Ro ferry destinations are necessary, however, according to the interview survey to the truck transport/drivers association (ORGANDA), and National OD survey results, it may be developed and may become popular in the future. To consider the long distance Ro-Ro ferry route, present cargo traffic demands are evaluated. Table 3.3-9 shows the evaluated results based on the national OD survey in 2006. The rates indicated in the Table 3.3-9 are the cargo flow rates between Merak and Bakauheni hinterland area and each provinces in Indonesia. Merak and Bakauheni hinterland area is assumed as Lampung Province, Banten Province and DKI Jakarta. In the table, “Origin” means the cargoes from Merak and Bakauheni hinterland area and “Destination” means the cargoes to Merak and Bakauheni hinterland area. Based on the table, cargo flows among Merak and Bakauheni hinterland area and West Jawa Province, DKI Jakarta and Banten Province are dominant. However, cargo flows among these regions are not be the demands for the long distance Ro-Ro ferry transport. Therefore, OD rates which are excluded cargo flows among West Jawa Province, DKI Jakarta, Banten Provine, and Lampung Province and Merak and Bakauheni hinterland area are as shown in Table 3.3-10.

Table 3.3-9: Cargo Flows between Merak and Bakauheni Hinterland Area and each Province

(%) (%) (%) (%)Bali 0.09 0.07 Maluku 0.01 0.01 Bangka Belitung 0.09 0.30 Maluku Utara - 0.01 Banten 16.14 16.38 Nanggroe Aceh Darussalam 0.66 1.61 Bengkulu 0.35 0.29 Nusa Tenggara Barat 0.10 - DI Yogyakarta 0.92 0.56 Nusa Tenggara Timur 0.06 0.02 DKI Jakarta 21.42 21.65 Papua - - Gorontalo 0.01 0.01 Papua Barat - - Jambi 0.37 0.53 Riau 0.38 0.59 Jawa Barat 36.89 38.56 Sulawesi Barat 0.01 - Jawa Tengah 10.35 7.53 Sulawesi Selatan 0.07 0.10 Jawa Timur 5.63 4.28 Sulawesi Tengah 0.02 0.03 Kalimantan Barat 0.08 0.07 Sulawesi Tenggara 0.02 0.03 Kalimantan Selatan 0.06 0.06 Sulawesi Utara 0.02 0.02 Kalimantan Tengah 0.02 0.07 Sumatera Barat 0.92 0.28 Kalimantan Timur 0.06 0.02 Sumatera Selatan 2.15 1.48 Kepulauan Riau 0.08 0.09 Sumatera Utara 1.27 1.36 Lampung 1.74 3.98 Total 100.00 100.00

Province Origin Destination Province Origin Destination

3.3-13

Table 3.3-10: Cargo Flows between Merak and Bakauheni Hinterland Area and each Province-2

(Excluded West Jawa, Banten, Lampung Provinces and DKI Jakarta)

(%) (%) (%) (%)Bali 0.52 0.53 Nanggroe Aceh Darussalam 3.66 11.58 Bangka Belitung 0.51 2.17 Nusa Tenggara Barat 0.55 0.03 Bengkulu 1.92 2.12 Nusa Tenggara Timur 0.35 0.14 DI Yogyakarta 5.10 4.02 Papua 0.03 0.02 Gorontalo 0.05 0.04 Papua Barat 0.01 0.01 Jambi 2.06 3.83 Riau 2.10 4.24 Jawa Tengah 57.11 54.16 Sulawesi Barat 0.05 0.03 Jawa Timur 31.06 30.77 Sulawesi Selatan 0.38 0.69 Kalimantan Barat 0.42 0.49 Sulawesi Tengah 0.11 0.23 Kalimantan Selatan 0.32 0.46 Sulawesi Tenggara 0.11 0.25 Kalimantan Tengah 0.13 0.51 Sulawesi Utara 0.11 0.13 Kalimantan Timur 0.32 0.16 Sumatera Barat 5.10 2.04 Kepulauan Riau 0.42 0.65 Sumatera Selatan 11.89 10.63 Maluku 0.07 0.05 Sumatera Utara 7.01 9.79 Maluku Utara 0.01 0.04 Total 100.00 100.00

Province Origin Destination Province Origin Destination

Fig. 3.3.3 shows the best 5 provinces of each of Origin and Destination in Table 3.3-10. Based on this figure, it is clear that the dominant regions of cargo flows to/from Merak and Bakauheni hinterland area are Central Jawa, East Jawa, and North Smatra area, and other provinces are small.

Fig. 3.3-3: Best Five Provinces of Cargo Flows to/from Merak and Bakauheni Hinterland Area

Origin

Jawa Tengah

Jawa Timur

Sumatera Selatan

Sumatera Utara

Sumatera Barat

Destination

Jawa Tengah

Jawa Timur

Nanggroe Aceh DarussalamSumatera Selatan

Sumatera Utara

Based on the above results, it can be expected the potential demands for long distance Ro-Ro ships of Merak and Bakauheni to/from Central/East Jawa and North Sumatra directions. In addition to this, based on the Table 3.3-10, the rates are small however, cargo flows to/from Kalimantan and Sulawesi islands are also exists. In Indonesia, under the purpose to improve the social life of remote areas, the government supports to the private companies to operate the non profitable (non commercial) air and ship routes, and these are called as “Pioneer Ship” or “Pioneer Flight”. Perhaps, introducing the similar considerations, if the long distance ferries between the Merak/Bakauheni and Kalimantan, Sulawesi directions, may be one trip per week at the beginning, potential demand may be developed and it may be increased of the cargo transport volume by truck through Ro-Ro ferries.

3.3-14

Based on the above discussions, as an general idea, eight (8) 10,000 GRT and four (4) 5,000 GRT Ro-Ro ships among six (6) ships which are procured before bridge operations, may be possible to allocate for long distance Ro-Ro ferry operations as shown in Table 3.3-11.

Table 3.3-11: Development Plan of Long Distance Ferry Operations

10,000 5,000Merak/Bakauni - Semarang - Surabaya 2 trip /day 3Merak/Bakauni - Medang - Banda Ache 2 trip /day 3Merak/Bakauhi - Pontianak 2 trip /week 1Merak/Bakauni - Balikpapan/Samarinda 2 trip / week 1Merak/Bakauni - Makassar 2 trip / week 2Merak/Bakauni - Makassar - Ambon - Merauke 1 trip / week 1Merak/Bakauni - Makassar - Manokwari - Jayapura 1 trip / week 1

Ferry Route Frequency Ship Allocation

3.3.3 Project Plan Summary (1) New Port Development The objective vessels and water depth of loading and unloading facilities are planned with the intention of diverting a part of port facilities adjoining the Industrial Estate. Berth length and space for the yard behind of the berth are planned considering the requirements of the temporary construction yard functions during the bridge construction period. Based on these considerations, the scale of the facilities is as follows.

Objective Vessels : General Cargo ship of 50,000 DWT, Container Ships 70,000 DWT Water Depth : -14.0m (L.W.L) (about -12.0m during the bridge construction) Berth Length : 600 m with 30m width (assumed as pile supported deck type

structure) Revetment Length : 2,200m including berth behind area, assumed as sheet pile type Temporary Yard : 2,000m x 1,000m, about 50% area to be paived Navigation Aids : nine (9) units

(2) Procurement of Ro-Ro Ships The procurement of the following new Ro-Ro ships is recommended. Before and during the bridge constructions, the ships will be used for Merak and Bakauheni ferry transport and after starting the bridge operations, it is recommended that the ships will be used for long distance ferry operations.

New 5,000 GRT Ro-Ro ships : 3 ships New 10,000 GRT Ro-Ro ships : 8 ships

3.4-1

3.4 Road and Railway

3.4.1. Background and Necessity of the Projects As mentioned above, to coordinate with the construction of the Sunda Strait Bridge, toll road

development is being planned by PU, Lampung province and Banten province.

For the South Sumatra Railway, double tracking and electrification are planned and construction has

commenced. Track extension to ports for coal shipment are being examined and are funded by China

and India. In Banten province, electrification and double tracking are being conducted and funded by

the Indonesian government. It is considered that electrification and double tracking between

Rangkasbitung and Merak would be conducted and funded by the Indonesian government.

We have reviewed these road and rail development plans and will not propose additional plans.

1) Road Development Plan

( a ) National Road Development Plan

In Lampung province, the toll road running from Bakauheni to South Sumatra province via Terbangi

Besar has been planned by the Ministry of Public Works with the Road Development Plan in 2010.

In Banten province, a peripheral peninsula road running between Merak and Sedang and a toll road

running between Cilegon and Bojonegara have been planned.

Fig.3.4-1: National Road Development Plan in Lampung Province

( Source: National Road Development Plan )

3.4-2

P

A

B

NO RUAS

KOTA

IBUKOTA KECAMATAN

IBUKOTA KABUPATEN

BATAS KABUPATENBATAS PROVINSI

IBUKOTA PROVINSI

PKN (PUSAT KEGIATAN NASIOANAL)

PKW (PUSAT KEGIATAN WILAYAH) 5 TH. PERTAMA

PKSN (PUSAT KEGIATAN STRATEGIS NASIONAL)

WISATA ALAM /SUNGAI/DANAU/GUNUNG / T. NASIONAL

WISATA BUDAYA

WISATA PANTAI

WISATA MUSEUM / PENDIDIKAN

DAERAH TUJUAN WISATA NASIONAL / INTERNASINAL :

PKW (PUSAT KEGIATAN WILAYAH) 5 TH. KEDUA

5 TH. PERTAMA.PKSN (PUSAT KEGIATAN STRATEGIS NASIONAL)5 TH. KEDUA.

PELABUHAN NASIONAL

BANDAR UDARA KLAS I / PUSAT

PELABUHAN INTERNASIONAL

PELABUHAN REGIONAL

BANDAR UDARA KLAS II / PUSAT

BANDAR UDARA KLAS III / PUSAT

BANDAR UDARA KLAS IV

BANDAR UDARA KLAS V

PENYEBARAN PRIMER

PENYEBARAN SEKUNDER

PENYEBARAN TERSIER

SK.MENHUB KETERANGAN

I II III IV TH. 2002

JALAN PROVINSI

JALAN NASIONAL

021

RENCANA JALAN TOL

JALAN TOL

012

001

002

003

003 003

004

017

008

009010

011

018

013 014

015

016

005

006

007

JALAN STRATEGIS NASIONAL RENCANA

021

023

025024020

019

022

DIREKTORAT JENDERAL BINA MARGAKEMENTERIAN PEKERJAAN UMUM

DIREKTORAT BINA PROGRAM

Fig.3.4-2: National Road Development Plan Banten Province

( Source: National Road Development Plan )

( b ) Spatial Plan

For the spatial plan of Lampung province, a toll road running between Bakauheni and Simpnag

Pematan has been planned. For the spatial plan of Banten province, toll roads running between Sedang

and Bojonenagra, Senin and Panimbang and a peripheral peninsula road are planned.

Fig.3.4-3: Road Development Plan on Spatial Plan of Lampung Province

( Source: Spatial Plan of Banten Province )

Sumatra Railway Plan

Toll Road Plan

3.4-3

Fig.3.4-4: Road Development Plan on Spatial Plan of Banten Province

( Source: Materials from Lampung Province )

2) Rail

( a ) National Railway Master Plan

The National Railway Master Plan targeting 2030 has been settled on by the Ministry of Transport. In

the master plan, extension tracks between Bakauheni and KM3 station, which is near Tarahan port,

Tanjung Karang and Kerta Pati, Simpang and Tanjung Api Api are planned. A shortcut line between

Tanjung Enim and Batraja is also planned. In Banten province, re-operation of discontinued railroad

lines between Rangkasbitung and Labuhan, and Rangkasbitung and Malingping are planned. Double

tracking and electrification between Merak and Rangkasbitung are also planned. Demand forecast was

conducted based on the National Transport OD Survey in the master plan. However, economic

analysis was not conducted for each project. It’s noted that Sunda Strait Bridge is a significantly

important project to enhance the connectivity between Java and Sumatra Islands.

Fig.3.4-5: Railway Development Plan in Sumatra Island on National Railway Master Plan

( Source： National Railway Master Plan [2011.8] )

Sumatra Railway Plan

3.4-4

Fig.3.4-6: Railway Development Plan in Java Island on National Railway Master Plan

( ：Source National Railway Master Plan [2011.8] )

( b ) Spatial Plan

An extension line between KM3 station near Tarahan port and Bakauheni is planned in the spatial plan

of Lampung province as well as the National Railway Master Plan. Commuter railways are also

planned in the following sections: between Bandar Lampung and Pringsewu, Kotabumi and Terbanggi

Besar, and Metro and Sukadana.

Re-operation of discontinued railroad lines between Rangkasbitung and Labuhan, and Rangkasbitung

and Malingping are planned. Double tracking and electrification between Merak and Rangkasbitung

are being planned in addition to the National Railway Master Plan. Extension lines from Cilegon to

Bojonegara and between Cilegon and Panimban are planned.

Fig.3.4-7: Railway Development Plan in Spatial Plan of Banten Province

( ：Source Materials from Banten province )

Cilegon-Bojonegara Railway Plan Merak-Jakarta

Double Tracking Cilegn-Panimbang Railway Plan

3.4-5

3.4.2. Studies to determine the Project specifics (1) Demand Forecast

1) Road Traffic Volume

Traffic volume of national roads in Lampung and Banten province is shown in following figures.

The traffic volume of east-west roads, which run from Jakarta to Merak, and roads around Bandar

Lampung is heavy. In particular, the volume on the national road between Jakarta and Merak is

beyond 100,000 PCU per day.

Fig.3.4-8: Traffic Volume in Lampung Province and Banten Province

( Source: METI Study Team, based on materials from Bina Marga )

Note: PCU (Passenger Car Unit). The unit converts a variety of vehicles such as buses and

motorcycles to the number of passenger vehicles. The value represents the average for each interval.

3.4-6

2) Road Traffic Congestion

The VCR of national roads in Lampung province and Banten province are shown in following

figigure. The VCR of the roads around Bandar Lampung and between Jakarta and Merak are high

and more than “1.0” which is the capacity of the road. The construction of the Sunda Strait Bridge

has the potential to make the roads around the Bridge have increased demand because of the

enhancement of motor transportation between Jakarta and South Sumatra.

The roads around the Panjam portin Lampun province, around Bojonegara, between Cilegon and

Anyer are damaged because of heavy trucks accessing the ports. This damage prevents a smooth

transportation system. The national road between Bakauheni and Bandar Lampung is the main route

for trucks using the ferry between Merak and Bakauheni. The road is always congested since heavy

trucks prevent other vehicles from passing and there isn’t a climbing lane for slower traffic.

Fig.3.4-9: VRC of National Roads in Banten Province and Lampung Province in 2010

( Source: METI Study Team, based on materials from Bina Marga )

Note: VCR means the ratio of volume / capacity.

3.4-7

0

5

10

15

20

25

30

35

40

Ciga

ding

Mer

ak

Rang

kasb

itung

Prng

panj

ang

Serp

ong

Passenger: Inbound Passenger: Outbound

Freight: Inbound Freight: Outbound

0

10

20

30

40

50

60

70

80

Lubu

k Li

ngga

u

Laha

t

Tanj

ung

Enim

Bar

u

Mua

ra E

nim

Nir

u

Prab

umul

ih

Tiga

gaja

h

Batu

raja

Tanj

ungk

aran

g

Tara

han

Kere

tapa

ti

Pida

da

Coal Cement Petroleum Fuel Mixed Cargo Pulp Passenger

3) Rail

(a) Train Operation

The South Sumatra railway is operated for passengers in the sections between Tanjungkalan and

Keretapati, and Tanjungkalan and Lubuk Linggau. However, the railway is mainly operated for

freight service from the viewpoint of frequency and fare revenue. A maximum of 36 trains per day

are used to transport the main cargo of coal.

Fig.3.4-10: Number of Trains Operating in South Sumatra in 2006

( Source: PT Kereta. Api )

In Banten province, passenger trains are operating from Merak to Jakarta through Serpong. 3 or 4

passenger trains per day operate in both directions between Merak and Rangkasibitung. 28 passenger

trains per day operate between Rangkasibitung and Jakarta. 2 freight trains per day operate one way

from Cigading to Bekasi.

Fig.3.4-11: Number of Trains Operating in Banten Province in 2009

( Source: Statistics of Transport, Communication and Information in Banten in 2009 )

3.4-8

Commodity Section Volume(Ton)Tanjung Enim Baru - Keretapati 1,900,000 Tanjung Enim Baru - Tarahan 8,721,000 Tanjung Enim Baru - Tigagajah 148,500 Cigading - Bekasi 422,940

Wood Niru - Panjang 528,550 Tigagajah - Pidada 144,925 Tigagajah - Keretapati 202,895

Steel Cilegon - Kalimas Surabaya 1,429

Coal

Clinker

-200,000 400,000 600,000 800,000

1,000,000 1,200,000 1,400,000 1,600,000 1,800,000

Mer

ak

Kren

ceng

Cile

gon

Tonj

ongb

aru

Kara

ngan

tu

Sera

ng

Wal

anta

ka

Cike

usal

Cata

ng

Jam

buba

ru

Rang

kasb

itung

Cite

ras

Maj

a

Tiga

raks

a

Tenj

o

Cile

jit

Paru

ngpa

njan

g

Cisa

uk

Serp

ong

Sudi

mar

a

Pond

okra

nji

Passenger (Between Merak and Pondokranji)

Passenger

Station 2005 2006 2007 2008 2009Tanjungkarang 279,926 285,611 329,573 386,893 407,211 Lampung Province 116,083,000 120,889,440 141,569,470 160,531,710 175,835,000

(b) Passenger

The number of passengers using the South Sumatra railway is very small. Passengers boarding at

Tanjungkarang are 1,100 persons per day.

Table 3.4-1: Train Passengers in Lampung Province

( Source: Transportation Statistics in Lampung in 2009 )

In Banten province, a few trains are operating between Merak and Rangkasbitung. Ferry passengers

can directly access the railway at Merak station. However, only approximately 190 passengers per day

board at Merak station. On the other hand, many trains are operating from Rangkasbitung to the

Jakarta area. Approximately 4,600 persons per day get on at Rangkasbitung and Parunpanjang.

Fig.3.4-12: Passengers between Merak and Pondokranji in 2009

( Source: Statistics of Transport, Communication and Information in Banten in 2009 )

(c) Cargo

9.1 million tons per year of coal are transported between Tanjung Enim Baru and Tarahan. It’s the

main cargo flow on Sumatra Island. The coal carried to Tarahan station is shipped from Tarahan port.

On the other hand, 0.4 million tons per year of coal are transported from Cigading to Bekasi on Java

Island. The coal transported to Bekasi is loaded onto trucks and transported to Cilegon.

Table 3.4-2: Rail Cargo in Lampung Province and Banten Province in 2009

(Source: METI Study Team, based on materials from Banten and Lampung province and PT, KAI.)

3.4-9

(2) Analyzing and Understanding Problems

The national road between Bakauheni and Bandar Lampung is the main route for trucks using the

ferry between Merak and Bakauheni. The road is always congested since heavy trucks prevent other

vehicles from passing and there isn’t a climbing lane for slower traffic. After the Sunda Strait Bridge

is constructed, the road will be more congested since the traffic demand between Java and Sumatra

Islands is expected to increase.

In addition, the roads around Panjam portin Lampun province, around Bojonegara, and between

Cilegon and Anyer are damaged because of heavy trucks accessing the ports. This will also prevent a

smooth transportation system.


To counter the demand from Bakauheni to inner-Sumatra Island, a toll road between Bakauheni and

Terbanggi besar is being planned by the Ministry of Public Works and it is currently in the tendering

stage.

On the other hand, to counter the damaged roads, pavement re-covering is being conducted.

3.4-10

3.5-1

3.5 Regional Development

3.5.1 National Development Plan for Sunda Strait Area (1) National Development Perspectives After more than six decades of its independence, Indonesia has made tremendous progresses in its

economic development. Originating from a traditionally agricultural-based economy, Indonesia has

shifted a larger portion of its economic activities toward manufacturing and service oriented industry.

Its economic development has also improved the nation’s level of prosperity, which is reflected in its

increased income per capita as well as in other social and economic indicators including the Human

Development Index (HDI). From 1980 to 2010, the HDI had nearly doubled, from 0.39 to 0.60.

MP3EI directive is aimed at implementing the 2005-2025 Long-term National Development Plan,

which is stated in the Law No.17 Year 2007, the vision of the acceleration and expansion of

Indonesia’s economic development is to create a self-sufficient, advanced, just, and prosperous

Indonesia.

By utilizing the Masterplan for Acceleration and Expansion of Indonesia’s Economic Development

(MP3EI), Indonesia aims to earn its place as one of the world’s developed country by 2025 with

expected per capita income of US$ 14,250-US$ 15,500 with total GDP of US$ 4.0-4.5 Trillion. To

achieve the above objectives, real economic growth of 6.4-7.5 percent is expected for the period of

2011-2014. This economic growth is expected to coincide with the decrease in the rate of inflation

from 6.5 percent in 2011-2014 to 3.0 percent in 2025. The combined growth and inflation rates

reflect the characteristics of a developed country.

The 2025’s vision is achieved by focusing on three main goals:

1) Increase value adding and expanding value chain for industrial production processes, and

increase the efficiency of the distribution network. In addition, increase the capability of

the industry to access and utilize natural resources and human resources. These increases

can be attained by the creation of economic activities within regions as well as among

regional centers of economic growth.

2) Encourage efficiency in production and improve marketing efforts to further integrate

domestic markets in order to push for competitiveness and strengthen the national economy.

3) To push for the strengthening of the national innovation system in the areas of production,

process, and marketing with a focus on the overall strengthening of sustainable global

competitiveness towards an innovation-driven economy.

(2) National Potency 1) Population Structure

3.5-2

In 2010, Indonesia ranks the 4th most populous country in the world. Its huge population and the

rapidly increasing purchase power of its population is creating a significant market. Moreover, the

population is also increasing in the quality of its human resources, thus providing a desirable

competitive edge.

Indonesia is experiencing a transition period in the structure of its population productive age. In the

period of 2020-2030 the dependency index (which was started in 1970) will reach its lowest point

thus increasing its productive work force has one of the highest in the region. An important

implication of this condition is the increased importance of job creations that will cater to the huge

portion the population productive age. More importantly, if the general education continuous to

improve, Indonesia’s economic productivity will experience an exponential growth.

Fig. 3.5-1: Population and Human Resources

(Source: Masterplan – Accelleration and Expantion of Indonesia Economic Development

2011-2015. Republic of Indonesia. 2011)

2) Natural Resources

Indonesia has an abundance of renewable (agricultural products) and un-renewable (mining and

minerals) natural resources. It must be able to optimize the handling of its natural resources by

increasing a processing industry that will provide high added value, while at the same time reducing

exports of raw materials.

Indonesia is one of the world’s major producer of a broad range of commodities. It is the largest

producer and exporter of palm oil in the world. It is the world’s second largest producer of cocoa and

tin. For nickel and bauxite it comes 4th and 7th respectively in world’s reserves. It is also one of the

largest producers for steel, copper, rubber and fisheries. It also has huge reserves for energy such as,

coal, geo-thermal, and water. They have been used to support Indonesia’s prime industries such as,

textiles, shipyards, transportation, as well as food and beverages.

3.5-3

Fig.3.5-2: Natural Resources of Indonesia



(3) Development Acceleration In order for Indonesia to accelerate its economic development, Indonesia will need to embrace a new

way of thinking, a new way of working, and a new way of conducting business. Regulations at the

central and regional level need to be streamlined to ease doing business.

The role of Government in the implementation of MP3EI is to provide a set of rules and regulations

that provide incentives for investors to build sectoral industries and infrastructure. Incentives can be

condusive policies on tariff, taxes, import duties, labor regulations, licensing and permits, land

procurements, etc. The central and local governments must build a reliable link within and beyond

the centers of economic growth.

To support the acceleration and expansion of economic development in Indonesia, the Government

has set a number of major programs in collaboration with key stakeholders including government

ministries and the private sector in the development of MP3EI. Based on stakeholders’ agreement

the focus of development was classified into 8 main programs, i.e.: agriculture, mining, energy,

industrial, marine, tourism, telecommunication, and the development of strategic areas. The eight

main programs consist of 22 main economic activities, and the one priority of it is Sunda Straits

Strategic Development.

3.5-4

(4) MP3EI Position in National Development Planning MP3EI is a working document and as such it will be updated and refined progressively. It contains

the main direction of development for specific economic activities, including infrastructure needs

and recommendations for change/revision of regulations as well to initiate the need of new

regulations to push for acceleration and expansion of investment.

MP3EI is an integral part of the national development planning system. MP3EI is not meant for

substituting the existing Long Term Development Plan 2005 – 2025 (Law No. 17 Year 2007) and

the second Medium-Term Development Plan 2010 – 2014 (Presidential Decree No. 7 Year 2009).

MP3EI is formulated in consideration of the National Action Plan for Greenhouse Gas (Rencana

Aksi Nasional Gas Rumah Kaca – RAN GRK) as a national commitment which recognizes the

global climate change.

Fig.3.5-3: Position of MP3EI in National Development Planning



(5) National Middle Term Development Plan 2010-2014 National Middle Term Development Plan 2010-2014 related to Sunda Strait Zone Development

mentioned that infrastructure development and investment and business climates are two of eleven

national priority sectors program instead of bureaucratic reform; education; health; poverty reduction

and food security; and before next priority for energy; environment and disaster management; under

development, developed, outer and post-conflict local areas; culture, creativity and innovation of

technology; and other priority.

Dynamic Change

To Accelerate National Economic Transformation

Masterplan of Acceleration and Expansion of Indonesia Economic

Development RPJMN 2010-2014

RKP/RAPBN

RPJPN 2005-2025

RAN-GRK→REDD

RTRWN

Private Investment and PPPAction Planning/ Project

・Global Condition (Economic Crisis

in 2008, BRICs, etc) ・International Commitment（G20,

APEC, FTA, ASEAN, climate Change）

・Domestic Socio-Economic Development

Financial and Planning System

Law No.25 Year 2004 Law No.17 Year 2003

3.5-5

National Middle Term Development Policy priority for infrastructure development action program

covers:

a) Land and Spatial Planning: Land management and utilization policy consolidation

for public interest as a whole under one roof and integrated spatial planning

management;

b) Road: Completion of Cross Sumatra, Java, Bali, Kalimantan, Sulawesi, West Nusa

Tenggara, East Nusa Tenggara, and Papua construction length with total 19 370 km

length in 2014;

c) Transportation: Infrastructure networks development and inter-modal and inter-island

transportation service provision are integrated in accordance with National

Transportation System and Multimodal Transport Blueprint, and decreased levels of

transport accidents targetted in 2014 or less than 50% of the current situation;

d) Urban transportation: System and transport network improvements in four major

cities (Jakarta, Bandung, Surabaya, Medan) in accordance with the Urban Transport

Blueprint, including the completion of electric railway transportation development in

Jakarta (MRT and Monorail) no later than 2014.

e) And other sectors such as Public Housing, Flood Control and Telecommunication.

National Middle Term Development Plan priority for investment and business climates are

investment improvement through legal certainty, procedures simplification, information system

improvement, and development of Special Economic Zones (KEK). Therefore action program for

these priority sectors are:

a) Legal certainty: Regulation reform gradually in national and local levels to create

legislation harmonization and to avoid obscurity and inconsistency in its

implementation;

b) Procedure simplification: Application of information services systems and investment

permit electronically (SPSIE) at One Stop Integrated Service (PTSP) in several cities

starting in Batam; cancellation of troubled local regulations and reduction of costs for

initial business activity such as Company Registration (TDP) and Trading Business

License (Business License);

c) National Logistics: The development and establishment of the National Logistics

System to ensure goods flow fluency and reduce the transaction cost / high-cost

economy;

d) Information system: The full operation of National Single Window (NSW) to import

(prior to January 2010) and exports. Acceleration of customs settlement process

3.5-6

realization outside the port through the first phase implementation of Advanced

Custom Trade System (CATS) in Cikarang dry port;

e) KEK: Special Econimic Zone Development in 5 (five) locations through Public-Private

Partnership scheme before 2012;

f) Employment Policy: Employment policies and business climate synchronization in

order to expand employment creation.

(6) National Spatial Planing (MP3EI) MP3EI was formulated based on middle and long-term national development plans, and as indicated

in the previous section, it sets sectoral planning targets, as well as island-based spatial planning, in

the form of economic corridors. Provincial, district and municipal governments are obligied to

make their own spatial planning by following middle and long-term national development plas as

guidance. MP3EI defines Sumatra Island as a center of natural resources production and processing,

Jawa as a driver for national industry and service provision, Kalimantan as a center for production

and processing of national mining and energy reserves, , Sulawesi as a center for production and

processing of national agriculture, plantation , fishery, oil & ags and mining, Bali and Nusa

Tenggara as a gateway for tourism and national food support, and Papua and Maliku as a center for

development of food, fisheries, energy and national mining. These economic corridors and sectoral

development plans make up of the framework of the national spatial planning.

