Study on the Makassar Toll-Road Project in the Republic of Indonesia

Study on Economic Partnership Projects in Developing Countries in FY2014

Study on the Makassar Toll-Road Project in the Republic of Indonesia

Final Report

February 2015

Prepared for: Ministry of Economy, Trade and Industry

Ernst & Young ShinNihon LLC Japan External Trade Organization

Prepared by:

Katahira & Engineers International West Nippon Expressway Company Limited

Japan Expressway International Company Limited Katahira & Engineers Inc.

Preface

This report is prepared by Katahira & Engineers International, West Nippon Expressway Company, Japan

Expressway International Company and Katahira & Engineers Inc. as the result of “the Study on Economic

Partnership Projects in Developing Countries in FY 2014” for the Ministry of Economy, Trade and Industry.

“The Study on the Makassar Toll Road Project in the Republic of Indonesia” has been carried out to find out

feasibility of the Project through Public Private Partnership scheme by spending some 6,244 billion IDR for

construction. The Project consists of Phase 1 and 2 of toll road extension in Makassar City in order to mitigate

traffic congestions and to improve traffic flows in the City. As a result, the City will be continuously developed

to be smart- & eco-city and be a base city in East Indonesia for whole development in the region.

The study team hopes this report will contribute to the realization of the Project mentioned above and serve as a

reference for respective organizations concerned in Japan.

February 2015

Katahira & Engineers International

West Nippon Expressway Company Limited

Japan Expressway International Company Limited

Katahira & Engineers Inc.

Project Location Map

Source: Study Team

MAKASSAR

Abbreviations

Abbreviation Full words

AMDAL Environmental Impact Analysis

BAPPENAS National Development Planning Agency

BAPPEDA Provincial Development Planning Organization

B/C Ratio Benefit Cost Ratio

Bina Marga Directorate General of Highways, Ministry of Public Works

BKPM Indonesia Investment Coordination Board

BPJT Indonesia Toll Road Authority

BPN National Land Agency

BPS Statistics Indonesia of the Republic Indonesia

CCTV Closed Circuit Television

CMEA Coordination Ministry of Economic Affairs

CPI Consumer Price Index

DSCR Debt Service Coverage Index

EIA Environment Impact Assessment

EIRR Economic Internal Rate of Return

ETC Electric Toll Collection System

FIRR Financial Internal Rate of Return

FS Feasibility Study

GDP Gross Domestic Product

GOI Government of Indonesia

GOJ Government of Japan

IC Interchange

IRR Internal Rate of Return

ITS Intelligent Transport Systems

JBIC Japan Bank for International Corporation

JCT Junction

JETRO Japan External Trade Organization

JEXWAY Japan Expressway International Company Limited

JICA Japan International Cooperation Agency

JRA Japan Road Association

LARAP Land Acquisition and Resettlement Action Plan

METI Ministry of Economy, Trade and Industry

MOF Ministry of Finance

MP3EI Master Plan for Acceleration and Expansion of Indonesia Economic Development 2011-2025

NEXCO Nippon Expressway Corporation

NPV Net Present Value

OD Origin Destination

O&M Operation and Maintenance

PAP Project Affected Persons

Abbreviation Full words

PC Prestressed Concrete

PCU Passenger Car Unit

PPP Public Private Partnership

Project IRR Project Internal Rate of Return

PU Ministry of Public Works

ROW Right of Way

RPJMN National Medium-Term Development Plan

RPJPN National Long-Term Development Plan

SBOT Supported Build Operate & Transfer

SCF Standard Conversion Factor

SPC Special Purpose Company

TRC Toll Road Company

TTC Travel Time Cost

VAT Value Added Tax

VFM Value for Money

VICS Vehicle Information and Communication System

VOC Vehicle Operation Cost

Table of Contents

Preface

Project Location Map

Abbreviations

Table of Contents

Executive Summary

(1) Background and Necessity of the Project ............................................................................................... S-1

(2) Basic Policy on the Project Scope and Implementation ......................................................................... S-2

(3) Outline of the Project .............................................................................................................................. S-2

(4) Implementation Schedule ....................................................................................................................... S-4

(5) Feasibility of Implementation ................................................................................................................. S-4

(6) Technical Advantages of Japanese Companies ....................................................................................... S-5

(7) Project Location Map ............................................................................................................................. S-8

Chapter 1 Overview of the Host Country and Sector

1.1 Economic and Financial Condition ......................................................................................................... 1-1

1.1.1 Economic Condition ....................................................................................................................... 1-1

1.1.2 Financial Condition ........................................................................................................................ 1-2

1.2 Overview of Target Sector ...................................................................................................................... 1-4

1.2.1 Indonesian Road Administrative Organizations and Road Classification ...................................... 1-4

1.2.2 Related Organizations to the Study ................................................................................................. 1-6

1.2.3 Road Related Laws in Indonesia .................................................................................................... 1-7

1.2.4 Road Conditions ............................................................................................................................. 1-8

1.2.5 Toll Road Conditions ...................................................................................................................... 1-8

1.2.6 Road Budget ................................................................................................................................... 1-9

1.3 Overview of Target Area ....................................................................................................................... 1-10

1.3.1 Overview of the Makassar City and South Sulawesi Province ..................................................... 1-10

1.3.2 Local Industries ............................................................................................................................ 1-10

1.3.3 Port Development Plan ................................................................................................................. 1-10

1.3.4 Industrial Park ............................................................................................................................... 1-12

1.3.5 Makassar Airport .......................................................................................................................... 1-13

1.3.6 Road Development Plan ............................................................................................................... 1-13

Chapter 2 Study Methodology

2.1 Scope of Study ........................................................................................................................................ 2-1

2.1.1 Background ..................................................................................................................................... 2-1

2.1.2 Objectives of Study ......................................................................................................................... 2-1

2.1.3 Outline of Study .............................................................................................................................. 2-1

2.2 Study Method and Structure of Study Team ........................................................................................... 2-3

2.2.1 Study Method.................................................................................................................................. 2-3

2.2.2 Structure and Member of Study Team ............................................................................................ 2-5

2.2.3 Organizations in Indonesia for Discussions .................................................................................... 2-6

2.3 Study Schedule ....................................................................................................................................... 2-7

Chapter 3 Justification, Objectives and Technical Feasibility of the Project

3.1 Background and Necessity of the Project ............................................................................................... 3-1

3.1.1 Background of the Project .............................................................................................................. 3-1

3.1.2 Necessity of the Project .................................................................................................................. 3-7

3.2 Basic Studies to Determine Work Scope of the Project ........................................................................ 3-11

3.2.1 Traffic Demand Forecast .............................................................................................................. 3-11

3.2.2 Issues and Analysis to Determine Work Scope of the Project ...................................................... 3-16

3.2.3 Road Plan and Road Structure ...................................................................................................... 3-17

3.2.4 Introduction of ITS ....................................................................................................................... 3-29

3.2.5 Introduction of ETC ...................................................................................................................... 3-31

3.2.6 Operation and Maintenance of the Expressway ............................................................................ 3-34

3.2.7 Framework of PPP Infrastructure Projects .................................................................................... 3-43

3.3 Outline of the Project Plan .................................................................................................................... 3-46

3.3.1 Basic Policy on Project Scope and Implementation ..................................................................... 3-46

3.3.2 Design Specification ..................................................................................................................... 3-46

3.3.3 Scope of the Project (Site and Cost estimation) ............................................................................ 3-53

3.3.4 Issues and Solutions on Proposed Technology and System .......................................................... 3-60

Chapter 4 Evaluation of Environmental and Social Impacts

4.1 Environmental Aspects and Analysis ...................................................................................................... 4-1

4.1.1 Environmental Aspects and Analysis .............................................................................................. 4-1

4.2 Positive Environmental Impacts of the Project ....................................................................................... 4-9

4.2.1 Improvement in Environment ......................................................................................................... 4-9

4.2.2 Improvement in Local Society ...................................................................................................... 4-10

4.3 Negative Environmental Impacts of the Project ................................................................................... 4-11

4.3.1 Negative Impacts on Environment................................................................................................ 4-11

4.3.2 Negative Impacts on Local Society .............................................................................................. 4-14

4.3.3 Analysis of Alternatives ................................................................................................................ 4-16

4.4 Outline of Environmental Laws, Regulations and Guidelines .............................................................. 4-17

4.4.1 Environmental Legislation ............................................................................................................ 4-17

4.4.2 Legislation and Guidelines on Land Acquisition and Resettlement ............................................. 4-20

4.5 Roles of Relevant Organizations in the Host Country .......................................................................... 4-22

4.5.1 EIA (AMDAL) .............................................................................................................................. 4-22

4.5.2 Land Acquisition and Resettlement .............................................................................................. 4-22

4.5.3 Environmental and Social Considerations under JICA Guidelines ............................................... 4-22

Chapter 5 Financial and Economic Evaluation

5.1 Estimation of the Project ........................................................................................................................ 5-1

5.1.1 Construction Cost ........................................................................................................................... 5-1

5.1.2 Operation and Maintenance Cost .................................................................................................... 5-4

5.2 Results of Financial and Economic Evaluation ...................................................................................... 5-8

5.2.1 Financial Evaluation ....................................................................................................................... 5-8

5.2.2 Economic Evaluation .................................................................................................................... 5-13

Chapter 6 Planned Project Schedule

6.1 Implementation Schedule ....................................................................................................................... 6-1

6.1.1 Basic Consideration ........................................................................................................................ 6-1

6.1.2 Implementation Schedule ............................................................................................................... 6-2

6.2 Issues and Solutions of Implementation Schedule .................................................................................. 6-3

6.2.1 Delay in Approval of PPP proposal ................................................................................................ 6-3

6.2.2 Delay in Land Acquisition and Resettlement .................................................................................. 6-3

6.2.3 Delay in Detail Design and Contractor Selection ........................................................................... 6-3

6.2.4 Delay in Construction ..................................................................................................................... 6-4

Chapter 7 Implementing Organization

7.1 State Authority ........................................................................................................................................ 7-1

7.2 Makassar City ......................................................................................................................................... 7-4

7.3 Local Toll Road Company ...................................................................................................................... 7-6

7.4 Information Sharing with Relevant Studies ............................................................................................ 7-7

7.5 Government Guarantee Policies ............................................................................................................. 7-8

Chapter 8 Technical Advantages of Japanese Companies

8.1 Forms of Participation by Japanese Companies ..................................................................................... 8-1

8.1.1 Project Schemes and Forms of Participation .................................................................................. 8-1

8.1.2 Collaboration with Local Enterprises ............................................................................................. 8-2

8.2 Advantages of Japanese Companies in Implementation of Project ........................................................ 8-3

8.2.1 Expressway Technologies ............................................................................................................... 8-3

8.2.2 Construction of Expressway ........................................................................................................... 8-3

8.2.3 Maintenance of Expressway ........................................................................................................... 8-6

8.2.4 Non Destructive Inspection Technologies ...................................................................................... 8-8

8.2.5 Precast/Pre-stressed Concrete Member ......................................................................................... 8-10

8.2.6 Other Precast Concrete Products .................................................................................................. 8-11

8.3 Measures to Promote Japanese Companies for the Project ................................................................... 8-12

Appendix

1. Site Survey

2. Draft Plan

3. Current Condition of Roadsides (Environmental and Social Considerations)

4. Financial Evaluation

5. Economic Evaluation

6. Meeting Records

List of Tables

Table 1 Outline of the Project .................................................................................................................... S-2

Table 1.1-1 Economic Indicators ..................................................................................................................... 1-1

Table 1.1-2 Population Data ............................................................................................................................ 1-1

Table 1.1-3 Number of Poor People, Poverty Ratio and Poverty Line in 2014 ............................................... 1-2

Table 1.1-4 Direct Investment in 2010 to 2013 ............................................................................................... 1-2

Table 1.1-5 National Revenue and Expenditure in 2010 to 2014 .................................................................... 1-2

Table 1.2-1 Roles between Bina Marga and BPJT .......................................................................................... 1-4

Table 1.2-2 Business Structure of Indonesian Toll Road PPP Projects ............................................................ 1-7

Table 1.2-3 Current Toll Road Conditions in Indonesia .................................................................................. 1-8

Table 1.2-4 Road Budget in Indonesia ............................................................................................................. 1-9

Table 2.2-1 Organizations in Indonesia for Discussions .................................................................................. 2-6

Table 2.3-1 Discussion List with Related Organization in First Study in Indonesia ....................................... 2-8

Table 2.3-2 Discussion List with Related Organization in Second Study in Indonesia ................................... 2-9

Table 2.3-3 Discussion List with Related Organization in Third Study in Indonesia .................................... 2-10

Table 3.1-1 Target Figures in Second Phase of RPJPN and Actual Figures in 2013 ....................................... 3-1

Table 3.1-2 Outline of Phase 1 and Phase 2 ..................................................................................................... 3-9

Table 3.2-1 Traffic Volume Estimation .......................................................................................................... 3-14

Table 3.2-2 Method of Traffic Processing of Urip Intersection ..................................................................... 3-26

Table 3.2-3 Comparison of Phase 1 ............................................................................................................... 3-27

Table 3.2-4 Comparison of Phase 2 ............................................................................................................... 3-28

Table 3.2-5 Manner and Method of Payment for Toll Road in Indonesia ...................................................... 3-33

Table 3.2-6 Visited Offices for Interview Surveys ......................................................................................... 3-34

Table 3.2-7 Vehicle Classification and Toll Rates .......................................................................................... 3-37

Table 3.2-8 Toll Gates on Currently Operated Toll Road Network ............................................................... 3-39

Table 3.2-9 Operation and Maintenance of New Toll Roads ......................................................................... 3-42

Table 3.2-10 Presidential Decrees Related to PPP ........................................................................................... 3-44

Table 3.2-11 BAPPENAS Decrees for PPP ..................................................................................................... 3-44

Table 3.2-12 Laws Related to PPP Toll Road Projects .................................................................................... 3-44

Table 3.2-13 PPP Toll Road Business Structures in Indonesia ........................................................................ 3-45

Table 3.3-1 Road Classification ..................................................................................................................... 3-46

Table 3.3-2 Traffic Capacity .......................................................................................................................... 3-47

Table 3.3-3 Design Speed .............................................................................................................................. 3-47

Table 3.3-4 Design Vehicle ............................................................................................................................ 3-47

Table 3.3-5 Lane Width.................................................................................................................................. 3-48

Table 3.3-6 Left Shoulder Width ................................................................................................................... 3-48

Table 3.3-7 Right Shoulder Width ................................................................................................................. 3-48

Table 3.3-8 Center Median Width .................................................................................................................. 3-49

Table 3.3-9 Japan Standard for Reference ..................................................................................................... 3-49

Table 3.3-10 Budget Scale for the Proposed Project........................................................................................ 3-60

Table 4.1-1 Monitoring Data of Air Quality in Makassar City (TSP: μg/Nm3） ............................................ 4-4

Table 4.1-2 Monitoring Data of Air Quality in Makassar City (SO2: μg/Nm3) ............................................... 4-5

Table 4.1-3 Monitoring Data of Air Quality in Makassar City (NO2: μg/Nm3) ............................................... 4-5

Table 4.1-4 Monitoring Data of Noise in Makassar City (dB(A)) ................................................................... 4-6

Table 4.1-5 Monitoring Data of Water Quality in Makassar City .................................................................... 4-7

Table 4.2-1 Estimation of Average Vehicle Speed and VKT in Makassar City ............................................. 4-10

Table 4.2-2 Estimation of GHG (CO2) Reduction Volume with Project ........................................................ 4-10

Table 4.3-1 Environmental Check List on the Project ................................................................................... 4-11

Table 4.3-2 Prospects of Land Acquisition and Affected House .................................................................... 4-15

Table 4.3-3 Comparison of Alternatives ........................................................................................................ 4-16

Table 4.4-1 Major EIA Legislations in Indonesia .......................................................................................... 4-17

Table 4.4-2 Types and Scale on Toll Road Project Required AMDAL Procedure ......................................... 4-18

Table 4.4-3 Environmental Standards and Emission Standards ..................................................................... 4-20

Table 4.4-4 Major Legislation on Land Acquisition and Resettlement in Indonesia ..................................... 4-20

Table 5.1-1 Unit Price of Construction by Road Structure in Past Projects ..................................................... 5-1

Table 5.1-2 Unit Prices of Construction of Road Structures for Estimation .................................................... 5-2

Table 5.1-3 Construction Cost ......................................................................................................................... 5-2

Table 5.1-4 Estimated Market Prices of Land in Makassar City ..................................................................... 5-3

Table 5.1-5 Land Acquisition Costs and Compensations ................................................................................. 5-4

Table 5.1-6 Total Project Cost.......................................................................................................................... 5-4

Table 5.1-7 Assumption of Interchanges (IC) in Each Phase .......................................................................... 5-6

Table 5.1-8 Assumption and O&M Cost for Each Phase ................................................................................. 5-7

Table 5.2-1 Project Scheme Scenario .............................................................................................................. 5-9

Table 5.2-2 Summary of Financial Evaluation .............................................................................................. 5-10

Table 5.2-3 Sensitivity Analysis of Phase 1 (Viaduct) : Toll Rate IDR 1,000/km ......................................... 5-12

Table 5.2-4 Sensitivity Analysis of Phase 2 (Option A) : Toll Rate IDR 1,000/km+Land Acquisition ......... 5-13

Table 5.2-5 Vehicle Operating Cost (VOC) ................................................................................................... 5-15

Table 5.2-6 Travel Time Cost ........................................................................................................................ 5-16

Table 5.2-7 Results of Economic Evaluation ................................................................................................. 5-16

Table 6.1-1 Handbooks etc. for PPP Scheme in Indonesia .............................................................................. 6-1

Table 7.1-1 Roles between Bina Marga and BPJT .......................................................................................... 7-1

Table 8.1-1 Concept of Japanese Participating Enterprises ............................................................................. 8-1

List of Figures

Figure 1 Makassar City Spatial Plan (Target Year 2031). ........................................................................... S-1

Figure 2 Implementation Schedule ............................................................................................................. S-4

Figure 3 Route Map .................................................................................................................................... S-8

Figure 1.2-1 Structural Organization of Bina Marga ......................................................................................... 1-5

Figure 1.2-2 Structural Organization of BPJT ................................................................................................... 1-5

Figure 1.2-3 Related Organization of Project .................................................................................................... 1-7

Figure 1.2-4 Progress of Road Length............................................................................................................... 1-8

Figure 1.3-1 Port Development Plan by Pelindo IV ........................................................................................ 1-11

Figure 1.3-2 Access Road Plan from New Port to Existing Toll Road ........................................................... 1-12

Figure 2.2-1 Structure and Member of Study Team .......................................................................................... 2-5

Figure 2.3-1 Study Schedule ............................................................................................................................. 2-7

Figure 3.1-1 Framework Design of MP3EI ....................................................................................................... 3-1

Figure 3.1-2 Ujung Pandang Road Network Configuration in 2009 ................................................................. 3-2

Figure 3.1-3 Priority Arterial Road Development for South Sulawesi Province ............................................... 3-3

Figure 3.1-4 Makassar City Spatial Plan (above) and Road Plan (below) ........................................................ 3-4

Figure 3.1-5 Makassar Development Plan (2031) ............................................................................................. 3-5

Figure 3.1-6 Makassar City Spatial Plan (above) and Road Plan (below) (Target Year: 2031) ........................ 3-6

Figure 3.1-7 Request Letters to NEXCO-West from Makassar Coty (above) and MUN (below) .................... 3-8

Figure 3.1-8 Route Map of Phase 1 and Phase 2 ............................................................................................... 3-9

Figure 3.2-1 Number of Lanes of the Roads in Makassar and Traffic Volume Survey Site ............................ 3-11

Figure 3.2-2 Implementation of Traffic Volume Survey ................................................................................. 3-12

Figure 3.2-3 Traffic Volume Survey Result ..................................................................................................... 3-13

Figure 3.2-4 Traffic Volume by the Hour in Pettarani Road ............................................................................ 3-14

Figure 3.2-5 Future Network in 2035 .............................................................................................................. 3-15

Figure 3.2-6 Estimation of Future Traffic Volume .......................................................................................... 3-16

Figure 3.2-7 Route Map of the Project ............................................................................................................ 3-17

Figure 3.2-8 Width of Pettarani Road (Current Status) ................................................................................... 3-18

Figure 3.2-9 Photos of Pettarani Road (Current Status) .................................................................................. 3-18

Figure 3.2-10 Current Status of the Surrounding Areas of Option A of Phase 2 ............................................... 3-19

Figure 3.2-11 Cross Section of Toll Road for Phase 2 Option A ....................................................................... 3-19

Figure 3.2-12 Width of Rappochini Road (Current Status) ............................................................................... 3-20

Figure 3.2-13 Photos of Rappochini Road (Current Status) .............................................................................. 3-20

Figure 3.2-14 Standard Cross Section (1) At-Grade Structure in Phase 1 ......................................................... 3-21

Figure 3.2-15 Standard Cross Section (2) Viaduct Structure in Phase 1 ........................................................... 3-21

Figure 3.2-16 Standard Cross Section (3) Embankment Structure in Option A of Phase 2 ............................... 3-22

Figure 3.2-17 Outline of Countermeasures for Soft Grounds ........................................................................... 3-22

Figure 3.2-18 Standard Cross Section (4) Viaduct Structure in Option A of Phase 2 ....................................... 3-23

Figure 3.2-19 Standard Cross Section (5) Viaduct Structure in Option B of Phase 2 ....................................... 3-23

Figure 3.2-20 Location Plan for IC and JCT (Phase 1 and Phase 2 Option A) ................................................. 3-24

Figure 3.2-21 Location Plan for IC and JCT (Phase 1 and Phase 2 Option B) ................................................. 3-25

Figure 3.2-22 Location of Urip Intersection ...................................................................................................... 3-25

Figure 3.2-23 Plan for Introduction of ITS System ........................................................................................... 3-29

Figure 3.2-24 Supplying Information of ITS ..................................................................................................... 3-30

Figure 3.2-25 Mechanism of ETC (Japan) ........................................................................................................ 3-31

Figure 3.2-26 ETC Card “e-toll card” (left) and “e-toll card” and In-Vehicle Device (right) ........................... 3-32

Figure 3.2-27 Toll Booth with 2.1m Gate in Jakarta (left) and

Toll Payment by “e-toll card” at Automatic Toll Collection Machine (right) ............................. 3-32

Figure 3.2-28 Vehicle Classification of Toll Road in Indonesia (left) and Toll Rate in Plate (right) ................ 3-33

Figure 3.2-29 IC-Card “Flazz” for Toll Payment in Makassar (left) and

Toll Payment Card-Reader at Collection Office (right) .............................................................. 3-33

Figure 3.2-30 Makassar Toll Road Network under Operation .......................................................................... 3-35

Figure 3.2-31 Structure of Each Toll Collection Team ...................................................................................... 3-36

Figure 3.2-32 Toll Rate Structure of Currently Operated Toll Road Network .................................................. 3-38

Figure 3.2-33 PPP Related Laws ....................................................................................................................... 3-43

Figure 3.2-34 SBOT Scheme ............................................................................................................................ 3-45

Figure 3.3-1 Standard Cross Section (1) At-Grade Structure in Phase 1 ......................................................... 3-49

Figure 3.3-2 Standard Cross Section (2) Viaduct Structure in Phase 1 ........................................................... 3-50

Figure 3.3-3 Standard Cross Section (3) Embankment Structure in Option A of Phase 2 ............................... 3-50

Figure 3.3-4 Standard Cross Section (4) Viaduct Structure in Option A of Phase 2 ....................................... 3-51

Figure 3.3-5 Standard Cross Section (5) Viaduct Structure in Option B of Phase 2 ....................................... 3-51

Figure 3.3-6 Interchange in At-Grade Structure (Metropolitan Expressway, Japan) ....................................... 3-52

Figure 3.3-7 Junction in Viaduct Structure (Metropolitan Expressway, Japan) .............................................. 3-52

Figure 3.3-8 Toll Gates (Metropolitan Expressway, Japan) ............................................................................ 3-52

Figure 3.3-9 Plan and Profile for Phase 1 (1) .................................................................................................. 3-53

Figure 3.3-10 Plan and Profile for Phase 1 (2) .................................................................................................. 3-54

Figure 3.3-11 Plan and Profile for Phase 2 Option A (1) ................................................................................... 3-55



Figure 3.3-14 Plan and Profile for Phase 2 Option B (1) .................................................................................. 3-58

Figure 3.3-15 Plan and Profile for Phase 2 Option B (2) .................................................................................. 3-59

Figure 4.1-1 Parliament of City on Pettarani Road ........................................................................................... 4-1

Figure 4.1-2 Pettarani Road with Rich Green ................................................................................................... 4-1

Figure 4.1-3 Residence on the Project Site (1) .................................................................................................. 4-2

Figure 4.1-4 Residence on the Project Site (2) .................................................................................................. 4-2

Figure 4.1-5 The Project Site along River ......................................................................................................... 4-2

Figure 4.1-6 Traditional Architecture Museum ................................................................................................. 4-2

Figure 4.1-7 Rappocini Road ............................................................................................................................ 4-3

Figure 4.1-8 Lanrodg Pasewang Road .............................................................................................................. 4-3

Figure 4.1-9 Military Facility ............................................................................................................................ 4-3

Figure 4.1-10 Siloam Hospital at End Interchange ............................................................................................. 4-3

Figure 4.1-11 Monitoring Points of Air Quality and Noise ................................................................................. 4-4

Figure 4.1-12 Monitoring Points of Water Quality .............................................................................................. 4-7

Figure 4.2-1 Vehicle Emission Factor ............................................................................................................... 4-9



Figure 4.3-1 Venders Operating within ROW ................................................................................................. 4-15

Figure 4.3-2 Historical Heritage Adjoining Project Site (Benteng Somba Opu) ............................................. 4-15

Figure 4.3-3 Electric Facility Adjoining Project Site ...................................................................................... 4-15

Figure 4.4-1 Flow of AMDAL Procedure ....................................................................................................... 4-19

Figure 4.4-2 Land Acquisition Procedure of Public Projects in Indonesia ...................................................... 4-21

Figure 5.1-1 Assumption of Interchanges (IC) in Each Phase .......................................................................... 5-7

Figure 5.2-1 Travel Speed and Vehicle Operation Cost .................................................................................. 5-15

Figure 6.1-1 Implementation Schedule ............................................................................................................. 6-2

Figure 6.2-1 Flow of Traffic Control Plan during Construction ........................................................................ 6-4

Figure 7.1-1 Formation of PPP Toll Road Project ............................................................................................ 7-2

Figure 7.2-1 Spatial Plan of Makassar City ....................................................................................................... 7-5

Figure 8.1-1 Business Scheme of Toll Road PPP Projects ................................................................................ 8-1

Figure 8.1-2 Image of Sponsors of Project ........................................................................................................ 8-2

Figure 8.2-1 Construction Flow ........................................................................................................................ 8-4

Figure 8.2-2 Effect of Porous Asphalt Pavement .............................................................................................. 8-5

Figure 8.2-3 Quality Control and Safety Facilities ............................................................................................ 8-6

Figure 8.2-4 Infrared Camera System ............................................................................................................... 8-8

Figure 8.2-5 Deck Top Scanning System .......................................................................................................... 8-9

Figure 8.2-6 Auto Camera System .................................................................................................................... 8-9

Figure 8.2-7 Video Camera System ................................................................................................................. 8-10

Figure 8.2-8 Plant Manufacturing Precast/Pre-stressed Concrete Member by Japanese Company ................ 8-11

Figure 8.2-9 Road with Precast/Pre-stressed Concrete Member in Jakarta ..................................................... 8-11

Executive Summary

S-1

(1) Background and Necessity of the Project

Indonesia Government formulated the national long-term development plan (RPJPN) in year 2004, targeting

in year 2025. Based on the RPJPN, the national medium-term development plan (RPJMN) has been

formulated at every five years. Current RPJPN is the second phase of medium-term plan for year 2010 to

2014, the vision of which is to achieve “prosperous, self-reliant, democratic and just nation”.

Referring to the RPJPN, the Master Plan for Acceleration and Expansion of Indonesia Economic

Development (MP3EI 2011 to 2025) has been announced in year 2011. Main Strategies of MP3EI are 1) to

improve regional economic potentials through expansion of six economic corridors (Sumatra, Java,

Kalimantan, Sulawesi, Bali-Nusa Tenggara, Papua-Moluccas), 2) to strengthen national and regional

connectivity and 3) to strengthen human resources and national science and technology capabilities.

For road networks around Makassar City in Sulawesi Island, Japan International Cooperation Agency

(JICA) carried out “Ujung Pandang Area Highway Development Study” in March 1989 and “the Study on

Arterial Road Network for Sulawesi Island and the Feasibility Study on Priority Arterial Road

Development for South Sulawesi Province” in March 2008, which proposed to develop the high priority

five roads projects.

Makassar mayor inaugurated in May 2014 has presented new city development plan, which is shown in

Figure 1 below. The plan is targeted at year 2031 and includes extensive reclamation and new recreations /

shopping plazas / offices / residential spaces, which was not in the plan of year 2005.

Figure 1 Makassar City Spatial Plan (Target Year 2031)

Source: Makassar Plan in 2014

S-2

Makassar City targets the followings in order to be a base city in East Indonesia, following the National

Development Plan.

1) Development of waterfront including new port construction

2) Improvement of north-south and east-west transport networks

3) Introduction of and changing to smart- and eco-city

With these targets, Makassar City is discussing the extension of toll road on Pettarani Road (which is most

crucial commuter artery, connecting the south – new developed part of Makassar to the north – most

developed part of Makassar) and further extension to the developing areas at the waterfront with the toll

road operator PT Margautama Nusantara (MUN). Subsequently, MUN has proposed to West Nippon

Expressway Company to carry out pre-feasibility study for extension of toll road together as two

companies have mutual understanding for cooperation on toll road in Indonesia. Then, the study has been

proposed and accepted.

(2) Basic Policy on the Project Scope and Implementation

The basic policies to determine the project scope are as follows.

The traffic demand forecast done in JICA Study in 2008 has been referred and adjusted with the actual

traffic counts done in the study of year 2014 and then traffic demand forecast for this study has been

calculated in order to estimate suitable traffic demand forecast.

Planning of route, road structure and type of ramp & interchange has been made, by referring design

standard in Indonesia as well as considering convenience of toll road users and enhancing safety and

economic aspect of roads.

Most suitable PPP scheme with acceptable level of toll rate has been proposed by referring road

development plan in Indonesia and recent trend of PPP projects and regulations in order to make the

project viable.

(3) Outline of the Project

Outline of the project is shown below.

Table 1 Outline of the Project

Project Name The Makassar Toll Road Project in the Republic of Indonesia

Implement Agency Indonesia and Japan Expressway Companies etc.

Contents of Project Phase 1 (4.3km) and Phase 2 (6.2km): Design and Construction of toll roads (viaduct and

embankment structure), interchanges and toll booths etc.

Phase 1 (4.3km) and Phase 2 (6.2km): Operation and Maintenance

Project costs Project costs (Estimation with prices in year 2014)

【Phase 1: 4.3km Viaduct Structure】

Construction Cost: 1,295 billion IDR

Land Acquisition & Compensation: 1 billion IDR

Total 1,296 billion IDR

S-3

【Phase 2: 6.2km Embankment and (partly) Viaduct Structure】

Construction Cost: 1,540 billion IDR

Land Acquisition & Compensation: 3,408 billion IDR

Total 4,948 billion IDR

Grand Total 6,244 billion IDR

Japanese Yen equivalent 59.4 billion JPY

(exchange rate 1JPY=105IDR as of November 2014)

Annual Operation and Maintenance Cost

【Phase 1: 4.3km】 year 2023 32 billion IDR / year

【Phase 1 & 2: 10.5km】 year 2028 109 billion IDR / year

Preliminary

Financial Analysis

and Expected Mode

of Business

【Phase 1】

Phase 1 will be proposed as the extension of existing toll road (BMN).

