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City to intensify efforts to build ‘Port of Jakarta’

The Jakarta administration, in cooperation with the Dutch government, is drafting the design of an international port, dubbed the Port of Jakarta, which will be built on three man-made islets, part of the city’s controversial reclamation project.

Jakarta Governor Basuki “Ahok” Tjahaja Purnama said after closing a one-week workshop on the development of the islets and the port at City Hall on Friday that the city, assisted by experts from the Netherlands, would start to design the three islets, which would be named O, P and Q, as well as preparing for other administrative steps in realizing the project.

Ahok said several private companies, including those from the Netherlands such as Rabobank, had expressed an interest in investing in the project, which is expected to cost roughly Rp 134 trillion (US$9.7 billion).

“For the operation, city-owned property developer PT Jakarta Propertindo [Jakpro] will cooperate with state-owned companies like port operator Pelindo II and the operator of the industrial zone in North Jakarta, PT Kawasan Berikat Nusantara,” he said.

He added that the city administration would also form an asset management company. “We will start the construction in 2016,” Ahok said.

The governor said that since building the port would not necessarily be lucrative, the city administration would guarantee that it would buy back the islets from the companies that would construct them.

He said further cooperation and construction design would be handled by Jakpro. Ahok said he chose Jakpro because all the shares in the company were owned by the city administration. “A private company is also faster in executing projects such as drawing up the detailed engineering design,” he said.

He added that if the project was handled by a city-owned company it would be unaffected by him potentially leaving office in 2017.

Jakarta Development Planning Board (Bappeda) head Tuty Kusumawati said the workshop was aimed at providing input during the previsibility studies for the Port of Jakarta. “It is the follow up to our meeting in Rotterdam,” she said, referring to Ahok’s recent official visit to that city.

Tuty said the city preferred cooperating with Rotterdam entities because they were known worldwide for their skills in building and operating ports. She said that in order to speed up the construction process, the city administration needed to make changes in terms of policy and regulation.

Tuty said the city administration would revise Bylaw No. 1/2012 on spatial planning as the shape of the islets would be changed. “The position of the O, P and Q islets were initially parallel. However, they [Dutch consultants] proposed merging the O and P islets, so the shape will be longer toward the north,” she said.

Tuty added that the construction of the islets in the initial position was cheaper, at only Rp 62 trillion. “However, we prefer the second scenario as we need a deep sea port,” she said.

According to the Bappeda head, the current depth of the port was only 8 meters while the new design would be 16 m.

Tuty said the city administration would also revise the Open Green Space (RTH) quota on each island , which previously was 30 percent, to only 5 percent.

“It [30 percent RTH] is not economically viable,” she said, adding that since the islets would be dedicated for ports, they did not need significant green spaces.

The reclamation project in Jakarta Bay has been condemned by experts and activists. They say it will affect the environment and endanger the livelihood of 16,000 fishermen who depend on the sea off Jakarta’s coast.

The city administration has issued two construction permits for the islets and will soon issue permits for the others.



Port of Jakarta Constructed by the End of This Month

PT Pelabuhan Indonesia (Pelindo) II and Jakarta Provincial Government (Pemprov) will initiate the development of an integrated port on reclaimed islands named Port of Jakarta by the end of this month.

Pelindo II CEO, Richard Joost Lino, said it was initiated by planning the signing of MoU about Marunda Nusantara Berikat Nusantara (KBN) restructuring between Pelindo II and PT Jakarta Propertindo (Jakpro).

According to him, 500-hectare Marunda KBN restructuring will change share composition of the area into 76% by Pelindo II obtained from Financial Ministry and 24% by Jakpro obtained from Jakarta Pemprov.

“Numerous ex-factory locations in KBN left by investors will be functioned as logistic centers,” he said in the sidelines of 6th Singapore Infrastructure Financial Summit in Singapore on Tuesday (10/20).

Lino explained KBN restructuring is the initial phase to realize Port of Jakarta comprising Tanjung priok Port, New Tanjung Priok (Kalibaru) Port, and several reclaimed islands namely O,P, Q, M, and N in Gulf of Jakarta.

He planned to build a logistic hub in Jakarta to compete with Singapore. Currently, Singapore has obtained revenue from spare part storage for industrial equipment worth USD 4 billion a year.

The market opportunity will be obtained through Port of Jakarta concept.