The following shows the target two provinces, including Bali Island and the outline of their spatial

planning.

Fig.3.5-4: Economic Corridors

1. Sumatera Development Sumatera Island development is directed to become the center of industry production and

agricultural processing food crops, plantation, fishery; source national energy, trade and tourism

3.5-7

center, expecting Sumatera area became one of the major areas in the ASEAN Economic

Community.

Development centers in Sumatera, National Activity Center (PKN) are directed to: (1) encourage the

development of Lhokseumawe, Dumai and Batam Cities in the Eastern region and the Padang City

in western region as center for primary service, (2) controlling the development of Medan-Binjai-

Deli Serdang, Bandar Lampung and its surroundings , and Palembang and surrounding urban areas,

as the primary service centers in accordance with environment carrying capacity; and (3) encourage

the development of Pekanbaru and Jambi Cites as the secondary service centers.

Regional development direction policy for Sumatra maritime is marine-based industries

development, especially the seafood processing, by strengthening linkages with Java region. The

strategy to be taken is: (1) preparation of skilled human resources in marine sector, (2) development

of marine transportation and coastal areas, (3) increasing the capacity of electricity energy, (4)

development of bank financing schemes which is easily accessible by fishermen and small medium

enterprises businesses in coastal areas, (5) and facilitating the development of assurance systems or

risk protection.

2. Java-Bali Development In the next five years, the development of Java-Bali region is directed to maintain the function of

national barns, developing controlled processing industry, strengthening the trade interactions, and

improving international service provision and tourism quality as a major area in the ASEAN

Economic Community, by taking into account ecological balance and sustainable development

principles.

The centers of development in Java-Bali region which is the National Activities Centre (PKN) is

directed to: (1) control the physical development of Greater Jakarta, Bandung, Gerbangkertosusila,

and Denpasar urban areas as a primary service service centers by considering the carrying capacity,

(2) encourage the development of Yogyakarta and its surrounding urban areas and Semarang urban

as the primary service service centers, (3) encourage the development of Serang and its surroundings

urban areas, Cilacap and surrounding areas, Cirebon and surrounding areas, and Surakarta and its

surroundings as a secondary service centers.

3. Sector Development Industry A. Domestice Industry The problems faced by Industry can be grouped into external and internal problems. External

problems include (1) inadequate availability and infrastructure quality (roads, ports, railways,

electricity, gas supply networks) , (2) illegal imported goods in the domestic market, 3) labor-

industry relations have not been well established, (4) legal certainty issues, and (5) remained high

interest rates.

3.5-8

Internal problems in general can be grouped in three aspects. First is the industrial enterprises

population, both in terms of posture and the amount are still weak. Statistical data of large and

medium industries and small and households scale industry (IKR) in 2005 showed that the number

of large-scale industrial enterprises amounted to 6,599, medium-scale was 14,130, and small-scale

was 230,247 whereas household industries was amounted to 2,323,772 enterprises bringing the total

number of industrial enterprises in 2005 was 2,574,748. This means the number of large-scale

companies are only 20,729 or about only 0.1 percent of the industrial population. To increase the

more established and stable employment, the number of large and medium industries need to be

improved.

The second problem is the national industrial structure that has not been sufficiently sturdy if being

analysed from (1) mastery of business, (2) linkages of large, and small and medium-scale industries

(SMI), and (3) the upstream-downstream linkages.

Third problem is productivity, ie added value volume created by each of labor in relevant industries

is still low. Year 2006 shows that Industry statistics of 66 groups of medium and large scale

industries, only fifteen groups that have productivity value over 200 million / person and only two

groups are worth over Rp 1 billion, ie oil and gas industry and four-wheel vehicle industry.

B. Investment World Investment Prospect in 2009-2011 (UNCTAD, 2009) reported that prospects for investment

in Indonesia ranked eightth due mainly to the large market and the availability of natural resources.

Problems faced to improve the investment are (a) not yet optimal implementation of harmonization,

synchronization, simplification and policies, either among center's institutions and it between central

and local, (b) Inadequate quality of infrastructure, (c) quite long permit process investment cause the

high cost of investment permit compared to competitor countries, (d) inadequate supply of energy

required for industrial activities, (e) quite a lot of local regulations (regulations) that inhibit

investment climate, (f) concentrated distribution of investment in Java, and (g) technology transfer

not yet optimal implemented.

C. Transportation Current situation shows there are still many problems in implementing transportation need to be

addressed, including: 1) Limited number and poor condition of transportation facilities and

infrastructure lead to high transportation costs of goods and passengers as well as the decrease in

transportation safety.2) The policy and transport planning is still partial in both sectoral and regional,

and not integrated across sectors and regions. 3) Limited funding for infrastructure maintenance.4)

Inadequate provision of urban transport facilities and infrastructure.5) Lower accessibility of

transport services for people in rural areas.

3.5-9

D. Energy In 2004-2008 period , although petroleum share in national energy compound has declined, but its

usage volume is still increasing annualy , and is expected to continue to increase over the next five

years. The gap between fuel consumption with the ability to produce crude oil and fuel in the

country has led to large dependence on imports, either crude oil and fuel imports. Dependence on

imports is causing national energy security vulnerable to price fluctuations and crude oil supply /

demand. The gap between fuel supply and demand within the country are also due to declining crude

oil production in recent years. It occurs because most oil field currently operating is an old oil field

(mature), whereas the addition of new oil fields can not keep pace with the needs of domestic crude

oil.

National energy intensity figures in 2005-2008 period is approximately 401 tons oil equivalent

(TOE) / million U.S. $ of GDP (2005 and 2006), 397 TOE / million U.S. $ of GDP (2007), and 382

TOE / million U.S. $ of GDP (2008) while the energy intensity figures in Asean countries, Malaysia

in 2008 (335 TOE / million U.S. $ of GDP), and the average of developed countries members of the

OECD is 136 TOE / million U.S. $ GDP. Inefficiency is especially true within fuel supply

consumption in urban transportation sector, including mass public transport systems service utilizing

low energy consumption not yet institutionalized. In addition to inefficiency, the provision of final

energy, especially electricity and fuel supply, are also constrained by the limited level of energy

infrastructure services, such as production facilities, processing, transportation and distribution,

especially in rural areas, remote and border areas.

4. Sectors Development Strategy A. Industry Revitalization Strategy Establishing Presidential Decree number 28 of 2008, the government has established the National

Industrial Policy . Industry Cluster Priorities within the National Industrial policy is as follows:

A) Agro Industries: 1) the palm oil industry, 2) rubber and rubber goods; 3) cocoa and

chocolate; 4) coconut ; 5) coffee ; 6) sugar industry; 7) tobacco ; 8) fruits industry ; 9)

wood and wood products; 10) fishery and marine products industry; 11) pulp and

paper ; 12) milk processing ;

B) Transportation Equipment Industry: 1) motor vehicle industry , 2) the shipping

industry; 3) aerospace ; 4) raiway industry;

C) Electronics and Telematics Industry: 1) electronics industry , 2) telecommunications

and its supporting hardware industry, 3) broadcasting industry and its supporting; 4)

the computer industry and its equipment;

D) Manufacturing Industry Base:

i) basic material industries: 1) iron and steel industry; 2) cement industry; 3)

petrochemical industry; 4) ceramics industry;

3.5-10

ii) machinery industry: 1) industrial electrical equipment and electrical machinery; 2)

general industrial machinery and equipment;

iii) labor-intensive manufacturing industries: 1) textiles and textile products industry;

2) footwear industry; 3) pharmaceutical industry with domestic source raw

materials.

E) Supporting Specific Creative and Creative Industries : 1) software and multimedia

content industry; 2) fashion industry, 3) crafts and art goods industry;

F) Specific Small and Medium Industry: 1) gemstones and jewelry industry; 2)

community salt industry; 3) decorative pottery and ceramics industry; 4) atsisri oil

industry; 5) snack food industry.

Based on the development policy strategy and direction, industry development priority focus in

National Middle Term Development Plan (RPJM) 2010-2014 is focused on three things as follows:

(A) Population growth Priority Focus on Industrial Enterprises to produce industrial

enterprises population size increase with more healthy posture and supported by the

following priority activities:

(I) Industry revitalization particularly the fertilizer industry, sugar industry, these for

various clusters priorities industry according to the National Industrial Policy.

(II) Industry cluster growth based on palm oil (oleochemical) and those based on oil

and gas condensate.

(III) Development of industrial zones especially those in special economic zones

(KEK).

(B) focus on Priority Strengthening Industrial Structure to the expected outcome is the

more integration of SMEs in industrial clusters Industry, emergence and development

of industry cluster to strengthen Industry competitiveness in the global market,

supported by the following priority activities:

(I) Industry development to be able more compete to become the supplier for larger

industry and / or downstream Industry;

(II) Industry standardization development and management to facilitate inter industry

business transactions

(C) Priority focus on Industrial Enterprises Productivity Increased with expected outcome

is increasing products added value through application of science and technology and

is supported by priority:

activities covered in the leading industry improvement program based on science

and technology , particularly for transport equipment, electronics, and telematics

industry. B. Investment Strategy Investment development strategy in the next five years are as follows (1) encourage the development

of investment in various sectors, especially food, energy and infrastructure in order to increase the

3.5-11

distribution of investments, (2) encourage the development of local primacy-based investment,

including plantation , fisheries and livestock sectors in context of employment creation, (3) improve

the effectiveness of investment policies through harmonization and simplification of various rules

sets , both at central and regional levels; and (4) encourage the acceleration of infrastructure

availability in broad sense by increasing partnership effectiveness between government and business

sector in order to increase investment attractiveness, and (5) encourage the development of special

economic zones for added value products, among others, leather goods and footwear, transport, other

services sector, petrochemical -based industry , machinery industry, electrical machinery and

electrical equipment, and textiles and textile products industry (TPT)

C. Transportation Strategy To achieve the target in order to improve transport infrastructure facilities and services in accordance

with Minimum Service Standards (MSS), then the policy direction and priority of the mainstreaming

strategy is to improve the safety and quality of transportation services comprehensively and

integratedly from various aspects (prevention, fulfillment of shipping navigation and air

completeness, traffic signs, railway signaling systems, supervision and enforcement, accident impact

and accident-prone area management, traffic accident information systems, transportation facilities

and infrastructure feasibility, as well as transportation users.

Strategies to implement policy directions are: (a) meet safety and security of shipping and aviation

standards are issued either by the International Civil Aviation Organization ICAO, International

Maritime Organization IMO as well as by the International Association of Light House Authorities

(IALA) included the ISPS Code, (b) subsidies for pioneering operation and OSP for economy class

transportation services, (c) development of transportation facilities and infrastructure in remote areas,

rural and border areas, (d) meet the search and rescue equipment completeness, and (e) to mitigate

and adapt to climate change by encouraging activities such as: development by improving public

transit and bus rapid transit service in these areas; application of Area traffic Control System (ATCS

and the use of solar cell at traffic light; the use of fuels alternative and socialization of biofuels use in

cooperation with the Ministry of Energy and Mineral Resources; development of technology for

traffic management arrangements; use of hybrid vehicle technology; application of road pricing in

metropolitan area; improve fuel emission control; improve pedestrian facilities and use of non-

motorized vehicles; formulation of Eco Port Guidelines and Eco Airport Guidelines; and air

transport noise reduction.

D. Energy Strategy Policy direction and strategies to increase energy resilience and independence in National Middle

Term Development Plan (RPJM) 2010-2014 is as follows:

Increasing and oil and gas reserves production through increasing investment attractiveness of

exploration and exploitation mainly subjected to meet the needs of both domestic industrial fuel and

raw materials, and foreign exchange income sources.

3.5-12

Several policies and strategies will be undertaken to: (i) encourage the investigation and geological

mapping to improve backup data control and take inventory and updating data of petroleum , natural

gas, coal and methane gas field development potential, (ii) incentive implementation more effective

to encourage petroleum, natural gas, methane gas and coal exploration and exploitation activity, as

well as improve promotion quality and offering oil and gas fields as well as production control and

utilization of oil and gas for raw material purpose, especially, domestic fertilizers and petrochemical

(iii) encourage the utilization of research and technology development, especially EOR high-tech to

utilize old oil fields , and (iv) improve transparency, governance, and eliminating corruption and non

efficient cost in upstream energy sector, namely the exploration and exploitation

To increase the use of new and renewable energy, and clean energy, some policies and strategies will

be directed to (i) encourage the utilization of geothermal energy for medium-and large-scale power

generation, (ii)) encourage the use of micro hydro to small and medium scale power generation ,

especially in remote areas not covered by the national electricity network system, (ii)) encourage the

use of biofuel, with its plantation in unused and spacious land and has high potential for agricultural

production, and (iii) encourage the use of solar and wind power in remote area / islands and areas

with lower levels energy availability but has high intensity of sun / wind such as East Nusa Tenggara,

West Nusa Tenggara, Papua, Maluku, and so on.

3.5.2 Regional Spatial Planning in Banten Province (1) Spatial Structure Plan

The centre system direction identifies that Banten Province will has several level center systems,

which is as follows.

1. National Activity Center (PKN):

which includes urban i.e. Tangerang and South Tangerang Urban areas corresponding to

regulation in Presidential Decree No. 54 year 2008 about Jabodetabekpunjur Zone Spatial

Planning, in addition to Serang and Cilegon urban area in accordance with the Government

Regulation Number 26 Year 2008 about National Spatial Plan, hereinafter referred to

National Activity Center (PKN) is the urban area function to serve,

2. Regional Activity Center (PKW):

includes the urban areas i.e. Pandeglang and Rangkasbitung corresponding to regulation in

Government Regulation Number 26 Year 2008 about the National Spatial Planning and

Banten Province Spatial Plan year 2002-2017. Regional Activity Center is an urban area

functioned to serve provincial scale activities or multiple regencies / cities. Provision of

supporting infrastructure and facilities corresponding to its hierarchy is required in order to

strengthening its cities function. The cities proposed as Regional Activity Center Promotion

(PKWp)i.e. Panimbang, Bayah, Maja, Balaraja and Teluk Naga urban areas.

3. Local Activity Center (PKL):

3.5-13

which includes the urban areas i.e. Labuan, Cibaliung, Malingping, Tigaraksa, Kronjo,

Anyar, Baros, Kragilan. Thereby, the cities need to be encouraged as an urban area which

function to serve activities at regency / city scale or a few districts. Provision of supporting

infrastructure and facilities corresponding to its hierarchy is required in order to strengthen

cities function as a Local Activity Center (PKL).

Banten Province is divided into 3 Development Work Area (WKP), namely: WKP I covered

Tangerang Regency, Tangerang City, and South Tangerang City; WKP II includes Serang Regency,

Serang City and Cilegon City; WKP III includes Pandeglang Regency and Lebak Regency. The

cities function and role direction of Development Work Area (WKP) associated with the

development of the Sunda Strait bridge foot Zone is Development Work Area (WKP) II is directed

for government, education, forestry, agriculture, industry, ports, warehousing, tourism, services,

trade, and mining development activities.

(2) Spatial Pattern Plan Banten Province Cultivated zone is direction designation consisting of:

A. The Zone Allocation for Production Forest.

B. The Zone Allocation for Agriculture.

C. The Zone Allocation for Plantation.

D. The Zone Allocation for Fisheries

E. The Zone Allocation for Mining.

F. The Zone Allocation for Industry.

G. The Zone Allocation for Tourism

H. The Zone Allocation for Settlement.

In addition to the above allotment zone, Banten Province also has Cultivation Zone that store

National Strategic Value is Bojonegara - Merak - Cilegon Zone with dominant sector of industry,

tourism, agriculture, fisheries, and mining. Moreover Cultivation Zone also directing to develop

Krakatau sea and its surroundings with fisheries, mining, and tourism. leading sectors.The cultivated

development zone in Banten Province in 2030 plans for approximately 604,277 hectares or 69.85%

of the total of Banten province area, including:

A. The Zone Allocation for Forest Production Direction management for production forest zone:

Production forest zone is directed in Serang, Lebak and Pandeglang Regencies. Production forest

zone development plans for approximately 58,091 ha (6.71%) of the vast Banten Province.

B. The Zone Allocation for Agriculture

3.5-14

Direction management for agriculture zone:

• Food-crop agriculture zone is directed in Serang City, Serang Regency, Cilegon City,

Tangerang Regency, Pandeglang Regency and Lebak Regency.

• Horticultural zone is directed in Serang, Tangerang, Pandeglang and Lebak Regencies.

• Farming zone is directed in Serang, Tangerang, Pandeglang and Lebak Regencies.

• Sustainable food-crop agriculture zone in rural areas is directed in Serang City, Serang

Regency, Cilegon City, Tangerang Regency, Pandeglang Regency and Lebak Regency.

Agriculture designation development zone is directed in area of approximately 216,577 ha (25.03%)

of the Banten Province.

C. The Zone Allocation for Plantation Direction management for plantation zone:

Plantation designation zone is directed in Lebak Regency, Pandeglang Regency, Serang Regency,

Tangerang Regency, Serang City, Cilegon City, Tangerang City and South Tangerang City.

Plantation designation zone covers dryland cultivation zone directed development of approximately

176,957 ha (20.45%) of the vast Banten Province.

D. The Zone Allocation for Fisheries Direction management for fishery zone:

Fishery designated zone is directed in Serang Regency, Tangerang Regency, Lebak Regency,

Pandeglang Regency, and Serang City.

E. The Zone Allocation for Mining Direction management for mining zone:

• Mineral mining designation zone includes metallic minerals (gold) directed is directed in

Lebak Regency, and Pandeglang Regency.

• Coal mining designation zone is directed in Lebak Regency.

• Geothermal mining designation zone is directed in Pandeglang and Serang Regencies

(WKP Kaldera Danau Banten possible up to 115 MW, Gunung Karang possible up to

170 MW), Pandeglang Regency (Pulosari Mountain, hypothetic for 100 MW), Lebak

Regency (Pamancalan, speculative for 225 MW, Endut Mountain speculative for 100

MW and possible for 40 MW, and Ciseeng hypothetical for 100 MW).

3.5-15

• Oil and gas mining designation zone is directed in Banten Block (3999.00 km2),

Rangkas Block (3977.13 km2), Ujung Kulon Block (3706.47 km2), Sunda Strait I

(8159.40 km2), Sunda Strait II (7769.85 km2), and Sunda Strait III (6035.64 km2).

F. The Zone Allocation for Industry Industrial designated zone covers :

• Large industry, directed to: Serang, Tangerang, and Cilegon Regency.

• Medium industry, directed to: Tangerang City, South Tangerang City, Cilegon City,

Pandeglang Regency, Lebak Regency and Serang Regency.

• Small industry, aimed at: Lebak Regency, Pandeglang Regency, Tangerang Regency,

Serang Regency, Tangerang City, South Tangerang City Serang, City and Cilegon City.

G. The Zone Allocation for Tourism Direction management for tourism zone:

Tourism designation area is directed in the West Coast tourism zone (Anyer, Labuan / Carita,

Tanjung Lesung and Sumur), Old Banten Area, Karangantu Port, South Coast Area Tourism (along

the southern shore of the Muara Binuangeun - Panggarangan - Bayah), Baduy Settlements

(Leuwidamar, Cimarga), Ujung Kulon National Park (Cigeulis, Cimanggu, Sumur, Panaitan Island,

Handeuleum Island, Peucang Island, Taman Jaya, Ciputih Beach and Honje Mountain).

H. The Zone Allocation for Settlement Direction management for settlement zone:

Designation zone scattered settlements is directed in each regency/city Province in Banten. Industrial

designation zone, tourism designation zone, and residential designation zone is categorized as urban

zone are developed of approximately 152,651 ha (17.65%) of the Banten Province area.

3.5-16

Fig.3.5-5: Spatial Plan of Baten Province

3.5-17

Fig.3.5-6: Protected Area Planning Map in Banten Province

3.5-18

Fig.3.5-7: Development Area Planning Map of Banten Province

Picture 4.6 Cultivated Area planning

2

Scale

Project: Transverse Mercator System grid: geography of Universal Transverse Mercator (UTM)

02 4Kilometers

APPROVED BY: BANTEN GOVERNER

Hj. RATU ATUT CHOSIYAH

LOCATION DIAGRAM

Cultivated Area

Residential Area AllocationRegional plantation AllocationForest Area AllocationFarming Area AllocationIndustrial Area Allocation

INFORMATIONProvincial CapitalDistrict/City Capital Subdistrict Capital Provincial boundary District boundary Subdistrict boundary Shoreline MountainRiverLake

District RoadNational Road (Arterial)National Road (Collector)Regional Road (Collector)Toll RoadRailway line

3.5-19

Fig.3.5-8: Land-Use Map of Banten Province

2

Scale

Project: Transverse Mercator System grid: geography of Universal Transverse Mercator (UTM)

02 4Kilometers

Picture 4.8 Spatial patterns planning

APPROVED BY: BANTEN GOVERNER

Hj. RATU ATUT CHOSIYAH

LOCATION DIAGRAM

Cultivated area

Protected area

IndustAgricultureSettlementPlantationProduction Forests

Reclamation AreaMetallic MineralsNon-metallic Mi lCoals

Natural ParkReserveNational ParkProtected Forest


District RoadNational Road (Arterial)National Road (Collector)Regional Road (Collector)Toll RoadRailway line

3.5-20

Fig.3.5-9: Strategic Area Development Plan Map

Picture 4.8 Spatial patterns planning


District RoadNational Road (Arterial)National Road (Collector) Regional Road (Collector)Toll RoadRailway line

3.5-21

(3) Local Spacial Structure and Spatial Pattern Plans

Sunda Strait Bridgefoot Development Zone in Banten Province side is directly related to the two

regency/cities where the Sunda Strait Bridge is located, ie Cilegon City and Serang Regency. Policy

and strategy development overview of Sunda Strait Bridgefoot spatial zone in Banten Province is

strongly influenced by Cilegon and Serang spatial policies and strategy and its spatial structure and

pattern plans until 2030.

Table3.5-1: Land-Use Plan of Cilegon District

Land-use Ha % I. Protection Zone and Green Open Space

1.Protection Zone 3,023.70 17.23 2.Local Protection Zone 328.19 1.87

3.Green Area (Park, Green Line, Sport Arena/Stadium), Cemetery

960.59 5.47

4.Agriculture Open Space 1,415.22 8.07 Sub Total I 5,727.70 32.64

II Urban Cultivation Zone 1.Housing Zone 6,144.21 35.01 2.Trade and Service Zone 450.62 2.57 3.Government and Public Building Zone 22.00 0.13 4.Industry Zone 3,514.28 20.02 5.Port and Warehouse Zone 416.16 2.37

6.Tourism Zone (include Merak Kecil Island and Rida Island)

30.61 0.17

7.Mixed-use Zone 298.45 1.70 8.Integrated Terminal Zone 31.78 0.18 9.Final Disposal Area (Solid Waste Management) 18.64 0.11 10.Dangerous Waste Collection Area (B3) 50.00 0.28 11.Road Infrastructure 845.55 4.82 Sub Total II 11,822.30 67.36 TOTAL 17,550.00 100.00

Land use plan for Industrial Mainstay Zone has an area of 20.02% or the second largest after

residential area. To support the Industrial Area, required Warehousing and Port Zone development

plans with an area of 416.16 hectares or 2.37% of its total urban land use, and Trade and Services

Zone area of 450.62 hectares or 2.57% of its total land use of the city.

Industrial Zone development direction includes:

a) Develop environmentally friendly industrial zone in Pulomerak and Ciwandan Districts;

b) Existing small and medium industries in settlement zone can be maintained as long as no

negative impact and future efforts are made to agglomerating within 1 certain industrial

3.5-22

zones allocating in Citangkil, Cilegon , Cibeber, and Jombang Districts. Industrial estates for

micro, small and medium enterprises has stipulated for minimum area of five hectares;

c) Industries that are not on respective allocation should be relocated gradually; and d) Industrial activities that could potentially contaminate the environment is directed to manage

and monitor its waste more intensive and / or converted into a service activity. The Port and Warehouse Zone development direction consists of three collection ports and 17

Terminal for Internal Purposes (TUKS), include:

a) Collecting Port Zone Collecting port had been existed in Cilegon City include PT. Pelindo II Port, PT. Krakatau Bandar Samudera Port, and PT. Indah Kiat Port. In addition to the three ports, new ports will be developed in Warnasari Sub-district Citangkil District, located on the right side of PT. Krakatoa Daya Listrik Gas Power Plant. Planned port area is integrated with warehousing as supporting facilities.

b) Terminal Zone for Internal Purpose (TUKS) Except public port, Cilegon City has 17 TUKS. Warehouse zone development plans is directing to warehousing and non-pollutants production activities within port zone, instead of develop warehouse in the eastern zone of Cilegon (BWK V) to support Bojonegara Port development plan.

Services and Trade Zone development direction includes:

a) Wholesale carrier market development in south outer Ring Road Corridor and east Cilegon

Secondary Center.

b) Existing shopping center development must be controlled and further development directed

to East Cilegon (BWK V), South (BWK I and IV), and North zones (BWK II).

c) Develop and prioritize the professional services activities (lawyers, doctors, psychologists,

and the like); trade services (export-import activities, futures trading, and the like); and

financial services (banking, insurance, non-bank financial institutions, capital markets, and

the like) into Cilegon City Centre and East Cilegon.

d) Prioritizing professional services; trade services; tourism services (agents and travel

agencies, lodging, and the like); and financial services development zone activities in East

Cilegon , South Cilegon (south outer Ring Road ), and the primary arterial and secondary

arterial roads according to the designation.

e) Limiting office services concentration in Cilegon City Center zone, especially downtown

core zone.

3.5-23

Fig.3.5-10: Cilegon City Spatial Map (2010 – 2030)

REGIONAL SPATIAL

PLAN

Cilegon City Government

SPATIAL PATTERNS PLANNING MAPCILEGON CITY 2010-2030

INFORMATION: Railroad Road SUTET Administrative boundaries

I. URBAN CULTIVATION AREAResidential area Industrial areaPort/Warehouse areaTrade/Service areaGovernment and Public building Tourism areaIntegrated terminal areaOther area(East Cilegon Secondary Center)Waste landfillsIndustrial landfill siteMining & Quarring area

II. PROTECTED AREA & OPENGREEN AREA

Protected forest Local protected area Reservoir /Lake areaOpengreen areaIndustrial greenbeltAgriculturePublic cemeteryTown forest area

III. DISAATER-PRONE AREANatural fortressLocation of evacuationCamp sitesAlternative posts

Scale: 1:90000MAP ORIENTATION

CILEGON CHAIRMAN OF CITY

PARLIAMENT

H.Tb. IMAN ARIYADI S.Ag MM, MSI

H.ARIEF RIVAI MADAWI, SH, MSI

Source Peta Dasar Dinas Tata Kota Cilegon Tahun 2005

3.5-24

Fig.3.5-11: Cilegon City Built-up Zone Planning Mapn (2010 – 2030)

REGIONAL SPATIAL

PLAN

Cilegon City Government Scale: 1:90,000

RailroadRoadSUTETAdministrative boundaries

Halaman V-72

INFORMATION

Residential area Industrial areaPort/Warehouse areaTrade/Service areaGovernment and Public building Tourism area

Integrated terminal Mixed region(Eastern Clegon Secondary Waste landfillsIndustrial landfill sitePublic cemetaryTPU

Source:

Hasil Analisis Peninjauan Kembali RTRW Kota Cilegon

Gamber: 5-10

Region Development Plan

3.5-25

(4) Sunda Strait Area Bridgefoot in Baten Side

As states in .Master Plan of Acceleration and Expansion of Indonesia Economic Development 2011-

2025 (MP3I document, 2011). Java Island Economic Development Corridor is projectioned as driver

for National Industry and Services Provision. Responding to the master plan, Java Economic

Corridor has potential to progress in its value chain from manufacturing based economy to service-

based economy. This corridor has the potential to serve as the benchmark for economic changes,

evolving from primary-industry focus towards being more focused on tertiary-industry. Java

Economic Corridor will be on food and beverage, textile, transportation equipment, shipping, ICT,

and defense equipment.

