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 List of Abbreviations (Abbreviation) A ADB AMDAL ANDAL AS B ATC BAPPEDA BAPEDAL BAPPENAS BKPM BKPMD BPLHD BPN BPPT BRT BSM C D B3 Capex CDM CER DCF DGLT DGR DGST DNA-CDM DKI Jakarta E EIA/ESIA ERP (English and/or Indonesian) Asian Development Bank Analisis Mengenai Dampak Lingkungan Hidup (EIA) Analisis Dampak Lingkungan Hidup (Environmental Impact Analysis) Automatic Train Control Aerial Spinning Automatic Train Control Badan Perencana Pembangunan Daerah (Indonesian Regional body for planning and development) Badan Pengendalian Dampak Lingkungan (Environmental Management Agency) National Development Planning Agency Badan Koordinasi Penanaman Modal National Investment Coordination Agency Badan Pengelolaan Lingkungan Daerah (Regional Environmental Agency/Department of Environment) Badan Pertanahan Nasional (National Land Agency) Agency for Assessment and Application of Technology, Indonesia. Bus Rapid Transit PT Bangungraha Sejahtera Mulia Harmful Wastes Capital Expenditure Clean Development Mechanism Certified Emission Reductions Discounted Cash Flow Directorate General of Land Transportation and Island Waterways Directorate General of Railways Directorate General of Sea Transportation Designated National Authority-Clean Development Mechanism Special Capital Region of Jakarta (Daerah Khusus Ibukota Jakarta) Impact Environmental Assessment/Environmental and Social Impact Assessment Electronic Road Pricing Ab-1 (Japanese) アジア開発銀行 環境影響評価 環境影響分析(EIA の一 部) 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) インドネシア環境管理庁 (2000 年に廃止、BPLHD に移管) インドネシア国家開発庁 インドネシア投資調整庁 インドネシア国家投資庁 インドネシア地方政府の環境 管理局/環境部 インドネシア国土庁 インドネシア技術応用評価庁 インドネシア・ランプン州、バンテ ン州の依頼で、Pre-F/S を 実施している会社 有害廃棄物 投資金額 クリーン開発メカニズム 排出権、排出枠 割引キャッシュフロー 運輸省陸運総局 運輸省鉄道局 運輸省海運総局 CDM 指定国家機関 ジャカルタ首都特別州 環境影響評価/環境・社会 影響評価 (Abbreviation) (English and/or Indonesian) (Japanese) G GHG Greenhouse Gas 温室効果ガス I GIS: IEDC Green Investment Scheme Indonesian Economic Development Corridor Integrated coal Gasification Combined Cycle Independent Power Producer Internal Rate of Return Jakarta-Bogor-(Depok-)Tangerang-Bekasi Java-Madura-Bali JGC Coal Fuel Japan External Trade Organization Japan International Cooperation Agency Japan Oil, Gas and Metals National Corporation JABODETABEK Urban Transportation Policy Integration Keranga Acuan (Implementation Plan) Kereta Api Commuter Jabodetabek Krakatau Steel Industrial Estate Cilegon グリーン投資スキーム インドネシア経済回廊 IGCC J IPP IRR JABO(DE)TABEK JAMALI JCF JETRO JICA JOGMEC JUTPI K KA KCJ KIEC KN-MPB L KOMAS MPB LARAP M LCV MCIE METI MENLH MOT MP3EI Komisi National Mekanisme Pembangunan Bersih (Indonesian National CDM Authority (NNA) National Commission for CDM Land Acquisition and Resettlement Action Plan Low Calorie Value Modern Cikande Industrial Estate Ministry of Economy, Trade and Industry, Japan Menteri Negara Lingkungan Hidup (Ministry of Environment (MOE)) Ministry of Transportation Master Plan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia MPA Metropolitan Priority Area MRT Mass Rapid Transit Ab-2 石炭ガス化複合発電 独立系発電事業 内部収益率 ジャカルタ首都圏 ジェトロ(日本) 国際協力機構 独立行政法人石油天然 ガス・金属鉱物資源機構 ジャボデタベック都市交通 政策統合プロジェクト 実施計画 ジャボデタベック鉄道会社 クラカタウ社が Cilegon で手掛ける工業団地 CDM 指定国家機関 用地取得・住民移転計画 Modern グ ル ー プ が Cikande で手掛ける工業 団地 経済産業省(日本) インドネシア環境省 運輸省 2011 年 5 月に発表された インドネシア共和国に於ける 経済加速化・拡充マスタープ ラン(2010~2025 年) Metropolitan Priority Area for Investment and Industry (MPA) in JABODETABEK Area(首 都圏投資促進特別地域) 構想 (Abbreviation) N O P R (English and/or Indonesian) (Japanese) NC-CDM National Commission for CDM (KOMAS MPB (DNA-CDM in Indonesia)) CDM 国家委員会(インドネ シアの CDM 指定国家機 関) NMT OD PAM PAP PAX PERTAMINA PGN PHPDT PLN PPP PT (DE) P U PWS Non-motorized Transport Origin-Destination Perusahaan Air Minum Project Affected Person Passengers RKL Environmental Management Plan (Pencana Pengelolaan Lingkunngan Hidup) Environmental Monitoring Plan (Pencana Pemantauan Lingkunngan Hidup) Reverse Osmosis Right of Way Strategic Environmental Assessment Standard National Indonesia RPL S T U RO ROW SEA SNI SPPL 水道会社 プロジェクト被影響住民 インドネシア国営石油会社 インドネシア国営ガス会社 Peak Hour Peak Direction Traffic Public Private Participation Perseroan Terbatas Department of Public Works Parallel Wire Strand SITRAMP Study on Integrated Transportation Master Plan for JABODETABEK SSB Sunda Strait Bridge TOD ERP PT KA/PT KAI Transit Oriented Development Electronic Road Pricing PT Kereta Api Indonesia UBC UKL Upgraded Brown Coal Environmental Management Effort UNFCC United Nations Framework Convention on Climate Change Ab-3 インドネシア国営電力会社 官民連携 株式会社 インドネシア公共事業局 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) 環境マネージメント計画 環境モニタリング計画 逆浸透 戦略的環境アセスメント RKL/RPL 及び UKL/UPL よりさらに簡略された 文書 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 公共交通指向型開発 インドネシア鉄道会社(政府 の 100%持ち株会社(旧 インドネシア国鉄)) 改質褐炭 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 ジメント計画に関する文書 (Document) 国連気候変動枠組み条 約 (Abbreviation) UPL (English and/or Indonesian) Environmental Monitoring Effort Ab-4 (Japanese) 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 リング計画に関する文書 (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 3.1 Justification, Objectives and Technical Feasibility of the Project 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 ...................................................................................... Chapter 7 Implementing Organization in Indonesia and Its Capacity for Implementation 6- 1 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 Technical Advantages of Japanese Companies ..................................................... 8- 1 Chapter 8 Appendix Appendix A4 : Evaluation of Environmental and Social Impacts Appendix A5 : Results of Financial analysis Executive Summary Reproduction Prohibited (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-1 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) Referre d in SSB BSM carried Joint development to join Lampung -BAPPENAS 3.2 out preliminary and Banten. -Economic study. Coordination Minister Office -BAPPEDA in Banten and Lampung -Public Project Ministry Current Since the current facilities are over 3.3 (2) Port capacity is capacity, it is vital to improve the Revamping (*) mostly full current port before the bridge is with freight finished. trucks. There is a plan for a 5th berth, but the site is an issue. Lampung None When building the bridge, jetties -BAPPEDA in 3.3.2 New Port (*) will be necessary for aquatic Lampung (2) transportation, and creation of a -Local new port is necessary along with Traffic/Traffic turning the fabrication area into an Planning Bureau industrial area. -DGST EX-2 SSB (*) Bridge Port Port Project Current PJ Plan Goal & Uses Road/ Rail 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. Available There are projects for creating Rail (Provincial more lines and passenger lines. expansion Maintenance is necessary for use project exists) as a long-range freight system. Some exist, but As part of a provincial project, Industrial factories are maintenance of industrial areas Township scattered, and exists. This project will develop local industrial areas and the infrastructure surrounding area as industrial such as power, townships water and roads is weak * Provincial project exists When building the bridge, areas for Industrial City, None fabrication and storage will be (Fabrication necessary, and a main base will be area) (*) made on the Lampung side. Progressive development as an industrial area will also be carried out. None For operating and maintaining the O&M Center bridge, continual monitoring and maintaining the state of the bridge is necessary, and creating an O&M center near the bridge is vital. Airport with The provincial project involves Airport domestic turning it into an international (Lampung) connections airport. available * Provincial project exists None In addition to adding international Airport city 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. Available In addition to existing power Electricity (Provincial generation, there is a project for expansion geothermal energy. Considering project exists) 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. Road Regional development Energy EX-3 Target entities (local) Referre d in -BAPPEDA in Lampung -Road Bureau of Public Project Ministry -DGLT -BAPPEDA in Lampung -DGR 3.4 -BAPPEDA in Lampung - -BAPPEDA in Lampung 3.5.4 -BAPPEDA in Lampung 3.5.4.4 -BAPPEDA in Lampung - -BAPPEDA in Lampung 3.5.5 -BAPPEDA in Lampung -PLN 3.6 3.4 Project Logistics Base Other Water for SSB (Desalination) Water Supply Banten Road Current PJ Plan Goal & Uses Target entities (local) None (Provincial project exists) Referre d in Road/ Rail Regional development There is a provincial project to use -BAPPEDA in Terbanggi Basar as a logistics hub. Lampung When positioning it, there is a need to consider the surrounding infrastructure (road, rail, airports) and production centers. None Since water will be necessary for -BAPPEDA in construction of the SSB, facilities Lampung will be made by RO and will be used to provide industrial areas in the future. Available With water supply being vital for -BAPPEDA in (River industrial areas in Lampung, Lampung available for having a water source for each area industrial uses) is important. - Available (Provincial expansion project exists) Maintenance is necessary for all -BAPPEDA in roads, not just the toll roads, and it Banten is important to create a repair plan -Road Bureau of considering life cycle cost. Public Project Ministry -DGLT There are projects for creating -BAPPEDA in more lines and passenger lines. Banten Maintenance is necessary for use as a long-range freight system. -DGR 3.4 There are industrial areas in -BAPPEDA in Krakatoa and near Cilegon. Banten However, they haven’t been integrated as complexes (utilities, -Krakatoa 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. As part of Jakarta growing as a -BAPPEDA in metropolitan city, a new city plan Banten that is greener and has reduced energy use is vital. - There is a provincial project, but as -BAPPEDA in mentioned above it should be Banten developed as an environmentally city that conserves energy. - Other Rail Available (Provincial expansion project exists) Industrial Complex Available SMART City / Eco. City None Water front city, Sports city, Maja None * Provincial project exists Water Available With water supply being vital for (River industrial areas, having a water available for source for each area is important. industrial uses) EX-4 -BAPPEDA in Banten - - 3.4 - - Project Agriculture Current PJ Plan Available (Existing agriculture) Food Industries None Tourism Tourist Village New Airport Around Anyer, there are several hotels on international lines None (Project exists) Goal & Uses Target entities (local) Development of agriculture and -BAPPEDA in food industries is vital not only as Banten the background supporting Jakarta, but also to shift from high-energy to low-energy production. Tourism development taking advantage not just of Anyer, but also proximity to Jakarta is necessary. Referre d in - - -BAPPEDA in Banten - As part of tourism development, -BAPPEDA in complex development as townships Banten with consideration for regional characteristics is necessary. - The necessity of a new airport must -BAPPEDA in be studied along with tourism Banten development. - (*)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-5 Table 2:Bridge Specifications Base case Total distance Central span Number of suspension bridges Suspension bridges (km) Marine approach (km) Water depth Notes 25km 2,500m 2 Case-1 (Optimistic Case) 25km 2,500m 2 Case-2 (Pessimistic Case) 25km 2,500m 3 10km 10km 15km 15km 70m Slide of Akashi Strait Bridge 15km 70m Reduce cost for suspension bridge portion 10km 70m 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 Construction cost Maintenance cost Notes Case-1 Case-2 (Optimistic case) (Pessimistic case) 2 trillion yen 1.5 trillion yen 2.5 trillion yen 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) Slide of Akashi Strait Reduce cost for Addition of one Bridge suspension bridge suspension bridge in portion area where seabed is weak 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) (ii) New port development project(in Lampung) 35 billion yen 13.4 billion yen (iii) Factory complex development with bridge construction(in Lampung) 8 billion yen (iv) Airport rennovation project(in Lampung) EX-6 12 billion yen 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) Sunda Strait bridge Effect 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-7 Table 5 Results for financial analysis of bridge Analysis Toll fee Case-0 Case-1 Case-2 (Base case) (Optimistic case) (Pessimistic case) 0% -2.24% (-) -1.41% (-) ― 25% -1.87% (-) -0.86% (-) ― 50% -1.20% (-) 0.10% (-) ― 75% 0.48% (-4.60%) 1.97% (2.48%) ― 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%) Supportive capital ratio 1,000 yen 3,000 yen * 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-8 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. EX-9 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-10 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 EX-11 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-12 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-13 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-14 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-15 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-16 Figure 2: Overview map of projects Source: Study Team EX-17 EX-18 Chapter 1 Overview of the Host Country and Sectors Reproduction Prohibited 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$3.03 billion. The improved balance of payments in 2010 led to the appreciation of the rupiah with low volatility and became more steady compared to the rupiah’s position by the end of 2009. Table 1-1 Estimated Economic Indicators of Indonesia (2006–2011) Economic Indicator 2006 2007 2008 Gross Domestic Product - Growth (%) 5.5 6.3 6.0 - Nominal (billion Rp.) 3,339,217 3,950,893 4,952,357 Inflation (%) 6.6 6.6 11.1 Exchange Rate (Rp/US$)*1 9.164 9,140 9,691 Oil Price*1 (US$) 64.3 72.3 97.0 Source: Budget Statistics 2005 - 2011. Ministry of Finance. 