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Indonesia, Japan agree on $43b plan for Jakarta

Raras Cahyafitri, The Jakarta Post,
Tokyo Wed, October 10 2012


Indonesia and Japan have agreed on a master plan for the construction of roads, railways, airports and other strategic infrastructure in Jakarta and its neighboring cities.
A steering committee tasked with drafting the master plan concluded its third meeting in Tokyo on Tuesday, announcing 45 projects with the total value of investment required estimated to reach Rp 410 trillion (US$43 billion).

All projects are expected to be completed by 2020 with the construction of 18 priority projects scheduled to start by the end of 2013.
The priority projects will include the construction of Jakarta’s Mass Rapid Transit system, Cilamaya International Airport, the expansion of Soekarno-Hatta International Airport, the creation of a new academic research cluster and the development of the city’s sewage system.

As one of the most populated cities in the world, Jakarta is struggling to accommodate growing demand for basic infrastructure. The capital has a population of 10,187,595 , equal to 15,427 people per square kilometer.
According to a study by the Public Works Ministry, at the current rate of car sales, Jakarta’s traffic may come to a standstill by 2014. The study finds that Jakarta is in need of 12,000 kilometers of roads to accommodate traffic in 2012 while existing roads currently stand at 7,208 kilometers.
Approximately 55 percent of the total investment needed to make the master plan materialize would come from private investors, said Coordinating Economic Minister Hatta Rajasa, who represented Indonesia at the meeting in Tokyo.

The remaining investment, he said, would come from the government, in which Japan through its Official Development Assistance (ODA) would contribute Rp 125.7 trillion or about 31 percent to the total. According to figures from the Japanese Ministry of Foreign Affairs, Japan’s ODA total loan aid to Indonesia reached 4.55 trillion yen ($58 billion) at the end of 2010.

Several other sources of financing are also under consideration, including financial mechanisms under the Indonesia Infrastructure Guarantee Fund and also loans from the Japan Bank for International Cooperation, which could be disbursed to the private sector.
According to a statement from Japan’s Ministry of Economy, Trade and Industry, the country’s leading companies participated in drafting the master plan. They include Mitsubishi Corp., Hitachi Ltd., JGC Corp., Taisei Corp., Chiyoda Corp. and Nippon Yusen K.K.
“For the public investment, there will be a mixture of public-private partnership, state budget and a loan scheme,” Hatta said.

To ensure the implementation of the master plan, the Indonesian government has established a special unit within the Committee for the Expansion and Accelera-tion of Indonesian Economic Growth (KP3EI), which reports directly to the coordinating economic minister.

Indonesia and Japan’s trade volume reached $32.5 billion during the January to July period, increasing by about 6 percent compared to $30.56 billion in the same period last year.
The two countries’ trade volume is expected to exceed last year’s amount of around $53 billion.

 

 

 

Indonesia infrastructure: good intentions, little progress
August 28, 2012 11:31 am by Ben Bland

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Ask any investor or ordinary Indonesian about their biggest gripe and it’s likely to revolve around infrastructure, whether it’s lack of power or poor transportation. As in many other developing nations, complex bureaucracy, nervousness about the involvement of the private sector and a lack of financing have prevented Indonesia from building the roads, bridges, airports and power stations it needs to maintain economic growth at the current trend of more than 6 per cent a year.

The president, Susilo Bambang Yudhoyono, has long acknowledged these issues and has drawn up an ambitious masterplan to transform the economy through better infrastructure.

As he repeated his pledge to tackle the problem once more at a major infrastructure conference in Jakarta on Tuesday, good intentions were plain for all to see – but signs of significant progress were few and far between.

Although many cabinet ministers and powerful provincial governors were in attendance, there were few foreign investors.

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But, among those who did turn up, there was a sense that a fast-growing country of Indonesia’s size, the fourth most populous country in the world and the 16th biggest economy, will present opportunities.

Hitachi, the Japanese industrial group, was one of many companies and individuals caught out the first time Jakarta tried to build a mass transport system. Its technology was meant to be used for a monorail but the project was abandoned in 2008 because of financial and political problems.

The half-finished pylons dotted throughout central Jakarta are a sad testament to the aborted project.

But Hitachi has not given up and hopes to bid for contracts on the proposed new Japanese-funded Jakarta Mass Rapid Transport network, according to Hiroyuki Yagi, the company’s chief representative in Indonesia.

“The business environment is getting better and better and the government is trying to improve the transparency in the bidding process and improve the land acquisition process,” said Yagi, who is also hoping to win big contracts in the water treatment and power sectors.

Another foreign investor, operating in the port sector, argues that it is unrealistic to expect rapid progress in a young democracy like Indonesia, where the bureaucracy is largely unreformed and there are big overlaps between central and local jurisdictions.

We’ve been waiting quite a while to move ahead on our project but you can’t get involved in the politics,” he said. “You just have to be patient.”

 

 

 


Govt to build 45 new airports by 2022

The Jakarta Post, Jakarta | Business |
Mon, June 11 2012


In order to support growth of the domestic aviation industry, the Transportation Ministry says that it is ready to build 45 new airports by 2022.

Director general of air transportation at the Transportation Ministry, Herry Bakti S. Gumay, says that the first phase of this plan will begin with the construction of 24 new airports by 2017.
Other construction will be spread out between then until 2022.

The new airports will anticipate the rise of air travel in coming years.
"This growth is being propelled by a massive increase in armada purchases by various companies, as well as by an expansion of flight routes. So it is not just an increase in passengers that is making the industry grow,” Herry said, as quoted by tribunnews.com.

Eight new airports have so far been built since the ministry’s project began in 2011: Muara Bungo Airport (Jambi), Tual Baru Airport (Maluku), Waisai Raja Ampat Airport (West Papua), Enggano Airport (Bengkulu), Sumarorong II Airport (Mamasa), Waghete Baru Airport (Papua), Kamanap Baru Airport (Papua) and Pekonserai Airport (Lampung Barat).
Each airport requires Rp 200 billion (US$21.2 million) to build.