Responding to the Java Economic Corridor direction, Banten Province has prepared proposed

investment opportunity offered to foreign and domestic parties to participate in some future projects,

such as:

a) Strategic Zone Development Project and Sunda Strait Bridge Development; b) A 300.000 Barrel capacity/day Oil Refineries Development Project; c) Bojonegara International Port Development Project; d) Karian Dam Development Plan in Lebak Regency, and some other Dams Development; e) Integrated Regional Final Solid Waste Management in Bojong Menteng; f) Electricity Infrastructure Development in Banten Province; g) Integrated Steel Mill Project (JV Krakatau-Posco) h) Zhejiang Investment (China): industrial estate, cement industry, railway, steel, manufacture,

etc. i) Cilegon – Bojonegara Toll Road Investment; j) Serang – Panimbang Toll Road Project; k) Railway Network Lane Development Plan in Banten Province; l) Tanjung Lesung Water Front City Development.

Strategic spatial plan issues analysis mentioned that Sumatera provide raw materials for goods,

whereas Java produce processing food and goods, and distributing raw materials. Therefore Banten

Province as the centre region and province between Java and Sumatera will have very important role

for processing and distributing industrial and agriculture products to and from Sumatera and Java.

Considering to those all above planned projects, some development areas to provide Services and

Trades as supporting economic activities also should be proposed around JSS bridgefoot zone. The

zone location potentially will be integrated with Anyer Coastal Tourism Zone, which will be

connected regionally through planned railway from Anyer to Bojonegara and Serpong. Services and

Trades Zone also can be developed within Tanjung Lesung Water Front City and designated trade

and services zone in Cilegon to attract investment is western zone of Banten Province.

3.5-26

Water and energy provision can be easily expanded through these sectors master plan and based

on total demand. Water can be obtained from some dams development such as Karian, Sindangheula,

and some water spring between Bojong and Cadasari. And energy can be provided from some

power plant development plan in Labuan and Suralaya, instead of geothermal energy resource from

Banten lake Caldera, Pulosari Mountain, Endut Mountain and Pamancalan on the southern part.

3.5-27

Fig.3.5-12: Spatial Plan of Banten Province (2030)

(Source : Regional Spatial Planning in Banten Province [2011] )

3.5-28

Fig.3.5-13: Water Resource Potential in Baten Province


3.5-29

Fig.3.5-.14: Energy Development Potential in Baten Province (Geothermal)


Fig.3.5-15: Oil and Natural Gas Reserve and Concession


3.5-30

3.5.3 Regional Spatial Planning in Lampung Province (1) Regional Policy and Strategy

1. Improving accessibility and equity social services throughout the economy and cultural provincial area

2. Maintain and realize environmental sustainability, and reduce natural disasters risk 3. Optimizing the spatial utilization of cultivated area in accordance with the carrying capacity

of the environment 4. Increasing productivity of leading sectors in accordance with land carrying capacity 5. Opening investment opportunities in order to improve the region's economy

- Develop an integrated commercial zone in the central Lampung, self-integrated zone (KTM) in Mesuji, Lampung industrial zone (KAIL) in South Lampung, as well as other potential zones as growth centers.

6. Alleviating poverty in less developed zone 7. Support functions for the defense and security area

(2) Spatial Structure Plan

Lampung Province functional hierarchy is vertically levelled in 4 (four) ordination service centers,

namely:

1. National Activity Center (PKN), which serves Lampung Province central region and / or its

surrounding areas in Southern Sumatra, National, and International. This service center is

located Bandar Lampung City.

2. Regional Activity Center (PKW), is the center to serves one or more Regency / City. The

center is developed with a higher intensity to stimulate economic growth in the surrounding

area.

3. Promotion Regional Activity Centre (PKWp), the center of local activities to be promoted or

recommended by the province in five years will be the PKW, considering that the city

function and role has had characteristic as activity center.

4. Local Activity Center, is independent cities in addition to primary and secondary centers is

being developed to serve one or more districts. Tertiary service center was primarily

developed to create a unit area space more efficiently.

(3) Spatial Pattern Plan

Cultivated zone in Lampung Province is the designation direction that consists of:

A. The Zone Allocation for Production Forest.

B. The Zone Allocation for Agriculture.

C. The Zone Allocation for Plantation.

D. The Zone Allocation for Fisheries

E. The Zone Allocation for Mining.

F. The Zone Allocation for Industry.

G. The Zone Allocation for Settlement.

3.5-31

A. Allocation for Forest Production Zone

Forest cultivated zone cover limited productive forest zone (HPT) and permanent production forests

(HP). Limited Production Forest is located in Lampung Barat Regency, while the permanent

production forests scattered in Way Kanan Regency, Tulang Bawang Regency, Lampung Tengah

Regency, Lampung Utara Regency , Lampung Timur Regency, Mesuji Regency and Tulang Bawang

Barat Regency, Pesawaran Regency and Lampung Selatan Regency.

B. Allocation for Agriculture Zone

Based on the analysis, the total area of the allotment area of agriculture by the year 2029 is 6351.90

km². The specific direction for wetland agricultural rice crop commodities production is directed

across Lampung Province, except Bandar Lampung. Further development of dryland agriculture is

directed throughout regencies on suitable land , except in Lampung Barat and Tanggamus Regencies.

C. Allocation for Plantation Zone

Zone extent for plantation designation until the year 2029 is 9645.35km². Some plantation

commodities of coffee, pepper, cocoa and coconut directed to the appropriate land in some regencies

such as Lampung Selatan Regency , Lampung Timur Regency , Lampung Utara Regency , Lampung

Barat Regency , Pringsewu Regency, Tulang Bawang Regency , Tulang Bawang Barat Regency ,

Mesuji Regency, Pesawaran Regency and Tanggamus Regency. While for large-scale plantations is

directed for sugar cane, rubber and palm oil are producted in Lampung Tengah Regency, Lampung

Selatan Regency , Lampung Utara Regency, Way Kanan Regency, Mesuji Regency, Pesawaran

Regency , Tulang Bawang Barat Regency and Tulang Bawang Regency.

D. Allocation forFisheries Zone

Marine fishery resources potential is huge and is divided into three regions, along the east coast

(Java Sea), the Sunda Strait (Lampung Barat Gulf and Semangka Gulf) and along the west coast. For

fisheries distribution, fish is dominated by various types of economically important fish such as big

eyes tuna, setuhuk, striped setuhuk, blue fin tuna and albakora which includes west coastal areas ,

Lampung Bay in Pesawaran, Semangka Gulf in Tulang Bawang Barat Regency and other Sumatra

East Coast. For brackish water fishery cultivation is developed in the East coast carried out with

great attention to preserve mangroove forest , in order to maintain the coastal and marine ecosystems.

For cultivation ponds can be developed in entire region of Lampung Barat Province, except Bandar

Lampung City and Metro City. Zone extent for this fishery is 567.50 km ². Fisheries port is

developed in Lampung Barat Regency (Kuala Krui and Bengkunat), Bandar Lampung City

(Lempasing), Tanggamus Regency (Kota Agung) and Lampung Timur Regency (Labuan Maringgai).

Marine tourism is developed along the coast of Lampung Barat, especially along the Sumatra coast.

E. Allocation for Mining Zone

3.5-32

Distribution of mining potential in Lampung Province include:

• Tanggamus Regency (reserve) include ziolit (437.67 million m3), gold (415,677 tonnes),

coal (867,000 tons), geothermal (400 Mw), bentonite (88.7 million m3) and granite (62.5

million m3).

• Lampung Barat Regency (reserve) include andesite (1,000,000 m3), gold (16,783 Ha),

geothermal (430 Mw), trass (2.75 million m3), diatomea (170,000 m3), and perlite (10.5

million m3).

• Lampung Utara Regency (backup), and site (97.4 million m3).

• Way Kanan Regency (reserves) include coal (131.25 million), gold (829,680 tonnes),

marble (615.8 million m3), kaolin (2.929 million m3) and precious stones (40,000 m3).

• Mesuji Regency (backup), coal (360,000 km2).

• Tulang Bawang Barat Regency (reserve) quartz sand (3.6 million m3) and oil and gas (in

research).

• Lampung Tengah Regency (reserve) include andesite (443.26 million m3), gold (102,875

tonnes), coal (2,358,855 tons), iron ore (68,457 tons), fedspar (389.35 million m3) and

granite (980.6 million m3 ).

• Lampung Timur Regency (reserve) include andesite (3,449,511 m3), quartz sand (32.575

million m3) and petroleum (in research).

• Lampung Selatan Regency (reserve) include andesite (87.34 million m3), zeolite (8,000 m3),

coal (5,000 tons), iron ore (1.902 million tonnes), iron sand (5071 m3), gold (10732.5 tons),

manganese (243 000 tonnes), granite (287 million m3).

• Pesawaran Regency reserve for coal and geothermal whereas the deposit are in the research

stage.

F. Allocation for Industrial Zone

Up to present situation, the industrial park development will be maintained as the industrial zone is

194.4 km².

Large industries, especially high-tech industry is directed to be developed in Lampung Selatan

Regency , Lampung Tengah Regency , Tulang Bawang Regency, Mesuji Regency , Lampung Timur

Regency , Tanggamus Regency, Lampung Utara Regency and Pesawaran Regency.

G. Allocation for of Settlement Zone

Area of planned residential zone is 2321.83 km².

• High density residential zone will be directed in Bandar Lampung City, Metro City,

Lampung Tengah Regency , and Pringsewu Regency.

• Medium density residential zone will be directed in Pesawaran Regency , Lampung Selatan

Regency , Lampung Utara Regency and Tulang Bawang Barat Regency.

3.5-33

• Low density residential zone will be directed in Lampung Timur Regency , Tulang Bawang

Regency, Mesuji Regency , Way Kanan Regency, Lampung Utara Regency Tanggamus

Regency and Lampung Barat Regency .

(4) Province Strategic Zone Strategic Zone for the economic interests is include:

1) Bandar Lampung Metropolitan zone, is based on efforts to create a compact , efficient and

maintained city to avoid activities accumulation in only one region . Provincial

government authority is initiating from the preparation of Detailed zone Strategic Plan, the

preparation of integrated urban infrastructure development DED for Bandar Lampung

Metropolitan City, development implementation and supervision.

2) Integrated Panjang Harbour zone in Bandar Lampung. Integrated port area consists of land

and water surrounding the ship rests, docked, passengers embarcation and debarcation,

goods loading and unloading are equipped with the safety of shipping, port support

activities, and inter transportation modes. Provincial government authority is initiating the

preparation of Strategic Zone Detail Plan, preparation of zone infrastructure DED,

financing development and supervision.

3) Bakauheni zone has a strategic value as a gate of Sumatra from Java direction. Provincial

government authority is initiating the preparation of Bakauheni Strategic zone Detailed

Plan, preparation of infrastructure masterplan and regional infrastructure DED up to the

implementation of development and supervision.

4) Agropolitan Zone in Lampung Tengah Regency, Tanggamus Regency, Lampung Barat

Ragency, Lampung Selatan Regency , Pringsewu Regency, Lampung Utara Regency ,

Lampung Timur Regency , Pesawaran Regency, Mesuji Regency , Way Kanan Regency,

Tulang Bawang Barat Regency and Tulang Bawang Regency. Provincial government

authority is initiating preparation of Agropolitan Strategic Zone Detail Plan, preparation of

integrated infrastructure region development DED agropolitan zone up to development

implementation and monitoring.

5) Integrated Self Containment City (KTM) in the Mesuji Regency. Through its development

is expected to distribute the economic centers, which will not be concentrated in Bandar

Lampung City. Provincial government authority is initiating preparation of Detail Zone

Strategic Plan, preparation of within zone masterplan sectors and utilities .

6) Bonded shrimp ponds zone in Tulang Bawang Regency and Mesuji Regency . There are

several large companies and community farms in the zone, is one of the largest pond in

3.5-34

Indonesia. Associated to strategic zone establishment is , the Provincial government

authority is initiating preparation of Detail Plan for Strategic Zone and area management.

7) Agro Minapolitan Zone in Lampung Barat Regency, Lampung Selatan Regency, Lampung

Tengah Regency , and Lampung Timur Regency . Associated with the establishment is

strategic area, the Provincial government authority is initiating preparation of Agropolitan

Strategic Zone Detail Plan, preparation of DED zone infrastructure until its management.

(5) Sunda Strait Area Bridgefoot in Lampung Side Master Plan of Acceleration and Expansion of Indonesia Economic Development 2011-2025 (MP3I

document, 2011) directing Sumatera to become The Center for Production and Processing of Natural

Resources As The Nation’s Energy Reserves. Sumatra’s strategic location can propel it to

become,“The Front Line of The National Economy into The European, African, South Asian, East

Asian, and Australian Markets”.

The corridor thrives in the fields of economic and social development. Its main economic

activities are palm oil, rubber and coal. These activities have great potential to become main

economic drivers. Steel production which is concentrated in Banten is also expected to become one

of the drivers of growth in this corridor, particularly after the completion of the Sunda Straits Bridge.

Regarding to Strategic Zone Development Plan of Lampung Province related to Sunda Straits Bridge

development in the Spatial Planning document, some economic strategic zones are proposed in

Lampung Selatan Regency include:

a. Realization of Sunda Strait national strategic zone include:

• Formulation of Sunda Strait zone masterplan;

• Creation of Sunda Strait zone DED;

• Sunda Strait zone infrastructure developmentAgropolis zone; which those all are

central government authority.

b. Formulation for Masterplan and infrastructure development and Terminal for Agribusiness

Sidomulyo Zone Penengahan

c. Bandar Lampung Metropolitan zone;

d. Agro Minapolitan (fish pond and processing) zone;

e. Bakauheni Zone zone:

• Formulation of Masterplan for Bakauheni Zone;

• Arrangement of the area around bridge foundation Sunda Strait; and

• The zone infrastructure development.

f. High Tech Industry Zone:

• Lampung Industrial Zone development (KAIL);

• Formulation of Lampung Industrial masterplan;

• Formulation of Ketapang Industrial Estate masterplan;

3.5-35

• Formulation of container terminal zone and Katibung Industrial masterplan;

• Construction of industry and warehousing supporting infrastructure.

g. Realization of Merbau Mataram strategic zone via:

• Formulation of coal terminal zone masterplan;

• Steam power plants development; and

• The zone infrastructure development.

Analyzing the site location indicated by the Lampung Selatan Regency Spatial Pattern Plan, the

zones area dedicated for economic activities are:

a) Industrial zone is planned in area of 1.673 ha, including large scale industry, medium scale

industry and small scale industry.

b) Fishery zone will cover more or less of 19.607 ha area including:

• designation of fishing zone

• designation of aquaculture zone

• designation of of fisheries processing zone

• minapolitan zone

• fisheries infrastructure

c) Other potential zone for agroprocessing, service and trade are essentially to be taken into

account to be provided close to Bakauheni Port Zone. The proposed potential for the site

location will be in Bangun Rejo Village, Ketapang District, Lampung Selatan Regency.

Initial field survey shows that the proposed zone for agroprocessing, service and trade

activities are in Industrial Zone and Dry-land agriculture zone as shown in the figure is in

accordance with Lampung Selatan Spatial Pattern Plan. This zone is situated to the east of

Lampung Selatan Regency. To be noted in this area that water provision will be crucial

problems during dry season.

3.5-36

Fig.3.5-.16: Spatial Planning Map of Lampung Province

Railway plan

Spatial structure planning

map

Scale 1:1,500,000

BoundarieProvincial BoundariesDistrict BoundariesRiver

HubNational hubActivity center areaPromotional activity center Center of local activity

Road/Railway networkArterial (main)Collector (main)Cross-national

Toll road plan

Local (main)Railway

Map situation; Lampung Province

Source:

REGIONAL SPATIAL PLAN OF LAMPUNG PROVINCE

3.5-37

Fig.3.5-17: Land-use Planning Map in Lampung Province

Plantation area allocation

Scale 1:1,500,000

Spatial Pattern Planning

Lampung Province

REGIONAL SPATIAL PLAN OFLAMPUNG PROVINCE

Source:

Map situation; Lampung Province

Provincial BoundariesDistrict BoundariesRiver Arterial (main)Collector (main)Cross-national

Toll road plan

Local (main) Railway

Provincial CapitalDistrict/City Capital

Boundaries

Protected AreasRailway plan

Forest/Natural reservesProtected forestRegional Plantation allocationProtected areaProtected local area

Cultivated AreasProduction forest area allocationResidential area allocationIndustrial area allocationFishery area allocation

Mining areaRegional tourism area

Farming area allocation

3.5-38

Fig.3.5-.18: South Lampung District Regional Development Plan Map

Government of Lampung Selatan District

Regional Spatial PlanLampung Selatan District

Spatial Patterns Planning MapLampung Selatan District

Geography Grid and Grid UTM

Sea-level

INFORMATION

District Capital (K b )District Capital (K )

CONNECTIOArterial Collector Local roadRailroad Terminal Type

PROTECTED Protected forestCommunity forest

Production CULTIVATED

Dryland farmingAgricultural PlantationAirport areaPort areaTourism areaFishery

Head Officer of Lampung Selatan District

CoastADMINISTERIAL CAPITAL

River Watershe

ADMINISTERIAL BOUNDARY WATER BOUNDARYProvince District District

(Kab)

(Kec)

PLANFreeway Highway planNational road Railroad planShipping line

SETTLEMENT AREAUrban Trade and Industrial area Other uses

Large stationNational airportLocal airport

Terminal Type ATerminal Type BTerminal Type C

3.5-39

Fig.3.5-19: Strategic Development Plan in South Lampung District

Government of Lampung Selatan District

Regional Spatial PlanLampung Selatan District

Strategic Area Development MapLampung Selatan District

Geography Grid and Grid UTM

Sea-level

INFORMATION

District Capital (K b )District Capital (K )

ADMINISTERIAL CAPITAL

ADMINISTERIAL BOUNDARYProvince District District

CoastRiver

WATER BOUNDARY

CONNECTIOArterial Collector Local roadRailroadTerminal Type

PLANFreeway Highway planNational road Railroad planShipping line

Large stationNational airportLocal airport

Terminal Type A Terminal Type B Terminal Type C CargoTerminal

Head Officer of Lampung Selatan District

3.5-40

3.5-41

3.5.4 Industrial Estate 3.5.4.1 Overview For the construction of Sunda Strait Bridge, it is necessary to prepare a broad temporary construction area and some equipment, including a dock for constructing a caisson, power sources for welding, etc., and water purification equipment for producing concrete and cleansing products. So that such temporary construction area and equipment will be utilized after the construction of Sunda Strait Bridge and industrial complexes can be constructed based on them, this chapter clarifies the equipment and area required for the construction of Sunda Strait Bridge, briefly describes the industrial complexes around Sunda Strait Bridge, and discusses measures for improving existing industrial complexes. 3.5.4.2 Background and necessity of the project (1) Development of industrial complexes based on the construction of a bridge In order to construct Sunda Strait Bridge, it is necessary to prepare a broad temporary area for producing bridge parts, and large equipment and devices. The major parts of a suspension bridge are caissons, towers, cables, stiffening girders, and anchorages. The production of these parts requires a plant ship for casting concrete, a water plant ship, a floating crane, other cranes including a gantry crane, trailers, dollies, and mooring equipment. Required utilities include the power sources for welding and water purification equipment for producing concrete and cleansing products. Major components, necessary devices and equipment are shown in the following table.

3.5-42

Table 3.5-2: Major components of a long large bridge Component of bridge Picture of Component

Caisson *A caisson is submerged in

the sea and functions as a bridge base.

Tower

3.5-43

Cable

Stiffening Girder

Anchorage

(Source: Produced by the research team with reference to “photos of the upper parts of Seto Ohashi Bridge under construction”)

3.5-44

Table 3.5-3: Major Facility/Equipment

Major Facility/Equipment Picture of Major Facility/Equipment

<For constructing a caisson> ・Concrete Plant Vessel ・Waterlogged Boat

<For constructing a caisson> ・Dock

(Source: Produced by the research team with reference to “photos of the upper parts of Seto Ohashi Bridge under construction”)

As for the existing industrial complexes, which will be described in the following section, infrastructures for water supply, electric power, and roads are poor, and it is necessary to enrich them. For the construction of Sunda Strait Bridge, water treatment equipment needs to be installed for securing good-quality water, and it will be possible to secure the source of water, which is an issue for on-site operation. Electricity outage can be coped with by developing new power sources utilizing low-rank coal and geothermal energy, which are described in Section 3.7, and improving electric power transmission lines. The improvement of industrial complexes before the construction of a bridge above the strait is effective from the aspect of infrastructure development, too. As mentioned above, the construction of Sunda Strait Bridge requires a broad area and large equipment and devices. As of now, there are no plans for a temporary plant for constructing a large bridge, and it is necessary to design a plan considering such a large temporary area for constructing Sunda Strait Bridge. If there are no plans for the construction of Sunda Strait Bridge considering a temporary area, the transportation of a large amount of materials for bridge construction may disturb existing distribution networks, and worsens the chronic traffic jam in Indonesia.

3.5-45

As mentioned above, the construction of Sunda Strait Bridge requires a broad area and large equipment and devices. By utilizing them, it is possible to nurture new industries. (2) Surrounding industrial zones The existing industrial complexes in the vicinity of Sunda Strait Bridge include the two industrial complexes in Banten. The following table outlines them.

Table 3.5-4: Outline of MCIE Modern Cikande Industrial Estate (MCIE) Location 68 km to the west of Jakarta, about 1 hour via Melac Expressway (Chujun

Exit), 75 km (about 1 hour 15 minutes) from Jakarta Port Host of development and operation

Modern Group (local capital)

Year of start of operation

1992

Area of development site

500 ha

Price Land: 30-35 US$/m2 District: Min 3,000 m2 Rental factory: 3.5 US$/m2/month Area: 864 m2

Utilities Electricity: PLN (120MVA) Water: PAM (2,000L/s)

Number of participating firms

130

Major Japanese firms Hitachi, Fujifilm, Yamatogawa Industry, Nippon Seiki, Mitsuba, YasunagaRemarks There are rental factories and employees’ plants.

Located in the vicinity of Bojonegara Port, which is to be constructed. Contact information PT.PUNCAK ARDIMULIA REALTY

Jl.Raya Serang km. 68, Cikande, Serang Tel: (0254)401605 Fax: (0254)401830

Table3.5-5: Outline of KIEC Krakatau Industrial Estate Cilegon (KIEC) Location 100 km to the west of Jakarta, about one and a half hours via Merak

Expressway (Cilegon Exit), 6 km (about 5 min) from Chigadin Port (government-run iron-making mill port)

Host of development of operation

PT.Krakatau Steel Industrial Estate Cilegon

Year of start of operation

1983

Area of development site

450 ha

Price Land: 50-60 US$/m2

3.5-46

District: Min 5,000 m2 Utilities Electricity: 3,400MW

Water: 2,000L/s Natural gas Port: 180,000DWT Communication system: Optical fibers Hotels, golf courses, and office buildings

Number of participating firms

71

Major Japanese firms PT. Lautan Otsuka Chemical, PT.Sumimagne Utama (Sumitomo Group), PT. Kokusei Keiso, PT. Asahimas Chemical

Remarks Main fields are iron, steel, petrochemistry, food industry, and chemical engineering

Contact information PT.KRAKATAU I. NDUSTRIAL ESTATE CILEGON Wisama Baja 8th Floor, Jl.Gatot Subroto Kav.54,Jakarta Tel:(021)5200820 Fax:(021)5200814 Head office :Wisma Krakatau,Jl.K.H. Yasin Beji No.6,Cilegon Tel:(0254)393232/393234 Fax:(0254)392440

In the field survey, we interviewed Japanese firms in Banten (PT Asahimas Chemical and PT SANKYU) and in Lampung (Kirin Mion Foods and Toyota Bio Indonesia), and confirmed the problems and risks with the operation there. As a result, it was found that in Lampung, it is important to secure water sources and cope with electric outage, and the surrounding road infrastructure is fragile. In Banten, there are no significant problems with electric power, but it is important to secure water sources like in Lampung. In the industrial area around the Sunda Strait, it is necessary to enrich the infrastructure for water, electricity, and roads. Especially, the industrial complex around Cilegon can be improved through the mutual supply of utilities and materials among factories.

3.5.4.3 Necessary items for determining project contents, etc.

The temporary construction area required for the construction of a bridge is as follows, mainly considering the area for constructing caissons. In the case of Akashi Bridge, one caisson is 80 m in diameter and 70 m in height. If 8 caissons are constructed at the same time, total width becomes 120 m × 8 = 960 m, and necessary width is about 1 km. In the case of Akashi Bridge, the necessary area, including a temporary area, is about 2 km × 1 km. In the case of Sunda Strait Bridge, more area is required.

3.5-47

Fig.3.5-20: Diagram of the area for constructing caissons

(Source: Study team)

On the other hand, in order to improve existing industrial areas, it is effective to research the

possibility to streamline the existing industrial complexes, especially for chemical engineering,

around Cilegon, through the mutual supply of materials and utilities.

3.5.4.4 Outline of the project plan

A broad land is required for the temporary area for the construction of Sunda Strait Bridge. It is easier to acquire land in Lampung than land in Banten, where coastal industrialization has already progressed, and so Lampung is appropriate, especially the land around Ketapang is a promising candidate. Because the area around Ketapang have a development plan as a industrial complexes and are included in space planning in Lampung, this project share the vision with Lampung. In addition, it is important to link the project with Lampung’s industrial complexes plan. A temporary factory area requires space for makeshift jetties, power supply equipment, water supply equipment for RO, etc., wire processing plants, assembly and storage of caissons, etc. For the maintenance and management of the bridge, it is necessary to build an R&D center for collecting, inspecting, and studying samples, an operation control room, and facilities for training operators. These can be constructed in part of the industrial complexes.

In parallel with the construction of industrial complexes in Lampung for bridge construction, we

plan to integrate the industries that consume resources and energy in Lampung, optimize industrial

complexes in Banten, and promote electricity-saving industries, such as food processing, to develop

urban industries and shift to more energy-saving industries.

3.5-48

3.5-49

3.5.5 Airport / Airport City

3.5.1 Background and Necessity of the Project

(1) Project Scope, Primary Consumers

With privatization beginning in 2009 when the Aviation Act was revised, the Bandara Radin Inten II

Airport that is currently run by the provincial government of Lampung has PPP privatization planned.

The location of the Bandara Radin Inten II Airport is indicated in Fig.3.5-21, and in the case that it

becomes an international airport it is in a position where it would be able to substitute for the

Soekarno-Hatta Airport in disaster and emergency situations. Becoming an international airport and

development of the local area should lead to increased numbers of flights and economic benefits for

the surrounding area.

Fig.3.5-21: Location of the Bandara Radin Inten II Airport

The province of Banten, being near the capital region, can use the Jakarta airport for passenger and

freight routes to develop along with the region.

(2) Analysis of Current Situation, Future Predictions, Issues if not Implemented

The current state of the Bandara Radin Inten II Airport is as follows and the airport is already

operating at over 86% of its load factor as Fig.3.5-22.

- Total Area: 9.6 Ha

- Runway : 2,500m x 45 m (Upgrade to 3,000 x 65m)

- Status : IV Class Airport (Upgrade to II CLASS Airport-International Airport)

- Flight service: Lampung-Jakarta 12 flights per day.

3.5-50

Lampung-Batam 3 flights per week.

Lampung-Palembang to be be added

Lampung-Jogjakarta to be be added

- Capacity of waiting area in airport is around 200 persons and capacity of Boeing 737-200 s/d

737-400 is less than 120 s/d 140 persons. Within the departure time of 2 planes or less than 1

hour, it will be crowded with passengers as shown in the figure above. The same conditions

exist in the parking space due to its low capacity.

Fig.3.5-22: Load Factor

81.70%

84.84% 84.46%

80.00%

81.66%

86.46%

76.00%

78.00%

80.00%

82.00%

84.00%

86.00%

88.00%

2005 2006 2007 2008 2009 2010

Load Factor

(Source: Lampung Province Land-use Planning Materials)

For increase in passenger demand, as the following figure shows, demand increased by 366%

between 2005 and 2010, at an average annual increase of 29.97%.

Fig.3.5-23: Number of Passengers

174,167 194,832

335,093 366,658 416,066

552,796

713,125

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2004 2005 2006 2007 2008 2009 2010

Penumpang


3.5-51

Predictions for future demand based on economic growth at the same level as the past 5 years would

see 2,600,000 passengers in 2015 and 9,500,000 passengers in 2020.

With this predicted increase in the number of passengers, the Bandara Radin Inten II Airport will

surpass its capacity, and it is also clear that the weakness of the surrounding infrastructure will lead

to unacceptable traffic jams and crowding on local roads and in the terminal parking lot. In

particular, the national highway that runs past the airport is a key route leading to South Sumatra,

and traffic jams on key routes can be a major factor in disrupting economic growth in surrounding

regions.