“Moreover, the vessel capacity in Jakarta will be very big. This concept is suitable for 60 to 100 years later,” he added.

Port of Jakarta concept, he asserted, would realize the alliance plan between Pelindo II, Jakpro, and Port of Rotterdam, Netherland. The Dutch investor has networks and experience in port management and logistic hub.

So far, Port of Jakarta’s business model to be conducted by the three entities is still under discussion. However, Lino said Pelindo II might be the majority shareholder of 51% and Jakpro would have 49%. Another model enables both entities to have shares below 50% each and Port of Rotterdam will have the rest 5%.

“If everything runs well, I think we can start the project next year. Currently, the team from Rotterdam has come and conducted analysis,” he added.

Lino explained Port of Jakarta concept has been discussed with Jakarta Governor, Basuki Tjahja Purnama, when he visited Netherland last month.

Jakarta Provincial Government (Pemprov) has planned to establish a joint venture to realize the construction of port and logistic areas on reclaimed islands named Port of Jakarta.

Making an Alliance

Meanwhile, Jakarta Development Planning Agency (Bappeda), Tuty Kusumawati, said state-owned enterprises (BUMN) and Jakarta-owned enterprises would be asked to join the project.

Jakarta-owned enterprises to be involved are Jakpro, PT KBN, PT Pembangunan Jaya, and PT Pembangunan Jaya Ancol Tbk (PJAA).

“We plan to build new port and logistic areas on four reclaimed islands namely N, O, P, and Q. If the project is realized, Port of Jakarta will be the most advanced and integrated area in Asia,” she said.

Currently, the management of four islands is owned by different BUMNs and BUMDs. Pelindo II has management rights for island N and PT Jakpro is for island O.

On the other hand, P and Q island management rights is owned by PT Kawasan Ekonomi Khusus (PT KEK) with 25% share is owned by PT Jakpro, 25% is owned by PJAA, and the rest 50% is owned by PT Pembangunan Jaya.

According to her, Port of Jakarta development cannot be conducted if each company moves on their own.

Moreover, building an international port on reclaimed islands needs great investment.

“The joint venture concept is conducted by Netherlands when it built Port of Rotterdam with 30% share owned by its central government and the rest 70% owned by Rotterdam people. We think this scheme can be implemented for Port of Jakarta,” she explained.

Currently, Tuty said her office was creating a business concept related with Port of Jakarta development. According to the plan, Jakarta Bappeda as well as related BUMNs and BUMDs will meet reclamation and port infrastructure experts from Netherlands to discuss the matter.

“It aims to discuss the joint venture and business plan. We are preparing many things before conducting feasibility study,” she added. (Ags/Mhf)



Greater Jakarta: City, SOEs to build Port of Jakarta

JAKARTA: The city administration will work together with state port operator PT Pelindo II and North Jakarta industrial zone operator PT Kawasan Berikat Nusantara to develop an integrated seaport called the Port of Jakarta.

Governor Basuki “Ahok” Tjahaja Purnama said that the Port of Jakarta would be developed on five of the planned 17 man-made islets off the city’s north coast, which he referred to as islets M, N, O, P and Q.

“We want this port to be integrated, just like the Port of Rotterdam in the Netherlands. The Port of Rotterdam is dubbed the heart of Europe and we want the Port of Jakarta to be the heart of Asia,” Ahok told reporters at City Hall on Friday.

He further said that during a recent official visit to the Netherlands, the city of Rotterdam had agreed to cooperate with Jakarta in developing the port.

“Rotterdam will be our strategic partner. They have experience with land reclamation development and we can learn from them,” Ahok said, adding that the city administration would appoint city-owned developer PT Jakarta Propertindo (Jakpro) to take care of further issues regarding its development.



LOI Signed for Jakarta’s Giant Sea Wall

South Korea, the Netherlands and Indonesia have signed a letter of intent for a study on a joint realization of the National Capital Integrated Coastal Development (NCICD), also known as the ‘Giant Sea Wall’ project.

The LOI was signed in Jakarta on 3 September by vice president Choi Sung Ho of the Korean International Cooperation Agency (KOICA), deputy minister Lucky EkoWuryanto of infrastructure at the Coordinating Ministry of Economic Affairs, and deputy head of mission Ferdinand Lahnstein of the Dutch embassy in Indonesia.

