Indonesia is very rich in sector such as natural resources, also has a strategic position in international commerce and logistic line, and also attracted as international tourism destination.
So Indonesia government, encourage to develop economy through develop projects in those sectors. The projects funding come from state budget, project financing, bond, private and state owned companies, and also private public partnership with government.
The National Strategic Project (PSN), for infrastructure worth Rp. 586 trillion, is being processed, with Rp. 100 trillion of which will be funded by the Government’s Non-Budget Investment Financing (PINA).
The biggest National Strategic Project is by PT Waskita Toll Road worth Rp 148 trillion. While a number of other National Strategic Projects are Probolinggo-Banyuwangi Toll Road worth Rp 23 trillion, Development and Management of 4 Airports Rp 1.38 trillion, BIJB Kertajati and Aerocity Development Rp 3.10 trillion, Canal and Ports Development Rp 5.50 trillion, Indonesian PPP Satelite Telecommunication Project Rp. 6.30 trillion. Other smaller projects are, Shift Lift Project is worth Rp. 0.89 trillion, Rp. 1.60 trillion Rolling Stock Manufacture Expansion, Rp. 0.21 trillion Integrated Tourism Area, R80 Aircraft Development Rp. 23.70 trillion, and Manufacturing Expansion of N219 Aircraft – Development of the N245 Aircraft worth Rp. 5.90 trillion.
Besides strategic project, there are also the National Non-Strategic Projects included Cikunir-Ulujami Toll Road worth Rp 25 trillion, Solo-Yogya-NYIA Road Toll Rp 22.50 trillion, Affodable Housing Projects Rp 20 trillion, Nipa Island Oil Stage Rp 5.30 trillion, Trans Sulawesi Railways Rp 1 trillion, Biomass Power Plant Rp 0.45 trillion, Waste of Energy Power Plant Rp 0.33 trillion, and Mentawai Off-Grid Biomass Power Plants Rp 0.41 trillion. In addition, Development of Commercial Segments were Rp. 1.70 trillion and Hangar Development was Rp. 0.42 trillion.
AMARTA CONSULTING ( www.business-indonesia.com and www.ijintender.co.id ) in cooperation with TENDER INDONESIA ( www.tender-indonesia.com ) providing services for clients to get complete project information, and giving consultancy for any business license required to do the project in Indonesia.
Business Project Sector by TENDER INDONESIAData developed and updated regularly by : http://www.tenderindonesia2.com
Oil and Gas Overview
Based on the data, there are 255 blocks of oil and gas working areas in Indonesia. With details of the areas are 134 onshore, 83 offshore blocks, and there are 34 blocks above that are partially onshore and offshore. The 2018 spending for expenditure of oil and gas activities is US $ 9.3 billion. It was much lower than US $ 20 billion at its peak in 2014. But the better price of oil is expected to return the desire for investing more. The daily oil production is 778,800 barrels per day, while gas production is 7.78 million mscfd (metrik square cublic feet daily).
The Indonesia oil and gas block consists of 87 exploitation blocks and 119 exploration blocks. Where for all of the exploitation, there are 73 blocks in the production stage, and there are 14 blocks in the development phase. Meanwhile for oil and gas exploration, there are 88 blocks in the exploration phase and 31 blocks in the termination stage. While for the non-conventional block (coal methane CBM) consists of 43 active blocks and 6 blocks of termination stage.
Coal Mining Overview
Mining in Indonesia is a big business of searching, investigating, mining, processing, selling minerals and rocks, that have economic significance.
MINING CLASSIFICATION IN INDONESIA
Is a type of mine that has strategic value for the security of the country, for example:
the extraction of energy sources namely coal, petroleum, uranium.
It is a mine that has a vital value and affects the lives of many people, such as iron, nickel, gold, copper, etc.
Is that intended for industrial materials such as limestone, andesite, marble, quartz, etc.
Indonesia has 26.2 billion tons of coal reserves. The production reaching 461 million tons per year.
The main producing areas of coal are Southern Sumatera and Kalimantan, especially East Kalimantan and South Kalimantan. Indonesia is the largest exporter of coal with a thermal type (used to fuel steam power plants). Coal is transported using either trains (southern Sumatera), or via tug and barge through rivers in Kalimantan. Then transhipment to a large ship by using floating crane.