2011 Note: *1 Annual average value. Actual value: 2006-2009, Estimated value: 2010-2011 2009 2010 2011 4.5 5,613,442 2.8 10,408 61.6 5.8 6,253,790 5.3 9,200 80,0 6.3 7,006,727 6.3 9,300 80.0 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 1-1 Table 1-2 Number and Percentage of Poor People, Poverty Severity Index and Poverty Line by Province, (2010) Province Number of Poor People Riau Jambi South Sumatera Lampung Banten Urban 208.9 110.8 471.2 301.7 318.3 Rural 291.3 130.8 654.5 1178.2 439.9 Total 500.3 241.6 1125.7 1479.9 758.2 DKI Jakarta Indonesia 312.2 11097.8 19925.6 312.2 31023.4 Percentage of Poor People Poverty Severity Index Poverty Line (Rp) (% ) (% ) Urban Rural Total Urban Rural Total Urban Rural Total 7.17 10.15 8.65 0.17 0.57 0.37 276,627 235,267 256,112 11.8 6.67 8.34 0.42 0.14 0.23 262,826 193,834 216,187 16.73 14.67 15.47 0.71 0.71 0.71 258,304 198,572 221,687 14.3 20.65 18.94 0.66 0.75 0.72 236,098 189,954 202,414 4.99 10.44 7.16 0.22 0.28 0.24 220,771 188,741 208,023 3.48 9.87 16.56 3.48 13.33 0.11 0.4 0.75 0.11 331,169 - 331,169 0.58 232,988 192,354 211,726 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 Current Revenues and Grants 1. Domestic Revenue 1.1. Tax Revenues 1.2. Non-tax Revenue 2. Grants State Expenditures Primary Balance Budget Surplus/Deficit % Deficit to GDP Financing 1. Domestic Financing 2. Foreign Financing 3. Excess/Deficiency of Financing Debt Service Ratio (%) Source: State Budget (2010-2011). Note: (-) means capital inflow 992,398.8 990,502.3 743,325.9 247,176.4 1,896.5 1,126,146.5 -28,097.4 -133,747.7 -2.1% 133,747.7 133,903.2 -155.5 0.0 22% Ministry of Finance. 2011 1,104,902.0 1,101,162.5 850,255.5 250,907.0 3,739.5 1,229,558.5 -9,447.3 -124,656.5 -1.8% 124,656.2 125,266.0 -609.5 0.0 20% 2011 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 1-2 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 1-3 Table 1-5 National Roads by Island (2008) (Unit: km) Island Density National Road Length 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 1-4 Table 1-8 Major Commodities Carried by Train (2005–2009) (unit: million ton) Commodity 2005 2006 2007 2008 Oil (Fuel) 3,406 2,892 2,966 2,624 Fertilizer 243 156 69 35 Cement 3,044 3,488 3,143 2,974 Coal 8,552 8,942 8,542 10,926 Plantation Products 472 532 644 645 Containers 445 476 271 266 Sand 80 44 29 29 Others 1,086 953 1,087 1,765 Total 17,328 17,483 16,751 19,264 Source: Annual Statistics Book 2009. Ministry of Transportation. 2010 2009 2,470 4 2,750 11,030 1,038 111 28 1,032 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) Unit Aircraft - International - Domestic Passenger - International - Domestic Carog - International - Domestic trip person-trip ton 2003 774,820 82,325 692,495 51,213,023 8,687,809 42,525,214 600,854 230,349 370,505 2004 999,711 108,714 890,997 70,698,796 10,952,841 59,745,955 718,089 232,541 485,548 2005 1,006,222 112,525 893,697 67,644,009 11,858,358 55,785,651 725,961 230,032 495,929 2006 1,058,747 112,063 946,684 81,057,687 11,697,977 69,359,710 770,387 249,243 521,144 2007 1,005,682 97,377 908,305 88,924,776 13,370,874 75,553,902 894,943 322,868 572,075 2008 871,777 112,041 759,736 92,047,571 14,852,474 77,195,097 951,682 319,995 631,687 2009 1,146,383 123,946 1,022,437 105,378,884 16,313,295 89,065,589 891,026 290,947 600,079 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 1-5 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) 1,000,000 800,000 600,000 Domestic 400,000 200,000 International 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 Domestic International Total 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. 1-6 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 Source: Annual Statistics Book 2009. Ministry of Transportation. 2010 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) 140 38% 62% 120 Number of Vessels 100 80 60 40 20 0 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 Age GenCargo Container Bulk 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 1-7 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 1-8 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 5,242,350.48 5,408,861.73 5,641,900.50 69,292.77 79,151.12 90,195.51 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 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 65,046,775.77 68,802,910.30 72,031,120.61 Agriculture Mining & Quarrying Manufacturing Industry Trade, Hotel, Restaurants TOTAL GRDP Source: Banten Dalam Angka 2010 1-9 Table 1-12 Banten Province GRDP at Current Market Prices by Regency/Municipality (million rupiahs), 2007-2009 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 25,305,220.70 28,270,740.50 30,707,143.77 9,846,646.45 10,729,727.43 11,497,791.59 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 10,127,849.79 114,231,150.88 128,677,261.42 141,197,144.54 Tangerang Serang City/Municipality Total (8) 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 1-10 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 1-11 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 Agriculture 2007 2008 2009 227,329 287,738 343,818 Mining & Quarring 21,901 23,066 17,800 Manufacturing Industry 83,139 97,265 124,230 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 90,253 609,219 744,905 883,224 Electricity, gas ,water supply TOTAL GRDP Source: Lampung Dalam Angka 2010 1-12 Table 1-15 Lampung Province GRDP at Current Market Prices by Regency/Municipality (million rupiahs), 2007-2009 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 Metro 10,525,658 13,437,169 17,067,998 756,550 869,206 1,017,101 Source: Lampung Dalam Angka 2010 1-13 1-14 Chapter 2 Study Methodologies Reproduction Prohibited 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. 2-1 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 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 2-2 Oct Nov Dec 2012 Jan Feb (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 ・Researched railroad plans in the Sumatra 08/22 PT. INKA PT. INKA, 08/23 Economic Coordination Economic Coordination JGC Minister Office 08/23 Melac and Bakauheni ・Researched the organization, etc. of Economic Minister Office Coordination Minister Office Nippon Koei ・Grasped the situation of presidential orders ・Surveyed the situation of ferries at Melac and JGC Bakauheni ports 08/24 Space Planning Bureau of Public Project Ministry Space Planning Bureau of ・ Researched the projects of Public Project Public Project Ministry Ministry regarding Sunda Strait Bridge Nippon Koei ・ Collected the space plans (provincial ordinances) in Banten 08/24 BAPPEDA BANTEN ・Interviewed about the situation of Sunda Strait BAPPEDA, Nippon Koei Bridge ・Collected the space plans in Banten 08/24 Kirin Mion Foods Kirin Mion Foods JGC 08/24 BAPPEDA LAMPUNG 08/25 Public Project Ministry (Specialist Ikeda) ・Interviewed about the establishment of Japanese companies in each region BAPPEDA, ・Interviewed about the situation of presidential JGC orders and development plans around Lampung Public Project Ministry, ・Interviewed Public Project Ministry about the Nippon Koei, JGC situation of Sunda Strait Bridge 08/25 JICA JICA, ・Interviewed about local information 08/25 Nippon Steel Nippon Steel, ・Interviewed about local information JGC ・Interviewed about Krakatau MCI, ・Interviewed about local information JGC 08/25 MCI JGC 08/26 General Road Bureau of Public Project Ministry 08/26 BAPPENAS 08/26 Oriental Consultants Public Project Ministry, ・Researched the situation of Indonesia’s Nippon Koei preparation for Sunda Strait Bridge BAPPENAS, ・Researched the situation of Indonesia’s Nippon Koei preparation for Sunda Strait Bridge Oriental Consultants, ・Interviewed about local information JGC 08/26 Japanese Embassy Japanese Embassy, ・Interviewed about local information JGC 08/26 Nippon Koei ・Interviewed about local information Nippon Koei, JGC 2) Second field survey (2011/9/21-2011/09/30) The results of the field survey are shown below. 2-3 Table 2-2: Second field survey Date Destination 09/21 MCI Participants Survey results ・Interviewed about local information. MCI, Oriental Consultants, JGC 09/22 Krakatau 09/22 BAPPEDA BANTEN Krakatau, Nippon Steel, ・Interviewed about industrial complexes in Oriental Consultants, JGC Krakatau BAPPEDA, ・Interviewed about the situation of presidential Oriental Consultants, JGC orders and regional development plans around Banten. 09/23 Economic Coordination Minister Office (Mr. Tulus) Economic Coordination ・Researched the situation of presidential orders Minister Office, Oriental Consultants, JGC ・Interviewed about local information. 09/23 JETRO JETRO, 09/24 METRO, WAYKAMBAS, Oriental Consultants, JGC Oriental Consultants, JGC KALIANDA ・Surveyed the development situations of METRO, WAYKAMBAS,and KALIANDA, and infrastructure 09/25 Panjang Port and the Oriental Consultants, JGC southern area of Bandar ・Researched the situations of Panjang Port and the southern area of Bandar Lampung Lampung 09/26 BAPPEDA LAMPUNG (Mr. BAPPEDA LAMPUNG, Fahrizal et al.) 09/26 Toyota Bio Indonesia ・Interviewed about the situation of presidential VPI, Oriental Consultants, orders and regional development plans around JGC Lampung Toyota Bio Indonesia, ・Researched the situation of Japanese companies VPI, Oriental Consultants, in the region JGC 09/26 Regional Transport and Traffic Planning Bureau DINAS Perhubungan, ・Surveyed the port development plans in Oriental Consultants Lampung ・Surveyed the OD investigation (DINAS Perhubungan) 09/26 PELINDO II (Panjang Port) PELINDO II (Panjang Port), 09/27 PT. SANKYU ・Researched the current situation and Oriental Consultants development plans of Panjang Port PT. SANKYU, ・Researched the situation of Japanese companies Oriental Consultants, JGC 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) ・Researched the situation of presidential orders BAPPENAS, VPI, Oriental Consultants, JGC 09/27 General Maritime Bureau (DGST) 09/28 Cilegon, Bojonegara, and DGST, ・Researched the port development related to Oriental Consultants Sunda Strait Bridge in Lampung and Banten Oriental Consultants, JGC ・Researched the situations of industrial Anyer complexes in Cilegon, and the development of Bojonegara and Anyer 09/28 General Railway Bureau (DGR) 09/29 BAPPEDA BANTEN ・Researched the development of Serpong Line DGR, Oriental Consultants BAPPEDA BANTEN, ・Researched the development related to Sunda Oriental Consultants Strait Bridge in Banten 2-4 Date Destination 09/29 Land Transport Association (Organda) Participants Survey results Organda, ・Surveyed the current situation of Oriental Consultants JABODETABEK and the cargo transportation in South Sumatra 09/30 General Land Transport (DGLT) DGLT, ・Researched the development of Sunda Strait Oriental Consultants Bridge and the ferry between Merak and Bakauheni. 3) Third field survey (2011/11/25-2011/12/02) The results of the field survey are shown below. Table 2-3: Third field survey Date Destination 11/25 Public Project Ministry (Ikeda Specialist) Participants Survey results Public Project Ministry, ・Researched the situation of development of Nippon Steel, Oriental Sunda Strait Bridge Consultants, JGC 11/26 Coast reconnaissance around Nippon Steel, Oriental Anyer Beach 11/27 Marine survey with boats 11/30 Road Research Institute ・Coast survey around Anyer Consultants, JGC Nippon Steel, Oriental ・Surveyed the site of Sunda Strait Bridge from Consultants, JGC the sea Road Research Institute, ・Researched Sunda Strait Bridge Oriental Consultants ・Researched the assessment situation of Sunda 12/01 FUGRO (marine geological FUGRO, Oriental Consultants Strait Bridge 12/01 JICA survey company) JICA, ・Surveyed and reported local information 12/02 Public Project Ministry Oriental Consultants Oriental Consultants (Ikeda Specialist) ・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 12/20 Public Project Ministry (vice Public Project Ministry, minister) Ministry of Economy, Trade Survey results ・The Japanese government conducted presentations to Public Project Ministry and Industry, JGC 12/21 MCI ・Interviewed about local information. MCI, JGC 2-5 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 01/17 Public Project Ministry (vice Public Project Ministry, minister) Ministry of Economy, Trade Survey results ・The Japanese government conducted presentations to Public Project Ministry and Industry, JGC 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. 2-6 Chapter 3 Justification, Objectives and Technical Feasibility of the Project Reproduction Prohibited 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 3.1-1 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 Jawa Origin / Destination Banten DKI Jakarta Jawa Barat Others in Jawa Sub-total in Jawa Lampung Sumatra Sumatera Selatan Others in Sumatra Sub-total in Sumatra Others Total Jawa Banten 115,672 78,819 171,034 90,847 456,372 17,644 2,154 28,566 48,364 2,292 507,028 DKI Jakarta Jawa Barat 83,323 185,943 263,349 60,590 593,205 12,275 1,757 20,297 34,329 2,792 630,326 165,649 280,180 1,446,281 414,624 2,306,734 39,139 4,543 47,884 91,566 10,056 2,408,356 Others in Jawa 127,396 62,352 497,641 3,804,671 4,492,060 32,372 2,487 50,495 85,354 37,508 4,614,922 Sub-total in Jawa Lampung 492,040 607,294 2,378,305 4,370,732 7,848,371 101,430 10,941 147,242 259,613 52,648 8,160,632 2,415 1,426 39,697 569 44,107 18,972 14,247 12,254 45,473 2,539 92,119 Sumatra Sumatera Selatan 3,151 2,705 8,210 6,259 20,325 22,469 34,363 20,402 77,234 4,977 102,536 Sub-total Others in in Sumatra Sumatra 7,513 13,079 5,576 9,707 25,540 73,447 14,248 21,076 52,877 117,309 40,155 81,596 24,208 72,818 411,205 443,861 475,568 598,275 25,348 32,864 553,793 748,448 Others 3,546 1,896 13,077 52,186 70,705 3,934 928 20,953 25,815 354,329 450,849 ( Source: METI Study Team, based on the National Transportation OD Survey in 2006 ) 3.1-2 Total 508,665 618,897 2,464,829 4,443,994 8,036,385 186,960 84,687 612,056 883,703 439,841 9,359,929 Fig.3.1-1: Cargo Flow between Sumatra Island and Java Island in 2006 ( Source: METI Study Team, based on the National Transportation OD Survey 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 Jawa Origin / Destination Banten DKI Jakarta Jawa Barat Others in Jawa Sub-total in Jawa Lampung Sumatra Sumatera Selatan Others in Sumatra Sub-total in Sumatra Others Total Jawa Banten 22,187 1,014 30,453 21,351 75,005 3,128 2,925 2,695 8,748 1,497 85,250 DKI Jakarta Jawa Barat 14,604 178,182 48,919 11,708 253,413 2,114 2,368 2,867 7,349 1,060 261,822 30,453 141,415 262,834 89,655 524,357 7,195 9,339 9,243 25,777 6,163 556,297 Others in Jawa 23,082 32,272 89,364 718,684 863,402 5,832 9,813 11,945 27,590 22,567 913,559 Sub-total in Jawa Lampung 90,326 352,883 431,570 841,398 1,716,177 18,269 24,445 26,750 69,464 31,287 1,816,928 3,128 1,114 7,195 5,835 17,272 3,482 4,166 2,336 9,984 1,979 29,235 Sumatra Sumatera Selatan 2,925 350 9,334 10,035 22,644 4,166 10,232 4,335 18,733 2,277 43,654 Sub-total Others in in Sumatra Sumatra 11,662 17,715 3,158 4,622 30,604 47,133 47,093 62,963 92,517 132,433 7,329 14,977 10,562 24,960 27,028 33,699 44,919 73,636 13,276 17,532 150,712 223,601 Total Others 3,245 3,247 16,049 64,775 87,316 1,878 4,060 5,707 11,645 109,194 208,155 111,286 360,752 494,752 969,136 1,935,926 35,124 53,465 66,156 154,745 158,013 2,248,684 ( Source: METI Study Team, based on the National Transportation OD Survey in 2006 ) 3.1-3 Fig.3.1-2: Passenger flow between Sumatra Island and Java Island in 2006 ( Source: METI Study Team, based on the National Transportation OD Survey 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. 