These new airports, Herry says, will be useful in attracting tourists. He cited Waisai Raja Ampat Airport in West Papua, which he says allows foreigners to come into the area via airplane, instead of the usual method of entering using cruise boats.

Directorate General of Civil Aviation

List of Indonesian Airports

 

 

 

 

 

 

Skytrain and Elevated Toll Road Won't Solve Jakarta's Traffic Issues
Ulma Haryanto | July 30, 2012

Transportation projects that are not part of a wider integrated transportation development policy will not provide the long-term solutions needed to address Jakarta’s traffic woes, experts have warned.

“Ad hoc projects are just like drugs,” Azas Tigor Nainggolan, from the Jakarta Transportation Council (DTKJ), said at a recent public discussion. “They can only relieve our problems for a short period of time. They can be addictive, but in the long run they can turn into a handicap.”

 

 

He was referring to a proposal by state construction company Hutama Karya for a Rp 10 trillion ($1 billion) skytrain linking Jakarta to Bekasi, and an elevated toll road, whose cost has not yet been determined, running from Cibubur in East Jakarta to Senayan in South Jakarta.
The elevated toll road was proposed by state toll road operator Jasa Marga and is not part of a planned series of six inner-city toll roads. Running 23 kilometers and expected to be finished in two years, the proposed road would be expected to help alleviate traffic congestion on the existing toll road into the city by 20 to 30 percent.

But Azas is skeptical. “[More toll roads] is definitely not the answer as they only accommodate more private vehicles from outside Jakarta to get into the city,” he said.
According to a 2011 study by the DTKJ, there are approximately 2.9 million vehicles from neighboring Bogor, Depok, Tangerang and Bekasi entering Jakarta every day combined.

The proposed toll road project is currently being discussed with the State Enterprises Ministry.
“It’s still being studied,” the minister, Dahlan Iskan, said last month as quoted by Kompas daily. “If the government agrees, no tender will be necessary since it is an initiative of Jasa Marga.”

Wasted studies

Heru Wisnu Wibowo, an official from the ministry’s Directorate General of Railway Transportation, concedes that the country is no stranger to unplanned projects.
“Basically, anyone can propose a project,” he said. “As long as the regional governments and the related ministries agree to it and the funding is clear, then they can go ahead.”

Elisa Sutanudjaja, an analyst from the Rujak Center for Urban Studies, blames the government’s inconsistency as one of the reasons why despite a long list of transportation plans and studies for Jakarta, only a few have ever been carried out.
“Through the years we keep on seeing projects such as the monorail, elevated toll roads and others popping up but that’s not what the city really needs [based on previous assessments],” she said.
She adds that the millions of rupiah that the government has invested in studies, such as the 2004 Study on the Integrated Transportation Master Plan for Jabodetabek (Jakarta, Bogor, Depok, Tangerang and Bekasi), or Sitramp, have simply gone to waste. The Sitramp had to be revised in 2010 due to lack of progress.

“The monorail and the six inner-city toll roads, which were actually not included in the original plan, were included later as discussions were already under way,” Elisa said.
The Jakarta Transportation Office is considering shelving parts of the monorail project and using the abandoned pillars for an elevated busway lane.

Differing priorities
Besides the inconsistency in the city’s transportation programs, the revised Sitramp also cites the lack of coordination between regional governments and a supporting legal foundation.

“Not every government office has made public transportation their priority,” said Felix Iryantomo, from the Transportation Ministry’s Directorate General of Land Transportation.
“Excluding Jakarta, the surrounding regions have only allocated limited funding for transportation.”

Achmad Izzul Waro, a researcher from the Indonesia Transportation Society (MTI), echoed Felix’s statement, adding that it was hard to persuade regional officials to prioritize public transportation when there was no prospect of financial profit in it for them.
“This is found all across the country. Local governments prefer to accommodate the growth of private vehicle ownership, which means increased numbers of licenses being issued and a corresponding increase to the region’s revenue,” Achmad said. “Public transportation, on the other hand, is not self-sustaining and has to depend on public subsidies.”

 

 

 

 

Jakarta Traffic

 

 

 

 



All Aboard? The MRT Should Ease Traffic Woes ... One Day
Ronna Nirmala | May 05, 2012

Jakarta has long been notorious as one of the only cities of its size in the world without a rail-based mass rapid transit system.
Without one, the Japan International Corporation Agency warns, the city could experience total gridlock by 2020 as more and more commuters take to cars and motorcycles for want of a safe and reliable public transportation option.

JICA’s Study on Integrated Transportation Master Plan for Jabodetabek (Jakarta, Bogor, Depok, Tangerang and Bekasi), or Sitramp, notes that by then, the traffic problem will have caused Rp 65 trillion ($7.1 billion) in economic losses.
The capital administration, however, is trying to stave off that eventuality by finally taking the long-delayed plans for Jakarta’s own MRT off the drawing board and onto the streets.

Transport panacea?
First given serious consideration in the 1990s but lost in limbo after the Asian financial crisis, the project formally kicked off last month with the start of preparation work ahead of the actual construction.

The first phase of the project, a line from Lebak Bulus in South Jakarta to the Hotel Indonesia traffic circle in Central Jakarta, will run 15.2 kilometers and cost more than 150 billion yen ($1.87 billion) to build. A third of the budget will come from a loan from JICA, with the line expected to be in operation by November 2016.
A second phase, running 8.1 kilometers from the HI traffic circle to Kampung Bandan in North Jakarta, is expected to follow in 2018.

So will the MRT be a panacea for Jakarta’s growing traffic woes? MRT Jakarta, the city-owned body set up to carry out the project tender, is optimistic that it will.
“It’s going to cut commuting times significantly,” says Manpalagupta Sitorus, the MRT Jakarta spokesman.
“For instance, driving from Lebak Bulus to HI currently can take one to two hours in rush-hour traffic, but by MRT it will take just 30 minutes. Our target is to have a total travel time from Lebak Bulus to Kampung Bandan of about 51 minutes.”