Tin and Other Mining Overview
Indonesia’s tin reserves have been even exploited before independence. And continues now with being managed by a state-owned company, Timah Tbk. Its reserves reach 1.1 million tons. The largest reserves are in Bangka Belitung, which is 801,000 tons. While in the Riau Islands there were 328,000 tons.
Geothermal energy resources in Indonesia are estimated at around 28.5 Giga Watt electrical (GWe). Indonesia one known as of the largest geothermal resources in the world. This potential is spread in 331 points.
Currently the geothermal resources utilized have reached 1,948.5 MW consisting of 13 Geothermal Power Plants (PLTP) in
11 Geothermal Work Areas. In 2018 there is additional capacity added with the operation of a 30 Megawatt Unit I Geothermal Power Plant (PLTP) Karaha Unit I and a Sarulla III PLTP of 110 Megawatts.
Then it followed at the end of 2018, Sorik Marapi Modullar I PLTP with a capacity of 20 Megawatts and unit II with a capacity of 30 Megawatts. Also the Balai Unit I PLTP has a capacity of 55 Megawatts.
Power Plant, Transmission & Distribution Overview
Electricity in Indonesia is provided by PLN as a State-Owned Enterprise (BUMN). As for private investors, they can participate in the power plant side. This is where the electricity is then sold to PLN through a PPA (Power Purcahse Agreement).
Solar Power Plant Overview
Conditions in Indonesia strongly support the development of solar-power. This is because the intensity of solar radiation in Indonesia is relatively high and stable, so the solar module gets optimal power throughout for the full year.
The government it self is encouraging the development of clean energy solar power, and at the same time that is overwhelmed by the continued decline in the price of solar panels and storage (batteries).The target capacity of photovoltaic solar power plants (PLTS) in 2025 is 6,400 Megawatts (MW). At present, the installed capacity of PLTS is only 80 MW. So there are still very broad to be achieved.
Hydro Power Plant Overview
Indonesia has huge potential to develop large hydro renewable energy. Hydro energy is cheap and also very environmentally friendly because it does not produce pollution and not produce greenhouse gases.
Hydropower potential in Indonesia reaches 75,000 MW. Currently, the installed capacity of hydro-based power plants reaches 4.755 MW, or only 4% of its potential.
Mini Hydro Power Plant Overview
According to one survey, there are 266 potential mini hydro power plants (PLTMH) with a total capacity of 1,200 MW. This is because of the large number of river and small rivers in Indonesia. Until now the realization of the construction for the mini hydro power plant is still very small. Even do not reach 50 units has finished construction. The rest is still in the power purchase agreement process, and many more even are just at the proposal submission stage. So that the potential for development is still very large.
Wind Power Plant Overview
Indonesia has the potential for wind as an energy source. Several regions have been surveyed and are ready to be developed as wind energy fields.
WIND ENERGY POTENTIAL
Based on the analysis that has been carried out, the wind energy field with electricity potential above 100 MW is located at :
- Sukabumi – West Java (170 MW)
- Garut – West Java (150 MW)
- Lebak and Pandeglang – West Java (150 MW)
- Lombok – West Nusa Tenggara (100 MW).
Other regions also have the potential for wind energy fields, although not more than 100 MW. Some of the regions are Gunung Kidul (10 MW), Bantul (50 MW), East Belitung (10 MW), Tanah Laut (90 MW), Selayar (5 MW), Buton (15 MW), Kupang (20 MW), Timur Tengah Selatan (20 MW), and East Sumba (3MW). Then, Ambon (15 MW), Kei Kecil (5 MW) and Saumlaki (5 MW).
Road Highway Overview
The Ministry of Public Works and Public Housing (PUPR) of Indonesia, requires large funds to build the road connectivity. The required funds amounting to Rp 931 trillion between 2015 – 2019. The main target is to build 2,650 km of new roads, build 1,000 km of toll roads (highway) and renewal of 3,072 km of arterial roads.
In 2019, Jasa Marga targets to operate 200 kilometers (km) of new toll roads. While until the end of this year JSMR was ready to operate a total of 998.4 km of toll roads.
As of 2015, the toll length they operate is only 590 km.
Public Waste, Sanitary & Drinking Water Facility Overview
For handling public waste, sanitary and drinking water infrastructure programs, the need for construction funds is Rp. 128 trillion. The idea is to achieve a policy of “100-0-100, namely 100 percent access to drinking water, 0 percent slums, and 100 percent sanitation” in 2019 .
