|
Acknowledgements
|
xv
|
|
Preface
|
xix
|
|
Foreword
|
xxiii
|
|
Author biographies
|
xxix
|
|
Editors
|
xxix
|
|
Chapter Authors
|
xxx
|
|
|
|
|
|
|
|
|
1.
|
Infrastructure Investment in Indonesia — The Economic Context
|
1
|
|
C. F. Duffield, R. Duffield, and S. Wilson
|
|
|
1.0
|
Introduction to Indonesia
|
1
|
|
1.1
|
Government
|
2
|
|
|
1.1.1
|
National
|
2
|
|
|
1.1.2
|
Regional
|
2
|
|
1.2
|
Population
|
3
|
|
1.3
|
Economy
|
4
|
|
|
1.3.1
|
Investment
|
6
|
|
1.4
|
Infrastructure
|
6
|
|
References
|
10
|
|
|
|
|
|
|
|
|
2.
|
Infrastructure Planning, Challenges and Risks
|
15
|
|
C. F. Duffield, R. Duffield, and S. Wilson
|
|
|
2.0
|
Introduction
|
15
|
|
2.1
|
Infrastructure Plans
|
15
|
|
|
2.1.1
|
National Plans, Agencies and Institutions
|
15
|
|
|
|
2.1.1.1
|
Bappenas and Bappenda
|
16
|
|
|
|
2.1.1.2
|
Master Plan for the Acceleration and Expansion of Indonesian Economic Development 2011–2025 (MP3EI)
|
17
|
|
|
|
2.1.1.3
|
National Long-term Development Plan 2015–2025 (Rencana Pembangunan Jangka Panjang Nasional abbreviated to RPJPN)
|
19
|
|
|
|
2.1.1.4
|
Committee for Acceleration of Priority Infrastructure Delivery
|
21
|
|
|
|
2.1.1.5
|
Indonesian Maritime Doctrine 2014
|
24
|
|
|
2.1.2
|
International Plans
|
25
|
|
|
|
2.1.2.1
|
ASEAN (Association of Southeast Asian Nations) Connectivity Agenda
|
25
|
|
|
|
2.1.2.2
|
APEC (Asia-Pacific Economic Cooperation) Connectivity Blueprint 2015–2025
|
25
|
|
|
|
2.1.2.3
|
Master Plan of ASEAN Connectivity (MPAC) 2025
|
26
|
|
|
|
2.1.2.4
|
21st Century Maritime Silk Road Initiative
|
26
|
|
|
|
2.1.2.5
|
Indonesia-Malaysia-Thailand Growth Triangle Implementation Blueprint 2012–2016
|
27
|
|
2.2
|
Challenges, Risks and Issues Affecting Infrastructure Processes and Development in Indonesia
|
28
|
|
|
2.2.1
|
Issues and Risks
|
28
|
|
|
|
2.2.1.1
|
Corruption
|
34
|
|
|
|
2.2.1.2
|
Environmental Risks
|
35
|
|
|
|
2.2.1.3
|
Land Acquisition
|
35
|
|
|
|
2.2.1.4
|
Transaction law
|
37
|
|
|
|
2.2.1.5
|
Public Private Partnership (PPP) Process
|
37
|
|
|
|
2.2.1.6
|
Political Instability
|
39
|
|
|
|
2.2.1.7
|
Regulatory and Legal Uncertainty
|
39
|
|
|
|
2.2.1.8
|
Lack of Projects
|
40
|
|
|
|
2.2.1.9
|
Insufficient Human Capital
|
40
|
|
|
|
2.2.1.10
|
Bureaucracy
|
41
|
|
|
|
2.2.1.11
|
Economic Outlook
|
42
|
|
|
|
2.2.1.12
|
Foreign Currency
|
43
|
|
|
|
2.2.1.13
|
Dispute Resolution
|
43
|
|
|
2.2.2
|
Research into Barriers to Doing Business in Indonesia and Australia
|
43
|
|
References
|
47
|
|
|
|
|
|
|
|
|
3.