(3) Effects and Impact In Case of Project Implementation

By renovating the Bandara Radin Inten II Airport, which with its current high usage rates should

become saturated due to economic growth, traffic routes can be improved within and around the

airport. Along with improved infrastructure from development in the area, this should clear up

traffic jams in the area and help economic growth. With the addition of international routes to the

airport, not only will it be able to act as a substitute for the Soekarno-Hatta Airport in emergencies,

the increased flow of good and people from overseas will help contribute to growth in the area as an

airport city.

(4) Comparisons with Other Options

Options to connect Lampung to other areas without expanding air routes include the possibility of

increased land routes through the Sunda Strait Bridge or expanded highways and railroads, but

considering the length of time until the Sunda Strait Bridge is completed and the current congestion

at the Bandara Radin Inten II Airport, finishing improvements quickly is a priority.

3.5.2 Studies Necessary to Determine Project Specifics

(1) Demand Prediction Method

The level of demand for the airport will be examined using the demand growth mentioned in 3.5.1

(2) as a base.

(2) Understanding and Analyzing Problems

At the current stage, there is already significant congestion at the Bandara Radin Inten II Airport

and in the surrounding area, so dealing with the backlog in creating and maintaining road

infrastructure in the area is a problem that must be dealt with even before improving the airport.

Also, if the airport is going to be renovated and the surrounding area built up as an airport city,

appropriation of the land in the area becomes an issue, which along with road infrastructure is an

issue at the national government level, and must be dealt with by the government.

3.5-52


It is important that the expansion of the airport itself is planned in coordination with the surrounding

area, so consideration should be given for not only the national and provincial government plans for

growth in the area, but also in coordination with the Sunda Strait Bridge and international ports for

collaboration between land, sea and air.

3.5.3 Project Plan Summary

(1) Basic Policy for Determining Project Specifics

When thinking of gateways to Lampung, the Sunda Strait Bridge, local harbours, and the Lampung

airport in particular are the keys to economic development, so renovations as an international airport

will be done with balance and cooperation between land, sea and air kept in mind. On the other

hand, Banten is close to the capital region, and can use a combination of the Jakarta airport and

existing harbours in collaboration with local development in order to grow.

(2) Specifications for Applicable Facilities

Currently, the plans being considered by the Lampung government for improvements to the

Lampung airport include moving runways away from the center, adding terminals, and adding

access routes, making for a plan as shown in Fig.3.5-24 below.

Figure 3.5-24: Improvement plan of the Lampung airport


<< RADEN INTEN II Airport Upgrading Master Plan >>

- Shift all of the existing buildings to the northeast area.

- Increase the number of buildings which are parallel to taxiway.

- Extend the runway length to s/d 3,500 m.

- Propose the separated access way.

3.5-53

- Equip the facilities at the hinterland side.

- Ensure the flight always in optimum condition.

- Enhance the carrying capacity / PCN existing runway.

(3) Details of Proposed Projects

Along with the master plan for upgrading the airport as shown above, building road infrastructure in

the local area is also necessary, and will require collaboration with the area and consideration for

local residential, industrial and agricultural areas. The local area plan will be a project to plan,

develop and optimize long-range routes from the airport along with the road and rail infrastructure

for central locations such as South Sumatra, Bandar Lampung, the Sunda Strait Bridge, harbours and

industrial areas.

(4) Issues and Solutions

The creation of transport infrastructure in the area necessary to carry out development centered on

the airport is not progressing, and studies and plans for the surrounding area necessary to planning

have not been carried out either. With the project feasibility study to be carried out based on the

presidential regulation regarding the Sunda Strait Bridge, plans are to examine the strategic areas for

both provinces, but since the strategic areas do not cover the entire province, works of a public

nature such as airport and city development are being carried out at a provincial government level,

and there is a need to develop comprehensive plans considering airports, harbours, bridges, traffic

routes, industry, agriculture and energy.

3.5-54

3.6-1

3.6 Energy

3.6.1 Overview As for the electric power situation in Indonesia, the demand for electricity is estimated to increase by

9.0% annually on average (*1) until 2027. This demand will be satisfied by coal and geothermal

power.

Fig.3.6-1: Forecasted demand for electric power

(Source: RUPTL produced by PLN in Indonesia “Electricity Supply Plan”)

In addition, the Indonesian government enacted the National Energy Policy (Presidential Regulation

No.5/2006) and specified the energy mix for the primary energy in 2025 as shown in Fig.3.6-1 (*2).

They aim to increase the ratio of coal energy from 23.5% (*3) in 2006 to 33% in 2025. The target

ratio of geothermal energy for 2025 is 5%, but it is noteworthy that the second crash program

produced in Jan. 2010 specifies that geothermal energy will account for 41.7% (3,960 MW) of the

power source to be developed (about 9,500 MW) (*2). (see Table 3.6-2)

Table.3.6-1 National Energy Policy (Presidential Regulation No.5/2006) 2025 Target Values (%) Natural Gas 30

Coal 33 Oil 20

New/Renewable Energy

Biofuels 5 Geothermal 5

Other (including Nuclear) 5 Liquefied Coal 2

(Source: e-NEXI, the Apr. 2011 issue)

________________________________________________

(*1) RUPTL produced by PLN “Electricity Supply Plan”

(*2) e-NEXI, the Apr. 2011 issue

(*3) Coal Note, the 2011 issue

3.6-2

Table.3.6-2: Outline of Crash Program First crash program Second crash program

Development years 2006-2009 2010-2014 Development method PLN: 100% PLN: 44.3%, IPP: 55.7% Electric power output Approx. 10,000MW Approx. 9,500MW

Purposes Emergency power development Post-petroleum measures

Emergency power development Diversification of electric power Introduction of new renewable energy

Power source category Coal: 100%

Geothermal energy: 41.7% Hydraulic power: 12.6%

Coal: 35.6% Gas: 1.1%

Gas combined cycle: 9.0%

Legal reasons Presidential Regulation No.

71/2006

Presidential Regulation No. 4/2010 Edict of the Minister of Energy and

Mineral Resources 2010, No. 2 (Edict 2010, No. 15 revised)

(Source: e-NEXI, the Apr. 2011 issue)

According to IEDC, the palm oil is lined up as priority industry. And the use as bio fuel is suggested

in the IEDC and MP3EI.

Fig.3.6-2：Value Chain of Palm Oil

( Source: MP3EI )

This chapter suggests that electric power should be generated by utilizing geothermal energy and

coal, especially low-rank coal, in South Sumatra, including Lampung, and new electricity consuming

industries should be created in this region. Particularly, the details of power generation via coal and

geothermal development are elucidated in 3.6.2 and 3.6.3. In Apr. 2010, the “Java-Sumatra power

line project” was signed as a yen-loan-financed project of JICA, and it will become possible to

transmit the surplus electric power generated through the new electric power development in South

Sumatra to the Java.

3.6-3

3.6.2 Coal

(1) Background and Necessity of the Project 1) Analysis of Current Situation

First, coal is positioned as an important industry in Sumatra according to the Indonesia Economic

Development Corridors plan led by the Ministry of Economy, Trade and Industry.

Also, according to “the Master Plan for the Acceleration and Expansion of Indonesian Economic

Growth (MP3EI),” which the Indonesian government formulated based on the IEDC framework,

large quantities of coal reserves have been confirmed in South Sumatra including Lampung Province.

The amount of coal reserves in South Sumatra account for approximately 90% of all coal reserves on

Sumatra, and around 45% of Indonesia as a whole. Specifically, South Sumatra has 47.1 billion

tons of coal reserves, and Indonesia overall has 104.8 billion tons.

Fig. 3.6-3: Coal Locations

(Source: MP3EI)

However, most of the coal found in Sumatra is low quality which has a low Calorific Value , and

this trend is significant when compared to other regions in Indonesia as shown in the figure below.

Containing a large proportion of low quality coal is one of the reasons that coal production on

Sumatra accounts for only 10% of total coal production in Indonesia. To put a number to it,

Sumatra produces around 20 million tons of coal annually.

3.6-4

Fig. 3.6-4: Calorific Values (CV) of Coal in Different Regions

(Source: MP3EI)

2) Project Scope

As the above analysis of the current situation indicates, large coal reserves are confirmed in South

Sumatra, but low-rank coal accounts for a large portion of it, and so production is limited compared

to the amount of coal reserves. Therefore, how to use this low-rank coal effectively becomes an

important issue for the South Sumatra region. That is why this project focuses on effective usage

of low-rank coal in South Sumatra, as indicated below.

3) Primary Consumers

Uses of low-rank coal include the usage for heat and chemicals, but in this report, power generation

possible with low-rank coal is considered the primary consumer section.

4) Future Predictions

As mentioned in chapter 3.6.1, Indonesian demand for power in general is expected to increase an

average of approx. 9.0% annually until 2027. This increase will be primarily supported by

geothermal and coal power. Also, as shown in table 3.6-1, the percentage of energy accounted for by

coal was set at 33% by 2025 in the National Energy Policy (Presidential Regulation No.5/2006).

5) Issues if not Implemented

In the case that power generation taking advantage of the potential of the coal reserves found in

South Sumatra as described in this report is not implemented, it is likely that there will be no way to

increase the power supply, thus making it impossible to entice new industries to Lampung province

and further industrialize.

6) Effectiveness and Influence of this project

For Indonesia, effective use of the low-rank coal in the South Sumatra region for power generation is

3.6-5

important for the electricity supply in this region, and will fulfill a role in helping develop the

industry in the region. Also, with the high economic growth rate in Indonesia as a whole it is likely

there will be shortages in the electricity supply. So surplus power from Sumatra could be diverted in

particular to Java where power consumption is high, thus benefitting Java as well.

Effects of implementation of this project for Japan would include, as debated in the ministerial

meeting on package-infrastructure international projects, using Japan’s excellent clean-coal

technology to contribute to solving issues at a global scale by reducing an environmental burden that

arise from the demand for coal fired power generation that is predicted to continue to increase,

particularly in Asia.

Also, low-rank coal accounts for over half the recoverable coal reserves confirmed worldwide. As

indicated in Table 3.6-3 below, there are 404.7 billion tons of anthracite and bituminous coal and

456.1 billion tons of sub-bituminous coal and lignite, with low-rank coal accounting for around 53%.

Therefore, having a record of effectively using the low-rank coal found in large quantities in South

Sumatra will be very valuable to Japanese companies in the future when it comes to using low-rank

coal worldwide.

Table 3.6-3 Global Coal Reserves (Proved Recoverable Reserves, 2010)

(Source: BP Statistical Review of World Energy)

3.6-6

7) Comparisons with Other Options

Using high-rank coal is also a possible option for using coal in the South Sumatra region, but

development of high-rank coal has already progressed, and in addition to even more efficient use of

high-rank coal, effective use of the low-rank coal of which there are large reserves is also important

in order to increase the energy available to Indonesia.

(2) Studies to determine the Project specifics 1) Demand Forecasting:

As indicated in table 3.6-1, the Indonesian government guideline as stated in the National Energy

Policy (Presidential Regulation No.5/2006) is to have coal account for 33% of energy by 2025,

which was used as a basis for demand predictions.

2) Understanding and Analyzing Problems

As mentioned in the analysis of the current situation, coal reserves in South Sumatra account for

45% of total Indonesian reserves. Despite all this coal located in South Sumatra, coal production

on Sumatra accounts for only 10% of total Indonesian coal production. Reasons for the low coal

production on Sumatra indicated in the MP3EI are summarized in 3 points below.

(a) Transport infrastructure is inadequate, and with coal mines being located in the center of

the island costs increase. Also, the ports do not have sufficient capacity.

(b) Most of the coal reserves on Sumatra have a low calorific value. (see Fig. 3.6-4)

(c) There are no clear government guidelines, making land appropriation difficult, and

quality staff can’t be hired.

3) Examination of Technical Methods

As uses for low-rank coal, this project is suggesting mine-mouth power plants and reforming.

Transporting low-rank coal as-is to power plants is also a possible option, but transportation costs

are high compared to its calories as a fuel due to its weight and volume, making it inefficient as a

fuel source. Since there is also the possibility it will self-combust, transporting low-rank coal as-is

is a difficult prospect. Therefore a technology is desired that will allow low-rank coal to be

transported in a safe and efficient manner for use as electrical energy.

(3) Project Plan Summary 1) Basic Policy for Determining Project Specifics

The basic policy for this project is to effectively use resources in the South Sumatra region and

create new industries and business in Lampung province. As indicated in the Priority to Supply

3.6-7

Indonesian Mineral and Coal for Domestic Demand (Minister of Energy and Mineral Resources

Regulation No.34/2009), domestic supply within Indonesia will be prioritized for using low-rank

coal.

2) Specifications for Applicable Facilities / Details of Proposed Projects

The following 4 methods (i)-(iv) indicated in the chart below can be considered for uses of low-rank

coal. For the effective use of low-rank coal in South Sumatra, an appropriate method needs to be

selected at the detailed survey stage.

Fig.3.6-5: Uses for Low-rank Coal Flowchart

(i) Briquettes

This technique involves reforming low-rank coal and using a moulding process to make handling

easier by forming it into briquettes. Specifically, Kobe Steel, Ltd. has UBC (Upgraded Brown

Coal) technology.

(ii) Slurry

This technique involves artificially maturing low-rank coal and turning it into slurry.

Specifically, JGC has JCF (JGC Coal Fuel) technology.

(iii) Gasification

A technique for converting coal to gas, and combining it with combined cycle generation to make

an Integrated coal Gasification Combined Cycle (IGCC) generation system is being developed by

Mitsubishi Heavy Industries, Ltd. and Hitachi, Ltd.

(iv) Mine-mouth Power Plant

Building a power plant near a coal mine is what is known as a mine-mouth power plant. As

mentioned above, transporting low-rank coal as-is is difficult and energy inefficient, making

mine-mouth power plants an effective option.

3) Issues and Solutions

As mentioned above, difficulties with land appropriation is something without a simple technical

solution, and is an issue for this project.Support from Indonesian government organizations is

3.6-8

necessary to deal with the land appropriation problem.

3.6-9

3.6.3 Geothermal

(1) Background and Necessity of the Project 1) Analysis of Current Situation:

Indonesia has the most potential geothermal resources in the world, with estimates placing 40% of

global geothermal resources in Indonesia. The estimated amount is 27 GW, which would be

equivalent to 30 years of energy from oil.

However, as of 2010 there were only 7 geothermal plants operating in Indonesia. Government

incentives being comparatively less for geothermal energy compared to other energy sources has

been given as one reason for this. The 1997 Asian Financial Crisis slowing economic growth in

Indonesia and thus reducing energy demand is also a major factor.

Despite this, Indonesia has estimated annual growth in energy demand of 9.0% as mentioned

above since the Financial Crisis, so growth in energy demand is strong.

In 2003 the government established the Geothermal Law defining Indonesia’s policy to use

geothermal energy, which paved the way for geothermal development with national and local

government and the private sector (IPPs) all participating. Other related laws were quickly set up,

creating a system where development is supported both financially and through organizational

restructuring.

The following are the current main laws and regulations related to geothermal energy.

・New Geothermal Law No.27/2003

・Government Regulation No.59/2007 concerning Geothermal Business Activity

・Decree of Minister of Finance No.21/2010 Regulation on Renewable Energy Incentives

2) Scope

As mentioned above, Indonesia has significant potential geothermal resources, and the Lampung

province where the Sunda Strait Bridge is being constructed is a volcanic region that the Sumatran

fault passes through. Below we will discuss energy generation that takes advantage of Lampung’s

geothermal resources in order to create new businesses and industries in Lampung.

3) Primary Consumers

Since geothermal energy is produced and consumed locally in the region where it is discovered and

developed, it would be preferable to eventually have new industries made in Lampung consume the

geothermal energy produced.

4) Future Predictions/Methods for Demand Predictions

As mentioned in chapter 3.6.1, there is a predicted 9.0% annual increase in energy demand in

3.6-10

Indonesia, and with Presidential Regulation No.5/2006, the Indonesian government has set a goal of

having at least 5% of their total energy needs covered by geothermal energy by 2025. In addition,

as shown in see Table 3.6-2, the government has also started Crash Program II to develop 3960 MW

of geothermal energy between 2010 and 2015. There are also plans to make Indonesia a center for

geothermal energy research and development in the future.

For a long-term look from the investment side, former president of the Indonesian Geothermal

Association Herman Darnel Ibrahim calculated that if 28,000 MW were developed by 2050 that

would mean US$ 80 billion in direct investment alone.

As part of the land-use plans for Lampung and Banten provinces, the locations indicated in the

figure below have confirmed geothermal resources, and are under consideration.

Fig.3.6-6: Geothermal Resources in Lampung Province Land-use Plans

(Source: Based on Lampung Province Land-use Plans)

3.6-11

Fig. 3.6-7: Geothermal Resources in Banten Province Land-use Plans

(Source: Based on Banten Province Land-use Plans)

5) Issues if not Implemented

The export of fossil fuels is an important source of acquisition of foreign currency for Indonesia. If

increasing energy needs were met only with fossil fuels, not only would it be economically

inefficient, but for Indonesia, a net importer of oil, it would mean fuel shortages and inflated prices,

causing problems for energy stability.

There is also the concern that energy generation using fossil fuels will damage the environment,

affecting local develop in the area. Since Lampung also has ample agriculture and forestry

resources, geothermal energy is considered a good option to provide a stable energy source without

damaging the local environment.

6) Impact and Effect if Project is Implemented

For geothermal energy, it is preferable that it be used in the area near where it is developed, and this

characteristic gives it potential to contribute to regional development in areas removed from existing

cities. Through the development of geothermal plants, an economic ripple effect from developing

related industries and services in the area can also be anticipated.

3.6-12

Also, geothermal energy can contribute as a Clean Development Mechanism (CDM) incentive. If

geothermal energy becomes commonly used in Indonesia, it could potentially reduce carbon dioxide

by 100,900,000t at a cost of 0.439 dollars per ton.

7) Comparison with Other Options

As mentioned in chapter 3.6.1, the Indonesian government made their first Crash Program to build

10,000 MW of coal-fired power plants in order to meet energy needs. Coal-fired plants, in

particular those using low-rank coal, are mentioned above, but in addition to developmental coal

technology that won’t harm the environment, it is necessary to develop geothermal energy to bring

about continual development.

(2) Objectives to determine the Project components 1) Analyzing and Understanding Problems

a) Developing Legislation and Consistency with Existing Laws:

Although laws and regulations regarding geothermal energy development are progressing rapidly,

many laws were established from 1999 on without any consideration for consistency with existing

legislation, which could be an issue of major consideration for geothermal development.

For instance, according to a 2004 JOGMEC report, with the 2001 Local Government Act in

Indonesia, there was a shift to decentralization of authority with much of the central government’s

authority shifting to local governments, but it is unclear how this affects granting mining rights or

approval processes.

In the current Mining Act, mining rights and mine management is under the authority of the central

government, but for the transition period Government Regulation No.75/2001 concerning Mining

was released, transferring authority over mines to regencies ( kabupaten ) at the local level. Since

approval for development relies only on the decision of the regent, in the over 300

regencies( kabupaten ) that exist in Indonesia, there are some where obtaining mining rights is

simple and others where it is more difficult, and expenses necessary vary by region as well.

Currently, mining rights are being approved by local governments, but until the current Mining Act

is abolished, it will remain in effect along with other inconsistent legislation.

b) For Investment:

The electricity cost for renewable energy is higher compared to other energy sources, making it

uncompetitive. When considering investment recovery for businesses, creating legal incentives in

the form of tax breaks or subsidies is desirable.

3.6-13

Specifically, Indonesia’s state electric company PLN agreed to reduce electricity fees to 5 cents per

kWh for several geothermal IPPs, but in order for new plants to succeed as a business, pricing in the

area of 7-9 cents per kWh is preferable. Legislation to encourage investment in geothermal energy

is progressing rapidly, and it is possible laws will continue to change in the future.

c) For the Environment:

Regarding the environment, there is a necessity to consider both the natural and social environments.

Generally, there are concerns about affecting the local ecosystem, affecting underground water

sources during excavation, drying up hot springs, noise and vibration. All these areas must meet

the IFC’s Performance standards.

(3) Project Plan Summary 1) Basic Policy for Determining Project Specifics

The basic policy for this project is to make effective use of geothermal resources in the provinces of

Lampung and Banten, and respond to growing energy demands.

2) Specifications for Applicable Facilities/Details of Proposed Projects/Examination of Technical

Methods

As shown in Fig.3.6-8, there are 3 methods of geothermal power generation: dry steam, flash cycle,

and binary cycle. Summaries of each method are given below.

Fig.3.6-8: Geothermal Power Generation Methods

(i) Dry Steam

When the steam collected includes almost no hot water, it is possible to drive steam turbines with

simple moisture removal. This method is known as dry steam.

(ii) Flash Cycle

When the steam collected includes large amounts of hot water, a steam separator is used to collect

steam which is used to drive steam turbines. When the steam collected is separated with a steam

Power Generation Methods

(i) Dry Steam

(ii) Flash Cycle

(iii) Binary Cycle

3.6-14

separator and used to generate power it is a single flash cycle. When the hot water separated by the

steam separator is then decompressed to make steam and that steam is used to drive the steam

turbines, then it is a double flash cycle.

(iii) Binary Cycle

When only hot water can be collected, a liquid with a boiling point lower than water is used, and the

steam from that liquid being boiled by the water is used to drive the turbines.

Of the power generation methods above, different methods are appropriate depending on the

characteristics of the geothermal fluid, so there is a need to perform detailed studies before

determining the method of generation used.

3) Issues and Solutions

When developing underground resources such as geothermal energy, since the resources can’t be

confirmed directly, there is some general development risk involved. In order to reduce this

development risk, more detailed data is necessary from studies, and as indicated above as a problem,

consistency within the legislation and incentives such as subsidies are also desirable. The power

grid infrastructure is also currently imperfect, so there is a need to develop the power grid at the

same time.

Chapter 4

Evaluation of Environmental and Social Impacts


4-1

4.1 Present Environmental and Social Conditions and Situations (1) Present Conditions and Situations

a. Natural Conditions

■ Topology and Geography

The provinces of Banten (Java) and Lampun (Sumatra) lie across the Sunda Straits. In the province of

Banten, there is a river of Ujung flowing into the Java Sea. In the province of Lampung, there are large

rivers of Mesuji, Tulanbawang, Seputih and Sekanpung g flowing into the Java Sea whose sources of

rivers are the Barisan Mountains. The long mountains run in the west of the Sumatra Island (See Fig.

4-2, 4-3 and 4-4.).

Fig.4-1: View of the Lampung Bay from a city of Bandar Lampung

4-2

Fig 4-2: Construction Sites and Routes of Sunda Straits Bridge

Proposed Sites and Routes of Sunda Straits Bridge

Bakauheni Port

Merak Port

Anyer

0 10km

Sunda Strait

Lampung Province

Bantem Province

4-3

Fig. 4-3: Geography of Banten Province, Java

Ujung Kulon National Park

Rancau Donau Reserve

Hutan Wisata Carita Reserve

Ujung River

Cilegon

Merak Port

Java Sea

Sunda Straits

Bojonegara Port

Labuann

Seran (Capital)

0 20km

Krakatau Volcano

Rakatau Island

Indian Ocean

Lesung Cape

Carita

Anyer

4-4

Fig. 4-4: Geography of Lampung Province, Sumatra

Sekanpung River

Bukit Barisan Selatan National

Park

Way Kambas National Park

Bakauheni Port

Bandar Lampung (Capital)

Panjan Port

Metro

Krakatau Volcano

Mesuji River

Turanbawang River

Seputih River

0 20km

South Sumatra Province

Barisan Mountains

Lampung Bay

4-5

■ Climates and Sunda Starit’s Sea Conditions

The climate in Jakarta is shown on Table 4-1 as a representative of the provinces of Banten and

Lampung. Jakarta has a hot and humid tropical wet and dry climate (Aw) according to the Koppen

climate classification system. Despite being located relatively close to the equator, the city has

distinct wet and dry seasons. Wet seasons in Jakarta cover the majority of the year, running form

November through June. The remaining four months form the city’s dry season. Located in the

western-part of Indonesia, Jakarta’s wet season rainfall peak is January with average monthly

rainfall of 385 mm, and its dry season low point is September with a monthly average of 29 mm.

(Table 4-1)

Table 4-1：Temperatures and Rainfalls in Jakarta Parameter Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Year

Avg. high T ,� 31.5 32.3 32.5 33.5 33.5 34.4 33.3 33.0 32.0 31.7 31.3 32.3 31.8Avg. low T, � 24.2 24.3 25.2 25.2 25.4 24.8 25.1 24.9 25.5 25.5 24.9 24.9 25.0Precipitation, mm 384.7 309.8 100.3 257.8 133.4 83.1 30.8 34.2 29.0 33.1 175.

0 84.0 1,655.2

Avg. rainy days 26 20 15 18 13 17 5 24 6 9 22 12 187 (Source: World Meteorological Organization)

The meteorological data and information on the Sunda Strait are shown as below:

・ Deepest water depth: There are two deepest places across the Sunda Straits between Bakauheni

and Anyer /Merak. They are 119m and 126m (Source: Chart of the Sunda Straits).

・ Current directions and speeds in the Sunda Strait: The directions and speeds of predominant

surface current in the Sunda Straits are NE and 0.5 – 0.75 between November and March and 0.75

– 1.25 between May and September (Source: Indonesian Pilot, Second Edition, 1996). The

maximum speed recorded was 4.5 knots which was observed by a school training ship in

December 19, 2002.

・ Sea level and tides in the Sunda Strait: Marked seasonal changes in weather, such as occur

during monsoons, result in changes of sea levels due to the effect of wind and/or barometric

pressure. The tides in Sunda Strait are semi-diurnal, the mean spring range being more than 1.0

m (Source: Indonesian Pilot, Second Edition, 1996).

・ Sea surface temperature in the Sunda Straits: The mean sea surface temperature reaches a

maximum of between 28 and 29 � in April and May and a minimum of between 27 and 28 � in

September (Source: Indonesian Pilot, Second Edition, 1996).

■ Volcanic activities and earthquakes

The area lies in the middle of the earth’s most active seismic zones. When Gunung Krakatau erupted in

1982 in West Java, many people were killed and several million lost their homes, however, this

eruption was smaller compared to that of the 1883 eruption on Pulau Rakata (Source: Indonesia

Lovely Planet).

The area lies in the middle of one of earth’s most active seismic zones. Most of island s exception of

4-6

large parts of Kalimantan, have been subjective to destructive earthquakes. Table 4-2 shows giant

earthquakes happened in Indonesia.

Table 4-2: Giant Earthquakes and their Damages

Date occurred Place Magnitude (M)

Damages

1815.11.27 South Indonesia (Bali) - Death and missing: 10,300 1815.11.24 North-west Indonesia

(Central Sumatra) 8.7 Big tsunami (?)

1976.06.26 East Indonesia(Irian Jaya) ～6.9 7.1 ～Death and missing: 5,000 9,000(?) 1976.11.24 East Indonesia (Irian Jaya) 7.2 Death and missi ～ng: 100 6,000(?) 1992.09.29 East Indonesia (Flores) ～7.5 7.7 Flores Earthquake

Death and missing: 2,500 and more, Big tsunami: Max. 25m.

2004.12.26 North-west Indonesia (North Sumatra)

～9.1 9.3 Sumatra-Andaman Earthquake (Tsunami), Death and missing: 283,000-330,000(?), Injured: 100,000, Big tsunami: 30m and over, Big damages in Sri Lanka, India, and Thailand as well, The worst damages in the world history, Seismic are: 1,300 x 150km (World’s biggest class)

2005.03.28 North-west Indonesia (North Sumatra)

8.4～8.7(?) ～Death and missing: 1,300 1,700, Wide area earthquake (Tsunami was small.), The giants earthquake occurred south adjacent to the Sumatra-Andaman Earthquake.

2006.05.27 South Indonesia (Central Java)

6.4 Death and missing: 5,700 and over, Many towns and villages collapsed.

2006.09.30 North-west Indonesia (Central Sumatra)

～7.5 7.6 The deep earthquake, Death and missing: 1,200 – several thousands (?), Many injured, Padang , capital of the west Sumatra was largely damaged .

(Source: Giant Earthquakes in the World, (G-mal Seismic Research Series/E-005)

b. Public and environmental contaminations and pollutions

■ Air pollution

Same as other developing countries, air pollution has been manifested in densely populated big cities

in Indonesia. Especially air pollution due to exhausted gas from motorcars becomes serious in big

cites such as Jakarta, Surabaya, etc.. In such cities, NO2 and dust go beyond environmental criteria.

■ Water quality contamination

Many local and small factories are not equipped with waste water treatment facilities despite the

Indonesia rules and regulation being. The waste water is directly discharged into rivers, sea, etc. On

the other hand, sewage is directly discharged untreated into rivers, etc. since sewage works is not

provided. Therefore river and ground water are contaminated seriously. Since ground water is, in

general, used as domestic water, health damage is cared.