Following request of the Indonesian government, Korea and the Netherlands will study the options for a joint realization of the mega-project. Based on the outcome of the study the three countries are expected to make a final decision on the start of second and third phase of this mega project.

The new study is expected to be ready in six month.

The first phase of the NCICD project has already started and concerns the enforcement and lifting of the existing flood wall along Jakarta’s coastline.

The second and third phase of the project include a $40 billion megadevelopment, construction of a 32 km long sea wall in the bay of Jakarta.

Dutch and Indonesian experts have been working on the details of the NCICD-plan since 2008, involving a Dutch consortium headed by consultancy firms Grontmij, Witteveen+Bos with subconsultants Dutch research center Deltares, architecture firm KuiperCompagnons and consultancy firm Ecorys.



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Outgoing government launches controversial sea wall project

In its last days in office, the central government has rushed to launch a controversial Giant Sea Wall (GSW) project off the capital’s north coast.

On Thursday afternoon, the central government commenced the construction of the first phase of the National Capital Integrated Coastal Development (NCICD) program, popularly known as the GSW. The project will also include a reclamation project and the development of 17 artificial islets off the capital’s north coast.

Coordinating Economic Minister Chairul Tanjung led the ceremony, with top officials, including Environment Minister Balthasar Kambuaya, Research and Technology Minister Gusti Muhammad Hatta, National Development Planning Minister Armida Alisjahbana, Maritime Affairs and Fisheries Minister Sharif Cicip Sutardjo, Public Works Deputy Minister Achmad Hermanto Dardak and Jakarta deputy governor for spatial planning Sarwo Handayani attending.

Dutch Ambassador to Indonesia Tjeerd de Zwaan, as well as representatives of developer companies, also attended the ceremony.

Chairul said during the ceremony at the Pluit pump house in North Jakarta that the groundbreaking marked the starting point for the long over-due project.

The first phase of the NCICD program comprises a 32-kilometer long embankment on the coast of Jakarta.

“One-fourth of the embankment will be funded by the government and city administration, while the remainder will be handled by the private sector,” he said, pointing out that the 8-kilometer part of the embankment would require funds of Rp 3.2 trillion (US$263 million).

Chairul said the central government and the city administration had targeted to complete their part of the project by the end of 2017. The embankment is designed to be 75 meters high, while the width of the surface planned to be 13.7 m.

The minister said the remaining parts of the embankment would be constructed by developers who won the concession of 17 planned islets, also part of the NCICD program.

The developers included city-owned property developer PT Jakarta Propertindo (Jakpro), city-owned PT Pembangunan Jaya Ancol and private developers PT Agung Podomoro Land’s subsidiary PT Muara Wisesa Samudra, PT Intiland Development’s subsidiary Taman Harapan Indah and PT Jaladri Kartika Ekapasi.

“They should also finish the project by the end of 2017,” he said, adding that the government might revoke their permits if they failed to meet the target.

The ground-breaking ceremony, however, was conducted in a hurry, according to a high-ranking official within the city administration.

“I was only told about the ceremony at the last minute,” North Jakarta Mayor Heru Budi Hartono told reporters at his office.

Heru also lamented the lack of coordination between the central government and his side.

“This project will affect around 50 residents living near the project site, but the minister never involved me in the meetings prior to the ceremony, whereas I am the one who will be responsible if there are relocations involved,” he said, adding, “I am not sure the construction can start in the near future.”

The NCICD aims to restore flood safety and provide a sustainable future for the capital.

Ahmad Syafrudin of the Committee for the Phasing Out of Leaded Fuel (KPBB), however, said it was illegal.

“The project is against the law as it does not have a strategic environmental analysis and a regional analysis on environmental impact as required when a project involves more than one regional administration,” he said.


Jakarta Not Involved in Giant Sea Wall Project

TEMPO.CO, Jakarta – North Jakarta Mayor Budi Hartono said the dredging of the eastern side of Pluit Reservoir in the giant sea wall development did not involve the municipality governments.

He added this was evident at the launch event of the project yesterday that was not preceeded with the relocation of locals in the area. “I haven’t been invited for discussions with the central government about the project,” said Heru on Thursday.

He explained that residents should have receive prior notice before the construction kicked off, and that he did not receive any information about the event until Wednesday. He said the lack of communication between the central government and his administration spelled that the relocation was his duty.