In case of revenue sharing with BMN, Phase 1 is feasible as BOT1 as below.

Toll rate IDR 700/km IDR 1,000/km

Project IRR 18.6% 20.0%

DSCR (minimum) 1.4 1.6

【Phase 2】

In case land acquisition & compensation and half of construction cost born by Indonesia

Government, financial figures for Option A and B are shown below.

Option A Option B

Toll rate IDR 1,100/km IDR 1,400/km

Project IRR 16.0% 16.1%

DSCR (minimum) 1.1 1.2

Option A is feasible as SBOT2 with toll rate IDR 1,100/km. According to the sensitivity analysis,

it will be feasible with toll rate IDR 1,000/km (affordable rate), if construction cost is reduced

about 10%.

Option B needs toll rate IDR 1,400/km with similar conditions of Option A. Therefore, it is not

feasible, as toll rate IDR 1,400/km is much higher than the affordable rate.

Procurement and

Financing

70% of all project costs in Phase 1 and 50% of project costs in Phase 2 will be financed from

JICA Project Finance and the remaining will be private investment.

Preliminary

Economic Analysis

Result of economic analysis is as follows.

Phase 1 and Option A of Phase 2

Net Present Value: NPV 1,710 billion IDR

Economic Internal rate of Return: EIRR 20.1%

Benefit Cost Ratio: BCR 1.9

When NPV is positive, EIRR is bigger than 12% and BCR is more than 1.0, such project is

considered economically viable.

Since the project NPV is 1,179 billion IDR, EIRR is 20.1% and BCR is 1.9, the project is

economically viable.

Environmental and

Social Consideration

In Makassar City, the increase of traffic congestion is worsening air pollution and noise along main

roads. The project will mitigate the road congestion, and reduce the air pollution and the emission

of greenhouse gas.

Since the project is a road project located on the urban, it is expected that the project will cause no

significant negative impacts to the environment of vicinity. However since the negative impacts

including the air pollution, noise and vibration on construction and operation stages are foreseen,

environmental considerations will be required through EIA procedure. The project will need the

1 BOT: SPC is in charge of all project costs and receives revenue for all sections. 2 SBOT: the Government of Indonesia implements land acquisition and part of construction costs. SPC is in charge of

the remaining costs and receives revenue for all sections.

S-4

AMDAL procedure which is an EIA system in Indonesia. Under the system, the project needs to

obtain an environmental permit under the system.

The project needs land acquisition (Phase 2), and this will cause involuntary resettlement. The

considerations for affected persons are needed through the preparation of Resettlement Action

Plan (RAP).

Source: Study Team

(4) Implementation Schedule

Implementation schedule is shown in Figure 2 below. Important points are described here.

For Phase 1, no land acquisition is required and therefore construction could be commenced smoothly.

For Phase 2, large scale land acquisition and resettlement is needed, it takes long time before

commencement of construction.

Accordingly, PPP application will be submitted separately for Phase 1 and Phase 2. Subsequently, Phase

1 will be open in year 2023 and Phase 2 be in year 2028.

Figure 2 Implementation Schedule

I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV I II III IV

1 PPP Study under METI

2 PPP Preparatory Study under JICA

a) Phase 1 including EIA & LARAP

b) Phase 2 including EIA & LARAP

3 Toll Road Phase 1 (4.3 km)

a) Application to PU / BAPPENAS

b) Land Acquisition / Resettlement (in case land aqusition and resettelement is required)

c) Review by BPJT / Tender for SPC

d) Design & Contractor Selection by SPC

e) Construction

f) Operation & Maintenance by SPC

4 Toll Road Phase 2 - Option A or B (6.2 km or 3.8 km)

a) Application to PU/Bappenas

b) Land Acquisition / Resettlement

c) Tender for SPC

d) Design & Contractor Selection by SPC

e) Construction

f) Operation & Maintenance by SPC

2022 2023 2024 2025 2026 2027Items

2014 2015 2016 2017 2018 2019 2020 2021 2028

Source: Study Team

(5) Feasibility of Implementation

Feasibility for Phase 1 and Phase 2 is described hereafter together with necessary actions to be done.

【Phase 1】

In case that the Special Purpose Company (SPC) is in charge of all project costs with toll rate IDR

S-5

700/km (current rate in Makassar), the project IRR is 4.5%, which is still low and does not meet the

evaluation criteria of 16% for a BOT project. If toll rate IDR 1,000/km is adopted (rate in Bali), the

project IRR is increased to 7.9%, though it still does not reach the evaluation criteria of 16% for a BOT

project.

In the case that SPC shares the revenue3 with the existing toll road (BMN) with toll rate IDR 700/km,

the project IRR is 18.6%, which is over the evaluation criteria of 16% for a BOT project. In addition,

minimum DSCR is 1.4, which is also over the evaluation criteria of 1.2. Therefore, this scenario is

financially feasible for Phase 1.

If toll rate IDR 1,000/km is adopted, the project IRR is 20.0% and minimum DSCR is 1.8, which is over

the evaluation criteria for a BOT project. Therefore, this scenario is financially feasible for Phase 1.

Revenue sharing shall be subject to discussion and acceptance of the Central Government, including

modification of current concession contract of BMN after due discussions among the Central

Government and SPC/BMN.

【Phase 2】

For Option A, in the case that SPC is in charge of all project costs with toll rate IDR 700/km, the project

IRR is 1.0%, which is very low and does not meet the evaluation criteria of 16% for a BOT project. If

toll rate IDR 1,000/km is adopted, the project IRR is increased to 3.2%, though it still does not reach the

evaluation criteria of 16% for a BOT project.

For Option A, in the case that the government implements land acquisition & compensation and provide

SPC with VGF (50% of construction cost) and SPC is in charge of the rest of all project costs with toll

rate IDR 1,100/km, the project IRR is 16%, which meets the evaluation criteria of 16% for a SBOT

project. In addition, minimum DSCR is 1.1, which is a little lower than the evaluation criteria of 1.2.

However, there is no year when the DSCR is lower than 1.0 and this scenario is financially feasible for

Phase 2.

For this scheme, construction costs shall be reduced about 10%, so that the project will be comfortably

feasible with the affordable toll rate IDR 1,000/km.

For Option B, in similar conditions to Option A, the project IRR becomes 16.1%, if toll rate IDR

1,400/km. It is much higher than the affordable toll rate, and therefore Option B is not feasible.

(6) Technical Advantages of Japanese Companies

Japanese expressway companies (NEXCO) have executed construction, operation and maintenance of

expressway for more than 50 years. Their technologies and knowhow gained from this experience are

acknowledged by Indonesia’s road sectors and expected to contribute to solve their current and future

issues and problems by applying such technologies and knowhow.

For example, pavement damage caused by illegal over loaded vehicles is remarkable in Indonesia, and 3 Revenues from the existing toll road (BMN) and Phase 1 is shared together and both toll roads are operated in one.

Since major expenses in BMN will not be incurred and debt be repaid in 2018, finance in Phase 1 would be supported by BMN, when revenues are shared. As current concession contract of BMN is terminated in 2028, it is assumed that concession contract is extended to year 2052.

S-6

therefore countermeasure against over loaded vehicles, which is carried out along Japanese expressways

under NEXCO control with using apparatus for weighing axils and vehicles or crackdown at an

expressway entrance is one of their needs.

Technical advantages of Japanese companies are written below in view of construction and maintenance of

expressway and productions of precast concrete members.

1) Construction of Expressway

During the construction process of expressway, in-house Nippon Expressway Companies (NEXCOs)

engineers themselves totally supervise and carry out except for some processes outsourced. This enables

NEXCOs to monitor the overall status of the project including the construction process and the

surrounding environment at the construction site, and this facilitates the subsequent operations at the

management stage. NEXCO technologies in the following fields could be utilized in the project, as these

are in main components of the project.

a) Bridges/Viaducts

NEXCOs have pursued appropriate technical development in the construction of bridges, taking into

consideration a variety of bridging conditions. These efforts have been characterized by the promotion of

continuous spans, adoption of the mode of elevated bridges above roads, awareness of costs, consideration

for ease of construction, consideration for scenic appearance, and feedback from the maintenance stage.

b) Pavement

Porous asphalt pavement reduces noise in addition to anti- splash performance, and provides optimal

service to customers, and therefore NEXCOs have used it as the standard type of pavement for surfacing

work since January 1998.

c) Earthworks

NEXCOs have technologies for slope stability for construction in mountainous areas and countermeasures

for soft ground in sea side and near rivers. Recently, new technology has been introduced to improve

quality control by applying a research instrument with radioisotope technology for sure embankment

consolidation status management.

d) Quality and Safety Control

NEXCOs execute proper quality and safety control so as to construct faultless structures within the

contract term. Quality control avoids increasing life cycle cost for repair or replacement and safety control

prevents accidents during construction, causing not only loss of precious human life but also delay of the

opening to the public.

2) Maintenance of Expressway

To make sure that expressways remain safe, secure and comfortable for use over a long period of time,

NEXCOs conduct detailed inspections in an efficient manner and performs appropriate repair and

reinforcement based on the results of these inspections.

S-7

a) Inspection

In order to quickly detect road dangers and ensure a safe and comfortable driving environment, and to

prevent injury to customers, inspections of road surfaces, slopes, bridges and other road structures in

addition to facility and equipment are conducted on a daily and periodic basis.

b) Maintenance and repair

To ensure the continued provision of safe, secure and comfortable road environments, specific locations

that are determined to require repair due to the results of the inspection process are repaired in an efficient

and effective manner, taking into account the degree of damage to each of the target structures, the cause of

the damage and the degree of importance of crossing structures, in order to prevent injury to third parties.

c) Use of Intelligent Transport Systems

Intelligent transport systems (ITS) use information technologies to link people, vehicles and the road in

order to reduce accidents, increase safety and reduce congestion. They are designed to ensure a smooth

flow of traffic and make road transport easy, convenient and comfortable. They also reduce CO2 emissions

and therefore ease the impact on the environment. These systems are used by NEXCOs in ETC (Electric

Toll Collection System) and following scenes.

3) Production of Precast Concrete Members

a) Viaduct Girders

The use of precast and pre-stressed concrete members manufactured by a company which is partly funded

by Japanese nationals is increased gradually in major projects in Jakarta. In this study, it is confirmed that

the company can supply their product to the concerned expressway project in Makassar.

b) Other Precast Concrete Members

A company manufacturing precast concrete product in Japan, will establish their plant in an industrial park

in the suburb of Makassar City. It seems possible for them to supply small-scale products other than

viaduct girders to the project.

S-8

(7) Project Location Map

Project map is shown below.

Figure 3 Route Map

Source: Study Team

MAKASSAR

Chapter 1 Overview of the Host Country and

Sector

1-1

1.1 Economic and Financial Condition

1.1.1 Economic Condition

Gross Domestic Product (GDP) in Indonesia has grown steadily in recent ten years and GDP growth rate in

every year was approximately 6% except the year 2009, when Indonesia was affected by the global financial

crisis. The figure in year 2013 is 5.8% as preliminary one. This is because export became reduced due to

global economy slow-down since the year 2012. Then the economic balance in Indonesia was negative and

consumer spending was declined after high inflation. In addition, exchange rate of Indonesia Rupiah (IDR)

was lowered and the rate is around IDR 12,000 / US Dollar (USD) as per November 2014.

Table 1.1-1 shows GDP, GDP per capita, growth rate of GDP, inflation rate, unemployment rate and exchange

rate.

Table 1.1-1 Economic Indicators

Economic Indicators 2007 2008 2009 2010 2011 2012 2013

GDP at current market price

(trillion IDR) 3,951 4,949 5,606 6,447 7,419 8,229* 9,084*

GDP per capita (thousand IDR) 17,290 21,365 23,880 27,029 30,659 33,531* 36,508*

GDP at year 2000 constant

market price (trillion IDR) 1,964 2,082 2,179 2,314 2,465 2,619* 2,770*

Growth rate of GDP (%) 6.35 6.01 4.63 6.22 6.49 6.26* 5.78*

Inflation rate (average consumer

price index, %) 6.59 11.06 2.78 6.96 3.79 4.30 8.38

Unemployment rate (%) 8.56 8.04 7.56 7.00 7.41 6.07 6.17

Exchange rate

(IDR/USD at year end) 9,419 10,950 9,400 9,068 9,068 9,670 12,189

*preliminary figures

Source: Statistics Indonesia and Bank Indonesia

Population of Indonesia has been measured since the year 1971 and subsequently in every five or ten years

statistic data for population are published. Population for whole Indonesia and South Sulawesi Province are

shown below and increment of population in South Sulawesi Province is identical to those in whole

Indonesia.

Table 1.1-2 Population Data

Location 1971 1980 1990 1995 2000 2010 2015*

Whole Indonesia

(1000 people) 119,208 147,490 179,379 194,755 206,265 237,641 255,462

Rate of yearly increase (%) - 2.7 2.2 2.1 1.4 1.6 1.7

South Sulawesi Province

(1000 people) 5,181 6,062 6,982 7,558 8,060 8,035 8,520

Rate of yearly increase (%) - 2.0 1.6 2.0 1.6 0 1.4

*preliminary figures

Source: Statistics Indonesia

1-2

The poverty ratio in Indonesia is approximately 11% in year 2014 and considered still high, though it tends to

decrease. The poverty ratio in South Sulawesi Province is about 13% and slightly higher than that in whole

Indonesia. The poverty ratio in Jakarta Special Capital City District (DKI Jakarta) is indicated only 4%.

Number of poor people, poverty ratio and poverty line in whole Indonesia, South Sulawesi Province and DKI

Jakarta are shown below.

Table 1.1-3 Number of Poor People, Poverty Ratio and Poverty Line in 2014

Location

Number of Poor People

(1000 people) Poverty Ratio (%) Poverty Line (IDR/month)

urban rural total urban rural total urban rural total

Whole Indonesia 10,507 17,773 28,280 8.34 14.17 11.25 318,514 286,097 302,735

South Sulawesi Province 162 702 864 5.22 13.25 10.28 240,276 211,271 222,003

DKI Jakarta 394 - 394 3.92 - 3.92 447,797 - 447,797


1.1.2 Financial Condition

The Bank of Indonesia reports that government’s foreign debt is being reduced with economic growth and

government fiscal consolidation policy and therefore, domestic and foreign direct investment tends to

increase. Amounts of direct investment (both domestic and foreign) in year 2010 to 2013 are shown below.

National revenue and expenditure in same period are also shown together with budget in year 2014.

Table 1.1-4 Direct Investment in 2010 to 2013

Item 2010 2011 2012 2013

Domestic Direct investment (trillion IDR) 60.6 76.0 92.2 128.2

Foreign Direct investment (billion USD) 16.2 19.5 24.6 28.6

Source: JETRO Indonesia Investment Guide (2014-2015)

Table 1.1-5 National Revenue and Expenditure in 2010 to 2014

Unit: trillion IDR

Items 2010 2011 2012 2013 2014*

National Revenue Total 995.3 1,210.6 1,338.1 1,502.0 1,635.4

Tax Revenue 723.3 873.9 980.5 1,148.4 1,246.1

Non Tax Revenue 268.9 331.5 351.8 349.2 386.9

Grant 3.0 5.3 5.8 4.5 2.3

Expenditure Total 1,042.1 1,295.0 1,491.4 1,726.2 1,876.9

Central Government 697.4 883.7 1,010.6 1,196.8 1,280.4

Regional Government 344.8 411.3 480.6 529.4 596.5

2010-2013: Actual figures, 2014: Budget

Source: Statistics Indonesia and Department of Finance Indonesia

Indonesia has the long-term national development plan (RPJPN) as well as the mid-term development plans

(RPJMN) in each 5 year. Indonesia Government has published the second mid-term development plan in year

2010, which shows details of development in the year 2010 to 2014. According to the plan, growth rate of

1-3

GDP is supposed to achieve at 6.3 to 6.8 % and unemployment rate is targeted to be 5 to 6 %. However,

actual figures are slightly worse than the figures in the plan.

Indonesia Government has also formulated the Master Plan for Acceleration and Expansion of Indonesia's

Economic Development (MP3EI) in year 2011, which is development plan in year 2011 to 2025. According

to MP3EI, Indonesia plans to earn its place as one of the world’s developed countries by 2025 with expected

per capita income of USD 14,250 to 15,500 and total gross domestic product to be 6 folds. In the Plan, total

investment during this period (2011 to 2025) will be four thousand trillion IDR and half of the total (one

thousand nine hundred trillion IDR) will be spent for infrastructure as base of economic development.

In October 2014, new president Joko Widodo inaugurated. He is new type of leader and is expected to show

his own way. However, under the circumstances that the opponent has majority in the legislature, he has to

cut fuel subsidies in certain extents and renew infrastructures already deteriorated.

President Joko Widodo raised fuel prices in November 2014, and has abolished subsidy for gasoline and

fixed it for diesel from January 2015, which in fact cut fuel subsidies quite a bit. He also announced to target

Indonesia as maritime nation and directed to invest more to regions for development instead of concentrating

to Java Island. With these considerations, third mid-term development plan in year 2015 to 2019 has been

published at the middle of January 2015.

1-4

1.2 Overview of Target Sector

To understand structure of the Indonesian National Government, hearings to relevant organizations were

conducted after the documents reviewed. As a reference report, “the Study on the Second Jakarta - Cikampek

Toll Road Project in the Republic of Indonesia” has been utilised.

1.2.1 Indonesian Road Administrative Organizations and Road Classification

The Indonesian road administration consists of three sectors as follows; Bina Marga of Public Works which is

in charge of national highways, each province’s public department (Dinas PU Provinsi- DPUP) which is in

charge of provincial highways, and each prefectural public department (Dinas PU Kabupaten - DPUK) and

each city public department (Dinas PU Kota - DPU Kota), which is in charge of prefectural and city highways

and other roads.

As for toll roads, each project master plan is developed by Bina Marga and then implemented by the Indonesia

Toll Road Authority (BPJT) as provided in Table 1.2-1 below. Specifically, BPJT is in charge of road projects

initiated by the government. Bina Marga is responsible for master plans of private sectors proposed projects,

and their implementation is looked after by BPJT. However, road management work itself is provided by a

concession contractor of each project.

Table 1.2-1 Roles between Bina Marga and BPJT

Each Phase on PPP Guideline Roles

Bina Marga BPJT

1. Project Formation Implemented by Bina Marga Advices to Bina Marga

2. Pre-F/S and F/S Pre-F/S F/S

3. Selection of PPP Scheme Consultation and Decision Making

4. Bidding Process Assist to BPJT Preparation and Implementation of Bidding

5. Concession Contract Assist to BPJT Implementation

6. Operation Appraisal of Project Supervision of Project

7. Termination of Concession Asset to Transfer to Indonesian Government and Project Appraisal

Source: Toll Road PPP Guidelines Manual (JICA/PU) 2012

JICA/PU “Toll Road PPP Guideline/Manual” was prepared by Ministry of Public Works of Indonesia (Bina

Marga and BPJT) and the JICA. The purpose of this Guideline/Manual is to clarify the principles,

methodologies, and procedures to plan and implement toll road PPP projects in Indonesia

Figure 1.2-1 and 1.2-2 show the organization of Bina Marga and BPJT. Bina Marga consists of five divisions

under the Directorate General, whereas BPJT has five divisions under the head.

1-5

Figure 1.2-1 Structural Organization of Bina Marga

Note) responsible regions in Region I, II and III

Directorate of Region I: Sumatera,

Directorate of Region II: Java, Bali, Nusa Tenggara, Kalimantan,

Directorate of Region III: Sulawesi, Maluku, Papua

Source: Bina Marga

Figure 1.2-2 Structural Organization of BPJT

Source: BPJT

1-6

Based on the information above, hearings to the Program Division and the Technical Affairs Division of Bina

Marga, both of which are contact points for PPP project planning, and to the head of BPJT and the Technical

Division, both of which are also contact points for PPP project operation, were conducted. Each hearing survey

was carried out in the following order; Department of Policy & Strategy in Program Division, Bina Marga,

Department of Freeways & Urban Road Technical Affairs in Technical Affairs Division, Bina Marga and BPJT.

The following were confirmed by the hearing surveys.

Private sectors proposed toll road projects: Whilst project formation is under the jurisdiction of Bina

Marga and project execution is under the jurisdiction of BPJT, project formation is actually carried out in

coordination between Bina Marga and BPJT.

The Department of Financing & Foreign Cooperation in Program Division, Bina Marga is the contact

point for project formation and evaluates the possibility of F/S.

Government initiated road projects: In addition to the contact point above, Department of Policy &

Strategy and Department of Programming & Budgeting in Program Division, Bina Marga are also

involved in project formation in order to receive financial support from the Indonesian Government.

Assets of toll roads and national highways belong to Bina Marga whether or not the road is currently in

operation by private companies.

The first case of private sector proposed toll road project is the Bali on the Sea Toll Road Project by Jasa

Marga.

1.2.2 Related Organizations to the Study

Organizations relevant to the study and summary of toll road company (Special Purpose Company: SPC) are

provided as follows. Characteristic of the toll road project is that the mayor of Makassar, whose city is leading

the East Indonesia, has proposed an urban development plan based on the smart and eco city concept including

the toll road network development. The road network formation, industrial complexes, a new port, dwelling

houses and shopping areas are actively being developed.

The objective of the study is to realize possible toll road network development through PPP scheme. The study

has been conducted according to the following procedure; (1) Hearing survey to the Ministry of Public Works

(PU) Indonesia about expressway PPP policy, (2) exchange of views related to various institutions and

procedures, (3) formation of project policy with the mayor of Makassar City and (4) Discussion about business

plans with the local toll road company.

1-7

Figure 1.2-3 Related Organization of Project

Source: Study Team

1.2.3 Road Related Laws in Indonesia

The followings are provided as important road related Indonesian laws; Road law No.38 (promulgated in 2004),

Decree No.15 related to toll roads (promulgated in 2005), Presidential decree No. 67 related to PPP framework

(promulgated in 2005), its revised edition (No.13) (promulgated in 2010), and its revised edition (No.56)

(promulgated in 2011).

Business structure of Indonesian toll road PPP projects is shown below.

Table 1.2-2 Business Structure of Indonesian Toll Road PPP Projects

ContentsModality

Construction Finance O&MRevenue of

TRE

BOT TRE TRE TRE Toll Tariff

SBOT TRE(Private Segment)

TRE(Private Segment)

TRE Toll Tariff

O&M concession(Lease)

Contractors expect for TRE

Government TRE Toll Tariff

O&MOutsourcing

Contractors expect for TRE

Government TRE Payment by Government

TRE: Toll-Road Enterprise

Source: Study Team

SBOT stands for “Supported BOT” or “Subsidised BOT”, which mean the scheme to subsidise unprofitable

projects in order to improve their viability and to ensure the projects feasibility. Governmental support with the

SBOT scheme specifically includes financial support for land acquisition and part of construction works. The

scheme also aims to give concession rights of toll road operation to private sectors even if the road is

constructed by public sectors.

1-8

1.2.4 Road Conditions

In year 2012, the total road length in Indonesia reached 502,000km and continuously increases. District roads

account for major share of the total roads. Progress of road length developed in Indonesia is shown below.

Figure 1.2-4 Progress of Road Length


1.2.5 Toll Road Conditions

According to the BPJT report (Toll Road Investment Opportunity in Indonesia) in 2013, current toll road

conditions in Indonesia are shown below.

Table 1.2-3 Current Toll Road Conditions in Indonesia

Items Number Length Remarks

In Operation 29 routes 784km70% of toll roads are operated by Jasa Marga

(privatized in 2004)

Concession Agreement Signed 24 routes 875km

Tender Process 3 routes 160km

Roads being built by Government 4 routes 77km

Priority Projects 7 routes 395km

Total 67 routes 2,291km

Source: Toll Road Investment Opportunity in Indonesia (2013)

According to the interview to the officers in Bina Marga, new president plans to build 1,000km of each

national roads and toll roads in next five years, details of which are not known yet. Further, BPJT seems to

have potential toll road plan of a few thousand km long.

kkm

1-9

1.2.6 Road Budget

Road budgets in year 2010 to 2013 are shown below.

Table 1.2-4 Road Budget in Indonesia

Unit: billion IDR

Items 2010 2011 2012 2013

Road Construction / Improvement

New Construction 2,172 3,251 5,531 5,110

Road Widening / Improvement 5,804 11,269 16,310 16,580

Others 803 990 3,967 2,744

Total 8,779 15,510 25,808 24,434

Road Maintenance

Routine Maintenance 1,298 1,873 1,883 2,173

Periodic Maintenance 2,246 4,063 4,326 3,497

Total 3,543 5,936 6,209 5,671

Grand Total 12,322 21,446 32,017 30,105

Source: Data of Bina Marga translated by Study Team

1-10

1.3 Overview of Target Area

1.3.1 Overview of the Makassar City and South Sulawesi Province

Makassar is one of the major cities in Indonesia, which has been leading the Eastern Indonesian economic

activities (Population: approx.1.7 million, GDP growth rate: 1.7%). The main industry of the city is distribution

industry based on its hub port and harbor, whose shipping routes are connected to Jakarta and Kalimantan.

Agricultural products of South Sulawesi are exported from the Makassar Port. In addition, waterfront area of

the city is largely being developed and expected to be an important base of Eastern Indonesia in the near future.

The development is also expected to contribute to diminish regional disparities in Indonesia.

The mayor of Makassar, who inaugurated in May 2014, has propounded new construction of toll road to

mitigate serious traffic congestions in the city, development of South Makassar, and introduction of the smart

and eco city scheme.

1.3.2 Local Industries

Northern mountainous area in Sulawesi is abundant in mineral resources. For instance, Tana Toraja, Luwuk,

and Mamuju Prefectures are rich in gold, silver, nickel, zinc and lead as well as coal, petroleum, geothermal

energy, hydro-energy and so forth. In addition, the limestone lying from midland to south of the state is

abundant in marble, manganese, copper, chromium and natural gas while the Spell Mound Islands area along

Makassar Strait is rich in petroleum (estimated 4 billion barrels) and natural gas (estimated 40 billion barrels).

Because most parts of these natural resources have not been developed yet, momentum of mining these

resources have been high by private sectors in recent years.

Under the circumstances above, port development in Makassar City will stimulate industrial establishment,

utilizing these natural resources and those will be exported to Japan. Toll road extension will trigger these

effects.

It is to note that International Nickel Indonesia of Canada JV (commonly known PT. INCO) has already been

mining nickel matte in northern Luwuk Prefecture since 1975, and has exported them to Japan. The Makassar

Port located in the capital of South Sulawesi can be said a key facility of Eastern Indonesia.

1.3.3 Port Development Plan

According to the preliminary surveys, it was revealed that the state owned company, Pelindo IV is going to

invest Japanese Yen (JPY) 71 billion total by 2050 to the Makassar new port construction project. The project is

said to begin in year 2014.

The study made a hearing survey to Pelindo IV about concrete plan of the port development project. Pelindo IV

currently possesses the ability to deal with 750 thousand TEU of containers, and has already dealt with 650

thousand TEU. Therefore, the volume of transaction is expected to exceed the maximum capacity in year 2017.

70% of the containers are shipped from Jakarta and Surabaya to Makassar, and 30% are shipped to any other

areas via Makassar Port. The quantity of transport between the Makassar Port and Makassar Airport seems to

1-11

be small because the purpose is only limited to transport of fresh food. Current annual average daily traffic

between the port and the entrance of the toll road is approximately 2,000.

The new port development plan is summarised as follows;

The new port development project plans commencement of Phase 1 in 2014, and is now waiting for

approval of the Ministry of Communication. The project itself, whose expected volume of container

transactions in the future is 9 million TEU, is going to be implemented by three phases. The expected

volume of container transactions is about 3 million TEU in year 2030.

Depth of the new port is planned to increase to 14m from 9 to 12 m, and a berth whose area and length are

130ha and 1km and is going to be newly constructed. The terminal for passengers will be relocated to

Takalar in several years.

The development project will conform to the procedure as follows; Planning – Consultation – Review of

the plan – Approval of Makassar City – Approval of the Ministry of Communication – Commencement of

construction.

Figure 1.3-1 Port Development Plan by Pelindo IV

Source: Pelindo IV

The new Makassar Port is planned to be connected with the existing toll road network, and Peliand IV

intends to consult with PT Margautama Nusantara (MUN) who is a toll-road operator in Makassar. Length

of the planned connecting toll road is 1.5 to 2.5 km and therefore 3 to 5 ha of land acquisition will be

required.

New port development project

1-12

Figure 1.3-2 Access Road Plan from New Port to Existing Toll Road

Source: Pelindo IV

1.3.4 Industrial Park

Due to the increase of labour cost in Jakarta metropolitan area, a manufacturing hub of Eastern Indonesia will

be required in the years ahead. The port development project in Makassar seems to encourage Japanese

companies to establish factories around the Makassar City area. Summary of the industrial park construction

project is provided as follows.

There already exists industrial parks around Makassar City and some Japanese firms have been there.

According to the consular office in Makassar, the buddhist altar and coffee manufacturers have been

established in Makassar and it was recently found that a Japanese company, who manufactures secondary

products of construction materials in cooperation with Bosowa Group, plans to move into the industrial park

An inquiry was also made into the Parangole Indah, who operates an industrial complex along the existing

toll road. The developer is an owner of five/six firms in Western Java, South Kalimantan, Surabaya, and FKS,

who is an affiliated company of the developer, exports agricultural products such as cocoa and cassava. At the

same time, the FSK imports soybeans from the US and Brazil, and distributes them across East Indonesia.

The area of the industrial park is 600 to 700 ha, and has been developed since 2004. About 200ha of them had

already been developed, and 300 firms had already registered in the park. 40 ha of warehouses, which are

equivalent to approximately 20% of the developed area, have already been occupied. Business policies of the

industrial park have same direction with Makassar City, i.e. the smart and eco city scheme. The developer has

planned comprehensive construction of the industrial park, universities, office buildings, shopping malls and

1-13

dwelling houses. A 20 year long term strategy has been drawn up as long as 5 years middle term strategies.

Land acquisition and construction works of new national roads have been carried out by the Bina Marga

regional office, in addition to the existing national roads. The development also takes into account

construction of an interchange in order for connection between the industrial park and the existing toll road

via the new national road located 400m from the industrial park.

New port is going to be constructed at 5km from the industrial park. As a result, the total capacity of port in

the area is expected to rise several folds and attractiveness of the industrial park will be improved. The

average volume of daily logistics flow from/into the industrial park is 3,000 numbers, and 1,000 numbers of

20-tonne trailers per day utilise the toll road to access to the Makassar Port. The factories there will keep

utilising the toll road even if the tariff is raised to a certain extent because of its convenience. Some other

Japanese firms are also considering for utilising the industrial park.

1.3.5 Makassar Airport

“The Survey of the Expansion Project of Makassar Airport associated with the Reestablishment of Indonesian

Airport Network”, which is supported by the Ministry of Economy, Trade and Industry, Japan (hereinafter

“METI”), has been in practice. Prior to the survey, members of the study team made discussions to maximise a

synergistic effect between the studies of the airport expansion project and the toll road project. The members

also agreed to keep discussions during the study.