3.1-4 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) Year 2009 2010 Trip (time) 52,614 54,339 Number of Ships (units) 33 33 Passengers (person) 16,298,551 16,384,345 2-Wheel Vehicle (unit) 495,638 519,417 4-Wheel Vehicle (unit) 2,716,948 2,912,205 Data Source: Directorate General Land Transportation by Interview Survey 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, 3.1-5 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 Origin / Destinaton Lampung, Sumatra Selatan Banten, DKI Jakarta (Banten, DKI Jakarta, Jawa Barat) Lampung, Sumatra Selatan 22,046 10,535 (27,069) Banten, DKI Jakarta (Banten, DKI Jakarata, Jawa Barat) 7,517 (24,046) 215,987 (730,061) Table 3.1-5: Cargo Flow between Jakarta/West Java Area and South Sumatra Area in 2006 Unit: Thousand Tons Origin / Destinaton Lampung, Sumatra Selatan Banten, DKI Jakarta (Banten, DKI Jakarta, Jawa Barat) Lampung, Sumatra Selatan 90,051 33,830 (77,512) Banten, DKI Jakarta (Banten, DKI Jakarata, Jawa Barat) 9,697 (57,604) 463,757 (2,790,250) ( Source: METI Study Team, based on the National Transportation OD Survey in 2006 ) 3.1-6 (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) Location Lampung Province * Banten Province * Panjang Port** (Lampung Data Source: Year 2006 2007 2006 2007 2006 2007 Unload 2,535,792 2,668,089 2,588,912 3,015,915 2,446,749 2,409,721 Interisland Load Total 5,022,810 7,558,602 7,826,116 10,494,205 835,994 3,424,906 1,386,402 4,402,317 5,158,747 7,605,496 5,071,573 7,481,294 International Unload Load 811,560 4,473,740 2,927,188 4,639,659 755,008 24,960 900,145 72,998 941,162 4,581,640 1,108,418 4,548,574 Total 5,285,300 7,566,847 779,968 973,143 5,522,802 5,656,992 Total 12,843,902 18,061,052 4,204,874 5,375,460 13,128,298 13,138,286 * Statistical Year Book of Indonesia 2008 & 2009, BPS ** Lampung in Figures 2009 & 2010, BPS and BAPPEDA Lampung 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. 3.1-7 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 ) 3.1-8 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 Project Current PJ Plan Goal & Uses Target entities Referred in (local) SSB SSB (*) BSM carried out Joint development to join Lampung and preliminary study. Banten. ・BAPPENAS ・Economic 3.2 Bridge Coordination Minister Office ・BAPPEDA in Banten and Lampung ・Public Project Ministry Port Port Revamping (*) Lampung New Port (*) Port Road Road/ Rail Rail Current capacity Since the current facilities are over is mostly full with capacity, it is vital to improve the current port before the bridge is finished. freight trucks. There is a plan for a 5th berth, but the site is an issue. 3.3 (2) ・BAPPEDA in Lampung ・Local Traffic/Traffic Planning Bureau ・DGST ・BAPPEDA in There is a project for a toll road Available (Bakauheni – Lampung). (Provincial Lampung expansion project Maintenance of all roads, not just the toll ・Road Bureau of roads, is necessary, and it is important to Public Project exists) create a repair plan considering life Ministry cycle cost. ・DGLT ・BAPPEDA in There are projects for creating more Available lines and passenger lines. (Provincial Lampung expansion project Maintenance is necessary for use as a ・DGR long-range freight system. exists) 3.3.2 (2) 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. 3.1-9 3.4 3.4 Project Current PJ Plan Goal & Uses Target entities Referred in (local) Industrial Township Regional development Industrial City, (Fabrication area) (*) Some exist, but factories are scattered, and local infrastructure such as power, water and roads is weak * Provincial project exists None O&M Center None Airport (Lampung) Airport with domestic connections available * Provincial project exists None Airport city Available (Provincial expansion project exists) Logistics Base None (Provincial project exists) Water for SSB (Desalination) None Water Supply Available (River available for industrial uses) Energy Electricity Other 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 - 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. 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. The provincial project involves turning it into an international airport. ・BAPPEDA in Lampung 3.5.4 ・BAPPEDA in Lampung 3.5.4.4 ・BAPPEDA in Lampung - 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 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. 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. 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. With water supply being vital for industrial areas in Lampung, having a water source for each area is important. ・BAPPEDA in Lampung ・PLN 3.6 ・BAPPEDA in Lampung - ・BAPPEDA in Lampung - ・BAPPEDA in Lampung - Banten 3.1-10 Project Current PJ Plan Goal & Uses Target entities Referred in (local) Road/ Rail Regional development ・BAPPEDA in Banten ・Road Bureau of Public Project Ministry ・DGLT ・BAPPEDA in Banten ・DGR 3.4 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. 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 - ・BAPPEDA in Banten - Road Available (Provincial expansion project exists) Maintenance is necessary for all roads, not just the toll roads, and it is important to create a repair plan considering life cycle cost. 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. Industrial Complex Available 3.4 ・Krakatoa Other SMART City / Eco. City None 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 - 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 - 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 Tourism development taking advantage Around Anyer, there are several not just of Anyer, but also proximity to Jakarta is necessary. hotels on international lines Tourist Village New Airport None (Project exists) ・BAPPEDA in Banten - As part of tourism development, complex development as townships with consideration for regional characteristics is necessary. ・BAPPEDA in Banten - The necessity of a new airport must be studied along with tourism development. ・BAPPEDA in Banten - 3.1-11 (*)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. 3.1-12 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: y Long span y Deep sea foundation y Soft soil geology y The project location is near to the plate boundary earthquake prone area y 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” ) 3.2-1 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 3.2-2 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 3.2-3 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. 3.2-4 Table3.2-1: Suspension bridge ranking Rank Bridge Maxium span length (m) Country Completed year 1 Akashi-Kaikyo 1991 Japan 1998 2 Zhoushan Xihoumen 1650 China 2009 3 Great Belt East 1624 South Korea 1998 4 Gwangyang 1545 5 Runyang Yangtze River Highway 1490 6 Nanjing No.4 Yangtze River 1418 7 Humber 1410 United Kingdom 1981 8 Jiangyin Yangtze River 1385 China 1999 9 Tsing Ma 1377 China 1997 South Korea 2012 (during construction) (will be completed) China 2005 China 2013 (during construction) (will be completed) Norway 2013 (during construction) (will be completed) 10 Hardanger 1310 11 Verrazano-Narrows 1298 America 1964 12 Golden Gate 1280 America 1937 13 Yangluo Yangtze River 1280 China 2007 14 Hoga Kusten 1210 Sweden 1997 15 Aizhai 1176 16 Mackinac 1158 17 Ulsan Harbor Bridge 1150 18 Huangpu Zhujiang 1108 China 2008 19 Minami Bisan-seto 1100 Japan 1988 20 Fatih Sultan Mehmet(Second Bosporus) 1090 Turkey 1988 China 2012 (during construction) (will be completed) America 1957 South Korea 2015 (during construction) (will be completed) 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. 3.2-5 (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. the opening of bridge there should be a good connection between Java and Sumatra. of road is much higher than that of ferry. After The capacity 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 3.2-6 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. 3.2-7 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. 3.2-8 Fig.3.2-2: Comparison of Plans Suspension Box Girder I Girder Rute Terowongan (Sindur) Cable Stayed Rute-1 (Balitbang) Rute-2 (Wiratman) Table3.2-2: Comparison of Tunnel and Bridge Bridge Tunnel (-) (+) • • (-) Low cost (1/5 • B/C Ratio 1,56-2,95 • B/C Rasio 3,22-3,40 • High cost. Bridge) • Longer distance (33 • Shorter distance • Disturb “Natural km) (27,9 – 29,2 km) Conservation “at Over the sea, good P.Sanghiang / view. P.Tempurung 58 km from Krakatau • (+) • surface, no view Loco technology in the future may • expand the capacity (shuttle • Under the sea • • Sensitive of May build Rest Area sabotage at P Sangiang/ Vehicle waits the Tempurung may be Train, longer travel • Good safety improved) time (30-45min) • Vehicle can driving • Limited capacity for traffic demand. • • Electricity Train only for bridging/ • passing 3.2-9 • Meramang fault at Banten (Route-2) • 50 – 56 Km from Krakatau • Pylon height into directly 460-520 m fsl, may Train can running be crushed by into directly plane. Shows land/sea mark 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 Troffic Volume Prediction 200,000 Traffic Volume Traffic Volume (Vehicle/Day) 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 0 2000 2020 2040 2060 2080 2100 2120 Year ( 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 3.2-10 • 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 3.2-11 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. 3.2-12 This test should be conducted for stainless steel, aluminium, galvanized material, sealing material, covering seal, rubber raping, PTFE material, in the first stage of survey. required large test area. These tests should be 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. 3.2-13 3.2-14 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. 3.3-1 Table 3.3-1: Forecasted Cargo Volume of Panjang Port by Master Plan Study Item Actual Prediction in 2006 M/P1) 2010 2015 2030 20041) 20092) 2,429 2,577 3,093 3,687 6,249 21,613,875 15,295,742 26,360,291 31,407,387 53,238,246 678,622 1,461,333 855,705 1,038,097 1,853,440 4,048,853 5,282,313 5,173,542 6,346,018 11,712,275 4,727,475 6,743,646 6,029,247 7,384,115 13,565,715 2,214,995 2,783,783 2,737,031 3,264,893 5,541,616 5,626,331 5,158,670 5,646,331 7,824,194 12,207,603 7,841,326 7,942,453 8,383,362 11,089,087 17,749,219 12,568,801 14,686,099 15,512,221 * 18,473,202 31,314,934 Unit Call GRT tons Import International tons Export tons Total Unloading tons Domestic Loading tons tons Total Total tons Ship Call Cargo Volume Data Source: 1) Rencana Induk Pelabuhan Panjang Propinsi Lampung (Attachement of KM 32, 2006), DGST 2) 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. Item General Cargo Bag Cargo Luquid Bulk Dry Bulk Container Total Cargo Volume Actual Prediction in 2006 M/P1) 2010 2015 2030 20041) 20092) 455,172 N/A 599,935 755,171 1,506,148 1,908,141 N/A 2,255,950 2,593,753 3,942,087 1,677,911 N/A 2,060,191 2,444,497 4,083,531 7,519,733 N/A 9,183,739 10,839,065 17,708,732 1,027,844 7,942,453 1,412,406 1,840,715 4,074,436 12,588,801 14,686,099 15,512,221 18,473,201 31,314,934 76,826 N/A 110,578 151,036 272,411 85,130 N/A 127,164 173,691 313,273 Unit tons tons tons tons tons tons Box TEU's Container Cargo Data Source: 1) Rencana Induk Pelabuhan Panjang Propinsi Lampung (Attachement of KM 32, 2006), DGST 2) Lampung in Figures 2010, BPS and BAPPEDA Lampung 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 NAM A GAMBAR RENCANA TATA GUNA LAHAN DARATAN P EL ABUHAN PANJANG TAHUN 2030 Term inal Konvensional Daerah P eti Kemas Daerah C urah Cair 9.393.500 9.394.000 9.394.500 9.395.000 9.395.500 9.396.000 9.396.500 9.397.000 Areal P enunjang Terminal Areal P erkantoran Areal P emukiman R uang Terbuka Hijau 534.000 534.000 T EL U K LAMPUNG - 13 - 12 K OLAM P UTAR - 10 DIA ME TE R = 500 M - 12 G UG US AN KARANG TERE NDAM - 10 534.500 R EC EP TO IN F AC ILIT IES 534.500 P NG A T. IS AN GA N C AIR TA AG AB ITRA AH - 10 JE MB AM C UR NA TT Y P ER -1 TA M IN A LIND O) A .RA SPA B AN L CA A AS IR PA (PT PE ( R RT EK AM L A I NA M AS I) D II MA I nti) DER SHO P RK WO Jaya T Si nar 001 S CF MA DER 007 NG DA t an GU I EL A DP KPI um os at S er ud a ar so K TR. JAT A P T.D P T.M A SKIT S Y n l Ima Ga S el sp ar at Gas par II at M T g. T3 S oek ar no P ETA ORIENTASI - Hatta Pura Yaqin ung II T anj D ewi P ura 1 Sel at Sun da V aI Pura a II un g angk Tanj uk Sem al ak Y AYA SAN DHA RM A PHALA P T. DAY A S AKTI . Nurul T el M aIII lat Se al ak P A S AR Gg. M M T el uk S em angka CV. FAJ AR II l at Se T anj ung Pura III al ak K am pung P idada II K el . P anj ang Utara N uru B T. KAYA I Sel al aka S um ber P OS II at M A DMI RAL LINE Sel P ER TAK AR AN TINA N IAN T5 T4 P erum ahan P JKA GL P T. GUN UNG MADU S udarso 535.500 Ka li m an P T. .006 G K ANTOR BARU P ELINDO II GUD KPI AN n GD a S TAS RA IUN P ANTDIO AI Ja wa I AP NL T ELKOMSEL Pan jang GD B EA CUK AI B ahari Way B MG bo DL GU GA DI TPK (P A NG GA DER GU MA DA C PO NUM N PE AS GA K EM P ETI T el uk Lam pung D ANG DANG AN P T. GUN P LAN UNG (TE TAT MAD T ES ION U TEB U) m B i GU 5 00 M A GA in SU T OM O 9 4 00 GA HAN ESA 8 k MA .005 om A 7 3 00 lu er DER GD T A ND 6 e at IND O A T ermi nal Bus Gang B aru K erinci na k ar no Hatta 536.000 K om pl ek Y uka R PE LABUHAN B AT AS DLK 536.000 Lapangan S epak Bola Jaya Soe T14 L OKASI : T15 Hatta S oek arno - 5 2 00 T P EL LAM m uk .004 Su T14a PANJANG , BANDAR L AM PUNG S KALA 9.393.500 B 4 L AM PI RAN