Search
  • YOG INFRA

Infrastructure & PPPs in Indonesia - Q2 2022 Update

YOG INFRA Q2 2022 insight series

INDONESIA's infrastructure development is being driven by transport and WASH (waste treatment, water supply) sectors internally and also, for development of large renewable energy projects for possible export to neighboring countries, notably Singapore. International players continue to show interest through partnerships with local entities.

Read more about key developments in Infrastructure and PPPs in Indonesia in our latest insight.

 

April 2022

INDONESIAN DEVELOPER TO PLAN INVESTMENTS ALONG JAKARTA SUBWAY

State-owned subway operator MRT Jakarta signed two memorandums - one with industrial estate developer Jababeka and the other with government-investment company Jasa Sarana - allowing them to explore project opportunities along the Eastern-Western Jakarta subway line.

The potential projects for Jababeka include stations and a transit-oriented development (TOD) in the west Java-Bekasi area. The memorandum of understanding with Jasa Sarana is for the construction of a waste management facility in the same region.

The Ministry of Transportation is working on the basic engineering design of the Eastern-Western Line. The company is also seeking partners to build a IDR 2.7 Trn (USD 188 Mn) TOD project near Fatmawati station on the Eastern-Western Line.

Several state-owned and private Indonesian companies are seeking investors to construct mixed-use developments. A group of Indonesian investors is looking for equity partners to build a IDR 390.5 Bn project in Central Java province.


INDONESIA WATER SUPPLY PPP SCHEDULED FOR THIRD QUARTER

Indonesian authorities are moving forward with a water supply public-private partnership (PPP) in West Java province, with the request for pre-qualification to be issued in the third quarter this year.

Tirta Gemah Ripah, a government-owned water utility that will act as the procuring agency, will launch public consultations with local offtakers next week.

Private concessionaires in Indonesia are not allowed to sell water directly to end-users in the country, and projects are structured around long-term offtake agreements with regional- and local-owned utilities. The Jatigede water supply PPP will involve the building of a water treatment facility with a capacity of 1,500 liters per second, to serve the Majalengka, Indramayu, Sumedang and Cirebon regencies.

The project cost is yet to be finalised, but a government teaser estimates a capital expenditure of USD 141 Mn. It also specifies a concession period of 30 years. Tirta Gemah Ripah is preparing the launch of a Swiss Challenge for the IDR 828 Bn (USD 57 Mn) Sinumbra water project, which will serve the city of Bandung and adjacent regions.


QUANTUM AND IB VOGT TO BUILD 3.5GW PROJECT IN RIAU ISLANDS

Singapore-based Quantum Power Asia and German clean energy developer IB Vogt have partnered to build a USD 5 Bn solar power and storage facility in Indonesia's Riau Islands. The project, to be built through a joint venture company Anantara Energy Holdings, will generate over 3.5 GW of solar power and have an energy storage capacity of 12 GWh.

About 75% of the project cost will be financed through debt while the remaining will be equity financed by developers. The Sponsors are speaking to several banks to arrange the same.

The facility is set to export power to Singapore via an undersea cable and can provide 4 TWh of renewable energy annually when it starts full operations in 2032. It will be spread across 4,000 hectares in Riau.

The project will be developed in multiple phases and will support a proposal submitted by Quantum, IB Vogt and Union Power to the Energy Market Authority (EMA) for a 1.2 GW tender to import renewable power into the island nation.

The companies are in discussions with the EMA on the capacity and other details of the proposal. Singapore plans to import a total of 4 GW of renewable power by the year 2035.


May 2022

INDONESIA’S SEMARANG CITY TO LAUNCH EFW TENDER

Authorities in Indonesia's Semarang city aim to launch the bidding process for a USD 100 Mn energy-from-waste (EfW) project early next year. The plant, at Jatibarang, will have a capacity of 1,000 tonnes of waste per day, and will produce 15 MW to 17 MW of electricity. It will occupy 5 Ha.

Construction will take three years. It will carry a 20-year concession. The operator will be able to recoup its investment through an availability payment scheme. It will also be given the right to sell electricity to Indonesian state utility PLN with a feed-in tariff of USD 13.35 cent/kwh, as well as the right to sell other residue and by-products.


INDONESIAN CITY PLANS WASTE-TO-ENERGY PPP

Indonesia’s South Tangerang city is planning a waste-to-energy project to be built in a public-private partnership. The project requires the construction of a plant capable of processing 800 tonnes of waste per day. The authorities estimate its total cost to be USD 120 Mn to USD 150 Mn. The concession will be for 20 years, in addition to three years for construction. The government has 6.1 Ha of land available for the proposed facility.

Developers receive tipping fees to dispose of waste, paid by the local government, and calculated based on the weight of the garbage. The fees are capped at IDR 500,00 (USD 34) per tonne. They also receive a fixed feed-in tariff for energy supplied to the grid, at more attractive rates than are generally available to renewables developers.