The study of Makassar airport expansion describes that the expansion can contribute to sustainable

development of Indonesian air transportation because current chronic congestion at Sukarno Hatta Airport in

Jakarta could be a bottleneck for whole of the Indonesian air transportation network and economic growth.

More specifically, the study aims to improve the accessibility to local airports in East Indonesia by positioning

Makassar Airport as the regional hub airport.

Makassar Airport is located 1,434km from Jakarta, and its new terminal building was constructed in 2008.

Nevertheless, number of passengers has already exceeded the capacity and therefore the terminal is going to be

extended. The number of passengers reached 10 millions in 2013; 80% are domestic passengers and 20% are

international passengers.

1.3.6 Road Development Plan

Japan International Cooperation Agency (JICA) had implemented “Ujung Pandang Area Highway

Development Study” in 1989 and “the Study on Arterial Road Network for Sulawesi Island and the Feasibility

Study on Priority Arterial Road Development for South Sulawesi Province” in 2008. (details are provided in

Chapter 3.1).

Chapter 2 Study Methodology

2-1

2.1 Scope of Study

2.1.1 Background

Makassar City is a major city (population approximately 1.7 million, growth rate of South Sulawesi in 2013

7.6%) in Indonesia, leading East Indonesia. Main industry of Makassar City is distribution with the port

exporting agricultural produces etc. from South Sulawesi and the port at Makassar functions connectivity

with Java (Jakarta and others) and Kalimantan. Large scale developments are being carried out along

waterfront of Makassar City, including new port development and as a result, Makassar City will be a base

city for East Indonesia and regional difference be reduced.

The Mayor of the city inaugurated in May 2014 is discussing with the organization in charge of roads as well

as the company for toll road operation and maintenance (PT Margautama Nusantara: MUN) in order to

construct and extend toll road in the city, which will result reduction of congestion in the city, development of

South Makassar and introduction of smart and eco city. The Mayor has made mutual understanding and

cooperation with MUN for constructing new toll roads.

With the above understanding, MUN has proposed West Nippon Expressway Company (NEXCO-West) to

study new toll roads in Makassar together through the Indonesia office of NEXCO-West, which has further

requested Japan Expressway International Company (JEXWAY), Katahira & Engineers International (KEI)

and Katahira & Engineers (KE) to team up for study of toll roads there. Subsequently all companies have

nominated KEI as a lead company and have proposed the study.

2.1.2 Objectives of Study

The project is to construct new toll roads and operate & maintain them with Public Private Partnership (PPP)

scheme.

The project consists of two phases, Phase 1 of which is to extend existing toll road (approximately 4km) and

Phase 2 of which is to further extend toward bay area of Makassar City with PPP scheme by investing

together with current toll road operator. As no land acquisition is needed in Phase 1, viability seems high and

comparison of two road structures such as (a) At-Grade and Viaduct (at major junctions) Structure and (b) all

Viaduct Structure will be made. For Phase 2 there are two options (Option A and B) to compare. Option A

will be along river side, whereas Option B will be in city area.

2.1.3 Outline of Study

The followings are outline of the study.

Basic design: to carry out basic design and route selection for Phase 1 and 2 based on data of google and

digital map, and site survey

Estimation of project: to carry out estimation of project using latest market prices

Review of related development plans: to check development plans (like the port and industrial parks

etc.) and review interrelation with toll road

2-2

Traffic demand forecast: to analyze traffic demand forecast and toll rates based on socio-economic

conditions and development as well as road & toll road networks

Environmental and social considerations: to review laws and regulations for environmental impact

assessment, land acquisition and resettlement of affected people

Plan of operation and maintenance of toll roads: to review operation and maintenance system on existing

toll roads and plan the system on new toll roads

Discussions with implementing organizations: to discuss with Directorate General of Highway (Bina

Marga) and Toll Road Authority (BPJT) of Ministry of Public Works (PU) and Makassar City

Discussions with other stakeholders: to discuss with toll road operators (e.g. MUN)

Review of implementation scheme: to review PPP scheme (BOT, SBOT etc.) and affiliation methods

with local operators and to compile risks in implementation

Review of finance: to check scheme of Japanese financial organization (JICA, JBIC etc.) as well as

Japan Overseas infrastructure Investment Corporation for Transport & Urban Development and review

them

Review of ITS: to review traffic control and traffic information provision based on technology of ITS

and ETC

Economic and Financial analysis: to analyze the project in economic and financial view point

2-3

2.2 Study Method and Structure of Study Team

2.2.1 Study Method

There are studies in Japan and Indonesia as follows.

(1) Preparatory Works in Japan

Study reports (PPP road projects and road related projects) done in Indonesia and same regions (Southeast

Asia) are collected and reviewed. Technical standard and specification on roads in Indonesia are collected as

well as laws and regulations related to roads.

Based on the information, items to check and review and questionnaires to organizations to visit in Indonesia

are compiled. Preliminary routes and road structures are planned in advance.

[Items to check for first study in Indonesia]

Toll road alignment and road structure: routes and starting / end points and connection with existing

roads, toll road geometry design and lane number / width

Traffic volume: plan for traffic counts, by referring previous studies

Operation and maintenance system: maintenance and traffic control level on existing toll road, collection

method of toll

Procurement: PPP scheme and guideline, risk allocation, finance scheme and so on

Environmental and social considerations: regulation for environment, land acquisition and resettlement

Consistency with high level development plan: national development plan, city spatial plan

Prior to first visit to Indonesia, kick-off meeting with the representatives in Ministry of Economy, Trade and

Industry (METI) is arranged for discussion on study policies and actions in Indonesia.

(2) First Study in Indonesia (late September to middle of October 2014)

Discussions with implementing organizations and related ones are made in Jakarta and Makassar and

required data are collected. Traffic count survey is carried out. Site survey is carried out and aerial photos are

taken using remote control miniature helicopter along planned routes of toll roads in Makassar.

Operation and maintenance offices on existing toll roads are visited to have current operation and

maintenance system.

As soon as return to Japan, a meeting is arranged to report the results of the first study in Indonesia to the

representatives in METI.

(3) First Study in Japan

With various survey, collected data and discussions with the related organizations in Indonesia, future traffic

demand is computed, road structure and basic design is determined and project costs are estimated. Operation

2-4

and maintenance plan on new toll roads is formulated and those costs are calculated. In addition, costs for

land acquisition and resettlement are briefly computed and total project costs are summed up.

Based on regulations, guidelines, manual and discussions with related organization in regard to PPP

procedure, implementation schedule is established. With those (project costs and implementation schedule

etc.), economic and financial analysis are done as first trial.

With the data prepared in the preparatory works in Japan and collected in the first study in Indonesia, it is

confirmed that the project is consistent with national and city development plans.

Prior to the second study in Indonesia, interim report compiled the above is explained to the representatives

in METI and related organizations. Study policies and actions in the second study in Indonesia are delivered

as well.

(4) Second Study in Indonesia (late November 2014)

Interim report compiled in the first study in Japan is explained to related organizations (Makassar City, South

Sulawesi Province, Bina Marga and BPJT as well as local company- toll road operator) and discussed with

them to have their comments. It is to confirm latest PPP guideline and PPP procedures.

As new president inaugurated in October 2014, policies of new president are checked if any and national

development plans are confirmed whether those are revised.

As soon as return to Japan, a meeting is arranged to report the results of the second study in Indonesia to the


(5) Second Study in Japan

With all data and plans collected and/or prepared in the first and second study in Indonesia and the first study

in Japan, draft final report is compiled and submitted to the representatives in METI and related

organizations.

(6) Third Study in Indonesia

Draft final report compiled in the second study in Japan is explained to related organizations (Makassar City,

Bina Marga, BPJT, JETRO Jakarta office, JICA Indonesia office and Embassy of Japan as well as local

company- toll road operator) and discussed with them to have their comments, if any.

As soon as return to Japan, a meeting is arranged to report the results of the third study in Indonesia to the


(7) Third Study in Japan

Taking all comments on the draft final report from all related organization, final report is compiled and

submitted to METI.

2-5

2.2.2 Structure and Member of Study Team

Structure and member of study team is shown below.

Figure 2.2-1 Structure and Member of Study Team

Source: Study Team

Katahira & Engineers International

(KEI)

West Nippon Expressway Company

(NEXCO-West)

Japan Expressway International Company

(JEXWAY)

Katahira & Engineers (KE)

Project Manager (KEI) Project Development

Department Mr. YAMAUCHI Masafumi

Traffic Count/ Traffic Demand Forecast (KE)

Road & Traffic Department Mr. OHSUMI Tadashi

Development Plan (NEXCO-West)

Oversea Business DepartmentMr. SAITA Kenji

Road Design / Estimation (KE)

Road & Traffic Department Mr. ITO Hiroshi

Economic Analysis (KEI)

Project Development DepartmentMr. KUNIMASA Yoshiro

Operation and Maintenance Plan(NEXCO-West)

Oversea Business departmentMr. MIKURA Yoshinori

Financial Analysis (JEXWAY)

Project Team Mr. KUROKAWA Seiji

Road Plan (Route Selection) (KE)

Road & Traffic Department Mr. YAMANASHI Noboru

Coordination in Indonesia (KEI)

General Manager in IndonesiaMr. URUSHIMATSU Noboru

Environmental & Social Considerations (KEI) Environment & Social Development Division

Mr. TANOGUCHI Taiji

2-6

2.2.3 Organizations in Indonesia for Discussions

Organizations in Indonesia for discussion are shown below.

Table 2.2-1 Organizations in Indonesia for Discussions

Organizations Department/Division Items for Discussions

Bina Marga PU Planning Division

Policy & Strategy Department

PPP Scheme and Procedure,

Road Plan & Administration

Bina Marga PU Technical Division

Expressway & Urban Road Engineering

Department

PPP Procedure,

Expressway / Road Plan &

Administration

BPJT PU Technical Division Toll Road Plan

PPP Scheme and Procedure

Makassar City Mayor

Public works / Planning / Environment

Department

City Development Plan

Toll Road Plan

PPP Scheme and Procedure

South Sulawesi Province Public Works / Development Plan

Department

Province Development Plan

Toll Road plan

National Land Agency Makassar Office Land Acquisition / Resettlement

Procedure

Source: Study Team

2-7

2.3 Study Schedule

The study has commenced on September 10, 2014 (after contract signed) for the preparatory works in Japan

and the first study in Indonesia has been carried out from September 28 to October 17, 2014. After the first

study in Japan, the second study in Indonesia has been carried out from November 22 to December 7, 2014.

After the second study in Japan, the third study in Indonesia has been carried out from January 20 to January 28,

2015.

Draft final report has been submitted on January 15, 2015 and final report been submitted on February 27,

2015.

Study schedule and discussion lists in Indonesia are shown below.

Figure 2.3-1 Study Schedule

Items 2014 2015

September October November December January February

Study in Indonesia

1) Traffic count

2) Environmental & social survey

3) Review of Viability / implementing body

4) Discussion with related organizations

5) Explanation of report

Study in Japan

1) Preparatory Works

2) Design / Traffic Demand

3) Environmental & Social Considerations

4) Review of Viability / Implementing body

5) Compilation of Report

Meetings

Report Submission

Source: Study Team

Draft Final Report Final Report

Kick-offMeeting

InterimReport

Return Meeting

Final Meeting

ReturnMeeing

2-8

Table 2.3-1 Discussion List with Related Organization in First Study in Indonesia

no Date & Time location Organization Contents

(1) September 30, 2014

10:30AM~11:30AM

Jakarta JETRO

Jakarta Office

1) Introduction of project

2) Tendency of development of regions

(2) September 30, 2014

15:00PM~16:30PM

Jakarta NI/MUN 1) Explanation of presentation to MKS Mayor

2) Discussion about unsolicited/solicited project

(3) October 1, 2014

10:30AM~11:30AM

Jakarta JICA

Indonesia Office


2) PPP case of power plant in central Java

3) Recommendation of visit to JICA MKS office

(4) October 1, 2014

14:30PM~15:30PM

Jakarta Embassy of Japan 1) Introduction of project

2) Issues for PPP projects

3) Recommendation of visit to consular office

(5) October 2, 2014

10:00AM~11:30AM

Jakarta Bina Marga

Planning Division


2) Procedure for unsolicited/solicited project

3) Appointment of head on October 10

(6) October 2, 2014

14:00PM~15:00PM

Jakarta BPJT

Head / Technical

Division


2) Procedure for unsolicited/solicited project

(7) October 2, 2014

15:30PM~16:00PM

Jakarta Bina Marga

Technical Division


2) Appointment to head on October 10 or November

(8) October 3, 2014

9:20AM~11:30AM

Cikarang PS Mitsubishi 1) Conditions of precast girders in Indonesia

2) Participation to project in MKS

(9) October 6, 2014

10:00AM~11:00AM

Makassar Consular Office of

Japan


2) Confirmation of safety in MKS

(10) October 6, 2014

11:00AM~1:30PM

Makassar JICA

Makassar Office


2) Confirmation of safety in MKS

(11) October 6, 2014

13:30PM~16：00PM

Makassar Industrial park

(Parangole)

1) Conditions of factories in industrial park

2) Future development / expansion of park

(12) October 7, 2014

13:00PM~15:00PM

Makassar Makassar City

Mayor &

Representatives


2) Consistency of project to city spatial plan

3) Procedure of PPP proposal

(13) October 8, 2014

10:00AM~11:30AM

Makassar Pelindo IV 1) Port development plan and its progress

2) Connection of port access to toll road

(14) October 8, 2014

11:00AM~12:00non


Road / Planning

Department

1) Progress of city development plan

2) Collection of related information

(15) October 8, 2014

15:00PM~16:00PM

Makassar Sulawesi PU 1) Consistency of project to road development plan

2) Maintenance of national roads

(16) October 9, 2014

16:00PM~16:30PM


Environment

Department

1) Procedure of environmental impact assessment

2) Implementation body for environmental impact

assessment

(17) October 10, 2014

13:00PM~14:00PM

Makassar Hasanuddin U.

Environment

Department

1) Procedure of environmental impact assessment

2) Report of environmental impact assessment

3) Land acquisition & removal of trees

(18) October 10, 2014

8:00AM~9:00AM

Jakarta Bina Marga

Planning Division

1) Application procedure of PPP proposal

2) Toll road in MKS

Source: Study Team

2-9

Table 2.3-2 Discussion List with Related Organization in Second Study in Indonesia


(1) November 24, 2014

14:30PM~16:00PM


Mayor &

Representatives

1) Explanation & discussion of project (PPP)

2) Procedure of land acquisition & resettlement

3) Confirmation/progress of city development plan

(2) November 25, 2014

10:00AM~11:00AM

Makassar Province

Public works

Department

1) Explanation of project


(3) November 25, 2014

11:30AM~12:30noon

Makassar Land Agency

Makassar office



(4) November 25, 2014

14:00PM~15:30PM

Makassar Province

Development Plan

Department



(5) November 26, 2014

10:30AM~12：30PM

Makassar Hasanuddin U.

Environment

Department

1) Topics of environmental issues in MKS

2) Regulation & standard on environmental issues

3) Procedure on environmental impact assessment

(6) November 27, 204

10:00AM~11:15AM

Jakarta Bina Marga

Technical Division

BPJT




4) Discussion about VGF

(7) November 28, 2014

10:00AM~11:00AM

Jakarta Bina Marga

JICA Expert


2) Recommendation of discussion with Water

Resources Department

(8) November 28, 2014

14:00PM~15:00PM

Jakarta Bina Marga

Planning Division



3) Recommendation of discussion with Water

Resources Department

(9) December 1, 2014

16:00PM~17:00PM


BAPPEDA

1) Confirmation of Regulation of Land Acquisition

2) Issues of land acquisition and resettlement

(10) December 3, 2014

10:30AM~11:30AM


Environment

Department

1) Issues of environment in MKS

2) Regulation of environment, standard and

monitoring

3) Criteria of environmental impact assessment

Source: Study Team

2-10

Table 2.3-3 Discussion List with Related Organization in Third Study in Indonesia


(1) January 21, 2015

9:00AM～10:00AM

Jakarta JICA

Indonesia Office

1) Explanation & discussion of draft final report

2) Discussion on JICA PPP Study

3) Hearing of Third Mid-Term Development Plan

(2) January 21, 2015

15:00PM～16:00PM Jakarta Embassy of Japan 1) Explanation & discussion of draft final report


3) Discussion on master plan of urban transport in

Makassar

(3) January 21, 2015

17:20PM～18:35PM Jakarta NI/MUN 1) Discussion on schedule of meeting in Makassar

& future plans

2) Discussion on MOU with MUN

(4) January 22, 2015

9:00AM～10:00AM Jakarta JETRO

Jakarta Office



(5) January 23, 2015

8:40AM～9:40AM Jakarta Bina Marga

Planning Division


2) Discussion on PPP proposal of Phase 1

3) Discussion on the facts on Phase 1 in the past

(6) January 23, 2015

10:00AM～11:20AM Jakarta Bina Marga

Technical Division

BPJT


2) Explanation on PPP proposal

3) Recommendation of explanation to Bappenas

(7) January 26, 2015

14:00PM～15:00PM


Representatives in

Bappeda, PU, Transport

& Planning


2) Request of cooperation on JICA PPP Study

3) Explanation of necessity of master plan of

urban transport in Makassar

Source: Study Team

Chapter 3 Justification, Objectives and Technical

Feasibility of the Project

3-1

3.1 Background and Necessity of the Project

3.1.1 Background of the Project

(1) National Development Plan

Indonesia government formulated national long-term development plan (RPJPN) in year 2004, targeting in

year 2025. Based on the RPJPN, national medium-term development plan (RPJMN) has been formulated at

every five years. Current RPJPN is the second phase of medium-term plan for year 2010 to 2014, the vision

of which is to achieve “prosperous, self-reliant, democratic and just nation”. The followings are three

objectives in the second phase of RPJPN.

To stabilize macro-economy, to improve business environment, to develop infrastructure and then to

maintain and improve economic growth under severe competition in the world

To reduce poverty and inequality through job creation, proper distribution of growth and strengthening

of regional development and connectivity also by taking care of environment and global issues

To maintain social stability through development of democracy and eradication of corruption

In the second phase of RPJPN, target figures are indicated in the year of 2010 and 2014 and the table below

shows comparison of those figures and actual figures in 2013.

Table 3.1-1 Target Figures in Second Phase of RPJPN and Actual Figures in 2013

Items Figures in 2010

(estimation at planning) Target Figures in 2014 Preliminary Figures in 2013

Economic Growth 6.0% 7-7.7% 5.78% Inflation rate 4-6% 3.5-5.5% 8.38% Poverty ratio 12-13.5% 8-10% 11.25% Unemployment rate 7.6% 5-6% 6.17%

Source: Outline of Indonesia (JICA February 2014) and Statistics Indonesia

The second phase of RPJMN may not be achieved, as per the preliminary figures in 2013 the above.

Master Plan for Acceleration and Expansion

of Indonesia Economic Development

(MP3EI 2011 to 2025) has been announced

in year 2011, referring to the RPJPN. MP3EI

targets Indonesia to be one of the world

developed countries by 2025 with expected

per capita income of USD 14,250 to 15,500.

Framework of MP3EI is shown in the right

and three main strategies are written below.

To improve regional economic

potentials through expansion of six

economic corridors (Sumatra, Java,

Kalimantan, Sulawesi, Bali-Nusa

Tenggara, Papua-Moluccas)

Figure 3.1-1 Framework Design of MP3EI

Source: MP3EI in Indonesia

3-2

To strengthen national and regional connectivity

To strengthen human resources and national science and technology capabilities

President Joko Widodo inaugurated in October 2014, cut fuel subsidies quite a bit in November 2014 and

January 2015. He also announced to target Indonesia as maritime nation and directed to invest more to

regions for development instead concentrating to Java Island. With these considerations, third mid-term

development plan in year 2015 to 2019 has been published at the middle of January 2015.

(2) Road Development Plan around Makassar

For road networks around Makassar City in Sulawesi Island, Japan International Cooperation Agency (JICA)

carried out “Ujung Pandang Area Highway Development Study (hereafter referred to the JICA Study in

1989)” in March 1989 and “the Study on Arterial Road Network for Sulawesi Island and Feasibility Study on

Priority Arterial Road Development for South Sulawesi Province (hereafter referred to the JICA Study in

2008)” in March 2008.

In the JICA Study in 1989, the road network configuration in 2009 is indicated, which consists of three ring

roads and five radial roads.

Figure 3.1-2 Ujung Pandang Road Network Configuration in 2009

Source: JICA Study in 1989

3-3

The JICA Study in 2008 includes road development all over Sulawesi Island and feasibility analysis on

priority arterial roads around Makassar City in South Sulawesi Province. The JICA Study in 2008 states in

the report about arterial road around Makassar that the high priority five project roads, including Trans

Sulawesi Mamminasata Road from Maros to Takalar, are technically and economically feasible and

acceptable from the environmental aspects and contribute to the enhancement of economic development

of South Sulawesi. Therefore, the report recommends earlier implementation of the projects.

Figure 3.1-3 Priority Arterial Road Development for South Sulawesi Province

Source: JICA Study in 2008

During the interview to the Sulawesi PU in October 2014, the Mamminasata Bypass (route 1 in the Figure

above) would be commenced to construct soon.

(3) Makassar City Development Plan

Makassar City has formulated the city spatial plan in year 2005 (development in year 2005 to 2015),

following the RPJPN and the road network proposed in the JICA Study in 1989. The spatial plan and road

network plan in year 2005 are shown in Figure 3.1-4 below.

3-4

Figure 3.1-4 Makassar City Spatial Plan (above) and Road Plan (below)


3-5

Makassar mayor inaugurated in May 2014 has presented new city development plan, which is shown in

Figure 3.1-5 below. The plan is as at year 2031 and includes extensive reclamation and new recreation /

shopping plaza / office / residential space, which was not in the plan of year 2005.

Figure 3.1-5 Makassar Development Plan (2031)

Source: Makassar Development Plan in 2014

The city spatial plan and road development plan have been presented simultaneously and are shown in Figure

3.1-6. The road development plan is consistent with the priority road development in the JICA Study in 2008

and almost identical to the road plan in 2005. The waterfront roads in reclamation land are added to the

previous plans.

3-6

Figure 3.1-6 Makassar City Spatial Plan (above) and Road Plan (below) (Target Year: 2031)


3-7

During the studies in Indonesia, several times of discussions with Makassar City have been carried out and it

is confirmed that the city intends to do reclamation at waterfront, to construct new development on the

reclamation and to extend road network, including toll roads in order to have smooth movement in the city

(means to mitigate traffic congestions). These are consistent to improvement of regional economic potentials

in Sulawesi region and strengthening of national and regional connectivity in the national development plan.

State company, Pelabuhan Indonesia (Pelindo IV) about starts to construct new port and intends to connect

new port to the existing toll road. Pelindo IV is planning port access to the toll road, which is also consistent

to the national development plan (strengthening of connectivity).

The industrial park (Parangole) along the toll road has been developed about 30 % of total area (600 to 700

ha). The park is developing further in the area and intends to install additional interchange along the toll road

to have easy access to the new port.

3.1.2 Necessity of the Project

(1) Necessity of the Project

Makassar city is a major city (population approximately 1.7 million, growth rate of South Sulawesi in 2013

7.6 %) in Indonesia, leading East Indonesia. Main industry of Makassar city is distribution with the port and

large scale developments are being carried out along waterfront of Makassar city, including new port

development. As a result, Makassar City will be a base city for East Indonesia and regional difference in

Indonesia be reduced.

Makassar City targets the followings in order to be a base city in East Indonesia, following the National

Development Plan.

1) Development of waterfront including new port construction

2) Improvement of north-south and east-west transport networks

3) Introduction of and changing to smart- and eco-city

With these targets, Makassar City is discussing about extension of toll road on Pettarani Road (which is most

crucial commuter artery, connecting the south – new developed part of Makassar to the north – most

developed part of Makassar) with toll road operator PT Margautama Nusantara (MUN).

The parent company of MUN (PT Nusantara Infrastructure) has proposed to West Nippon Expressway

Company (NEXCO-West) to carry out pre-feasibility study for extension of toll road onto Pettarani Road

together, as two companies have mutual understanding for cooperation on toll road in Indonesia.

Request letters for pre-feasibility study for extension of toll road onto Pettarani Road and further to

NEXCO-West from Makassar City and MUN are shown below.

3-8

Figure 3.1-7 Request Letters to NEXCO-West from Makassar Coty (above) and MUN (below)

Source: Study Team

3-9

(2) Outline of the Project

Pre-feasibility study of extension of toll road consists of Phase 1 and Phase 2. Phase 1 is to extend toll road of

4.3km long from the end of the existing toll road on Pettarani road, whereas Phase 2 is to review two routes

of toll road as Option A (6.2km long) and Option B (3.8km long). With Phase 1, traffic flow of north to south

direction will be improved. With Phase 2, traffic flow of east to west direction will be improved and

connection to waterfront development be achieved. Outline and Route Map of Phase 1 and Phase 2 is shown

in Table 3.1-2 and Figure 3.1-8 below.

Table 3.1-2 Outline of Phase 1 and Phase 2

Phase Route Contents & Remarks

Phase 1

Length 4.3km (a) At-Grade+Viaduct Structure (at major junctions)

Pettarani Road

(U. Sumoharjo - S. Alaudin) (b) All Viaduct Structure

Phase 2

Option A

Length 6.2km Embankment Structure

from Phase 1 end to South-West Direction and

to Sea Side along Jeneberang River Land Acquisition & Resettlement Required

Phase 2

Option B

Length 3.8km Viaduct Structure

from Junction of Hertasning toward Sea Side

through Rappocini and L Pasewang Road Land Acquisition & Resettlement Required

Source: Study Team

Figure 3.1-8 Route Map of Phase 1 and Phase 2

Source: Study Team

Basic design for each phase and option are provided in this Chapter and comparison to each is made in view

of road design. Project costs for each Phase and option are estimated in Chapter 5 and suitable one will be

selected through economic and financial analysis.

3-10

(3) Problems when the Project is not Implemented

When the proposed toll roads are not realized, the current conditions will be getting worse.

Traffic capacities in Pettarani Road are overflowed and there are always congestions.

Traffics in the north-south and east-west corridors are not flowed smoothly and economy will be badly

affected.

Developments in waterfront on the reclamation will be adversely affected and anticipated effects in

economy from the development will not be achieved.

(4) Effects when the Project is Implemented

The followings are effects when the proposed toll roads are constructed.

With completion of Phase 1, alternative route is provided to Pettarani Road nearly saturated. As traffic

capacity in north-south direction is increased, movements of human and logistics will be much

smoother.

With completion of Phase 2, traffic capacity in east-west directions is increased and therefore

connectivity between city center and developing areas in waterfront will be firm.

As vehicles are able to run faster, efficiency in economy is improved and environment is impacted

positively because vehicle emission is reduced.

(5) The Project & Other Plans to provide Similar Effects and Comparison

The proposal is to construct toll roads in two phases and with these toll roads, traffic congestions are

improved and traffic flows in north-south and east-west directions are getting better.

Alternatives to diminish congestions and to improve traffic flows are to construct and/or widen roads in the

city. Possible alternatives and issues for the alternatives are compiled below.

Alternatives Issues

Pettarani Road, Veteran Road etc. in north-south direction are newly constructed and/or widened.

Every road is in the city and along the roads there are lots of offices and houses. If new roads are constructed and/or existing roads are widened, large scale land acquisitions and resettlements are inevitable.

Rappocini Road, Alaudin Road etc. in east-west direction are newly constructed and/or widened.

Mamminasata Bypass and other ring roads (shown in Figure 3.1-3) being developed by Sulawesi PU and public works of South Sulawesi Province is to accelerate to complete.

Due to limitation of road budget, those constructions are slow and road developments are not matched with economic growth of Makassar City.

Under those circumstances, the proposed toll road extension with PPP scheme is best option to diminish

congestions and to improve traffic flow in north-south and east-west directions in the city.

Further, there is no Makassar city master plan at this stage and in order to develop Makassar city and

surrounding areas objectively, such master plan for the city and surroundings is urgently needed. Hence, it is

recommended to formulate “a master plan for urban transport system in Makassar” at the soonest.

3-11

3.2 Basic Studies to Determine Work Scope of the Project

3.2.1 Traffic Demand Forecast

The present state traffic volume of the road networks in Makassar City and Pettarani Road have been

investigated to setup future networks for the project. Based on the future network, the demand forecast has

been considered with the target routes.

(1) Current State of the Roads

1) Road Networks of Makassar City

The existing road, Pettarani Road (Phase 1), is located in the eastern area of Makassar City running

north-south. It is an eight lanes highway, connecting with the current toll road and takes part of the beltway

within the city center. However, it has right-turn lane only at major intersections, and the driver must make an

U-turn to drive to the opposite lane causing poor traffic flow, leading to a slow speed highway.

The existing road, Rappocini Road (Phase 2 Option B), holds only two lanes and width of the roads is narrow.

Hence, during the morning rush hours, there is traffic regulation that only two wheeled vehicles are permitted

to enter the city center.

In addition, the radiating roads from the city center to the suburbs are developing into four lanes, leading to

massive shopping malls and housing land developments meaning that the city is expanding.

Figure 3.2-1 Number of Lanes of the Roads in Makassar and Traffic Volume Survey Site

Source: Study Team

【PETTARANI Road】(Phase1 Current Road)

The City’s largest highway having 8 wide lanes.

However, cannot turn right besides major

intersections and must make an U-turn, in result,

leading to speed degradation.

【METRO TANUUING BUNGA Road】

The 4 lane road running from the city center to

the gulf. It is surrounded by shopping malls and

housing land developments.

【RAPPOCINI Road】(Phase 2 Option B Current

Road)

Although having 2 lanes, the lanes are narrow

for the vehicles to drive. In addition, only

two-wheeled vehicles are permitted to enter the

city center in the morning.

Traffic Cencus Point

Crossroad

Section

Traffic Census Point

Crossroad

Section

3-12

2) Traffic Counts

To comprehend the traffic volume of the current state, two intersections, one cross-section surface of

Pettarani Road (Phase 1) and one cross-section surface of Veteran Utara State Road located on the western

side of Pettarani Road were chosen for traffic volume survey.

Figure 3.2-2 Implementation of Traffic Volume Survey

*Survey outline: October 9-10, 2014; 16 hours (6 AM-22 PM); Weather: Fair

Source: Study Team

Losari

3-13

The traffic volume of Pettarani Road was approximately 110,000 pcu / day (four wheeled vehicles was app.

70,000 pcu / day) and almost 70 percent were composed by two wheeled vehicles.

Also the traffic volume regarding the intersections of Urip and Alaudin (origin-destination of Phase 1) were

40,000-60,000 pcu / day indicating that the degree of congestion is high.

Figure 3.2-3 Traffic Volume Survey Result

Source: Study Team

Figure below shows the traffic volume by the hour of Pettarani cross-section. 7 AM and 5 PM are the peak

hours for commuting showing approximately 17,500 pcu/ hour of traffic volume.

As for four wheeled vehicles, the traffic volume stays constant throughout the day, while the two wheeled

vehicles fluctuate according to the hour of the day.