SURAT NO. DARI SURAT KEPUTUSAN M ENTERI PERHUBUNGAN NOM OR : TANGGAL : DISAHKAN DI : J AKARTA TANGGAL : - Hat ta GD P OS ER T6 3 1 00 DEPARTEMEN PERHUBUNGAN B NI 1946 SHO P CON T AIN 2 rso S uda ar no LAP .002 .003 RK s el P T. Yo N P UKA P OS CFS at P T.S AMIN WO RE P AIR NU 1 0 T C V. PE U 535.000 C P OS I K P3 K ES.PEL Sel T7 GD GD E MK L GU A LATDA NG B/M Og an Y os N 0 ek a t e ra PMK par I Gas 535.500 T11 GA T2 So P OS at Sum T9 AN N UHA LAB A) LAP. P ARKIR P OS III S el T10 GA R PE nal MA DA P IDA K am pung Umbul Jam bu S io MIN S DN S A RAJ DER B BM ( PE RTA S MA IKE ATU ) PET NB VII AN S EME N UK RAMB U S UAR DA NG TP MP DLK R EN AS CA B AT L SPE ET KE P P US GU (P E TA . IND NOL O LAM PUN G) T8 T13 GA DIA ME TE R = 420 M DA NG LAP T17c A B DN - 12 535.000 GU CP O T12 M AS K OLAM P UTAR (PT 0 ER M T CV. B UM I WARAS PE N GE RM KI TIM BUN - 12 DE P ANC T1 D E I K 9.394.000 9.394.500 9.395.000 9.395.500 9.396.000 9.396.500 : NOT TO SCALE 9.397.000 DIGAM BAR TANGGAL : : DIRENCANAKAN TANGGAL : : DISETUJUI TANGGAL : : KODE : SUMBER JUM LAH L EM BAR ( Source: Rencana Induk Pelabuhan Panjnag Propinsi Lampung, KM 32, 2006), DGST ) 3.3-2 Table 3.3-2: List of Planned Facilities to be developed by the Master Plan Descriptions Conventional Terminal Berth Whrehouse Road and Parking Equipment Crane Forklift Utilities (Electric/Water Supply) Container Terminal (Petikemas) Berth CFS CY Road and Parking Equipment Container Crane TT / RTG Top Loader / Side Loader Forklift Head Truch / Truck Utilities (Electric/Water Supply) Wharehouse and other buildings Liquid Bulk Terminal Jetty Tank Others Pilot Boat Tug Boat 2004 1) 2012 2) Development Plan 1) Short Term Mideum Term Long Term (2005 - 2010) (2011 - 2015) (2016 - 2030) m unit sq.m sq.m 1,318 7 12,582 24,793 1,522 7 11,680 6,000 300 (L) x 30 (W) 250 (L) x 30 (W) 750 (L) x 30 (W) 1 1 2 6,000 6,000 12,000 30,000 25,000 75,000 unit unit Set 2 4 5 3 1 2 1 1 2 1 2 4 1 m m2 m2 m2 400 7,200 75,000 400 6,000 75,000 - 2,000 - 300 (L) x 40 (W) 6,000m2 1 unit 7,500 - Unit Unit Unit Unit Unit Set Unit 2 5 3 10 15 1 2 2 4 4 1 1 5 5 10 10 1 1 Unit Existing Conditions Conditions 2,000 3 5 2 3 10 1 unit Ha unit unit 1 3 3 3 6 1 1 1 1 3 3 Data Source: 1) Rencana Induk Pelabuhan Panjang Propinsi Lampung (Attachement of KM 32, 2006), DGST 2) Port of Panjang, PT. Pelindo II, Panjunag Branch 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, 3.3-3 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) 1 Year Actual (Vehicle Unit Counted) 1998 1,021,976 1999 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% Conversion (PCU) and Forecast Yearly Growth Rate 1,430,766 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 in 12 years 1998 - 2009: 4.5 % Project Formation Study on Merak – Bakauheni Ferry Terminals Expansion Plan, March 2010, JTCA 3.3-4 Fig.3.3-2: Traffic Volume Forecast between Merak and Bakauheni (one-direction) Vehicles Traffic; Actual Record and Forecast Merak to Bakauheni 6,000,000 Vehicles Traffic 5,000,000 4,000,000 3,000,000 Actual (Vehicle Unit) 2,000,000 Conversion (PCU) and Forecast 1,000,000 0 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Year ( 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. 3.3-5 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 - Construction of South Breakwater at Merak 720,000,000,000 - Construction of North and South Breakwater at Bakauheni - Construction of Berth No. 6 at Merak and Bakauheni 2014 - Construction of South Breakwater at Merak 950,000,000,000 - 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. 3.3-6 Table 3.3-5: Role of existing Panjang Port and the New Port Port Panjang Port During Bridge Construction To handle of the increased general cargo demand such as consumer goods of the construction labors New Port To handle of the construction materials, equipment and bridge segments which are constructed/fabricated at the temporary construction yard After Completion of the Bridge 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. 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. 3.3-7 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 Year 2006 2007 2008 2009 2010 2011 Trip (time) 125,124 124,845 124,891 89,053 37,089 21,181 Passengers (person) 10,438,180 9,875,436 10,650,973 11,230,750 3,916,748 5,516,953 2-Wheel Vehicle (unit) 3,220,105 3,282,384 3,638,258 2,716,165 N/A 1,045,097 4-Wheel Vehicle (unit) 1,518,478 1,009,397 1,615,251 783,160 N/A 208,674 Data Source: Directorate General Land Transportation by Interview Survey 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 3.3-8 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. 3.3-9 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 6.0m 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: 28,000~35,000 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. 3.3-10 Table 3.3-7: Proposed Ship Allocation and Operation Plan Item Unit Number of Trip Total Number of Ship Ship in Operation Ship in Dock Sailing Time Port Time Trip per ship per day ships ships ships ships min. min. cycle 1 2 16 6 4 2 120 60 4 16 6 4 2 120 60 4 Berth No. 3 4 18 12 4 3 3 2 1 1 60 60 60 60 6 6 5 Sum. 6 18 4 3 1 60 60 6 12 3 2 1 60 60 6 92 26 18 8 Table 3.3-8: Available Traffic Volume Kind of Ships Existing Ships New ships (5,000 GT) New ships (10,000 GT) Ship PCU Trip/day /ship/trip Nos. (unit) (unit) 12 32 88.1 6 24 93.0 8 36 240.0 Total Capacity Demand in 2025 PCU/year (unit) 1,029,008 814,680 3,153,600 4,997,288 4,691,155 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, 3.3-11 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 Province Bali Bangka Belitung Banten Bengkulu DI Yogyakarta DKI Jakarta Gorontalo Jambi Jawa Barat Jawa Tengah Jawa Timur Kalimantan Barat Kalimantan Selatan Kalimantan Tengah Kalimantan Timur Kepulauan Riau Lampung Origin (%) 0.09 0.09 16.14 0.35 0.92 21.42 0.01 0.37 36.89 10.35 5.63 0.08 0.06 0.02 0.06 0.08 1.74 Destination (%) 0.07 0.30 16.38 0.29 0.56 21.65 0.01 0.53 38.56 7.53 4.28 0.07 0.06 0.07 0.02 0.09 3.98 Province Maluku Maluku Utara Nanggroe Aceh Darussalam Nusa Tenggara Barat Nusa Tenggara Timur Papua Papua Barat Riau Sulawesi Barat Sulawesi Selatan Sulawesi Tengah Sulawesi Tenggara Sulawesi Utara Sumatera Barat Sumatera Selatan Sumatera Utara Total 3.3-12 Origin (%) 0.01 0.66 0.10 0.06 0.38 0.01 0.07 0.02 0.02 0.02 0.92 2.15 1.27 100.00 Destination (%) 0.01 0.01 1.61 0.02 0.59 0.10 0.03 0.03 0.02 0.28 1.48 1.36 100.00 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) Origin (%) 0.52 0.51 1.92 5.10 0.05 2.06 57.11 31.06 0.42 0.32 0.13 0.32 0.42 0.07 0.01 Province Bali Bangka Belitung Bengkulu DI Yogyakarta Gorontalo Jambi Jawa Tengah Jawa Timur Kalimantan Barat Kalimantan Selatan Kalimantan Tengah Kalimantan Timur Kepulauan Riau Maluku Maluku Utara Destination (%) 0.53 2.17 2.12 4.02 0.04 3.83 54.16 30.77 0.49 0.46 0.51 0.16 0.65 0.05 0.04 Province Nanggroe Aceh Darussalam Nusa Tenggara Barat Nusa Tenggara Timur Papua Papua Barat Riau Sulawesi Barat Sulawesi Selatan Sulawesi Tengah Sulawesi Tenggara Sulawesi Utara Sumatera Barat Sumatera Selatan Sumatera Utara Total Origin (%) 3.66 0.55 0.35 0.03 0.01 2.10 0.05 0.38 0.11 0.11 0.11 5.10 11.89 7.01 100.00 Destination (%) 11.58 0.03 0.14 0.02 0.01 4.24 0.03 0.69 0.23 0.25 0.13 2.04 10.63 9.79 100.00 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 Destination Jawa Tengah Jawa Tengah Jawa Timur Jawa Timur Sumatera Selatan Sumatera Utara Sumatera Barat Nanggroe Aceh Darussalam Sumatera 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. 3.3-13 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 Ferry Route Frequency Merak/Bakauni - Semarang - Surabaya Merak/Bakauni - Medang - Banda Ache Merak/Bakauhi - Pontianak Merak/Bakauni - Balikpapan/Samarinda Merak/Bakauni - Makassar Merak/Bakauni - Makassar - Ambon - Merauke Merak/Bakauni - Makassar - Manokwari - Jayapura 2 trip /day 2 trip /day 2 trip /week 2 trip / week 2 trip / week 1 trip / week 1 trip / week Ship Allocation 10,000 5,000 3 3 1 1 2 1 1 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 3.3-14 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 ) 3.4-1 Fig.3.4-2: National Road Development Plan Banten Province 001 019 002 004 005 P 003 017 020 003 003 024 JALAN TOL 025 RENCANA JALAN TOL 010 006 JALAN STRATEGIS NASIONAL RENCANA 009 JALAN NASIONAL JALAN PROVINSI 018 007 PKN (PUSAT KEGIATAN NASIOANAL) 011 PKW (PUSAT KEGIATAN WILAYAH) 5 TH. PERTAMA 008 PKW (PUSAT KEGIATAN WILAYAH) 5 TH. KEDUA PKSN (PUSAT KEGIATAN STRATEGIS NASIONAL) 5 TH. PERTAMA. A PKSN (PUSAT KEGIATAN STRATEGIS NASIONAL) 5 TH. KEDUA. 021 NO RUAS 012 BATAS PROVINSI BATAS KABUPATEN IBUKOTA PROVINSI 021 KOTA IBUKOTA KABUPATEN IBUKOTA KECAMATAN DAERAH TUJUAN WISATA NASIONAL / INTERNASINAL : B WISATA ALAM /SUNGAI/DANAU/GUNUNG / T. NASIONAL WISATA BUDAYA 013 014 022 WISATA PANTAI WISATA MUSEUM / PENDIDIKAN 015 023 I 016 II III SK. MENHUB IV TH. 2002 KETERANGAN BANDAR UDARA KLAS I / PUSAT PENYEBARAN PRIMER BANDAR UDARA KLAS II / PUSAT PENYEBARAN SEKUNDER BANDAR UDARA KLAS III / PUSAT PENYEBARAN TERSIER BANDAR UDARA KLAS IV BANDAR UDARA KLAS V PELABUHAN INTERNASIONAL PELABUHAN NASIONAL PELABUHAN REGIONAL < KEMENTERIAN PEKERJAAN UMUM DIREKTORAT JENDERAL BINA MARGA DIREKTORAT BINA PROGRAM ( 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 Toll Road Plan Sumatra Railway Plan ( Source: Spatial Plan of Banten Province ) 3.4-2 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 Sumatra Railway Plan ( Source: National Railway Master Plan [2011.8] ) 3.4-3 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 Cilegon-Bojonegara Railway Plan Merak-Jakarta Double Tracking Cilegn-Panimban g Railway Plan ( Source: Materials from Banten province ) 3.4-4 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. 3.4-5 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. 3.4-6 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 80 70 60 50 40 30 20 10 Coal Cement Petroleum Fuel Mixed Cargo Pulp Pidada Keretapati Tarahan Tanjungkarang Baturaja Tigagajah Prabumulih Niru Muara Enim Tanjung Enim Baru Lahat Lubuk Linggau 0 Passenger ( 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 40 35 30 25 20 15 10 5 Serpong Prngpanjang Rangkasbitung Merak Cigading 0 Passenger: Inbound Passenger: Outbound Freight: Inbound Freight: Outbound ( Source: Statistics of Transport, Communication and Information in Banten in 2009 ) 3.4-7 (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 Station Tanjungkarang Lampung Province 2005 279,926 116,083,000 2006 285,611 120,889,440 2007 329,573 141,569,470 2008 386,893 160,531,710 2009 407,211 175,835,000 ( 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 Passenger (Between Merak and Pondokranji) 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 - Pondokranji Serpong Sudimara Cisauk Cilejit Parungpanjang Tenjo Tigaraksa Maja Citeras Jambubaru Rangkasbitung Catang Cikeusal Walantaka Serang Karangantu Cilegon Tonjongbaru Merak Krenceng Passenger ( 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 Commodity Coal Wood Clinker Steel 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 Niru - Panjang 528,550 Tigagajah - Pidada 144,925 Tigagajah - Keretapati 202,895 Cilegon - Kalimas Surabaya 1,429 (Source: METI Study Team, based on materials from Banten and Lampung province and PT, KAI.) 3.4-8 (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. (3) Examination of Technical Methods 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. 3.4-9 3.4-10 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 3.5-1 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. 3.5-2 Fig.3.5-2: Natural Resources of Indonesia (Source: Masterplan – Accelleration and Expantion of Indonesia Economic Development 2011-2015. Republic of Indonesia. 2011) (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. 3.5-3 (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 Dynamic Change Financial and Planning System ・Global Condition (Economic Crisis in 2008, BRICs, etc) ・International Commitment(G20, APEC, FTA, ASEAN, climate Change) ・Domestic Socio-Economic Development Law No.25 Year 2004 Law No.17 Year 2003 To Accelerate National Economic Transformation RPJPN 2005-2025 RPJMN 2010-2014 Masterplan of Acceleration and Expansion of Indonesia Economic Development RKP/RAPBN Action Planning/ Project RAN-GRK→REDD RTRWN Private Investment and PPP (Source: Masterplan – Accelleration and Expantion of Indonesia Economic Development 2011-2015. Republic of Indonesia. 2011) (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. 3.5-4 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 3.5-5 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 3.5-6 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-BinjaiDeli 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) laborindustry relations have not been well established, (4) legal certainty issues, and (5) remained high interest rates. 3.5-7 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. 3.5-8 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; 3.5-9 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 3.5-10 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 nonmotorized 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. 3.5-11 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): 3.5-12 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 3.5-13 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). 3.5-14 • 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. 