Lessons from the busway
Like the first TransJakarta busway corridor, the MRT’s north-south line will cut through the city’s key business district along Jalan Sudirman and Jalan Thamrin.
But unlike the busway, the MRT will not take up an entire lane of existing roadway. Instead, the line will run on a combination of elevated and underground tracks in order to avoid disrupting traffic.

The city is also taking a lesson learned from the sometimes haphazard layout of the busway network, by ensuring that key MRT stations serve as transit hubs where passengers can easily move to a different mode of transportation such as the busway or commuter trains.
“You will really see the benefits once the MRT connects with other mass transit systems, such as the busway, regular buses and the commuter train lines,” Manpalagupta says.
“We’ll have fewer private vehicles on the road, which will reduce not only the congestion but also the air pollution levels.”
He adds that the fully completed north-south route will be designed to carry more than half a million passengers daily.

“On a single trip, the MRT will carry a total of 1,500 commuters,” he says.
“The target is for the Lebak Bulus-HI line to carry 412,700 passengers daily, contingent on all the stations being well-connected to office buildings, commercial areas and other public facilities.”

Once the Kampung Bandan phase is finished, officials expect total daily passenger trips of 629,900.
The most important aspect of the whole project, Manpalagupta says, is that it is part of the city’s wider transit-oriented development plans, in which future office, commercial and residential developments will be designed with the needs of commuters taking a foremost place in planning.

Branching out
The MRT will also get two east-west lines, although the details of that project are still being ironed out. The proposed routes will run parallel from Cikarang in Bekasi to Balaraja in Tangerang, cutting across the north-south line in Central Jakarta and in South Jakarta.

Still in the pre-feasibility stage, that project could take until 2027 to come to fruition.
The focus for now, says Manpalagupta, is to get the north-south line up and running. The tender has already been opened and JICA has approved the 10 contractors short-listed for the project by MRT Jakarta.
They are slated to offer prices in June or July, after which the winner will be chosen and the construction can finally begin sometime this year.

Elevated, integrated,interconnected: Is this where transportation in Jakarta is headed? I

 

 

 


Commuter Rail, MRT, Shuttles, Monorail and Bigger Busway for Jakarta by 2030?
Ulma Haryanto | May 05, 2012

Imagine dropping your child off at a bus stop on your way to work in the morning, instead of driving all the way to school.
Then imagine leaving your car at a parking facility where you can hop on a commuter train into the city center. Once you arrive, you have time to grab a coffee before a quick stroll over to the subway platform and a 10-minute ride to your office building — all before 8 a.m.

It may sound far-fetched, but this is how city planners envision Jakarta’s transportation system in 20 years.
The mass rapid transit rail line may be the star of the entire integrated show, but planners note that Jakarta first needs an efficient way to bring commuters into the city to use it. That’s where the commuter rail line, or KRL, comes in.

The Greater Jakarta transportation master plan for 2030, drawn up by the Japan International Cooperation Agency and the Coordinating Ministry for the Economy, lists at least 27 KRL projects, including the construction of an outer ring railway running 100 kilometers around Jakarta’s satellite cities and costing Rp 20 trillion ($2.18 billion).
In addition, existing railway lines will be “double-double tracked,” or expanded to four parallel lines, while 160 extra train cars will be imported.

“We also plan to revitalize all stations, including by expanding platforms to accommodate at least two additional cars,” says Mateta Rizalulhaq, a spokesman for railway operator Kereta Api Indonesia.
The short-term aim is to triple daily passenger numbers from the current 400,000 to 1.2 million by next year.
Once inside the city center, commuters will be able to take either the MRT or the bus rapid transit network, popularly known as the busway.

The busway network now stretches 135 kilometers but will be expanded to 435 kilometers under the master plan, making it the longest in Asia. The Jakarta Transportation Office plans to add 178 buses by 2013 while the central government will build more refueling stations — a key requirement, says the Presidential Working Unit for Development, Supervision and Oversight (UKP4), which is tasked with overseeing the implementation of the master plan.

“Fifty percent of the time that buses are on the road is spent going to and from refueling stations, which is why it’s been hard to reduce headway times,” says Farchad Mahfud, from the UKP4.
For those still intent on driving into the city, the master plan offers park-and-ride facilities at some bus stops and train stations. Three are already in operation, with 20 more to be built by 2030, and the city transportation office is calling for private operators to get involved.

A final link in the envisioned integrated transportation network has been on and off the table for years: the monorail. Two lines were initially proposed. Construction on the green line was halted for lack of investment, while the blue line was scrapped and its proposed route taken over by an elevated road.
However, the master plan still lists the 14.3-kilometer green line and 7 kilometers of extensions.

Elevated, integrated,interconnected: Is this where transportation in Jakarta is headed? In this special five-day series, we look at government plans and challenges ahead. Check out the rest of the series below.

 

 

 

 

 

How Real Is the Latest Plan To Unsnarl Jakarta’s Roads?
Ulma Haryanto | May 03, 2012

The current state of Jakarta’s transportation sector can hardly be blamed on the lack of plans. Although there have been a litany of them, only a handful have ever left the drawing board.
The Bus Rapid Transit network, popularly known as the busway, was launched in 2004, while work on the rail-based mass rapid transit system is set to begin this year. Both modes, however, were the subject of public debate long beforehand.

Separate studies by the World Bank and the Japan International Cooperation Agency had recommended a BRT for Jakarta since the 1980s. The MRT was proposed even earlier, in 1974, by Germany’s Arge Intertraffic Lezt Consult. Other studies have since have echoed those recommendations.
That it has taken so long to act on them can be linked to the lack of collaboration between the regional administrations responsible for different parts of the capital’s urban sprawl, said Mustapha Benmaamar, a senior transport specialist with the World Bank.
“I think part of it is [caused by] the fragmentation of the institutions,” he said.