【② Urip intersection】

App. 3,600 pcu

App. 100,000 pcu

App. 4,600 pcu

App. 4,700 pcuApp. 3,900 pcu

【③ Alaudin intersection】 (vehicle equivalent)

App. 8,700 pcu

App. 5,000 pcu App. 6,300 pcu

【④ Cross-sectionVeteran Road】

2 wheeled App. 9,900


App. 5,500 pcu (vehicle equivalent)

【① Cross-sectionPettarani Road】



App. 110,000 pcu

(vehicle equivalent)

Passenger Car, 57673, 26%

PetePete, 4158, 2%

Bus, 218, 0%

PickUp, 4009, 2%

LightTruck, 4319, 2%

HeavyTruck, 488, 0%

MotorCycle, 150086, 68%

【① Type of Vehicle at Cross-section surface of Pettarani】

Pete Pete※motor bus (about 8 people)

Pick UP

3-14

Figure 3.2-4 Traffic Volume by the Hour in Pettarani Road

Source: Study Team

(2) Demand Forecast

The project will be based upon; documents of estimated forecast from “the Study on Arterial Road Network

Development Plan for Sulawesi Island (JICA Study in 2008)” and also by using current road analysis and

traffic volume data that have been collected and consolidated to indicate the demand forecast for each

possible planned roads for future network.

1) Setup Case of Estimation

The table shown below is the setup cases for demand forecast based upon road planning for Phase 1 and

Phase 2.

Table 3.2-1 Traffic Volume Estimation

Toll Roads 2023 2028 2035

Full network Option A Option B

Phase 1 ○ ○ ○ ○

Phase 2 Option A - ○ - ○

Phase 2 Option B - - ○ ○

Port Access ○ ○ ○ ○

Port Access Toll Road

Waterfront Toll Road - ○ ○ ○

Middle Ring Road

Outer Ring Road etc. - - - ○

Source: Study Team

0 2000 4000 6000 8000 10000 12000 14000 16000 18000 20000 6:00

7:00

8:00

9:00

10:00 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00 20:00 21:00

Traffic Volume （ Number of vehicles / Hour ）

Passenger Car PetePete Bus PickUp LightTruck HeavyTruck MotorCycle

3-15

Figure 3.2-5 Future Network in 2035

To Takalar To Takalar (GOWA)

To Maros

HasanuddinAirport

Phase2A

Legend1

(Classification - Color) Toll Road National Road Other Road

Losari

Maminasata By‐Pass isoutermost ring road.

Legend2

(planning road - Color) ALL 4 Lanes Toll Road (This Report) Toll Road (Makassar City Planing) Toll Road (South-Sulawesi Planing)

Source: Study Team

1) Setup of Future Origin Destination (OD: Origin and Destination)

Regarding future OD, growth rate of four wheeled vehicles (4.5%/year) and two wheeled vehicles

(3.35%/year) were used under the present OD, based upon the Indonesia socio-economic indicator for

Sulawesi Region growth rate (predicted figures).

In addition, the arising concentrating capacity caused by expansion plan of Hasanuddin International Airport

and harbor planning of Pelindo IV has also been added for the setup.

2) Setup of Toll Rate

Since the planned road is located in extension of the existing toll roads, the estimated toll rates for Phase 1

and 2 have been setup as similar rates in the present toll roads.

3) Estimation Result

The traffic volume for Phase 1 is expected approximately 47 thousands pcu/day at opening in year 2023. At

opening of Phase 2 in year 2028, the comparison shows that the traffic volume in Option B will be slightly

larger than that in Option A. In 2035 when assuming that all planned roads are complete, 70 to 80 thousands

pcu/day equivalent to 4 lane volume, is calculated as demand.

3-16

Figure 3.2-6 Estimation of Future Traffic Volume

Year 2023 2028 2035

Motorway Network

Unit:1000pcu/day

（phase1） 47 6858 (north) 73 (north)

89 (south) 71 (south)

(Pettarani) 72 84 82 90

phase2Option A － 46 － 69

phase2Option B －－ 61 78

Phase2A

Phase2B

Phase2B

Ph

ase

1

Option A Option B

Source: Study Team

3.2.2 Issues and Analysis to Determine Work Scope of the Project

Issues and analysis to determine scope of the projects are written below.

Traffic Demand Forecast

Traffic demand forecast is computed, based on current traffic counts and future

socio-economic growth. Variations of forecast are shown in sensitive analysis of

economic and financial analysis.

Land Acquisition and

Resettlement

Land acquisition and resettlement in Indonesia are one of major reasons to delay

the project. Design of toll road is made in view of the least land acquisition, so

that risks of delay may be minimized.

Road Design

Road design is carried out based on design standard in Indonesia and suitable

road design is made by capturing site conditions and situations. If necessary,

standard in Japan may be referred. Road structure, type of

ramp/interchange/junction is adopted in view of safety, cost effective,

constructability and those experienced in Indonesia.

ITS/ETC

In the field of ITS/ETC, Japanese technology is most effective and advanced.

Current toll road operator intends to introduce ITS/ETC, and similar ITS/ETC

system will be incorporated into the project, so that road users will enjoy new

technology throughout toll roads in Makassar.

Operation and Maintenance

of Toll Road

Current practice for operation and maintenance in existing toll road is examined

and more effective and economical system is planned by utilized facilities and

staff commonly. Full cooperation with current toll road operator is essential and

necessary.

PPP Proposal

Japan expressway company has to participate in PPP scheme and most essential

scheme is that Phase 1 is proposed as extension of current toll road, so that tender

for selection of new operator could be avoided.

In Phase 2, cost of land acquisition and resettlement as well as VGF is requested

to state government burden, so that tender for selection of SPC is inevitable.

Competitive proposal has to be prepared.

3-17

3.2.3 Road Plan and Road Structure

The location for the route planned is shown in Figure 3.2-7.

Figure 3.2-7 Route Map of the Project

Source: Study Team

The planned routes are that Phase 1 uses the existing Pettarani Road in the urban area, and Phase 2 Option A

starts from the end of Phase 1 to the western waterfront, and Phase 2 Option B starts from the halfway of Phase

1, using the existing road to the waterfront, too.

The survey results of the present local condition are as follows.

(1) Conditions of Roads and Surrounding Area

1) Phase 1

Phase 1 is planned to use the existing Pettarani Road, and width of the existing road was surveyed. The result of

the survey and current conditions are shown in Figure 3.2-8 and Figure 3.2-9.

3-18

Figure 3.2-8 Width of Pettarani Road (Current Status)

Source: Study Team

Figure 3.2-9 Photos of Pettarani Road (Current Status)

Source: Study Team

The width of Pettarani Road is about 41 to 47 m. It is presumed to be difficult for large scale land acquisition

since the site has already been urbanized. Therefore the plan will be conducted without large scale land

acquisition.

The number of lanes for Phase 1 will be 4 lanes (toll roads) and 6 to 8 lanes (existing national road) from traffic

volume estimation result. The minimum width will be approximately 40m, and therefore the existing road will

be within the reach for the plan. However, the major intersections need crossovers, and hence partial viaduct be

required at least.

2) Phase 2

Two options have been reviewed for Phase 2 shown in Figure 3.2-7.

【Option A】

Width of existing road starting from the end of Phase 1 to the western waterfront is not wide enough for use.

Therefore the location is planned by using the Makassar City Plan. The current status is shown in Figure 3.2-10.

41~47m

3-19

Figure 3.2-10 Current Status of the Surrounding Areas of Option A of Phase 2

(1) Roads within the Residential Area -1 (2) Roads within the Residential Area -2

(3) Jeneberang River (right bank) (4) Jeneberang River

Source: Study Team

The sections passing the urban areas do not have enough width for the planned toll road and also residential

buildings are dense. Therefore large scale land acquisition cannot be avoided.

There are residential buildings along with the Jeneberang River, but they are not dense. However, there is

ongoing large scale development near the end point that needs to be taken care.

Standard road cross section for Option A is shown in Figure 3.2-11.

Figure 3.2-11 Cross Section of Toll Road for Phase 2 Option A

Source: Study Team

Embankment

Approx.40m

Culvert Box

3-20

【Option B】

The toll road starting from the halfway of Phase 1 to the western waterfront for Phase 2 Option B is planned

along Rappochini Road and Lanrodg Pasewang Road, based on Makassar City Planning. The current status of

Rappochini Road is shown in Figure 3.2-12 and Figure 3.2-13.

Figure 3.2-12 Width of Rappochini Road (Current Status)

Source: Study Team

Figure 3.2-13 Photos of Rappochini Road (Current Status)

Source: Study Team

The current status for the road width is 7 to 8 m and approximately 12m including the ditches both sides.

Therefore large scale land acquisition, traffic restrictions and maintenance of living environment for public in

the vicinity must be considered when planning and constructing toll road.

(2) Road Structure

1) Phase 1

a) At-Grade Structure

The plan follows the Indonesia Standard Specification (Standard Specifications for Geometric Design of

Urban Roads published in March 1992) and the Road Construction Ordinance in Japan is also used for

reference while planning.

The minimum of 20m is in need for the center median, roadway, and road shoulder for the toll roads and the

minimum of 14m for 3 lanes per one direction is in need for Pettarani Road. As a result, minimum of 48m will

be necessary, which is difficult considering present site situation, and following the Indonesia Standard

Local area Local area

Approx.25m

3-21

Specification.

By using Japan Road Construction Ordinance for roads in urban areas, 43m width is possible for planning. The

standard cross section is shown below.

Figure 3.2-14 Standard Cross Section (1) At-Grade Structure in Phase 1

Source: Study Team

b) Viaduct Structure

In case for viaduct structure, the toll road portion is able to plan without considering the width of the existing

road. Therefore the plan is satisfied with the Indonesia Standard Specification in 1992 for road width.

Also, Pettarani Road is able to use the space under the toll road viaduct, and therefore the plan is again

satisfactory for the Indonesia Standard Specification in 1992 for width.

Figure 3.2-15 Standard Cross Section (2) Viaduct Structure in Phase 1

Source: Study Team

2) Phase 2 Option A

a) Embankment Structure

Phase 2 Option A is located in residential area and alongside of the river bank. Therefore the embankment

structure is used for economic reason. To possess the similar traffic function as current situation for the toll road

Pettarani Road Toll Road Pettarani Road

Canal Canal

12.5m 18.0m 12.5m

43.0m

Pettarani Road Pettarani Road

Canal Canal

Toll Road

18.0m 18.0m

43.0m

7.0m

20.0m

3-22

sections crossing the existing roads, box culverts are installed to avoid community severance.

In addition, countermeasures for soft grounds will be in need in certain sections since it is in river bank.

From the observations on construction projects during the site visits in Makassar, embankment materials

would be obtainable within reasonable distances and it is recommended that quality and quantity of

embankment material shall be reviewed in next study.

Figure 3.2-16 Standard Cross Section (3) Embankment Structure in Option A of Phase 2

Source: Study Team

Figure 3.2-17 Outline of Countermeasures for Soft Grounds

Source: the Study on Arterial Road Network Development Plan for Sulawesi Island (JICA 2008)

b) Viaduct Structure

Viaduct structure is chosen for sections where the road crosses the canal or the existing road. The existing roads

assure the same number of lanes as the current situation.

Approx.40m

Embankment Slope ：1 1.8

Box culvert

20.0


Height Approx.5m

Concrete slab

Crushed stone base course

PC pile

3-23

Figure 3.2-18 Standard Cross Section (4) Viaduct Structure in Option A of Phase 2

Source: Study Team

3) Phase 2 Option B

a) Viaduct Structure

The road for Phase 2 Option B passes along Rappochini Road and Lanrodg Pasewang Road running through

city center of Makassar. To ensure minimum land acquisition, the whole road is planned to be elevated. The

current status for Rappochini Road are one lane and two wheeled vehicle (four wheeled vehicles are restricted).

Existing road is planned to improve as the same time as the toll road construction.

Figure 3.2-19 Standard Cross Section (5) Viaduct Structure in Option B of Phase 2

Source: Study Team

25.0m

20.0m

10.0m 10.0m

Side

walk

Side walk

25.0m

20.0m

10.0m 10.0m

Side walk

Side walk

3-24

(3) Location Plan for Interchanges, Junction and Toll Gates

The location plans for interchanges, junction and toll gates (hereinafter collectively called IC or JCT) are as

follows.

1) Phase 1 and Phase 2 Option A

Interchange from the airport direction to Urip Road (Urip IC1) is located when Phase 1 is in service. For

collecting toll, the toll gates are located near starting point of the toll road. Interchange near the ending point of

the Phase 1 (Alaudin Road) is located (Alaudin IC1).

Since the distance is short for Phase 1, traffic flow from Urip Road is minimal, and therefore the interchange

from Urip Road to the direction of end point (Urip IC2) is installed during Phase 2 construction.

Interchange from Urip Road to the direction of end point (Urip IC2 and toll gate), interchange from Alaudin

Road to the waterfront direction (Alaudin IC) and interchange & toll gate at the end point of Phase 2 is installed

during Phase 2 Option A construction.

Figure 3.2-20 shows below as describing the above.

Figure 3.2-20 Location Plan for IC and JCT (Phase 1 and Phase 2 Option A)

Phases Current Status Phase 1 Phase 2 Option A

Location

Plan for

IC /

Toll Gate

Legend

Toll gates

Source: Study Team

To Airport

Alaudin IC2

Pet

tara

ni R

d.

Urip Rd.

Alaudin Rd.

Pha

se I

sect

ion

Phase 2 section Plan A

Wat

erfr

ont

Urip IC2 Toll gate

Terminal IC Toll gate

Urip Rd.

Alaudin Rd.

Pha

se I

sect

ion

To Airport

Wat

erfr

ont

Pet

tara

ni R

d.

Urip IC1

Alaudin IC1

Toll gate

Wat

erfr

ont

Urip Rd.

Alaudin Rd.

To Airport

Pet

tara

ni R

d.

3-25

2) Phase 1 and Phase 2 Option B

The planning for IC and JCT for Phase 1 is as same as Option A above.

When Phase 2 Option B is in service, IC (Urip IC2 and toll gate) from Urip Road using Phase 1 is installed,

along with the IC and JCT installed during Phase 1.

The toll colleting in Phase 2 is done near the ending point (terminal IC and toll gate). Figure 3.2-21 shows

below, as describing the above.

Figure 3.2-21 Location Plan for IC and JCT (Phase 1 and Phase 2 Option B)

Phases Current Status Phase 1 Phase 2 Option B

Location

Plan for

IC /

Toll gates

Legend

Toll

gates

Source: Study Team

(4) Processing Traffic of Urip Intersection

When the road is planned with at-grade

structure for Phase 1, the starting point at

Urip Intersection has traffic process

difficulties such as making right or left turns

at Pettarani Road and Urip Road.

Figure 3.2-22 Location of Urip Intersection

Source: Study Team

Wat

erfr

ont

Urip Rd

Alaudin Rd.

To Airport

Pet

tara

ni R

d.

Urip IC1

Alaudin IC1

Toll gate

To Airport

Pet

tara

ni R

d.

Urip Rd

Alaudin Rd.

Pha

se I

sect

ion

Wat

erfr

ont

To Airport

Pet

tara

ni R

d.

Urip Rd

Alaudin Rd.

Pha

se I

sect

ion

Phase 2 section Plan B

Wat

erfr

ont

Terminal IC Toll gate

Rappochini JCT

Urip IC2 Toll gate

Urip Intersection

3-26

1) Review of Traffic Processing at Urip Intersection

The Urip Intersection is scheduled to construct underpass and loop lamp in addition to the existing grade

separation from the information of the Sulawesi PU.

Therefore considering the graded separation plan above, and review has been made for traffic processing by fly

over intersection.

Table 3.2-2 Method of Traffic Processing of Urip Intersection

Item Current Status Under grade, with Loop ramp

Toll Road (At-Grade Type)

Ground

Plan

Editing on Google Earth Editing on Sulawesi PU Plan

Outline

Grading Urip Rd.in throughway by elevated bridge.

The right-turn traffic of Pettarani⇒East Urip (in red)

and West Urip⇒Pettarani (in blue)

will be processed by traffic lights.

Prohibiting other right-turns.

Grading Urip Rd.in throughway by elevated bridge.

Under grading of Pettarani⇒East Urip (in red) and

loop ramp for West Urip⇒Pettarani (in blue).

Similar service as current status.

Issues

- *Highways cannot be made until the under grade and

loop ramp are completed.

*General road needs to be steric structure when

cancelling the right-turn prohibition.

Source: Study Team

If the toll road is planned with viaduct structure for Phase 1, there is no traffic processing problem since new

toll road is above the existing road.

(5) Comparison in View of Road Plan and Structure

From the basic design and review in the above, comparisons in Phase 1 and Phase 2 are made and shows

below.

Urip Road

3-27

Table 3.2-3 Comparison of Phase 1

Items

Phase 1

(At-Grade + Viaduct of major intersection)

Structure Viaduct Structure

Standard

Cross Section

Applied

Standards

toll road Difficult (Indonesia Standard) Satisfactory (Indonesia Standard)

existing road Difficult (Indonesia Standard) Satisfactory (Indonesia Standard)

Traffic

capability

toll road 4 lanes 4 lanes

existing road 6 lanes 8 lanes

Environmental

issue

living

environment High impact of aerial pollution and sound Less impact since the distance is kept

landscape No feeling of pressure and preferable Has planting zone and not many problems.

planting zone No space Wider than current status (2m)

sidewalk Minimum width Wider than current status (3m)

Construction

issue

construction

period Faster than the elevated plan Takes more time than At-Grade plan

construction

effect

High impact due to wide range of traffic

regulation.

Few traffic regulations during structure

construction

Economic

issue

construction Lower than the elevated plan Expensive

maintenance Only general maintenance is needed Superstructures in need for inspection and

repair

Comprehensive evaluation

not satisfy the Indonesia Standard and has

problems in traffic capacity and

environmental points.

satisfy the Indonesia Standard and

remarkable in general.

Poor Good

Source: Study Team

From the comparison above, viaduct structure in whole stretch has to be selected for Phase 1 in view of road

plan.

3-28

Table 3.2-4 Comparison of Phase 2

Items Phase 2

Option A Option B

Location and

Standard

Cross Section

Typical cross section of Option A Typical cross section of Option B

Length 6.2km 3.8km

Standard

Cross Section

Embankment Type 5.5km

Viaduct Type 0.7km Viaduct Type 3.8km

Environmental

issue

living

environment

Less impact since the route runs mostly

along the river with few dwellings

High impact since it will pass through city

center.

landscape No feeling of pressure and preferable feeling of pressure since the Viaduct Type is

in the city

planting zone Planting can be done at the embankment No space

sidewalk - Minimum width

Construction

issue

No traffic regulations. Therefore less limits

in time, or method

Due to constitution in the urban area, major

traffic regulations will be needed. Also

increase of limit in time and method.

Economic

issue

construction Lower than Option B More expensive that Option A

maintenance Only general maintenance is needed Superstructures in need for inspection and

repair.

Comprehensive evaluation

Long in length, but remarkable in

environment and construction.

Inferior in construction and environment.

Good Fair

Source: Study Team

From the comparison above, it is judged that Option A is superior to Option B for Phase 2 in view of road

plan.

3-29

3.2.4 Introduction of ITS

Along with the rapid economic growth of Southeast Asian countries, heavy and chronic traffic congestion has

been a problem in urban areas. Nevertheless, sufficient traffic management has not been provided due to the

lack of road network capacity and traffic observation facilities. In Indonesia, the ITS system has been

introduced onto the toll road network from the aspect of customer services improvement. Toll road operator

(PT Margautama Nusantara: MUN) in Makassar has concluded agreements with the city of Makassar on the

purpose of comprehensive traffic information provision on the toll road and urban road network.

A hearing survey against MUN revealed that MUN is going to start the traffic information service at the

entrances of the toll road located on the airport and the harbour, by installing optical cables and VMSs. The

service will be started in 2015. In addition, more CCTV cameras will be installed on both the toll road and local

road networks by MUN and the city of Makassar. By utilising these facilities, observed traffic congestion

information with graphic and forecasted journey times will be provided on information boards. Furthermore, it

was also clarified that MUN is considering for installation of ETC system on the currently operated road

network.

Figure 3.2-23 Plan for Introduction of ITS System

Cambaya Kaluku Bodoa

Ramp Tallo Barat

Ramp Tallo Timur

Tamalanrea

Parangloe

Ramp Bira Barat

Ramp Bira Timur

Biringkanaya

FO cable （additional）‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ FO Cable Facility

Sign board ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐End‐user service facility

Web camera ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐End‐user service facility

FO cable ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ FO Cable Facility

Station (Carrier terminal equipment) ‐‐‐‐‐‐FO Cable Facility

Administration building ‐‐‐‐‐‐‐‐‐‐‐‐‐‐End‐user service facility(Renovation & System installment)

Toll road

Maros

Nusantara

Petarani

1

2

3

Source: MUN

“The Survey of Intelligent Transport System (ITS) introduction into Makassar” supported by the Ministry of

Economy, Trade and Industry (METI) of Japan is currently in practice. The main objective of the project is to

realise energy conservative and low GHG society in the road traffic management field, and to create the

sustainable ITS business scheme, by introduction of low-cost ITS system into Indonesia.

The project policy is to mitigate the chronic traffic congestion on the local road network by encouraging usage

of the toll road, to improve energy, and to reduce traffic accidents in the area by effective traffic information

3-30

provision. The traffic information provision will be made by utilising traffic data observed by both fixed traffic

detectors and GPS probe sensors.

As examples of the sustainable ITS business scheme above, (1) sales of observed traffic data and (2)

congestion/journey time forecast and information provision can be suggested. These services may be applied to

the traffic control system of logistics, buses and taxies operators.

Figure 3.2-24 Supplying Information of ITS

Source: Study on ITS in Makassar

3-31

3.2.5 Introduction of ETC

(1) Overview of ETC System

ETC (Electronic Toll Collection System) enables wireless communication between the in-vehicle device and

the toll gate antenna and therefore, cars are able to drive through toll gates without stopping (at speeds

approximately 20km/h). In the 10 years since research began on ETC in 1993, ETC has evolved into a system

that is now available on almost all toll roads in Japan. Moreover, the increase in ETC use at toll booths on main

roads has contributed to a significant reduction in the number and location of traffic jams.

Figure 3.2-25 Mechanism of ETC (Japan)

Source: ITS Technology Enhancement Association (ITS-TEA)

The ETC system can be used by inserting the ETC card into the in-vehicle device. Tolls are payable by credit

card. Since toll fares from toll roads are paid using functions offered by credit companies, the issuing procedures

for the card are carried out through credit card companies.

(2) Overview of ETC System in Indonesia

In Indonesia, ETC system has been introduced in toll gates on the expressways, which Jasa Marga operates, in

the suburb of Jakarta City. The ETC system can be used by inserting the ETC card into the in-vehicle device in

the same way as the ETC system in Japan.

With regard to the difference in ETC systems between Indonesia and Japan, Indonesia adapts advanced

payment, which needs to deposit money into ETC card. Noteworthy is that the bar at the toll gate does not open

when the amount of balance in the card is less than the toll fare. Besides, the ETC card is issued by Mandiri

Bank and sold with the name “e-toll card”. It is available to use this card for the payment at the convenience

stores “Indomaret” or gas station.

3-32

Figure 3.2-26 ETC Card “e-toll card” (left) and “e-toll card” and In-Vehicle Device (right)

Source: Mandiri Bank HP Source: Study Team

On the other hand, this ETC system on a lane cannot discriminate the types of vehicles which drive into the lane.

As a result, this ETC system can be applied to only passenger automobiles in group I, such as sedan, which

make up majority of percent of the total number of road users.

Furthermore, metallic gate, which height is less than 2.1m, is installed at the entrance gate of ETC lane and the

lane with automatic toll collection, and therefore, the gate prevents the vehicles in group II from driving into.

Figure 3.2-27 Toll Booth with 2.1m Gate in Jakarta (left)

and Toll Payment by “e-toll card” at Automatic Toll Collection Machine (right)

Source: Study Team

Vehicle classification of toll road and toll rates is shown below.

3-33

Figure 3.2-28 Vehicle Classification of Toll Road in Indonesia (left) and Toll Rate in Plate (right)

class Type of vehicle

Group I Sedan, Jeep, Pick up

/small Truck, Bus

Group II Truck with 2 axis

Group III Truck with 3 axis

Group IV Truck with 4 axis

Group V Truck with 5 axis

Source: BPJT (Badan Pengatur Jalan Tol)

http://bpjt.pu.go.id/konten/en/golongan-kendaraan

Source: Study Team

(3) Manner and Method of Payment in Makassar

On the expressways in Makassar, it is available to pay the toll by pre-paid IC card “Flazz” issued from the bank

and “Flazz” user can get 20% off. Moreover, the wireless system which is introduced in the suburb of Jakarta, is

not provided in Makassar.

Figure 3.2-29 IC-Card “Flazz” for Toll Payment in Makassar (left)

and Toll Payment Card-Reader at Collection Office (right)

Source: Study Team

Table 3.2-5 Manner and Method of Payment for Toll Road in Indonesia

item in the suburb of Jakarta city Makassar

Payment Method

Cash e-toll card (IC card)【issued by Mandiri Bank】

Cash Flazz (IC card)【issued by BCA Bank】

Payment Manner

Toll collector (Cash, IC-card)【for all types of vehicle】 Automatic toll collection machine (IC card) 【group II】 Wireless communication (in-vehicle device +IC card)【group II】

Toll collector (Cash, IC-card) 【for all types of vehicle】

Source: Study Team

3-34

(4) Discussion for Introduction of ETC Systems on Existing and Extended Toll Roads in Makassar

At present, the regulation against the large-size vehicle has been implemented on the Pettarani Road. However,

it is expected that the regulation will be lifted up, when toll road is extended and as a result, user of large-size

vehicle will switch over to drive toll road.

It is only available at this moment for vehicle in the “Group I” to drive through ETC system on the toll roads in

Indonesia. Considering that the number of vehicles in “Group II” will increase in the future, it is required to

introduce automatic vehicle identification equipment which discriminate the types of vehicles.

In addition, difference in the classification way for the types of vehicle makes it difficult to apply Japanese

equipment directly to the road in Indonesia. Therefore, development for the new system is required.

3.2.6 Operation and Maintenance of the Expressway

In order to maintain operation and maintenance (O&M) level of the target toll road section equivalent to the

existing adjacent sections (BMN and JTSE), a study has been made to clarify O&M level of the BMN and the

JTSE toll-roads. Due to the fact that 99% shares of the special purpose company (SPC) of the JTSE are held

by the SPC of the BMN, it can be said that the two toll roads above are comprehensively operated and

maintained.

The implementation structures of 1) toll collection, 2) traffic management and 3) inspection and maintenance

have been studied from the perspectives of human resources, facilities and vehicles. The study has been made

through interviews to the representative offices relevant to the three perspectives above.

Table 3.2-6 Visited Offices for Interview Surveys

Fields Visited Offices Remarks

Toll Collection Chambaya Toll Gate Office

Traffic Management The Maintenance Office Located in the same building with the

Chambaya toll-gate office

Inspection and Maintenance Central Komunikasi

Source: Study Team

(1) Summary of the BMN and the JTSE

Prior to the specific O&M fields, summary of the existing toll roads is provided as follows.

BMN Toll Road (Reformasi Toll Road)

Toll Road Name Seokarno Hatta Port – Pettarani Toll Road *Commonly called “BMN Toll Road” or “Reformasi Toll Road”

SPC PT BOSOWA MARGA NUSANTARA (BMN) *Established in 1993 Opened to traffic 1998 Concession period 30yrs. (until 12th April, 2028) Route length 6.0km Mandatory speed limit Maximum: 80kph, Minimum： 60kph

Toll fare 3,000 Rp. (flat fare) *Discounted for Standard Vehicles / Short Distance Usage *2,500 Rp. until 12th October, 2013.

3-35

Num. of toll gates 4 *Two of them installed on the Airport Road Num. of carriageways 2 for each direction AADT 54,000 veh/day (2013)

Constructor Jasa Marga (a government authority at the time) *Taken over by the BMN after completion

Director H. Anwar Toha Num. of staffs 63 (as of 31st December, 2013)

JTSE Toll Road (Airport Toll Road)

Toll Road Tallo - Hasanuddin Airport Toll Road *Commonly called “JTSE Toll Road”, “JTSE” or “Airport Toll Road”

SPC PT JALAN TOL SEKSI EMPAT (JTSE) *Established in 2006 Opened to traffic 2008 Concession period 45yrs. (until 30th September, 2041) Route length 11.6km Mandatory speed limit Maximum: 80kph, Minimum: 60kph Toll fare 7,500 Rp. (flat fare)

*Discounted for Standard Vehicles / Short Distance Usage *2,500 Rp. until 12th May, 2013

Num. of toll gates 4 Num. of carriageways 2 for each direction *1 for each on the Tallo Bridge AADT 36,000 veh/day (2013) Constructor Jasa Marga (privatised in 2004)

*Taken over by the BMN after completion Director H. Anwar Toha Num. of staffs 15 (as of 31st December, 2011)

Figure 3.2-30 Makassar Toll Road Network under Operation

③セントラル・コミュニカシ（交通管制、管理隊基地）

①チャンバヤ料金所 ②メンテナンス事務所

凡例）：料金所（BMN 料金）

：料金所（JTSE 料金）：交通管理等施設

3. Central Komunikasi(Traffic Control Centre, Patrol Parties Homebase)

1. Chambaya Toll-Gate2. Maintenance Office

Legend Toll-Gate (BMN)

Toll-Gate (JTSE)

Traffic Management Facilities, etc.

Source: BMN (SPC)

3-36

(2) Toll Collection

1) Organizational Structure

Each toll collection team

consists of accountants, team

leaders and toll collection staffs

(refer to Figure 3.2-31). The

accountant is only allocated to

the Chambaya Toll Gate office.

(Each team leader takes over

collected tolls from team staffs.)

Toll collection work itself is

outsourced to the manpower

dispatching agency called

“Corporasi”. The Corporasi is a

kind of trade union whose

members also include the toll

collection team staffs. The number of members from the BMN and JTSE is approximately 120.

The work shift consists of three shifts (8 hrs/shift).

Four team leaders allocated to the teams (1 person/shift × 3 shifts + day-off for 1 person).

The number of toll collectors for each toll gate: [Num. of gates] × [[3 shifts] + 1]

The number of accountants: four ([3 shifts] + 1). All of them allocated to the Chambaya office.

Photos of the operation site are shown below:

Chambaya Toll Gate Toll Gate Office

Toll Gate Booth

Figure 3.2-31 Structure of Each Toll Collection Team

Accountant

【Toll Collection Team】

Collected Toll

Collected TollSupervision

Team Leader

Support

Toll Collection Staff Toll Collection Staff

Toll Collection StaffToll Collection Staff

Toll Collection Staff

*An extra staff is assigned in addition to thenumber of opened gates.

Source: Study Team

3-37

Supervision by a team leader

Surveillance Monitor

A safe to keep collected tolls Thermal papers for receipts

A safe in the accountant’s office

2) Vehicle Classification and Toll Rates

The Vehicle classification and each toll rate are given as follows;

Table 3.2-7 Vehicle Classification and Toll Rates

(unit: IDR)

Route I: Standard

vehicle

Ⅱ: Small freight

vehicle (2-axle),

Microbus

Ⅲ: Small freight

vehicle (3-axle)

Ⅳ: Midsize freight

vehicle (4-axle)

Ⅴ: Large freight vehicle

(Trailer, Container)

BMN 3,000 (2,000) 4,000 (3,000) 5,000 (3,000) 6,500 (3,500) 7,500 (4,000)

JTSE 7,500 (4,000) 11,000 (5,500) 15,000 (7,500) 18,000 (9,500) 22,000 (11,500)

*figures in bracket are for short distance

Source: Study Team

3) Facilities

Designed toll gate capacity per hour: 950 vehs/carriageway (3.8 seconds/veh on average)

The number of toll gates and booths are as follows;

3-38

Fig

ure

3.2

-32

Tol

l Rat

e St

ruct

ure

of

Cu

rren

tly

Op

erat

ed T

oll R

oad

Net

wor

k

38,9

80 v

ehs/

day

(201

0)5.

