Infrastructure Investment in Indonesia

Sally Wilson, Felix Kin Peng Hui, Colin Duffield

Description

Infrastructure Investment in Indonesia: A Focus on Ports presents an important and original collation of current material investigating the efficient facilitation of major infrastructure projects in Indonesia and Australia, with an emphasis on infrastructure investment and a focus on port planning and development.
This interdisciplinary collection—spanning the disciplines of engineering, law and planning—draws helpfully on a range of practical and theoretical perspectives. It is the collaborative effort of leading experts in the fields of infrastructure project initiation and financing, and is based on international research conducted by the University of Melbourne, Universitas Indonesia and Universitas Gadjah Mada.
The volume opens with a macroscopic perspective, outlining the broader economic situations confronting Indonesia and Australia, before adopting a more microscopic perspective to closely examine the issues surrounding major infrastructure investment in both countries. Detailed case studies are provided, key challenges are identified, and evidence-based solutions are offered. These solutions respond to such topical issues as how to overcome delays in infrastructure project initiation; how to enhance project decision-making for the selection and evaluation of projects; how to improve overall efficiency in the arrangement of project finance and governance; and how to increase the return provided by investment in infrastructure. Special focus is given to proposed improvements to the portal cities of Indonesia in the areas of major infrastructure project governance, policies, engagement, operation and processes.
By rigorously investigating the economic, transport, finance and policy aspects of infrastructure investment, this book will be a valuable resource for policy makers and government officials in Indonesia and Australia, infrastructure investment organisations, and companies involved in exporting services between Indonesia and Australia. This book will also be of interest to researchers and students of infrastructure planning and financing, setting a solid foundation for subsequent investigations of financing options for large-scale infrastructure developments.
 

Sujets

• Finance

Informations

• Publié par: Open Book Publishers
• Date de parution: 12 novembre 2019
• Nombre de lectures: 0
• EAN13: 9781783748242
• Langue: English
• Poids de l'ouvrage: 4 Mo

Extrait

Infrastructure Investment in Indonesia
Infrastructure Investment in Indonesia
A Focus on Ports
Colin Duffield, Felix Kin Peng Hui and Sally Wilson
https://www.openbookpublishers.com
© 2019 Colin Duffield, Felix Kin Peng Hui and Sally Wilson.