To manage transportation in Greater Jakarta effectively will take strong leadership to overcome the different interests from government institutions, he said. “Urban transport is probably the most complex topic area because it involves a lot of actors. … If you have [a] body that really has the authority to [enforce the plans] I think that would help.
“Because [the plans are] not a done deal, people will question it. I don’t think you can get a consensus from everybody, and then time passes then [the plans] are outdated and people come with other ideas and so forth.”

Farchad Mahfud, from the Presidential Unit for Development, Supervision and Oversight (UKP4), echoed the point.
“Right now everyone is going their own way, including the planners. They march to their own beat,” Farchad said. “In field the results can be redundant or contradictory and as we know they all contribute to the congestion.”

Ill-fated attempt
In 2000, another study on transportation in Jakarta was carried out, under the auspices of JICA and the National Development Planning Agency (Bappenas).
The fact that Bappenas, a national body, was involved showed that the central government had started to view transportation in Jakarta as a national problem.

The transportation master plan was finished in 2004. Called the Study on Integrated Transportation Master Plan for Jabodetabek (Jakarta, Bogor, Depok, Tangerang and Bekasi), or Sitramp, it was the first time that solutions to the capital’s transportation problems factored into the urbanization beyond Jakarta’s administrative borders.
The study recommended 172 transportation projects, including the expansion of the busway, MRT, improvements in rail transport and road work.
But as evaluations of the plan in 2010 showed, only 21 percent of the projects were on schedule, while the rest were not making any progress.

Those delays have since been blamed on a lack of legal basis for the master plan, which requires a presidential decree for certain programs to get off the ground, and the difficulty in land acquisition, particularly for toll roads.
The breakneck increase in private vehicle ownership was also a factor, says Hirohisa Kawaguchi, a transportation adviser with JICA.
“The transition in traffic conditions in the Jakarta metropolitan area was so rapid, [including] the drastic increase of motorcycles, which also affects public transport,” he said.

Elsewhere in the world, he pointed out, transportation master plans have to be updated every 10 years to adapt to changes in socio-economic conditions.

The new plan
So another project to update and revise the Sitramp was launched, this time getting special attention from the president, who assigned the UKP4 to the project.

The unit acts as the president’s “hands and eyes” in terms of coordinating and monitoring priority development projects. It works together with Vice President Boediono and reports directly to the president. The UKP4 has the authority to request information and receive technical support from ministries, other government bodies and regional administrations and institutions.
Boediono provided a list of 17 steps, which was later updated to 20, highlighting important transportation projects to help ease congestion.

By September 2011 the revision was complete and rolled out as the Jabodetabek Urban Transportation Policy Integration, essentially the Greater Jakarta transportation master plan until 2030.
To coordinate between the various institutions and regional administrations, Jutpi calls for the establishment of a Jabodetabek Transportation Authority.
“The physical investment in urban transport is probably the easiest part,” Benmaamar said. “The hardest part is the soft side: it’s the regulation, the organization, how to get all of these working together. It’s the coordination.”

Jakarta transport by 2030
If all goes according to this plan — the most comprehensive and costliest by far — then by 2030 about Rp 400 trillion ($44.4 billion) will have been spent on 119 projects to stave off the total gridlock once predicted and help improve traffic flow, albeit by just a bit.

Included in the plan is a Rp 55.7 trillion east-west line of the MRT connecting Tangerang to Bekasi, the addition of 1,334 kilometers of new roadway for Rp 137 trillion, a Rp 2.9 trillion expansion of the busway — making it the longest BRT system in Asia at 435 kilometers — and a rail line from the airport to Manggarai Station in South Jakarta, at a cost of Rp 5 trillion.
Most importantly, says Keigo Hamada, a former urban transportation policy adviser to the coordinating ministry for economic affairs, is the integration of policies and programs between the regions.

“Integration will bring reliable, convenient, comfortable and safe service to users,” he said. “And good public transportation service will make private vehicle commuters shift to public transportation modes and alleviate traffic congestion and environmental [pressure] such as air pollution and traffic noise.”
Hamada said the ultimate goal for the master plan was for people to “enjoy better urban life in metropolitan area.”

Considering the huge amount of investment needed for improving greater Jakarta’s transportation issues, Jutpi needs the JTA as a super-body that will oversee its implementation.
This, the stakeholders contend, is what will make the difference this time between success and failure.
“It’s a fact that coordinating multi-sector projects is a weak point of the government,” said Tulus Hutagalung, the Jutpi project director.
“It’s also one of the reasons why our previous integrated transportation master plans have never worked.”

Elevated, integrated,interconnected: Is this where transportation in Jakarta is headed?

 

 

 

Jakarta Traffic

 

 

 

 



All Aboard? The MRT Should Ease Traffic Woes ... One Day
Ronna Nirmala | May 05, 2012

Jakarta has long been notorious as one of the only cities of its size in the world without a rail-based mass rapid transit system.
Without one, the Japan International Corporation Agency warns, the city could experience total gridlock by 2020 as more and more commuters take to cars and motorcycles for want of a safe and reliable public transportation option.

JICA’s Study on Integrated Transportation Master Plan for Jabodetabek (Jakarta, Bogor, Depok, Tangerang and Bekasi), or Sitramp, notes that by then, the traffic problem will have caused Rp 65 trillion ($7.1 billion) in economic losses.
The capital administration, however, is trying to stave off that eventuality by finally taking the long-delayed plans for Jakarta’s own MRT off the drawing board and onto the streets.

Transport panacea?
First given serious consideration in the 1990s but lost in limbo after the Asian financial crisis, the project formally kicked off last month with the start of preparation work ahead of the actual construction.