95 k

m

【Fl

at fa

re: O

PEN】

Rp3,

000

21,4

11 v

ehs/

day

(201

0)11

.57

km

【Fl

at fa

re: O

PEN】

Rp7,

500

【Fl

at fa

re: O

PEN】

Rp7,

500

【Fl

at fa

re: O

PEN】

Rp3,

000

【Fl

at fa

re: O

PEN】

Rp3,

000

Thro

ugh T

raffi

c

Inte

rcha

nge

Sou

rce:

Stu

dy T

eam

3-39

Table 3.2-8 Toll Gates on Currently Operated Toll Road Network

Sta. Section/Direction Name Num. of Gates Fares for Standard Vehicles

1+700 Section 1 / Outbound Chambaya 4 (Main Track) BMN / 3,000 IDR

3+800 Section 2 / Inbound Kalulu Bodoa 4 (Main Track) BMN / 3,000 IDR

0+100 Section 4 / Outbound Tallo Barat 2 (Interchange) BMN / 2,000 IDR

0+950 Section 4 / Inbound Tallo Timur 2 (Interchange) BMN / 3,000 IDR

2+898 Section 4 / Outbound Tamalanrea 4 (Main Track) JTSE / 7,500 IDR

3+700 Section 4 / Inbound Parangole 3 (Main Track)

2 (Interchange)

BMN / 3,000 IDR

JTSE / 7,000 IDR

5+700 Section 4 / Inbound Bira Barat 2 (Interchange) JTSE / 4,000 IDR

6+995 Section 4 / Outbound Bira Timur 2 (Interchange) JTSE / 4,000 IDR

9+850 Section 4 / Inbound Biringkanaya 2 (Main Track)

2 (Interchange)

JTSE / 7,500 IDR

Note: As for start point (zero point) of Sta., that of BMN is located an end which is close to the Makassar

Port, and that of JTSE is located near the closing point of BMN and JTSE

Source: Study Team

(3) Traffic Management

The traffic management department has four individual units; the Traffic Control Unit, the Patrol Unit, the

Emergency Rescue Unit and the Emergency Medical Unit. Each service has been outsourced except for the

Traffic Control service which is operated by the SPC itself. The SPC owns the following vehicles; three

patrol cars, two breakdown trucks, one ambulance car, one rescue car and two police patrol cars (lease). The

traffic control center, which is called “Central Komunikasi”, is located on the east side of the Tallo Bridge,

inbound lane of the Airport Road (JTSE) (refer to Figure 3.2-30).

1) Traffic Control Center

Falling objects, disabled vehicles, traffic accidents and traffic disturbance are reported by a patrol unit or

any other third person to the traffic control centre. The control centre then orders relevant authorities to

deal with the incidents.

The number of traffic control officers is four. 1 person×3 shifts (8 hrs/shift) + 1 person (day off).

Communication devices: land lines, wireless lines and announcement in the office.

2) Patrol

Daily patrol, and respond to incidents such as falling objects, disabled vehicles, traffic accidents traffic

disturbance and so forth.

The number of traffic patrollers is 24.

2 persons/patrol unit × 3 units × 3 shifts (8 hrs/shift) + 6 persons (day off).

3-40

Photos of traffic control and patrol are shown below.

Traffic control officer’s desktop

Communication devices on the desk

Patrol car and traffic officer

Breakdown trucks (Right: for HGVs)

3) Emergency Rescue Unit

Emergency rescue works (e.g. In case that drivers / passengers are trapped in the vehicle due to a traffic

accident, the rescue unit may break the vehicle to rescue the driver/passengers).

The number of rescue workers: eight. 2 persons × 3 shifts (8 hrs/shift) + 2 persons (day off).

Land Line Wireless LineAnnouncement

3-41

4) Emergency Medical Unit

Ambulance transport in case that a driver/passengers are injured due to a traffic accident.

The number of medical workers: eight 2 persons × 3 shifts (8 hrs/shift) + 2 persons (day off).

Photos for rescue and medical units are shown below

Left: Rescue car Right: Ambulance car

Interior of the rescue car and a rescue worker

Interior of the ambulance car and an ambulance worker

(4) Inspection and Maintenance

Eight officers from the SPC are assigned to the Inspection and Maintenance unit. All of them are full-time

workers, and their working hours are from 8:00AM to 5:00PM. They are in charge of daily maintenance

patrols as well as development of the maintenance plan and outsourcing management.

The routine maintenance such as cleaning and roadside plantings is outsourced as well as daily

inspection and maintenance works.

3-42

Operation and maintenance of electrical systems are also outsourced to a different company. Eight staffs

are in charge of the operation and maintenance on 24-hour schedules.

2 persons × 3 shifts (8 hrs/shift) + 2 persons (day off).

The assessment criteria for structural inspection are the one designed and utilized by Jasa Marga, the

major expressway operating company.

Photos for inspection and maintenance are shown below.

Office of the SPC staffs who are in charge of structural inspection and maintenance

Watering the median strip planting Roadside cleaning

(5) Operation and Maintenance of Phase 1 and Phase 2

To ensure the efficient O&M and convenience for the road users, the followings should be taken into account

for the O&M of the extended toll road section (Phase 1 and Phase 2);

Table 3.2-9 Operation and Maintenance of New Toll Roads

Fields Points of Concern

Toll Collection Same tariff structure and toll collecting method with the currently operated

adjacent toll road sections.

Traffic Management Comprehensive operation of the traffic control center and the patrol units

Inspection and Maintenance Unified inspection criteria, Facilities/Components sharing

Source: Study Team

3-43

3.2.7 Framework of PPP Infrastructure Projects

The Indonesian Government has improved the PPP related laws in order to increase attractiveness and

competitiveness of the PPP scheme. The relevant law improvement is provided as follows;

Revision of the 13/2010, 56/2011 and 66/2013 based on the Presidential Decree 67/2005, established the

framework of PPP related authorities. These revisions made the procedure of governmental support for

unsolicited project proposals more concise.

The Finance Ministry Ordinance 260/2010 defines the procedure of governmental compensation. The

Finance Ministry Ordinance 223/2012 describes the Viability Gap Fund (VGF).

The Government Decree 27/2012 related to environmental regulation was established by revising the

conventional Governmental Decree related to environmental impact assessment.

The Bappenas’s Decree 3/2012 established the operation system of PPP relevant authorities.

Figure 3.2-33 PPP Related Laws

Presidential Regulation 67/2005on

The cooperation between the Government and Business Entity in infrastructure provision

Presidential Regulation 78/2010Government Guarantee for Cooperation Project

between Government and Business Entity provided by infrastructure guarantor company

MoF Regulation 260/2010Implementation Guidelines for Guarantee in infrastructure project under PPP model

The minister of national development Planning /Head of National Planning Agency Regulation

4/2010General Guidelines of Implementation of Cooperation Between the Government and

Business Entities in Provision of Infrastructure


Amendment of Presidential Regulation 67/2005


Second Amendment of Presidential Regulation 67/2005


Third Amendment of Presidential Regulation 67/2005

The minister of national development Planning /Head of National Planning Agency Regulation

3/2012General Guidelines of Implementation of Cooperation Between the Government and

Business Entities in Provision of infrastructure

MoF Regulation 223/2010The Provision of Feasibility Support over Partial Construction Fee on the Cooperation Project

between the Government and Business Entity in Providing infrastructure (VGF)

Source: Study Team

(1) Relevant Laws and Regulations

1) Presidential Decree

PPP related legislative improvements were fully launched in 2005, and there exists two kinds of PPP related

laws; (1) Laws related to the overall of PPP projects, and (2) Laws dedicated to Expressway PPP projects. The

following four Presidential Decrees are the basis of PPP projects promotion.

3-44

Table 3.2-10 Presidential Decrees Related to PPP

Contents

Republic of Indonesia Presidential Decree 67/2005:

Cooperation between public and private sectors for infrastructure development


Amendment of the Presidential Decree 67/2005 above.





Source: Study Team

These Presidential Decrees define the followings;

Fundamental principles and policies for PPP business promotion in Indonesia

Basic procedure for formation and implementation of PPP projects

Conditions to obtain the governmental subsidy for PPP project implementation

2) BAPPENAS’s Decrees

In addition to the Presidential Decrees above, the following BAPPENAS’s Decrees are provided for PPP

project implementation.

Table 3.2-11 BAPPENAS Decrees for PPP

Contents

The Decree of Secretary of National Planning and Development 4/2010:

The general guideline for cooperative implementation of infrastructure development projects between

public and private sectors

The Decree of Secretary of National Planning and Development 3/2012:

The operation of PPP relevant authorities

Source: Study Team

3) Laws Related to PPP Toll Road Projects

Laws related to PPP toll road projects are shown below.

Table 3.2-12 Laws Related to PPP Toll Road Projects

Contents

No. 17/2003 concerning State Finances

No. 38/2004 concerning Roads

No. 15/2005 concerning Toll-roads

Source: Study Team

The laws provided in Table 3.2-12 above define the procedure and conditions to execute PPP toll road projects

based upon investment from the private sector. Hence, it could be argued that a foundational framework to

promote PPP toll road projects have already been established in Indonesia.

3-45

4) Toll Road PPP Project Schemes

The Toll Road PPP Guideline/Manual was established by the Ministry of Public Works with support of JICA.

According to the guideline, four kinds of toll road PPP business structures are defined in Indonesia as follows;

Table 3.2-13 PPP Toll Road Business Structures in Indonesia

TRE: Toll-Road Enterprise

Construction Finance O&M Revenue of SPC

1. BOT TRE TRE TRE TRE

2. SBOT TRE

(Private Sector)

TRE

(Private Sector) TRE Toll Tariff

3. O&M concession

(Lease)

Contractors other

than TRE Government TRE Toll Tariff

4. O&M

Outsourcing

Contractors other

than TRE Government TRE

Payment by

Government

Source： Toll Road PPP Guidelines Manual (JICA/PU) 2012

SBOT shown in the table above stands for “Supported BOT” or “Subsidised BOT”, which means governmental

subsidy for unprofitable projects. Due to the governmental subsidy, profitability of private projects can be

expected to increase, and as a result, the feasibility of the project can be increased.

Land acquisition or a part of construction work can be funded by the government. More specifically, the private

sector can be given the right of road operation and maintenance even if the road construction is funded by the

government, if the SBOT scheme is applied.

Figure 3.2-34 SBOT Scheme

Source: Study Team

Government Support

(Construction as a Separate Project,

Public Fund)

PPP-Operator Construction

(Private Fund)

O & M

Total Length of the Toll Road Project

Unified operation by SPC

Construction

3-46

3.3 Outline of the Project Plan

3.3.1 Basic Policy on Project Scope and Implementation

The basic policy to determine the project scope is as follows.

The traffic demand forecast done in JICA Study in 2008 has been referred and adjusted with the actual

traffic counts done in the study of year 2014 and then traffic demand forecast for this study has been

calculated in order to estimate suitable traffic demand forecast.

Planning of route, road structure and type of ramp & interchange has been made, by referring design

standard in Indonesia as well as considering convenience of toll road users and enhancing safety and

economic aspect of roads.

Most suitable PPP scheme with acceptable level of toll rate has been proposed by referring road

development plan in Indonesia and recent trend of PPP projects and regulations in order to make the

project viable.

3.3.2 Design Specification

(1) Design Standards

Indonesia Standard Specification for Geometric Design of Urban Roads published in March 1992 (hereinafter

referred to Indonesia Standard Specification in 1992) is used for basic design of the project.

When silent in the Standard Specification in 1992 above, the following is used as reference.

Road Construction Ordinance published in 2004 in Japan

(2) Road Classification

The road classification is ‘Class I’ from the Indonesia Standard in 1992, since the toll road is fully access

controlled highway.

Table 3.3-1 Road Classification

Function Class

Primary Arterial I

Collector Ⅱ

Secondary Arterial Ⅱ

Source: Indonesia Standard Specification in 1992

(3) Planned Traffic Volume

The traffic volume is set 15,000pcu/day since the road is Type I, Class I according to the Indonesia Standard

Specification in 1992.

3-47

Table 3.3-2 Traffic Capacity

Design classification Standard Design Daily Traffic per Lane (unit: pcu/day)

TypeⅠ Class Ⅰ 15,000

Class Ⅱ 14,000

TypeⅡ Class Ⅰ 13,000

Class Ⅱ 13,000

Class Ⅲ 12,000


(4) Design Speed

The design speed is set 100km/h or 80km/h since the road is Type I, Class I according to the Indonesia

Standard Specification in 1992.

Table 3.3-3 Design Speed

Design classification Design Speed (unit: km/hour)

TypeⅠ Class Ⅰ 100 or 80

Class Ⅱ 100 or 80

TypeⅡ Class Ⅰ 60

Class Ⅱ 60 or 50

Class Ⅲ 40 or 30

Class Ⅳ 30 or 20


(5) Design Vehicle

Design vehicle is as shown in the following according to the Indonesia Standard Specification in 1992.

Table 3.3-4 Design Vehicle

(unit: m)

Design Vehicle

Overall length

Overall width

Height Front

overhangWheel base

Rear overhang

Min. Turningradius

Passenger Car

4.7 1.7 2.0 0.8 2.7 1.2 6

Single Unit Truck/bus

12.0 2.5 4.5 1.5 6.5 4.0 12

Semi Trailer combination

16.5 2.5 4.0 1.3 Front4.0Rear9.0

2.2 12


(6) Lane Width

The width of the lanes is set 3.5m since the road is Type I, Class I according to the Indonesia Standard


3-48

Table 3.3-5 Lane Width

Design classification Lane width (m)

TypeⅠ Class Ⅰ 3.5

Class Ⅱ 3.5

TypeⅡ Class Ⅰ 3.5

Class Ⅱ 3.25

Class Ⅲ 3.25, 3.0


(7) Left Shoulder Width

The width of left shoulder is set as follows since the road is Type I, Class I according to the Indonesia Standard


Table 3.3-6 Left Shoulder Width

Design classification

Left shoulder width (m)

Without sidewalk With

sidewalk Standard

minimum

Exceptional

minimum

Desirable

width

Type I Class Ⅰ 2.0 1.75 3.25

Class Ⅱ 2.0 1.75 2.5

TypeⅡ Class Ⅰ 2.0 1.5 2.5 0.5

Class Ⅱ 2.0 1.5 2.5 0.5

Class Ⅲ 2.0 1.5 2.5 0.5

Class Ⅳ 0.5 0.5 0.5 0.5


(8) Right Shoulder Width

The width of right shoulder is set as follows since the road is Type I, Class I according to the Indonesia


Table 3.3-7 Right Shoulder Width

Design classification Right shoulder width (m)

Type I Class Ⅰ 1.00

Class Ⅱ 0.75

TypeⅡ Class Ⅰ 0.5

Class Ⅱ 0.5

Class Ⅲ 0.5

Class Ⅳ 0.5


(9) Center Median Width

The width of the center median is set as follows since the road is Type I, Class I according to the Indonesia


3-49

Table 3.3-8 Center Median Width

Design classification Standard minimum width (m) Exceptional minimum width (m)

Type I Class Ⅰ 2.5 2.5

Class Ⅱ 2.0 2.0

TypeⅡ Class Ⅰ 2.0 1.0

Class Ⅱ 1.5 1.0

Class Ⅲ 1.5 1.0


(10) Japan Standards for Urban Highway (Type 2, Class 1) and Small-Sized Vehicle Highway

Standards for urban highway and small-sized vehicle are not provided in Indonesia Standard Specification in

1992. Therefore the Standard in Japan is used for reference.

Table 3.3-9 Japan Standard for Reference

Classification Lane width (m)Left shoulder

width (m)

Center Median Width (m)

Standard Exceptional

Type 2

Class 1 Ordinary Road 3.5 1.25 2.25 1.5

Type 4

Class 1

Road for Small

Size Vehicles 2.75 0.5 1.0 -

Source: Road Construction Ordinance in 2004 in Japan

(11) Composition of Standard Width

The following shows the composition of the toll road width from the standards described above.

Figure 3.3-1 Standard Cross Section (1) At-Grade Structure in Phase 1

Source: Study Team

Sidewalk

Pettarani Road Toll Road Pettarani Road

2.5

10.5 1.0

3.5X2=7.0 3.5X2=7.0 1.75

20.0

1.75

10.5 1.0

43.0m

Canal Canal

Planting

Sidewalk

Planting

3-50

Figure 3.3-2 Standard Cross Section (2) Viaduct Structure in Phase 1

Source: Study Team

Figure 3.3-3 Standard Cross Section (3) Embankment Structure in Option A of Phase 2

Source: Study Team

17.0 17.0

43.0m

20.0

Toll Road

2.53.5X2=7.0 3.5X2=7.0 1.751.75

Sidewalk

Planting

Area Pettarani Road

Sidewalk

Planting

Area Pettarani Road

9.0

CanalCanal


Approx.40m

Box culvert

Toll Road

2.53.5X2=7.0 3.5X2=7.0 1.751.75

20.0


Height Approx.5m

3-51

Figure 3.3-4 Standard Cross Section (4) Viaduct Structure in Option A of Phase 2

Source: Study Team

Figure 3.3-5 Standard Cross Section (5) Viaduct Structure in Option B of Phase 2

Source: Study Team

(12) Interchange and Junction

The planned Urip IC1, Urip IC2, Alaudin IC1, Alaudin IC2 and terminal interchange are similar to the figure

below.

25m

20.0

Toll Road

2.53.5X2=7.0 3.5X2=7.0 1.751.75

25m

20.0

Toll Road

2.53.5X2=7.0 3.5X2=7.0 1.751.75

3-52

Figure 3.3-6 Interchange in At-Grade Structure (Metropolitan Expressway, Japan)

Source: Google Earth

Rappochini JCT is similar to the figure below.

Figure 3.3-7 Junction in Viaduct Structure (Metropolitan Expressway, Japan)


Toll gates in toll roads of Phase 1 and 2 is similar to the figure below.

Figure 3.3-8 Toll Gates (Metropolitan Expressway, Japan)


3-53

3.3.3 Scope of the Project (Site and Cost estimation)

On the aerial photographs taken, the contents for the proposed project (plan and profile) are superimposed and

shown below.

(1) Phase 1

Figure 3.3-9 Plan and Profile for Phase 1 (1)

Source: Study Team

3-54

Figure 3.3-10 Plan and Profile for Phase 1 (2)

Source: Study Team

3-55

(2) Phase 2 Option A

Figure 3.3-11 Plan and Profile for Phase 2 Option A (1)

Source: Study Team

3-56


Source: Study Team

3-57


Source: Study Team

3-58

(3) Phase 2 Option B

Figure 3.3-14 Plan and Profile for Phase 2 Option B (1)

Source: Study Team

3-59

Figure 3.3-15 Plan and Profile for Phase 2 Option B (2)

Source: Study Team

3-60

(4) Cost Estimation

Cost estimation for the proposed project is shown below and the details are provided in Chapter 5.1.

Table 3.3-10 Budget Scale for the Proposed Project

Unit: billion IDR

Item

Phase 1 Phase 2

Remarks At-Grade +

Viaduct Viaduct Option A Option B

Construction Cost 801 1,295 1,540 1,418

Land and

Compensation Cost 1 1 3,408 2,744

Total Project Cost 802 1,296 4,948 4,162

Source: Study Team

3.3.4 Issues and Solutions on Proposed Technology and System

(1) Issues

Toll Road Plan with less Land Acquisition

There are quite a few cases to delay projects due to resettlement in Indonesia and toll road plans have to

have view point of less land acquisition.

Proper Construction Plan of Toll Road within Urban Area

The project is to construct toll road in most traffic road (Pettarani Road) in Makassar City and therefore

proper construction plan has to be formulated such as plan of access road for construction, construction

method and construction yard in order to construct toll road in safe and smooth conditions.

Minimum Traffic Congestions during Construction

Number of lanes has to be maintained, detour has to be provided and timing of construction be

considered for ensuring smooth traffic flow without reduction of current road functions, as toll road will

be constructed in urban area and on existing roads.

Ensuring Environment during Construction

Countermeasures to maintain environment for residents nearby has to be set such as less noise or

vibration and clean air, as there are offices and houses along toll road construction.

Public Consultations and Relations

Construction plan, countermeasures for environment and traffic control during design and construction

of toll road have to be explained and have consents from residents and road users, as residents near

construction and road users are affected in construction

(2) Solutions

Review and Analysis of Location and Position of Toll Road Facilities

Toll road facilities such as road route, road structure, location of ramp, interchange and junction have to

be planned with view of minimum land acquisition and resettlement by thorough investigation of

surrounding areas.

Proposal of Construction Plan

3-61

In selection of contractor, construction plan and traffic control plan during construction has to be taken

care. At tender, construction plan and traffic control plan are required to submit together with work

experience for those, and then the contractor with high score of those items has to be selected.

Transportation of heavy materials and facilities has to be reviewed in terms of time and date and those

plans have to be announced to road users and residents. In addition, detail plans have to be prepared and

actual works have to be carried out accordingly. Particularly proper launching system of viaduct girders

has to be selected so as to occupy minimum space of roads during launching operation.

Proposal of Traffic Control

Prior to commencement of construction, discussions have to be arranged among related stakeholders,

police, consultants and contractor. Traffic control such as number of lanes, detours etc. has to be carried

out in accordance with construction plan. Those have to be made known to residents and road users in

advance.

Maintaining Environment

Noise, vibration and pollution control during construction has to be planned and carried out thoroughly.

Proposal of Public Consultations and Relations

Public relation has to be criteria for selection of contractor and the plan and experience for these actions

have to be submitted at tender. The contractor with high score in the actions has to be selected.

Chapter 4 Evaluation of Environmental and

Social Impacts

4-1

4.1 Environmental Aspects and Analysis

4.1.1 Environmental Aspects and Analysis

(1) Geology and Climate on the Project Site

Makassar City is located on the southwest of Sulawesi Island of Indonesia. Makassar City is the capital of

South Sulawesi Province, and the biggest city in Sulawesi island. The west side faces on the sea, and the

altitude is between 0 m and 25 m. The topographic features, low and flat ground, often causes flooding with

heavy rain.

The type of climate is classified tropical monsoon. Annual average temperature is 26.8 degrees Celsius;

maximum is 34.3 degrees Celsius; the minimum is 20.9 degrees Celsius. Temperature is stable through year.

The precipitation is 3,465mm (2011); the number of rainy days is 176 days. The precipitation is much

between November and March.

(2) Current Condition of the Project Site

The project site is located on the developing area to the outskirts in the east of the center of Makassar City.

1) Phase 1

Pettarani Road on Phase 1 is a new developed area. Along the road, there is a lot of offices of government

authorities, government companies and private companies, commercial facilities and university (see Figure

4.1-1). The back of the road is residential area. The median strip and a part of roadside of Pettarani Road are

planted with trees (see Figure 4.1-2).

Figure 4.1-1 Parliament of City on Pettarani Road Figure 4.1-2 Pettarani Road with Rich Green

Source: Study Team

2) Option A of Phase 2

Option A of Phase 2 is from the south of Pettarani Road to the Jeneberang River, and reaching coast line

along the river. The area from the south of Pettarani Road to the Jeneberang River is dense with residences,

and constitutes diverse residential spaces including low middle income classes to high income classes of new

4-2

developed residences (Figure 4.1-3 & 4.1-4). Along the river typical rural scene spreads (Figure 4.1-5).

However, on the alignment of the project, there are an electric facility, an archaeologic museum (Figure

4.1-6), a traditional architecture museum and amusement park.

Figure 4.1-3 Residence on the Project Site (1) Figure 4.1-4 Residence on the Project Site (2)

Figure 4.1-5 The Project Site along River Figure 4.1-6 Traditional Architecture Museum

Source: Study Team

3) Option B of Phase 2

The plan connects the east and the west of the center of Makassar City. Rappocini Road, which connects

Pettarani Road on the east of the project and Veteran Road, is a narrow road, 12m wide. The roadside is a

dense commercial area where 2 or 3 stories building are lining both sides of the street (Figure 4.1-7). Lanrodg.

Pasewang Road has good road environment with trees on the both sides of street, and there are low and

medium-rise housing, commercial facilities, government offices and high-rise hotels along the roadsides

(Figure 4.1-8). There are a military facility on the west side of Option B (Figure 4.1-9), and a major hospital

at the end interchange (Figure 4.1-10).

4-3

Figure 4.1-7 Rappocini Road Figure 4.1-8 Lanrodg Pasewang Road

Figure 4.1-9 Military Facility Figure 4.1-10 Siloam Hospital at End Interchange

Source: Study Team

(3) Air Quality

The local environmental agency of Makassar City is monitoring air qualities at some major points in the city,

shown in Figure 4.1-11. The data of TSP (total suspended particle), SO2 (sulfur dioxide) and NO2 (nitrogen

dioxide), included in the monitoring data which the environmental agency surveyed in 2013, are shown in

Table 4.1-1 to 3.

Every data satisfies the maximum allowance of the standard. Even though there is much difference between

monitoring points, the concentrations of NO2 and SO2 are high at active roads and intersections such as

Pettarani Road and Urip Road ((5), (9), (11)). Therefore it appears that the road traffic causes air pollution.

On the other hand, the monitoring data of TSP do not show significant features on each monitoring points,

and it appears that there are other causes.

4-4

Figure 4.1-11 Monitoring Points of Air Quality and Noise

Source: Study Team

Table 4.1-1 Monitoring Data of Air Quality in Makassar City (TSP: μg/Nm3）

Measurement (a hour) Maximum

Allowance Regulations Morning

(8:00)

Afternoon

(12:00)

Evening

(16:00)

(1) 102.31 153.41 179.74

230

(24 hours) SNI 19-7119.3-2005

(2) 164.03 111.19 151.94

(3) 150.31 164.12 127.91

(4) 161.44 165.15 185.66

(5) 204.98 123.91 77.64

(6) 186.33 94.29 116.14

(7) 161.85 128.41 137.60

(8) 93.80 76.86 90.16

(9) 172.47 134.36 97.79

(10) 172.84 195.58 130.49

(11) 127.39 113.34 148.38

(12) 86.00 193.44 146.29

(13) 96.43 134.27 135.05

(14) 69.37 89.32 102.23

SNI: Standard National Indonesia

Source: Local Environmental Agency of Makassar City

(13)

(12)

(4)

(6)

(14)

(10)

(5)

(3)

(11)

(7)

(9)

(1)

(8)

(2)

4-5

Table 4.1-2 Monitoring Data of Air Quality in Makassar City (SO2: μg/Nm3)



(8:00)

Afternoon

(12:00)

Evening

(16:00)

(1) 26.37 22.75 31.76

900 SNI 19-7119.7-2005

(2) 29.03 27.03 31.65

(3) 31.67 27.28 31.62

(4) 26.95 32.07 31.88

(5) 40.23 31.74 36.40

(6) 26.78 22.66 29.46

(7) 26.59 21.55 28.31

(8) 31.54 23.38 37.07

(9) 32.28 26.77 35.12

(10) 30.36 24.58 25.48

(11) 40.79 30.08 43.52

(12) 31.44 27.35 27.17

(13) 25.65 22.35 26.42

(14) 22.33 30.20 34.66



Table 4.1-3 Monitoring Data of Air Quality in Makassar City (NO2: μg/Nm3)



(8:00)

Afternoon

(12:00)

Evening

(16:00)

(1) 39.31 37.79 35.95

400 SNI 19-7119.2-2005

(2) 39.16 33.52 41.13

(3) 42.35 38.21 58.83

(4) 29.76 52.10 50.36

(5) 69.01 55.77 80.88

(6) 27.92 36.51 39.12

(7) 35.73 30.83 55.15

(8) 45.98 40.37 47.01

(9) 53.60 44.68 55.93

(10) 37.04 29.56 40.01

(11) 82.40 43.61 61.74

(12) 34.90 29.06 39.22

(13) 30.72 27.11 31.10

(14) 38.42 33.91 40.83



(4) Noise

The local environmental agency of Makassar City is monitoring noise in the city at the same locations as air

quality (see Figure 4.1-11). The monitoring data of noise which the environmental agency surveyed in 2013

are shown in Table 4.1-4. Most of monitoring data exceeds 70 dB(A) against the standard (maximum level:

4-6

60 dB(A)). Since the roadsides of some major roads exceed 80 dB(A), noise environment is very poor. It

appears that road traffic causes bad environment.

Table 4.1-4 Monitoring Data of Noise in Makassar City (dB(A))



(8:00)

Afternoon

(12:00)

Evening

(16:00)

(1) 72.8 71.6 70.4

60 IKM/5.4.17/BTKL-MKS

(2) 72.2 72.6 73.2

(3) 76.6 76.8 71.4

(4) 66.6 67.1 64.2

(5) 75.5 81.4 78.1

(6) 66.6 67.1 65.1

(7) 74.0 74.7 75.5

(8) 72.8 72.6 72.6

(9) 74.8 74.0 74.0

(10) 69.5 72.2 68.6

(11) 76.8 75.5 76.2

(12) 73.5 71.2 75.0

(13) 75.6 78.6 80.1

(14) 74.5 72.2 73.2

IKM/ /BTKL-MKS: Environmental regulation of Makassar city


(5) Water quality

The monitoring data of water qualities of the Jeneberang River near the project site and the Tallo River near

the existing toll road on Makassar City are shown in Table 4.1-5. The monitoring was conducted by the local

environmental agency of Makassar City in 2013. Monitoring points are shown in Figure 4.1-12.

Regarding the Tallo River, some monitoring items including BOD (Biochemical Oxygen Demand) and COD

(Chemical Oxygen Demand) exceed the maximum allowance of the standards. This shows degradation of

water quality on the Tallo River. On the other hand, the Jeneberang River near the project site (Option A of

Phase 2) generally satisfies the standard even though TDS and NO2-N exceed the maximum allowance.

Therefore it appears that the Jeneberang River keeps moderate condition.

4-7

Figure 4.1-12 Monitoring Points of Water Quality

Source: Study Team

Table 4.1-5 Monitoring Data of Water Quality in Makassar City

Items Unit Measurement Maximum

Allowance

Regulations,

Measurement MethodsJeneberang River Tallo River

Total dissolved solids (TDS) mg/L 21,400 17,100 1,000 SNI 06-6989.27-2005

Total suspended solids (TSS) mg/L 3 7 400 SNI 06-6989.03-2004

Ba mg/L <0.0513 0.0980 (-) IKM/5.4.21/BTKL-MKS

Fe mg/L 0.1374 0.1346 (-) IKM/5.4.5/BTKL-MKS

Cr mg/L <0.01 <0.01 0.05 Photometric

BOD mg/L 2.10 180.00 6 SNI 06-6989.72-2009

COD mg/L 23.86 198.80 50 SNI 06-6989.73-2009

DO mg/L 6.80 7.80 3(+) SNI 06-6989.14-2004

F mg/L 1.350 1.680 1.5 SNI 06-6989.29-2005

NH3-N mg/L 0.4 0.3 (-) Photometric

Co mg/L <0.0377 <0.0377 0.2 IKM/5.4.81/BTKL-MKS

P mg/L <0.90 20.1 1 Photometric

Cl mg/L 7,453.01 5,921.57 (-) SNI 06-6989.19-2009

Mn mg/L <0.0832 <0.0832 (-) IKM/5.4.6/BTKL-MKS

NO3-N mg/L 4.180 5.076 20 APHA 2005.4500-NO3

NO2-N mg/L 0.306 0.347 0.06 SNI 06-6989.09-2004

pH 6.52 7.77 6-8.5 SNI 06-6989.11-2004

Zn mg/L 0.0442 0.0405 0.05 IKM/5.4.9/BTKL-MKS

S mg/L 2918.500 3,437.200 (-) IKM/5.4.54/BTKL-MKS

Cu mg/L <0.0175 0.2721 0.02 IKM/5.4.8/BTKL-MKS

Cl2 mg/L 0.04 0.17 0.03 Photometric

(-): no establishment (+): minimum allowance


Jeneberang River

Tallo River

4-8

(6) Environmental Topics and Issues in Makassar City

The study team conducted an interview survey to experts and officers who have a deep knowledge of the

local environment. The interviews made topics and issues in Makassar City clear.

