Thought Leadership is another major area of our CSR program. It involves a number of activities aimed at creating a series of discussion forums to discuss the most pressing issues in infrastructure development and its impact on society and includes two main programs: the Infrastructure Leadership Forum and Dialogue Series.
INFRASTRUCTURE LEADERS FORUM (ILF)
Global Infrastructure Leaders Forum 2015
Opportunities and Challenges for Delivery of Infrastructure under the New Government.
Nusantara Infrastructure in cooperation with Quad Event Management held Global Infrastructure Leaders Forum (GILF) 2015, at Jakarta Convention Center, Jakarta, on March 31, 2015. The event was attended by more than 300 participants, including 30 experts in the field of infrastructure industry (from the government and private, domestic and foreign), and was covered by 15 media (print and online).
GILF 2015 with the theme "Opportunities and Challenges for the Delivery of Infrastructure under the New Government". Continuing the success of ILF 2012 and 2013, this international forum aimed to be initiator and solutions in terms of funding and acceleration of infrastructure development in Indonesia, through the synergy of private and government.
The event was opened by Ramdani Basri as CEO of Nusantara Infrastructure, and led by DR. John Scott Younger, OBE, as Director of Nusantara Infrastructure. Speakers at the GILF 2015 were Herman Dardak (Executor Unit of Regional Infrastructure Development Agency), Rudy Salahuddin (Director of Infrastructure Investment Plan - BKPM), Julian Smith (Advisor of PwC Indonesia), and Prof. Danang Parikesit (Head of the Indonesian Transportation Society - MTI).
Opportunities and Challenges of Infrastructure
The new government under the leadership of President Joko Widodo focus on infrastructure development with a target to 2019, includes access to sanitation and clean water reaches up to 100%, eliminating of slums area, Sea-Highway project development as "Pendulum Nusantara".
However, as a developing country, Indonesia still faced with a number of issues: Unequal development (concentrated in Java, Bali and Sumatra); The growth of urban communities uneven; Still lack housing construction sector, the management of water supply and sanitation; Road infrastructure has not been evenly distributed; and state investment in infrastructure has not supported the vision of the ideal.
The forum focused on the challenges facing the Indonesian government's efforts to find solutions to the constraints of infrastructure development in Indonesia, such as: synchronization of various regulations related to development of infrastructure and one-roof services to facilitate investments made by BKPM.
The main infrastructure issues discussed in the GILF 2015, namely:
- “Land Transport Connectivity”.
- “Preparing ASEAN Open Skies”.
- “The Role of Renewable Energy Solutions in Dealing with Future Energy Requirements”.
- “New Port Project Privatization”.
- “The Urgency to Develop Water Supply and Sanitation”.
Looking for Funding Infrastructure Solutions
On October 31, 2013, Infrastructure Leaders Forum (ILF) 2013 was held at Ballroom of the Four Season Hotel, Jakarta, in preparation for the implementation of the ASEAN Economic Community or integrated ASEAN market in 2015, while supporting MP3EI programs. The forum was initiated by NI in collaboration with other major sponsors, namely Pricewaterhouse Coopers (PwC), Rajawali Corpora (Express Group), Australian Trade Commission (Austrade), PT Bank Central Asia Tbk, Thiess, the Bank, ICBC and Bank of Victoria.
ILF 2013 was attended by 350 people consist of representatives of national and international private companies and governments. They discussed about the infrastructure problems in Indonesia. The economic players have complained in a long time about the lack of infrastructure. This is one of the obstacles that hinder economic growth for Indonesia, and also be a barrier for the competitiveness improving of the national economy.
The keynote speaker was from the Finance Ministry, Country Manager of the International Finance Corporation (IFC) Sarvesh Suri, and Philip Paterson, Head of Specialized Lending ANZ Indonesia. ILF 2013 also invited more than 25 infrastructure expert speakers from Indonesia and also from abroad, such as the CEO of PT Sarana Multi Infrastructure (SMI) Emma Sri Martini, Co-Head of Asia, Hastings Fund Management Grant Dooley, Trade Commissioner, Australian Trade Commission (Austrade) Julianne Merriman, President Director of PT IPC II RJ Lino, Infrastructure Director PwC Indonesia, Agung Wiryawan, and others.