The first phase of the project, a line from Lebak Bulus in South Jakarta to the Hotel Indonesia traffic circle in Central Jakarta, will run 15.2 kilometers and cost more than 150 billion yen ($1.87 billion) to build. A third of the budget will come from a loan from JICA, with the line expected to be in operation by November 2016.
A second phase, running 8.1 kilometers from the HI traffic circle to Kampung Bandan in North Jakarta, is expected to follow in 2018.

So will the MRT be a panacea for Jakarta’s growing traffic woes? MRT Jakarta, the city-owned body set up to carry out the project tender, is optimistic that it will.
“It’s going to cut commuting times significantly,” says Manpalagupta Sitorus, the MRT Jakarta spokesman.
“For instance, driving from Lebak Bulus to HI currently can take one to two hours in rush-hour traffic, but by MRT it will take just 30 minutes. Our target is to have a total travel time from Lebak Bulus to Kampung Bandan of about 51 minutes.”

Lessons from the busway
Like the first TransJakarta busway corridor, the MRT’s north-south line will cut through the city’s key business district along Jalan Sudirman and Jalan Thamrin.
But unlike the busway, the MRT will not take up an entire lane of existing roadway. Instead, the line will run on a combination of elevated and underground tracks in order to avoid disrupting traffic.

The city is also taking a lesson learned from the sometimes haphazard layout of the busway network, by ensuring that key MRT stations serve as transit hubs where passengers can easily move to a different mode of transportation such as the busway or commuter trains.
“You will really see the benefits once the MRT connects with other mass transit systems, such as the busway, regular buses and the commuter train lines,” Manpalagupta says.
“We’ll have fewer private vehicles on the road, which will reduce not only the congestion but also the air pollution levels.”
He adds that the fully completed north-south route will be designed to carry more than half a million passengers daily.

“On a single trip, the MRT will carry a total of 1,500 commuters,” he says.
“The target is for the Lebak Bulus-HI line to carry 412,700 passengers daily, contingent on all the stations being well-connected to office buildings, commercial areas and other public facilities.”

Once the Kampung Bandan phase is finished, officials expect total daily passenger trips of 629,900.
The most important aspect of the whole project, Manpalagupta says, is that it is part of the city’s wider transit-oriented development plans, in which future office, commercial and residential developments will be designed with the needs of commuters taking a foremost place in planning.

Branching out
The MRT will also get two east-west lines, although the details of that project are still being ironed out. The proposed routes will run parallel from Cikarang in Bekasi to Balaraja in Tangerang, cutting across the north-south line in Central Jakarta and in South Jakarta.

Still in the pre-feasibility stage, that project could take until 2027 to come to fruition.
The focus for now, says Manpalagupta, is to get the north-south line up and running. The tender has already been opened and JICA has approved the 10 contractors short-listed for the project by MRT Jakarta.
They are slated to offer prices in June or July, after which the winner will be chosen and the construction can finally begin sometime this year.

Elevated, integrated,interconnected: Is this where transportation in Jakarta is headed? I

 

 


Commuter Rail, MRT, Shuttles, Monorail and Bigger Busway for Jakarta by 2030?
Ulma Haryanto | May 05, 2012

Imagine dropping your child off at a bus stop on your way to work in the morning, instead of driving all the way to school.
Then imagine leaving your car at a parking facility where you can hop on a commuter train into the city center. Once you arrive, you have time to grab a coffee before a quick stroll over to the subway platform and a 10-minute ride to your office building — all before 8 a.m.

It may sound far-fetched, but this is how city planners envision Jakarta’s transportation system in 20 years.
The mass rapid transit rail line may be the star of the entire integrated show, but planners note that Jakarta first needs an efficient way to bring commuters into the city to use it. That’s where the commuter rail line, or KRL, comes in.

The Greater Jakarta transportation master plan for 2030, drawn up by the Japan International Cooperation Agency and the Coordinating Ministry for the Economy, lists at least 27 KRL projects, including the construction of an outer ring railway running 100 kilometers around Jakarta’s satellite cities and costing Rp 20 trillion ($2.18 billion).
In addition, existing railway lines will be “double-double tracked,” or expanded to four parallel lines, while 160 extra train cars will be imported.

“We also plan to revitalize all stations, including by expanding platforms to accommodate at least two additional cars,” says Mateta Rizalulhaq, a spokesman for railway operator Kereta Api Indonesia.
The short-term aim is to triple daily passenger numbers from the current 400,000 to 1.2 million by next year.
Once inside the city center, commuters will be able to take either the MRT or the bus rapid transit network, popularly known as the busway.

The busway network now stretches 135 kilometers but will be expanded to 435 kilometers under the master plan, making it the longest in Asia. The Jakarta Transportation Office plans to add 178 buses by 2013 while the central government will build more refueling stations — a key requirement, says the Presidential Working Unit for Development, Supervision and Oversight (UKP4), which is tasked with overseeing the implementation of the master plan.

“Fifty percent of the time that buses are on the road is spent going to and from refueling stations, which is why it’s been hard to reduce headway times,” says Farchad Mahfud, from the UKP4.
For those still intent on driving into the city, the master plan offers park-and-ride facilities at some bus stops and train stations. Three are already in operation, with 20 more to be built by 2030, and the city transportation office is calling for private operators to get involved.

A final link in the envisioned integrated transportation network has been on and off the table for years: the monorail. Two lines were initially proposed. Construction on the green line was halted for lack of investment, while the blue line was scrapped and its proposed route taken over by an elevated road.
However, the master plan still lists the 14.3-kilometer green line and 7 kilometers of extensions.

Elevated, integrated,interconnected: Is this where transportation in Jakarta is headed? In this special five-day series, we look at government plans and challenges ahead. Check out the rest of the series below.

 

How Real Is the Latest Plan To Unsnarl Jakarta’s Roads?
Ulma Haryanto | May 03, 2012

The current state of Jakarta’s transportation sector can hardly be blamed on the lack of plans. Although there have been a litany of them, only a handful have ever left the drawing board.
The Bus Rapid Transit network, popularly known as the busway, was launched in 2004, while work on the rail-based mass rapid transit system is set to begin this year. Both modes, however, were the subject of public debate long beforehand.