Makassar City is implementing a reclamation project of a coastal area. However, the project and urban

planning contain a lot of environmental issues. In particular, because of poor access of road network,

environmental problems derived from road traffic are anticipated. Measures against the traffic pollution

should be considered.

Developments are deteriorating greenery in the city. Measures against it should be considered. Generally

the urban environment is poor including the number of parks.

Water pollution, especially on sea area, is getting worse with developments.

Air and noise pollution are also getting worse with traffic increase, even though it is less than at other

mega city such as Jakarta.

(7) Forecasts (without the Project)

The road traffic on the main roads in Makassar City is saturating, and the pollution derived from the road

traffic is actualizing. In future, the increasing of the road traffic will aggravate the congestion and the

pollution.

4-9

4.2 Positive Environmental Impacts of the Project

4.2.1 Improvement in Environment

The project will improve vehicle speed in the city and reduce vehicle emissions.

(1) Reduction of Vehicle Emission by Improvement of Vehicle Speed

Air pollutants and carbon dioxide emitted from vehicles are reduced with rising of vehicle speed and

minimized at 60km/h to 70km/h (see Figure 4.2-1, 2. 3).

The implementation of the project will improve the driving speed of the vehicles which run in the city. And

the improvement of vehicle speed reduces the air pollutants and carbon dioxide derived from the vehicles.

Figure 4.2-1 Vehicle Emission Factor

(small vehicle: NOx)


(small vehicle: SPM)


(small vehicle: CO2)

Source: Technical Note of National Institute for Land and Infrastructure Management No. 671 (Japan)

The average vehicle speeds and VKT (vehicle kilometer traveled), in case of “with project” and “without

project”, are shown in Table 4.2-1.

Emission factor (g/vehicle km)

Vehicle speed (km/h)





4-10

Table 4.2-1 Estimation of Average Vehicle Speed and VKT in Makassar City

Cases Year

With Project Without Project

Vehicle Speed

(km/h)

VKT

(vehicle*km)

Vehicle Speed

(km/h)

VKT

(vehicle*km)

Phase 1 and

Option A of Phase 2

2023 17.0 16,447,721 16.7 16,344,484

2028 16.0 20,913,422 15.7 21,058,761

2035 16.6 33,418,335 16.2 33,749,822

Phase 1 and

Option B of Phase 2

2023 17.0 16,447,721 16.7 16,344,484

2028 16.2 21,294,106 15.7 21,058,761

2035 16.6 33,418,335 16.3 33,469,224

Source: Study Team

Based on Table 4.2-1 and the vehicle emission factors of CO2 (Figure 4.2-3), GHG reduction volumes with

the project are estimated on Table 4.2-2. In particular, the case of Phase 1 and Option A of Phase 2 will

reduce more emission, from 9 thousand CO2 ton (2013) to 57 thousand CO2 ton (2035).

Table 4.2-2 Estimation of GHG (CO2) Reduction Volume with Project

Cases Year

GHG (CO2) Reduction Volume

(CO2 t/day) Reduction Volume

(CO2 t/day)

Annual Reduction

Volume

(CO2 t/year) With Project Without Project

Phase 1 and

Option A of Phase 2

2023 3,334 3,359 25.3 9

2028 4,162 4,231 69.1 25

2035 6,509 6,664 155.7 57

Phase 1 and

Option B of Phase 2

2023 3,334 3,359 25.3 9

2028 4,178 4,231 53.2 19

2035 6,509 6,548 39.4 14

Emission factors of small vehicle were adopted on the assumption that all vehicles are small vehicle.

Source: Study Team

4.2.2 Improvement in Local Society

The project is consistent to the national and regional development plans in Indonesia (see Chapter 3.1). The

project encourages the traffic between south and north, east and west in Makassar City. Since this effect

raises the level of the local economy and dissolves the gap between regions, the improvement of the local

society is expected.

4-11

4.3 Negative Environmental Impacts of the Project

4.3.1 Negative Impacts on Environment

The project will cause negative impacts on the environment and society because it is a large-scale road

project. Japan International Cooperation Agency (JICA) is preparing an environmental check list which

shows environmental items on road (and bridge) projects. Based on the check list, the study team estimated

the environmental impacts which the project might cause, and measures against the negative impacts (Table

4.3-1).

On the progress of the project, EIA (environmental impact assessment) and protection measures will be

planned and implemented in accordance with the check list.

Table 4.3-1 Environmental Check List on the Project

Category

Items Check Points Yes: YNo: N

Measures of Environmental and Social Considerations

(Reasons for Yes or No, Bases, Mitigation measures)

1. permits and explanation

(1) EIA and Environmental Permits

(a) Have EIA reports been officially completed? (b) Have EIA reports been approved by authorities of the host country's government? (c) Have EIA reports been unconditionally approved? If conditions are imposed on the approval of EIA reports, are the conditions satisfied? (d）In addition to the above approvals, have other required environmental permits been obtained from the appropriate regulatory authorities of the host country's government?

(a) N(b) N(c) Y(d) N

(a) (b) (c) (d) The project is under the stage of pre-feasibility study. On the progress of the plan, EIA is implemented. The other permits are obtained too accordingly as the progress of the plan.

(2) Explanation to the Public

(a) Are contents of the project and the potential impacts adequately explained to the public based on appropriate procedures, including information disclosure? Is understanding obtained from the public? (b) Are proper responses made to comments from the public and regulatory authorities?

(a) Y(b) Y

(a) (b) The study team explained the draft plan of the project to stakeholders including Makassar CityMayor, and they accepted the project. An explanation for the community has not been conducted yet, because the project is under pre-FS stage. With the progress of the project, explanations for them will be conducted through EIA and RAP.

(3) Alternatives (a) Are the alternatives of the project examined in terms of the environmental and social matters?

(a) Y (a) The study team examined the road structures of the Phase 1 and some routes of the Phase 2 as alternatives.

2. Mitigation M

easures

(1) Air Quality

(a) Is there a possibility that air pollutants emitted from various sources, such as vehicle traffic will affect ambient air quality? Does ambient air quality comply with the country’s ambient air quality standards? (b) Where industrial areas already exist near the route, is there a possibility that the project will make air pollution worse?

(a) Y(b) N

(a) The air pollutants derived from vehicles may cause the negative impacts of air pollutions. The EIA study will make negative impacts clear. On the results of the EIA, measures against the negative impacts will be examined. (b) The air quality of the area around the project site is within the air quality standard of Indonesia.

(2) Water Quality

(a) Is there a possibility that soil runoff from the bare lands resulting from earthmoving activities, such as cutting and filling will cause water quality degradation in downstream water areas? (b) Is there a possibility that surface runoff from roads will contaminate water sources, such as groundwater? (c) Do effluents from various facilities, such as stations and parking areas/service areas comply with the country’s effluent standards and ambient water quality standards? Is there a possibility that the effluents will cause areas that do not comply with the country’s ambient water quality standards?

(a) Y(b) Y(c) N

(a) It is estimated that soil runoff from embankment causes the deterioration of water quality of downstream. The measures will be examined on the further study. (b) It is estimated that surface runoff from roads cause water resources including groundwater. The measures will be examined on the further study. (c) The project has no plan of parking/service areas.

4-12

Category




(3) Waste (a) Are wastes derived from road facilities legally disposed?

(a) N (a) The project has no plan of parking/service areas.

(4) Noise and Vibration

(a) Do noise and vibrations from vehicle traffic comply with the country's standards?

(a) N (a) The negative impacts of vehicle noise and vibration are as of now not clear. The EIA study will make negative impacts clear. On the results of the EIA, measures against the negative impacts will be examined.

3. Natural E

nvironment

(1) Protected Areas

(a) Is the project site located in protected areas designated by the country's law or international treaties and conventions? Is there a possibility that the project will affect the protected area?

(a) N (a) There is no preserved area around the project site.

(2) Ecosystem

(a) Does the project site encompass primeval forests, tropical rain forests, ecologically valuable habitats? (b) Does the project site encompass the protected habitats of endangered species designated by the country's law or international treaties and conventions? (c) If significant ecological impacts are anticipated, are adequate protection measures taken to reduce the impacts on the ecosystem? (d) Are adequate protection measure taken to prevent impacts, such as disruption of migration routes, habitat fragmentation, and traffic accident of wildlife and livestock? (e) Is there a possibility that installation of roads will cause impacts, such as destruction of forest, poaching, etc? (f) In case where the project site is located at undeveloped areas, is there a possibility that the new development will result in extensive loss of nature environments?

(a) N(b) N(c) N(d) N(e) N(f) N

(a) The project site is on the urban center and its outskirts. It does not encompass primeval forests, tropical rain forests and ecologically valuable habitats. (b) The project site does not encompass the protected habitats of endangered species designated by the country’s law or international treaties and conventions. (c) The project site is on the urban center and its outskirts. Significant ecological impacts are not expected. (d) The project may cause disruption of migration routes, habitat fragmentation and traffic accidents of wildlife and livestock. The measures will be examined on the further study.(e) The project site is on the urban center and its outskirts. It is not expected that it causes destruction of forest, poaching, desertification, etc. (f) Since the project site has been almost developed, significant loss of nature environment is not expected.

(3) Hydrology

(a) Is there a possibility that alteration of topographic features and installation of structures, such as tunnels will adversely affect surface water and groundwater flows?

(a) N (a) The major structure of the project is viaduct and embankment. It is no structure which causes negative impacts on runoff and groundwater flow.

(4) Topography and Geology

(a) Is there a soft ground on the route that may cause slope failures or landslides? Are adequate measure considered to prevent slope failures or landslides, where needed? (b) Is there a possibility that civil works, such as cutting and filing will cause slope failure or landslides? Are adequate measure considered to prevent slope failure or landslides? (c) Is there a possibility that soil runoff will result from cut and fill areas, waste soil disposal sites, and borrow sites? Are adequate measure taken to prevent soil runoff?

(a) N(b) N(c) Y

(a) Since the vicinity of the project site is flat area, there is no slope failure or landslides. However since the route of the Option A of the Phase 2 may pass on poor ground, the measures on the embankment will be examined on the further study. (b) The safety on the construction work will be examined on the further study. (c) The embankment, soil disposal sites and borrow sites may cause soil runoff. Measures will be examined on the further study.

4-13

Category




4. Social E

nvironment

(1) Resettlement

(a) Is involuntary resettlement caused by project implementation? If involuntary resettlement is caused, are efforts made to minimize the impacts caused by the resettlement? (b) Is adequate explanation on relocation and compensation given to affected persons prior to resettlement? (c) Is the resettlement plan, including proper compensation, restoration of livelihoods and living standards developed based on socioeconomic studies on resettlement? (d) Are compensations paid prior to the resettlement? (e) Are compensation policies issued written instructions? (f) Does the resettlement plan pay particular attention to vulnerable groups or persons, including women, children, the elderly, people below the poverty line, ethnic minorities, and indigenous peoples? (g) Are agreements with the affected persons obtained prior to resettlement? (h) Is the organizational framework established to properly implement resettlement? Are the capacity and budget secured to implement the plan? (i) Are monitoring on the resettlement planned? (j) Is Plan A developed to monitor the impacts of resettlement?

(a) Y(b) N(c) N(d) N(e) N(f) N(g) N(h) N(i) N(j) N

(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) The project causes involuntary resettlement. On the further study and RAP (Resettlement Action Plan), affected persons should be mitigated.

(2) Living and Livelihood

(a) Where roads are newly installed, is there a possibility that the project will affect the existing means of transportation and associated workers? Is there a possibility that the project will cause significant impacts, such as extensive alteration of existing land uses, changes in sources of livelihood, or unemployment? Is adequate measure considered for preventing these impacts? (b) Is there a possibility that the project will adversely affect the living condition of inhabitants other than the affected inhabitants? Are adequate measures considered to reduce the impacts, if necessary? (c) Is there a possibility that diseases, including communicable diseases, such as HIV will be introduced due to immigration of workers associated with the project? Are adequate considerations given to public health, if necessary? (d) Is there a possibility that the project will cause negative impacts to the traffic around the project site, such as road congestion and increase of traffic accident?(e) Is there a possibility that roads and railways will cause impede the movement of inhabitants? (f) Is there a possibility that structures associated with roads such as bridges will cause a sun shading and radio interference?

(a) Y(b) Y(c) N(d) Y(e) Y(f) Y

(a) The project is improvements and extension of the existing road. Therefore the project has no negative impacts on the existing means of transportation and associated workers. On the other hand, extensive alteration of existing lands may cause changes in sources of livelihood or unemployment. The measures will be examined through the RAP. (b) The project may cause the negative impacts of air pollution and noise for the residents on the roadsides. Measures will be examined on the further study. (c) The purpose of the project is activation of the local traffic. And it is not expected that influx from other areas causes the prevalence of infectious disease. (d) The construction activities of the project may cause the negative impacts to the traffic around the project site. Measures will be examined on the further study. (e) Since the embankment may hamper local residents, crossing with box culvert is introduced. (f) Viaduct may cause a sun shading and radio interference. Measures will be examined on the further study.

(3) Heritage

(a) Is there a possibility that the project will damage the local archeological, historical, cultural, and religious heritage sites? Are adequate measures considered to protect these sites in accordance with the country’s laws?

(a) Y (a) There is a historical heritage site (Benteng Somba Opu) on the route of the Option A of thePhase 2. Measures will be examined on the further study.

(4) Landscape (a) Is there a possibility that the project will adversely affect the local landscape? Are necessary measures taken?

(a) N (a) Since the project site is on urban center and its outskirts, there is no considerable land scape.

(5) Ethnic Minorities and Indigenous Peoples

(a) Where ethnic minorities and indigenous peoples are living in the rights-of-way, are considerations given to reduce the impacts on culture and lifestyle of ethnic minorities and indigenous peoples? (b) Does the project comply with the country’s laws for rights of ethnic minorities and indigenous peoples?

(a) N(b) N

(a) (b) Since the project is implemented on urban center and its outskirts, there are no negative impacts on culture and lifestyle of ethnic minorities and indigenous peoples.

4-14

Category




4. Social E

nvironment

(6) Working conditions

(a) Is the project proponent not violating any laws and ordinances associated with the working conditions of the country which the project proponent should observe in the project? (b) Are tangible safety considerations in place for individuals involved in the project, such as the installation of safety equipment which prevents industrial accidents, and management of hazardous materials? (c) Are intangible measures being planned and implemented for individuals involved in the project, such as the establishment of a safety and health program, and safety training (including traffic safety and public sanitation) for workers etc? (d) Are appropriate measures being taken to ensure that security guards involved in the project do not violate safety of other individuals involved, or local residents?

(a) Y(b) Y(c) Y(d) Y

(a) (b) (c) (d) The construction activities and the operations of the project are conducted under the legislation of Indonesia.

5. Others

(1) Impacts during Construction

(a) Are adequate measures considered to reduce impacts during construction (e.g., noise, vibrations, turbid water, dust, exhaust gases, and wastes)? (b) If construction activities adversely affect the natural environment (ecosystem), are adequate measures considered to reduce impacts? (c) If construction activities adversely affect the social environment, are adequate measures considered to reduce impacts?

(a) N(b) Y(c) Y

(a) Since the project is under the pre-FS stage, a construction plan has not been studied yet. Measures against the pollution with the construction activities will be examined on the further study. (b) Since the construction activities may affect natural environment (eco-system), protection measures will be examined. (c) Negative impacts of construction activities are not anticipated. In case that the further study of the project reveals negative impacts, adequate mitigation measures are required.

(2) Monitoring

(a) Does the proponent develop and implement monitoring program for the environmental items that are considered to have potential impacts? (b) Are the items, methods and frequencies included in the monitoring program judged to be appropriate? (c) Does the proponent establish an adequate monitoring framework (organization, personnel, equipment, and adequate budget to sustain the monitoring framework)?(d) Are any regulatory requirements pertaining to the monitoring report system identified, such as the format and frequency of reports from the proponent to the regulatory authorities?

(a) Y(b) Y(c) Y(d) Y

(a) (b) (c) (d) Monitoring is planned and implemented under EIA system (AMDAL) of Indonesia.

Source: Study Team based on the Environmental Check Lists of JICA Guidelines of Environmental and Social

Considerations

4.3.2 Negative Impacts on Local Society

The prospects of the land acquisition and the affected buildings on the project are shown in Table 4.3-2.

Regarding the Phase 1, the project requires no land acquisition since it is implemented within the Right of

Way (ROW) of the existing road. However some venders are operating their business in ROW of the existing

road (Figure 4.3-1). The project will affect them. If the proponent uses the JICA finance, the environmental

and social considerations is required according to JICA Guidelines for Environmental and Social

Considerations (hereafter “JICA Guidelines”). Although the vendors are occupying illegally and operating,

appropriate considerations are required for them.

Option A of Phase 2 requires land acquisition since it is new road construction. Since there are a lot of houses

on the objects of land acquisition, the land acquisition will cause no small number of involuntary resettlement.

Moreover there are not only residences but also an open-air museum, an amusement park, a historical

heritage (Figure 4.3-2) and an electric facility (Figure 4.3-3). On the implementation of the project, feasible

4-15

alternatives or protection measures should be examined under the consultation with relevant agencies. The

study has not clarified the importance, the boundary and the handling authority. On the implementation of the

project, these will be clarified, and the heritage will be preserved.

Even though Option B of Phase 2 requires land acquisition, the required area is less than Option A. However

the route of Option B is the center of the city, and the land acquisition and resettlement must affect

incalculable negative impacts on social and economic activities. Moreover the route of Option B includes

major and special facilities such as the parliament of Makassar City and military facility. Therefore it is

estimated that land acquisition takes a tremendous amount of time and effort and is very tough.

Table 4.3-2 Prospects of Land Acquisition and Affected House

Section Alternative Area of Land Acquisition Outline of Affected Houses

Phase 1 At-Grade

No land acquisition Approximately 100 vendors are operating within the existing ROW. Viaduct

Phase 2

Option A Approximately 15ha Approximately 600 buildings and shops, offices and residences of

total floor area approximately 12 thousand m2

Option B Approximately 9ha Shops, offices and residences of total floor area approximately

200 thousand m2

Source: Study Team

Figure 4.3-1 Venders Operating within ROW

Figure 4.3-2 Historical Heritage Adjoining Project

Site (Benteng Somba Opu)

Figure 4.3-3 Electric Facility Adjoining Project Site

Source: Study Team

4-16

4.3.3 Analysis of Alternatives

The proposed alternatives of Phase 2 including “without the project” are compared in the view of the

environmental and social considerations. The Table 4.3-3 shows the results of a comparison.

Comprehensively the Option A is superior to the Option B. However on the decision of the alignment on

detail design stage, appropriate considerations for the affected facilities will be required. The Option B is hard

to adopt because land acquisition is not realistic.

Table 4.3-3 Comparison of Alternatives

Alternatives

(Phase 2)

Evaluation Comprehensive

Evaluations Technical Aspects CostsEnvironmental and

Social Considerations

Necessary of Land

Acquisition

Option A

From Pettarani

Road to the

south and

seaside going

along

Jeneberang

River

The project site is

located on outskirts of

urban area, and main

structure is

embankment.

Therefore construction

will be relatively easy.

It is expected that there

are soft ground on a

part of the section.

Therefore appropriate

measures are required.

Low The scale of

construction will be

smaller than the Plan

B. And the number of

affected residences

and facilities are less.

Therefore the negative

impacts (air pollution,

noise and vibration)

will be less.

Land acquisition

(approximately 15ha) is

required. Most of the land

is low density and unused.

Therefore the negative

impacts are less than the

Plan B.

Comprehensively

it is superior to the

other alternative

though land

acquisition is

required.

Option B

From Rappocini

Road and

Lanrodg.

Pasewang Road

to seaside

Since the plan is

viaduct in the urban

area, construction

needs extreme care.

High The project site is

located on the urban

area, and the

environmental and

social impacts

including air pollution,

noise and vibration

will be large.

The lands of the roadsides

(approximately 9ha) of

Rappocini Road and

Lanrodg. Pasewang Road

are required. Since the

roadsides are the center of

society and economic of

Makassar City, the

negative impacts of the

land acquisition are

extensive.

The negative

impacts of the land

acquisition are

critical, and

measures are

unrealistic.

Without the

project -

- It is no impacts of

construction activities.

However air pollution

and road noise are not

mitigated.

No land acquisitions. Increasing traffic

will worsen the

environment of the

roadside.

Source: Study Team

4-17

4.4 Outline of Environmental Laws, Regulations and Guidelines

4.4.1 Environmental Legislation

(1) EIA (AMDAL)

The major legislation of EIA in Indonesia is shown in Table 4.4-1. Indonesia provides with AMDAL

(ANALISIS MENGENAI DAMPAK LINGKUNGAN: Environmental Impact Analysis) as EIA procedure.

AMDAL is stipulated in the law No.32/2009 and the government regulation No.27/1999. Moreover the

details of AMDAL procedure are stipulated in some decrees and regulations.

Table 4.4-1 Major EIA Legislations in Indonesia

Name Contents

Law No.32/2009 Basic law on protection and management of the environment

Government Regulation No. 27/1999 Environmental impact assessment

Decree of Environment Impact Management

Agency No.8/2000

Public involvements and information disclosure on the EIA process

Decree of Environment Impact Management

Agency No.9/2000

Guidelines on EIA preparation

Governmental Regulation No.27/2012 Environmental permit

Decree of State Ministry for the Environment

No.45/2005

Guidelines on standardization of environmental management plan

(RKL) and environmental monitoring plan (RPL)


No.17/2012

Guidelines on community involvements on EIA process and

environmental permit


No.8/2006

EIA (AMDAL) guideline


No.6/2008

On the license of EIA (AMDAL) appraiser

Decree of Sate Ministry for the Environment

No.16/2012

Guideline on environmental documents


No.24/2009

Guideline of evaluation on EIA documents


No.5/2008

Works of EIA (AMDAL) Appraisal Commission


No.5/2012

Business types and scale which require EIA (AMDAL)

Source: Study Team

The Environment Ministerial Regulation No.05/2012 stipulates the types of project which require AMDAL

procedure. The toll road projects which require the AMDAL procedure are shown in Table 4.4-2.

Phase 1 does not correspond with “Construction and/or Improvement of toll road that need land acquisition

other than ROW” due to the scale (length is 4.3km with no land acquisition). However viaduct plan of Phase

1 may correspond with “Construction of subway/underpass, tunnel, flyover whose length is 2km or more”.

Option A of Phase 2 requires AMDAL procedure due to the scale (length is 6.2km with land acquisition of

approximately 15ha).

4-18

Option B does not correspond with “Construction and/or Improvement of toll road that need land acquisition

other than ROW” due to the scale (length is 3.8km with land acquisition of approximately 9ha). However it

may correspond with “Construction of subway/underpass, tunnel, flyover whose length is 2km or more”.

Moreover a permit issued after the completion of AMDAL has an expiration period. After the fixing of a

project scheme, the proponent should consult about the necessity and the tackling for the AMDAL procedure

with the handling authorities of AMDAL.

Table 4.4-2 Types and Scale on Toll Road Project Required AMDAL Procedure

Type of Activity Scale Reason

Construction and/or Improvement of toll

road that need land acquisition other

than R.O.W (right of way) with

scale/length measurement (km) and land

scale/width (ha):

a. The total area of production operations

correlated with a wide spread impact

b. Triggering the conversion of irrigated

land into residential and industrial land

c. Increasing traffic, noise impact, visual

and social impact

a. At metropolitan area/big city

- Road length with total land area of land

acquisition; or

- Total area of land acquisition

≥ 5km

with land acquisition >10ha

≥ 30ha

b. At Town


acquisition; or


≥ 5km

with land acquisition> 20ha

≥ 30ha

a. Increasing traffic, noise impact, visual

and social impact

b. Function of land is converted

c. At Village


acquisition; or


≥ 5km

with land acquisition >30ha

≥ 40ha

a. Increasing traffic, noise impact, visual

and social impact

b. Function of land is converted

a. Construction of subway/underpass,

tunnel, flyover, with length of

≥2km

the impact has potentially of such

changes in the stability of the land (land

subsidence), groundwater and

disturbance in the form of impacts on

emissions, traffic, noise, vibration, visual

disturbances, impaired social networking

infrastructure (gas, electricity, water,

telecommunications) and social impacts

of the activity around

Source: Peraturan Menteri Negara Lingkungan Hidup Republik Indonesia Nomor 05 Tahun 2012

4-19

(2) Procedure of AMDAL

The procedure of AMDAL is shown in Figure 4.4-1.

Figure 4.4-1 Flow of AMDAL Procedure

Source: Study Team

The AMDAL procedure begins from a publication of a project by a project proponent and a publication of a

commencement of AMDAL procedure by a handling authority (AMDAL Committee). The project proponent

prepares and submits TOR of EIA (KA-ANDAL). After the appraisal of it, the project proponent prepares and

submits an EIA report (ANDAL), an environmental management plan (RKL) and an environmental

monitoring plan (RPL). After the appraisal of these reports, the implementation of the project is permitted,

and an environmental permit is issued. The AMDAL procedure emphasizes the involvements of community

on a series of the procedure. Consultation meetings with community are held on each stage: the beginning of

the procedure, the preparation of TOR (KA-ANDAL) and the implementation of EIA (ANDAL).

The periods of the procedure are generally three months of TOR (KA-ANDAL) preparation and more than

four months of EIA implementation.

The environmental permit has an expiration date. In case that the period from the issue of the permit to the

beginning of projects exceeds three years, the proponent has to implement the procedure again.

Publication of project

Publication of commencement of AMDAL procedure

Feedback Consultation meeting

Preparation of TOR(KA-ANDAL)

Environmental permit

Evaluation of TOR Revise

Agreement for TOR

Evaluation of ANDAL, RKL and RPL

Preparation of ANDAL, RKLand RPL

Community Handling authority Project proponents

Decision on environmental feasibility

Consultation meeting

Feedback

Consultation meeting

Revise

Stage of TOR preparation (approximately 3 month)

Stage of EIA preparation (approximately 4 month)

4-20

(3) Environmental Standards

A part of environmental standards and emission standards are shown in Table 4.4-3. Some provinces,

prefectures and cities have regional original standards.

Table 4.4-3 Environmental Standards and Emission Standards

Items Name Contents

Air

quality

Government Regulation No. 41,

1999 on Air Pollution Control

Regulation of air quality management, which stipulates maximum

allowance of air pollutant concentration.

Minister of Environment No.5/2006 Regulation of emission gas of motor cycle

Noise Decree of the Minister of State

Environment No.48, /1996

Standards of noise.

Each area is zoned with desirable noise environment. And noise

standards are stipulated on each zone.

Water

quality

Government Regulation Number

20/1990 Standards of water pollution on the public water area.

Source: Study Team

4.4.2 Legislation and Guidelines on Land Acquisition and Resettlement

(1) Legal Framework of Land Acquisition and Resettlement

The legislation of land acquisition and resettlement in Indonesia is shown in Table 4.4-4. The Law No.5/1960

is the most basic law on lands, which stipulates the rights of land. Recently the Law No.2/2012 and relevant

legislation, which stipulates land acquisition procedure on a public interest, has been enforced. The land

acquisition and compensations on public projects are implemented under this legislation.

Table 4.4-4 Major Legislation on Land Acquisition and Resettlement in Indonesia

Title Contents

Law No.5/1960 Basic law on land

Law No.2/2012 Land acquisition on a public project

Presidential Decree No.71/2012 Operation of land acquisition on a public project

Presidential Regulation No.65/2006 Supplementation on Presidential Regulation No.36/2005

Head of National Agency Regulation No.3/2007 Regulation on the execution of Presidential Regulation No.36/2005

Source: Study Team

(2) Land Acquisition Procedure in Indonesia

The land acquisition of public projects including PPP projects is implemented under the Law No.2/2012 and

the President Regulation No.71/2012 and Regulation of Head of National Land Agency No. 5/2012. The land

acquisition is implemented through each stage of planning, preparation and implementation. The outlines of

each stage are shown in Figure 4.4-2.

Planning stage: the proponent of a toll road project prepares land acquisition plan.

Preparation stage: Provincial Government conducts a survey and decides ROW. If land owners do not

agree to the decision, the procedure moves legal means.

Implementation stage: the proponent applies the project to National Land Agency (BNP). BNP

publicizes property records, the negotiation of land acquisition and agreement with land owners. If land

owners do not agree with BNP’s proposal, the procedure moves legal means.

4-21

The new law No. 2 (2012) stipulates the following matters for the purpose of facilitating land acquisition:

integrating operations, estimation of compensations by an independent appraiser, clarification of negotiation

term on compensation and legal process in case of breakdown in negotiations.

For raising feasibility of a project, the new law (2012) shifted the responsibility of the cost to Indonesia

Government.

Figure 4.4-2 Land Acquisition Procedure of Public Projects in Indonesia

Source: Study Team

Regarding compensations for project affected persons (PAPs) with land acquisition, an independent appraiser

assesses the values of land, space, structure, vegetation and incidental facilities and others. Based on the

results of valuation, compensations are decided.

Planning Proponent: preparation of land acquisition plan

ImplementationBPN: execution of compensation

Preparation Provincial Government: - Public consultation - Decision of ROW and agreement with

land owners (legal process in case of breakdown in negotiation)

ImplementationProponent:

Application

National Land Agency (Badan Pertanahan Nasional: BPN)

Publication of property records

Negotiation of land acquisition

Agreement with land owners (legal process in case of breakdown in negotiation)

4-22

4.5 Roles of Relevant Organizations in the Host Country

4.5.1 EIA (AMDAL)

The project, which is implemented as one project including both of Phase 1 and Option A of Phase 2, will

require the AMDAL procedure which is EIA procedure in Indonesia. After fixing the plan, the necessity of

AMDAL procedure should be confirmed to the handling agency of AMDAL (Local environmental agency of

Makassar City). If AMDAL is required, the proponent needs to prepare the following documents:

KA-ANDAL (TOR of EIA)

ANDAL (EIA report)

RKL (Environmental management plan)

RPL (Environmental monitoring plan)

The proponent has to commit the preparation of the documents and the procedure of AMDAL to the licensed

local consultants.

The proponent should sufficiently consult with the handling agency of AMDAL and relevant agencies on the

preparation of the AMDAL documents. AMDAL procedure emphasizes information disclosure to community

and public involvement. In particular, consultation meetings on milestones are important. The proponent has

an obligation to conduct monitoring and report the results after implementing the project.

4.5.2 Land Acquisition and Resettlement

Phase 2 requires land acquisition and resettlement of residents. In advance of the implementation of the

project, the proponent conducts a survey for affected persons including census, livelihood and compensations,

and prepares LARAP (land acquisition and resettlement action plan). Phase 1 does not require land

acquisition. However some vendors are operating their business on the existing ROW. The considerations for

them are required too.