3.5-15 Fig.3.5-5: Spatial Plan of Baten Province 3.5-16 Fig.3.5-6: Protected Area Planning Map in Banten Province 3.5-17 Fig.3.5-7: Development Area Planning Map of Banten Province Picture 4.6 Cultivated Area planning Scale Kilomete 2 0 2 Project: Transverse Mercator (UTM) 4 rs System grid: geography of Universal Transverse Mercator INFORMATION Provincial Capital District/City Capital Subdistrict Capital Provincial boundary District boundary Subdistrict boundary Shoreline Mountain River District Road National Road (Arterial) National Road (Collector) Regional Road (Collector) Toll Road Railway line Lake Cultivated Area Residential Area Allocation Regional plantation Allocation Forest Area Allocation Farming Area Allocation Industrial Area Allocation APPROVED BY: BANTEN GOVERNER Hj. RATU ATUT CHOSIYAH LOCATION DIAGRAM 3.5-18 Fig.3.5-8: Land-Use Map of Banten Province Picture 4.8 Spatial patterns planning Scale Kilomete 2 0 2 Project: Transverse Mercator (UTM) 4 rs System grid: geography of Universal Transverse Mercator INFORMATION Provincial Capital District/City Capital Subdistrict Capital Provincial boundary District boundary Subdistrict boundary Shoreline Mountain River District Road National Road (Arterial) National Road (Collector) Regional Road (Collector) Toll Road Railway line Lake Cultivated area Indust Agriculture Settlement Plantation Production Forests Protected area Natural Park Reserve National Park Protected Forest Reclamation Area Metallic Minerals Non-metallic Mi l Coals APPROVED BY: BANTEN GOVERNER Hj. RATU ATUT CHOSIYAH LOCATION DIAGRAM 3.5-19 Fig.3.5-9: Strategic Area Development Plan Map Picture 4.8 Spatial patterns planning INFORMATION Provincial Capital District/City Capital Subdistrict Capital Provincial boundary District boundary Subdistrict boundary Shoreline Mountain River Lake 3.5-20 District Road National Road (Arterial) National Road (Collector) Regional Road (Collector) Toll Road Railway line (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 I. Protection Zone and Green Open Space 1.Protection Zone 2.Local Protection Zone 3.Green Area (Park, Green Line, Sport Arena/Stadium), Cemetery 4.Agriculture Open Space Sub Total I II Ha % 3,023.70 328.19 17.23 1.87 960.59 5.47 1,415.22 5,727.70 8.07 32.64 Urban Cultivation Zone 1.Housing Zone 2.Trade and Service Zone 3.Government and Public Building Zone 4.Industry Zone 5.Port and Warehouse Zone 6.Tourism Zone (include Merak Kecil Island and Rida Island) 7.Mixed-use Zone 8.Integrated Terminal Zone 9.Final Disposal Area (Solid Waste Management) 10.Dangerous Waste Collection Area (B3) 11.Road Infrastructure Sub Total II 6,144.21 450.62 22.00 3,514.28 416.16 35.01 2.57 0.13 20.02 2.37 30.61 0.17 298.45 31.78 18.64 50.00 845.55 11,822.30 1.70 0.18 0.11 0.28 4.82 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 3.5-21 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. 3.5-22 Fig.3.5-10: Cilegon City Spatial Map (2010 – 2030) SPATIAL PATTERNS PLANNING MAP CILEGON CITY 2010-2030 Cilegon City Government REGIONAL SPATIAL PLAN INFORMATION: Railroad Road SUTET Administrative boundaries I. URBAN CULTIVATION AREA Scale: 1:90000 II. PROTECTED AREA & OPENGREEN AREA Residential area Industrial area Port/Warehouse area Trade/Service area Government and Public building Tourism area Integrated terminal area Other area (East Cilegon Secondary Center) Waste landfills Industrial landfill site Mining & Quarring area 3.5-23 MAP ORIENTATION Protected forest Local protected area Reservoir /Lake area Opengreen area Industrial greenbelt Agriculture Public cemetery Town forest area III. DISAATER-PRONE AREA Natural fortress Location of evacuation Camp sites Alternative posts CILEGON H.Tb. IMAN ARIYADI S.Ag MM, MSI CHAIRMAN OF CITY PARLIAMENT H.ARIEF RIVAI MADAWI, SH, MSI Source Peta Dasar Dinas Tata Kota Cilegon Tahun 2005 Fig.3.5-11: Cilegon City Built-up Zone Planning Mapn (2010 – 2030) Cilegon City Government REGIONAL SPATIAL PLAN Gamber: 5-10 Region Development Plan INFORMATION Railroad Road SUTET Administrative boundaries Residential area Industrial area Port/Warehouse area TPU Trade/Service area Government and Public building Tourism area Integrated terminal Mixed region (Eastern Clegon Secondary Waste landfills Industrial landfill site Public cemetary Scale: 1:90,000 Source: Hasil Analisis Peninjauan Kembali RTRW Kota Cilegon Halaman V-72 3.5-24 (4) Sunda Strait Area Bridgefoot in Baten Side As states in .Master Plan of Acceleration and Expansion of Indonesia Economic Development 20112025 (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 servicebased 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) b) c) d) e) f) g) h) i) j) k) l) Strategic Zone Development Project and Sunda Strait Bridge Development; A 300.000 Barrel capacity/day Oil Refineries Development Project; Bojonegara International Port Development Project; Karian Dam Development Plan in Lebak Regency, and some other Dams Development; Integrated Regional Final Solid Waste Management in Bojong Menteng; Electricity Infrastructure Development in Banten Province; Integrated Steel Mill Project (JV Krakatau-Posco) Zhejiang Investment (China): industrial estate, cement industry, railway, steel, manufacture, etc. Cilegon – Bojonegara Toll Road Investment; Serang – Panimbang Toll Road Project; Railway Network Lane Development Plan in Banten Province; 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. 3.5-25 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. 3.5-26 Fig.3.5-12: Spatial Plan of Banten Province (2030) (Source : Regional Spatial Planning in Banten Province [2011] ) 3.5-27 Fig.3.5-13: Water Resource Potential in Baten Province (Source : Regional Spatial Planning in Banten Province [2011] ) 3.5-28 Fig.3.5-.14: Energy Development Potential in Baten Province (Geothermal) (Source : Regional Spatial Planning in Banten Province [2011] ) Fig.3.5-15: Oil and Natural Gas Reserve and Concession (Source : Regional Spatial Planning in Banten Province [2011] ) 3.5-29 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. 3.5-30 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 3.5-31 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. 3.5-32 • 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 3.5-33 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; 3.5-34 • 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. 3.5-35 Fig.3.5-.16: Spatial Planning Map of Lampung Province Spatial structure planning map Scale 1:1,500,000 Boundarie Provincial Boundaries District Boundaries River Hub National hub Activity center area Promotional activity center Center of local activity Road/Railway network Arterial (main) Collector (main) Cross-national Local (main) Railway Toll road plan Railway plan Map situation; Lampung Province Source: REGIONAL SPATIAL PLAN OF LAMPUNG PROVINCE 3.5-36 Fig.3.5-17: Land-use Planning Map in Lampung Province Spatial Pattern Planning Lampung Province Scale 1:1,500,000 Boundaries Provincial Capital District/City Capital Provincial Boundaries District Boundaries River Arterial (main) Collector (main) Cross-national Local (main) Railway Toll road plan Railway plan Protected Areas Forest/Natural reserves Protected forest Regional Plantation allocation Protected area Protected local area Cultivated Areas Production forest area allocation Residential area allocation Industrial area allocation Fishery area allocation Farming area allocation Plantation area allocation Mining area Regional tourism area Map situation; Lampung Province Source: REGIONAL SPATIAL PLAN OF LAMPUNG PROVINCE 3.5-37 Fig.3.5-.18: South Lampung District Regional Development Plan Map Government of Lampung Selatan District Regional Spatial Plan Lampung Selatan District Spatial Patterns Planning Map Lampung Selatan District Geography Grid and Grid UTM Sea-level INFORMATION ADMINISTERIAL CAPITALWATER BOUNDARY District Capital (K b ) Capital District (K ) CONNECTIO Arterial Collector Local road Railroad Terminal Type PROTECTED Protected forest Community forest CULTIVATED Production Dryland farming ADMINISTERIAL BOUNDARY Province District District Watershe PLAN Freeway Highway plan National road Railroad plan Shipping line SETTLEMENT AREA Coast River Urban Trade and Industrial area Other uses Plantation Airport area Port area Terminal Type A Terminal Type B Terminal Type C Large station Tourism area National airport Fishery Local airport Agricultural Head Officer of Lampung Selatan District 3.5-38 (Kab) (Kec) Fig.3.5-19: Strategic Development Plan in South Lampung District Government of Lampung Selatan District Regional Spatial Plan Lampung Selatan District Strategic Area Development Map Lampung Selatan District Geography Grid and Grid UTM Sea-level INFORMATION ADMINISTERIAL CAPITAL District Capital (K b ) Capital District (K ) ADMINISTERIAL BOUNDARY Province District District WATER BOUNDARY Coast River CONNECTIO Arterial Collector Local road Railroad Terminal Type PLAN Freeway Highway plan National road Railroad plan Shipping line Terminal Type A Terminal Type B Terminal Type C CargoTerminal Large station National airport Local airport Head Officer of Lampung Selatan District 3.5-39 3.5-40 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. 3.5-41 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 3.5-42 Cable Stiffening Girder Anchorage (Source: Produced by the research team with reference to “photos of the upper parts of Seto Ohashi Bridge under construction”) 3.5-43 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. 3.5-44 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 Modern Group (local capital) and operation Year of start of 1992 operation Area of development 500 ha site 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 130 participating firms Major Japanese firms Hitachi, Fujifilm, Yamatogawa Industry, Nippon Seiki, Mitsuba, Yasunaga Remarks 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 PT.Krakatau Steel Industrial Estate Cilegon of operation Year of start of 1983 operation Area of development 450 ha site Price Land: 50-60 US$/m2 3.5-45 Utilities Number of participating firms Major Japanese firms Remarks Contact information District: Min 5,000 m2 Electricity: 3,400MW Water: 2,000L/s Natural gas Port: 180,000DWT Communication system: Optical fibers Hotels, golf courses, and office buildings 71 PT. Lautan Otsuka Chemical, PT.Sumimagne Utama (Sumitomo Group), PT. Kokusei Keiso, PT. Asahimas Chemical Main fields are iron, steel, petrochemistry, food industry, and chemical engineering 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. 3.5-46 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. 3.5-47 3.5-48 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. 3.5-49 - 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 Load Factor 88.00% 86.46% 86.00% 84.84% 84.00% 82.00% 84.46% 81.70% 81.66% 80.00% 80.00% 78.00% 76.00% 2005 2006 2007 2008 2009 2010 (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 Penumpang 800,000 713,125 700,000 600,000 552,796 500,000 400,000 335,093 300,000 200,000 174,167 366,658 416,066 194,832 100,000 2004 2005 2006 2007 2008 2009 (Source: Lampung Province Land-use Planning Materials) 3.5-50 2010 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. 3.5-51 (3) Examination of Technical Methods 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 (Source: Lampung Province Land-use Planning Materials) << 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. 3.5-52 - 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. 3.5-53 3.5-54 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) New/Renewable Energy 2025 Target Values (%) Natural Gas Coal Oil Biofuels Geothermal Other (including Nuclear) Liquefied Coal (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 3.6-1 30 33 20 5 5 5 2 Table.3.6-2: Outline of Crash Program Development years Development method Electric power output Purposes First crash program 2006-2009 PLN: 100% Approx. 10,000MW y Emergency power development y Post-petroleum measures Power source category Coal: 100% Legal reasons Presidential Regulation No. 71/2006 y y y y y Second crash program 2010-2014 PLN: 44.3%, IPP: 55.7% Approx. 9,500MW Emergency power development Diversification of electric power Introduction of new renewable energy Geothermal energy: 41.7% Hydraulic power: 12.6% Coal: 35.6% Gas: 1.1% Gas combined cycle: 9.0% 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. 3.6-2 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. Sumatra produces around 20 million tons of coal annually. 3.6-3 To put a number to it, 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 3.6-4 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) 3.6-5 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. 3.6-6 As indicated in the Priority to Supply 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 3.6-7 necessary to deal with the land appropriation problem. 3.6-8 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 3.6-9 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) 3.6-10 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. 3.6-11 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. 3.6-12 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 Power Generation Methods (ii) Flash Cycle (iii) Binary Cycle (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 3.6-13 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. 3.6-14 Chapter 4 Evaluation of Environmental and Social Impacts Reproduction Prohibited 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 4-1 Fig 4-2: Construction Sites and Routes of Sunda Straits Bridge Lampung Province Bakauheni Port Proposed Sites and Routes of Sunda Straits Bridge Merak Port Sunda Strait Anyer 0 10km Bantem Province 4-2 Fig. 4-3: Geography of Banten Province, Java Krakatau Volcano Merak Port Rakatau Island Cilegon Bojonegara Port Java Sea Ujung River Anyer Rancau Donau Reserve Carita Sunda Straits Labuann 0 20km Hutan Wisata Carita Reserve Lesung Cape Ujung Kulon National Park Indian Ocean 4-3 Seran (Capital) Fig. 4-4: Geography of Lampung Province, Sumatra South Sumatra Province Bukit Barisan Selatan National Park Mesuji River Turanbawang River Way Kambas National Park Seputih River Barisan Mountains Bandar Lampung (Capital) Metro Panjan Port 0 20km Lampung Bay Bakauheni Port Krakatau Volcano 4-4 Sekanpung River ■ 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 Avg. high T , Avg. low T, Precipitation, mm Avg. rainy days Jan 31.5 24.2 384.7 26 Feb 32.3 24.3 309.8 Mar 32.5 25.2 100.3 Apr 33.5 25.2 257.8 May 33.5 25.4 133.4 Jun 34.4 24.8 83.1 Jul 33.3 25.1 30.8 Aug 33.0 24.9 34.2 Sep 32.0 25.5 29.0 Oct 31.7 25.5 33.1 20 15 18 13 17 5 24 6 9 Nov 31.3 24.9 175. 0 22 Dec 32.3 24.9 84.0 Year 31.8 25.0 1,655.2 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 4-5 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 1815.11.27 1815.11.24 1976.06.26 1976.11.24 1992.09.29 Place South Indonesia (Bali) North-west Indonesia (Central Sumatra) East Indonesia(Irian Jaya) East Indonesia (Irian Jaya) East Indonesia (Flores) Magnitude (M) 8.7 Damages Death and missing: 10,300 Big tsunami (?) 6.9~7.1 7.2 7.5~7.7 Death and missing: 5,000~9,000(?) Death and missing: 100~6,000(?) Flores Earthquake Death and missing: 2,500 and more, Big tsunami: Max. 25m. 2004.12.26 North-west Indonesia 9.1~9.3 Sumatra-Andaman Earthquake (North Sumatra) (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 8.4~8.7(?) Death and missing: 1,300~1,700, Wide (North Sumatra) area earthquake (Tsunami was small.), The giants earthquake occurred south adjacent to the Sumatra-Andaman Earthquake. 