Separate studies by the World Bank and the Japan International Cooperation Agency had recommended a BRT for Jakarta since the 1980s. The MRT was proposed even earlier, in 1974, by Germany’s Arge Intertraffic Lezt Consult. Other studies have since have echoed those recommendations.
That it has taken so long to act on them can be linked to the lack of collaboration between the regional administrations responsible for different parts of the capital’s urban sprawl, said Mustapha Benmaamar, a senior transport specialist with the World Bank.
“I think part of it is [caused by] the fragmentation of the institutions,” he said.

To manage transportation in Greater Jakarta effectively will take strong leadership to overcome the different interests from government institutions, he said. “Urban transport is probably the most complex topic area because it involves a lot of actors. … If you have [a] body that really has the authority to [enforce the plans] I think that would help.
“Because [the plans are] not a done deal, people will question it. I don’t think you can get a consensus from everybody, and then time passes then [the plans] are outdated and people come with other ideas and so forth.”

Farchad Mahfud, from the Presidential Unit for Development, Supervision and Oversight (UKP4), echoed the point.
“Right now everyone is going their own way, including the planners. They march to their own beat,” Farchad said. “In field the results can be redundant or contradictory and as we know they all contribute to the congestion.”

Ill-fated attempt
In 2000, another study on transportation in Jakarta was carried out, under the auspices of JICA and the National Development Planning Agency (Bappenas).
The fact that Bappenas, a national body, was involved showed that the central government had started to view transportation in Jakarta as a national problem.

The transportation master plan was finished in 2004. Called the Study on Integrated Transportation Master Plan for Jabodetabek (Jakarta, Bogor, Depok, Tangerang and Bekasi), or Sitramp, it was the first time that solutions to the capital’s transportation problems factored into the urbanization beyond Jakarta’s administrative borders.
The study recommended 172 transportation projects, including the expansion of the busway, MRT, improvements in rail transport and road work.
But as evaluations of the plan in 2010 showed, only 21 percent of the projects were on schedule, while the rest were not making any progress.

Those delays have since been blamed on a lack of legal basis for the master plan, which requires a presidential decree for certain programs to get off the ground, and the difficulty in land acquisition, particularly for toll roads.
The breakneck increase in private vehicle ownership was also a factor, says Hirohisa Kawaguchi, a transportation adviser with JICA.
“The transition in traffic conditions in the Jakarta metropolitan area was so rapid, [including] the drastic increase of motorcycles, which also affects public transport,” he said.

Elsewhere in the world, he pointed out, transportation master plans have to be updated every 10 years to adapt to changes in socio-economic conditions.

The new plan
So another project to update and revise the Sitramp was launched, this time getting special attention from the president, who assigned the UKP4 to the project.

The unit acts as the president’s “hands and eyes” in terms of coordinating and monitoring priority development projects. It works together with Vice President Boediono and reports directly to the president. The UKP4 has the authority to request information and receive technical support from ministries, other government bodies and regional administrations and institutions.
Boediono provided a list of 17 steps, which was later updated to 20, highlighting important transportation projects to help ease congestion.

By September 2011 the revision was complete and rolled out as the Jabodetabek Urban Transportation Policy Integration, essentially the Greater Jakarta transportation master plan until 2030.
To coordinate between the various institutions and regional administrations, Jutpi calls for the establishment of a Jabodetabek Transportation Authority.
“The physical investment in urban transport is probably the easiest part,” Benmaamar said. “The hardest part is the soft side: it’s the regulation, the organization, how to get all of these working together. It’s the coordination.”

Jakarta transport by 2030
If all goes according to this plan — the most comprehensive and costliest by far — then by 2030 about Rp 400 trillion ($44.4 billion) will have been spent on 119 projects to stave off the total gridlock once predicted and help improve traffic flow, albeit by just a bit.

Included in the plan is a Rp 55.7 trillion east-west line of the MRT connecting Tangerang to Bekasi, the addition of 1,334 kilometers of new roadway for Rp 137 trillion, a Rp 2.9 trillion expansion of the busway — making it the longest BRT system in Asia at 435 kilometers — and a rail line from the airport to Manggarai Station in South Jakarta, at a cost of Rp 5 trillion.
Most importantly, says Keigo Hamada, a former urban transportation policy adviser to the coordinating ministry for economic affairs, is the integration of policies and programs between the regions.

“Integration will bring reliable, convenient, comfortable and safe service to users,” he said. “And good public transportation service will make private vehicle commuters shift to public transportation modes and alleviate traffic congestion and environmental [pressure] such as air pollution and traffic noise.”
Hamada said the ultimate goal for the master plan was for people to “enjoy better urban life in metropolitan area.”

Considering the huge amount of investment needed for improving greater Jakarta’s transportation issues, Jutpi needs the JTA as a super-body that will oversee its implementation.
This, the stakeholders contend, is what will make the difference this time between success and failure.
“It’s a fact that coordinating multi-sector projects is a weak point of the government,” said Tulus Hutagalung, the Jutpi project director.
“It’s also one of the reasons why our previous integrated transportation master plans have never worked.”

Elevated, integrated,interconnected: Is this where transportation in Jakarta is headed?

 

 

 

 

 


Flood Mitigation Project in Jakarta gets started
March 2012 - The DKI Jakarta provincial government has announced the official launch of the Jakarta Urgent Mitigation Flood Project, also known as the Jakarta Urgent Dredging Initiative, which will help improve the operation and maintenance of Jakarta's flood management system. The announcement was made in Jakarta on 30 January 2012, following award of funds from the World Bank.