On the implementation of the project, if the proponent uses JICA funds, the proponent must conduct LARAP

including the vendors who have no rights of their business.

4.5.3 Environmental and Social Considerations under JICA Guidelines

When the proponent makes efficient use of JICA funds, adequate environmental and social considerations are

essential. EIA and RAP have to satisfy the both requirements of host country and JICA guidelines for

environmental and social considerations. JICA categorizes the project by the estimated degree of negative

impacts. Generally road projects are categorized “A” which is estimated to affect significant negative impacts.

The project may be categorized “A” since it can cause involuntary resettlement including above 200 affected

persons. The EIA and RAP, which the proponent prepares, have to satisfy the requirements of category A.

Chapter 5 Financial and Economic Evaluation

5-1

5.1 Estimation of the Project

5.1.1 Construction Cost

(1) Unit Price by Road Structure

The unit prices according to the road structure are based upon the results of the survey from the past projects

collected within Indonesia and those are adjusted with four lanes toll road. Table 5.1-1 shows the unit prices of

the four lanes toll road converted per one kilometer.

Table 5.1-1 Unit Price of Construction by Road Structure in Past Projects

M IDR: Million IDR

Road

Structure

Jakarta

Viaduct Highway

Makassar

Nipa-Nipa Bridge Bali Toll Road

*Java Island

Jakarta Pusat - East

Jakarta

Viaduct Structure

(M IDR/km) 295,000 350,000 223,000 358,000

At-Grade Structure

(M IDR/km) 114,000 - - -

Embankment

Structure (M IDR/km) 205,000 - - -

* Jakarta Pusat･ Tanah Abang - East Jakarta･ Kampung･ Melayu Viaduct Structure

Source: Study Team

Each unit price of the road structure includes contingency (10% of construction cost), design and construction

supervision cost (10% of construction cost), administration cost (3% of construction cost) and the following

items. All items have been taken into consideration of inflation rate and have been revised for price of year

2014.

Viaduct Structure: superstructure, substructure, foundation, pavement, drainage, viaduct facilities,

lighting, etc.

At-Grade Structure: pavement, base course, sub-base course, drainage, roadside fences, lighting, etc.

Embankment Structure: earthwork, pavement, base course, sub-base course, drainage, roadside fences,

lighting, soft ground treatment, etc.

Nipa-Nipa Bridge in Makassar City is only 10 meter long small scale bridge and its structure differs from large

scale viaduct of this project.

Bali Toll Road and Jakarta Pusat - East Jakarta are both viaduct structure only and do not have at-grade nor

embankment structures.

Although the location differs, the Jakarta Viaduct Highway consists of viaduct structure as well as at-grade and

embankment structures within the urban area and is considered similar to the study region.

Therefore, the study team has used the unit price for cost estimation, as shown in Table 5.1-2.

5-2

Table 5.1-2 Unit Prices of Construction of Road Structures for Estimation

Unit: million IDR / km

Road Structure Viaduct Structure At-Grade Structure Embankment Structure Remarks

Unit Price 295,000 114,000 205,000

Source: Study Team

(2) Construction Cost for the Interchange and Junction

The construction cost for the interchange and junction, the study team has converted the main road structure

unit prices to the ramp width, and derived according to the structure of the main road.

(3) Estimation of the Construction Cost

The estimation for the construction cost is shown in Table 5.1-3.

Table 5.1-3 Construction Cost

M IDR: million IDR

Road Structure Unit

(M IDR)

Phase 1 Phase 2

At-Grade+Viaduct Viaduct Option A Option B Quan-tity

Amount (M IDR)

Quan- tity

Amount (M IDR)

Quan-tity

Amount (M IDR)

Quan-tity

Amount (M IDR)

Main Toll Road 4.3 762,000 4.75 1,207,050 6.2 1,334,000 3.8 1,076,000

Viaduct Structure 295,000 1.2 354,000 3.3 973,500 0.7 206,500 3.3 973,500

At-Grade Structure 114,000 2.5 285,000 0.7 79,800

Embankment Structure 205,000 0.6 123,000 0.75 153,750 5.5 1,127,500 0.5 102,500

IC & JCT 39,000 88,000 206,000 342,000

Urip IC 1 10,000 18,000

Tollgate 29,000 70,000

Urip IC 2 36,000 36,000

Arraudin IC 1 36,000 36,000

Arraudin IC 2 67,000

Terminal IC (Half) 67,000

Rappochini JCT 180,000

Terminal IC (Half) 90,000

Total 801,000 1,295,050 1,540,000 1,418,000

Source: Study Team

(4) Land Acquisition Cost

Land acquisition costs have been estimated by multiplying the estimated market prices in Makassar City by

required land areas. The estimated market prices are the averages of the unit costs obtained from the toll road

operator in Makassar, PT Margautama Nusantara (MUN).

5-3

Table 5.1-4 Estimated Market Prices of Land in Makassar City

unit: IDR/m2

Location Low High Average

(1) 35,000,000 40,000,000 37,500,000

(2) 15,000,000 20,000,000 17,500,000

(3) 15,000,000 20,000,000 17,500,000

(4) 5,000,000 10,000,000 7,500,000

(5) 3,000,000 5,000,000 4,000,000

(6) 10,000,000 15,000,000 12,500,000

(7) 15,000,000 20,000,000 17,500,000

Source: Study Team

(5) Compensations for Building

Regarding the roadside of Pettarani Road and Option B of Phase 2, compensation costs for buildings were

estimated by multiplying the total floor areas (required land acquisition areas x average number of floor) by

building unit costs in Makassar city. Regarding large-scale buildings, compensation costs for buildings were

estimated by multiplying floor areas estimated individually by the unit prices in Makassar city. The unit

prices of buildings in Makassar city (3.5 million IDR/m2) were obtained from MUN. Compensations are

calculated with the formula below.

Required land acquisition areas x Average number of building floor x Unit price of buildings

Regarding Option A of Phase 2, total compensations for buildings were estimated based on the number of

affected buildings measured with aerial photographs and estimated building costs. The building costs were

estimated 500 million IDR per building, multiplying assumed floor area (about 100m2), by the building costs.

On the roadsides of Pettarani Road, some vendors are operating their business. As compensations for them,

10 million IDR per vendor are included, which corresponds with the income of two months for middle class

in Indonesia.

The land acquisition costs and compensations are shown in Table 5.1-5. It includes contingencies, 10% of the

land acquisition costs and compensations.

(7)

(6)

(2)

(3)

(4)

(5)

(1)

5-4

Table 5.1-5 Land Acquisition Costs and Compensations

Unit: million IDR

Road structure Unit

price

Phase 1 Phase 2

At-Grade Viaduct Option A Option B

Quantity Price Quantity Price Quantity Price Quantity Price

Land acquisition

Alignment 17.5 0 0 102,000 1,785,000 16,900 295,750

12.5 0 0 0 22,200 277,500

IC/JCT

Urip-IC 2 37.5 0 0 9,700 363,750 9,700 363,750

Alaudin-IC 1 37.5 0 0 12,000 450,000 0

Alaudin-IC 2 17.5 0 0 8,000 140,000 0

End IC (half) 4 0 0 7,900 31,600 0

Rappocini-JCT 37.5 0 0 0 20,000 750,000

End IC (half) 17.5 0 0 0 11,000 192,500

Sub total 1 0 0 2,770,350 1,879,500

Compensation

Building (number) 500 0 0 580 290,000 0

Building (floor area:/m2) 3.5 0 0 10,800 37,800 175,700 614,950

Vendor (within the existing ROW) 10 100 1,000 100 1,000 0 0

Sub total 2 1,000 1,000 327,800 614,950

Total (sub total 1 + sub total 2) 1,000 1,000 3,098,150 2,494,450

Contingency 100 100 309,815 249,445

Grand Total 1,100 1,100 3,407,965 2,743,895

Source: Study Team

(6) Total Project Cost

The total cost for the project is shown in Table 5.1-6.

Table 5.1-6 Total Project Cost

Unit: billion IDR

Item Phase 1 Phase 2

Remarks At-Grade+Viaduct Viaduct Option A Option B

Construction Cost 801 1,295 1,540 1,418

Site Acquisition 1 1 3,408 2,744

Total Project Cost 802 1,296 4,948 4,162

Source: Study Team

5.1.2 Operation and Maintenance Cost

(1) Introduction

In this section it is mentioned how to calculate/estimate operation and maintenance (hereinafter referred to as

“O&M”) cost of the concerned new toll roads (Phase 1 and Phase 2). At first, the study team has supposed the

way of calculation/estimation and standard of O&M as below.

5-5

Since the proposed Phase 1 and 2 are the extension of the existing toll roads, the study team supposes it

natural that equivalent level of service and quality of O&M for toll collection, traffic management, and

maintenance are expected by the potential users and the Toll Road Authority (BPJT) (refer to Chapter 3.2.6

on O&M).

Though existing toll roads are mainly consist of earthwork section, proposed new toll roads have a certain

length of viaduct section. The difference of the O&M works between the earthwork section and the viaduct

section is considered as follows.

Toll collection: This cost is mostly affected by the number of toll gates, how to deploy toll

collectors and its number, and the way of toll collection and its facilities/equipment,

not by road structure. The number of opening toll gates depends on traffic tendency

and type of toll collection.

Traffic management: This cost is mainly affected by the way of carrying out traffic patrol including its

frequency, traffic control facilities/equipment and deployment of human resources.

Road structure hardly affects to this cost.

Maintenance: This cost is mainly affected by the way of carrying out maintenance work and its

management system such as facility and human resource etc. If the road is

viaduct/bridge, it needs repair/reinstall of bridge expansion joint or repair for bridge

decks. On the other hand, in earth work section embankment or cut slope needs

vegetation control.

(2) Data for Calculation

For calculating/estimating O&M costs, financial data of the toll road operators (BMN and JTSE) for three

years from 2011 to 2013 are used.

Though this financial data is divided into toll collection, traffic management and maintenance, further details

are not available. Therefore, it is impossible to specify grass cutting cost or bridge maintenance cost.

Moreover, the financial data is not divided into OPEX (operational expenditure) and CAPEX (capital

expenditure), former is the cost for cleaning and vegetation controls etc. and the latter is for repair,

rehabilitation or upgrading.

However, because major pavement rehabilitation of BMN and JTSE was done during 2011 to 2013 and such

work is normally carried out about every seven years in Japan, the study team considers that cost which is

necessary for a long term maintenance such as replacement of bridge expansion joint or major bridge deck

repair can be covered by these data from BMN and JSTE.

It is necessary to calculate maintenance cost separately for earth work section and bridge/viaduct section.

However, there are no proper toll road sections for reference, and moreover the financial data in the annual

report of PT Citra Marga Nusaphala Persada Tbk (CMNP) which operates viaduct type expressways in

Jakarta is not divided into tolling, traffic and maintenance. Hence, the study team adopts the above way of

calculation/estimation of O&M.

5-6

The financial data of BMN and JTSE are divided into tolling, traffic, maintenance and general and

administration expense (hereinafter “GA expense”). In the calculation/estimation of O&M, the GA expense is

prorated among tolling, traffic and maintenance cost.

(3) Inflation

Assuming the average of three years from 2011 to 2013 as equivalent as the data of 2012, then inflation after

2012 up to 2019 is referred to the International Monetary Fund (IMF) index while 5% is applied for after year

2019 due to no IMF index. For calculating O&M cost, the value of each opening step/year is calculated

considering length and traffic volume etc. then calculate the values from the next year of opening to next step

by using the inflation index mentioned in the first sentence of this paragraph.

(4) How to Calculate Cost by Using Other Toll Road Data

First, unit costs of each tolling, traffic and maintenance are taken from financial performance of the existing

toll roads, BMN and JTSE, and then multiples corresponding data such as length or traffic volume etc. to the

unit prices for calculating each O&M cost.

Toll collection cost is generally affected by number of toll gates, how to deploy toll collectors and its

number, and the way of toll collection and its facilities/devices. In this study, the cost is assumed to be in

proportion to traffic volume because it is difficult to assume details of the specific way of toll collection

in present stage.

Both traffic management cost and maintenance cost are generally affected by operation length, traffic

characteristics such as traffic volume and type of vehicles. In this study, the cost is assumed to be in

proportion to “traveler kilometer”*1) for estimation.

*1) this is calculated by sum up travel kilometers of all traffic

(5) Phases and ICs

ICs for concerned section will be opened step by step. Opening year, section to be opened, location of ICs,

and direction of each entrance and exit are supposed as in the following Table 5.1-7 and the Figure 5.1-1.

Table 5.1-7 Assumption of Interchanges (IC) in Each Phase

Step Opening Year IC to be opened IC Type Direction of Entrance and Exit

Phase 1 2023 Cross section with the URIP Road Half-diamond

To/from the north

(same as current situation)

Connection with the Alaudin Road Half-diamond To/from the north

Phase 2

Option A 2028

Connection with the Alaudin Road Half-diamond Adding to above, entrance and

exit to/from the south

The end facing to the seashore Half-diamond Only to/from the east

Phase 2

Option B 2028 The end facing to the seashore Half-diamond Only to/from the east

Source: Study Team

5-7

Figure 5.1-1 Assumption of Interchanges (IC) in Each Phase

Legend) Arrow mark: Entrance or exit, Solid line: In service, Broken line: Under construction

Current status

Phase 1

Phase 2

Option A

Phase 2

Option B

Source: Study Team

(6) Result

Based on the assumption above, O&M costs of the each phases’ opening year are calculated as the Table

5.1-8 below.

Table 5.1-8 Assumption and O&M Cost for Each Phase

B IDR: billion IDR

Opening Step Section Length

(km)

Traffic

Volume

(1000 no/day)

Year

Operation Cost of

Each Opening Year

All Section Per km

Phase 1 Phase 1 4.3 47 2023 32 B IDR 7.5 B IDR

Phase 2

Option A

Phase 1 4.3

10.5

68

2028 109 B IDR 10.4 B IDR Phase 2

Option A 6.2 46

Phase 2

Option B

Phase 1 4.3

8.1

North: 58

South: 89 2028 140 B IDR 17.3 B IDR

Phase 2

Option B 3.8 61

Source: Study Team

5-8

5.2 Results of Financial and Economic Evaluation

5.2.1 Financial Evaluation

(1) Purpose and Methodology for Financial Evaluation

The main purpose of this financial evaluation is to examine the financial feasibility of the project

implementation as a PPP project. Since this project is assumed as a PPP project, it is essential to meet the

financial requirements of each stakeholder such as the Government of Indonesia, the special purpose company

(SPC), and the financial institutions.

The financial feasibility of the project is analyzed from the following three points:

The profitability of the project cash flow is evaluated by the project IRR. This analysis assesses whether

the project cash flow itself provides sufficient return as a PPP project.

The equity IRR is evaluated as to whether the return is sufficient for SPC. The analysis determines how

the return to SPC will change according to funding method.

A debt service coverage ratio (DSCR) is utilized to evaluate whether the project cash flow will withstand

the repayment of loans provided by the financial institutions to the SPC. In each year of the loan term, the

cash flow will be verified as to whether it is sufficient for the repayment of the principle and interest of the

loan.

Based on the “Toll Road PPP Guideline Manual” in Indonesia (2012), the financial feasibility will be examined,

using the following indicators. Project IRR is to be more than 16 %. DSCR is a measure of cash inflow

available to pay debt compared to the repayments that are due. A DSCR of more than 1.2 suggests the ability of

SPC to use profit to repay its debt.

(2) Basic Assumption for Financial Evaluation

1) Basic Assumption

The following basic assumptions are set up.

Concession period: 35~6 years (construction period 5~6 years and operation period 30 years)

Implementation schedule:

Phase 1: Construction period from 2018 to 2022, Open in 2023, Operation by 2052.

Phase 2: Construction period from 2022 to 2027, Open in 2028, Operation by 2057.

Corporate tax: 25%

Depreciation: Straight line method 30 years

Inflation: 5.0%

Exchange rate: USD 1= IDR 12,167, JPY 1= IDR 105 (as of November, 2014)

2) Funding for SPC

Debt/Equity

70% is loans from financial institutions, and 30% is investments from the private sector

Interest

5-9

JICA private sector investment finance (3.0% interest)

The interest rate of JICA private sector investment finance (PSIF) will be calculated based on the

Government of Japan Bond. The study team assumes the interest rate (3%) for JICA PSIF loan by adding

the risk premium on the interest rate of the Government of Japan Bond according to the discussion with

JICA.

Loan term

20 years for loan term and 5 years for grace period

(3) Scenario

The following scenarios are evaluated in terms of the project feasibility based on two phases depending on toll

rates, existence of land acquisition and Viability Gap Fund (VGF).

Table 5.2-1 Project Scheme Scenario

Phase Structure Scheme Toll Rate

Phase 1

At-Grade + Viaduct BOT scheme IDR 700/km

IDR 1000/km

IDR 1100/km

IDR 1400/km

Viaduct BOT scheme

Revenue Sharing with existing SPC

Phase 2 Option A SBOT scheme with Land Acquisition

Option B SBOT scheme with Land Acquisition

Source: Study Team

BOT scheme: SPC is in charge of all project costs and receives revenue for all sections.

SBOT scheme: The Government of Indonesia implements land acquisition and part of construction cost and

SPC is in charge of the remaining project cost. SPC receives revenue for all sections.

(4) Financial Evaluation (Comparison of Scenarios)

The results of the evaluation are as follows.

5-10

Table 5.2-2 Summary of Financial Evaluation

Phase Structure

(Cost BRP)

Too Rate

(IDR/km)

Project

IRR (%)

Equity

IRR (%)

Min DSCR

(Ave. DSCR)Policy

Phase 1

At-Grade+

Viaduct (802)

700 7.4 6.9 0.4 (1.0)

1,000 11.4 12.9 0.7 (1.8)

Viaduct

(1,296)

700 4.5 2.5 0.2 (0.6)

1,000 7.9 7.7 0.4 (1.1)

700 18.6 *1 1.4 (3.7) Revenue Sharing *3

1,000 20.0 *1 1.6 (4.1)

Phase 2

Option A

(4,948)

700 1.0 *2 0.1 (0.2)

1,000 3.2 0.1 0.1 (0.3)

1,000 9.7 10.6 0.5 (1.0) Land Acquisition

1,100 16.0 19.9 1.1 (2.2) Land Acquisition +VGF

Option B

(4,162)

700 -0.3 *2 0.1 (0.2)

1,000 1.8 *2 0.1 (0.3)

1,400 16.1 20.5 1.2 (2.3) Land Acquisition +VGF

*1 In order to calculate the return of the investment, it is necessary to fix the shareholding ratio

considering shareholders value of existing SPC and the capital increase value. At this stage, since the

shareholder value has not been fixed, Equity IRR cannot be calculated.

*2 Since there is no return during the concession period, Equity IRR cannot be calculated.

*3 The revenue of the existing SPC (BMN) is assumed to be shared with the revenue of the new toll road

SPC to operate both the new toll road and the existing toll road.

Source: Study Team

1) Phase 1 (At-grade+ Viaduct): Toll Rate IDR 700/km

In the case that SPC is in charge of all project costs, the project IRR is 7.4%, which is very low and does

not meet the evaluation criteria of 16% for a BOT project.

2) Phase 1 (At-grade+ Viaduct): Toll Rate IDR 1,000/km

In the case that SPC is in charge of all project costs, the project IRR is increased to 11.4%, though it still

does not reach the evaluation criteria of 16% for a BOT project.

3) Phase 1 (Viaduct): Toll Rate IDR 700/km

In the case that SPC is in charge of all project costs, the project IRR is 4.5%, which is still low and does not

meet the evaluation criteria of 16% for a BOT project.

4) Phase 1 (Viaduct): Toll Rate IDR 1,000/km



5) Phase 1 (Viaduct): Toll Rate IDR 700/km + Revenue Sharing

In the case that SPC shares the revenue with the existing SPC, the project IRR is 18.6%, which is over the

evaluation criteria of 16% for a BOT project. In addition, minimum DSCR is 1.4, which is also over the

5-11

evaluation criteria of 1.2. Therefore, this scenario is financially feasible for Phase 1.

6) Phase 1 (Viaduct): Toll Rate IDR 1,000/km + Revenue Sharing

In the case that SPC shares the revenue with the existing SPC, the project IRR is 20.0%, which is over the

evaluation criteria of 16% for a BOT project. In addition, minimum DSCR is 1.6, which is also over the

evaluation criteria of 1.2. Therefore, this scenario is financially feasible for Phase 1.

7) Phase 2 (Option A): Toll Rate IDR 700/km

In the case that SPC is in charge of all project costs, the project IRR is 1.0%, which is very low and does


8) Phase 2 (Option A): Toll Rate IDR 1,000/km



9) Phase 2 (Option A): Toll Rate IDR 1,000/km + Land Acquisition

In the case that the government implements land acquisition and SPC is in charge of the rest of all project

costs, the project IRR is increased to 9.7%, though it still does not reach the evaluation criteria of 16% for

a SBOT project

10) Phase 2 (Option A): Toll Rate IDR 1,100/km + Land Acquisition + VGF(50%)

In the case that the government implements land acquisition and provide SPC with VGF (50% of

construction cost) and SPC is in charge of the rest of all project costs, the project IRR is 16%, which meets

the evaluation criteria of 16% for a SBOT project. In addition, minimum DSCR is 1.1, which is a little

lower than the evaluation criteria of 1.2. However, there is no year when the DSCR is lower than 1.0 and

this scenario is financially feasible for Phase 2.

11) Phase 2 (Option B): Toll Rate IDR 700/km

In the case that SPC is in charge of all project costs, the project IRR is -0.3%, which is very low and does


12) Phase 2 (Option B): Toll Rate IDR 1,000/km



13) Phase 2 (Option B): Toll Rate IDR 1,400/km + Land Acquisition + VGF

In the case that the government implements land acquisition and provide SPC with VGF (50% of

construction cost) and SPC is in charge of the rest of all project costs, the project IRR is 16.1%, which

meets the evaluation criteria of 16% for a SBOT project. In addition, minimum DSCR is 1.2, which meets

the evaluation criteria of 1.2. Therefore, this scenario is financially feasible for Phase 2.

5-12

(5) Results of Financial Evaluation (Summary)

Regarding Phase 1, Viaduct structure is selected from the Comparison of Phase 1 in Table 3.2-3 (ref. Chapter

3.2.3). However, from evaluation results of these scenarios, the project as a BOT scheme seems difficult to

implement, even though the toll rate is IDR 1,000/km. But, if it is possible for SPC to share the revenue with the

existing SPC (BMN) as an extension project of the existing SPC (BMN), the results show that it is financially

feasible as a BOT project.

Regarding Phase 2 (both Option A and B), from evaluation results of these scenarios, the project as a BOT

scheme seems difficult to implement, even though the toll rate is IDR 1,000/km. However if the Government of

Indonesia implements land acquisition and provides VGF (50% of the total construction cost), and the toll rate

is IDR 1,100/km ~ IDR 1,400/km, the results show that it is financially feasible as an SBOT project.

In addition, DSCR shows less than 1.2 in all scenarios except the revenue sharing scenario with the existing

SPC for Phase 1. Thus, it seems difficult to ensure sufficient cash flow to repay the debt during the loan terms.

The project is evaluated with the assumption of utilizing the JICA private sector investment finance scheme

(PSIF). Compared with loan conditions of other commercial banks, this finance scheme has a high advantage in

terms of low interest, long term, and a loan grace period. Specially, the interest rate of commercial banks in

Indonesia is much higher than that of JICA PSIF. Therefore, it is essential for the project to utilize this finance

scheme.

(6) Sensitivity Analysis

Sensitivity Analysis is applied to the following scenarios, Phase 1 (Viaduct) without the revenue sharing and

Phase 2 (Option A) without VGF, to identify how the change of revenue or cost would have an impact on the

PIRR.

Table 5.2-3 Sensitivity Analysis of Phase 1 (Viaduct) : Toll Rate IDR 1,000/km

Cases Revenue

Increase of 20% Increase of 10% Basis Decrease of 10% Decrease of 20%

Cost

Decrease of 20% 12.7% 11.7% 10.6% 9.5% 8.2%

Decrease of 10% 11.0% 10.1% 9.1% 8.1% 6.9%

Basis 9.7% 8.8% 7.9% 6.9% 5.8%

Increase of 10 8.5% 7.7% 6.8% 5.9% 4.9%

Increase of 20% 7.5% 6.7% 5.9% 5.0% 4.0%

Source: Study Team

5-13

Table 5.2-4 Sensitivity Analysis of Phase 2 (Option A) : Toll Rate IDR 1,000/km+Land Acquisition

Cases Revenue

Increase of 20% Increase of 10% Basis Decrease of 10% Decrease of 20%

Cost

Decrease of 20% 13.0% 12.1% 11.2% 10.2% 9.1%

Decrease of 10% 12.1% 11.3% 10.4% 9.4% 8.4%

Basis 11.3% 10.5% 9.7% 8.7% 7.7%

Increase of 10% 10.6% 9.9% 9.0% 8.1% 7.1%

Increase of 20% 10.0% 9.3% 8.5% 7.6% 6.6%

Source: Study Team

From evaluation results of these scenarios, the PIRR for Phase 1 is the most sensitive to the change of the

project cost. In addition, it is difficult for both scenarios to achieve the evaluation criteria of 16% for BOT of

SBOT project, even though the revenue increases by 20% and the cost decreases by 20%.

5.2.2 Economic Evaluation

(1) Objectives of Economic Evaluation

The economic evaluation is to evaluate a project from the view of national economy by comparing

economical benefits and economical costs through the project life.

(2) Measures of Economic Evaluation

1) Discounting

The total costs and benefits of a project can be added up over the long time of project life; however, project

investment, which is the main part of a project cost, is done in the early time of the project. Conventionally,

resources used up or generated in earlier years value higher than that in later years. Therefore, a discount rate

is applied to the resources and benefits in different years to convert them to present values. In this study, the

opportunity cost of capital is applied for the discount rate.

2) Opportunity Cost of Capital

Theoretically, the opportunity cost of capital can be understood as “the marginal Economic Internal Rate of

Return (EIRR): the lowest EIRR of the projects which are accepted under the budget constraint of a nation.”

However, this ratio is difficult to figure out actually, hence International Donors use 10-12% as the discount

rate generally.

3) Economic Benefits

Economic benefits of this project are defined as a Vehicle Operation Cost (VOC) and Travel Time Cost

(TTC). Those benefits are calculated by subtracting total costs of VOC and TTC of “With Project Case” from

those of “Without Project Case”.

4) Conversion from Market Price to Economic Price

The economic evaluation is done in economic price, in order to evaluate a project from the view of national

economy. Economic price can be converted from market price, and the economic price means (a) truly used

5-14

for the project and (b) true price of the resources and outputs. Above mentioned (a) is to subtract taxes,

interests, subsidies, etc. because they are transfers of incomes in the view of national economy. Also (b) is to

correct distortions of market prices such as a gap between internal prices and world prices of resources and

services. Generally, Standard Conversion Factor (SCF) is used to correct those distortions.

5) Land Price

The economic cost of land is given by its opportunity cost - the net income that could be obtained from the

land in its most likely alternative non-speculative use through the project life. Since the project area is a

residential area, the opportunity cost is regarded as a rental fee of a residence. Therefore, 0.05% of the price

of land and building is assumed as the annual cost of land.

6) Evaluation Indices

Economical Internal Rate of Return (EIRR), Net Present Value (NPV) and Benefit Cost Ratio (BCR) are

applied as evaluation indices and calculated.

(3) Assumptions for Economic Evaluation

The following assumptions are set for Economic Evaluation.

Project Life: 40 years (from 2018 to 2057)

Opportunity Cost of Capital (Discount Rate): 12%

Standard Conversion Factor (SCF): 0.9

Residual Value: Nothing

(4) Unit Costs for Benefits

1) Vehicle Operation Cost (VOC)

Vehicle Operation Cost is calculated by the formula which was developed in “the Study on Arterial Road

Network Development Plan for Sulawesi Island” (JICA, 2008, hereinafter referred to as “the JICA Study in

2008”).

The VOC of “the JICA Study in 2008” is derived from “Indonesian Road Management System (IRMS)”

(2006). IRMS is a supporting system for budgeting system for road maintenance, comprising several modules

such as an economic review module. Therefore, base VOC shown in the report of “the JICA Study in 2008”

is reasonably regarded as economic price and not necessary to be modified in terms of excluding taxes and

subsidies.

IRMS has not been updated since 2006, therefore, this study updated base VOC by using year-to-year

changes of price of fuel in Indonesia. The price of crude oil in 2012 is about twice of that in 20061. In this

study, this difference was applied and base VOC was multiplied 2.1 to the base VOC in 2006. In the

meantime, the government of Indonesia reduced the amount of subsidies for fuel, as the result, price of

gasoline hiked at the market price. However, economic price is not affected and the price should be same.

1 “Handbook of Indonesia’s Energy Economy Statistics”, Ministry of Energy and Mineral Resources, republic of Indonesia, 2013

5-15

The formula of VOC is as a function of travel speed and International Roughness Index (IRI), therefore VOC

is derived in accordance with road condition and travel speed. In this study, IRI is applied 3mm/m, which is

fair road condition, same as “the JICA Study in 2008”.

Table 5.2-5 Vehicle Operating Cost (VOC)

No. Vehicle Type k1 k2 k3 k4 k5 Base VOC (IDR/km)

1 Passenger Car 0.66707 22.23983 0.000006808 0.012937 0.00139 2,931.8

4 Minibus 0.32475 21.93222 0.000028582 0.068937 -0.00007 3,621.8

5 Large Bus 0.32985 22.26215 0.000053281 0.012930 0.00069 5,745.1

6 Pickup 0.42258 20.52269 0.000027740 0.044006 -0.00006 3,344.1

9 Truck 0.29038 13.69068 0.000068153 0.053472 0.00027 11,440.1

11 Motor cycle 1.0513 13.71763 -0.000009124 0.009024 0.00052 424.0 VOCi = BaseVOCi * NDXi NDXi = k1i + k2i/Vi + k3i*Vi2 + k4i*IRI + k5i*IRI2

Source: Study Team updated upon “the JICA Study in 2008”

Figure 5.2-1 Travel Speed and Vehicle Operation Cost

0

5,000

10,000

15,000

20,000

25,000

10 15 20 25 30 35 40 45 50 55 60 65 70 75 80

Passenger Car Minibus

Large Bus Pickup

Truck Motor cycle

VO

C (

Rp/

km)

Speed (km/hr) Source: Study Team updated upon “the JICA Study in 2008”

2) Travel Time Cost (TTC)

The minimum labor wage of the South Sulawesi Province increased to 2.35 times in 2013 compared to 2006.

The assumptions for calculating the Travel Time Cost (TTC) are regarded as same as “the JICA Study in

2008”, such as shadow price, which is conversion ratio from market price to economic price, composition of

working and non-working hours, average occupancy of vehicles and so on. The study applies TTC as shown

in Table 5.2-6.