|
Funding and Financing Infrastructure: Indonesia and Australia
|
53
|
|
C. F. Duffield, R. Duffield, and S. Wilson
|
|
|
3.0
|
Introduction
|
53
|
|
3.1
|
Potential Sources of Infrastructure Financing
|
54
|
|
3.2
|
Discussion of the Specific Financing Scenarios
|
56
|
|
|
3.2.1
|
Direct Governmental Financing
|
56
|
|
|
|
3.2.1.1
|
Indonesia Infrastructure Guarantee Fund (IIGF)
|
58
|
|
|
|
3.2.1.2
|
P.T Sarana Multi Infrastruktur (Persero) (PT SMI)
|
59
|
|
|
|
3.2.1.3
|
Indonesia Infrastructure Finance (PT IIF)
|
59
|
|
|
|
3.2.1.4
|
Viability Gap Fund (VGF)
|
60
|
|
|
|
3.2.1.5
|
Land Funds
|
60
|
|
|
3.2.2
|
Direct Company Facilitation
|
60
|
|
|
3.2.3
|
Foreign Direct Investment (FDI)
|
61
|
|
|
3.2.4
|
Public Private Partnerships
|
64
|
|
|
3.2.5
|
Special Economic Zones or Preferential Concessional Loans
|
65
|
|
|
3.2.6
|
Asset Recycling
|
67
|
|
|
3.2.7
|
Discussion
|
69
|
|
3.3
|
The Market’s View as to How to Best Finance Port Infrastructure Projects: Indonesia and Australia
|
70
|
|
|
3.3.1
|
Introduction
|
70
|
|
|
3.3.2
|
Do the Current Government Policies Support and Facilitate Investment?
|
70
|
|
|
3.3.3
|
Is There Sufficient Finance to Meet the Development Demand in a Timely Manner?
|
71
|
|
|
3.3.4
|
Priority Areas Requiring Investment
|
72
|
|
|
3.3.5
|
Research Relevance to Funding and Finance
|
75
|
|
3.4
|
Concluding Remarks
|
80
|
|
References
|
82
|
|
|
|
|
|
|
|
|
4.
|
Efficient Facilitation of Major Infrastructure Projects
|
85
|
|
C. F. Duffield, F. K. P. Hui, and V. Behal
|
|
|
4.0
|
Background and Context
|
85
|
|
4.1
|
Risk Allocation and Management
|
89
|
|
4.2
|
Delivery of Infrastructure Projects: Indonesia
|
90
|
|
|
4.2.1
|
Jakarta Sewerage System (JSS)
|
91
|
|
|
4.2.2
|
West Semarang Drinking Water Supply
|
92
|
|
|
4.2.3
|
National Capital Integrated Coastal Development
|
94
|
|
|
4.2.4
|
Bontang Refinery
|
96
|
|
|
4.2.5
|
Umbulan Springs Drinking Water Supply Project
|
98
|
|
4.3
|
Delivery of Infrastructure Projects: Australia
|
99
|
|
|
4.3.1
|
Channel Deepening Project, Victoria
|
100
|
|
|
4.3.2
|
M.7 Motorway, New South Wales
|
101
|
|
4.4
|
Benchmark Practices
|
103
|
|
|
4.4.1
|
Comparative Analysis
|
106
|
|
|
4.4.2
|
Findings
|
109
|
|
References
|
109
|
|
|
|
|
|
|
|
|
5.