Specifically the project will rehabilitate sections of a number of major waterways in the city. About 67.5 km of 11 key channel sections and 65 hectares of four retention basins will be dredged to help restore their operating capacities. About 42 km of embankments will also be repaired and where necessary, mechanical equipment such as pumps and gates will be replaced or repaired. Approximately 3.4 million cubic meters of sediment and 95,000 cubic meters of solid waste are expected to be dredged out of the waterways and basins.


Involuntary resettlement is expected at six out of the 15 project sites. Any unavoidable involuntary resettlement will adhere to a Resettlement Policy Framework prepared by the DKI Jakarta provincial government which is consistent with international best practices. People displaced by the project will be given access to adequate housing as stipulated by regulations.

"With the availability of funds, we now have progress to rehabilitate the Jakarta's waterways. The various stakeholders involved in Jakarta's flood management system must now start work to expedite implementation of the project," said Jakarta Governor, Fauzi Bowo.

Funding for the five year project was approved by the World Bank Board of Executive Directors on 17 January 2012. The project will be financed by a loan worth US$139.64 million, while the Indonesian central government and DKI Jakarta provincial government will contribute an additional US$49.71 million.

"Now that the funds are secured, the World Bank is looking forward to take the next step in supporting the Jakarta Government to mitigate flood risks in the Indonesia capital," said Stefan Koeberle, World Bank Country Director for Indonesia. He added, "The project will help improve Jakarta's flood management system, in line with international standards for environmental and social safety."

In addition to rehabilitating waterways, as part of the project the World Bank will also assist in providing technical assistance for project management, social safeguards and capacity building. For more information, visit the Projects website.

Contact for the project: In Jakarta: Randy Salim: rsalim1@worldbank.org; In Washington DC: Mohamad Al-Arief at malarief@worldbank.org.

Source: World Bank

 

 

 

 


Great Investment Opportunities in Indonesia
Jimmy Hitipeuw | Minggu, 12 Juni 2011 | 23:40 WIB


JAKARTA, KOMPAS.com - It is a great time for investors to take advantage of great investment opportunities in Indonesia following its enticing financial climate. Located at the crossroad of the Asian and Australian continents and between the Indian and the Pacific Oceans, Indonesia has many advantages of investment opportunities.
Endowed with fertile soil and abundant natural resources, the country is offering investors wide opportunities in many sectors. Therefore, director of Quvat Management in Singapore Thomas T. Lembong has called on the government, business players and investors to optimally utilize the wide investment opportunities in Indonesia.

On the sidelines of World Economic Forum on East Asia (WEF-EA), Lembong said China and India have a great interest in investment in Asia, including Indonesia, and this trend should be used as best as possible.
"Asia is on the rise. Indonesia at present is a ’darling’ investor. The investors are aware that Indonesia has a very big potential," Lembong said.
He said as coal, palm oil and consumer goods are now lucrative commodities in Indonesia they need to offer them to investors. But Lembong cautioned Indonesia not always has the attention of investors.
"Therefore we have to be realistic because the market and investors always have a trend. How much investment can be sustained, will depend on how we utilize it optimally," said the recipient of World Economic Forum Young Global Leader.

He said that in terms of investment supporting facilities and infrastructure, Indonesia was not inferior to those of other developing countries as China and India, but compared with the developed countries, Indonesia was still lagging far behind.
"As learned from international investors, China and India are not the countries without problems because in the developing countries there facing many obstacles and difficulties, but Indonesia actually has many good facilities," he said.
For that, Lembong said all parties including the government, business players, and investors need to be more patient because the important thing was not quantity but quality of investment.
"Ideally, all parties should be patient, and not be in a hurry so that the funds do not go to unnecessary projects," he said, adding that the key to investment success in Indonesia was cooperation of all parties namely of the government, business players, and investors.

According to Lembong, Indonesia has very big investment opportunities as a developing country. Meanwhile, presidential special staff for foreign relations Teuku Faizasyah said on the sidelines of the World Economic Forum said on Sunday that Singapore wished to make investment in development projects in Sumatra, especially in Batam.
"It was said earlier that Singapore can make investments in Sumatra," Faizasya said, explaining that Singapore’s interest in investment in Sumatra’s projects was disclosed when President Susilo Bambang Yudhoyono received a courtesy call of Singapore’s Prime Minister Lee Hsien Loong on the sidelines of the WEF-EA.

Faizasyah said Singapore wanted explanations about development schemes in Indonesia, especially after the Indonesian government launched the Master Plan of Acceleration and Expansion of Indonesian Economic Development (MP3EI).
"Singapore wants Indonesia to explain it in detail the areas where the country can make an investment," Faizasyah said.
According to him, President Yudhoyono and Lee Hsien Loong agreed to optimize again the cooperation agreement on Singapore-Johor-Riau (Sijori).

He said the partnership concept would be harmonized with the MP3EI which has been launched by Indonesia. In the WEF-EA, Indonesia also offered investment in the infrastructure sector through a public private partnership (PPP) scheme.
"The ability of the government’s fiscal is in a small balance and therefore we offer the investment in infrastructure sector to both foreign and private parties," Finance Minister Agus Martowardojo said.

The forum among others discussed the failure in the monetary sector as a result of the impact of economic turmoil in Asia. Present as the speakers at the meeting were Michael Buchanan, Chief Asia-Pacific Economist at Goldman Sach; Stuart T Gulliver, Group Chief Executive HSBC Holding UK; Omar Lodhi, Chief Executive Officer Abraaj Capital Asia Singapore; and Bank Indonesia Deputy Governor Muliaman D Hadad.

Agus Martowardojo on the occasion said the provision of infrastructure was a challenge that Indonesia has to face in the next five years. The finance minister said around Rp1,400 trillion were needed in the next five years for infrastructure development in Indonesia.
But he added that the government was only able to provide around 20 to 30 percent of the funds and the rest should be obtained with the cooperation of private parties through a public private partnership schemes.
"In the past seven years such a scheme did not give a significant result but expected there will soon be a pilot infrastructure project," Agus said.

