Infrastructure & PPPs in Indonesia - Q3 2021 Update
INDONESIA is developing large scale infrastructure projects under PPP mode, across multiple traditional infra sectors like transport, renewable energy, WASH as well as emerging technology infra to build data centers. There is notable interest from international investors who are hoping for conducive regulatory environment given the demand potential in the country.
Read more about key developments in Infrastructure and PPPs in Q3 2021 in Indonesia in our latest insight.
INDONESIAN FIRM PLANS 1,580 SMALL DATA CENTERS IN JAVA
Jakarta-listed digital infrastructure investor Solusi Sinergi Digital (Surge) plans to develop a total of 1,580 small data centers across Java island by the end of 2022. Surge will develop 580 edge data centers in 2021 and the remaining in 2022. The facilities - also called edge data centers - will be located close to end-users and are designed to reduce latency as well as increase internet speed.
The data centers will have a total capacity of 2 to 20 server racks and a total power capacity between 100 kWh and 300 kWh. They will be located in warehouses and train stations across the island. The company has budgeted a capital expenditure of IDR 400 Bn (USD 28Mn) for the year. The capex will be financed using bank loans and the company's earnings.
BERKELEY FINANCES INDONESIAN SOLAR PROJECT
Berkeley Energy has borrowed USD 20Mn to fund the Quantum and Sambelia solar project in Indonesia. This is Indonesia's first project financing of a utility-scale solar project. Société Générale was lender, hedging bank and agent in connection with the financing.
PLN, the state-owned power company, recently made a commitment to achieve carbon neutrality by 2060. In September 2020, UOB Thailand agreed to lend THB 1.26Bn (USD 42Mn) to developer BECIS-Symbior for seven years to finance the construction of a 75 MWp commercial and industrial solar portfolio.
BECIS is a distributed energy company owned by Berkeley Energy, FMO, Siemens and Nordfund-KLP. Symbior Solar is a Thai solar developer and BECIS-Symbior is a joint venture between the two, 70% owned by BECIS.
SUNSEAP SEEKS EQUITY PARTNERS FOR USD 2BN FLOATING SOLAR PROJECT
Temasek Holdings-backed renewables developer Sunseap is seeking equity partners to develop a USD 2Bn floating solar and energy storage project in Indonesia. Around 25%-30% of the project cost will be financed through equity. The company is planning to develop a 2.2 GW renewables project on Indonesia's Batam island, near Singapore.
Floating solar projects are becoming a popular alternative to traditional solar projects in the region, as they allow investors to bypass land acquisition processes. A floating solar project in Singapore developed by Sunseap began commercial operations in March 2021.
INDONESIA WATER SUPPLY PROJECT REACHES FINANCIAL CLOSE
A IDR 750Bn (USD 51Mn) water supply PPP in Indonesia's Pekanbaru City has reached financial close after receiving a loan facility from two local infrastructure financing institutions. ADB and IFC backed Indonesia Infrastructure Finance (IIF) and Ministry of Finance-owned Sarana Multi Infrastruktur (SMI) provided a syndicated facility totalling IDR 337Bn to the project.
Indonesia is preparing to bid out several water projects to increase supply across the country, including the upcoming IDR 2trn Jatigade facility in West Java.
MASDAR-BACKED INDONESIAN FLOATING SOLAR PROJECT REACHES FINANCIAL CLOSE
The Cirata 145 MW project - Indonesia's first utility-scale floating solar power farm - has reached financial close. International lenders including Sumitomo Mitsui Banking Corporation, Societe Generale and Standard Chartered Bank provided debt finance for the project.
The farm, located in West Java province, is being developed by a joint venture between Abu Dhabi-based renewables company Masdar and a unit of Indonesian state-owned utility PT PLN. The Cirata floating solar project, set to be the largest of its kind in Southeast Asia and one of the biggest in the world, is estimated to cost IDR 1.8trn (USD 125Mn).
Currently being constructed on 225ha, the project is scheduled to begin commercial operations by the fourth quarter of next year. It will power about 50,000 homes and offset 214,000 tons of carbon dioxide emissions. It will sell power to PLN at 5.8 US cents per KwH under a 25-year power purchase agreement.