2006.05.27 South Indonesia (Central 6.4 Death and missing: 5,700 and over, Java) Many towns and villages collapsed. 2006.09.30 North-west Indonesia 7.5~7.6 The deep earthquake, Death and (Central Sumatra) 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. 4-6 ■ 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 4-7 the province of Banten. Fig. 4-5: Land Use Map (North Area of Banten Province, Java) Java Sea Sunda Strait Bird Sanctuary (Plau Dua) (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) Carita Sunda Strait Lesung Cape (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 4-8 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. 4-9 Fig. 4-7: Land Use Map (Lampung Province, Sumatra) (Source: Facility Agro-forestry Development through Land and Tree Tenure Reforms in Indonesia, September 2005) 4-10 (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. 4-11 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. 4-12 Table 4-3 :CO2 Emission Rates by Vehicles, Vessels and Crafts No. 1 2 3 Transportation media CO2 Emission rate (Passenger) 175~177 53~56 19 Private car Bus Railway b),a) b),a),b) b),a) Ditto. 4 Private railway 2~4 c),b) 5 High speed railway 4~6 b) 14 c) 83~88 c) 6 Sinkansen 7 Aircraft (Standard1,2) 8 Aircraft 9 10 11 Private small truck Private cargo truck Small truck for business use Ordinary truck for business use Cargo truck for business use Railway (JR cargo) 12 13 14 15 109~111 (Cargos) 2,190 1,040 660 Ferry Ditto. b),a) b) d) d) 176 d) 158 b) 21~22 b),d) 48 d) 16 Ship 39 b) 17 Coastal ship 37 d) 1,474 d) 18 Aircraft g-CO2/passenger-km Ditto. 〃 〃 〃 〃 g-CO2/t・km 〃 〃 〃 〃 〃 〃 〃 〃 〃 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 1 2 3 4 5 Times of departure and arrival (times/year) 1,734 2,439 3,914 3,914 (?) 4,442 Total passengers (passengers/year) 2004 113,455 2005 196,128 2006 321,545 2007 366,658 2008 378,653 Total 1,376,439 Average annual 252,597 increment of passengers (passengers/year) (Source: hhtp://en.wikiipedia.org/wiki/Radin_Inten_II_Airport) 4-13 Table 4-5: Modal Shift Rates from Aircrafts to Other Crafts and Vehicles Transportation Transportation Aircraft 20% ➔ Bus 40% ➔ Aircraft 100% 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 Year 年平均増分 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Annual Number of Aricraft Paseengers (pax/year) 252,597 631,250 883,847 1,136,444 1,389,041 1,641,638 1,894,235 2,146,832 2,399,429 2,652,026 2,904,623 3,157,220 3,409,817 3,662,414 3,915,011 4,167,608 4,420,205 4,672,802 4,925,399 5,177,996 5,430,593 5,683,190 5,935,787 Annual pasenger-km (pax-km/year) CO2 Emission by Transportation Media (t-CO2/y)) w/o Modal Shift Rate (%) of modal shift from air crafts to miscellenous trasnportation media (Aircraft) (Aircraft) (Bus) (Raiway) (Automible) 100% 20% 40% 30% 10% Balance: CO2 reduction Duaraion of plan and design of Sunda Straits Bridge Duration of Construction of Sunda Straite Bridge 1,041,902,000 1,105,051,250 1,168,200,500 1,231,349,750 1,294,499,000 1,357,648,250 1,420,797,500 1,483,946,750 115,651 122,661 129,670 136,680 143,689 150,699 157,709 164,718 23,130 24,532 25,934 27,336 28,738 30,140 31,542 32,944 23,339 24,753 26,168 27,582 28,997 30,411 31,826 33,240 5,939 6,299 6,659 7,019 7,379 7,739 8,099 8,458 18,442 19,559 20,677 21,795 22,913 24,030 25,148 26,266 Total 44,802 47,517 50,233 52,948 55,663 58,379 61,094 63,810 434,446 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: 4-14 (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. 4-15 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 Institute of Energy Economics of plant (Super pressure) Japan (JPOWWR) 2 Coal-fired power High efficiency of low calorie Sojitsu (Tsukishima Kikai) coal-fired power plants 3 Power Reduction of power transmission Mitsubishi UFJ Morgan Stanley transmission and loss by high-efficient transformers Securities (Tohoku Electric Power, supply network Hitachi Metals) 4 Renewable Geothermal power plants Mitsubishi Corporation (West JEC) energies 5 Factory energy Optimized control of factory’s Yamatake saving facilities optimization by IT 6 REDD+ Forest protection in developing Marubeni (Reducing countries Emissions from Deforestation and Forest Degradation-plus) Arabian Oil Co., Ltd 7 CCS (Carbon Enhanced oil recovery by CO2 Dioxide Capture injection CO2 and Storage) 8 Chemistry NO2 reduction by coating fertilizers Shemricamagri (Marubeni) 9 Cement Recovery of waste heat from power Kawasaki Heavy Industries generation and gasification of wastes (Source: About “Bilateral CO2 Credits System” (WWF Japan, February 25, 2011) 4-16 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 Environment al Item Main Check Items 1. Permits and Explanation (1) EIA and Permits and Environmenta l Permits (a) Have EIA reports been officially completed? (b) Have EIA reports been approved by authorities of the host country’s government? (c) Have EIA reports been unconditionally approved? If conditions are imposed on the approval of EIA reports, are the conditions satisfied? (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? (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? (b) Have the comment from the stakeholders (such as local residents) been reflected to the project design? (2) Explanation to the Local Stakeholders Significance of Potential Environmental Impacts Major Small None Not Clear --------- Potential Environment al Issues and Problems --- Confirmation of Environmental Considerations (Reasons, bases, mitigations, etc.) SEA and/or EIA have not been prepared yet. --- --- --- --- --- Ditto. --- --- --- --- --- Ditto. --- --- --- --- --- Ditto. --- --- --- --- --- Ditto. --- --- --- --- --- Ditto. 4-17 Category 2. Pollution Control Environment al Item Main Check Items (3) Examination of Alternatives (a) Have alternative plans of the project been examined with social and environmental considerations? (a) Is there a possibility that air pollutants emitted from the project related sources, such as vehicles traffic will affect ambient air quality? (b) If air quality already exceed country's standards near the route, is there a possibility that the project will make air pollution worse? (1) Air Quality (2) Water Quality (3) Noise and Vibration 3. Natural Environment (1) Protected Areas Significance of Potential Environmental Impacts Major Small None Not Clear --------- Potential Environment al Issues and Problems --- Confirmation of Environmental Considerations (Reasons, bases, mitigations, etc.) There are several sites and routes for the Sunda Strait Bridge. However, the route has not been determined yet. ✔ Air pollution ✔ Ditto. (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 (b) Is there a possibility that the project will contaminated water source such as well water? ✔ Ditto. (a) Do noise and vibrations from vehicles and train traffic comply with the country’s standards? ✔ Health damage (b) Do low frequency sound from vehicle and train traffic comply with the country’s standards? ✔ Ditto. Ditto. (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.. 4-18 To comply with the Indonesian environmental criteria. 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. Countermeasures such as Slope protection, installation of sedimentary basins, etc will be taken. Proper countermeasures will be taken against adverse effects such as flowing of pollutants into wells、 etc.. To be planned and designed in compliance with Indonesian environmental standards, etc.. Category Environment al Item (2) Ecosystem (3) Hydrology (4) Topography and Geology Main Check Items Significance of Potential Environmental Impacts Major Small None Not Clear (a) Does the project site encompass primeval forests, tropical rain forests, ecologically valuable habitats (e.g., coral reefs, mangroves, or tidal flats)? (b) Does the project site encompass the protected habitats of endangered species designated by the country’s laws or international treaties and conventions? (c) If significant ecological impacts are anticipated, are adequate environmental protection measures taken to reduce the impacts on ecosystem? (d) Are adequate protection measures taken to prevent impact such as disruption of migration routes, habitat fragmentation and traffic accident of wildlife and livestock? (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? ✔ Potential Environment al Issues and Problems Ditto. ✔ Ditto. No endangered species in the project sites. If any, the route will be changed. ✔ Ditto. No significant impact so far as the Indonesian environmental rules and regulations. If any, the route will be changed. ✔ Ditto. No such situations in the project sites. If any, the route will be changed. ✔ 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. (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? (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? ✔ 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. ✔ 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. 4-19 Confirmation of Environmental Considerations (Reasons, bases, mitigations, etc.) So far as the Sunda Bridges are concerned,, no large primeval forests in the project sites. If any, the route will be changed. Category 4. Social Environment Environment al Item (1) Resettlement Main Check Items (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? (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? (a) Is there involuntary resettlement? If involuntary resettlement is caused, are efforts made to minimize the impacts caused by the resettlement? (b) Is adequate explanation on relocation and compensation given to affected persons prior to resettlement? (c) Is the resettlement plan, including proper compensation, restoration of livelihoods and living standards developed based on socioeconomic studies on resettlement? (d) Is the compensations going to be paid prior to the resettlement? (e) Is the compensation policies prepared in document? (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? (g) Are agreements with the affected people obtained prior to resettlement? (h) Is the organization framework established to properly implement resettlement? Are the capacity and budget secured to implement the plan? Significance of Potential Environmental Impacts Major Small None Not Clear Potential Environment al Issues and Problems Ditto. Confirmation of Environmental Considerations (Reasons, bases, mitigations, etc.) ✔ Soil run-off, etc. Ditto. ✔ Social problems ✔ Ditto. ✔ Ditto. If acquisition of lands and resettlement are needed, LARAP will be prepared based on Indonesian laws, rules and regulations. Ditto. ✔ Ditto. Ditto. ✔ Ditto. Ditto. ✔ Ditto. Ditto. ✔ Ditto. Ditto. ✔ Ditto. Ditto. ✔ Ditto. Ditto. 4-20 Category Environment al Item (2) Living and Livelihood Main Check Items (i) Are any plans developed to monitor the impacts of resettlement? (j) Is the grievance redress mechanism established ? (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? (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? (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? (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) ? (e) Is there a possibility that roads and railways will cause impede the movement of inhabitants? Significance of Potential Environmental Impacts Major Small None Not Clear Confirmation of Environmental Considerations (Reasons, bases, mitigations, etc.) ✔ Potential Environment al Issues and Problems Ditto. ✔ Ditto. Ditto. Ditto ✔ Ditto. Installation of the bridge over the Sunda Strait will arise unemployment of ferry worker, etc.. Countermeasures shall be adopted, taking such situation consideration. ✔ 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. 4-21 ✔ Contermeasures shall be taken in cooperation woth teh related Indonesian aurhoritie so taht such situations mayl not arisen in the projects/ ✔ The projects shall be planned in cooperation with the persons concerned of Indonesia to prevent such things from happening.. ✔ There will be no such a possibility. Category Environment al Item (3) Heritage (4) Landscape (5) Ethnic Minorities and Indigenous Peoples (6) Working conditions Main Check Items Significance of Potential Environmental Impacts Major Small None Not Clear Potential Environment al Issues and Problems Confirmation of Environmental Considerations (Reasons, bases, mitigations, etc.) (f) Is there a possibility that structures associated with roads (such abridges) will cause a sun shading and radio interference? (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? (a) Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken? (a) Are considerations given to reduce impacts on the culture and lifestyle of ethic minorities and indigenous peoples? (b) Are all of the rights of ethnic minorities and indigenous peoples in relation to land and resources respected? (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? (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? ✔ The projects shall be planned not to arise such damages. ✔ 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. . ✔ If any, they will be protected by the Indonesian laws and regulations. . ✔ 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.. It is expected there is no ethnic problems in the project in/on the sites and routes of the Sunda Straits Bridges. (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.? ✔ 4-22 ✔ 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. ✔ Proper instruction and guidance monitoring will be given to individuals involved in the projects. ✔ Proper instruction and guidance about safety and hygiene will be given to individuals involved in the projects. Category 5. Others Environment al Item (1) Impacts during Construction Main Check Items (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? (a) Are adequate measures considered to reduce impacts during construction (e.g., noise, vibrations, turbid water, dust, exhaust gases, and wastes)? (b) If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? (c) If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts? (2) Monitoring Significance of Potential Environmental Impacts Major Small None Not Clear Potential Environment al Issues and Problems ✔ ✔ Of course, proper actions shall be taken. Environmen tal pollution and contaminati on - Noise & vibration, turbidity, dust, exhausted gas, wastes, etc.. ✔ Damages to natural environmen t ✔ Traffic congestion, nuisance, etc (a) Does the proponent develop and implement monitoring program for the environmental items that are considered to have potential impacts? (b) What are the items, methods and frequencies of monitoring program? (c) Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)? (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? ✔ 4-23 Confirmation of Environmental Considerations (Reasons, bases, mitigations, 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. 