Infrastructure in Indonesia: President Yudhoyono Targets Start of 13 Projects

The Trans Sulawesi Railway, the first railway that will be constructed in the eastern part of Indonesia, will connect the harbour in Pare-Pare (which forms the main harbour that facilitates trade between Sulawesi and Kalimantan) to the harbour of Makassar.

Initially, it was targeted to see the groundbreaking for 15 infrastructure projects before the current cabinet finishes in October. However, two projects will not meet this deadline. These are the Cilamaya Port project (West Java) and the Elevated Railroad (loop line) in Jakarta. The Cilamaya Port project was delayed because the government could not find an agreement with state-owned Pertamina relating to the compensation for Pertamina as the company’s pipes need to be moved from the construction site. Meanwhile, groundbreaking for the Elevated Railroad in Jakarta had to be postponed due to the unavailability of funds and regulatory conflicts.

The following 13 infrastructure projects are aimed to start before November 2014:

No.	Project	Estimated Costs	Description	Expected Groundbreaking
1.	Trans-Sumatra Toll Road	IDR 355 trillion	23 road segments along 1,980 km. Initially two section will be constructed: Medan-Binjai (North Sumatra) and Palembang-Indralaya (South Sumatra)	Early October 2014
2.	Manado-Bitung Toll Road	IDR 1.06 trillion	A 43.6-kilometer long toll road in North Sulawesi, financed by the government 's State Budget (IDR 60 billion) and a loan from the government of China. The conditional tender has been opened	Early October 2014
3.	Balikpapan-Samarinda Toll Road	IDR 5 trillion	The first toll road in Kalimantan. Around 83 percent of the land clearing phase is finished. The project is funded by the State Budget (IDR 1 trillion), a loan from the government of China and private participation. The tender has been opened	Early October 2014
4.	Cilincing-Cibitung Toll Road	IDR 2.05 trillion/IDR 1.2 trillion for land acquisition	This 33.6 km long toll road is needed in West Java to anticipate an increase in the flow of goods after the new Kalibaru teminal (New Priok Port) will open	Mid October 2014
5.	Pangkalan Susu Steam Power Plant	USD $383.7 million	Financing originates from a loan agreement of Bank Exim China and Perusahaan Listrik Negara. It will have capacity of 2x200 MW, located in North Sumatra	Mid October 2014
6.	Mulut Tambang 9 Steam Power Plant	USD $1.56 billion	Located in South Sumatra, this plant will have a capacity of 2x600 MW. The pre-qualification tender has ended	End October 2014
	Mulut Tambang 10 Steam Power Plant	USD $780.8 million	Located in South Sumatra with capacity of 1x600 MW. The pre-qualification tender has ended	Mid October 2014
7.	Takalar Steam Power Plant	USD $294.1 million	Located in South Sulawesi, financed by a loan from Bank Exim China	Mid October 2014
8.	Trans Sulawesi Railway	IDR 9.65 trillion	See column above	Conducted on 12 August 2014
9.	Railway Kalimantan	USD $5 billion	This 1,400 km long railway will be constructed to support coal transportation from Central Kalimantan. It will be connected to the port in Samarinda, Balikpapan and Banjarmasin	Mid October 2014
10.	Soekarno-Hatta Airport	IDR 26.3 trillion	Expand capacity at the busiest airport of Indonesia (near Jakarta) from 72 flights per hour in June 2014 to 86 flights by June 2015	Already started
11.	Kertajati Airport	IDR 8.3 trillion	Blocked by land aquisition problems
12.	Jati Gede Water Reservoir	USD $416 million	Aimed to supply water to rice fields in West Java. Still blocked by land acquisition problems and social issues
13.	Indonesia Broadband Plan		Provides guidance for the direction of the acceleration of the development of national broadband Internet (a draft Presidential Regulation)

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