He said an infrastructure pilot project with the PPP scheme in East Java would soon be realized and it was expected to be followed by other projects. Agus admitted that although a capital flight could occur any time, Indonesia would not implement a capital control policy.
"I am optimistic that there will be no capital control," the finance minister said, adding that fiscal and monetary conditions in the real sector were good and could support capital inflows.

Investment opportunities in Indonesia help both residents and investors because the country has over 200 million residents who are actively competing in joining the work force.

 


7 February 2011

Indonesia's economy grows at fastest rate since 2004

Car sales, seen as an indicator of consumer demand, were up in 2010 Indonesia's economy grew at its fastest annual rate for six years in 2010, driven by consumer spending and investment.

Gross domestic product was 6.1% higher in 2010 than in the previous year, the statistical office said.
Growth was given an unexpected boost in the final three months of the year, figures showed.

Analysts said the speed of growth may lift inflation at a time when high food prices were already hurting consumers.
Last week the central bank raised interest rates for the first time in two years in an attempt to slow price growth.
Indonesia's main cost of borrowing rose a quarter of a percentage point to 6.75%.

Higher rates?
Analysts said that the better-than-expected GDP figures may increase calls for interest rates to rise further in coming months, not least because they also expect economic growth to continue.

Helping drive growth will be steady consumer spending and companies investing in their businesses to fund expansion.
"Growth in first quarter this year will be positive amid soaring inflation as many companies will spend capital for investment purposes," said Eric Sugandi, an economist at Standard Chartered Bank.

 

 

 

 


Google takes on Asia's internet might

12 June 2011
Business reporter, BBC News, Singapore

In Asia, accessing the internet through mobile phones has lead to an explosion of internet users Daniel Alegre, Google's President for Japan and Asia-Pacific, insists that his company is "locally relevant", as it tries to appeal to the different tastes and internet capabilities of the hugely diverse Asian region.
"We don't see ourselves as a Silicon Valley company, we see ourselves as a Japanese company in Japan, a Singaporean company in Singapore," he says.
It signals a shift in the centre of gravity of cyberspace, as Asia becomes the biggest and fastest growing region for the internet.

Led by China, more and more people in the region are coming online each day.
Even in countries like Indonesia, Vietnam and the Philippines where the infrastructure to access the internet from home is lacking, the mobile phone explosion is facilitating a connection to the online world.

Globally, by 2014 the mobile phone will become the principal means of accessing the internet, according to Morgan Stanley.
And Google is betting big on mobile.
Its Android operating system, which is used by LG and Samsung's latest smartphone devices, is gaining popularity fast in these regions, as it hooks people into the Google universe.
"If I'm a Gmail [Google's e-mail service] user, I'm now likely to look at an Android device." says Shivanu Shukla, associate director of information and communication technology at Frost and Sullivan.
BDA China
"The intent is to keep stickiness. If I use 10 services from Google, it is unlikely I will switch [to another provider]," he said.

Ethics versus Business
Google's focus in Asia, along with providing applications and advertising on its search engine, is targeting export-based companies that want access to the rest of the world.
This is something Asian companies are keen to do, especially in China.
"Google benefits from Chinese companies seeking to advertise overseas," says Duncan Clarke, chairman of BDA China, a Beijing-based investment consultancy.

It's one of the services that have allowed Google to maintain its presence in the world's largest internet market, unlike its search site, which has pitted it against the Chinese government over censorship issues.
In 2011, China will have twice as many internet users as the US, according to data collected by BDA China.

Internet users in China (millions)
Source: BDA China

 

 

 

2009 - 384

2010 - 470

2011 - 550

 

 

 

2012 - 624

2013 - 700

2014 - 771

 

 

 

This is why Google is focusing on services that are less sensitive for the time being, such as products that are business-to-business, mobile and export-based.
"They are basically looking to find sustainable businesses that don't put them in ethical conflicts," says Mr Clark.
Google has on occasions taken a stand against the government that there should be open access to information.
“ We thrive on that competition because it forces us to be better and it forces them to be better, and in the end the internet benefits” - Daniel Alegre, President Asia Pacific and Japan, Google

But that ethical stance has been costly for Google and good for mainland China competitor Baidu.
"Baidu has gained from the trouble that Google encountered in China," says Mr Clark.
Although statistics vary, Baidu has about 76% share of the search market, according to figures from research firm Analysys International. Google comes in at a distant second.

Asian competitors
China is not the only place in Asia where Google faces tough competition.
Google enjoys supremacy in some countries such as Vietnam, New Zealand and India, where there was no established search player. But in more sophisticated internet markets, such as Japan and South Korea, Google does not dominate.

In Japan, Yahoo Japan, largely owned by web and telecom giant Softbank, fields the majority of web queries, according to comScore.
"Yahoo was early to market and has the backing of Softbank, which is a large broadband and mobile provider, so it has an advantage," says Mr Clarke.
Google's problems in China have benefited its local competitors In South Korea, Google fares even worse.
In March 2011, it had just 2% of the standard internet search market, according to Seoul-based research house, Metrix Corp. The market leader there is Naver, owned by internet content provider NHN.

In Korea, the telecoms sector is vertically integrated - that is, operators are also content and device providers.
And that works against Google in South Korea and Japan, where consumers are focused on domestic content.
"There are barriers to entry, both structurally and language-wise. It's difficult for foreign companies to penetrate without a local partner," says Mr Clark.

But Google's Mr Alegre doesn't sound worried.
"Here in Asia... we have very strong competitors. And we thrive on that competition, because it forces us to be better and it forces them to be better and in the end, the internet benefits," he says.
The confidence is understandable. Given its global dominance and the new users that the Android operating system is drawing in, Google is still well positioned to challenge the Asian incumbents.

 

 

 

 

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This website has been created with intensive use of internet research, linking information as available
on the internet, and various publications and books. I have attempted to give due credit to the sources.
My apologies for the ones I may have missed. I will make corrections as required
.
Editor