IB VOGT AND QUANTUM TO BUILD 220 MW SOLAR PROJECT IN SULAWESI

German renewables developer IB Vogt and Singapore's Quantum Power Asia will develop a 220 MW solar project in Indonesia's Sulawesi region for Australian miner Nickel Mines. The ASX-listed company will buy power for 25 years at a fixed tariff for its facilities in the Hengjaya Mine area, at Morowali Regency in Central Sulawesi.

The project will be the first phase of a planned 1 GW solar asset to be built and financed by Quantum for the Sydney headquartered company. The Hengjaya development is expected to move forward quickly without any major obstacles to its implementation.


SINGAPORE AND INDONESIA TO JOINTLY DEVELOP CENTRAL JAVA PORT

Indonesia and Singapore plan to develop an international container port in Central Java province in Indonesia.The facility will be capable of handling 400,000 twenty-foot equivalent units (TEUs) initially, which will gradually rise to 1.5 million TEUs as demand grows.

Companies from the two countries have completed feasibility studies on potential sites, and a proposal has been made to the central government in Jakarta.The port is being considered a strategic, national project, and discussions are underway to appoint a local company to partner Singapore for developing the asset.


SNV NETHERLANDS AGREES ASSISTANCE FOR INDONESIA WATER SUPPLY PROJECT

The Hague-headquartered not-for-profit SNV Netherlands Development Organization (SNV) has signed an agreement for a grant and technical assistance with water and wastewater solutions provider N-Three.

The pact aims to support improved water supply in West Java in Indonesia, the initiative is expected to mobilise EUR 12 Mn (USD 12.8 Mn) in private capital.


June 2022

CHINA'S SINOSURE BACKS USD 1.2 BN INDONESIA HYDRO PROJECT

Sinosure is looking to provide a credit guarantee for the 510 MW Batang Toru hydropower project in Indonesia. The guarantee will help the USD 1.2 Bn project - which is in the early stage of construction - secure Chinese bank loans.

The project, located on the Batang Toru River in Sipirok Village of the South Tapanuli Regency, will use the concept of a run-off hydro system. It will be commissioned in 2026. The power plant will produce 2,214 GWh annually and meet 15% of the peak load electricity needs of North Sumatra province.

In September 2015, PT North Sumatra Hydro Energy - the project’s previous owner - signed a power purchase agreement (PPA) with the Indonesian state utility PT PLN (Persero).


INDONESIA WASTE PROJECT TO SECURE FINANCIAL CLOSE THIS YEAR

The Legok Nangka waste management public-private partnership (PPP) project in Indonesia is expected to reach financial close by the end of the year. The project has a capex of USD 275 Mn and is currently in pre-qualification phase.

The project, which has a 20-year concession, aims to process up to 2,131 tonnes of waste per day, gathered from six municipalities in West Java. It will be implemented in the design, build, finance, operate, maintain (DBOFM) model.

Other projects in pre-qualification phase include The Proving Ground, a USD 120 Mn project in Bekasi city on a design, build, finance, maintain and transfer (DBFMT) model. The government of Indonesia is looking to tender several new PPPs in the next 12 months. The list includes the Singkawang Airport and Borobudur Authority Zone projects, both of which will be tendered in the DBFMT model. The airport is estimated to cost USD 114 Mn and the Borobudur Authority Zone about USD 13.8 Mn.


INDONESIAN TOLL ROAD SECURES ISLAMIC DEVELOPMENT BANK FINANCING

The Indonesian government has signed an agreement with the Islamic Development Bank (IsDB) for financing the construction of road projects.

The bank will provide USD 150 Mn of the total construction cost of USD 450 Mn for the Trans South-South Road Infrastructure Phase 2 (TRSS-2). The loan will be in accordance with Islamic Sharia principles.

The project involves the construction of roads in the East Java and DI Yogyakarta provinces. One of these will be a 68 Km tolled facility passing through the districts of Tulungagung, Blitar, Malang and Bantul. It will include a 443 metre bridge.

The IsDB has previously financed the first phase of the TRSS project with a loan of USD 250 Mn.

 

List of Key Transactions - Indonesia Q2-2022

Source: YOG INFRA analysis, Subscription databases

 

ABOUT YOG INFRA

Our objective is to drive economic growth and make positive social impact through sustainable infrastructure development. ​

YOG INFRA is an infrastructure focused financial advisory firm. We work with Developers and Development Finance Institutions (DFIs) and help them make informed investment decisions across infrastructure development lifecycle.

With our offices in Singapore and India, we work on projects globally, and the team brings strong experience in supporting development of infrastructure projects.


For more information about us, our service offerings and team, please visit www.yoginfra.com Contact us at info@yoginfra.com


©2022 YOG INFRA. All rights reserved.

#infrastructure #update #PPP

194 views0 comments