This work is licensed under a Creative Commons Attribution 4.0 International license (CC BY 4.0). This license allows you to share, copy, distribute and transmit the text; to adapt the text and to make commercial use of the text providing attribution is made to the authors (but not in any way that suggests that they endorse you or your use of the work). Attribution should include the following information:
Colin Duffield, Felix Kin Peng Hui and Sally Wilson, Infrastructure Investment in Indonesia: A Focus on Ports. Cambridge, UK: Open Book Publishers, 2019, https://doi.org/10.11647/OBP.0189
In order to access detailed and updated information on the license, please visit, https://doi.org/10.11647/OBP.0189#copyright
Further details about CC BY licenses are available at, https://creativecommons.org/licenses/by/4.0/
All external links were active at the time of publication unless otherwise stated and have been archived via the Internet Archive Wayback Machine at https://archive.org/web
Updated digital material and resources associated with this volume are available at https://doi.org/10.11647/OBP.0189#resources
Every effort has been made to identify and contact copyright holders and any omission or error will be corrected if notification is made to the publisher.
ISBN Paperback: 978-1-78374-821-1
ISBN Hardback: 978-1-78374-822-8
ISBN Digital (PDF): 978-1-78374-823-5
ISBN Digital ebook (epub): 978-1-78374-824-2
ISBN Digital ebook (mobi): 978-1-78374-825-9
ISBN XML: 978-1-78374-826-6
DOI: 10.11647/OBP.0189
Cover image: Unnamed Road, Juanga, Morotai Sel., Kabupaten Pulau Morotai, Maluku Utara, Indonesia, Morotai Selatan. Photo by Rizky Arief at Unsplash, https://unsplash.com/photos/msAY2oBDXHI
Cover design: Anna Gatti.
Contents
Acknowledgements
xv
Preface
xix
Foreword
xxiii
Author biographies
xxix
Editors
xxix
Chapter Authors
xxx
1.
Infrastructure Investment in Indonesia — The Economic Context
1
C. F. Duffield, R. Duffield, and S. Wilson
1.0
Introduction to Indonesia
1
1.1
Government
2
1.1.1
National
2
1.1.2
Regional
2
1.2
Population
3
1.3
Economy
4
1.3.1
Investment
6
1.4
Infrastructure
6
References
10
2.
Infrastructure Planning, Challenges and Risks
15
C. F. Duffield, R. Duffield, and S. Wilson
2.0
Introduction
15
2.1
Infrastructure Plans
15
2.1.1
National Plans, Agencies and Institutions
15
2.1.1.1
Bappenas and Bappenda
16
2.1.1.2
Master Plan for the Acceleration and Expansion of Indonesian Economic Development 2011–2025 (MP3EI)
17
2.1.1.3
National Long-term Development Plan 2015–2025 (Rencana Pembangunan Jangka Panjang Nasional abbreviated to RPJPN)
19
2.1.1.4
Committee for Acceleration of Priority Infrastructure Delivery
21
2.1.1.5
Indonesian Maritime Doctrine 2014
24
2.1.2
International Plans
25
2.1.2.1
ASEAN (Association of Southeast Asian Nations) Connectivity Agenda
25
2.1.2.2
APEC (Asia-Pacific Economic Cooperation) Connectivity Blueprint 2015–2025
25
2.1.2.3
Master Plan of ASEAN Connectivity (MPAC) 2025
26
2.1.2.4
21st Century Maritime Silk Road Initiative
26
2.1.2.5
Indonesia-Malaysia-Thailand Growth Triangle Implementation Blueprint 2012–2016
27
2.2
Challenges, Risks and Issues Affecting Infrastructure Processes and Development in Indonesia
28
2.2.1
Issues and Risks
28
2.2.1.1
Corruption
34
2.2.1.2
Environmental Risks
35
2.2.1.3
Land Acquisition
35
2.2.1.4
Transaction law
37
2.2.1.5
Public Private Partnership (PPP) Process
37
2.2.1.6
Political Instability
39
2.2.1.7
Regulatory and Legal Uncertainty
39
2.2.1.8
Lack of Projects
40
2.2.1.9
Insufficient Human Capital
40
2.2.1.10
Bureaucracy
41
2.2.1.11
Economic Outlook
42
2.2.1.12
Foreign Currency
43
2.2.1.13
Dispute Resolution
43
2.2.2
Research into Barriers to Doing Business in Indonesia and Australia
43
References
47
3.
Funding and Financing Infrastructure: Indonesia and Australia
53
C. F. Duffield, R. Duffield, and S. Wilson
3.0
Introduction
53
3.1
Potential Sources of Infrastructure Financing
54
3.2
Discussion of the Specific Financing Scenarios
56
3.2.1
Direct Governmental Financing
56
3.2.1.1
Indonesia Infrastructure Guarantee Fund (IIGF)
58
3.2.1.2
P.T Sarana Multi Infrastruktur (Persero) (PT SMI)
59
3.2.1.3
Indonesia Infrastructure Finance (PT IIF)
59
3.2.1.4
Viability Gap Fund (VGF)
60
3.2.1.5
Land Funds
60
3.2.2
Direct Company Facilitation
60
3.2.3
Foreign Direct Investment (FDI)
61
3.2.4
Public Private Partnerships
64
3.2.5
Special Economic Zones or Preferential Concessional Loans
65
3.2.6
Asset Recycling
67
3.2.7
Discussion
69
3.3
The Market’s View as to How to Best Finance Port Infrastructure Projects: Indonesia and Australia
70
3.3.1
Introduction
70
3.3.2
Do the Current Government Policies Support and Facilitate Investment?
70
3.3.3
Is There Sufficient Finance to Meet the Development Demand in a Timely Manner?
71
3.3.4
Priority Areas Requiring Investment
72
3.3.5
Research Relevance to Funding and Finance
75
3.4
Concluding Remarks
80
References
82
4.
Efficient Facilitation of Major Infrastructure Projects
85
C. F. Duffield, F. K. P. Hui, and V. Behal
4.0
Background and Context
85
4.1
Risk Allocation and Management
89
4.2
Delivery of Infrastructure Projects: Indonesia
90
4.2.1
Jakarta Sewerage System (JSS)
91
4.2.2
West Semarang Drinking Water Supply
92
4.2.3
National Capital Integrated Coastal Development
94
4.2.4
Bontang Refinery
96
4.2.5
Umbulan Springs Drinking Water Supply Project
98
4.3
Delivery of Infrastructure Projects: Australia
99
4.3.1
Channel Deepening Project, Victoria
100
4.3.2
M.7 Motorway, New South Wales
101
4.4
Benchmark Practices
103
4.4.1
Comparative Analysis
106
4.4.2
Findings
109
References
109
5.
Port and Hinterlands
113
J. Black and V. Roso
5.0
Introduction
113
5.1
Methodology
116
5.2
Literature Review Intermodal Terminals — Concept of Dry Ports
117
5.3
Sydney’s Container Ports — History
119
5.4
Port Botany Container Terminals
122
5.5
Multi-modal Transport Access to Port Botany
128
5.6
Hinterland Intermodal Logistics Centres
133
5.6.1
Port Botany’s Inland Terminals Pre-2010
133
5.6.2
Chullora Intermodal Terminal
136
5.6.3
Macarthur Intermodal Shipping Terminal (MIST)
136
5.6.4
Cooks River Intermodal Terminal (St Peters)
137
5.6.5
Yennora Intermodal Terminal
137
5.6.6
Villawood Terminal (Leightonfield)
138
5.6.7
Enfield Intermodal Logistics Centre
138
5.7
Moorebank Intermodal Terminal — Detailed Case Study of Dry Port
139
5.8
Funding and Financing Port, Terminals and Transport Access
144
5.9
Conclusions
146
References
149
6.
Comparative Efficiency Analysis of Australian and Indonesian Ports
155
F. K. P. Hui, C. F. Duffield, A. Chin, and H. Huang
6.0
Introduction
155
6.1
Literature Review
157
6.1.1
Logistics and Port Efficiency
157
6.1.2
Indonesia
158
6.1.2.1
Port of Surabaya
158
6.1.2.2
Port of Jakarta
159
6.1.3
Australia
160
6.1.3.1
Port of Melbourne
160
6.1.3.2
Port of Botany, Sydney
161
6.1.3.3
Port of Fremantle
161
6.1.4
China
162
2.1.4.1
Port of Shanghai
162
6.1.5
Data Envelopment Analysis (DEA)
162
6.1.6
Private Sector Involvement
163
6.1.7
Current Knowledge Gap
163
6.2
Methodology
164
6.2.1