1. Investing in Connectivity:
Proposed DGH Support for MP3EI
April 2012

2. Connectivity in the Road Sector
Faces Strategic Challenges
Low competitiveness of road infrastructure v. SEA
region
Current policies are not creating a sustainable modern
highway system
Development of high-capacity expressway network is
lagging demand
Rising funding allocation needs to expand even further
Road program delivery needs more efficiency and
accountability
Change in business model needed
2

3. Proposed Support for DGH and BPJT
Road Network Planning (Bipran, BPJT)
• - Long-term Masterplan for Road Infrastructure
• - Investment pipeline to improve connectivity in MP3EI
corridors
Improved delivery of national road programs
(Bintek, Wilayah-Balai)
• - Longer road life, whole life costing
• Asset management devolved to balai
3

4. MP3EI Economic Corridors
– 12,000 km National Arterial Roads
1 4
3
6
2
Economic Corridor
Mega Hub
5
Hub
Potential Area for Development
The Recommended Six (6) Economic Corridors : Logistics is part of the supply
chain (supply chain):
1 Eastern Sumatera-North West Java 4 Western Sulawesi 1. procurement activities
2. storage
2 Northern Java 5 East Java-Bali-NT 3. delivery / transportation
and service
3 Kalimantan 6 Papua
Source: Coord. Ministry of Economic 4 4

5. Road Connectivity
– Estimated Current and Target Service Levels
Normalized Trip Times on Economic Corridor
Arterial Roads- 2011
Trip time hr/100 km*
0,0 1,0 2,0 3,0 4,0 5,0 6,0
Trans-Sumatra
1
Target Service level
Trans-Java 1-1.5 hr/100 km
2
Kalimantan
3
Sulawesi
4
Bali-NTT
5
Papua-Maluku
6
Road Trip Time Nautical Add-on * Corridor distance
shorter than Arterial
5
road distance

6. DGH Masterplan for Road Infrastructure 2010-14
Incremental Widening to Minimum Width Standard
Road Length, km • Budget IDR 7 trillion/yr
- 2.000 4.000 6.000 8.000 10.000
• Covers 47% of network in 5 yr
Sumatra 3.690 • Increments to 4.5, 6 or 7 m width
Java 1.430 But comes at high cost:
Kalimantan • No distance saving, little speed
2.780
improvement
Sulawesi 3.160
Total Length • Investment repeated in 5-10 yrs
NTT 987 Improved • High cost = 40-60% of full
length construction for 20-yr life
Maluku-Papua 1.905
• Defers achieving modern asset
• Compounds land issues
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7. DGH Support on Road Network Planning
Proposed outputs:
• Long-term 50-yr strategy to plan optimal road infrastructure
for sustaining development
• 20-yr pipeline of investment projects in each economic
corridor, staged to optimise benefits and spread funding
requirements
• Journey time used to define connectivity and infrastructure
plan outcomes
• Expressway network defined as backbone of trans-regional
connectivity, with staged implementation
• Modernise arterial road network gradually through full
renewal of roadway and alignment
7

8. TRANS KALIMANTAN NATIONAL ROAD PROGRAM
Improving connectivity:
Kalimantan Economic Corridor Simanggaris
Nunukan
Malinau
Corridor plan evaluates options when
Tj. Selor
generating project pipeline and
investment profile for Economic
Aruk
Corridor: Enttikong
Ng Badau
Putusibau
staged over 5, 10,
15 & 20 year periods
Pontianak Tayan
Samarinda
Balikpapan
Palangkaraya
Strategic Options
Banjarmasin
(1) Widen existing road
Jalan yang belum terbangun digambarkan dengan garis putus-putus
Road standard
(2) Realign and rebuild – “road renewal”; Expressway
>= 7 m
(3) Highway on future expressway location 6m
4.5 – 6 m
Not Connected
(4) Expressway in new location Sea Port

9. Improving Connectivity:
Trans-Sumatra - Corridor Plan for Staged Development of
Capacity in Parallel Facilities over long-term 20-yr period
ARTERIAL NATIONAL ROAD WIDTH
Width m 14 2019
Road Width
10 2024
2014
7
6
5 2010
101 102 103 104 105 106 107 108 109 110 111 112 113
B Aceh
B Aceh Medan
Medan Pekanbaru
Pekanba Lampung
Palembg Lampung
Length km 644 694 754 443 0
Total distance 2536 1892 1198 443
EXPRESSWAY
Dual C'way
Renstra period color code
Baseline
2010-2014
2015-2019
2020-2024
2025-2029
101 102 103 104 105 106 107 108 109 110 111 112 113
B Aceh Medan Pekanba Palembg Lampung
2029 2019 2024 2019
Length km 460 564 610 380 0
Distance km 2014 1554 990 380
9