He further said it was necessary for the central and regional governments to canvass the fate of the affected residents. He added the central government must also lend a hand in establishing fishermen’s villages in other provinces to accommodate the affected residents—most of them are fishermen.

Budi said moving residents to low-cost apartments far from the sea could drastically alter their way of life. He explained one of the possible locations for the relocation is Karangsong in West Java. “The solution must be sought together,” said Heru.


Indonesia to build $263 mln sea wall to protect capital.

Indonesia on Thursday officially launched a $263 million project to build a giant sea wall along the coast of its capital, Jakarta, in an attempt to protect businesses and homes from flooding.

Last year’s rainy season brought Jakarta to a standstill, causing a river in the city to breach its banks and swamp the central business district, leaving thousands stranded and causing $580 million in damage.

With 40 percent of Jakarta already below sea level, the situation is only expected to worsen for the city of 10 million people as the ground slowly subsides due to excessive pumping of groundwater.

Fixing the flood problem was a promise of President-elect Joko Widodo during his term as the city’s governor.

“This project is a must,” chief economics minister Chairul Tanjung told reporters after a ground-breaking ceremony.

“If we don’t do anything, in 2050 Jakarta will sink due to rapid ground subsidence and rising sea level.”

The project, which was designed in consultation with infrastructure and environment officials from the Netherlands, should be able to resist high tides and rising sea level at least until 2030.

The first phase of the project government will include an 8 km (5 mile) wall along the coast, which forms the city’s northern edge. (1 US dollar = 12,180 rupiah) (Reporting by Adriana Nina Kusuma and Gayatri Suroyo; Editing by Robert Birsel)
Pemecah Ombak

Building Jakarta’s Great Wall to Prevent Flooding

Jakarta. The giant sea wall project in North Jakarta, expected to break ground in September, has received mixed reaction from urban planning experts, with one praising it as a necessary step to prevent flooding and another questioning the benefits it brings to the people and its use for the capital’s flood-prevention efforts.

Nining Indroyono Soesilo, an urban economics expert who also teaches at the University of Indonesia, supports the Rp 400 trillion ($34 billion) project, which she said would serve as a flood defense, especially when the climate and weather become extreme and unpredictable.

“Of course, we have no ability to control natural disasters. However, if we don’t take any concrete action now as a countermeasure, such as building this sea wall, the city has a high potential to be submerged,” she said on Monday.

“The vision is clear, that is, to prevent Jakarta from sinking. But [the sea wall’s] use and benefits for the people will depend on the leadership of the city and the central government,” she said.

The Indonesian government has set up the National Capital Integrated Coastal Development (NCICD) project, a joint cooperation with the Netherlands, with the goal to protect the capital from flooding caused by high tides and to develop the coastal area. The project includes building giant walls and reclaiming some land to create 17 artificial islands.

The Jakarta administration is expected to break ground on the sea wall project in September, with officials stressing that most help would come from the Netherlands and that Indonesia — lacking technological equipment — might be dependent on the European country.

Andi Baso Mappapoleonro, head of the Regional Development Planning Agency (Bappeda), said the master plan for the NCICD is expected to be finalized by the end of August and breaking ground can be expected next month.

The plan is to be led by Dutch consulting and engineering firm Witteveen+Bos, under the guidance of the project’s lead agency, the office of Indonesia’s coordinating minister for economy.

The plan involves the building of a 32-kilometer long sea wall, spanning from Teluk Naga in Tangerang, Banten province, to Tanjung Priok in North Jakarta.

The project is also expected to help reduce flooding in urban areas and rivers, which have been a perennial issue for Jakarta’s population of about 10 million people. River flow from mountains draining into the coast tend to be blocked by rising waters, which then contribute to flooding in the city.

The second stage of the development involves work on urban facilities.

Andi mentioned that the government has yet to specify the proportion of investment that will come from the private sector, the central government and the Jakarta administration.

Johannes Frederick Warouw, a spatial planning expert from the University of Indonesia, however, questioned whether building such a big project was necessary at this stage.

“This will be one of the biggest projects Indonesia has ever taken on. The problem now is whether the plan can be practically implemented as it will affect three large rivers that disembogue into the gulf,” Johannes said on Monday.

He doubts whether Indonesia needs the giant sea wall for the time being, pointing to the fact that the nation would be dependent on the Dutch government for its maintenance.