WARBURG PINCUS-BACKED PRINCETON PLANS JAKARTA DATA CENTER
Singapore-based Princeton Digital Group plans to expand its data centre operations in Indonesia by building an additional 22 MW facility in Jakarta. The Jakarta Cibitung 2 project will cost an estimated USD 150 Mn, It will be built within a campus that houses the operational Cibitung 1. The facilities will have a combined capacity of 35 MW.
The new data center will serve global cloud companies as well as domestic internet firms.
INDONESIAN AGRICULTURAL FIRM TO DEVELOP 37 MW SOLAR PROJECT
Indonesian agricultural company and food producer Widodo Makmur Perkasa Group plans to build a 37.7 MW solar rooftop project. It has appointed local developers Sun Energy and Agra Surya Energy to construct the project. It will begin commercial operations by the first quarter of 2022. A total 158 MW of its energy consumption will be provided by clean energy sources in the year 2026.
INDONESIA GOVERNMENT SEEKS CONSULTANTS FOR GREENFIELD PORT PPP
The Indonesian government is seeking financial and technical consultants for a project to develop a IDR 3.3trn (USD 231Mn) greenfield port PPP near the city of Palembang in Sumatra. The New Palembang Port project is set to be completed by 2023. It will have a concession period of 50 years.
It will support the trade of South Sumatra commodities, including coal, rubber and fertilizers. It will replace the port of Boom Baru, located within Pelambang.
INDONESIAN AIRPORT SEEKS PARTNERS FOR USD 1BN AEROCITY
Indonesia is seeking investors to develop a IDR 14.4trn (USD 1Bn) aerocity in the Kertajati Airport, in West Java province. The 3,480ha. project will include a logistics hub, a business park, a residential area, an IDR 2.5trn aircraft maintenance, repair and overhaul (MRO) facility and a creative technology center.
The MRO facilities are set to serve both commercial and military planes. Investors can invest in specific projects within the aerocity.
Several airports in Indonesia are seeking investment partners to develop new facilities. State-owned airport operator Angkasa Pura I is seeking partners to develop a IDR 3.8trn mixed-use development near Bali's I Gusti Ngurah Rai International Airport and a IDR 5.1trn aerocity project next to the Yogyakarta International Airport.
INDONESIAN INDUSTRIAL PARK SEEKS CHINESE INVESTORS FOR SOLAR PROJECTS
The proposed Java Integrated Industrial and Ports Estate (JIIPE) in Indonesia is seeking Chinese investors for clean energy projects. The 3,000ha industrial park in Gresik, East Java, plans to develop rooftop or floating solar projects atop seven water reservoirs and industrial properties.
JIIPE, which is carrying out feasibility studies on the solar development options, also plans to build water collection and storage facilities to harvest rainwater for industrial use. The park plans to develop alternative energy supply facilities using power generated from LNG terminals. The project is scheduled to become operational within five years.
It will also look to source all its water from recycling facilities and use power generated from natural gas with a net-zero emission target.
INDONESIA SEEKING INVESTORS FOR USD 3BN PORT PROJECTS
Indonesia is offering two port projects with a total value of almost USD 3Bn to investors. The projects include the USD 2.6Bn upgrade of the Bitung Port, in North Sulawesi province, and the USD 375Mn expansion of the Sorong Port, in West Papua province.
The Bitung Port project involves developing a new multipurpose port and the upgrade of the existing container port, as well as the reclamation of several ponds for the development of new container docks. The Sorong Port project will involve the upgrade of a passenger terminal.
INDONESIA HAS SIX PPP PROJECTS ON MARKET FOR INVESTORS
The country has six ready-to-offer projects for investors, with a total value of USD 1.9Bn. They include:
The USD 127Mn Singkawang Airport greenfield project, in West Kalimantan province;
The USD 1.24Bn Batam-Bintan bridge development;
The construction of a USD 120Mn waste-to-energy facility in the city of South Tangerang;
The building of a USD 198Mn waste-to-energy facility in the city of Semarang;
The development of a USD 121Mn waste treatment facility in Yogyakarta City;
The provision of a USD 79Mn Kuta Integrated Utility Panel in the city of Kuta, on Bali island.
List of Key Transactions - Indonesia Q3-2021
List of Upcoming Projects - Indonesia Q3-2021
Source: YOG INFRA analysis, Subscription databases
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