INDONESIA-AUSTRALIA BUSINESS SUMMIT (IABS) 2018 MINISTRY OF TRANSPORTATION REPUBLIC OF INDONESIA Melbourne, 27th September 2018 INDONESIA-AUSTRALIA BUSINESS SUMMIT (IABS) 2018 DR. CRIS KUNTADI, CA, CPA, QIA, FCMA, CGMA, CIPSAS, CFRA, AK. Senior Advisor to Minister on Logistic, Multimodal and Safety Transportation Acting Official Senior Advisor to Minister on Economic, Region and Partnership Transportation

Transportation Sector in IA-CEPA SEA RAILWAYS AIR

Deregulation in MoT DEREGULATION Remove 11 permits in the field of transportation. Speeding up the publishing time of 23 permits. Extend the validity of 11 permits. Simplify process requirements as many as 27 permits. Reduce the permit fee by 1 permit, Reducing the value of capital requirements as much as 10 permits. Combining permits as many as 23 permits, Delegation of signatures of 4 permits. Delegate permits to BKPM of 13 permits. The program in order to improve the ease of investment include: Remove 8 permissions. Simplification of 32 permits (time: 10 regulation, process: 1 regulation, requirements: 4 regulation, delegation: 12 regulation, extended duration: 5 regulation). Delegated to BKPM 11 permits. Preparing an acceleration program based on Perpres 91 year 2017. Checklist System (24 licensing) and Online Single Submission System (OSS) of 37 permissions.

MOT PPP Pilot Project 2018 Komodo Airport Anggrek Port Bau – Bau Port Port Sector Proving Ground BPLJSKB (Vehicle Testing Facility) Anggrek Port Bau – Bau Port as one of an efforts to meet the UNECE standard as a guideline for the preparation of standard of motor vehicle toll road testing in Indonesia, the project offer trough government pay PPP’s (availability payment) where the private sector will responsible for Design, Build, Finance, Operate, Maintaned (DBFOM) ToD Poris Plawad Construction and Development of Residential area, Walkable Design Pedestrian, Mixture of use, in Poris Plawad Terminal which a Type-A terminal in KotaTangerang that serve Jabodetabek Transportation Area, Provincial, and Inter-City Komodo Airport Makassar – Pare Pare Railway Komodo Labuan Bajo is a tourism area which has enormous potential to be managed and developed. Komodo airport currently are managed by the Airport Organizing Unit under the Ministry of Transportation and offered as PPPs Under the concession/licenses contract that will involve a long-term contract with the private sector to manage and operate all of the airport infrastructure with significant or material initial investment   located in the Province of South Sulawesi with a total track length of 142 km Mainline track consisting of the A-B-C-D-E segment with the additional of a 4.7 km Garongkong track (Garongkong Port located in Segment B). For Phase-1, the Makassar Railway - Pare-pare project offered for PPPs which includes the operation and maintenance of a 111.7 km mainline (B-C-D segment including Garongkong track) and railway line construction to local industries (segment F). 16

Other Projects to Investors Indonesia also offers some other projects to investors for cooperation: New Priok Port Development Product Terminal, Jakarta; project cost USD 730 million New Deep Port Development in Kijing phase 1, West Kalimantan; project cost USD 382 million. Inland Waterways of Cikarang Bekasi Laut, West Java; project cost USD 374 million New Deep Port Development in Tanjung Carat, South Sumatra; project cost USD 462,8 million . Gili Mas New Port, Lombok Island, West Nusa Tenggara; project cost USD 153 million Port of Benoa, Denpasar Bali; project cost USD 158 million Makasar New Port, South Sulawesi; project cost for phase 1 is USD 575 million Bandung Metro Capsule, West Java; project cost USD 37 million. Lombok International Airport, West Nusa Tenggara; project cost USD 126 million. Makasar - Pare Pare Railway, South Sulawesi; project cost USD 376 million. Surabaya Tram, East Java; project cost USD 870 million.

Why Now Most aggresive infrastructure development in Indonesia’s History Concrete policy for eradication and corruption Citizen’s trust on the Indonesian Government is at all time high Extra incentive for investments in induatrial, tourism and special econic zones Policies reform in ICT sectors Fiscal reform for long term sustainable growth Strong investors’ confidence to invest further in Indonesia Law reform to ease business and investment

MINISTRY OF TRANSPORTATION REPUBLIC OF INDONESIA Thank you