4-7

■ Solid wastes

Wastes which Indonesian laws and rules are applied to are hazardous and toxic ones usually referred to

B3 named after first letters of words meaning dangerous, hazardous and toxic in Indonesian. The B3

wastes cause big problems in Indonesia. However, there are not a few of specialists which can treat B3

wastes completely. Therefore, in Indonesia, the B3 wastes from factories are committed to certified

specialists handling harmful wastes or stored in the sites of factories.

In addition, Industrial wastes besides harmful substances are committed to waste collectors to reclaim

or burn them. On the other hand, domestic wastes are frequently disposed in rivers and open spaces. It

causes water pollution and contamination in Indonesia.

■ Soil contamination and impacts on ecology

In Java, deforestation and environmental damaging development cause large floods in Jakarta and

other big cities to smother with coastal mangroves. In Sumatra, deforestation became serious issues to

threaten inhabitants.

c. Land Use, Agricultures, Industries, Tourism, etc.

■ Province of Banten, Java

The coasts in the West Java are shoal and shallow, however, the port of Bojonegara which faces the

Java is only a deep-sea port in the Province of Banten. A new port of Bojonegara was planned as a

substitute of the Port of Tanjung Priok to handle container cargos. However, the project was suspended

due to economic crisis. There is a ferry terminal (Merak Port) at the north edge of the Banten’s coast,.

There are industrial estates at the south of Merak Port which many Japanese and other foreign

companies and industries are in operation. Industries such steel making, petrochemical, etc. are

gathered in there.

：Ujung Kulon National Park 160 km south west away from Jakarta, there are a peninsula and its

surrounding islands which are registered as world national heritages in 1992. Endangered species of

Javan rhinoceros, crocodiles, carabaos, etc. inhabit there. At the north of the peninsula, people enjoy

bird watching. Off the north coast at Banten, Plau Dua is one of Indonesia’s major sanctuaries (See

Fig. 4-5.). The west coast beaches of Java have some good swimming spots, sparkling white sands

and even a little surf. They’re popular with weekending Jakartans, though few travelers make it out

here. Anyer is the most upmarket village along the coastline. Trips to Krakatau and Unjun Klong

National Parks are be organized at Carita. Tanjung Lesung is a quiet and unspoiled peninsula with

beautiful beaches and traditional villages (See Fig. 4-6.) .

The legendary peak of Krakatau is the most famous of the world’s famous volcano, some 50 km from

the West Java coast and some 40 km from Sumatra. Fig A4-1 in Appendices shows land use in all over

4-8

the province of Banten.

Fig. 4-5: Land Use Map (North Area of Banten Province, Java)

(Source: Environmental Sensitivity Index Assessment Using Formosat-2 Satellite in Labuan Coastal, Banten)

Fig.4-6: Land Use Map (Middle West of Banten Province, Java)

(Source: Human pressure on marine ecosystems in the Teluk Banten coastal zone: present situation

and future prospects)

■ Province of Lampung

Outside the provincial capital of Bandar Lampun, the coffee plantations dominate the economy and

Sunda Strait

Java Sea

Bird Sanctuary (Plau Dua)

Sunda Strait

Lesung Cape

Carita

4-9

the unclaimed forests, closely followed by timber and pepper. There are also large areas of rubbers and

palm oil plantation (See Fig. 4-6 and Fig. A4-2 in Appendices). Agricultural products such as tapioca

cassava, coffee, small shrimps, oil palm, rubber, pepper, cacao etc. are being produced in the province

of Lampung. Among them, coffee is the most important agricultural product as a source of foreign

currency revenue which are exported from a international port of Panjang in the province of Lampung.

The Way Kambas National Park is one of the oldest reserves in Indonesia. It occupies 1,300 km2 of

coastal lowland forest around Sungai Way Kambus on the east coast o Lampung. The heavily logged

forest is home to endangered species of elephants, rhinos and tigers. The are around Way Kanan is

frequently visited by bird watchers. White-winged duck and Storm’s stork is the most remarkable

species here.

Today many Jakarta weekenders hop over to tour the Krakakau volcano or visit the elephants of Way

Kambas National Park. The rugged western seaboard is protected as the Bukit Barisan Selatan

National Park. Kalianda is a little town overlooking Lampung Bay 30 km north of the Bakauheni ferry

terminal. Nearby are pretty white-sand beaches and simple fishing villages. Tours to island launch

from West Java or from Kalianda. At the southern tip of Sumatra, the Bukit Barisn Selatan National

Park comprises one of the island’s last stands of lowland forests. The park is also famous for many

endemic bird species and several species of turtles. Of the 365,000 ha (3,650 km2) originally

designated as protected.

4-10

Fig. 4-7: Land Use Map (Lampung Province, Sumatra)

(Source: Facility Agro-forestry Development through Land and Tree Tenure Reforms in Indonesia, September 2005)

4-11

(2) Future Prospects w/o the Projects

If the projects are not realized, the following issues will be arisen:

■ Population and industries will concentrate in Java especially Jakarta. As the result of that, it will

lead to congestion, unhealthy environment, etc. .

■ Balanced development of Java and Sumatra can not be expected.

■ Gaps of economic power and wage differential between Java and Sumatra will be widened.

■ It will court conflicts and frictions among regions and tribes.

4-12

4.2 Environmentally-improved Effects by the Projects (1) Green House Gas (GHG) Reduction by Modal Shift a． Base for estimating reduction of GHG Installation of the Sunda Straits Bridge will increase cargos and passengers between West Java and

South Sumatra to mitigate traffic congestion and concentration of people and industries in West Java

such as Jakarta. Relating to global warning protection, GHG will be expected to reduce by modal shift

from air vessels/crafts to vehicles passing through the bridge shown below:

(i) Moving of cargos, passengers and vehicles by ferries -> Moving of cargos and passengers by

vehicles and trains passing through the bridge

(ii) Moving of cargo and passengers by air crafts -> Moving of cargos and passengers by

vehicles and trains passing through the bridge

(iii) Reduction of exhaust gases from vehicles by mitigation traffic congestion in cities and towns

in West Java of traffic congestion

Only for the modal shift from aircrafts to other vehicles (Above case of (ii)) , the CO2 reduction has

been roughly (order of magnitude) estimated in the study based on certain assumptions.

CO2 emission rates by vehicles, vessels and crafts which have been applied in the study are as shown

on Table 4-3.

4-13

Table 4-3 :CO2 Emission Rates by Vehicles, Vessels and Crafts No. Transportation

media CO2

Emission rate (Passenger) 1 Private car ～175 177 b),a) g-CO2/passenger-km 2 Bus ～53 56 b),a),b) Ditto. 3 Railway 19 b),a)

Ditto. 4 Private railway ～2 4 c),b)

Ditto. 5 High speed railway ～4 6 b)

〃 6 Sinkansen 14 c)

〃 7 Aircraft (Standard1,2) ～83 88 c)

〃 8 Aircraft ～109 111 b),a)

〃 (Cargos) 9 Private small truck 2,190 b) g-CO2/t・km

10 Private cargo truck 1,040 d) 〃 11 Small truck for business

use 660 d)

〃

12 Ordinary truck for business use

176 d)〃

13 Cargo truck for business use

158 b)〃

14 Railway (JR cargo) ～21 22 b),d)〃

15 Ferry 48 d)〃

16 Ship 39 b)〃

17 Coastal ship 37 d)〃

18 Aircraft 1,474 d)〃

Source: a)Climate Network、August, 2006 (Japan), b) Ministry of Environment , etc., 2004 (Japan), c) National Traffic Safety and Environment Laboratory (Japanese incorporated administrative agency), d) Ship and Ocean, 2002 (Japanese incorporated foundation)

Table 4-4 shows recorded numbers of passengers between Bandar Lampung and other cities (Jakarta,

Palembang and Batam) during 2004 and 2008. In addition, modal shift rates from aircrafts to other

crafts and vehicles have been assumed as shown on Table 4-5.

Table 4-4: ～Passengers at Bandar Lampung Air Port (2004 2008) Year Times of departure and

arrival (times/year)

Total passengers (passengers/year)

1 2004 1,734 113,455 2 2005 2,439 196,128 3 2006 3,914 321,545 4 2007 3,914 (?) 366,658 5 2008 4,442 378,653 Total 1,376,439 Average annual

increment of passengers

(passengers/year)

252,597

(Source: hhtp://en.wikiipedia.org/wiki/Radin_Inten_II_Airport)

4-14

Table 4-5: Modal Shift Rates from Aircrafts to Other Crafts and Vehicles Transportation Transportation

Aircraft

100%

➔ Aircraft 20% ➔ Bus 40%

➔ Railway 30%

➔ Car 10%

b. Reduction of CO2 Emission by Modal Shift Table 4-6 shows the result of calculation of CO2 emission reduction by modal shift. For the future

demand of aircraft passengers, it has been predicted as increased proportionally with the increasing

ratio between 2009’s and 2011’s actual data on aircraft passengers.

Table 4-6 : Demand Forecast of Passengers and CO2 Reduction by Modal Shift

(Aircraft) (Aircraft) (Bus) (Raiway) (Automible)

100% 20% 40% 30% 10%

年平均増分 252,5972009 631,2502010 883,8472011 1,136,4442012 1,389,0412013 1,641,6382014 1,894,2352015 2,146,8322016 2,399,4292017 2,652,0262018 2,904,6232019 3,157,2202020 3,409,8172021 3,662,4142022 3,915,0112023 4,167,608 1,041,902,000 115,651 23,130 23,339 5,939 18,442 44,8022024 4,420,205 1,105,051,250 122,661 24,532 24,753 6,299 19,559 47,5172025 4,672,802 1,168,200,500 129,670 25,934 26,168 6,659 20,677 50,2332026 4,925,399 1,231,349,750 136,680 27,336 27,582 7,019 21,795 52,9482027 5,177,996 1,294,499,000 143,689 28,738 28,997 7,379 22,913 55,6632028 5,430,593 1,357,648,250 150,699 30,140 30,411 7,739 24,030 58,3792029 5,683,190 1,420,797,500 157,709 31,542 31,826 8,099 25,148 61,0942030 5,935,787 1,483,946,750 164,718 32,944 33,240 8,458 26,266 63,810

Total 434,446

Duration of Construction of Sunda Straite Bridge

Duaraion of plan and design of Sunda Straits Bridge

Annualpasenger-km

(pax-km/year)

AnnualNumber of

AricraftPaseengers(pax/year)

Year

CO2 Emission by Transportation Media（ｔ－CO2/ｙ）)

Balance：　CO2reduction

w/o　Modal ShiftRate (%) of modal shift　from air crafts to miscellenous

trasnportation media

Note: a) Distance of modal shift is assumed 250 km for aircrafts, buses, trains and cars. b) Table 4-6 includes number of passengers moving between Bandar Lamapung and other cities of Jakarta, Palembang and Batam. In the study, it is assumed all passengers move between Bandar Lampung and Jakarta.

As the result of the calculation, Reduction CO2 emission will decrease by modal shifting from aircrafts

consuming a large amount of energies to energy-saving buses and trains. In addition, further reduction

of CO2 emission will be expected by introduction of the following technologies:

4-15

(i) Introduction of regeneration brakes to trains

(ii) Supply of higher efficiency and more environmental-friendly power plants such as super

pressure coal-fired, natural gas-fired, etc. to trains

However, to certify and register a CDM project to obtain CO2 credits, reduction of CO2 emission must

be able to be verified by monitoring during the project period.

(2) Other Environmentally-improved Effects The regional development projects surrounding the Suda Straits Bridge will cover many fields.

Among them, the following projects will be expected to contribute to environmental improvement

such as global warning protection, energy saving, public hygiene, etc..

■ Smart city (Banten Province, Java)

■ Geothermal power generation (Lampung Province, Sumatra)

■ Bio-fuels production and manufacturing (Lampung Province, Sumatra)

■ Production of fresh water by seawater desalination (Banten Province, Java and Lampung Province,

Sumatra )

■ Providing of other infrastructures such as water supply and sewers (Banten Province, Java and

Lampung Province, Sumatra )

■ Bilateral CO2 Credit system: Japan is discussion with Indonesian BAPEDAL, Ministry of

Energy and Mineral Resources, National Council on Climate Change, etc. about bilateral CO2

credit (or bilateral offset mechanism) .

Projects for bilateral CO2 credits as shown on Table 4-7 were proposed as pilot projects to be

supported by Japan. The same projects such as geothermal power plants, etc. which are tabulated on

the following table are expected in the projects.

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Table 4-7: Bilateral CO2 Credit System and its Pilot Projects Field Project Applicant (Business partner)

1 Coal-fired power High-efficiency coal-fired power plant (Super pressure)

Institute of Energy Economics of Japan (JPOWWR)

2 Coal-fired power High efficiency of low calorie coal-fired power plants

Sojitsu (Tsukishima Kikai)

3 Power transmission and supply network

Reduction of power transmission loss by high-efficient transformers

Mitsubishi UFJ Morgan Stanley Securities (Tohoku Electric Power, Hitachi Metals)

4 Renewable energies

Geothermal power plants Mitsubishi Corporation (West JEC)

5 Factory energy saving

Optimized control of factory’s facilities optimization by IT

Yamatake

6 RED ＋D (Reducing Emissions from Deforestation and Forest Degradation-plus)

Forest protection in developing countries

Marubeni

7 CCS (Carbon Dioxide Capture and Storage)

Enhanced oil recovery by CO2 injection CO2

Arabian Oil Co., Ltd

8 Chemistry NO2 reduction by coating fertilizers Shemricamagri (Marubeni) 9 Cement Recovery of waste heat from power

generation and gasification of wastes

Kawasaki Heavy Industries

(Source: About “Bilateral CO2 Credits System” (WWF Japan, February 25, 2011)

4-17

4.3 Environmental and Social Impacts of the Projects (1) Screening and Scoping of Environmental and Social Issues In the study, only the project of Sunda Straits Bridge and its access roads has been evaluated,

excluding regional development projects in Banten Province, Java and Lampung Province, Sumatra.

Because it is difficult to evaluate magnitudes of environmental impacts because the details of projects

such as scales and sites for the regional development projects have not been determined yet. The

results of screening and scoping (Survey & investigation, prediction and evaluation of environmental

and social issues) are tabulated on Table 4-8. The issues which will give serious impacts on

environment and society shall be fully checked and evaluated in SEA and/or EIA studies by project

operators and/or petitioners.

Table 4-8 :Environmental Checklist

(Sunda Strait Bridge Project including Access Rods in the Republic of Indonesia) (Form: JICA’ s Environmental Checklist (Bridge))

Category Environmental Item

Main Check Items Significance of Potential Environmental Impacts

Potential Environmental Issues and

Problems

Confirmation of Environmental Considerations (Reasons, bases,

mitigations, etc.) Major Small None Not Clear

1. Permits and Explanation

(1) EIA and Permits and Environmental Permits

(a) Have EIA reports been officially completed?

--- --- --- --- --- SEA and/or EIA have not been prepared yet.

(b) Have EIA reports been approved by authorities of the host country’s government?

--- --- --- --- --- Ditto.

(c) Have EIA reports been unconditionally approved? If conditions are imposed on the approval of EIA reports, are the conditions satisfied?

--- --- --- --- --- Ditto.

(d) In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country’s government?

--- --- --- --- --- Ditto.

(2) Explanation to the Local Stakeholders

(a) Have contents of the project and the potential impacts adequately explained to the public based on appropriate procedures, including information disclosure? Is understanding obtained from the local stakeholders?

--- --- --- --- --- Ditto.

(b) Have the comment from the stakeholders (such as local residents) been reflected to the project design?

--- --- --- --- --- Ditto.

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(3) Examination of Alternatives

(a) Have alternative plans of the project been examined with social and environmental considerations?

--- --- --- --- --- There are several sites and routes for the Sunda Strait Bridge. However, the route has not been determined yet.

2. Pollution Control

(1) Air Quality (a) Is there a possibility that air pollutants emitted from the project related sources, such as vehicles traffic will affect ambient air quality?

✔ Air pollution

To comply with the Indonesian environmental criteria.

(b) If air quality already exceed country's standards near the route, is there a possibility that the project will make air pollution worse?

✔ Ditto. Such a situation will not be expected in the sites and routes of the Sunda Strait Bridge .However, air pollution due to traffic congestion, etc. shall be taken into consideration.

(2) Water Quality

(a) Is there a possibility that soil runoff from the bare lands resulting from earthmoving activities such as cutting and filling will cause water quality degradation in downstream water areas?

✔ Water pollution

Countermeasures such as Slope protection, installation of sedimentary basins, etc will be taken.

(b) Is there a possibility that the project will contaminated water source such as well water?

✔ Ditto. Proper countermeasures will be taken against adverse effects such as flowing of pollutants into

、wells etc..

(3) Noise and Vibration

(a) Do noise and vibrations from vehicles and train traffic comply with the country’s standards?

✔ Health damage

To be planned and designed in compliance with Indonesian environmental standards, etc..

(b) Do low frequency sound from vehicle and train traffic comply with the country’s standards?

✔ Ditto. Ditto.

3. Natural Environment

(1) Protected Areas

(a) Is the project site located in protected areas designated by the country’s laws or international treaties and conventions? Is there a possibility that the project will affect the protected areas?

✔ Nature and ecology

destruction

So far as the Sunda Bridges are concerned, no protected areas in the project sites. If any, the route will be changed. In the surrounding regional development, protected reserves shall be paid attention to not to give adverse impacts..

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Problems



(2) Ecosystem

(a) Does the project site encompass primeval forests, tropical rain forests, ecologically valuable habitats (e.g., coral reefs, mangroves, or tidal flats)?

✔ Ditto. So far as the Sunda Bridges are concerned,, no large primeval forests in the project sites. If any, the route will be changed.

(b) Does the project site encompass the protected habitats of endangered species designated by the country’s laws or international treaties and conventions?

✔ Ditto. No endangered species in the project sites. If any, the route will be changed.

(c) If significant ecological impacts are anticipated, are adequate environmental protection measures taken to reduce the impacts on ecosystem?

✔ Ditto. No significant impact so far as the Indonesian environmental rules and regulations. If any, the route will be changed.

(d) Are adequate protection measures taken to prevent impact such as disruption of migration routes, habitat fragmentation and traffic accident of wildlife and livestock?

✔ Ditto. No such situations in the project sites. If any, the route will be changed.

(e) Is there a possibility that installations of roads will cause impact such as destruction of forest, poaching, desertification, reduction of wetland areas and disturbance of ecosystem due to introduction exotic (non-native invasive) species and pests? Are adequate measures for preventing such impacts considered?

✔ Ditto. There will be some threats and fears such as destruction of forests, etc. in the project. Proper plan and design of the projects shall be done considering natural environment and ecologies. Taking such situations into consideration, change of routes, relocation of ecology, etc. will be done to depress or reduce impacts.

(3) Hydrology

(a) Is there a possibility that alteration of topographic features and installation of structures such as tunnels will adversely affect surface water and groundwater flows?

✔ Change of Flow regime, etc.

Limited areas of dewatering will led to less subsidence. Temporary works shall be planned and designed not to interrupt waterway of ground water.

(4) Topography and Geology

(a) Is there a soft ground on the route that may cause slope failures or landslides? Are adequate measures considered to prevent slope failures or landslides where needed?

✔ Slope failure, land slide, etc.

Proper actions and countermeasures such as slope protection, sand piling, compaction, chemical grouting, etc. will be taken to prevent slope failures and strengthen soft ground.

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Problems



(b) Is there a possibility that civil works such as cutting and filling will cause slope failures or landslides? Are adequate measures considered to prevent slope failures or landslides?

✔ Ditto. Ditto.

(c) Is there a possibility that soil runoff will result from cut and fill areas, waste soul disposal sites and borrow sites? Are adequate measures taken to prevent soil run-off?

✔ Soil run-off, etc.

Ditto.

4. Social Environment

(1) Resettlement

(a) Is there involuntary resettlement? If involuntary resettlement is caused, are efforts made to minimize the impacts caused by the resettlement?

✔ Social problems

If acquisition of lands and resettlement are needed, LARAP will be prepared based on Indonesian laws, rules and regulations.

(b) Is adequate explanation on relocation and compensation given to affected persons prior to resettlement?

✔ Ditto. Ditto.

(c) Is the resettlement plan, including proper compensation, restoration of livelihoods and living standards developed based on socioeconomic studies on resettlement?

✔ Ditto. Ditto.

(d) Is the compensations going to be paid prior to the resettlement?

✔ Ditto. Ditto.

(e) Is the compensation policies prepared in document?

✔ Ditto. Ditto.

(f) Does the resettlement plan pay particular attention to un vulnerable groups or people, including women, children, the elderly, people below the poverty line, ethnic minorities, and indigenous peoples?

✔ Ditto. Ditto.

(g) Are agreements with the affected people obtained prior to resettlement?

✔ Ditto. Ditto.

(h) Is the organization framework established to properly implement resettlement? Are the capacity and budget secured to implement the plan?

✔ Ditto. Ditto.

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Problems



(i) Are any plans developed to monitor the impacts of resettlement?

✔ Ditto. Ditto

(j) Is the grievance redress mechanism established ?

✔ Ditto. Ditto.

(2) Living and Livelihood

(a) Where bridges and access roads are newly installed, is there a possibility that the project will affect the existing means of transportation and the associated works? Is there a possibility that the project will cause significant impacts such as extensive alteration of existing land uses, changes in sources of livelihood or unemployment? Are adequate measures considered for preventing these impacts?

✔ Ditto. Installation of the bridge over the Sunda Strait will arise unemployment of ferry worker, etc.. Countermeasures shall be adopted, taking such situation consideration.

(b) Is there a possibility that the project will adversely affect the living conditions of inhabitants other than the affected inhabitants? Are adequate measures considered to reduce the impact, if necessary?

✔ Ditto. Adverse impacts to people such as noise, vibration, air pollution, etc. shall be taken into consideration. As required, installation of noise barrier walls, resettlement of inhabitants, etc. shall be carried out.

(c) Is there a possibility that diseases (including communicable diseases, such as HIV) will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary?

✔ Contermeasures shall be taken in cooperation woth teh related Indonesian aurhoritie so taht such situations mayl not arisen in the projects/

(d) Is there a possibility that the project will adversely affect road traffic in the surrounding areas (e.g., by causing increases in traffic congestion and traffic accidents) ?

✔ The projects shall be planned in cooperation with the persons concerned of Indonesia to prevent such things from happening..

(e) Is there a possibility that roads and railways will cause impede the movement of inhabitants?

✔ There will be no such a possibility.

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Problems



(f) Is there a possibility that structures associated with roads (such abridges) will cause a sun shading and radio interference?

✔ The projects shall be planned not to arise such damages.

(3) Heritage (a) Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the country’s laws?

✔ So far as the Suda Straits Bridges are concerned. there are no archeological, historical, cultural, and religious heritage sites in/on the project sites and routes. If any, they will be protected by the Indonesian laws and regulations. .

(4) Landscape

(a) Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

✔ If any, they will be protected by the Indonesian laws and regulations. .

(5) Ethnic Minorities and Indigenous Peoples

(a) Are considerations given to reduce impacts on the culture and lifestyle of ethic minorities and indigenous peoples?

✔ There in no ethnic problems in the project in/on the sites and routes of the Sunda Straits Bridges. If any, countermeasures shall be taken to depress or reduce adverse impacts..

(b) Are all of the rights of ethnic minorities and indigenous peoples in relation to land and resources respected?

✔ It is expected there is no ethnic problems in the project in/on the sites and routes of the Sunda Straits Bridges.

(6) Working conditions

(a) Is the project proponent not violating any laws and ordinances associated with the working conditions of the country which the project proponent should observe in the project?

✔ Ｔ he working conditions will be protected by the Indonesian laws and regulations. As required, comply with international and Japanese norms and practices such as WHO, OHSHA, Japanese Labor, Safety and Health Regulations, etc.. shall be referred to.

(b) Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials?

✔ Proper instruction and guidance monitoring will be given to individuals involved in the projects.

(c) Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc.?

✔ Proper instruction and guidance about safety and hygiene will be given to individuals involved in the projects.

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Problems



(d) Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents?

✔ Of course, proper actions shall be taken.

5. Others (1) Impacts during Construction

(a) Are adequate measures considered to reduce impacts during construction (e.g., noise, vibrations, turbid water, dust, exhaust gases, and wastes)?

✔ Environmental pollution

and contamination - Noise &

vibration, turbidity,

dust, exhausted

gas, wastes, etc..

① Noise & vibration: Low noise and vibration methods and constructional vehicles and equipment.

② Construction dusts: Spraying water, etc.

③ Turbid water: Sediment basins, etc.

④ Exhaust gas: Less exhaust gas constructional vehicles and equipment.

⑤ Wastes: Spoils, solid wastes, etc. will be properly disposed or reclaimed.

(b) If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts?

✔ Damages to natural

environment

So far as the Sunda Straits Bridges are concerned, the construction activities does not affect the natural environment adversely, but, any way, adequate measures are considered to reduce impacts. If any proper action will be taken.

(c) If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts?

✔ Traffic congestion, nuisance,

etc

Adequate measures such as detours, etc. are taken to reduce impacts to social environment.

(2) Monitoring

(a) Does the proponent develop and implement monitoring program for the environmental items that are considered to have potential impacts?

✔ To be executed, based on environmental monitoring & management plans(RKL and RPL)..

(b) What are the items, methods and frequencies of monitoring program?

✔ Ditto.

(c) Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)?

✔ Ditto.

(d) Are any regulatory requirements pertaining to the report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities?

✔ Ditto.

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Problems



6. Note Reference to Checklist of Other Sectors

(a) Where necessary, pertinent items described in the Forestry Project checklist should also be checked (e.g., projects including large areas of deforestation).

✔ So far as the Sunda Bridges are concerned, no large forests in the project. If any, it will be compensated by forestation, etc..

(b) Where necessary, pertinent items described in the Power Transmission and Distribution Lines checklist should also be checked (e.g., projects including installation of electric transmission lines and/or electric distribution facilities).

✔ So far as the Sunda Bridges are concerned, power cables and facilities will not be involved in the project.

Note on Using Environmental Checklist

If necessary, the impacts to trans-boundary or global issues should be confirmed (e.g., the project includes factors that may cause problems, such as trans-boundary waste treatment, acid rain, destruction of the ozone layer, and global warming).

✔ So far as the Sunda Bridges are concerned, no global issues in the project.

1) Regarding the term “Country’s Standards” mentioned in the above table, in the event that environmental standards in the country where the project is located diverge significantly from the World Bank Safeguard Policy as a general rule, or the International Finance Corporation Performance Standards for private sector limited or non-recourse project finance cases, or other standards established by other international financial institutions, or other internationally recognized standards or good practices established by developed countries such as Japan regarding environmental and social considerations, the background and rationale for this deviation, and the measures to rectify it if necessary, are to be confirmed. In cases where local environmental regulations are yet to be established in some areas, considerations should be based on comparisons with international standards such as the World Bank Safeguard Policy, and appropriate standards of other countries (including Japan).

2) Environmental checklist provides general environmental items to be checked. It may be necessary to add or delete an item taking into account the characteristics of the project and the particular circumstances of the country and locality in which it is located.

(2) Proposed Projects and their More Environmental-friendly Alternatives The several routes, design and construction methods of the Sunda Strait Bridge will be envisaged.

The detailed alternatives have not been clarified or specified because plans and designs of the bridge

and its regional development are not done based on the detailed data and information on site survey,

soil conditions, sea conditions, etc.. Therefore, detailed plan and design shall be done by the project

operators and/or petitioners.

(3) Other Data and information on Environmental and Social Status and Conditions The executing agencies will be determined after two years of survey, investigation, design and

studies. In addition, the SEA or EIA have been done as well as detailed plans and design of the

bridges. Detailed and essential date and information on environmental and social conditions have

been obtained yet. Therefore, data and information have been collected extensively through site

survey in the study, previous other project reports, literature survey, etc..

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4.4 Outlines of Environmental Law, Rules and Regulations in the Republic of Indonesia (1) Environmental Laws, Rules and Regulations

a. Environmental Legislation and System

■ Competent authorities and agencies: March 1993, for further strengthening environmental

administration, the ”Ministry of Environment (MENLH) “ was established in March 1993 as an

independent ministry which plans environmental policies and strategies. In 1994, the “Environmental

Management Agency (BAPEDAL)” became an organization under the direct control of the President

for environmental administration. This resulted in a system that the “Ministry of Environment

(MENLH)” fulfills a coordination function for formulating policies on environmental problems and

the BAPEDAL implements specific environmental conservation policies and pollution control

measures. However, the BAPEDAL was merged in the MENLH in 2000 to transfer his duties to the

“Regional Environmental Agencies or Departments of Environment (BPLHDs” under the control of

local governments. The BPLH in KDI Jakarta have jurisdiction over all the projects in DKI Jakarta.