10. Corridor Plan Output - Trans-Sumatra Example:
Linkage of Development Outcomes and Financing Plan
– Long-term 20-yr Period
Connectivity: 80 Financing Plan
5-Year Spending estimate (IDR T)
Travel Time from South to 70
1,5
North 60
7
50
70
60 40
58,6
TRAVEL TIME (hr)
50 30 47,9
0
40 20
20,2
30 B Aceh 10
2,6 1,7 3 3,6
3 3 3 0
20 Medan 0 1,8
Pekanb
10 R1 R2 R3 R4
Palem RENSTRA PERIOD
0 Boukh
2010 2015 2020 2025 2030 Rd Presv Rd Widening Exwy GOI Exwy PrivSec
10

11. Accelerating Expressway Development
• Development expected 3500
3000
to accelerate – but land 2500
Total length, km
and private finance risks 2000
will dictate 1500
• Need broader financing 1000
500
modality, better use of 0
available public funds 1980 1990 2000 2010 2020 2030
Operational Implementing Planned
IndII Support:
• Assist delivery of Trans-Sumatra & East Java expressways
• Define “expressway” classification in Road Law
• Update long-term plan for expressway network
• Advice on viability gap funding & PPP modalities
• Support project preparation with VGF
• Management: Strengthen BPJT, consider expressway authority
11

12. Funding Forecasts to Achieve Connectivity Goals
and Modernisation of Road Network
• Long range forecasts of Total Highway Expenditure to Meet Connectivity
funding requirements built Goals - Long-term Plan to 2029
from the investment pipeline 90
80
• Supports scenario planning
Annual Expenditure IDR t
70
Plan forecast
Exw-PS
60
- pace of development Exw-GOI
50
- public-private share 40
Devel-DGH
30
• Modernising whole network 20 Presvn - DGH
in 15 yr requires allocations 10
0 Mgt - DGH
to double 2005 2010 2015 2020 2025
Expanding Level of Service Economic Corridor avg trip time
30000 4,0
Avg Trip Time (hr/100 km)
Network length at LoS (km)
3,0
20000
Exway 2,0
10000 LOS-A 1,0
0,0
0 2000 2010 2020 2030 2040
2005 2010 2015 2020 2025
12

13. IndII Support for DGH - 1
Enhance Planning of National Road Development:
- Expedite national connectivity and mobility
- Reform road development planning process
- Efficient deployment of expanded private and public funds
- Accelerate development of expressway network
• Build comprehensive process for planning road network
development with expenditure forecasts and pipeline of projects
• Prepare long-range capacity expansion profiles for six economic
corridors, include pipeline of projects and financing plan
• Develop an optimal 20-yr strategy for financing development of the
expressway and arterial road networks
• Assist BPJT to build capacity for processing the enlarged expressway
development program, and transactions with viability gap funding

14. DGH Support for Network Planning:
Activity packaging
Package 1: Connectivity in Eastern Indonesia
• Preparation of 20-yr investment plans for 4 MP3EI
corridors (Kalimantan, Sulawesi, NTT, Maluku-Papua)
• Prepare 5-year pipeline of capacity expansion projects on
arterial road network & budget estimates
• Planning procedures upgraded to include strategy on
capacity expansion and road renewal
Package 2: Connectivity in Sumatra and Java
• Advisory support on expressway package preparation for E
Java and Sumatra corridors, including financing
• Classification and updating of expressway plan
• Capacity & policy support to Bipran and BPJT
• Preparation of 20-yr investment plans for MP3EI corridors
14

15. IndII Support for DGH - 2
Improve efficiency national road program delivery:
- Reduced life-cycle costs, improved performance and life of road assets
- Improved design and delivery of projects;
- Improved management of road and bridge assets; and
- Improved transparency and accountablity for performance
• Implement new design guide – longer life pavements
• Prepare road renewal project pipeline for heavily trafficked
corridors in East Sumatra and Java (Balais 3, 4 and 5)
• Build balai capacity for managing national road network - devolved
road management process, new system and.
• Assist 1-3 Balais with preparation of 3-year programs 2013-15 using
new system;
• Apply new project design methods, contract preparation and
supervision in selected heavy traffic corridors.

16. Approach for Support to DGH and MPW
• Facilitate delivery of DGH program:
• Working with Directorates to design and implement program
• Demonstrating applications and reforms through outputs
• Supporting MTEF budget preparations in 2012, 2013 & 2014
• Progressive engagement:
• Hold-points for review after initial stage and annual stages
• Governance:
• Building reliable data & information database for shared use
• Deploy strategic KPI for travel time, asset age and activity costs
• Launch public disclosure – possibly under CoST Initiative
• Support MPW administrative reform measures

17. Terima kasih
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