Indonesia has so many beautiful places to visit, even recognized by most tourist as heaven on earth. The charming of its culture and also the hospitality of the peolle, already well known abroad. Nowdays tourism is hugr business. Statistically show now tourism roles for 15 % of Indonesia GDP. Generate Rp. 275 Trillion turn arround in business. Also tourism sector hire 19 million worker. And in 2019 expexted will be 20 million overseas tourist visit and 275 million time domestic traveling tourist.
One of the transportation infrastructure that is being speeded up, is the airport. Given that Indonesia has a population of more than 260 million people with a geographical more than 13.000 islands. Then air transportation is an absolute necessity, and this means the need of development and expansion for more airports.
Train & Railway Overview
Indonesia since 2014 has been very aggressive in building rail transportation infrastructure. Until 2018, the target for all the railroad in Indonesia is 3,258 km (including the existing). The railway investment target until 2030 will be reached Rp 605 trillion. The ratio of funding is through 30% Government investment and 70% Private Sector.
Crude Palm Oil (CPO) Overview
Indonesia is the largest palm oil producer in the world, with an area of 11.91 million hectares. Based on production data, it was 33.56 million tons of CPO in 2016 and is expected to increase to 39 million tons in 2021.
Indonesian palm oil production mainly comes from six provinces which contribute 74% to the total Indonesian palm oil production. The provinces are Riau (24%) and North Sumatra (17%). The next ranks were Central Kalimantan (11%), South Sumatra (9%), West Kalimantan (7%), and Jambi (6%). The use of palm oil for domestic non direct consumption reached 4.2 million tons in 2015.
Meanwhile, Indonesian palm oil’s domestic non consumption allocated to processing industries such as margarine, cosmetics, biodiesel and others is projected to be 14 million tons in 2021. I Meanwhile, 23 million tons CPO for export.
Sugar cane plantations in Indonesia are mostly cultivated by the people as raw material for making sugar. Until 2015, sugar cane plantations for sugar in Indonesia can only be found in 9 provinces, namely North Sumatra, Gorontalo, Lampung, South Sumatra, West Java, DI Yogyakarta, Central Java, East Java and South Sulawesi. Among those 9 provinces, in 2012-2017, East Java is the largest sugarcane producer in Indonesia with the contribution of sugar cane from East Java reaching 48% of Indonesia’s sugarcane production.
Indonesian sugarcane production (as measured in the form of crystalline sugar) in 2016 reached 2.2 million tons from 444.220 ha of sugarcane harvested area. The consumption of sugar in Indonesia in the same year based on the survey results reached 7.5 kg / capita. When viewed on the side of sugar cane trade between countries, Indonesia is known as a sugar importing country. Nevertheless, Indonesia is listed as the eleventh largest sugar producer with the seventh largest harvest area in the world. Sugar consumption in 2018 amounted to 5.088.201 tons and in 2021 is estimated to reach 5.260.479 tons so that a deficit of sugar supply in Indonesia is expected to be about 4 million tons.
Petrochemical Plant Overview
Lack of upstream production for chemicals, making Indonesia highly dependent on imports.
Chemical material needs for its domestic 5.6 million tons per year, almost half of which had to be imported.
So investment in the petrochemical sector, is urgently needed to meet this domestic market demand.
Steel Plant Overview
Based on data from the Indonesian Iron and Steel Association (IISIA), investment is currently grow in Indonesia’s steel industry. The prospect of the metal industry subsector is very promising, because of the still low national steel consumption per capita. So that the growth is still very large. In 2018, domestic steel demand is predicted to increase 3.5% to 14.5 million tons, this is driven by so many infrastructure projects. While the capability of the national capacity steel industry is only 8 million tons per year.
While viewed from a regional perspective, national per capita steel consumption is only 46 kilograms (kg). Compare that with neighbour country Malaysia which has penetrated 400 kg per capita, Thailand is above 300 kg per capita, and even Vietnam is close to 200 kg per capita. IISIA predicts the domestic steel market will grow through 20 million tons by 2020.
Otomotive Plant Overview
In terms of car sales of 1.1 million units, and installed production capacity of 2.2 million units, Indonesia is the largest in ASEAN. Even reaching a one to third of the total ASEAN market.
Currently, there are 36 companies engaged in the production of cars, which consists of distributors and manufacturers.
Also there are 1,500 companies producing various components. The value of investment in the automotive sector is also large, for example in 2017 it reached Rp 16.5 trillion.