INDONESIA TO OFFER INCENTIVES TO BOOST GEOTHERMAL ENERGY
The Indonesian government is developing an incentive scheme to boost investment in geothermal energy, as per the Ministry of Energy and Mineral Resources. The program will include reimbursement costs for exploration activities and other incentives for potential investors.
The compensation will help make the price of electricity generated from geothermal power more affordable, as per Francis Xavier Sujiastoto, director general of new renewable energy and energy conservation at the ministry. Apart from compensation for exploration activities, geothermal projects will also receive tax holidays.
Prices for geothermal electricity will likely reduce if the scheme is implemented. Funds for the project have been approved by the Ministry of Finance, and will be included in next year’s state budget.
The Ministry of Energy will set up a team to monitor geothermal exploration jointly with the Geological Agency and other institutions, including universities. The measures will be included in a new renewables law currently being discussed by the government. The legislation is set to be passed this year, according to local media reports.
Indonesia, located on an archipelago with frequent volcano activity, has the potential to develop up to 23.9 GW of geothermal energy, as per the Ministry of Energy and Mineral Resources. The country is aiming for renewable energy to reach 23% of its total energy mix by 2025, from around 12% at the end of 2019.
BANDUNG GOVERNMENT APPROVES NEW WATER SUPPLY PROJECT in BANDUNG
Indonesia's Bandung city has accepted Malaysian utility Ranhill's proposal to build and operate a water treatment plant. The project will include the development and operation of the plant with a capacity of 350 liters per second. Bandung, with a population of over 2 million people, is the capital of West Java province.
The local water utility, Tirtawening Kota Bandung, will act as the offtaker, and the project includes a water tariff of IDR 3,200 (USD 0.22) per cubic metre, according to filing by Ranhill. The private proponent will operate the plant for 30 years.
The company will participate in the development of a feasibility study for the Djuanda water supply project, which will supply water to the greater Jakarta area.
The consortium to develop the project also includes Philippines Maynilad Water and Metropac Water Investments, Indonesian water firm Varsha Zamindo Lestari and infrastructure developer PT PP. Ranhill Capital, a subsidiary of Ranhill, which owns a 74.8% stake in the project.
The Indonesian government aims to start the pre-qualification process for the IDR 5.97trn Djuanda project in H2-2020.
INDONESIA TO ACCELERATE TENDER FOR JAKARTA WATER PROJECT
Indonesia’s Ministry of Public Works and Public Housing will accelerate the tender process for an IDR 5.97trn (USD 409m) drinking water project in Jakarta - Djuanda regional drinking water PPP project. The project aims to reduce extraction of groundwater by improving supply to residents in the capital through a new pipeline system, and is part of President Joko Widodo’s administration program to improve drinking water services in the Greater Jakarta area.
The project has been proposed by the MMVP Consortium, which consists of Philippines water firms Mayniland and Metropac Water, Varsha Zamindo Lestari, state-owned construction firm PT PP, and PT PP Infrastruktur, a subsidiary of PTPP.
It has a 30-year build, operate, and transfer contract. Returns of investment will be generated through water tariffs. Malaysian utility firm Ranhill said that a subsidiary, Ranhill Capital, would own 74.8% of the proposed project.
The construction is scheduled to start in 2021-2023. The project will source water from the Jatiluhur dam.
INDONESIAN FIRM PREPARING RFP FOR THREE WASTE PROJECTS
Indonesian developer Jakarta Propertindo is preparing request for proposal (RFP) documents to develop three waste management facilities with private partners. The projects - known as Intermediate Treatment Facilities - have already received more than 100 letters of interest from local and international companies, as per company issued statement Company has not provided estimated timeline for the selection of a partner, or the completion of the feasibility study.
The three facilities, to be located in South, West, and East Jakarta, are expected to have a combined total cost of USD 900m and a combined capacity to process 6,600 tons per day. Whether the project includes an energy component is subject to the findings of the feasibility study and the final decision of the Jakarta government.
INDONESIA PROCEEDS WITH USD 2BN TOLL ROAD PROJECT
Indonesia’s Public Works and People’s Housing Ministry expects to finish a tender for a IDR 28.85trn (USD 2bn) toll road project in Sep-20, according to an official statement. The toll road concession agreement will likely be signed with the winner in Oct-20, the Indonesia Toll Road Authority (BPJT) said in the statement. The ministry’s tender team is currently examining proposals submitted by potential investors for the 93km Solo-Yogyakarta-NYIA Kulonprogo project.
The tender for construction of the road - which will lead to a new airport in Yogyakarta, the capital of Central Java - opened in Mar-20. It is part of 10 toll road projects that will be offered to investors in 2020. A consortium consisting of the Daya Mulia Turangga-Gama Group, state-owned toll road operator Jasa Marga, and state-owned construction firm Adhi Karya is the original proponent.