“I think we don’t really need to build one right now because the problem that will emerge later on is the maintenance. We’re not ready for it, but if we build [it], there’ll be a bigger problem in the future,” he said.

Johannes expressed concern about Indonesia’s lack of expertise in technology and people in handling the project.

“If the wall breaks, highly expensive maintenance will follow, but we don’t have the capability to repair it by our own. Hence, we’ll turn to help from foreign countries that have the technologies to fix the wall,” Johannes said.

However, Nining disagreed, saying that as Indonesia had neither money nor the technology to build such an advanced construction, it was only natural that it should cooperate with other countries.

She added that with more people moving to Jakarta all the time — placing a further burden on the capital’s resources, including fewer catchment areas due to more housing — the project needed to be implemented sooner than later.

Still, she warned against possible graft during the project, a setback that could compromise the wall’s construction quality, pointing to rampant corruption among officials.

“The community must join forces to monitor the project to prevent corruption that could destroy the whole project,” she said.

Johannes also raised concern about the fate of thousands of fishermen and their families living in the area, who depend on the sea for a living.

“We need to push for the government to provide alternative jobs for these people,” he said.

Further Coverage



Jakarta to Start With Ambitious $34b Giant Sea Wall Project

Jakarta is expected to break ground on the sea wall project, valued at Rp 400 trillion ($33.9 billion), on the city’s coastal area, in September, in a bid to prevent flooding, a high-level regional government official said on Friday.

The National Capital Integrated Coastal Development project is a joint cooperation between the Indonesian government and the Netherlands, and its goals are to protect the capital from flooding caused by high tides. Another objective of the venture is to develop the coastal area.

The project includes reclaiming some lands to create 17 artificial islands.

Andi Baso Mappapoleonro, head of the Regional Development Planning Agency (Bappeda), said the master plan for the NCICD is expected to be finalized by the end of August and ground breaking can be expected next month.

The plan is led by Dutch consulting and engineering firm Witteveen+Bos, under guidance from the project’s executing agency, the office of Indonesia’s coordinating minister for economy.

“We ask them to speed up the road map of developments, including the financing scheme and organizational structure. That was the outcome after a meeting with the team from the Jakarta governor recently,” Andi told Investor Daily.

Under the plan, a 32-kilometer long seawall will be built, spanning from Teluk Naga in Tangerang, Banten to Tanjung Priok in North Jakarta.

The project is also expected to help reduce flooding in urban areas and rivers, which have been a perennial issue for Jakarta’s population of about 10 million people.

Andi said it may take 10 years after the ground breaking for the first phase of the project to be completed.

At this stage, development will center on upgrading 30-kilometer-long ditches that Jakarta already has and creating the 17 artificial islands.

After that, the second stage of development involves working on the 32-kilometer long sea wall and the urban development facilities.

Andi said the government has yet to specify the proportion of investment from the private sector, the central government and the Jakarta municipality.

“But it all will be tendered,” he said, adding that after the master plan has been completed, the government will decide on the scheme for the tender, “whether it will be for the entire project, or per package [of smaller projects].

Source: thejakartaglobe


Dutch firms eye water, port projects

Dutch firms eye water, port projects

The Jakarta Post, Jakarta | Business | Thu, April 03 2014, 7:26 AM


A Dutch delegation headed by Infrastructure and Environment Minister Melanie Schultz van Haegen is currently on a visit to the country to explore the possibility of investing in the National Capital Integrated Coastal Development (NCICD), which is intended to protect Jakarta from the sea and facilitate an integrated coastal development possible.

The delegation includes 18 companies and organizations from the water and port sectors such as Arcadis, BAM, Boskalis, Deltares, City of Rotterdam, Grontmij, IHC Merwede, KNMI, Kuiper Compagnons, Netherlands Water Partnership, Port of Rotterdam, Royal Haskoning DHV, Simavi, STC Group, Van Oord, Witteveen and Bos.

Schultz van Haegen said on Wednesday the delegation visited Indonesia to explore the opportunities to be involved in the construction of a giant sea wall in Jakarta Bay and the reclamation of the coastal area in Jakarta as part of the NCICD programs.

She presented the draft for the Master Plan of the NCICD program to Public Works Ministry Djoko Kirmanto during a business forum in Jakarta on Wednesday.