|
Port and Hinterlands
|
113
|
|
J. Black and V. Roso
|
|
|
5.0
|
Introduction
|
113
|
|
5.1
|
Methodology
|
116
|
|
5.2
|
Literature Review Intermodal Terminals — Concept of Dry Ports
|
117
|
|
5.3
|
Sydney’s Container Ports — History
|
119
|
|
5.4
|
Port Botany Container Terminals
|
122
|
|
5.5
|
Multi-modal Transport Access to Port Botany
|
128
|
|
5.6
|
Hinterland Intermodal Logistics Centres
|
133
|
|
|
5.6.1
|
Port Botany’s Inland Terminals Pre-2010
|
133
|
|
|
5.6.2
|
Chullora Intermodal Terminal
|
136
|
|
|
5.6.3
|
Macarthur Intermodal Shipping Terminal (MIST)
|
136
|
|
|
5.6.4
|
Cooks River Intermodal Terminal (St Peters)
|
137
|
|
|
5.6.5
|
Yennora Intermodal Terminal
|
137
|
|
|
5.6.6
|
Villawood Terminal (Leightonfield)
|
138
|
|
|
5.6.7
|
Enfield Intermodal Logistics Centre
|
138
|
|
5.7
|
Moorebank Intermodal Terminal — Detailed Case Study of Dry Port
|
139
|
|
5.8
|
Funding and Financing Port, Terminals and Transport Access
|
144
|
|
5.9
|
Conclusions
|
146
|
|
References
|
149
|
|
|
|
|
|
|
|
|
6.
|
Comparative Efficiency Analysis of Australian and Indonesian Ports
|
155
|
|
F. K. P. Hui, C. F. Duffield, A. Chin, and H. Huang
|
|
|
6.0
|
Introduction
|
155
|
|
6.1
|
Literature Review
|
157
|
|
|
6.1.1
|
Logistics and Port Efficiency
|
157
|
|
|
6.1.2
|
Indonesia
|
158
|
|
|
|
6.1.2.1
|
Port of Surabaya
|
158
|
|
|
|
6.1.2.2
|
Port of Jakarta
|
159
|
|
|
6.1.3
|
Australia
|
160
|
|
|
|
6.1.3.1
|
Port of Melbourne
|
160
|
|
|
|
6.1.3.2
|
Port of Botany, Sydney
|
161
|
|
|
|
6.1.3.3
|
Port of Fremantle
|
161
|
|
|
6.1.4
|
China
|
162
|
|
|
|
2.1.4.1
|
Port of Shanghai
|
162
|
|
|
6.1.5
|
Data Envelopment Analysis (DEA)
|
162
|
|
|
6.1.6
|
Private Sector Involvement
|
163
|
|
|
6.1.7
|
Current Knowledge Gap
|
163
|
|
6.2
|
Methodology
|
164
|
|
|
6.2.1
|
Data Envelopment Analysis (DEA)
|
164
|
|
|
6.2.2
|
Input and Output Variables
|
164
|
|
|
|
6.2.2.1
|
Crane Rate
|
164
|
|
|
|
6.2.2.2
|
Ship Rate
|
164
|
|
|
6.2.3
|
Mathematical Formulation of DEA
|
165
|
|
|
6.2.4
|
Returns to Scale Structure
|
166
|
|
|
6.2.5
|
Scale Efficiency
|
167
|
|
6.3
|
Results and Findings
|
167
|
|
|
6.3.1
|
Data Analysis
|
167
|
|
|
|
6.3.1.1
|
Port
|
167
|
|
|
|
6.3.1.2
|
Container Terminal
|
169
|
|
|
6.3.2
|
Efficiency Comparison Based on DEA Result
|
170
|
|
|
|
6.3.2.1
|
Port
|
170
|
|
|
|
6.3.2.2
|
Comparison of Container Terminals
|
172
|
|
6.4
|
Discussion
|
175
|
|
|
6.4.1
|
Indonesia
|
175
|
|
|
6.4.2
|
Australia
|
179
|
|
|
6.4.3
|
Opportunities for Future Research
|
181
|
|
6.5
|
Conclusion
|
181
|
|
References
|
182
|
|
|
|
|
|
|
|
|
7.
|
Innovation in Port Development
|
187
|
|
S. Wahyuni
|
|
|
7.0
|
Introduction
|
187
|
|
7.1
|
Port Strategic Development
|
189
|
|
7.2
|
Case Study TAMA (Japan)
|
192
|
|
|
7.2.1
|
Financial Resources
|
194
|
|
|
7.2.2
|
Five-year Action Plans
|
195
|
|
7.3
|
Conclusion
|
202
|
|
References
|
|
|
|
|
|
|
|
|
|
8.