John Scott Younger (Director of NI) as Conference Leader of ILF 2013 said that ILF 2013 entitled “Opportunities in Financing and Developing Infrastructure Projects in Indonesia”. Financing is one of the obstacles in the acceleration infrastructure development. The realization is very urgent. He stated that the ILF 2013’s target was to focus on the challenges faced by the Indonesian government in promoting patterns of PPP in the acceleration of infrastructure development in Indonesia.
ILF 2013 discussed some of the major problems in infrastructure. Some of them include:
- “New Funding and Financing Methods for Infrastructure Delivery and Operation” led by Julianne Merriman from Austrade.
- "Understanding the Laws and Regulations on Investment in Indonesia” and "Outlook in Seaport Development in Indonesia" led by RJ Lino, Managing Director of Pelindo II.
- "Potential and Challenges in Renewable Energy Development" by Senior Manager Sam Yahmadi Geothermal Energy of the State Electricity Supply Company (PLN).
- "Water Prospect and Its Challenges" led by Agung Wiryawan, Director of PwC Indonesia.
ILF 2013 was attended by 43 media (2 of Electronic Media, 17 of Print Media, 24 of Media Online). Exclusive Interviews were conducted by Street Times (foreign media) and a few selected of Print Media.
Infrastructure Leaders Forum 2012
Indonesia is in emergency situation. The Investors, contractors, professionals, banks and governments quickly respond to this situation.
ILF was initiated by the stakeholders of NI, and was held on November 22, 2012 at Four Seasons Hotel, Jakarta. This forum discussed innovative measures to accelerate infrastructure development in Indonesia. ILF also issued a statement and critical analysis as input for the government.
From the data released by the National Development Planning Agency, the funds needed to build the infrastructure within the next five years amounted to more than USD 140 billion. The government financial capacity was only about 35 percent of the total. The rest was expected to be obtained through the PPP program. From a total of 79 projects (USD 53 billion) there are 34 flagship projects (USD 38 billion).
Bernardus Djonoputro (ILF Conference Leader) concluded that the lack of rapid economic growth and infrastructure in Indonesia due to factors: the lack of preparation of the tenders, the rules are less clear investment, and land acquisition problem. This impacted to the investment realization in Indonesia by private companies and foreign companies.
Wahyu Utomo (Assistant Deputy of Infrastructure Regional Development and Ministry of Economic Affairs) said that the government was analysing to run innovative steps to develop new institutions for preparing viable projects offered to private investors.
NI brought the infrastructure experts and luminaries including:
- Kym Hewett - Senior Trade Commissioner of the Australian Trade Commission (Austrade),
- Maria Wahono - Director of PT Solo Ngawi Jaya, PT Ngawi Kertosono Jaya, and PT Cinere Serpong Jaya,
- Agung Wiryawan - Infrastructure Director of PwC Indonesia,
- Dr. David Ray, Director of Indonesia Infrastructure Initiative (Indll),
- Mark Rathbone - Infrastructure Cluster Leader of PwC Indonesia,
- Endy Bayuni - Senior Editor of The Jakarta Post,
- Windhu S. Hidranto, Prof. Suyono Dikun, Harun al-Rashid Lubis, from IPKC,
- Ir. Tamba Hutapea - Deputy of Investment Planning of the Indonesian Investment Coordination Board,
- John McEvoy - Director of Everything Infrastructure, Addison Consulting Group and CEO of Holistic Infrastructure Solutions,
- Peter Gemell - Director of Everything Infrastructure,
- Darwin T. Djajawinata - Senior Vice President, Advisory Division, PT Sarana Multi Infrastructure
- Tri Agus Rianto - President Director, PT Citra Wassphutowa, Chairman, Indonesian Toll Association (ATI)
- Dwianto Eko Winaryo - Technical Manager of Thiess Toll Road Company
- Yumiko Noda - PwC East Cluster PPP Leader, Former Deputy Mayor of Yokohama
- Dr. Scott Younger - OBE FICE, Commissioner, PT Nusantara Infrastructure Tbk
ILF itself is fully supported by IFC, Austrade and Everything Infrastructure, Rajawali Corporation, Indonesia Netherland Association (INA), the British Chamber of Commerce (Britcham), BCA, Nusantara Infrastructure, PricewaterhouseCoopers (PwC), as well as various news media in Indonesia. NI also held Indonesia Most Livable Cities Index Summit.
The Nusantara Infrastructure's Dialogue Series, a series of forums for professionals and business infrastructure in Indonesia, to facilitate a periodically brainstorming for stakeholders in the infrastructure sector, including investors, operators, and government technocrats. The forum is expected to be a reference to the future world of infrastructure in Indonesia.