■ DNA-CDM in the Republic of Indonesia: The UNFCC and Kyoto Protocol were ratified by the

Republic of Indonesia in August 1994 and December 2004 respectively. The Indonesian DNA-CDM

is the “National Commission for CDM (KOMAS MPB)”. The chairman is an executive Secretary to

Minister of Environment. A secretariat and technical team are established under the committee. In the

Republic of Indonesia, a DNA was established in July, 2005. The DNA is represented by a assistant

secretary (secretariat) of Ministry of Environment and composed of members of the seven Indonesian

ministries.

The Indonesian state and local governmental authorities which involve in the project are the “Ministry

of Transportation (MOT)”, “Ministry of Environment” and “BPLHD in KDI Jakarta”. Their

organizations referred to Figs A4-3, A4-4 and A4-5 in Appendices.

b. Environmental, Exhaust Gas Emission and Wastewater Discharge Criteria ■ Environmental criteria (Ambient air, water quality and noise & vibration)

(i) Ambient air: Norms and standards to prevent environment from air pollution are stipulated

in the Decree of the State Minister of Environment No. 2 of 1988 as uniform in the whole

country of Indonesia (See Table A4-2 in Appendices.).

(ii) Water quality: With regard to water quality of water bodies in natural environment, their

norms and standards are stipulated in the Government Regulation on Control of Water

Pollution (Government Regulation No.20 of 1990). See Table A4-3 in Appendices.

(iii) Noise and vibration: Table A4-4 in Appendices shows the norms and standards for noise

applicable in the Republic of Indonesia. Tables A4-5 and A4-6 in Appendices show ones

for displacement and velocity of buildings and building structures respectively.

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■ Exhaust gas emission and wastewater discharge criteria: The emission norms and standards of

exhaust gas into ambient air from stationary sources are stipulated by five (5) type of industries such as

“ i) Iron and steel”, “ ii) Pulp and paper”, “iii) Cement” , iv) Coal-fired power” and “v) All other

industries” by the Decree of the State Minister of Environment No.13 of 1995. Table A4-7 in

Appendices shows norms and standards for all industries applicable to the project

With regard to wastewater discharge from activities of enterprises, the Decree of the State Minister of

Environment on Quality Standards on Liquid Waste from Industries’ Activities (No. 51, 1995)

stipulates the norms and standards for sectors of 21. Table A4-8 in Appendices shows the norms and

standards applicable in the province of West Java and all over Indonesia.

■ Wastes: Harmful wastes are regulated by the Government Regulation of the Republic of Indonesia

concerning Hazardous and Toxic Waste (No. 19, 1994). Wastes which Indonesian laws and rules are

applied to are hazardous and toxic ones usually referred to B3 named after first letters of words

meaning dangerous, hazardous and toxic in Indonesian. Wastes designated as B3 are prohibited to be

disposed directly into waters, soils, and ambient airs. The B3 wastes from factories shall be committed

to certified specialists handling harmful wastes.

(2) EIA (Environmental Impact Assessment) System, Etc/

■ Strategic Environmental Assessment (SEA)

In 2009, the strategic environmental assessment which has been legislated in the Republic of

Indonesia shall be carried out by central and/or local governments for ① Medium to long-term plans

and programs; ② Inter-state and multi-regional spatial plans; and ③ Environmentally impactive and

risky policies, plans and programs (Law No.32, 2009 concerning Environmental Protection and

Management).

■ EIA system

In the Republic of Indonesia, the responsibility for overall coordination of environmental impact

assessment (EIA) known as AMDAL lies with a BPLHD in a certain regions or a local government

which play an important role in this assessment. Types and their magnitudes of projects and activities

that require EIA in Indonesia are stipulated by sectors and by the State Regulation Number 11 year

2006. EIA studies will be required especially in the railway projects in Indonesian transportation

sector as shown on Table 4-9. The documents of AMDA shall include:

(i) Action plans on environmental impact analysis (KA-AMDAL);

(ii) Environmental impact analysis (ANDAL);

(iii) Environmental management plans (RKL);

(iv) Environmental monitoring plans (RPL) and

(v) Summary

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The authority to implement an environmental impact assessment (EIA) is assigned to ministries or

other organization of the regional government. Provinces and special administrative districts which

have jurisdiction over the work operation concerned. Each of these organizations has their own “EIA

Committee” to carry out preliminary screening to review the environment impact report. For a

“Central EIA Committee” established in a specific organization in the national government, the head

of that organization is appointed as the chairman. For Local Committees, a provincial governor is

appointed as the chairman. These committees comprise standing committees of which representatives

of the related governmental organizations, experts on environmental matters, and environmental

groups participate and non-standing committees of which residents’ representatives participate.

EIA process starts when a planner or operator of the proposed project or activity contacts a relevant

governmental authority. First of all, the EIA Committee established in the Government gives

judgment on necessity of EIA on the proposed project and activity. However, even if any EIA is not

judged necessary by him, the “Environmental Management and Monitoring Plans (RKL and RPL)”

shall be prepared to obtain approvals for the proposed project and activities.

In addition, in case that land acquisition and resettlement are required, the “Land acquisition and

Resettlement Action Plan (LARAP)” shall be prepared and the Local Land Committee shall be

established to agree with the project affected persons (PAPs). Fig.4-8 shows procedures for AMDAL

and their durations. According to the table, it takes maximum 6 months from announcement of the

project to approval of EIA on the project.

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Fig.4-8: EIA (AMDAL) Procedures and their Required Duration in the Republic of the Republic of Indonesia

Community Stakeholders

Responsible Authorities/Institutions

Project Proponent

(Source: Decision KA. BAPEDAL No. 08 year 2000 on involvement of people and the information transparency in analysis process about environmental impacts)

Suggestions, opinions and responses

� Coordination and review of ANDAL, RKL and RPL

� Arrangement of ANDAL, RKL and RPL

Consultation

Announcement for preparation of EIA

Decision of approval of EIA

Evaluation of KA-ANDAL by

Committee (Max. 75 days)

(Within 30 days after announcement)

� Announcement of project plans

� Arrangement of KA-ANDAL



Evaluation of KA-ANDAL by

Committee (Max. 75 days)

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■ Land Acquisition and Resettlement Plan (LARAP)

In the Republic of Indonesia, land acquisition and resettlement shall be simultaneously prepared as a

Land Acquisition and Resettlement Plan (LARAP) . The LARAP is classified into the following two

kinds of plans for either (i)or(ii) to be prepared.

(i) LARAP: In case that the number of resettlers is 200 people and more

(ii) Simplified LARAP: In case that the number of resettlers is less than 200 people ■ Projects and Activities which EIA is needed

In the Republic of Indonesia, projects and activities shown on Table 4-9 shall need EIA and its

approval by central and/or local governments. The EIAs shall be obliged for the Sunda Strait Bridge

and its surrounding regional development projects and activities shown on Table 4-9. Projects and

activities ticked will be proposed in the provinces of Bantem and Lampung. In the Sunda Strait

Bridges and their surrounding regional development projects, the projects marked as (✔) will be

envisaged in the provinces of Banteng and Lampung, Indonesia

Table 4-9: Projects envisaged in Provinces of Banten and Lampung and Necessity of EIA Field Projects or activities

a) Scale/Magnitude

(EIA needed projects and activities)

Banten Province

Lampung Province

Remarks

I. Mining and energies Coal 200,000 tons and over ✔ Primary ore Secondary ore Non-steel metal

mineral, sand and gravel

✔ ✔

Radioactive minerals (Including exploration, mining and refining)

Power transmission lines

ｋ150 V and over ✔ ✔

Power generation pants (Diesel, natural gas, steam, and combined cycles)

100MWand and over ✔

Hydraulic power generation

✔

Geothermal power plants

55MWand and over ✔

Other power plants ✔ ✔

Petroleum and natural gas (Production)

✔

Petroleum and natural gas (Refining)

✔

Petroleum and natural gas pipelines

Length 25kmand over ✔

II. Medicals Hospitals (A class, I class or equal) and other hospital (400 rooms and over), complete nursing care hospitals, basic medicine manufacturing facilities

✔

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Field Projects or activities a)

Scale/Magnitude (EIA needed projects and

activities)

Banten Province

Lampung Province

Remarks

III. Public works Construction of dams

and dikes Height: 15m and over

✔ ✔

High speed highways and flyovers

✔ ✔ Applicable to Sunda

Straits Bridge project.

Construction of trunk roads and highways

Total length: 25kmand over ✔ ✔ Ditto.

Construction and repairs of m main roads and highways except large cities and metropolitans

Total length: 5km and over or area: 5ha and over

✔ ✔ Ditto.

Waste water treatment facilities and sewers

Area 50ha and over ✔ ✔

Sewage Area : 2,500ha and over ✔ ✔

Water intake facilities from lakes, rives, ponds, etc.

✔ ✔

Urban redevelopment projects

Area: 5ha and over ✔ ✔

High rise buildings and mansions

Height: 60mand over ✔ ✔

IV. Agricultures Shrimps and fish cultivation

Area: 50haand over ✔ ✔

Plantation 以以Area: 10,000ha ✔ ✔

V. Tourism Hotels 200 rooms and over or area: 5ha and over ✔ ✔

Golf course ✔ ✔

Recreation parks 100ha and over ✔ ✔

Tourism and resort facilities

✔ ✔

VI. Immigration and living in forests

Construction of Immigrants’ housing facilities

Area: 3,000haand over ✔

VII. Industries Cement, paper and pulp, chemical fertilizers (Compound), Petrochemicals, Steel, lead refining, copper refining, alumina refining, special steel, aluminum manufacturing, metal pellet manufacturing,, pig iron, Ferro alloy, industrial estates, shipbuilding (Vessels: 3,000dwtand

、over aircraft manufacturing, manufacturing of arms & weapons, munitions and explosives, dry batteries

✔ ✔

VIII. Transportation Railways Length: 25km and over ✔ ✔ Applicable to Sunda


Construction of subways

Construction of port and related facilities (Class 1 and 2)

✔

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Field Projects or activities a)

Scale/Magnitude (EIA needed projects and

activities)

Banten Province

Lampung Province

Remarks

Construction of

special ports

✔

Coast reclamation Area: 25haand over ✔

Port freight handling facilities

Volume: 100,000m3 and over

✔

Port freight handling areas

✔

Air ports and related facilities

✔

IX. Trade and commerce Trading centers or shopping centers

Area: 5ha and over Or area: 10,000m2and over

✔

X. Defenses and security (Details to be omitted.)

XI. Nuclear energies (Details to be omitted.)

XII. Forests Construction of safari parks

250haand over ✔

Construction of zoos 100haand over ✔

Deforestation (HPH: Hak Pengusahaan Hutan)

✔

Deforestation of sago palms’ forests

✔

Commercial forestation (HTI: Hutan Tanaman Industri (HTI)

✔

Construction of parks (National parks, nature reserves, hunting areas in natural reserves, coastal parks, animal reserves, marine parks, wildlife reserves, etc.

✔ ✔

XIII. Harmful waste control

Construction of harmful waste treatment facilities

✔ ✔

XIV. Integrated/multiple ministries

Activities related to same species of ecologies (Each which needs EIA) and projects or activities control by plural ministries.

✔ ✔ Applicable to Sunda


(Source: Prepared by the study team based on ” Indonesian Environmental Protection (1995), Mr. Genjichi Iwata “)

(3) Other Environmental Guidelines to be complied

JICA’s Environmental Guidelines: Since the project and activity will give significant impacts on

natural and social environments is classified into Category A, it is essential to disclose the EIA report

and environmental approval certificate. In addition, in case of large scale of involuntary resettlement,

the resettlement action plan shall be disclosed.

4-32

4.5 Matters to be completed by the related Authorities in the Republic of Indonesia to realize the projects The related authorities and/or project operators shall implement the following tasks and duties

promptly to realize the projects:

■ Survey and investigation required for plan and design of projects’ plants and facilities such as

route and site, soil investigation, sea water depth, sea conditions, etc.

■ To implement feasibility studies, FEEDs, etc. to determine the project operators.

■ Finalization of SEA and/or EIA by governments or operators to obtain SEA and/or EIA approvals

from Central and/or regional governments.

■ Preparation of LARAPs to start land acquisition for the projects if required.

■ Start of negotiation about fisheries compensations, etc. with fishermen and persons affected by the

projects

Chapter 5:

Financial and Economic Evaluation


5-1

5.1 Estimate of project costs (1) Sunda Strait Bridge Project

A survey has not yet been performed for the ground in the strait area. As a result, it is currently

impossible to provide an estimate of bridge specifications and cost. Therefore, based on experience

gained from the Akashi Strait Bridge, the base case, optimistic case and pessimistic case shown

below are set for this survey.

Table 5.1-1：Bridge Specifications

Base case Case-1 (Optimistic Case)

Case-2 (Pessimistic Case)

Total distance 25km 25km 25km Central span 2,500m 2,500m 2,500m Number of suspension bridges

2 2 3

Suspension bridges (km)

10km 10km 15km

Marine approach (km) 15km 15km 10km Water depth 70m 70m 70m Notes Slide of Akashi Strait

Bridge Reduce cost for suspension bridge portion


Also, bridge construction costs are estimated separately for the suspension bridge area and for the

approach bridge area, based on experience gained from the Akashi Strait Bridge and from the Nissei

Bridge.

( a ) Suspension bridge area

The suspension bridge area of the Akashi Strait Bridge is:

400 billion yen / 4,000m

As the construction costs of a suspension bridge are proportional to the cube of the center span, the

construction costs of the suspension bridge area of the Sunda Strait Bridge can be calculated as

follows:

＝construction costs（Suspension bridge of the Akashi Strait Bridge）× (center span of the Sunda

Strait Bridge/ center span of the Akashi Strait Bridge) ^3 × 2 bridges

＝400 billion yen× (2,500m/2,000) ^3 × 2

≑1.55 trillion yen

( b ) Approach bridge area

Calculation is based on the Niisei Bridge (5 billion yen/500m), taking into account the deeper water

depth under the Sunda Strait bridge.

＝construction cost (approach bridge of the Nissei Bridge)/ the span of the Nissei Bridge

5-2

× the span of approach (the Sunda Strait Bridge）

× multiplier

＝5 billion yen/500m×15,000 ×3

＝450 billion yen

( c ) Assumed cases

At the present stage when a ground survey is not yet implemented, it is impossible to estimate

construction costs. Therefore, the following three cases are set.

Base case ： Estimated based on the Akashi Strait Bridge on the assumptions above

Case-1 ： Costs of the suspension bridge area are reduced by 30%

Case-2 ： One suspension bridge is added in soft-sea-bed area (around 2,250m)

Table 5.1-2：Construction costs of bridge



Construction costs

Suspension bridge

area

1.55 trillion yen 1.05 trillion yen 2.05 trillion yen

Suspension bridge

area (additional)

- - 570 billion yen

Approach area 450 billion yen 450 billion yen 380 billion yen

Total 2 trillion yen 1.5 trillion yen 2.5 trillion yen

Note Based on the Akashi

Strait Bridge

Costs of suspension

bridge area are reduced

（about 70% of the

base case：equivalent

of unit prices of the

Messina Bridge）

Addition of one

suspension bridge in

the soft-sea-base area

(the distance of 2,250m

is assumed)

Regarding costs for the above base case, optimistic case and pessimistic case are set as shown in

Table 5.1-3.

5-3

Table 5.1-3： Bridge project cost



Construction cost 2 trillion yen 1.5 trillion yen 2.5 trillion yen Maintenance cost 1st year： 0.04%

2nd year： 0.08% 3rd year： 0.12%

… 50th year： 2.00%

*The ratio listed above will be applied to construction cost each year (increase of 0.04% per year)

Notes Slide of Akashi Strait Bridge

Reduce cost for suspension bridge portion


(2) Overall development projects in surrounding areas Some reginal development projects of areas surrounding the Sunda Strait Brdige are picked up in

this Report and reviewed in Table 3.1-6. Among these projects, the focus is placed on the following

four projects from the viewpoints of the strength of Japanese companies, stepwise development

accoridng to the timeline, and short-term contribution:

(i) Port rennovation project (in Banten and Lampung）

(ii) New port development project（in Lampung）

(iii) Factory complex development mixed with bridge construction（in Lampung）

(iv) Airport rennovation project（in Lampung）

In December 2011, the Presidential Decree on the Development of the Sunda Strait Strategic Areas

and the Infrastructure (No.86/2011）was enacted. This decree says that business operators in charge of

the construction of the Sunda Strait Bridge can be awarded the right of the urban development of the

neighboring areas, and that initiators shall draw a blueprint for the regional development of the

strategic areas, including the Sunda Strait Bridge, at their feasibility study that will be implemented by

2014.

Against this backdrop, it is highly probable that the four projects selected above will be incorporated

as candidate projects into the planning of the regional development of the areas surrounding the Sunda

Strait Bridge implemented by initiators who are selected based on the Presidential decree. In this case,

it is highly probable that initiators will offset the construction costs of the Sunda Strait Bridge by

profits on the sales of the development right pertaining to the regional project, and it is decided that

detailed planning would be also explored in their feasibility study. At the present, target areas and

details are not yet decided for the majority of the projects. Therefore, for the individual financial

analyses of the projects in question, it is necessary to monitor the progress of initiators’ feasibility

5-4

study and to take into account costs incurred by the purchase of the development right based on the

results of their feasibility study. In this Report, the scale of business that can be highly profitable for

Japanese companies is calculated. And, as the analyses combining the bridge with the regional

development, the impact evaluation from the viewpoint of economic ripple effect will be implemented

for the following three cases: “no bridge,” “the presence of investment in the bridge,” and “the

combination of the bridge and regional development.”

(i) Port rennovation project（in Banten and Lampung）

At present, first- to sixth-phase of the construction plan of port facilities of Meark and Bakauheni

Ferry Terminals are prepared. The Japanese ferry boats are expected to be adopted for the port with

the advantage of energy saving. For details, please refer the “Survery Report on Expansion Plan of

Ferry Terminal Between Jawa and Sumatra in Indonesia” (JTCA, 2011), whereby project costs

pertaining to the expansion of the terminal are estimated as follows:

Ferry boat purshase costs: 35 billion yen

Not only the ferry boats with advantages of energy saving and effectiveness, but Japanese companies

also have an advantage of proposing management and improvement planning of port to existing

businesses.

(ii) New port development project (in Lampung)

On the presumption that a port that is tentatively set up for the construction of the Sunda Strait

Bridge will be used as a new port after the completion of the bridge, the estimated costs are

calcualted as follows.

Table 5.1-4：Estimated costs of new port

Facility Quantity Unit Cost (yen) Total Dredging 200,000 m3 500 100,000,000

Quay 600 m 3,200,000 1,920,000,000 Bulwark 2,200 m 1,200,000 2,640,000,000

Landfill/bulldozing 1,200,000 m3 3,000 3,600,000,000 Apron paving 1,000,000 m2 5,000 5,000,000,000 Route signs 9 Signs 10,000,000 90,000,000

Other 1 Set 10,000,000 10,000,000 13,360,000,000

(Source: Study Team) New port (for factory complex) construction costs: 13.4 billion yen

Indonesian companies have an ability to finish the whole process of the port construction. So the

Japanese companies would not have significant advantage. However, Japanese companies have an

experience in developing makeshift jetty together with bridge construction in permanent port. Also,

5-5

by being involved in the project at the beginning, Japanese companies have a chance to engaged in

port management for the future.

(iii) Factory complex development going with bridge construction（in Lampung）

Assembly factories and the storage area that are tentatively set up for the construction of the Sunda

Strait Bridge will be arranged as a new factory complex. At present, it is difiicult to estimate the

costs because the land purcese costs, which influence estimation significantly, depend on the

judment of the state government. In this study, costs are estimated based on the prices of the

Klatakaw Factory Complex on a cost per square meter basis

Area 2km × 1km 2,000,000 ㎡

Unit price 50$/㎡

Total project costs: 8 billion yen（US$ 100 million）

In this project, it is possible to construct the factory complex only by local companies. So the

Japanese companies would not have significant advantage. However, by providing services in

surrounding area to attract Japanese makers and for an easy operation for them, it is possible to

prove the superiority of Japanese companies for factory complex management. For the management

of factory complex, Japanese makers would have an advantage.

(iv) Airport rennovation project（in Lampung）

This is the project to rennovate the Bandar Lampung Airport in Lampung as an international airport.

It is planned that this project will be officially announced as a model PPP in Indonesia in 2012.

However, a large portion of the details of the project remain undecided, and the Transport Ministry

annouced only rough estimation for investment amount as follows:

Necessary investment costs: 1.2 billion yen（150 billion Rupiah）

As this project itself is a small project only to rennovate the airport, it is possible to finish the most

part of the process by Indonesian companies. However, by Japanese companies being involved from

the stage of master plan or basic design, it is possible to expand the project to develop airport city,

etc. In this case, Japanese companies would have opportunities to make master plan or to invest into

factory complex and logistic facilities in surrounding area.

5-6

5-7

5.2 Overview of Results for Preliminary Financial and Economic Analysis

5.2.1 Economic analysis

5.2.1.1 Analysis method As of November 2011, the details of the Sunda Strait Bridge construction project were yet to be

defined. The proposal for the construction area on Java Island itself had two plans. This large

infrastructure project also contains regional development sub-plans, like the development of

industrial parks and geothermal power plants, thus requiring an economic analysis to be

accomplished through an input-output evaluation, based on the input-output table of Indonesia. Also,

the characteristics of the construction area will be considered afterwards, based on the economic

situation and the industrial structure forecast, due to the regional input-output table of Banten and

Lampung provinces not available.

・ Input-output Table of Indonesia updated in 2008; BPS

・ Population 15 Years of Age and Above Working in the Main Industry (2005–2010); BPS

・ Lampung Dalam Angka 2010; Lampung Province

・ Banten Dalam Angka 2010; Banten Province

・ Trends of Selected Socio-economic Indicators of Indonesia 2009; BPS

・ Gross Domestic Product at Current Market Prices by Industrial Origin (2004–2010), BPS

5.2.1.2 Calculation of far-reaching effects The final demand will be determined based on the Sunda Strait Bridge construction cost, regional

development cost, industrial park construction cost, and geothermal development cost. The induced

production value will also be estimated by the utilization of the input-output table. (The Sunda

Bridge’s construction cost of 2 trillion Japanese yen will be used for the current estimates, according to

the base case cost estimation of the study.)

(1) Calculation content

The production inducement effect and employment effect will be quantitatively calculated through the

input-output analysis.

1) Production inducement effect

The added value and the new production cost will be calculated based on the expenditures of

activities.

2) Employment effect

Employment increase corresponding to the new production cost will be calculated based on

employment coefficients.

(2) Calculation process

Consumption from the final demand (direct investment) will stimulate the intermediate demand.

5-8

Based on the input-output analysis, the primary and secondary effects as a result of the increase in

incomes and consumption can be calculated. The sum total of the direct, primary, and secondary

effects will be defined as the total effect.

5-9

Figure 5.2-1 Estimated Flow of Input-Output Analysis

Regional Final Demand (direct investment)

Raw Material Inducement Cost

(direct)

Added Value Inducement Cost (direct)

Employee Compensation Cost

×Input Coefficient�1 ×Value-added Ratio ×Employee

Compensation Ratio

【 Project Investment Cost： Sunda Strait bridge construction cost, etc.】

Regional Demand Increase

(primary)

×Self-sufficient Rate�2

Production Inducement Cost�4

(primary)

Added Value Inducement Cost�5


×Value Added Ratio ×Employee

Compensation Ratio


(direct＋primary)

×Inverse Matrix

Coefficient�3

Consumption Expenditure Increase

Section Demand Increase

(producer price)


(secondary)

×Propensity to

Consume�6

×Self-sufficiency RateProduction Inducement Cost

(secondary)

Added Value Inducement Cost


×Value-added

Ratio

×Employee

Compensation Ratio

Secondary effect

Primary effect

×Inverse Matrix Coefficient

Direct effect

×Margin Adjustment

5-10

5.2.1.3 Calculation for far-reaching effects in the Provinces (Project Location) (1) Production inducement cost

This is calculated first by comparing the “primary effect” with the given direct investment costs (the

amount of regional final demand). Consumption and production is then induced from the production

inducement effect. The “secondary effect” is calculated from these figures. The “total effect” is

estimated from the sum of the direct, primary, and secondary effect.

(2) Added-value inducement cost

The added-value inducement cost is estimated within the production inducement cost. From the ratio

of added value and regional production, the value-added ratio is estimated. By multiplying the

production inducement cost and the value-added ratio, the added-value inducement cost can be

obtained.

(3) Regional revision in provinces (Project Location)

Since the IO table for both Banten and Lampung provinces were not available, the economic analysis

will be conducted using the IO table of the Indonesian national government. To consider the regional

environment, the revision of far-reaching effects will be conducted through comparisons of the GRDP

and the ratio of the industries.

1) Input Coefficient

The amount of raw material input sourced from various industries, divided by the amount of

production in selected industries, is called the factor of input coefficient. In other words, the input

coefficient shows the share of other industries in producing one unit of the product in each industry.

2) Self-sufficiency Rate

Rate indicating how much can be produced in a region.

3) Inverse Matrix Coefficient

Inverse matrix coefficient is the factor of the inter industry’s far-reaching effects. The factor shows

the amount of far-reaching effects when one unit of final demand is generated in selected industries.

4) Production Inducement Cost

Production value obtained from inverse matrix coefficient and the given final demand. Specifically,

the cost is the sum of the direct effect and the subsequent effects.

5) Added-value Inducement Cost

The portion of company profits and workers’ compensation within the production inducement cost.

6) Propensity to consume

The portion of consumption in income.

5-11

5.2.2 Understanding the Project’s economic far-reaching effects

5.2.2.1 Understanding direct demand (investment) This will be conducted by calculating the far-reaching effects from the given investment cost of 2

trillion Japanese yen, according to the bridge construction cost estimation of the study, and applying

the cost to Sector 52 (Construction sector). The calculation of the total cost is assumed using the

following elements: 1) Regional development, 2) Industrial park development cost, and 3) Geothermal

development, etc. In addition, the detailed analysis is conducted by categorizing the expenditures of

the project cost into specific sectors. However, this process will be omitted in this study.

5.2.2.2 Understanding far-reaching effects (1) Production Inducement cost

The construction cost of the Sunda Strait Bridge is assumed to be 2 trillion Japanese yen (1 Japanese

yen will be assumed to be equal to 110 Rupiah). From this investment, domestic/regional demand is

induced, generating the “primary effect” worth 1.44 trillion Japanese yen. Then, consumption is

induced from the growth of compensation, and the “secondary effect” generates 1.15 trillion

Japanese yen.

As a result, the rate of the total effect (direct effect + primary effect + secondary effect) from the direct

investment will become 2.29.

Table5.2-1 Production Inducement Costs

Effect Sunda Strait bridge construction Cost

(billion yen) Direct effect (direct investment) 2,000

Primary effect 1,438

Secondary effect 1,145

Total effect 4,584


Based on the results of the analysis, the chain reaction and the impact on Sector 53 (Trade Sector) will

be quite large, reaching 115.8 billion Japanese yen. Additionally, the impact on Sector 21

(Wood/Timber Sector) will likewise be large, amounting to 30.6 billion Japanese yen in terms of total

effect, even though large infrastructure projects, such as the Sunda Strait Bridge, might not have a

great demand for timber, as compared to normal housing construction.

(2) Added-value inducement cost

Of the production inducement cost, the added-value inducement cost will be 726.1 billion Japanese

yen for the direct effect, 758.7 billion Japanese yen for the primary effect, and 582.3 billion Japanese

yen for the secondary effect.

5-12

Table5.2-2 Added-value Inducement Cost

Effect Sunda Strait bridge construction

cost (billion yen)

Direct effect (direct investment) 726

Primary effect 758


Total effect 2,067


(3) Employment effect

The number of new jobs created from the bridge investment will be 238,884 people, as the direct effect.

The sum of direct effect and primary effect will be 746,162 people, while the overall effect (direct

effect + primary effect + secondary effect will be 1,366,890 people.