INDONESIA TO LAUNCH THREE ROAD UPGRADE PPPs in RIAU
Indonesia’s government is set to launch a IDR 585bn (USD 40m) PPP to upgrade and operate three roads in Sumatra's Riau province in 2020. The projects involve the repair and maintenance of the Simpang Kayu Ara road, the Batas Pelalawan road, and the Sikijang Mati–Simpang Lago road. The total length of the three is 43km, according to local media reports.
The project will involve the reconstruction of roads and bridges, including work on four existing bridges. The concession period will be 15 years, and the winning bid will be announced in the first quarter of 2021.
INDONESIAN CONGLOMERATE SEEKS PARTNERS TO DEVELOP BINTAN AIRPORT
Indonesian conglomerate Salim Group is looking for investors to jointly develop a USD 750m airport on Bintan island, near Singapore. The airport is scheduled to start operations in 2021, and the selection of a partner is likely to be completed by early 2021, as per Bintan Inti Industrial Estate, the owner of the land where the facility will be developed.
Another company of the group, Bintan Aviation Investment, will launch a project company to develop the project. Bintan Aviation is likely to keep a majority interest in the SPV.
The airport will have a 3km runway and serve domestic and international routes, according to a project teaser. The joint venture will also develop an aircraft maintenance, repair and overhaul facility in the area.
The Salim Group, led by Indonesian tycoon Anthoni Salim, owns interests in the food, palm oil, tourism and property industries.
TENDER FOR SINGKAWANG GREENFIELD AIRPORT DELAYED TO Q3-2021 THIRD QUARTER
A PPP tender for Indonesia's greenfield Singkawang airport will be delayed until Q3-2021 due to the COVID-19 pandemic. A request for proposal to select a consultant to develop the final business case - which will take six to nine months - is set to be issued in H2-2020 as per Ministry of Transportation.
The project aims to develop a new airport in Singkawang, the second-biggest city in the West Kalimantan province, with a capacity of approximately 2.5 million to 3 million passengers per year. The project will cost an estimated IDR 4.5trn (USD 307m) and will have a 32-year concession period, including two years of construction.
It is not clear yet whether PT Sarana Multi Infrastructure or the Indonesia Infrastructure Guarantee Fund - two agencies under the supervision of the Ministry of Finance - will run the procurement process.
More than 30 companies have expressed interest in the project, including South Korea´s Incheon International Airport Corporation, Singapore´s Changi Airports International and Japan´s Itochu, Marubeni and Mitsui & Co.
REQUEST FOR PROPOSAL DOCUMENT ISSUED FOR THE KUALANAMU AIRPORT PROJECT
Indonesian state-owned operator Angkasa Pura II issued a request for proposal document for the Kualanamu Airport project. No restrictions on foreign ownership have been established for the bidding consortia since Angkasa Pura II will remain the majority stakeholder of the project. It will hold a 51% stake in Angkasa Pura Aviasi, while private partners will own the remaining.
The scoring system to choose the partner will evaluate the capacity of private partners to boost airport traffic and transfer expertise in the airport business, aside from its financial offer. Submission of bids will start during Q3-2020.
The Kualanamu Airport serves Medan, the capital city of North Sumatra, and it currently has a capacity of 9 million passengers per year. The operator and winning bidder will initially expand the capacity of the facility to 17 million passengers per year at an estimated cost of USD 217m. After the initial upgrade, the company will offer the private partner incentives to continue expanding capacity and boosting passenger traffic.
A total of 39 companies, including Switzerland's Zurich Airport AG, Japan's Mitsui, Singapore's Changi Airport International and Paris-based Vinci Airports, have submitted letters of interest for the project, Angkasa Pura II said in February.
KARIAN-SERPONG DRINKING WATER SUPPLY PPP PROJECT
Indonesia's Ministry of Public Works and People’s Housing invited companies to participate in a prequalification for an IDR 2.2trn (USD 156m) Karian-Serpong drinking water supply PPP project.
The project is an unsolicited proposal from a consortium consisting of Korea Water Resources Corporation, LG International and, Indonesian state-owned construction firm Adhi Karya, with additional value compensation of 10%. The design, build, operate, maintain, transfer project will provide drinking water to residents in Jakarta, Tangerang City and South Tangerang City. It will have a 33-year concession, including the construction period.
Construction will include a water processing installation in South Tangerang with a capacity of 4,600 litres/second and a 25.2km transmission pipeline. The ministry expects construction to start in 2021 and be completed in 2022 or 2023.
World Bank-backed International Finance Corporation and Export-Import Bank of Korea are expected to provide financing the project.
INDONESIA PREPARES TO ISSUE TENDER FOR SEPAKU SEMOI DAM
Indonesia’s Ministry of Public Works and People’s Housing is set to launch a tender for an IDR 700bn (USD 48m) dam in East Kalimantan. The ministry statement that the Sepaku Semoi Dam in Tengin Baru, North Penajam Paser Regency, will have capacity of 11 million m3. It will supply drinking water at 2,500 litres per second for Balikpapan, the province's trade hub.
