23rd Synergy Between Government and Private Sector Bali, 23rd March 2017 THEME : Synergy Between Government and Private Sector Linkage Beetween Infrastructure Project and Industrial Development Presented by Mr. Tjahjadi Rahardja Msc. President of PT. Jababeka Infrastruktur

Locations of PT. Jababeka Projects Morotai Cikarang Tj. Lesung Kendal

Indonesian Government Support for Jababeka Projects Interchange construction at Kilometer 29.2 (Ministry of Public Works and Housing) Land Acquisition (Jababeka) Pasir Gombong Fly Over Construction / Cikarang Dry Port’s Access (Ministry of Public Works and Housing) Land Acquisition and Detail Engineering Design (Jababeka) Logistic Railway Construction, Cikarang Dry Port – Tj. Priok (Ministry of Transportation and PT. KAI) Cikarang Dry Port Construction (Jababeka) Construction of Serang – Panimbang Toll Road Consortium beetween Jababeka (Private), WIKA (BUMN) and PT.PP (BUMN)

National Competitiveness Not competitive enough caused by limitation of infrastructure support (including connectivity) million km area 2 Indonesian Competitiveness Rank has decreased from 34th (in 2014), 37th (in 2015), and 41st (in 2016) from 140 Country in the world. (WEF 2016) Projected Economic Growth: source: Ministry of Finance 5.3%

“ ” Quick Win Strategy Precedent FIRST AGENDA “ ” Collaboration and cooperation of Industrial Estate Developer from foreign countries with Indonesian Developer China (china fortune, etc) Malaysia (sime darbi, selangor etc) Singapore (Acendas, Jurong, Sembcorp, etc) Japan (Sumitomo, Marubeni, Mitsubishi etc) Korea (Hyundai, Samsung) Precedent Kawasan Industri Kendal : Jababeka & Sembcorp East Jakarta Industrial Park (EJIP) : Lippo, Spinindo Mitradaya & Sumitomo Karawang International Industrial City (KIIC) : ITOCHU Corp of Japan & Sinarmas Land MM2100 : Manunggal Group & Marubeni

Quick Win Strategy - COLLABORATION SECOND AGENDA There are many unutilized land and infrastructure (Seaports and Airports) in Indonesia. As Example, lands that owned by SOE such as PT. Angkasa Pura, PT. Pelindo, PT. KAI, PT. Pertamina, PT. Perhutani and other lands that are owned by some of ministry in Indonesia. SOE could cooperate with Foreign or Private Company to utilize these land for development. Inviting foreign investors or private company as the developer of industrial estate to adopt their strategic advantage, so the industrial estate can grown faster. Collaboration between BUMN and Fully Private Company in Malaysia has been used optimally, as example: Johor, Selangor, Iskandar. As a good pattern of Public Private Partnership.

“ ” Quick Win Strategy - INTEGRATED THIRD AGENDA “ North Industrial Estate Integrating between the central Industrial Estate with Logistic Hub and connectivity with logistic lines, so the logistic system will be efficient Central Industrial Estate Logistic Lines ” Logistic Hub East Industrial Estate West Industrial Estate (Indonesian cost logistic is 24% to national GDP. The average of the competitor is 7% to 14% towards their GDP). South Industrial Estate Ocean : Seaport, short sea shipping, Sea Toll Air : Airport, Aero park Land : Train; Container on barge through river, as alternative to toll road.

“ Quick Win Strategy - REGULATION FOURTH AGENDA Regulation that will support the points which mentioned before, such as : Land acquisition and infrastructure construction assurance Industrial estate that appointed as the national strategic project, direct permission from central government with the purpose of “Quick Win” can be reached. “

2016 KIK’s Official Opening and Begin Phase 1

WHAT KIK NEED Water Road Port Blorong River Rubber Dam Construction Reservoir Construction at Bodri River Road Semarang Outer Ring Road Construction Semarang - Demak Toll Road Construction Port Develop the port in Kendal as Container Port Railway construction from Kendal Port to Tanjung Mas Port

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