5-13

Figure 5.2-2 Far-reaching Effects (Sunda Strait Construction Bridge)(before regional revision)

(billion yen)

Regional Final Demand (direct) 2,000.0

Raw Material Inducement Cost Added Value Inducement Cost (direct)


×Input Coefficient ×Value-added Ratio ×Employee

Compensation Ratio

【 Project Investment Cost: Sunda Strait bridge construction cost】


×Self-sufficiency Rate

Production Inducement Cost



×Value-added Ratio ×Employee

Compensation Ratio


×Inverse Matrix

Coefficient

Consumption Expenditure Cost

Section Demand Increase


×Propensity to

Consume

Production Inducement Cost



×Value-added Ratio

Secondary effect

Primary Effect

×Inverse Matrix

Coefficient

1,054.6 726.1 570.7

906.5

1,438.7

758.7

608.5

1,145.6

582.3

476.0

1,179.2

742.9

742.9

687.5 ×Employee Compensation Ratio

×Margin Adjustment

Direct Effect

×Self-sufficiency Rate

5-14

5.2.2.3 Regional revision in Provinces (Project Location) (1) Consideration of Provincial GRDP (GDP) per capita (Banten and Lampung Provinces)

The GRDP per capita and the population of Indonesia, Banten, and Lampung in 2008 are shown in

Table 5.2-3

Table 5.2-3 GDP (GRDP) per capita and population

2008 Indonesia Banten

Province

Lampung

Province

GDP (GRDP)/capita(IDR’ 000) 21,678 12,757 10,078

Population (no. ‘000) 228,523 9,602 7,391

(Source: Trend of selected socio-economic indicators of Indonesia 2009. Banten Dalam Angka 2010.

Lampung Dalam Angka 2010)

Considering the provincial GRDP per capita, the amount of far-reaching effect will be 0.535 times as

large as the amount estimated in Section 5.2.2.2 (Understanding far-reaching effects).

(2) Consideration of the ratio of industrial sector

In addition, the number of workers in Indonesia, Banten and Lampung by industry (population 15

years and above) in 2008 is shown in Table 5.2-4

Table 5.2-4 Workforce by industry (2008)

(Unit: person)

Industry Indonesia Banten Lampung

Agriculture, Forestry, Hunting and Fishery 42,689,635 813003 1,679,602

Manufacturing Industry 12,440,141 705831 186,842

Wholesale Trade, Retail Trade, Restaurants and Hotels 20,684,041 979,925 506,754

Community, Social, and Personal Services 12,778,154 528,869 90,163

Construction 4,733,679

641,267 237,421

Mining and Quarrying 1,062,309

Transportation, Storage, and Communications 6,013,947

Financing, Insurance, Real Estate and Business Services 1,440,042

Electricity, Gas, and Water 207,909

Total 102,049,857 3,668,895 2,700,782

(Source: Workforce 15 Years of Age and Over by Industry (2005–2010). Banten Dalam Angka 2010.

Lampung Dalam Angka 2010)

5-15

Figure 5.2-3 （）Ratio of industrial sector by area 2008

(Source：Study Team)

The ratio of the industrial sector in the two provinces is calculated by multiplying the percentage of

each province from the total (considering the population) with that of the ratio of industrial sector. The

results of the calculation are shown in Table 5.2-5. For comparison, the sector population from the

national government of Indonesia are shown along with the figure.

Table 5.2-5 （）Ratio of Industrial Sector in two provinces (Banten/Lampung) 2008

Area Agriculture

Forestry, Fishery

Manufacturing Industry

Trade, Restaurants,

Hotels

Communication, Social Services

Others

Two Provinces 39.5% 13.9% 23.3% 9.6% 13.7%

Indonesia 39.2% 14.0% 23.3% 9.7% 13.8%

(Source: Study Team)

In the table above, the ratio of the two provinces and that of Indonesia are quite similar. The estimates

might not differ from the consideration of the sector, but to add the regional characteristics, the figures

in Section 5.2-4 (Understanding far-reaching effects) will be revised by taking into account the figures

in Table 5.2-5

(3) Economic impact after regional revision (project location)

After considering the province’s GRDP per capita and the sector ratio, as the regional characteristics,

production inducement cost amounted to the figures shown in Table 5.2-6. The ratio of the total effect

(direct effect + primary effect + secondary effect) from the direct investment will be 1.69.

5-16

Table 5.2-6 Production Inducement Amount (billion yen)

Effect Sunda Strait Bridge

Construction Cost

Direct effect 2,000

Primary effect 765


Total effect 3,375


The number of new jobs created from the bridge investment(2 trillion yen) will be 238,894 people, as

gleaned from the direct effect. The sum of direct and primary effects will be equivalent to 486,447

people, while the overall effect (direct effect + primary effect + secondary effect) will be 809,164.

* According to the Indonesian government (2011), the number of jobs to be created from the projects

in the MP3EI would amount to nearly 9.6 million within the next two to three years. Calculating

the estimated costs from the construction of the Sunda Strait Bridge, job creation will be around

630,000.

* According to the Indonesian government (2011), the jobs created from a 1% growth of the GDP

would be around 450,000. However, by promoting agriculture and rural development, infrastructure preparation, and

industrialization, along with the Sunda Strait bridge construction, Java’s and Sumatra’s economic

corridors will be linked and the region will have a labor-intensive industrialization. The changes in the

shares of industrial sectors in the past years in Indonesia are shown in Figure 5.2-4

Figure 5.2-4 （）Shares of Industrial Sectors in Indonesia 2004/2007

(Source: Gross Domestic Product at Current Market Prices by Industrial Origin. BPS)

If regional development will be triggered by the Sunda Strait Bridge construction project and the

5-17

resultant economic growth and industrial transformation, the ratio of the total effect (direct effect +

primary effect + secondary effect) from the direct investment will be 1.93, which is higher than the

estimates mentioned earlier.

The number of new jobs created from the bridge investment will be 238,894 people, based on the

direct effect. The sum of direct effect and primary effect will amount to 654,294 people, and the

overall effect (direct effect + primary effect + secondary effect) will be 1,085,756 people.

(4) Economic ripple effect from regional development

As section 5.2.(1) shows, the economic ripple effect from the four regional development plans is

illustrated as followings;

Table 5.2-7 Production Inducement Amount (billion yen)

Effect Sunda Strait bridge construction cost

Sunda Strait Bridge + Regional Development

Direct effect 2,000.0 2,057.6

Primary effect 765.3 787.5

Secondary effect 610.0 627.5

Total effect 3,375.4 3,472.6


As for the analysis above, only four regional development plans, which Japan has relative advantage

and will be able to highly contribute to the region, are taken into consideration. Other regional

development plans derived from the Sunda Strait Bridge development are not yet detailed. An

chosen initiator, based on the Presidential Regulation No.86 Year 2011, will conduct a feasibility study

for the bridge and surrounding regional development. After the feasibility study, more detailed

regional planning will be revealed and discussed.

5-18

5.2.3 Financial analysis Financial internal rate of return (FIRR) was used to conduct financial analysis for the bridge itself.

5.2.3.1 Preconditions Since this is a PPP project, we envisioned toll fare as project income and conducted financial review

from the perspective of a private business.

(1) Preconditions

Table 5.2-8 shows the preconditions of financial analyses.

Table 5.2-8 Preconditions

Project period 2013-2062

Construction period 2013-2023

Equity / Loan ratio 30% / 70%

Interest rate 2%

Repayment period 30 years

Depreciation 50 years

Corporate Tax 25%


(2) Amount of initial investment

Based on Table 5.1 -2, the following three cases are set.

Table 5.1-9：Amount of initial investment

Base case Case-1

（optimistic case）

Case-2

（pessimistic case）

Construction costs 2 trillion yen 1.5 trillion yen 2.5 trillion yen

(3) Traffic demands

Traffic demands, the precondition of income from toll fees, are estimated as shown in Table 5.2-10

based on traffic forecasts in 3.2.3 (1) in consideration of the maximum traffic in three lanes each way.

5-19

Table 5.2-10：Forecast of traffic demands

Year

Traffic

(10,000

cars a day)

Year

Traffic

(10,000

cars a day)

Year

Traffic

(10,000

cars a

day）

2024 3.40 2037 6.80 2050 10.00

2025 3.50 2038 7.20 2051 10.00

2026 3.60 2039 7.60 2052 10.00

2027 3.70 2040 8.00 2053 10.00

2028 3.80 2041 8.40 2054 10.00

2029 3.90 2042 8.80 2055 10.00

2030 4.00 2043 9.20 2056 10.00

2031 4.40 2044 9.60 2057 10.00

2032 4.80 2045 10.00 2058 10.00

2033 5.20 2046 10.00 2059 10.00

2034 5.60 2047 10.00 2060 10.00

2035 6.20 2048 10.00 2061 10.00

2036 6.40 2049 10.00 2062 10.00


As can be seen, the ceiling of 100,000 cars a day is adopted for more realistic forecasts.

(4) Variable costs

Bridges require long-term maintenance, and maintenance costs tend to increase over time. It is said

that the maintenance costs of structural objects requiring long-term maintenance, such as bridges, shall

be around 50% and 200% of the initial investment for the span of 50 years and 100 years, respectively.

In the present analyses, it is assumed that maintenance costs will increase by 0.04% every year. As a

result, the maintenance costs of the first year and the 50th year are 0% and 2.0% of the initial

investment, respectively.

(5) Assumed cases

In Indonesia, toll fees are around several hundred yen. With this, it is necessary to take into account

subsidies from the national governments, etc. to carry out the financial evaluation of public projects

with large expenditure, such as bridges and tunnels, on the assumption that projects will lead to public

benefits from economic ripple effect. Based on the Presidential decree（）No 86/2011 , the initiators

will estimate necessary subsidies by 2014 through their feasibility study. It is decided that the project

will be proposed upon the validation of the presumption that the project can be run as a PPP thanks to

governmental subsidies, income from the development right pertaining to the regional development of

the strategic areas, etc. At the moment, it is impossible to predict what kind of scheme will be

proposed because the initiators have just commenced discussion. Therefore, the present analyses

5-20

explore governmental subsidiaries and business income from the regional development planning of

the neighboring areas as comprehensive assistance funds.

As can be seen in Table 5.2-11, toll fees are set in 1,000 yen and 3,000 yen, and the ratios of assistance

funds to the initial investment (the amount of assistance funds divided by the total investment) are set

in four cases. The assistance fund ratio of 0% is the case in which there are no public subsidiaries and

income from the development right. As for other assistance fund ratios (25%/50%/75%), public

subsidiaries and income from the development right are expected in the amount equal to 25%, 50%, or

75% of the total investment.

Table 5.2-11 Case settings for financial analysis of bridge Sensibility analysis Case-0

(Base case) Case-1

(Optimistic case) Case-2

(Pessimistic case) Supportive capital ratio

1,000 yen 0% Case0-1000-0 Case1-1000-0 Case2-1000-0

25% Case0-1000-25 Case1-1000-25 Case2-1000-25

50% Case0-1000-50 Case1-1000-50 Case2-1000-50

75% Case0-1000-75 Case1-1000-75 Case2-1000-75

3,000 yen 0% Case0-3000-0 Case1-3000-0 Case2-3000-0

25% Case0-3000-25 Case1-3000-25 Case2-3000-25

50% Case0-3000-50 Case1-3000-50 Case2-3000-50

75% Case0-3000-75 Case1-3000-75 Case2-3000-75


5.2.3.2 Calculation results As the results of financial analyses, the calculation results for Case 0-3000-0 are shown in

Appendix_A5_DCF. For individual cases, the results of the Project IRR are shown in Table 5.2-12.

5-21

Table 5.2-12 Results for financial analysis of bridge Sensibility analysis Base case Case-1

(Optimistic case) Case-2

(Pessimistic case)Toll fare Supportive capital ratio

1,000 yen 0% -2.24% (-) -1.41% (-) ―

25% -1.87% (-) -0.86% (-) ―

50% -1.20% (-) 0.10% (-) ―

75% 0.48% (-4.60%) 1.97% (2.48%) ―

3,000 yen 0% 1.20% (0.50%) 2.15% (2.83%) 0.53%(-7.34%)

25% 2.00% (2.52%) 3.10% (4.59%) 1.22% (0.60%)

50% 3.34% (5.04%) 4.57% (7.29%) 2.41% (3.33%)

75% 6.08% (10.05%) 7.63% (12.71%) 4.92% (8.00%)

*Project IRR based on DCF. Figures in parentheses are equity-base IRR


As shown by the results, even when assuming a cutoff rate of 5%, this project is only financially

feasible in cases, Case0-3000- 、75 Case1-3000-75. Even for the investment amount shown in Case-1,

support capital of 50% or more is required for a toll fare of 3,000 yen.

Based on the above results, the following items must be reviewed in order to increase the feasibility of

the Sunda Strait Bridge.

・ Significant reduction in bridge construction costs.

・ A gratuitous loan from the government for bridge construction costs.

・ Restricted interest on interest-bearing support for bridge construction costs.

・ Apply profit from development in surrounding areas to repayment of bridge construction costs.

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Chapter 6

Planned Project Schedule


6-1

(1) General

In this project, stepwise development is suggested, assuming the timeline of surrounding

development plans, based on the project schedule of the bridge.

It takes a long time to construct a bridge. In the case of Akashi Bridge, which is one of the largest

bridges in the world, it took 11 years. In the case of Sunda Strait Bridge , it is difficult to estimate the

construction period, because we have not conducted the assessments of ground and tidal currents, etc.

for design and construction. In this survey, we referred to the case of Akashi Bridge.

As for the surrounding development plan, the first step is to improve the ports between Merak and

Bakauheni, which are essential for bridge construction. The second step is to develop airport cities

and industrial complexes along with the construction of the bridge, and improve transport

infrastructure. The third step is to develop energy resources like geothermal energy, etc. as energy

infrastructure.

(2) Master plan

As the construction of the Sunda Strait Bridge is a large-scale one, planning was formulated not only

for the construction of the bridge itself but also for regional development where the benefits of the

bridge contrcution can be used at maximum. Meanwhile, the following development themes have

been promoted for Sumatra and Java, which will be connected by the bridge. The project aims at

contributing to the realization of these development themes through the construction of the bridge

and the realization of regional development outlined in this Plan.

Sumatra：The shortage of the infrastructure (roads, railways, ports, power generation) should be

solved so that local industries can be developed. Also, rich natural resources will be deployed.

Java：The shortage of the infrastructure and regional discrepancy should be solved.

The following are the detailed explanations of stepwise development.

6-2

1) First step： Augmentation of ports

As mentioned in (1), it took eleven years to complete the Akashi Strait Bridge. Supposed that similar

time span is necessary for the construction of the Sunda Straight Bridge, the augmentation of ports,

such as the renovation of the existing ports and the development of new ports, would be required to

cope with traffic demands during the construction period until the completion of the bridge. Also

needed are the port facilities for the logistic support of bridge construction work. With this, the

augmentation of the existing ports, as well as the commencement of the architecture of the Sunda

Strait Bridge, is considered as the first step. This Project will contribute to the development of the

infrastructure in Lampung and Banten and bring short-term benefits.

Fig 6- ：1 Development plan（ 1st step）

(Step1)

★ Revamping Port

Lampung

Jakarta

✔ xxx

★ xxx Proposed project

Existing Project

Banten

6-3

2) Second step：Development of factory complex, airport city, and logistic infrastructure going with

construction of bridge

As mentioned in 3.5.4, the construction of the Sunda Strait Bridge requires the installation of tentative

large-scale facilities. For the effective deployment of these facilities, the development of the factory

complex centering on the locations of tentative facilities is considered as the second step. Also, the

development of an airport city, which integrates the renovation of the Bandar Lampung Airport into

the development of neighboring logistic facilities, is to be implemented as the second stage.

Furthermore, upon the construction of the Sunda Strait Bridge, the introduction of the toll way

between Lampung and Banten is proposed in the space planning of the both states. With this, the

development of the logistic infrastructure like this is also considered as the second step. In general,

upon the opening of a large-scale bridge, the so-called straw effect, whereby the merits of smaller

economic zones will be absorbed by those of larger economic zones, may take place. As

countermeasures against this effect, it is important to secure industrial growth in Lampung by

concurrently promoting the development of the factory complex, the airport city, and the logistic

infrastructure in Lampung.

Fig 6- ：2 Development plan （ 2nd step）

(Step2)

★ Revamping Port

Lampung

★ Industrial township for bridge construction

✔ Upgrading Airport★ Airport city

Logistics

✔ Toll Road✔ Railway expansion

Jakarta

✔ xxx

★ xxx Proposed project

Existing Project

Logistics

Energy & Resources

Banten

6-4

3) Third step：Energy development with deployment of natural resources

What is considered as third step is energy development in South Sumatra including Lampung,

whereby power will be generated with the deployment of biomass, geothermal energy, and coal,

particularly low-rank coal, which enables the creation of new industries that consume power a lot. The

energy development in South Sumatra will contribute to the development of the energy infrastructure

in Sumatra. In addition, it is expected that Java will also reap the fruits of energy development because

excessive power can be supplied to Java.

In Banten, meanwhile, urban development projects, such as smart cities or green cities, to avoid

over-concentration in Jakarta will be pursued. At the same time, the existing factory complexes will be

updated to energy-saving complexes, whereby loss of power can be reduced.

Fig 6- ：3 Development plan（ 3rd step）

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4) Forth step：Completion of Sunda Strait Bridge

In the final stage, with which the above-mentioned first, second, and three steps are overlaid, the

integration of the Sumatra economic corridor and the Java economic corridor will be fortified with the

completion of the Sunda Strait Bridge.

Fig 6- ：4 Development plan （ Total picture）

6-6

(3) Schedule

The following shows the provisional schedules of individual projects related to the construction of

Sunda Strait Bridge and surrounding area development. However, individual projects in Lampung and

Banten that are already in the process of planning are excluded because the necessity of those projects

per se was already examined.

Fig.6-5: Project schedule

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026

Step 1

Step 2

Step 3

Step 4

Bridge F/S *1

Design

Civil work

Tower

Cable

Installation

Operation

Area development

Port

Industrial area*2

Airport *3

Road/Rail

Energy

City development

: construction : operation

*1 Feasibility study by initiators (including soil survey, etc.) and Basic architecture

*2 Developing industrial city based on temporally construction area.

*3 Renovation of Lampung Airport


Chapter 7

Implementing Organization in Indonesia and Its

Capacity for Implementation


7-1

7.1 Outline of Organizations in Indonesia

7.1.1 Public (Government) Organizations Sunda Strait Bridge Project is planned to be implemented through PPP (Public Private Partnership)

scheme. For public sector, both central government and local government are involved for which the

Coordinating Ministry for Economic Affairs is in charge of overall coordination and the Ministry of

Public Works is responsible mainly for technical matters. Local government is involved in the

project by providing information and preparing legal base at local level. Outline of concerned

agencies are summarized in the table below.

Table 7-1: Role of Concerned Agencies Institution Section Activity

(1) Coordinating Ministry for Economic Affairs (MENKO)

Infrastructure and Regional Development Coordination

Coordination of concerned agencies

Preparation of regulation (Presidential Regulation)

(2) National Development Planning Agency (BAPPENAS)

Deputy for Facilities and Infrastructure, Directorate of Public Private Partnership Development (PPP)

Controlling and managing PPP, regulation and MoU

(3) Ministry of Public Works

Directorate General of Highways (Bina Marga)

Working group activity (data/information collection, workshop/seminar, expert invitation, study)

Study/design (preliminary) Directorate General of Spatial Management

Preparation of spatial plan for strategic area for Sunda

(4) Banten

province, Lampung province

Regional Development Planning Agency （BAPPEDA）

Establishment of committee (after Presidential Regulation is stipulated)

Preparation of spatial plan Selection of strategic area and

examination of priority programs Coordination with central

government: information provision, preparatory team member

7.1.2 Private Sector (Pt. BSM) Pt. BSM is a private consulting firm and is one of the initiators of Sunda Strait Bridge development.

Pt BSM was involved in original MoU (2004). Even though specific name of Pt BSM is not

mentioned as a member of consortium in the Presidential Regulation (No. 86/2011) prepared by

MENKO, Pt. BSM is practically acknowledged as a member, and plays a key role in implementation

7-2

of Sudan Strait Bridge. Particularly, Pt BSM is conducting lobbying activity to become “Initiator”

of the project based on the presidential regulation on PPP (No. 13/2010)

Pt. BSM is a company which affiliated with “Artha Graha Group” whose business covers from bank,

hotel, shopping center to tourism development, and is showing interest in developing the Sunda area.

For activity related to Sunda Strait Bridge development, Pt. BSM conducted Pre-F/S in 2009.

Presidential Regulation is prepared for implementation of specific projects which are designated as

national strategic interests and prepared based on concerned laws and government regulations.

7.2 Organization for the Project Implementation in Indonesia

7.2.1 Preparatory Work by Indonesian Side Preparation of Sunda Strait Bridge project has been accelerated after MoU (No. 550/20-HUK-2004)

was signed between Banten province and Lampung province in December 2004 (the MoU was

extended in 2007 (630/31-HUK/2007) due to expiration of original MoU). For the national level,

National Teams for Preparation of Sunda Strait Bridge Construction was established by the

Presidential Regulation (No. 36/2009) and Secretariat and Working Group was established by

Ministerial Decree of MENKO (No. KEP 29/M.EKON/05/2010), then working group members were

selected by Ministerial Decree of PU (KepmenPU No. 584/KPTS/2010), and preparatory work has

stared actively.

Main activity for preparatory work is to collect information regarding bridge construction and regional

development conduct workshop and seminar, invite experts and conduct studies. Activity of this year,

however, is not active as before. It can be assumed that stakeholders are waiting for the new

framework to be instructed in the new Presidential Regulation for Implementation of Sunda Strait

Bridge. The Presidential Regulation concerning Development of Strategic Area and Infrastructure of

Sunda Strait was approved in December 2011 as No. 86/2011. Outline of the preparatory work is

summarized in the table below.

Table 7-2: Preparatory Work by Indonesian Side

Year Regulation, Activities

2004 MoU between Banten province and Lampung province regarding Sunda Strait Bridge

Construction (No. 550/20-HUK-2004). Renewed in 2007

2008 Preparation of Presidential Regulation for National Team for preparation of Sunda Strait

Bridge construction

2009 Presidential Regulation for National Team for preparation of Sunda Strait Bridge

construction (Keppres 36/2009）was enacted

7-3

Year Regulation, Activities

2010 Ministerial Decree regarding Secretariat and Working Group of preparation of Sunda Strait Bridge construction（Kepmenko No. KEP-29/M.EKON/05/2010）(MENKO) was enacted

Ministerial Decree regarding members of Secretariat and Working Group in National Teams of preparation of Sunda Strait Bridge construction was enacted

Workshop, seminar, information collection (mainly managed by Bina Marga, PU) 2011 Preparation of implementation of Sunda Strait Bridge construction: Development

Board (Advisory/Implementing Board), Consortium, Support and Warranty Preparation of Spatial Plan for strategic area for Sunda (mainly managed by DG

Spatial Planning, PU) Workshop, seminar, information collection (mainly managed by Bina Marga, PU) Presidential Regulation concerning Development of Strategic Area and Infrastructure

of Sunda Strait was approved in December 2011 as No. 86/2011)

7.2.2 Implementation Organization According to Indonesian government, Sunda Strait Bridge project is expected to be implemented as

PPP scheme. Even though PPP scheme is applied, the government expects the private sector or

consortium to be responsible for core activities including survey/design, construction, and finance, so

the role of government is limited to management and provide fund for some parts of the project. Role

and responsibility between the public and the private sector is summarized below.

Public sector role: policy and strategy development, regulation preparation, consortium

management, plans approval, support finance (warranty, fund)

Private sector role: preparatory work for implementation (including F/S, basic design until

2014, cost is estimated to be US$150million), securing fund, report to development board

Based on the policy and conditions for implementation of Sunda Strait Bridge project, MENKO and

concerned institutions (BAPPENAS, PU) has prepared the Presidential Regulation for implementation,

whose objective is to “development of strategic area and infrastructure of Sunda Strait including

planning activity, construction implementation, operation and maintenance of the strategic area and

infrastructure of Sunda Strait, which instructs (i) government organization (Development Board), (ii)

Banten Lampung Consortium, (iii) BUKSISS (Badan Usaha Kawasan Strategis dan Infrastructure

Selat Sunda / Business Organization for Strategic Area and Infrastructure of Sunda Strait), and (iv)

Support and Warranty. Consortium member is composed of local government owned enterprises and

its associates, and acknowledged as “Project Initiator”.

Main activity is expected to be conducted by the Consortium, and after the Presidential Regulation is

approved, F/S will be conducted by the Consortium.

Outline of the Presidential Regulation is summarized in the table below.

7-4

Table 7-3: Outline of the Presidential Regulation

(prepared based on document provided by MENKIO) Components Detail

Organization (Development Board)

Development Board is composed of Steering Committee and Implementation Board 1. Steering Committee (1) Staff

Chairman: Coordinating Ministry of Economic Affairs Vice Chairman: Coordinating Ministry of Politics, Legal and

Security Affairs Daily Chairman: Minister of Public Works Vice Daily Chairman: Minister of Transportation Secretary: Vice Minister of Public Works Vice Secretary: Vice Minister of Transportation Members: concerned ministries and Banten province, Lampung

province (20 members) (2) Scope of work :

Establish national policies, direction and strategy Provide guidance for action to the Implementation Board Approve the Master Plan Determine BUMN and/or BUMD who will work with Banten –

Lampung Consortium Hold Steering Committee coordinating meeting regularly Submit report to the President Facilitating the transfer of the authorities

2. Implementation Board (1) Staff

Head Secretary Deputy of Planning and Control Division Deputy of Procurement Division Deputy of Technical Field

(2) Scope of work : Develop programs and define the settings Coordinate relevant institutions Accept and implement devolution of powers Facilitating one stop service for licensing Prepare and establish master plan and action plans Granting concession to BUKSISS (Badan Usaha Kawasan Strategis

dan Infrastructure Selat Sunda / Business Organization for Strategic Area and Infrastructure of Sunda Strait)

Supervise BUKSISS Planning for land acquisition Report the implementation to the President through the Advisory

Board periodically Develop board budget

Banten-Lampung Consortium

Forming consortium: Banten province, Lampung province, state owned corporation (BUMD)

F/S, managing basic design (procurement of consultant) Criteria for Consortium

7-5

Components Detail Lead by the National Business Agency Have adequate financial capability Have the competence and experience of implementing large scale

projects Have ability to share payments and fund mobilization in national and

international scope Gaining the bank support Guarantee to complete the project

BUKSISS Procurement condition of BUKSISS Responsibility and authority of BUKSISS

Support and Warranty Government can provide support and warranty to the concession Support can be a fiscal and non fiscal contribution Warranty can be financial compensation

Fig. 7-1: Relations among Stakeholders

7.2.3 Position of Project Initiator in PPP Scheme PPP in Indonesia is instructed in the Presidential Regulation on No. 67/2005. The Projects to be

implemented through PPP should secure suitability with national and regional development/sector

plan, spatial plan, inter-regional/inter-sector project, and social benefit. Types or sectors of the

project include, transportation, water resources development, sewerage, telecommunication,

electricity, gas/oil. In addition, risk management is mentioned, which includes fiscal and non fiscal

government support. Detail of risk management will be mentioned in the “Cooperation Agreement”.

7-6

Later the Presidential Regulation was revised by No. 13/2010 and No. 56/2011 in order to accelerate

infrastructure development by PPP. Main revision is to clarify the condition of unsolicited project

and favorable condition of initiator for public tender.

Conditions for solicited projects includes: (i) it is not included in the master plan of the relevant sector,

(ii) it is technically integrated with the master plan of the relevant sector, (iii) it is economically and

financially feasible, and (iv) it does not require Government Support in form of fiscal contribution.”

In addition, if the initiator conducts F/S, additional value is added for public tender for implementation,

compensation provided depending on the condition or the results of tender (detail is mentioned in

Chapter 9).

7.3 Review of Implementation Capability

7.3.1 Implementation Capability Implementation capability is reviewed based on the interviews and document collected in Indonesia

for three aspects: technical aspect, financial aspect and operational aspect.

(1) Technical aspect

According to the Ministry of Public Works, comprehensive examination on Sunda Strait Bridge has

not been conducted. Main activities are limited to information collection, workshop/seminar, study

conducted individually. In addition, survey necessary for construction (e.g. topography, soil) has

been conducted by the private sector in a limited scale so the quality may not be high enough to

satisfy requirement for design work. From those activities, some information regarding bridge

construction and regional development is available but since comprehensive examination that is

specific to Sunda Strait Bridge has not been conducted, according to PU personnel, it is necessary

for technical and operational support.

(2) Financial aspect

Since Sunda Strait Bridge project is planned to be implemented through PPP scheme, cost for survey,

design, construction, has to be borne by the Consortium, which is one of the criteria mentioned in the

Presidential Regulation. According to the information from BAPPENAS, public sector can provide

financial support but maximum is limited to 20% of the total construction cost, and cost of F/S and

DED is estimated to be about US$ 150 million and all cost has to be provided by the Consortium.