|
Revealing Indonesian Port Competitiveness
|
205
|
|
S. Wahyuni, A. Azadi Taufik, F. K. P. Hui
|
|
|
8.0
|
Introduction
|
205
|
|
8.1
|
Literature Review
|
208
|
|
8.2
|
Methodology
|
212
|
|
|
8.2.1
|
Focus Group Discussions and In-Depth Interviews
|
213
|
|
8.3
|
Results and Discussion
|
213
|
|
8.4
|
Conclusions
|
223
|
|
References
|
224
|
|
|
|
|
|
|
|
|
9.
|
Initial Investigation into the Effectiveness of Australian Ports’ Governance and Management Structures
|
227
|
|
H. Al-Daghlas, F. K. P. Hui, and C. F. Duffield
|
|
|
9.0
|
Introduction
|
227
|
|
9.1
|
Literature Review
|
228
|
|
|
9.1.1
|
Australian Ports Reform
|
228
|
|
|
9.1.2
|
International Private Investment in Australia
|
230
|
|
|
9.1.3
|
Factors Influencing Asset Recycling in Australia
|
233
|
|
|
9.1.4
|
Typical Management Structure
|
234
|
|
9.2
|
Methodology, Results and Discussion
|
235
|
|
|
9.2.1
|
Factors Which Bring Improvement to Governance/Policy in Ports
|
235
|
|
|
9.2.2
|
Factors Acting as Obstacles to Governance/Policy in Ports
|
239
|
|
|
9.2.3
|
Factors Which Help Improve Management Structures in Ports
|
240
|
|
|
9.2.4
|
Factors Which Hindered Improvement of Management Structures in Ports
|
242
|
|
|
9.2.5
|
Significance and Future Research
|
243
|
|
9.3
|
Conclusion
|
243
|
|
References
|
244
|
|
|
|
|
|
|
|
|
10.
|
Alternative Ways to Finance Major Port Projects
|
247
|
|
W. W. Galih and R. Prijadi
|
|
|
10.0
|
Introduction
|
247
|
|
10.1
|
Literature Review
|
249
|
|
|
10.1.1
|
The Public Procurer Perspective: Public Private Partnerships vs. Traditional Procurement
|
249
|
|
|
10.1.2
|
The Private Sponsor Perspective: Corporate Finance vs. Project Finance
|
251
|
|
10.2
|
Research Methodology
|
255
|
|
10.3
|
Results and Case Study
|
257
|
|
|
10.3.1
|
Survey Results
|
257
|
|
|
10.3.2
|
Case Study of NPCT-1
|
262
|
|
|
|
10.3.2.1
|
The Existing Financing Arrangement Overview
|
264
|
|
|
|
10.3.2.2
|
Existing Scenario Simulation Under Different Per Rates And Capital Structures
|
266
|
|
|
|
10.3.2.3
|
Alternative Scenario Overview
|
269
|
|
|
|
10.3.2.4
|
Alternative Scenario Simulation Under Different Capital Structures
|
270
|
|
10.4
|
Discussion
|
272
|
|
|
10.4.1
|
Indonesian Domestic Banking Finance for Port Infrastructure Projects
|
273
|
|
|
10.4.2
|
Government Fiscal Support for Public Private Partnership Projects
|
275
|
|
|
|
10.4.2.1
|
Availability Payment
|
275
|
|
|
|
10.4.2.2
|
Viability Gap Fund
|
276
|
|
|
|
10.4.2.3
|
Government Guarantee
|
276
|
|
10.5
|
Conclusion
|
276
|
|
References
|
278
|
|
|
|
|
|
|
|
|
11.