Airport Construction in Indonesia
“What We Need to Do to Support the Rapid Growth in Air Travel"
NI held its Eighth Dialogue Series on Thursday, April 3, 2014, at the Four Seasons Hotel, Jakarta. The dialog themed “What We Need to Do to Support the Rapid Growth in Air Travel" was supported by Qeema Aviation Infrastructure, a British company (United Kingdom / UK) which has a special portfolio in the field of aviation and airports.
The forum was opened by Ben Bingham as Resident Representative in Indonesia, the International Monetary Fund (IMF) and Ramdani Basri and Scott Younger as moderators. As the topic discussed in the forum, entire airports in Indonesia were on emergency to repair. Almost of them had over capacity due to the rapid growth of the number of passengers (20%) per year.
Airport in Indonesia is expected to be able to accommodate at least 50 million passengers every day. Therefore, NI and all stakeholders hoped that all airports in Indonesia not only provide a solution with a plane ride comfort, but also capable providing aviation services with world class quality.
The speakers in this forum, including:
- Dr. Ir. Panji Indra Bastary MSP (Director of PPP Development, National Development Planning Agency - Bappenas).
- Bambang Tjahjono (Airport Director, the Directorate General Aviation, Ministry of Transport of the Republic of Indonesia).
- Lee Lawrence (Managing Director of Qeema Aviation Partners Ltd.)
- Dr. Purnomo S. Ipoeng Msi. (Director of Egis International Indonesia)
- Dr. Johnny Patta (Head of the Planning Commission of West Java - BAPPEDA)
- Mina Choi (President Director of PT Mitra Incheon Indonesia / Incheon Airport, South Korea); and others.
Innovation Is the Key Factors of Indonesian Infrastructure Project Progress
Infrastructure projects in Indonesia were on rapid progress. It required a new breakthrough by adopting sustainable innovative technology applications.
NI held its Seventh Dialogue Series on Jakarta, May 16, 2013, at the Fourth Seasons Hotel, Jakarta, in collaboration with Austrade. The dialog was attended by 220 participants from Indonesia and outside Indonesia and covered by 27 media representatives.
The dialog focused on the deal of adoption of innovative technology applications in order to overcome some of the problems, including efficiency, the application of the best standards, climate change, natural resources, and environmental stewardship. The deal was agreed by more than 200 infrastructure players and stakeholders.
Aligning Infrastructure Development and Environment
NI held its Sixth Dialogue Series in cooperation with the Embassy of Denmark, on March 4, 2013 at the Four Seasons Hotel Jakarta, Indonesia. This forum themed “Sustainability and Environmental Challenges in Indonesian Infrastructure Projects” and was opened by the Danish Minister for Trade and Investment, Pia Olsen Dyhr Majesty.
Through this discussion, the NI transition was expected to be a pioneer-oriented development environment. Furthermore, Indonesia could become the country with the green growth economy and free from dependence on fossil fuel in 2050.
The speakers were Tamba Hutapea (Vice Chairman of BKPM); Wahyu Utomo (Assistant Deputy for Housing - Deputy of Infrastructure and Regional Development, Ministry for Economic Affairs); Bastary Panji Indra, MSP (Director of PPP Development, BAPPENAS); and Teti A. Argo (School of Architecture, Planning, and Policy Development, Institute Technology of Bandung).
This forum was attended by 174 participants from private companies and government and discussed about the application and adoption of innovative, environmentally oriented, sustainable technologies in infrastructure projects in Indonesia.
Accelerating Infrastructure Development in Indonesia
NI held its Fifth Dialogue Series on February 29, 2012 at Institute Technology of Bandung. The forum focused on the growth and development of infrastructure in the province of West Java comparatively slows than other provinces on the Java Island.
To support the development of economic empowerment, it needed an optimal provision of infrastructure. Infrastructure development became relevant when linked with MP3EI program launched by the Government in 2011.
The keynote speaker was Ahmad Heryawan, as the Governor of West Java. He claimed that the viable infrastructures to be developed were Kertajati (airport), Jatiluhur (SPAM) and Bandung-Cirebon-Dawuan toll road, and Cikampek-Palimanan toll road (already running).
In addition, Agung S. Sutisno, Head of Trade and industry of West Java also conducted as a keynote speaker. Several other speakers, including:
- Frederic Pergay - Vice President of Business Development Asia, Bouygues France.
