PT Angkasa Pura II (Persero), a state-owned enterprise responsible for the management of airports in western Indonesia, has launched a selection process for a strategic partner to co-manage and co-invest in Kualanamu International Airport (KNO), located in Deli Serdang, North Sumatra.
Infrastructure/PPP news in Indonesia
The Airport Director of Indonesia's Ministry of Transportation has publicly stated that the Ministry intends to launch a tender for the expansion and operation of Komodo Airport, located in Labuan Bajo, East Nusa Tenggara province, this month. The project is thought to require a total investment of IDR3 trillion (~US$200 million).
Indonesia's Directorate General of Highway (Direktorat Jenderal Bina Marga) under the Ministry of Public Works and Housing has prequalified six potential bidders for the development of the Jalan Lintas Timur highway PPP in South Sumatra.
The Ministry of Communication and Informatics of the Government of Indonesia has launched a tender for the financing, design, procurement, construction, launch, operation and maintenance of a multifunctional government satellite. The total estimated investment of the project is IDR6.58 trillion (US$456.7 million).
The Asian Development Bank (ADB) and the Government of Indonesia today have signed a memorandum of understanding to partner up in promoting public-private partnerships in the transport sector. ADB will provide strategic advisory services to support the Ministry of Transportation (MOT) in screening and preparing transport projects for delivery through PPP.
DP World Limited has announced that the company has reached a decision not to renew its operating contract for PT Terminal Petikemas Surabaya (TPS) in Indonesia at the end of the agreement in 2019.
The Government of Indonesia is to launch a tender process for three public-private partnership (PPP) drinking water projects in Bandar Lampung (Lampung), Jatiluhur (West Java) and in Karian (Banten).
PT Medco Energi Internasional Tbk., through its subsidiary PT Medco Gas Indonesia (MedcoEnergi), and PT Bangun Cipta Kontraktor have announced they have appointed PT Indonesia Infrastructure Finance (IIF) as the mandated lead arranger for the syndicated financing of the Umbulan Water Supply System (WSS) Project.
The World Bank Group has launched two tender processes to seek technical and legal consultants for a waste-to-energy plant in Tangerang (Indonesia).
IFC, a member of the World Bank Group, has committed up to US$200 million to the IFC Emerging Asia Fund (EAF), which has reached a first close. IFC is joined by the Korea Development Bank (KDB) and the Fiji National Provident Fund (FNPF). Central to the EAF is mobilizing additional capital in emerging markets of the Asia region, given the scale of investment, innovation, technological development and employment creation required for sustainable development in many low and middle income countries in the region falls beyond the range of the public sector, making the private sector central to finding and financing the development solutions that are needed. Investments by the EAF will be aligned to IFC’s strategy for the region, which includes a focus on addressing the infrastructure deficit, and at the same time it will also help investee companies raise standards, improve risk mitigation and generate value. The new global architecture for international development, the Sustainable Development Goals, launched at the United Nations in 2015, highlights that financing sustainable development requires low and middle income countries tap new sources of capital from both private and public sources, including leveraging global private capital to most skillful effect. Two thirds of the world’s poorest people live in emerging Asia and yet it is the engine room of global growth being the fastest growing region and the largest continental economy by GDP in the world. This growth is a function of favorable dynamics such as the continued need for enhanced infrastructure, the emergence of a rapidly growing middle class and commitments by many governments in the region to political and economic reform. Combined, these dynamics have created significant opportunities for investment in the region including China, India, Indonesia, Philippines and Asian frontier markets such as Vietnam and Myanmar.
The East Java administration of Indonesia and private consortium PT Meta Adhya Tirta Umbulan, formed by Medco Gas Indonesia and construction firm Bangun Cipta Kontraktor, have signed the contract for the Umbulan Drinking Water Supply System PPP project.
The short listed projects were derived from regional and national infrastructure priority pipelines which were subjected to selection methodologies covering a range of criteria pertaining to strategic relevance, level of project development, project feasibility, complexity of implementation and fiscal impact. The short-listing process was conducted through desk review of projects based on available information and consultations with concerned public and private sector officials from the Member States, multilateral and bilateral development organizations and other relevant information sources.
The Asian Development Bank (ADB) has approved the release of a US$500 million loan to Indonesia following the roll out of agreed policy reforms to reduce barriers to investment and encourage more public-private partnerships (PPPs), which are needed to foster the development of the private sector and increase its participation in infrastructure projects.
The International Finance Corporation (IFC), a member of the World Bank, along with eight banks are set to provide syndicated loans of US$150 million for the Indonesia Infrastructure Finance (IIF).
GVK, an India-based conglomerate, is ready to invest US$500 million as part of its commitment to develop the new international airport Kulon Progo, in Yogyakarta, a province in the Indonesian island of Java.
According to Sudirman Said, Minister of Energy and Mineral Resources, the oil refinery is scheduled to commence in 2017 andstate-owned energy company Pertamina will be in charge of the project and is now searching for investors to participate in the project.
According to the President Director of Indonesia's West Java International Airport (BIJB) Virda Dimas Ekaputra, more than 40 investors have showed interest to invest in the development of Indonesian Kertajati airport.
A consortium led by Indonesia's energy group Medco has won the tender process for the Umbulan water treatment plant PPP project in East Java, Indonesia. Jakarta-based construction firm Bangun Cipta Kontraktor, founded by a former minister, will complete the consortium.
The Government of the Republic of Indonesia has launched a tender process for individual PPP consultant services.
Citic Envirotech, CITIC Group's platform to develop its water and environmental business, has secured three built, operate and transfer (BOT) water projects, two in China and one in Indonesia.