|
The Critical Importance of Land Transport when Considering Port Development
|
281
|
|
D. Parikesit, S. Basalim, and W. W. Wibowo
|
|
|
11.0
|
Introduction
|
281
|
|
11.1
|
Land Transport and Port Access: International Literature
|
283
|
|
|
11.1.1
|
Regionalisation, Vertical Integration and Spatial Control of Commodities’ Flow
|
287
|
|
|
11.1.2
|
Intermodalities and Multi-Mode Operation of Ports: Organisational and Structural Linkage between a Port and its Hinterland
|
290
|
|
|
11.1.3
|
Traffic Congestion in and Around Ports
|
293
|
|
11.2
|
Case studies of Indonesian Ports
|
296
|
|
|
11.2.1
|
Case I: The Need to Manage Land Use and the Local-Through-Access Traffic Separation for Tanjung Priok Port in Jakarta
|
296
|
|
|
|
11.2.1.1
|
Congestion around the Port of Tanjung Priok and the Failure to Comply with Land-Use Regulations
|
298
|
|
|
|
11.2.1.2
|
Reactivation of Railway Access to Port Terminal
|
300
|
|
|
|
11.2.1.3
|
The Development of Dedicated Toll Access
|
300
|
|
|
|
11.2.1.4
|
Ensuring Control of Inbound and Outbound Traffic: Pelindo II Corporate Actions
|
302
|
|
|
11.2.2
|
Case II: Importance of Rail Traffic to Support Efficient Operation of Belawan Port, North Sumatera
|
305
|
|
|
|
11.2.2.1
|
Sei Mangkei Special Economic Zone (SEZ) and Connectivity to Belawan Port: Railway Experience
|
308
|
|
|
|
11.2.2.2
|
Belawan-Kuala Tanjung Port System and the Design of Access Traffic
|
310
|
|
|
11.2.3
|
Case III: Pelindo III Green Port Terminal of Teluk Lamong, Surabaya
|
311
|
|
|
|
11.2.3.1
|
The Design and Private Sector Initiative for Inter Terminal Freight Transport within Tanjung Perak Port
|
314
|
|
|
|
11.2.3.2
|
Competing Port Terminals and the Opportunity to Manage Container Traffic among Terminals
|
318
|
|
11.3
|
Lessons Learned from the Literature and Case Studies
|
318
|
|
|
11.3.1
|
Importance of Land Connectivity in Ensuring Lower Logistics’ Costs
|
318
|
|
|
11.3.2
|
Road versus Rail Connectivity to Ports, and the Role of Government Support for Commercial Rail Operations
|
320
|
|
|
11.3.3
|
Managing Land Uses around Ports
|
321
|
|
References
|
321
|
|
|
|
|
|
|
|
|
12.
|
Potential Infrastructure Enhancements for Ports and Cities
|
327
|
|
C. F. Duffield, S. Wahyuni, D. Parikesit, F.Hui, and S. Wilson
|
|
|
12.0
|
Overview and Conclusions
|
327
|
|
12.1
|
Future Research
|
336
|
|
12.2
|
Lessons Learnt and Policy Implications
|
338
|
|
|
|
|
|
|
|
|
Appendix
|
343
|
|
Research Methodology: Efficient Facilitation of Major Infrastructure Projects
|
343
|
|
1.0
|
Introduction and Methodology
|
343
|
|
1.1
|
Research Forum
|
344
|
|
1.2
|
Online Surveys
|
345
|
|
|
1.2.1
|
Development of the Online Surveys
|
345
|
|
|
1.2.2
|
Conduct of the Online Survey
|
346
|
|
1.3
|
Focus Group Discussions
|
347
|
|
1.4
|
In-Depth Interviews
|
348
|
|
1.5
|
Response Rates
|
349
|
|
|
1.5.1
|
Australia — Online survey
|
349
|
|
|
1.5.2
|
FGD — Australia
|
349
|
|
|
1.5.3
|
Indonesia — Online survey
|
349
|
|
|
1.5.4
|
FGD — Indonesia
|
350
|
|
|
1.5.5
|
In-Depth Interviews — Indonesia
|
350
|
|
|
|
|
|
|
|
|
List of Illustrations and Tables
|
351
|