- Achmad Hertanto Anggono, MBA - ITB School of Business and Management.
- Dr. Euan Low Phd., Ceng., Csc., MICheme. - Country Manager Mott MacDonald's Japan KK.
Improving The Indonesian Port Infrastructure
The fourth Dialogue Series was held on October 30, 2011, at the Ritz Carlton, Mega Kuningan, Jakarta. The forum themed “Indonesian Ports toward a World Class Infrastructure” and highlighted the Indonesian port, in order to continue to be developed into the international level port system.
The Forum was attended by Kemal Heryandri, Director of Port and Dredging, Department of Transportation; Dr. Wahyu Utomo, Phd, Assistant Deputy for Housing; Deputy of Infrastructure and Regional Development, Office of the Minister for Economic Affairs; and Joseph Hiney, MA, Government of Ireland Scholar in Dublin City University.
The forum mentioned that the Indonesian port sector is an interesting one. Unfortunately, Indonesia has now left far behind. There are no less than 200 ports-owned, but the number of international harbours is minimal. As MP3EI 2011-2015, at least two international port will be built in Indonesia, namely in the area of Sumatra and eastern Indonesia. The existence of an international port will make the export and import squirm. In fact, the growth of marine transportation industry has the potential to grow 15-20 percent per year, from USD 300 billion to USD 750 billion in 2015.
PPP in Water Infrastructure: Highly Potential
The third Dialogue Series was held at the Grand Melia Hotel, Jakarta, on July 27, 2011. This dialogue was organized by NI, and themed “The importance of the clean water availability”.
The availability of clean water needs an attention of government immediately along with the rapid development in urban and high population growth rate. For this reason, business players, investors, government, professionals and academics held a special meeting to discuss the Clean Water Infrastructure Development in PPP pattern.
Mr. Rachmat M. Karnadi (Chairman of BPPSPAM) opened the forum. The panellists discussed a variety of innovative measures in the private and government participation to meet this challenge: the PPP partnership in water supply. PPP projects became the government’s foundation to develop the clean water for the community. Now it has registered more than 100 PPP projects in clean water with total investment requirement of USD 47 billion. Bernardus Djonoputro, Managing Director of NI argued that PPP in the field of water supply is very promising.
In addition, the regulatory aspects of the readiness of region and PDAM were absolute. The weaknesses of the PPP management in infrastructure development were caused by a lack of coordination between central and local governments.
Challenges in Land Acquisition and How to Attract Investors
The second forum was held on March 30, 2011 at the JW Marriot Hotel, Jakarta. In the dialogue NI highlighted that land acquisition is the crucial issue in accelerating infrastructure development.
As a provider of infrastructure investment in Indonesia, the slowness of the problem handling by government impacted to business. Draft Land Acquisition Bill is still not yet passed into Land Acquisition Bill. In detail, the portion of government affairs related to the acceleration of infrastructure development, including funding, land acquisition, regulation at national and regional levels, bureaucratic system, and also legal certainty.
In response, NI will routinely hold national dialogue in order to offer any thought about the acceleration of infrastructure development in Indonesia. These dialogues are expected to produce any innovative breakthrough efforts.
Accelerating Infrastructure Development
First Dialogue Series was held on January 19, 2011 at the Ritz Carlton, the forum was initiated by the exposure of the commitment of NI in developing infrastructure in Indonesia, and as NI’s invitation to involved parties and stakeholders to play an active role in contributing to develop Indonesia.
Accelerating of the infrastructure construction contracts realization, funding innovation and the certainty of land acquisition are the key points presented in this forum.
"Private interest to enter into this sector is a positive signal in the Indonesian economy. The participation of NI in developing infrastructure in various parts of the archipelago is clear evidence of our leadership in this sector," said Bernardus Djonoputro, Managing Director of NI. "The government is expected to support and be a strategic partner, so the urgent infrastructure development can be quickly realized," he continued.
The forum presented a public lecture by Prof. Jose Gomez-Ibanez of Harvard's Kennedy School of Government, one of the world experts in the field of Public Private Partnership and infrastructure development. In his presentation, He revealed that Jakarta is currently counted as inefficient city in Asia, but still has a chance to be efficient. Character as a convenient and efficient city still held in Jakarta, of which the visibility of urban greening and parks in the city center, also urban mass-transportation improvement.
In the dialogue which was attended by 160 representatives from academia, non-governmental and government institutions, it was revealed that the issue of infrastructure in Indonesia still have no the best solution.