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. Adequate measures such as detours, etc. are taken to reduce impacts to social environment. To be executed, based on environmental monitoring & management plans(RKL and RPL).. ✔ Ditto. ✔ Ditto. ✔ Ditto. Category 6. Note Environment al Item Main Check Items Significance of Potential Environmental Impacts Major Small None Not Clear Potential Environment al Issues and Problems Confirmation of Environmental Considerations (Reasons, bases, mitigations, etc.) Reference to Checklist of Other Sectors (a) Where necessary, So far as the Sunda Bridges are ✔ pertinent items concerned, no large forests in the described in the project. If any, it will be Forestry Project compensated by forestation, etc.. checklist should also be checked (e.g., projects including large areas of deforestation). (b) Where necessary, So far as the Sunda Bridges are ✔ pertinent items concerned, power cables and described in the Power facilities will not be involved in Transmission and the project. Distribution Lines checklist should also be checked (e.g., projects including installation of electric transmission lines and/or electric distribution facilities). Note on So far as the Sunda Bridges are If necessary, the ✔ Using concerned, no global issues in impacts to Environment the project. trans-boundary or al Checklist 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). 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.. 4-24 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. 4-25 ■ 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 4-26 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. 4-27 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 Announcement of project plans Announcement for preparation of EIA Suggestions, opinions and responses (Within 30 days after announcement) Consultation Suggestions, opinions and responses Arrangement of KA-ANDAL Evaluation of KA-ANDAL by Committee (Max. 75 days) Arrangement of ANDAL, RKL and RPL Suggestions, opinions and responses Evaluation of KA-ANDAL by Committee (Max. 75 days) Coordination and review of ANDAL, RKL and RPL Decision of approval of EIA (Source: Decision KA. BAPEDAL No. 08 year 2000 on involvement of people and the information transparency in analysis process about environmental impacts) 4-28 ■ 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 I. Mining and energies Projects or activities a) Scale/Magnitude (EIA needed projects and activities) 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 Power generation pants (Diesel, natural gas, steam, and combined cycles) Hydraulic power generation Geothermal power plants Other power plants II. Medicals Petroleum and natural gas (Production) Petroleum and natural gas (Refining) Petroleum and natural gas pipelines Hospitals (A class, I class or equal) and other hospital (400 rooms and over), complete nursing care hospitals, basic medicine manufacturing facilities 150k V and over Banten Province Lampung Province ✔ ✔ ✔ ✔ ✔ 100MWand and over ✔ ✔ 55MWand and over ✔ ✔ ✔ ✔ ✔ Length 25kmand over ✔ ✔ 4-29 Remarks Field III. Public works IV. Agricultures V. Tourism Projects or activities a) Scale/Magnitude (EIA needed projects and activities) Construction of dams and dikes High speed highways and flyovers Height: 15m and over Construction of trunk roads and highways Construction and repairs of m main roads and highways except large cities and metropolitans Waste water treatment facilities and sewers Sewage Total length: 25kmand over Total length: 5km and over or area: 5ha and over Water intake facilities from lakes, rives, ponds, etc. Urban redevelopment projects High rise buildings and mansions Shrimps and fish cultivation Plantation Hotels Area 50ha and over Area : 2,500ha and over Area: 5ha and over Height: 60mand over Area: 50haand over Area: 10,000ha以以 200 rooms and over or area: 5ha and over Golf course Recreation parks VI. Immigration and living in forests VII. Industries VIII. Transportation Tourism and resort facilities Construction of Immigrants’ housing facilities 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 Railways 100ha and over Banten Province Lampung Province ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Area: 3,000haand over Length: 25km and over Construction of subways Construction of port and related facilities (Class 1 and 2) Applicable to Sunda Straits Bridge project. Ditto. Ditto. ✔ ✔ ✔ ✔ ✔ ✔ 4-30 Remarks Applicable to Sunda Straits Bridge project. Field Projects or activities a) Construction of special ports Coast reclamation IX. Trade and commerce X. Defenses and security XI. Nuclear energies XII. Forests XIII. Harmful waste control XIV. Integrated/multiple ministries Port freight handling facilities Port freight handling areas Air ports and related facilities Trading centers or shopping centers (Details to be omitted.) (Details to be omitted.) Construction of safari parks Construction of zoos Scale/Magnitude (EIA needed projects and activities) Banten Province Lampung Province Remarks ✔ Area: 25haand over ✔ Volume: 100,000m3 and over ✔ ✔ ✔ Area: 5ha and over Or area: 10,000m2and over ✔ 250haand over ✔ 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. Construction of harmful waste treatment facilities Activities related to same species of ecologies (Each which needs EIA) and projects or activities control by plural ministries. ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ ✔ Applicable to Sunda Straits Bridge project. (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. 4-31 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 4-32 Chapter 5: Financial and Economic Evaluation Reproduction Prohibited 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 Total distance Central span Number of suspension bridges Suspension bridges (km) Marine approach (km) Water depth Notes 25km 2,500m 2 Case-1 (Optimistic Case) 25km 2,500m 2 Case-2 (Pessimistic Case) 25km 2,500m 3 10km 10km 15km 15km 70m Slide of Akashi Strait Bridge 15km 70m Reduce cost for suspension bridge portion 10km 70m Addition of one suspension bridge in area where seabed is weak 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 5-1 × 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 Base case Case-1 (Optimistic case) Case-2 (Pessimistic case) 1.55 trillion yen 1.05 trillion yen 2.05 trillion yen - - 570 billion yen 450 billion yen 450 billion yen 380 billion yen 2 trillion yen 1.5 trillion yen 2.5 trillion yen Construction costs Suspension bridge area Suspension bridge area (additional) Approach area Total Note Based on the Akashi Costs of suspension Strait Bridge bridge area are reduced suspension bridge in (about 70% of the Addition of one the soft-sea-base area base case:equivalent (the distance of 2,250m of unit prices of the is assumed) Messina Bridge) Regarding costs for the above base case, optimistic case and pessimistic case are set as shown in Table 5.1-3. 5-2 Table 5.1-3: Bridge project cost Base case Construction cost Maintenance cost Notes Case-1 Case-2 (Optimistic case) (Pessimistic case) 2 trillion yen 1.5 trillion yen 2.5 trillion yen 1st year: 0.04% 2nd year: 0.08% 3rd year: 0.12% … th 50 year: 2.00% *The ratio listed above will be applied to construction cost each year (increase of 0.04% per year) Slide of Akashi Strait Reduce cost for Addition of one Bridge suspension bridge suspension bridge in portion area where seabed is weak (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 5-3 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 Dredging Quay Bulwark Landfill/bulldozing Apron paving Route signs Other Quantity 200,000 600 2,200 1,200,000 1,000,000 9 1 Unit m3 m m m3 m2 Signs Set Cost (yen) 500 3,200,000 1,200,000 3,000 5,000 10,000,000 10,000,000 Total 100,000,000 1,920,000,000 2,640,000,000 3,600,000,000 5,000,000,000 90,000,000 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, 5-4 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. 5-5 5-6 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. 5-7 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. 5-8 Figure 5.2-1 Estimated Flow of Input-Output Analysis Direct effect 【 Project Investment Cost: Sunda Strait bridge construction cost, etc.】 Regional Final Demand (direct investment) ×Input Coefficient 1 ×Employee ×Value-added Ratio Compensation Ratio Raw Material Inducement Cost Added Value Inducement Cost (direct) (direct) Employee Compensation Cost ×Self-sufficient Rate 2 Primary effect Regional Demand Increase Employee Compensation Cost (primary) (direct+primary) ×Inverse Matrix ×Propensity to Coefficient 3 Consume 6 Consumption Expenditure Increase Production Inducement Cost 4 (primary) ×Value Added Ratio ×Employee ×Margin Adjustment Compensation Ratio Section Demand Increase Added Value Inducement Cost 5 (producer price) Employee Compensation Cost Secondary effect Production Inducement Cost ×Inverse Matrix Coefficient (secondary) ×Value-added ×Self-sufficiency Rate Regional Demand Increase ×Employee Ratio Compensation Ratio Added Value Inducement Cost Employee Compensation Cost 5-9 (secondary) 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. 5.2.1.3 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. 5-10 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 Sunda Strait bridge construction Cost (billion yen) Effect Direct effect (direct investment) 2,000 Primary effect 1,438 Secondary effect 1,145 Total effect 4,584 (Source: Study team) 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. 5-11 Table5.2-2 Added-value Inducement Cost Sunda Strait bridge construction Effect cost (billion yen) Direct effect (direct investment) 726 Primary effect 758 Secondary effect 582 Total effect 2,067 (Source: Study team) (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. 5-12 Figure 5.2-2 Far-reaching Effects (Sunda Strait Construction Bridge)(before regional revision) (billion yen) Direct Effect 【 Project Investment Cost: Sunda Strait bridge construction cost】 Regional Final Demand (direct) 2,000.0 Raw Material Inducement Cost ×Employee ×Value-added Ratio ×Input Coefficient Compensation Ratio Added Value Inducement Cost (direct) Employee Compensation Cost 570.7 726.1 1,054.6 ×Self-sufficiency Rate Primary Effect Regional Demand Increase Employee Compensation Cost 1,179.2 906.5 ×Inverse Matrix ×Propensity to Coefficient Consume Consumption Expenditure Cost Production Inducement Cost 742.9 1,438.7 ×Value-added Ratio ×Employee Compensation Ratio Added Value Inducement Cost 758.7 Section Demand Increase Employee Compensation Cost 608.5 Secondary effect ×Margin Adjustment 742.9 ×Inverse Matrix Production Inducement Cost ×Self-sufficiency Rate Coefficient 1,145.6 Regional Demand Increase ×Employee ×Value-added Ratio Compensation Ratio Added Value Inducement Cost 582.3 Employee Compensation Cost 476.0 5-13 687.5 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 Lampung Province 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 90,163 641,267 237,421 3,668,895 2,700,782 Construction 4,733,679 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 Total 207,909 102,049,857 (Source: Workforce 15 Years of Age and Over by Industry (2005–2010). Banten Dalam Angka 2010. Lampung Dalam Angka 2010) 5-14 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 Communicati on, 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. 5-15 Table 5.2-6 Production Inducement Amount (billion yen) Effect Direct effect Sunda Strait Bridge Construction Cost 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. * 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 5-16 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 Direct effect Sunda Strait Bridge + Regional Development 2,000.0 2,057.6 Primary effect 765.3 787.5 Secondary effect 610.0 627.5 3,375.4 3,472.6 Total effect (Source: Study Team) 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. 5-17 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% (Source: Study Team) (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 Construction costs 2 trillion yen Case-1 Case-2 (optimistic case) (pessimistic case) 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. 5-18 Table 5.2-10:Forecast of traffic demands Traffic Year (10,000 Traffic Traffic Year cars a day) (10,000 Year cars a day) (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 (Source: Study Team) 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 5-19 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 Supportive capital ratio 1,000 yen 3,000 yen Case-0 (Base case) Case-1 (Optimistic case) Case-2 (Pessimistic case) 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 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 (Source: Study Team) 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. 5-20 Table 5.2-12 Results for financial analysis of bridge Sensibility analysis Toll fare Supportive capital ratio Base case Case-1 (Optimistic case) Case-2 (Pessimistic case) 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%) ― 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%) 3,000 yen *Project IRR based on DCF. Figures in parentheses are equity-base IRR (Source: Study Team) 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. 5-21 5-22 Chapter 6 Planned Project Schedule Reproduction Prohibited (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. ¾ 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. ¾ Java:The shortage of the infrastructure and regional discrepancy should be solved. The following are the detailed explanations of stepwise development. 