Cost of construction, on the other hand, is estimated to be 2 trillion yen (US$ 25 billion) and the

Consortium will be given right to develop Sunda area (or strategic area for Sunda), but it is difficult

to cover the construction cost from toll fee and development rights alone.

7-7

(3) Operational aspect

Role sharing between the public sector and the Consortium in general terms is instructed in the

Presidential Regulation. For the public sector responsibility as supervision of the project,

establishment of development board, its structure and members and securing budget for the activities

of the board, and regular reporting responsibility to the President are instructed. For the consortium

responsibility, preparation for the project (feasibility study, basic design, implementation

organization, securing budget source, implementation mechanism and schedule) are instructed.

After the Presidential Regulation is approved, detail instruction is planned to be instructed by

another regulation and cooperation agreement for project implementation, through which operational

aspect and technical aspect (work items, schedule), and risk management will be defined.

In addition, operation of ferry has to be considered. For setting tariff on toll for the bridge, existence of

ferry becomes one of constraints. If ferry operation continues, demarcation between bridge and ferry

has to be examined in order to secure traffic volume of the bridge.

7-8

Chapter 8 Technical Advantages of Japanese Companies


8-1

8.1 Bridges (1) Global competency of Japanese companies and possibility of their winning of bids for target

project Japanese firms’ advantages regarding bridges are significant. Through a large number of large bridge

projects, including the one for Akashi Strait Bridge, the world’s longest suspension bridge, Japanese

firms have the cutting-edge advanced bridge technologies for the planning, analysis, designing,

materials, construction, and management of cable-stayed and suspension bridges. Accordingly, the

potential of Japanese firms is considered high. (2) Content and prices of major equipment and materials supplied from Japan The materials that could be supplied from Japan are lightweight, high-strength steel cables (for

suspension bridges) and steel plates for bridges, which are produced with the Japanese latest

technology. The construction technologies for shortening a construction period include the base part

construction using caissons, antiwashout concrete, and the underwater placement method; prefab

towers, cable installation, and coating techniques. Japanese firms also have the

environmentally-friendly design, aseismic measures, and lifecycle-conscious operation and

maintenance, including the system for preventing the corrosion of the inner parts of cables, girders,

and towers using dry air. (3) Activities for enhancement of possibilities of Japanese companies’ winning of orders As for the activities of other countries, China, South Korea, Italy, France, and Denmark, etc. are

approaching the Indonesian government. In this circumstance, in order to use our technical advantages,

it is necessary for the public and private sectors to collaboratively appeal to the Indonesian

government and enlist continuous support from them such as the host by the Japanese government of

seminars selling Japan’s high-quality bridge construction technologies.

8.2 Ports The following points can be considered Japanese companies’ strength in the port sector.

8.2.1 New ports (1) Global competency of Japanese companies and possibility of their winning of bids for target

project The targets of the project are regular port facilities. In previous projects, it was common for Japanese

companies, as well as Western consultants and construction companies, to be included. Recently,

however, with the enhancement of the competency of local companies in Indonesia, renovation can

be completed by local consultants and construction companies. Therefore, it seems that Japanese

companies are not so advantageous in terms of technologies. (2) Content of major equipment and materials supplied from Japan Port construction work does not require special equipment or materials, and all the materials can be

procured locally. With this, almost no merits can be obtained if materials are supplied from Japan

8-2

with transportation costs. (3) Activities for enhancement of possibility of Japanese companies’ winning of orders If a new port is constructed at once as part of tentative facilities during the extended construction

work going with the construction of the bridge, there are a lot of merits. Particularly, it is possible

that Japanese companies can maximize knowhow on tentative yards for the construction of

long-span bridges, the area of thier specialty. With this, it is important to for the public and private sectors in Japan to collaboratively appeal to the

Indonesian government and to sell their technical strength in the construction of a bridge itself and

their advantage in tentative yards, as well as the scheme to convert tentative facilities into a factory

complex upon the completion of the construction of the bridge.

8.2.2 Ferries (1) Global competency of Japanese companies and possibility of their winning of bids for target

project From the fact that the majority of commercial ferries in service between Meark and Bakauheni are

second-hand Ro-Ro ships made in Japan, it can be considered that Japan has advantage in the

deployment of commercial ships. (2) Content of major equipment and materials supplied from Japan Indonesia seems to continue to eye not new ships but cheap, second-hand ships. However, there is

possibility that the introduction of second-hand ships will pose problems to the effective handling of

traffic demands until the completion of the bridge because there is gap between second-hand ships in

their sizes, capacity of loading cars, performance including navigation speeds, and ship conditions.

New ships are more desirable because their performance conditions are homogenous. With this, as

major equipment supplied from Japan, Japan-made ships with advanced energy-saving technology

can be considered. (3) Activities for enhancement of possibility of Japanese companies’ winning of orders For the supply of new Japanese ships reflecting our high-level shipbuilding technology, the use of

the grant aid scheme is considered to be realistic. This system, however, cannot be used for

Indonesia because it has already become unqualified as target nations of regular grant aids. As

mentioned in Chapter 3, Indonesian government officials pay attention only to the positive side of

the bridge construction and seem to be unaware of the negative byproducts, such as problem that if

appropriate measures are not be introduced, local ferry services, which compete with the bridge

service, will face danger of bankruptcy, not to mention that development investment until the

completion of the bridge will go to waste.

From this, it can be recommended that the public and private sector in Japan will cooperate to appeal

to the Indonesian government and to sell Japanese technologies by incorporating the following three

points into the bridge construction package: (i) the supply of new ships, (ii) surveys on the

8-3

development of the networks of long-distance ferries after the completion of the bridge, and (iii)

operational cooperation built on Japanese companies’ expertise and knowhow on the operations of

long-distance ferries.

8.3 Roads and Railways (1) Global competence of Japanese companies and possibility of their winning of bids for target

project In the road and railway sector, Japan is not so advantageous in terms of technology because the

planning, architecture, and construction of roads and rails are also possible in Indonesia. Japan,

however, can boast the high reliability of its roads featuring the state-of-the-art anti-seismic

technology, knowhow on operational and maintenance management for the minimization of

life-cycle costs, and safety equipment such as ATS (the automatic train stop system). Also, Japan

can offer support in terms of advanced technology, such as ITS (Intelligent Transport Systems), as

well as the development of commercial areas, such as highway rest areas, and urban development

near railways. (2) Content and prices of major equipment and materials supplied from Japan With the introduction of the ETC（electronic toll collection）system, the supply of ETC-related

equipment is expected. As for railways, with the introduction of the ATS, the supply of equipment

and materials combined with signal and communication facilities is expected. (3) Activities for enhancement of possibility of Japanese companies’ winning of orders ATS- and ETC-related facilities manufactured by Japanese companies have advantages in terms of

safety and performance. Overseas companies, on the contrary, are more competitive in terms of

prices. For the enhancement of possibility of Japanese companies’ winning of orders, it is necessary

not only to constantly sell high-level technical competence of Japanese companies but also to

promote the trainings of Indonesian personnel in charge of maintenance and management through

technical cooperation, etc. so that they will prioritize safety, as well as cost-effectiveness. Also,

Indonesian personnel should be informed that ATS- and ETC-related equipment can be effective

only with appropriate maintenance work. With this, it is recommended that the package shall include

maintenance work, as well as initial investment.

8.4 Regional Development

8.4.1 Urban development/ Factory complex (1) Global competence of Japanese companies and possibility of their winning of bids for target

project Japan’s advantages regarding development of urban cities and industrial cities are element

technologies of sensors, batteries, information systems, and optimum designs for the development of

advanced cities, such as SMART cities, eco cities, and airport cities. (2) Content of major equipment and materials supplied from Japan

8-4

For planning and designing stages, Japanese firms have the know-how to design and optimize

integrated cities, such as SMART, eco, and airport cities, the technologies to dynamically simulate and

optimize distribution, and the know-how to minimize lifecycle costs considering operation and

management technologies. For industrial complexes, Japanese firms have the know-how to design and

optimize cities where industrial and residential areas are integrated, the technologies for advanced

control and optimal design with information systems, the know-how to optimize industrial complexes

(including utilities and materials) based on the energy-saving technology, the technologies to

dynamically simulate and optimize distribution, the know-how to minimize lifecycle costs

considering operation and management technologies, and the know-how for one-stop services

prioritizing customer services. (3) Activities for enhancement of possibility of Japanese companies’ winning of orders The fields of development of urban cities and industrial cities are considerably swayed by

development plans in each country, and so it is important to approach the country from the stage of a

master plan. When producing a master plan, it is necessary to approach the country under the private

initiative, and enlist assistance from the Japanese government.

8.4.2 Airport/ Airport city (1) Global competence of Japanese companies and possibility of their winning of bids for target

project Japan’s advantages regarding airports include the experience of developing many airports, the

know-how to operate airports for a long time, and the know-how for urban development integrating

surrounding areas. (2) Content of major equipment and materials supplied from Japan This project requires not only the technology for optimizing the entire airport, but also the

technologies for designing airport cities, energizing surrounding areas, optimizing the distribution

networks around the airport, operating and managing the airport, and minimizing lifecycle costs. Thus,

there are many areas where Japanese firms can contribute to designing and managing project. (3) Activities for enhancement of possibility of Japanese companies’ winning of orders In Indonesia, an airport will be developed based on PPP. In order to conduct the above-mentioned

large-scale project for an airport city, it is indispensable to produce a master plan considering

surrounding areas and enlist cooperation from not only Indonesia but also the Japanese government.

8.5 Energy (1) Global competence of Japanese companies and possibility of their winning of bids for target

project Japan’s advantages regarding energy are outstanding technologies in reliability, efficiency, and

energy-saving, including highly-efficient gas/steam turbines, efficient power generation systems,

including combined cycle and cogeneration systems, and optimal design and control technologies for

8-5

minimizing transmission loss. The utilization of these technologies would contribute to the

development of reliable power generation systems and transmission networks in Indonesia. As for coal-using power generation, Japan has the unique technologies to reform low-rank coal. In

Indonesia, coal ash is recognized as a hazardous substance, and difficult to dispose of, and so coal

ash is not utilized there. Japan uses coal ash in the fields of cement, civil engineering, construction,

agriculture and forestry, etc. and has various technologies to utilize coal ash. Japanese firms are competitive also in the field geothermal power generation. There is a high

possibility that Japanese firms will receive orders for the research and development of resources, the

construction of power plants, and the supply of power generators, as they have the technologies for

preventing corrosion and digging at high temperatures. (2) Content and prices of major equipment and materials supplied from Japan Japanese companies can boast their distinctive techniques for refining low-rank coal. The possible

benefits of these distinctive techniques include license fees, the winning of the all-in-one orders,

including the design of facilities, the supply of equipment, and installation work, and business

income. Also, Japan has a high share of geothermal power generation plants, and the supply of

power generation facilities is expected. (3) Activities for enhancement of possibility of Japanese companies’ winning of orders The utilization of low-rank coal is accompanied by risks in technological development, while

geothermal power generation is accompanied by risks in the development of underground resources.

In order to reduce these risks, it is necessary to conduct highly precise prior researches. We expect

cooperation in such researches from the Indonesian and Japanese governments.

8-6

Appendix


Appendix A4:

Evaluation of Environmental and Social Impacts


A4-1

Note: For explanation of legends, see Table A4-1.

Figure A4-1 Land Use Map, Banten Province, Republic of Indonesia

A4-2

Note: For explanation of legends, see Table A4-1.

Figure A4-2

Source: Homepage of Ministry of Transportation, Indonesia, 2010

A4-3

Table A4-1

Explanation of Legends in Land Use Maps Indonesian English Indonesian English ① Permukiman ? Capital of province ② Perkebuman Plantation Capital of region ③ Pertambangan Mining Capital of district ④ Pertanian Lahan Kering Agriculture field

shrub Batas Provinsi Boundary provincial

⑤ Pertanian Lahan Kering & Belukar

Agriculture field shrub & scrub

Batas Kabupaten/Kota Boundary of country/town

⑥ Transmigrasi Restrainment Batas Kecamatan Boundary ⑦ Sawah Rice field Garis Tepi

Pantai/Pulau Line edge shore/island

⑧ Tambak Fish pons Sungai Dua Garis River two line ⑨ Laban Terbuka Field open Garis Tepi Danau/Situ Line edge lake/ ⑩ Hutan Lahan Kering

Primer Forest field shrub primer

Jalan Kereta Api Rail road

⑪ Hutan Lahan Kering Sekudar

Forest field shrub second

Jalan Arteri

⑫ Hutan Mangrove Sekudar

Forest mangrove second

Jalan Kolektor

⑬ Hutan Tanaman Forest plant Jalan Lokal Local road ⑭ Rawa Campur Belukar Marsh mixed shrub Jalan Tol Toll road ⑮ Savana Savanna Landas Pacu ⑰ Semak Belukar Bush shrub

A4-4

Figure A4-3 Organization of Ministry of Transportation, Republic of Indonesia (Source: Homepage of Ministry of Transportation, Indonesia, 2010)

Directorate General of Sea Transportation

Vice Minister

Directorate General of Air Transportation

Expert Staffs ① Transportation

Environmental Section ② Transportation Section ③ Transportation

Regulation & Safety Section

④ Transportation Technology & Energy Section

⑤ Transportation Economics & Partnership Section

Head of Education &

Training

Secretariat General

Inspector General

Directorate General of Railways (DGR)

Head of Research &

Development

Director of Traffic & Railway

Transport

Secretary

Directorate General of Land Transportation

Director of Safety & Technical Facilities

Minister of

Transportation （MOT）

Director of Technical

Infrastructures

A4-5

Figure A4-4

Organization of Ministry of Environment, Republic of Indonesia (Source: State Ministry of Environmental Regulation No. 16 Year 2010, Organization and

Management Work of Ministry of Environment, MOE 2110)

Management Center

Eco-regional Sumapapua

Deputy of Environment

al Affairs


Control

Deputy of Environmental

Damage Control & Climate

Change

Deputy of Management B3, B3 Waste

& Garbage

Bureau of Laws & Public

Relation

Inspectorate

Bureau of Planning &

Foreign Cooperation

Deputy of Communication Environmental & Community Empowerment


al Law Compliance

Deputy of Field Technical Facilities and Environmental

Education & Capacity Building

Management Center,

Echo-regional Sumatra

Bali and Management Center, Eco-regional Nustsra

Management Center

Eco-regional Java

Expert Staffs

Management Center

Eco-regional Kalimantan

Minister of Environment （MENLH）

Secretary for Ministry of Environment

Bureau General

A4-6

Figure A4-5 Organization of Regional Environmental Agency (BPLHD) in DKI Jakarta, Republic of Indonesia)

(Source: Data and information available from the BPLHD in DKI Jakarta on Nov. 12, 2010)

Environmental Legal

Compliant Facilities

Research & Development

Program & Budget

Personnel

Secretariat

Head of

Regional Environmental Agency (BLHD)

Sector of Conservation & Environmental Arrangement

Environmental Legal


Environmental Legal


Habitat Control &

Environmental Sanitation

Planning Environmental

Resource

Sector of Prevention & Management of

Environmental Impacts of Urban Energy Resource

Sector of Pollution Control and

Environmental Sanitation

Sector of Enforcement of Environmental

Laws

Conservation &

Environmental Restoration

Management of Waste

Resources and Waste B3

Source Pollution Control

Activities

Environmental Roles

Environmental Laboratory

Financial

Climate Change

Mitigation &

Adaptation

Urban Energy Resources

Management

General

AMDAL

A4-7

Table A4-2

Indonesian Ambient Air Quality Standards No. Parameter Time1)

Maximum

allowable limit Analysis Methods and Equipment

Remarks

(ppm) (μg/m3)1. SO2 24 hr 0.10 260 Pararosanilin,

Spectrophotometer

2. CO 8 hr 20 2,260 NDIR 3) analyzer 3. NOx 24 hr 0.05 92.5 Salzman,

Spectrophotometer

4. O3 1 hr 0.19 200 Chemiliuminescent, Spectrophotometer

5. Dust 24 hr 0.26 Gravimetric, Hi-Vol4) 6. Pb 24 hr 0.06 Gravimetric,

Extractive, Hi-Vol4), Spectrophotometer

7. H2S 2) 30 min 0.03 42 Nessler, Spectrophotometer

8. NH3 24 hr 2 1,360 Nessler, Spectrophotometer

9. Hydrocarbons 3 hr 0.24 160 Flame ionization, Gas chromatograph

Source: Degree of the State Minister of Environment on Guidelines for Establishment of Environmental Quality Standards No.2 of 1988, Notes: 1) The time means a measurement time for averaging time and measurement per hours by “geometric mean” calculation.; 2) Not applicable to areas containing natural H2S.; 3) NDIR: Non-dispersive infrared; Hi-Vol: High volume sampling method

Table A4-3 Indonesian Water Quality Standards

No. Parameter Unit Maximum Allowable Limits A1) B2) C3) D4)

I. Physical items

1. Odor - None - - - 2. Soluble substances mg/ℓ 1,000 1,000 1,000 1,000 3. Turbidity NTU6) 5 - - - 4. Taste - No taste - - - 5. Temperature ℃ Ambient

air temp. ∓ 3

Normal water temp.

Normal water temp.

Normal water temp.

6. Color TCU7) 15 - - - 7. Electric conductivity (25℃) μ

mho/cm

- - - 2,250.

II. Chemical items a. Inorganic substances

1. Hg mg/ℓ 0.001 0.001 0.002 0.005 2. Al mg/ℓ 0.2 - - - 3. Free ammonia (NH3) mg/ℓ - 0.5 0.02 -

A4-8


4. As mg/ℓ 0.05 0.05 1 1 5. Ba mg/ℓ 1.0 1 - - 6. Fe mg/ℓ 0.3 5 - - 7. Fluorides mg/ℓ 0.5 1.5 1.5 - 8. B mg/ℓ - - - 1 9. Cd mg/ℓ 0.005 0.01 0.01 0.01

10. Hardness (CaCO3) mg/ℓ 500 - - - 11. Chloride mg/ℓ 250 600 - - 12. Free Chlorides（HClO，OCl） mg/ℓ - - 0.003 - 13. Co mg/ℓ - - - 0.2 14. Cr6+ mg/ℓ 0.05 0.05 0.05 1 15. Mn mg/ℓ 0.1 0.5 - 2 16. Na mg/ℓ 200 - - - 17. Alkali salt mg/ℓ - - - 60 18. Ni mg/ℓ - - - 0.5 19. NO3- mg/ℓ 10 10 - - 20. NO2- mg/ℓ 1.0 1.0 0.06 - 21. Ag mg/ℓ 0.05 - - - 22. Dissolved oxygen (DO) mg/ℓ - 6 3 - 23. pH - 6.5 – 8.5 5 - 9 6 - 9 5 – 9 24. Se mg/ℓ 0.01 0.01 0.05 0.05 25. Zn mg/ℓ 5 5 0.02 2 26. Cyanides mg/ℓ 0.1 0.1 0.02 - 27. Sulfates mg/ℓ 400 400 - - 28. Sulfur compounds

hydrogen-sulfide mg/ℓ 0.05 0.1 0.002 -

29. Absorption rate of Na mg/ℓ - - - 18 30. Cu mg/ℓ 1.0 1.0 0.02 0.2 31. Pb mg/ℓ 0.05 0.1 0.03 1 32. Carbon residue of sodium

carbonate mg/ℓ - - - 1.25 – 2.50

b. Organic substances 1. Aldrin, Dieldrin mg/ℓ 0.0007 0.017 - - 2. Benzene mg/ℓ 0.01 - - - 3. BHC mg/ℓ - - 0.21 - 4. Benzo (a) pyrene mg/ℓ 0.0001 - - - 5. Chloroform extraction mg/ℓ - 0.5 - - 6. Chlordane mg/ℓ 0.0003 0.003 - - 7. Chloroform mg/ℓ 0.03 - - 8. 2-4 D mg/ℓ 0.1 - - - 9. DDT mg/ℓ 0.03 0.042 0.002

10. Surfactants mg/ℓ 0.5 - - - 11. 1, 2- Dichloroethane mg/ℓ 0.01 - - 12. 1.1- Dichloroethene mg/ℓ 0.0003 - - - 13. Endrins mg/ℓ - 0.001 0.004 - 14. Heptachlors,

Heptachlorepoxides mg/ℓ 0.003 0.018 - -

A4-9


15. Hexachlorphenol mg/ℓ 0.00001 - - - 16. Lindane mg/ℓ 0.004 0.056 - - 17. Methoxychlor mg/ℓ 0.03 0.035 - - 18. Methylene blue mg/ℓ - 0.5 0.2 - 19. Oils mg/ℓ - Nil 1 - 20. Organic phosphorus ，

Carbonates mg/ℓ - 0.1 0.1 -

21. Penta-chloro-phenols mg/ℓ 0.01 - - - 22. Phenols mg/ℓ - 0.002 - - 23. All pesticides mg/ℓ 0.1 - - - 24. 2,4,6- Trichlorophenol mg/ℓ 0.01 - - - 25. Organic matters (KMnO4) mg/ℓ 10 - - -

III. Microbiological 1. Fecal coliform mg/ℓ 0 2,000 - - 2. Total coliform mg/ℓ 3 10,000 - - IV. Radioactive

1 Totalαray Bq/ℓ 0.1 0.1 0.1 0.1 2 Totalβray Bq/ℓ 1.0 1.0 1.0 1.0

Source: Appendix 1 to 4, Government Regulation on the Control of Water Pollution No. 20 of 1990. Notes: 1) Drinkable water; 2) Raw water for drinking water; 3) Applicable to fisheries industries and livestock farming; 4) Applicable to agriculture, industrial waters, hydropower, etc.; 5) Heavy metals: Soluble metals in water.; 6) NTU: Nephelometric Turbidity Units; 7) TCU: True Color Unit

Table A4-4 Indonesian Noise Standards

No. Classification of Areas Allowable Limit (dB(A))

Remarks

a. Area usage 1. Housing and settlements 55 2. Trade and services 70 3. Trade offices and trade 65 4. Green open spaces 50 5. Industrial areas 70 6. Governance and public facilities 60 7. Recreation areas 70 8. Special - Airport - - Railway station - - Port and harbor 70 - Heritage 60

b. Activity area 1. Hospitals or the like 55 2. Schools or the like 55 3. Places of workshops or the like 55

Source: KEP-48/MENLH/11/1996

A4-10

Table A4-5 Indonesian Vibration Standards for Human Health

Frequency (Hz)

Vibration Level (Displacement 10-6 m)

Remarks

Not disturbing

Disturbing Not Comfortable

Causes sickness

4.0 ‹100 100 – 500 500 – 1,000 ›1,000 5.0 ‹80 80 – 350 350 – 1,000 ›1,000 6.3 ‹70 70 -275 275 – 1,000 ›1,000 8.0 ‹50 50 - 160 160 – 500 ›500 10.0 ‹37 37 – 120 120 – 300 ›300 12.5 ‹32 32 - 90 90 – 220 ›220 16.0 ‹25 25 – 60 60 – 120 ›120 20.0 ‹20 20 - 40 40 – 85 ›85 25.0 ‹17 17 - 30 30 – 50 ›50 31.5 ‹12 12 – 20 20 – 30 ›30 40.0 ‹9 9 – 15 15 – 20 ›20 50.0 ‹8 8 -12 12 – 15 ›15 63.0 ‹6 6 - 9 9 – 12 ›12

Source: KEP-49/MENLH/11/1996

Table A4-6 Indonesian Vibration Standards for Buildings

Frequency (Hz)

Vibration Level (mm/s (Peak))

Remarks

Category A1)

Category B2)

Category C3)

Category D4)

4.0 ‹2.0 2.0– 27 27 – 140 ›140 5.0 ‹7.5 7.5– 25 25 – 130 ›130 6.3 ‹7.0 7.0 – 21 21 – 110 ›110 8.0 ‹6.0 6.0 – 19 19 – 100 ›100

10.0 ‹5.2 5.2 – 16 16 – 90 ›90 12.5 ‹4.8 4.8 - 15 15 – 80 ›80 16.0 ‹4.0 4.0 – 14 14 – 70 ›70 20.0 ‹3.8 3.8 – 12 12 – 67 ›67 25.0 ‹3.2 3.2 – 10 10 – 60 ›60 31.5 ‹3.0 3.0 – 9 9 – 53 ›53 40.0 ‹2.0 2.0– 8 8 – 50 ›50 50.0 ‹1.0 1.0 - 7 7 – 42 ›42

Source: KEP-49/MENLH/11/1996, Notes: 1) Not cause damage to buildings; 2) May cause cracks in plaster; 3) May cause damage to load-bearing wall structures; 4) May damage to wall bearers.

A4-11

Table A4-7 Indonesian Exhaust Gas Emission Standards in Other Industries

No. Parameter Maximum limit2000～

(mg/m3)

Remarks

1. Ammonia 0.5 2. Chlorine gas 10 3. Hydrogen chloride 5 4. Hydrogen fluoride 10 5. Nitrogen oxide 1,000 6. Opacity 35% 7. Dust 350 8. Sulfur dioxide 800 9. Reducing sulfur 35

Source: Appendix 1A to 5A and 1B to 5B, Decree of the State Minister of Environment on Emission Standards for Stationary Sources No. 13 of 1995, Note: The volume of exhaust gas is a dry volume at 25℃ and 1 atm..

TableA4-8 Effluent Discharge Standards by Indonesian Local and National Governments

(Unit: mg/ℓ) No. Parameter West Java

Province Indonesian National 2)

Reference (Japanese National)

Remarks

Industrial Estates

Classification

A 6) B 7) I 3) II 4) 1. Temperature (℃) 35 38 38 38 - 2. pH 6 – 9 6 - 9 6 - 9 6 – 9 5.8 – 8.6 3. SS 300 200 200 400 200 4. DSS 1,000 2,000 2,000 4,000 - 5. Color 8) 300 300 - - - 6. BOD 500 300 50 150 160 7. CODCr 800 500 100 300 160 9) 8. Cu 0.5 2 2 3 3 9. Zn 5 5 5 10 5

10. Fe 5 5 5 10 10 11. T-Cr - 0.5 0.5 1 2 12. Cr+6 0.1 0.1 0.1 0.5 0.5 13. Mn 0.5 2 2 5 10 14. Ni 0.1 0.2 0.2 0.5 - 15. T-CN 0.02 0.05 0.05 0.5 1.0 16. Cd 0.01 0.05 0.05 0.1 0.1 17. Pb 0.1 0.1 0.1 1 0.1 18. T-Hg 0.005 0.002 0.002 0.005 0.005 19. Ba - 2 - - - 20. Sn 0.05 2 2 3 - 21. As 0.05 0.1 0.1 0.5 - 22. Se 0.01 0.05 0.05 0.5 - 23. Co - 0.4 0.4 0.6 - 24. H2S 0.01 0.05 0.05 0.1 25. F 1.5 2 2 3 15

A4-12

No. Parameter West Java Province

Indonesian National 2)

Reference (Japanese National)

Remarks

Industrial Estates

Classification

A 6) B 7) I 3) II 4) 26. Cl2 1 1 1 2 - 27. Cl- 600 - - - - 28. SO42- 400 - - - - 29. Hex. Ex 10) 10 5 5 10 5 30. Hex. Ex 11) 10 10 10 50 30 31. Phenol 0.002 0.5 0.5 1 5 32. Organics12) - - - - - 33. NH3-N 0.5 1 1 5 - 34. NO3-N 10 20 - - - 35. NO2-H 1 1 - - - 36. T-N - - - - 120 37. B.M.A. 13) 0.5 5 - - - 38 PO4 - - - - - 39. P - - - - 16

Source: Decree of the Office of the Prime Minister which stipulates effluent standards in (Appendix Table-1, No. 53, 1993 and Appendix Table-2, No. 40, 1993); Notes: 1) （Blanked）; 2) The Decree of the State Minister of Environment which stipulates factory effluent standards (KEP-51/MENLH/10/95, Oct. 23, 1993); 3) Applicable to factories with advanced effluent treatment equipment; 4) Applicable to factories with simple effluent treatment equipment.; 5) （ Blanked ） ; 6) West Java Province Governor’s Circular No. 660.31/SK/694-BKPMD/83, May 26, 1982; 7) West Java Province Governor’s Circular No. 16/1997, Mar. 20, 1977 “Waste Water Standard Requirements for Industrial Activities”; 8) Department of Health No. 416/MENKES/IX/1990; 9) The COD is a value measured by potassium permanganate as an oxidant; 10) Mineral oil; 11) Organic substances; 12) Measured by permanganate; 13) Blue methyl active compounds

Appendix A5:

Result of financial analysis

Case0-3000-0


Prepared for: The Ministry of Economy, Trade and Industry Prepared ...

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