The tender will use a design and build method to speed up construction and the contract is not part of a project to build Indonesia's new capital in North Penajam Paser. The estimated investment covers construction and acquisition of 378ha of land for flooding areas and a green belt.
SWISS CHALLENGE FOR SEMARANG HARBOUR TOLL ROAD IN INDONESIA
A Swiss challenge for the IDR 12.5trn (USD 870m) Semarang Harbour Toll road in Indonesia is set to start in Q4-2020. The Indonesian government will issue guidelines for the pre-qualification process and announce a submission deadline then, as per infrastructure-focused law firm Wiyono Partnership.
Wiyono represents Indonesian road developers Waskita Toll Road and Sumber Mitra Jaya, which submitted the initial proposal in Apr-19. Initial proponents have the right to match the winning bid emerging from the auction process. The project is scheduled to start construction by the end of 2021, and to begin commercial operations in 2023.
The toll road will link industrial estates in Kendal with Tanjung Mas Port in Semarang, in the province of Central Java.
KUALANAMU AIRPORT UPGRADE WINNER TO BE PICKED IN Q4-2020
State-owned Indonesian airport operator Angkasa Pura II will choose a private partner to upgrade its Kualanamu Airport in Q4-2020, as per local news. The submission of bids was initially scheduled to end by Jun-20, but the auction process has been delayed due to the coronavirus pandemic.
The Kualanamu Airport serves Medan, the capital city of North Sumatra, and it currently has a capacity of 9 million passengers per year.
The successful bidder will hold a 49% stake in Angkasa Pura Aviasi, the JV company for the project, for 25 years. The operator and private investors will initially expand the capacity of the facility to 17 million passengers per year.
Angkasa Pura II has also revised the timeline for the planned airport expansion due to the COVID-19 pandemic, The expansion has an estimated cost of USD 217m.
After the initial upgrade, the company will offer private partners incentives to continue expanding the capacity of the airport and boosting its number of passengers.
A total of 39 companies, including Switzerland's Zurich Airport AG, Japan's Mitsui, Singapore's Changi Airport International and Paris-based Vinci Airports submitted letters of interest for the project in Feb-20. The other companies who expressed interest include:
· Singapore's Changi Airport International;
· Germany's AviAlliance and Fraport Group;
· France's Groupe AdP and Egis;
· Spain's Ferrovial;
· Japan's Itochu, Mitsui and Mitsubishi Corporation;
· Malaysia Airport Holdings;
· Abu Dhabi Airports; and
· India's GVK and GMR Airports.
INDONESIAN INVESTORS PROPOSE USD 2.6BN RAIL PROJECT IN WEST PAPUA
A group of Indonesian investors proposed IDR 38trn (USD 2.6bn) rail project in the country´s West Papua province. The project will connect Sorong City with the provincial capital, Manokwari, and will have a total length of approximately 500km. The project cost includes land acquisition and the construction of train stations.
Everything will be funded by the private sector and the development will be carried out under the build-operate-transfer model, a representative of Indonesian firm Sari Nur Surya Utama was cited as saying.
ADHI KARYA CONSORTIUM WINS INDONESIA ROAD PPP
A consortium between state-owned Indonesian developer Adhi Karya and infrastructure developer Brantas Abipraya won a IDR 949bn (USD 66m) PPP to upgrade several roads in East Sumatra, as per announcement by the Ministry of Public Works and People's Housing.
The project will involve the upgrade of approximately 30km of roads in South Sumatra province. Construction will take three years. The firm will operate the roads and receive an annual payment of IDR 222bn for a period of 12 years.
Apart from the winning consortium, pre-qualified bidders included the following Indonesian construction firms:
· Waskita Karya
· Wijaya Karya
· PT PP
· A consortium of road developer Sumber Mitra Jaya and Modern
· A consortium of construction firms Nusantara Infrastructure and PT Acset Indonusa
LETTER OF INTEREST FOR AIRPORT CITY PROJECT NEAR KUALANAMU AIRPORT
Indonesia state-owned airport operator Angkasa Pura II is accepting letters of interest for the development of an IDR 6.6trn (USD 436m) Airport City near Kualanamu Airport. The project will be developed under a build-operate-transfer scheme, and it will include the building of a business and leisure zone in an 80ha space near the airport. The preferred bidder will operate the Airport City for 25 years.
The initial plans include the development of a logistics park, a golf course, a hospital, hotels, a space for big-box retailers and office and residential buildings. The project is set to be awarded by the end of 2020. Construction is scheduled to start in early 2021, and end two years later.
INDONESIA TO TENDER 10 ROAD PPPS in 2020
Indonesia is expected to launch tender processes for the development of 10 toll roads in 2020, as listed below:
1. The 76km Kulon Progo-Jogja-Solo toll road;