6-1 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 Banten ★ xxx Proposed project ✔ xxx Existing Project 6-2 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) Logistics ✔ Toll Road ✔ Railway expansion ★ Industrial township for bridge construction ★ Revamping Port Lampung ✔ Upgrading Airport ★ Airport city Jakarta Banten ★ xxx Proposed project Logistics ✔ xxx Existing Project Energy & Resources 6-3 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) 6-4 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) 6-5 (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 (Source: Study Team) 6-6 Chapter 7 Implementing Organization in Indonesia and Its Capacity for Implementation Reproduction Prohibited 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. Institution (1) Coordinating Ministry for Economic Affairs (MENKO) (2) National Development Planning Agency (BAPPENAS) (3) Ministry of Public Works (4) Banten province, Lampung province Table 7-1: Role of Concerned Agencies Section Activity Infrastructure and Regional y Coordination of concerned Development Coordination agencies y Preparation of regulation (Presidential Regulation) y Controlling and managing PPP, Deputy for Facilities and regulation and MoU Infrastructure, Directorate of Public Private Partnership Development (PPP) Directorate General of y Working group activity Highways (Bina Marga) (data/information collection, workshop/seminar, expert invitation, study) y Study/design (preliminary) Directorate General of Spatial y Preparation of spatial plan for Management strategic area for Sunda Regional Development Planning Agency (BAPPEDA) y Establishment of committee (after Presidential Regulation is stipulated) y Preparation of spatial plan y Selection of strategic area and examination of priority programs y 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 7-1 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 2004 Regulation, Activities 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 7-2 Year 2010 Regulation, Activities y y y 2011 y y y y 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) 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. y Public sector role: policy and strategy development, regulation preparation, consortium management, plans approval, support finance (warranty, fund) y 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. 7-3 Table 7-3: Outline of the Presidential Regulation (prepared based on document provided by MENKIO) Components Organization (Development Board) Banten-Lampung Consortium Detail Development Board is composed of Steering Committee and Implementation Board 1. Steering Committee (1) Staff ¾ Chairman: Coordinating Ministry of Economic Affairs ¾ Vice Chairman: Coordinating Ministry of Politics, Legal and Security Affairs ¾ Daily Chairman: Minister of Public Works ¾ Vice Daily Chairman: Minister of Transportation ¾ Secretary: Vice Minister of Public Works ¾ Vice Secretary: Vice Minister of Transportation ¾ Members: concerned ministries and Banten province, Lampung province (20 members) (2) Scope of work : ¾ Establish national policies, direction and strategy ¾ Provide guidance for action to the Implementation Board ¾ Approve the Master Plan ¾ Determine BUMN and/or BUMD who will work with Banten – Lampung Consortium ¾ Hold Steering Committee coordinating meeting regularly ¾ Submit report to the President ¾ Facilitating the transfer of the authorities 2. Implementation Board (1) Staff ¾ Head ¾ Secretary ¾ Deputy of Planning and Control Division ¾ Deputy of Procurement Division ¾ Deputy of Technical Field (2) Scope of work : ¾ Develop programs and define the settings ¾ Coordinate relevant institutions ¾ Accept and implement devolution of powers ¾ Facilitating one stop service for licensing ¾ Prepare and establish master plan and action plans ¾ Granting concession to BUKSISS (Badan Usaha Kawasan Strategis dan Infrastructure Selat Sunda / Business Organization for Strategic Area and Infrastructure of Sunda Strait) ¾ Supervise BUKSISS ¾ Planning for land acquisition ¾ Report the implementation to the President through the Advisory Board periodically ¾ Develop board budget y Forming consortium: Banten province, Lampung province, state owned corporation (BUMD) y F/S, managing basic design (procurement of consultant) y Criteria for Consortium 7-4 Components Detail Lead by the National Business Agency Have adequate financial capability Have the competence and experience of implementing large scale projects ¾ Have ability to share payments and fund mobilization in national and international scope ¾ Gaining the bank support ¾ Guarantee to complete the project Procurement condition of BUKSISS Responsibility and authority of BUKSISS Government can provide support and warranty to the concession Support can be a fiscal and non fiscal contribution Warranty can be financial compensation ¾ ¾ ¾ BUKSISS Support and Warranty y y y y y 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”. 7-5 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. 7-6 (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. 7-7 7-8 Chapter 8 Technical Advantages of Japanese Companies Reproduction Prohibited 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 8-1 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 8-2 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 8-3 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 8-4 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. 8-5 8-6 Appendix Reproduction Prohibited Appendix A4: Evaluation of Environmental and Social Impacts Reproduction Prohibited Note: For explanation of legends, see Table A4-1. Figure A4-1 Land Use Map, Banten Province, Republic of Indonesia A4-1 Note: For explanation of legends, see Table A4-1. Figure A4-2 Source: Homepage of Ministry of Transportation, Indonesia, 2010 A4-2 ① ② ③ ④ ⑤ ⑥ ⑦ ⑧ ⑨ ⑩ ⑪ ⑫ ⑬ ⑭ ⑮ ⑰ Table A4-1 Explanation of Legends in Land Use Maps Indonesian English Indonesian Permukiman ? Perkebuman Plantation Pertambangan Mining Pertanian Lahan Kering Agriculture field Batas Provinsi shrub Pertanian Lahan Kering Agriculture field Batas Kabupaten/Kota & Belukar shrub & scrub Transmigrasi Restrainment Batas Kecamatan Sawah Rice field Garis Tepi Pantai/Pulau Tambak Fish pons Sungai Dua Garis Laban Terbuka Field open Garis Tepi Danau/Situ Hutan Lahan Kering Forest field shrub Jalan Kereta Api Primer primer Hutan Lahan Kering Forest field shrub Jalan Arteri Sekudar second Hutan Mangrove Forest mangrove Jalan Kolektor Sekudar second Hutan Tanaman Forest plant Jalan Lokal Rawa Campur Belukar Marsh mixed shrub Jalan Tol Savana Savanna Landas Pacu Semak Belukar Bush shrub A4-3 English Capital of province Capital of region Capital of district Boundary provincial Boundary of country/town Boundary Line edge shore/island River two line Line edge lake/ Rail road Local road Toll road ① ② ③ ④ ⑤ Minister of Transportation (MOT) Expert Staffs Transportation Environmental Section Transportation Section Transportation Regulation & Safety Section Transportation Technology & Energy Section Transportation Economics & Partnership Section Vice Minister Inspector General Secretariat General Directorate General of Land Transportation Directorate General of Sea Transportation Head of Education & Training Head of Research & Development Director of Traffic & Railway Transport Directorate General of Air Transportation Directorate General of Railways (DGR) Secretary Director of Technical Infrastructures Director of Safety & Technical Facilities Figure A4-3 Organization of Ministry of Transportation, Republic of Indonesia (Source: Homepage of Ministry of Transportation, Indonesia, 2010) A4-4 Minister of Environment (MENLH) Expert Staffs Secretary for Ministry of Environment Inspectorate Bureau of Planning & Foreign Cooperation Deputy of Environment al Affairs Deputy of Environment Control Deputy of Environmental Damage Control & Climate Change Deputy of Management B3, B3 Waste & Garbage Bureau General Deputy of Environment al Law Compliance Bureau of Laws & Public Relation Deputy of Communication Environmental & Community Empowerment Deputy of Field Technical Facilities and Environmental Education & Capacity Building Management Center, Echo-regional Sumatra (Source: Bali and Management Center, Eco-regional Nustsra Management Center Eco-regional Sumapapua Management Center Eco-regional Java Management Center Eco-regional Kalimantan Figure A4-4 Organization of Ministry of Environment, Republic of Indonesia State Ministry of Environmental Regulation No. 16 Year 2010, Organization and Management Work of Ministry of Environment, MOE 2110) A4-5 Head of Regional Environmental Agency (BLHD) Secretariat Program & Budget Personnel Financial Environmental Laboratory Sector of Conservation & Environmental Arrangement Conservation & Environmental Restoration Climate Change Mitigation & Adaptation Planning Environmental Resource Sector of Prevention & Management of Environmental Impacts of Urban Energy Resource AMDAL Research & Development Sector of Pollution Control and Environmental Sanitation Urban Energy Resources Management Environmental Roles General Source Pollution Control Activities Habitat Control & Environmental Sanitation Management of Waste Resources and Waste B3 Sector of Enforcement of Environmental Laws Environmental Legal Compliant Facilities Environmental Legal Compliant Facilities Environmental Legal Compliant Facilities 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) A4-6 Table A4-2 Indonesian Ambient Air Quality Standards No. Parameter Time1) Maximum Analysis Methods Remarks allowable limit and Equipment (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 2) 7. H2S 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 No. Parameter Table A4-3 Indonesian Water Quality Standards Unit Maximum Allowable Limits 1) A B2) C3) 1. 2. 3. 4. 5. I. Physical items Odor Soluble substances Turbidity Taste Temperature 6. 7. Color Electric conductivity (25℃) mg/ℓ NTU6) ℃ TCU7) μ mho/c m D4) None 1,000 5 No taste Ambient air temp. ∓ 3 15 - 1,000 Normal water temp. - 1,000 Normal water temp. 1,000 Normal water temp. - 2,250. 0.001 0.2 - 0.001 0.5 0.002 0.02 0.005 - II. Chemical items 1. 2. 3. a. Inorganic substances Hg Al Free ammonia (NH3) mg/ℓ mg/ℓ mg/ℓ A4-7 No. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Parameter As Ba Fe Fluorides B Cd Hardness (CaCO3) Chloride Free Chlorides(HClO,OCl) Co Cr6+ Mn Na Alkali salt Ni NO3NO2Ag Dissolved oxygen (DO) pH Se Zn Cyanides Sulfates Sulfur compounds hydrogen-sulfide Absorption rate of Na Cu Pb Carbon residue of sodium carbonate b. Organic substances Aldrin, Dieldrin Benzene BHC Benzo (a) pyrene Chloroform extraction Chlordane Chloroform 2-4 D DDT Surfactants 1, 2- Dichloroethane 1.1- Dichloroethene Endrins Heptachlors, Heptachlorepoxides Unit Maximum Allowable Limits B2) C3) 0.05 1 1 5 1.5 1.5 0.01 0.01 600 0.003 0.05 0.05 0.5 10 1.0 0.06 6 3 5-9 6-9 0.01 0.05 5 0.02 0.1 0.02 400 0.1 0.002 mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ A1) 0.05 1.0 0.3 0.5 0.005 500 250 0.05 0.1 200 10 1.0 0.05 6.5 – 8.5 0.01 5 0.1 400 0.05 mg/ℓ mg/ℓ mg/ℓ mg/ℓ 1.0 0.05 - 1.0 0.1 - 0.02 0.03 - 18 0.2 1 1.25 – 2.50 mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ mg/ℓ 0.0007 0.01 0.0001 0.0003 0.03 0.1 0.03 0.5 0.01 0.0003 0.003 0.017 0.5 0.003 0.042 0.001 0.018 0.21 0.002 0.004 - - A4-8 D4) 1 1 0.01 0.2 1 2 60 0.5 5–9 0.05 2 - - No. 15. 16. 17. 18. 19. 20. Parameter Unit A1) 0.00001 0.004 0.03 - Maximum Allowable Limits B2) C3) 0.056 0.035 0.5 0.2 Nil 1 0.1 0.1 D4) - Hexachlorphenol mg/ℓ Lindane mg/ℓ Methoxychlor mg/ℓ Methylene blue mg/ℓ Oils mg/ℓ Organic phosphorus , mg/ℓ Carbonates 21. Penta-chloro-phenols 0.01 mg/ℓ 22. Phenols 0.002 mg/ℓ 23. All pesticides 0.1 mg/ℓ 24. 2,4,6- Trichlorophenol 0.01 mg/ℓ 25. Organic matters (KMnO4) 10 mg/ℓ III. Microbiological 1. Fecal coliform 0 2,000 mg/ℓ 2. Total coliform 3 10,000 mg/ℓ IV. Radioactive 1 0.1 0.1 0.1 0.1 Totalαray Bq/ℓ 2 1.0 1.0 1.0 1.0 Totalβray Bq/ℓ 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)) 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 A4-9 Remarks Table A4-5 Indonesian Vibration Standards for Human Health Frequency Vibration Level (Hz) (Displacement 10-6 m) Not Disturbing Not Causes disturbing Comfortable sickness 4.0 100 – 500 500 – 1,000 ‹100 ›1,000 5.0 80 – 350 350 – 1,000 ‹80 ›1,000 6.3 70 -275 275 – 1,000 ‹70 ›1,000 8.0 50 - 160 160 – 500 ‹50 ›500 10.0 37 – 120 120 – 300 ‹37 ›300 12.5 32 - 90 90 – 220 ‹32 ›220 16.0 25 – 60 60 – 120 ‹25 ›120 20.0 20 - 40 40 – 85 ‹20 ›85 25.0 17 30 30 – 50 ‹17 ›50 31.5 12 – 20 20 – 30 ‹12 ›30 40.0 9 – 15 15 – 20 ‹9 ›20 50.0 8 -12 12 – 15 ‹8 ›15 63.0 6-9 9 – 12 ‹6 ›12 Source: KEP-49/MENLH/11/1996 Remarks Table A4-6 Indonesian Vibration Standards for Buildings Frequency Vibration Level Remarks (Hz) (mm/s (Peak)) Category Category Category Category A1) B2) C3) D4) 4.0 2.0– 27 27 – 140 ‹2.0 ›140 5.0 7.5– 25 25 – 130 ‹7.5 ›130 6.3 7.0 – 21 21 – 110 ‹7.0 ›110 8.0 6.0 – 19 19 – 100 ‹6.0 ›100 10.0 5.2 – 16 16 – 90 ‹5.2 ›90 12.5 4.8 15 15 – 80 ‹4.8 ›80 16.0 4.0 – 14 14 – 70 ‹4.0 ›70 20.0 3.8 – 12 12 – 67 ‹3.8 ›67 25.0 3.2 – 10 10 – 60 ‹3.2 ›60 31.5 3.0 – 9 9 – 53 ‹3.0 ›53 40.0 2.0– 8 8 – 50 ‹2.0 ›50 50.0 1.0 - 7 7 – 42 ‹1.0 ›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. A4-10 Table A4-7 Indonesian Exhaust Gas Emission Standards in Other Industries No. Parameter Maximum limit Remarks 2000~ (mg/m3) 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 No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. Parameter Temperature pH SS DSS Color 8) BOD CODCr Cu Zn Fe T-Cr Cr+6 Mn Ni T-CN Cd Pb T-Hg Ba Sn As Se Co H2S F (℃) West Java Province Industrial Estates A 6) B 7) 35 38 6–9 6-9 300 200 1,000 2,000 300 300 500 300 800 500 0.5 2 5 5 5 5 0.5 0.1 0.1 0.5 2 0.1 0.2 0.02 0.05 0.01 0.05 0.1 0.1 0.005 0.002 2 0.05 2 0.05 0.1 0.01 0.05 0.4 0.01 0.05 1.5 2 Indonesian National 2) Classification I 3) 38 6-9 200 2,000 50 100 2 5 5 0.5 0.1 2 0.2 0.05 0.05 0.1 0.002 2 0.1 0.05 0.4 0.05 2 II 4) 38 6–9 400 4,000 150 300 3 10 10 1 0.5 5 0.5 0.5 0.1 1 0.005 3 0.5 0.5 0.6 0.1 3 A4-11 Reference (Japanese National) 5.8 – 8.6 200 160 160 9) 3 5 10 2 0.5 10 1.0 0.1 0.1 0.005 15 (Unit: mg/ℓ) Remarks No. Parameter West Java Indonesian Reference Remarks Province National 2) (Japanese National) Industrial Classification Estates A 6) B 7) I 3) II 4) 26. Cl2 1 1 1 2 27. Cl 600 28. SO42400 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 A4-12 Appendix A5: Result of financial analysis Case0-3000-0 Reproduction Prohibited