5-16

Table 5.2-6 Travel Time Cost

Vehicle

Type Sedan

Utility

Passenger

Utility

Freight

Light

Bus

Large

Bus Truck

Motor-

Cycle

Income/month (IDR) 6,204,000 1,965,000 1,758,000 1,965,000 1,965,000 1,758,000 2,482,000

Income at SWR 5,273,400 1,670,250 1,494,300 1,670,250 1,670,250 1,494,300 2,109,700

Working hours/month 191 191 191 191 191 191 191

Passenger TTC per Hour

Work time value (IDR) 27,609 8,745 7,824 8,745 8,745 7,824 11,046

Non-work time value 7,731 2,449 2,191 2,449 2,449 2,191 3,093

% Work trips 50% 30% 75% 30% 30% 75% 50%

% Non-work trips 50% 70% 25% 70% 70% 25% 50%

Occupancy (persons) 2.0 8.0 1.0 16.0 32.0 1.0 1.2

TTC/passenger/hr 17,670 4,337 6,415 4,337 4,337 6,415 7,069

TTC/vehicle/hr (IDR) 35,340 34,696 6,415 69,392 138,784 6,415 8,483

Source: Study Team updated upon “the JICA Study in 2008”

(5) Results of Economic Evaluation

The results of economic evaluation are shown in Table 5.2-7. In all cases, EIRR is bigger than 12% of the

opportunity cost of capital. Moreover, NPV is positive and BCR is more than 1.0. Above mentioned indicates

that all the case is economically viable. The most valuable NPV is shown in the case of constructing at-grade

with viaduct at Phase 1 and Option A of Phase 2.

Table 5.2-7 Results of Economic Evaluation

Phase 1 At-Grade+Viaduct Full Viaduct At-Grade+Viaduct Full Viaduct

Pahe 2 Nothing Nothing Option A Option B Option A Option B

NPV (mil. IDR) 1,070,084 851,597 1,925,642 944,148 1,710,396 728,901

EIRR (%) 30.8 22.9 22.5 19.0 20.1 16.5

BCR 3.4 2.3 2.1 1.6 1.9 1.4

Source: Study Team

Chapter 6 Planned Project Schedule

6-1

6.1 Implementation Schedule

6.1.1 Basic Consideration

Basic considerations in each item of implementation schedule for the project are written below.

This study: Commencement in September 2014 and completion in February 2015

JICA PPP Preparatory Study: Submission of proposal on notice in January 2015

Study to commence in second quarters of 2015 and complete of Phase 1 in 15 months

Study to complete of Phase 2 in 20 months due to large scale of land acquisition and resettlement

Environment Impact Assessment (EIA) and Land Acquisition and Resettlement Action Plan (LARAP) to

prepare in accordance with JICA Guideline

Phase 1

PPP Proposal to Ministry of Public Works (PU) / National Development Planning Agency (BAPPENAS):

Application to submit during JICA PPP study

Estimate 18 months to complete process in PU / BAPPENAS

Land Acquisition and Resettlement: no land to acquire and therefore no resettlement

Toll Rod Authority (BPJT) Acceptance or Tender for New Operator of Toll Road: Estimate 12 months

Detail Design and Contractor Selection: Estimate 15 months

Construction of Toll Road: Estimate 48 months to complete

Public Use (Operation and Maintenance to commence): year 2023

Phase 2

PPP Proposal to PU/BAPPENAS: Application at middle of year 2017

Estimate 30 months to complete process in PU/BAPPENAS

(longer process because request to state government to do land acquisition and resettlement)

Land Acquisition and Resettlement: Estimate 48 months including preliminary actions in 12 months

Tender for New Operator of Toll Road: Estimate 18 months

Detail Design and Contractor Selection: Estimate 30 months

(longer process due to land acquisition and resettlement)

Construction of Toll Road: Estimate 48 months to complete

Public Use (Operation and Maintenance to commence): year 2028

The implementation schedule is prepared based on the following handbooks etc. and discussions with and

information from various stakeholders in Indonesia under this study.

Table 6.1-1 Handbooks etc. for PPP Scheme in Indonesia

National Development Planning Agency

(BAPPENAS)

Public Private Partnerships – Infrastructure Projects Plan in

Indonesia 2013

Toll Road Authority (BPJT) Toll Road Investment Opportunity 2013

Japan International Cooperation Agency (JICA) PPP Handbook Indonesia 2013

JICA / Ministry of Public Works (PU) Toll Road PPP Guideline Manual 2012

Source: Study Team

6-2

6.1.

2 Im

ple

men

tati

on S

ched

ule

Fig

ure

6.1

-1

Imp

lem

enta

tion

Sch

edu

le

S

ourc

e: S

tudy

Tea

m

III

IIIIV

III

IIIIV

III

IIIIV

III

IIIIV

III

IIIIV

III

IIIIV

III

IIIIV

III

IIIIV

III

IIIIV

III

IIIIV

III

IIIIV

III

IIIIV

III

IIIIV

III

IIIIV

III

IIIIV

1P

PP

Stu

dy

un

de

r M

ET

I

2P

PP

Pre

pa

rato

ry S

tud

y u

nd

er

JIC

A

a

)P

ha

se

1 in

clu

din

g E

IA &

LA

RA

P

b

)P

ha

se

2 in

clu

din

g E

IA &

LA

RA

P

3T

oll

Ro

ad

Ph

as

e 1

(4

.3 k

m)

a

)A

pp

lica

tio

n t

o P

U/B

ap

pe

na

s

b)

La

nd

Ac

qu

isit

ion

/ R

es

ett

lem

en

t(in c

ase lan

d aq

usi

tion a

nd

rese

ttele

ment

is r

equ

ired)

c

)R

ev

iew

by

BP

JT

/ T

en

de

r fo

r S

PC

d

)D

es

ign

& C

on

tra

cto

r S

ele

cti

on

by

SP

C

e

)C

on

str

uc

tio

n

f)

Op

era

tio

n &

Ma

inte

na

nc

e b

y S

PC

4T

oll

Ro

ad

Ph

as

e 2

- O

pti

on

A o

r B

(6

.2 k

m o

r 3

.8 k

m)

a

)A

pp

lica

tio

n t

o P

U/B

ap

pe

na

s

b)

La

nd

Ac

qu

isit

ion

/ R

es

ett

lem

en

t

c

)T

en

de

r fo

r S

PC

d

)D

es

ign

& C

on

tra

cto

r S

ele

cti

on

by

SP

C

e

)C

on

str

uc

tio

n

f)

Op

era

tio

n &

Ma

inte

na

nc

e b

y S

PC

20

22

20

23

20

24

20

25

20

26

20

27

Ite

ms

20

14

20

15

20

16

20

17

20

18

20

19

20

20

20

21

20

28

6-3

6.2 Issues and Solutions of Implementation Schedule 6.2.1 Delay in Approval of PPP proposal

For Phase 1, proposal will be made by the current toll road operator to extend the existing toll road as priority

idea. In this case, no tender for new operator of toll road will be needed, instead however the proposal will be

examined and approved by BPJT. In addition, the current concession contract of the existing toll road will be

altered and then examination and approval by BPJT may take certain time.

As second priority, Phase 1 will be proposed as unsolicited project and in this case, toll rate will be raised

from the existing level of rate and/or revenue sharing with the exiting toll road. In any case tender for new

operator of toll road will be required.

Approval for both cases will be estimated 30 months (application in 18 months plus approval or tender in 12

months) after application. When applying project, each process has to be checked and periodically monitored

on the actual steps after application submitted.

Related organizations are PU, Directorate General of Highway (Bina Marga), BPJT and BAPPENAS, so that

each organization is regularly visited and process is monitored whether all are done smoothly.

6.2.2 Delay in Land Acquisition and Resettlement

Many spots of lands are required along the route of toll road in Phase 2 and same to resettlement. Those land

areas and resettlements will be finally confirmed after basic design and discussions and negotiations with

land owners and residents affected will be complete in three years in accordance with the implementation

schedule. In order to finalize land acquisition and resettlement within the schedule, detail action programs

have to be prepared and confirmed among all stakeholders. Then actual process will be carried out in

accordance with the details in the following measures.

Proper monitoring on land acquisition and resettlement plan

When finding any problems, discussions among related organizations will be arranged and the plan will be

modified accordingly to prevent any delay.

6.2.3 Delay in Detail Design and Contractor Selection

Design has to be realistic and economical and in order to utilize full capacity of contractor, it is recommended

to allow tenderers to submit alternative design (in terms of construction duration and economical design) and

apply policy of value engineering. Tender documents for contractor will be prepared accordingly.

Land acquisition and resettlement are unavoidable in Phase 2 and it is truly required to do design with

minimum land. Even after basic design, certain modification of design will be made as necessary with

monitor of progress of land acquisition and resettlement.

6-4

To speed up contractor selection, proper tender documents have to be prepared.

6.2.4 Delay in Construction

In Phase 1, construction will be carried out within busy artery road and therefore it is important to have

sufficient traffic control during construction to maintain enough lanes and not to cause congestions. In Phase

2, it is equally important to have traffic control during construction as route is paralleling and crossing to

existing roads in certain sections.

Flow for preparing traffic control during construction is shown below.

Figure 6.2-1 Flow of Traffic Control Plan during Construction

No Yes

Other measures

Intolerablecongestion

Tolerable or shortcongestion

TrafficForecast

No worksite management

Number and widthof lanes are enough to ensure safe and efficient

traffic flow all time

Detourwithout worksite management

Worksite managementonly

Detour and Worksite Management

Reduction in the width of lanes leads to construction

Move to another timing

Avoid peak traffic

Short work time and other measures

Congestiion

Execution

Source: Study Team

In Phase 1 and Phase 2 Option B, construction is on existing roads and in Phase 2 Option A construction is on

or crossing existing roads. Within existing roads, utilities such as electric lines, telephone lines, water pipes

and sewer pipes are buried and/or installed as wires above ground. These utilities are under control of various

6-5

organizations (electric line by PLN, telephone line by Telecom, water and sewer pipes by local Government)

and details of utilities (number, quality, location and position etc.) will be checked to each organization

during design and prior to construction. All utilities affected will be relocated, removed and/or protected

before commencement of construction.

In viaduct construction, heavy equipment will work on existing roads and heavy materials (viaduct girders

etc.) be launched and therefore working space and road will be clearly separated and/or certain works like

launching of heavy girders be done in mid- night. It is also necessary to inform those special work schedules

to residents and road users to avoid traffic congestions and delay construction.

In Phase 2 Option A, big volume of embankment is needed and transportation of materials from borrow areas

to toll road position is required. Proper transport will be essential without damaging haul roads.

Earthworks will be badly affected by rainfall and timing of dry season and wet season has to be reviewed and

construction schedule be made in due consideration of weather.

At the end of construction, traffic flows between toll roads and normal roads have to be adjusted. Timing and

method for those adjustments or changes of traffic flow have to be reviewed thoroughly and be announced to

road users to avoid any confusion and accidents.

Chapter 7 Implementing Organization

7-1

7.1 State Authority

(1) Ministry of Public Works (PU)

The study team has clarified that the Indonesian Central Government is in charge of planning and

implementation of PPP toll road projects, and development of relevant legal systems.

The Indonesian road administration consists of three sectors as follows; Bina Marga of Public Works which is in

charge of national highways, each province public department (Dinas PU Provinsi – DPUP) which is in charge

of provincial highways, and each prefectural public department (Dinas PU Kabupaten – DPUK) which is in

charge of prefectural highways and other roads. As for toll roads, each project master plan is developed by Bina

Marga and then implemented by the Indonesia Toll Road Authority (BPJT) as provided in Table 7.1-1 below.

Specifically, BPJT is in charge of road projects initiated by the government. Bina Marga is responsible for

master plans of private-sectors-proposed projects, and their implementation is looked after by BPJT. However,

road management work itself is provided by a concession contractor of each project.

Table 7.1-1 Roles between Bina Marga and BPJT

Each Phase on the PPP Guideline Roles

Bina Marga BPJT

1. Project Formation implemented by Bina Marga Advices to Bina Marga

2. Pre-F/S and F/S Pre-F/S F/S

3. Selection of PPP Scheme Consultation and Decision Making

4. Bidding Process Assist to BPJT Preparation and Implementation of

Bidding

5. Concession Contract Assist to BPJT Implementation

6. Operation Appraisal of Project Supervision of Project

7. Termination of Concession Asset to Transfer to Indonesian Government and Project Appraisal

Source: Toll Road PPP Guidelines Manual (JICA/PU) 2012

(2) Formation of PPP Toll Road Project

Details of the Operational Guideline Manual (Vol.3, 2012) related to PPP toll road projects formation are

provided as the following flow diagram.

7-2

Figure 7.1-1 Formation of PPP Toll Road Project

Source: JICA PPP Handbook

The followings are important factors for formation of toll road PPP projects;

Unsolicited projects are implemented in cooperation of public sector and local government.

(e.g 1. the case that land acquisition and construction are subsidised by local government)

Solicited projects receive fund infusion from national government.

(e.g 2. VGF: National governmental support, Improvement of already-operated national highways)

(e.g 3. The case that existing national highways are improved)

The self-paying system with revenue pooling, which is based on revenue sharing among several operators

(Special Purpose Companies: SPCs), needs to be implemented who operate toll roads. In this case, it is

required to change the contents of concession agreement of each SPC.

(3) Effect of Local Government on the Project

Involvement of local government chief executive is confirmed effective on the national government for

projects realisation.

(4) Self-paying System with Revenue Pooling

The self-paying system with revenue pooling is the scheme that debts of several toll road projects are unified

and to be redeemed from all toll revenues of relevant roads. The pooling system could be applicable to the

existing and newly constructed toll roads in Makassar whilst the final decision shall be made by the Minister. It

is to note that the principle of the pooling system is to share the toll revenues of profitable roads with the rest of

roads including unprofitable roads. In other words, the system does not intend to consolidate the term of

7-3

redemption.

(5) Expansion of Existing Toll Road

Toll road operators are not required a bid tendering for the project term extension or tariff rate revision.

Therefore, it seems to be possible for Japan Expressway International Company (JEXWAY) to participate in

O&M business, providing that the JICA Investment and Loan is utilised for the construction.

7-4

7.2 Makassar City

The mayor of Makassar, who was elected in May 2014, had been in charge of the city planning and therefore

familiar with the JICA Mamminasata Plan. Through the survey, it was confirmed that the Makassar urban

development plan, which is based on the Smart and Eco City scheme, is integrated into the urban space plan.

Makassar City showed its positive attitude at a conference to carry out the project in cooperation with the

Province of South Sulawesi, the local agency of national government, and the local toll road operators. This

fact seems to improve the project feasibility.

If the City of Makassar initiates the project, it will be required to establish a company to sponsor the SPC.

The City and Bina Marga are in the process of discussion for the application of business license (the harbour

route: Maros – Makassar – Takalar, route length 50km) through the Province of South Sulawesi.

(1) Summary of Conference held by Makassar City in October 2014

The followings were clarified at the conference held in October 2014 (attendee: Mayor of Makassar,

Department of City Public Works / Development Plan / Transport / Plan, Study Team: ST).

High priority is put on the toll road construction which will connect the airport, the waterfront area and the

city centre (total length 20 kilometres).

The planning route of Phase 2 needs to be revised from the perspectives of land acquisition and urban

planning.

It is also possible to regard the mayor of Makassar as an initiator of the project for the establishment of a

SPC sponsored by the adjacent prefectures, the current toll road operator PT Margautama Nusantara

(MUN) and Japanese expressway companies

(2) Summary of Conference held by Makassar City in November 2014

Attendees at the conference held in November 2014 were Mayor of Makassar, Department of City Public

Works / Development Plan / Transport / Plan, Study Team (ST).

ST explained the Makassar Toll Road Project which consists of two phases and the followings were discussed.

The Mayor agreed that Phase 1 is to be all Viaduct and ST mentioned that this option needs toll rate to be

raised and revenue sharing with current SPC / toll road operator.

The Mayor requested ST to sturdy further both options (A & B) in Phase 2, as both routes need to be

developed. He also requested ST studies viaduct structure for Option A in order to reduce land acquisition

(viaduct along Jeneberang river does not need land to acquire). ST has replied affirmative to those

requests.

The Mayor agreed to form up team with Japanese side and MUN for applying PPP project in Phase 1 and

2 to PU and Bappenas.

Regarding the land acquisition and resettlement, the Mayor explained that for unsolicited project the land

acquisition and resettlement will be taken care by investor, for solicited project it will be by Government

(Bina Marga).

7-5

The Mayor informed the total budget for all phases, which have been acknowledged by Mr. President and

Governor, based on the assumption of 70% of land owned by Government.

The Mayor also appointed Mr. Irwan (Mayor’s Consultant), who prepared Makassar Spatial plan and

requested ST to obtain whatever the information about the Plan from him.

Makassar Spatial Plan is shown below for reference.

Figure 7.2-1 Spatial Plan of Makassar City

Source: Makassar City

7-6

7.3 Local Toll Road Company

(1) Relationship with the City of Makassar

Toll road company, MUN intends to use traffic information provision utilising optical cables, CCTV and

probe technology, based on the comprehensive cooperation agreement (Memorandum of Understanding)

with Makassar City related to traffic information provision technologies.

(2) Influence of Development along Route

It was found that MUN, who is an operator of local toll-roads, is collecting information related to the new

port development project and the industrial park development project. The former is being promoted by

Pelindo IV, and the latter by the Parangole Indah.

(3) Introduction of ITS Technologies

Target section of the toll road project is an extension of the existing toll-road which had been managed by

the SPC whose major sponsor is MUN. Seamless road operation and traffic management can be expected

there including the introduction of ITS technologies. Actually, traffic congestion and journey time

information service will be provided by utilising VMSs. The VMSs will be installed near interchange of

the road, and the construction will be started in 2015.

(4) Operation and Maintenance

MUN has an continuous experience of operating BMN, since 1998 opening, and JTSE, since 2008

opening in Makassar through each SPC. The average daily traffic volumes (AADT) of the roads in 2013

are 54,000 and 36,000 number respectively. They have less traffic accident, and in year 2014 no traffic

accident has been reported up to October.

In addition to cash payment, “Touch & Go”, the payment system utilizing contactless IC cards, has also

been operated at their toll gates. Considering these experiences, the ETC system, whose interactive

communication between road-side antenna and in-vehicle equipment enables payment without stopping at

toll gate, can alternatively be installed and operated there to deal with the increasing traffic demand.

Their traffic management is carried out with simple management system with minimum operation

vehicles, equipment and staffs. Improvement of user service will be done in near future by upgrading ITS

system. For example, increasing CCTV cameras and new installation of variable message boards along

toll roads and arterial roads. Exclusive expressway police is deployed along the toll roads as well.

As for maintenance, existing expressway consists of earthwork section mainly, they have sufficient

management system on cleaning vegetation and pavement maintenance. They have less bridges longer

than 50m in existing toll roads, except the Tallo bridge and some in junction. Their standards for

inspection and maintenance is based on that of PT Jasa Marga which is the biggest expressway company

in Indonesia. SPC outsources maintenance works and has certain member for planning of inspection and

maintenance. With these situation, it is supposed to be able to carry out proper maintenance works by

some reinforcement of current management system.

7-7

7.4 Information Sharing with Relevant Studies

“The Survey of Intelligent Transport System (ITS) Introduction into Makassar” supported by the Ministry of

Economy, Trade and Industry (METI) of Japan is currently in practice. The main objective of the project is to

realise energy conservative and low GHG society in the road traffic management field, and to create the

sustainable ITS business scheme, by introduction of low-cost ITS system into Indonesia.

The project policy is to mitigate the chronic traffic congestion on the local road network by encouraging usage

of the toll road, to improve energy, and to reduce traffic accidents in the area by effective traffic information

provision. The traffic information provision will be made by utilising traffic data observed by both fixed traffic

detectors and GPS probe sensors.

In addition, “the Survey of the Expansion Project of Makassar Airport associated with the Reestablishment of

Indonesian Airport Network”, which is also supported by METI, describes that the expansion can contribute to

sustainable development of Indonesian air transportation because current chronic congestion at Sukarno Hatta

Airport could be a bottleneck for whole of the Indonesian air transportation network and economic growth.

More specifically, the survey aims to improve the accessibility to local airports in East Indonesia by positioning

Makassar Airport as the regional hub airport.

By utilising the information provided by the reports above, the toll-road project can be said to contribute to the

comprehensive development of Makassar, and to strong economic development of whole of the East Indonesia.

7-8

7.5 Government Guarantee Policies

In recent years, the Government of Indonesia has been implementing several government guarantee policies for

PPP projects such as Indonesia Infrastructure Guarantee Fund (IIGF) and Viability Gap Fund (VGF) to

promote private companies to invest in the PPP infrastructure projects. These policies are as follows.

(1) Indonesia Infrastructure Guarantee Fund

The Indonesia Infrastructure Guarantee Fund (IIGF) is an independent State Owned Enterprise (SOE) 100%

owned by the Government of Indonesia. IIGF was established in 2009 to provide government guarantees for

infrastructure Public-Private Partnership (PPP) projects in Indonesia.

Since 2009, IIGF has been fundraising 100 ~ 150 million USD every year to enhance the trust from private

companies and the total amount of this fund reached to 470 million USD at the end of 2012. The fund will be

increased to 870 ~ 970 million USD in 2014. The advantage of the private company is to mitigate the private

sector’s exposure to the risk of Government actions on specific PPP contracts or agreements. On the other

hands, the government could expect to attract more positive investment from the private company in PPP

project due to the reduction of their risks. As a result, the quality of proposal from the private company

becomes better.

(2) Viability Gap Fund

Viability Gap Fund (VGF) is a fiscal governmental support from the Ministry of Finance, established on

December 21, 2012. The purpose of VGF is to support the PPP projects, which are not financially feasible but

economically feasible, by providing the financial supports as a part of the construction cost to increase the

financial viability of the projects.

Since a VGF program is controlled by the Ministry of Finance and implemented in accordance with the

Minister’s regulations, it is necessary to follow these criteria below.

1) Form: Cash to the project as a part of construction cost. (Maximum: 50% of the construction cost)

2) Timing: Mentioned in the PPP contract. Supposed to pay by installments during construction period

and/or operation period.

3) Cooperation with local government: Possible to provide from both central and local government

regarding regional cooperation project.

Chapter 8 Technical Advantages of

Japanese Companies

8-1

8.1 Forms of Participation by Japanese Companies

8.1.1 Project Schemes and Forms of Participation

The business scheme diagram in the case of BOT or SBOT, including construction of business facilities is

generally as follows;

Figure 8.1-1 Business Scheme of Toll Road PPP Projects

Source: Study Team based on the JEXWAY’s Web Site

In this business scheme, there are five ways to participate a PPP project as the table below and the enterprises

may participate from expressway companies, trading companies, consultants, major construction companies,

electrical manufacturers and financial institutions. Meanwhile, the case that the expressway company itself to

carry out toll road PPP project as a special purpose company (SPC) is excluded because such is not practical.

Table 8.1-1 Concept of Japanese Participating Enterprises

Form of Participation Concept of Japanese Participating Enterprises Assumable Japanese Participant Business

Category

Sponsor

Expressway companies are able to contribute not only for

financial aspect but also with their experience and capability of

management construction, operation and maintenance.

Moreover, expressway company can be both sponsor and O&M

operator as well as major construction company can be both

sponsor and DB contractor. For mere investment opportunity,

financial institution can also be a sponsor.

Trading companies/

Expressway companies/

Major construction

companies/ Financial

institutions etc.

Lender Japanese financial institutions can be a lender of PPP project for

seeking mere investment opportunity.

Financial institutions

Design and

Construction Company

A major consultant and construction company can participate on

design and construction for the project.

Consultants and major

construction companies etc.

Equipment Provider

It is expected for Japanese enterprise to participate as a provider

of equipment / facilities on ITS/TEC etc.

This equipment in the fields which Japan has the advantage will

be developed with considering circumstances of Indonesia.

Trading companies/

Electrical manufacturers

etc.

O&M operator Participation by forming a consortium with an Indonesian

expressway operator or joint venture is anticipated.

Expressway companies etc.

Source: Study Team in reference to “the Study on the Second Jakarta-Cikampek Toll-Road Project in the Republic

of Indonesia”, December 2012

8-2

8.1.2 Collaboration with Local Enterprises

Because new expressway is an extension of the existing toll road (BMN), it is effective to operate both

expressways integrally. Therefore the SPC for new expressway is expected to be jointly invested by PT

Margautama Nusantara (MUN) and other Indonesian and Japanese sponsors.

Japanese sponsors would be a consortium headed by the Japan Expressway International Company

(JEXWAY), jointly invested by Japanese expressway companies, and others. On the other hand, the

Indonesian sponsors would be MUN and others as well. For the balance of the two consortiums, it is

considered ideal that two hold almost half of the total equity each. By equity ratio of the Indonesian

consortium to be slightly larger, it is assumed to have the initiative. If it is necessary for Makassar City to be an

equity holder as the initiator of the project application, it is conceivable to join Indonesia sponsors.

Figure 8.1-2 Image of Sponsors of Project

Source: Study Team

8-3

8.2 Advantages of Japanese Companies in Implementation of Project

8.2.1 Expressway Technologies

Japanese expressway companies (NEXCO) have executed construction, operation and maintenance for more

than 50 years. Their business field is comprehensive and includes public consultations and relations before

construction, geological survey, design, cost estimation of target price, bidding, construction, inauguration,

operation and maintenance.

Some expressways they operate are in urban area which has many infrastructure and heavy traffic, therefore

the expressways have many structures such as viaducts, bridges and tunnels. The other expressways in

mountainous area go through mountains and valleys with bridges and tunnels. The experience to construct,

operate and maintain those expressways in severe conditions requires higher technology and know-how.

Such technology and know-how have a good reputation in Indonesia and are expected to contribute to solve

their current and/or future problems.

For example, pavement damage caused by illegal over loaded vehicles is remarkable in Indonesia, and

therefore countermeasure against over loaded vehicles, which is carried out along Japanese expressways

under NEXCO control with using apparatus for weighing axils and vehicles or crackdown at an expressway

entrance is one of their needs. In addition, aging issue of road structures is recognized in Indonesia gradually,

and then it is possible to support Indonesia’s road operators to improve their maintenance efficiently and

effectively by applying advanced NEXCO’s technology such as non-destructive inspection methods etc.

Japanese expressway companies have regularly dispatched JICA experts on road administration or road

technology to many countries for long years through the Ministry of Land, Infrastructure, Transport and

Tourism or JICA. The contribution is acknowledged by the countries including Indonesia. In addition to the

capacity of each expert, one of NEXCO’s strengthen is that NEXCO can gather knowledge and knowhow

from whole organization including research and development institute. Such contribution are expected to this

project, as well.

8.2.2 Construction of Expressway

The construction of expressways in Japan by Nippon Expressway Companies (NEXCO) follows the

construction procedure shown in the figure below. During this process, in-house NEXCO engineers

themselves totally supervise and carry out except for some process such as design and construction etc. which

are outsourced. This enables the NEXCO to monitor the overall status of the project including the

construction process and the surrounding environment at the construction site, and this facilitates the

subsequent operations at the management stage.

8-4

Figure 8.2-1 Construction Flow

Source: JEXWAY

(1) Bridge

Japan Highway (JH) was a leader in bridge technologies in Japan, and NEXCO that carry on JH experiences

have pursued appropriate technical development in the construction of bridges, taking into consideration a

variety of bridging conditions. These efforts have been characterized by the promotion of continuous spans,

adoption of the mode of elevated bridges above roads, awareness of costs, consideration for ease of

construction, consideration for scenic appearance, and feedback from the maintenance stage. Some of the

major technologies that have been employed recently are shown below.

1) Superstructures

Measures to ensure durability and to reduce costs and construction labor requirements

RC: PRC structure

PC: External tendons, precast segment construction method, PC box girder bridges with

struts, corrugated steel web, steel truss web

Steel bridge: plate girder + PC slab

2) Substructures and Foundation Works

Reduction of construction labor requirements (concrete composite structure bridge piers)

Economic efficiency, ease of construction, environmental preservation (takewari “bamboo cut”

approach)

3) Seismic Design

Design method: Non-linear dynamic analysis of horizontal load bearing capacity during earthquake

(after 1995 Great Hanshin-Awaji Earthquake)

Bearings: Use of reaction force dispersing bearings and base isolation bearings

Total management from planning design land acquisition to construction works

8-5

4) Other

Use of rubber bearings and modification of expansion devices (buried joints and extension slabs),

waterproofing of slabs, etc.

(2) Pavement

Test construction of porous asphalt pavement began in 1989. In addition to anti- splash performance, this

pavement reduces noise, and to provide optimal service to customers, NEXCO has used it as the standard

type of pavement for surfacing work since January 1998. However, as this type of pavement stores rainwater

inside the body of the surface layer and discharges it from the top of the base layer, damage in the form of

detachment of the base layer compounds that was not seen with conventional pavement has occurred in some

cases. Accordingly, a Falling Weight Deflectometer (FWD) was developed to measure deflection, and

soundness evaluations are conducted on a regular basis.

Figure 8.2-2 Effect of Porous Asphalt Pavement

Source: West Nippon Expressway Company

(3) Earth Work

The technology development for earth work has also been carried out like bridge technology. NEXCO has

much example, such as slope stability for construction in mountainous areas and countermeasures for soft

ground in sea side, river bank and cultivation areas. Recently, new technology has been introduced as to

improve quality control by applying a research instrument with radioisotope technology for sure embankment

consolidation status management.

(4) Quality Control and Safety Control

To construct faultless structures within the contract term, quality control and safety control are important. If

an accident occurs at a construction site, it may cause not only loss of precious human life but also delay of

the opening to the public. Moreover, low quality structures may endanger users, and cause increasing life

cycle cost for repair or replacement. Thus, NEXCO executes as following countermeasures:

1) Quality control

A construction project supervisor, who has much knowledge on construction, is dispatched to each

construction site. The contractor completely supervises all construction work and countermeasures that

are immediately executed based on instructions and condition changes.

8-6

In addition to the daily inspection, intermediate inspections will be executed if needed. For example,

bridge piers and culvert boxes are to be inspected before backfilling, as these structures can’t be

inspected after construction and are important for the operating term.

2) Safety Control

As one of the accident prevention actions, hard and soft safety controls are executed by civil and bridge

construction work. The following safety measures are instituted for bridge construction:

Fall-down prevention

Measures to prevent accidents in which pieces fall off

Appointment of construction supervisor

Figure 8.2-3 Quality Control and Safety Facilities


8.2.3 Maintenance of Expressway

To make sure that expressways remain safe, secure and comfortable for use over a long period of time,

NEXCO conducts detailed inspections in an efficient manner and performs appropriate repair and

reinforcement based on the results of these inspection.

NEXCO executes large-scale improvement such as replacement of bridge slabs and reconstruction of

pavement aiming to keep the expressway assets in good condition with considering the new expressway

network construction in order to respond environmental changes such as deterioration of structure, large size

of vehicles, and increases in traffic.

(1) Inspections

In order to quickly detect road dangers and ensure a safe and comfortable driving environment, and to

prevent injury to road users, inspections of road surfaces, slopes, bridges and other road structures in addition

to facility and equipment are conducted on daily and periodic basis. Moreover, in order to make inspections

more efficient and devise preventive maintenance measures, the achievements of nondestructive inspections

and other technical development efforts such as those listed below are employed.

Pavement inspection using high-speed road measurement vehicles

Inspection of concrete structures using infrared cameras

8-7

Tunnel inspections using tunnel lining surface measurement technologies

Slope displacement measurement using digital cameras etc.

“NEXCO-West USA Inc.” (hereafter “NEXCO-USA”), the wholly-owned subsidiary of NEXCO-West in the

United State, is providing inspections for concrete bridges using infrared camera system and garnering

immense praise, which are provided in details in Chapter 8.2.4.

(2) Maintenance and Repair

To ensure the continued provision of safe, secure and comfortable road environments, specific locations that

are determined to require repair due to the results of the inspection process are repaired in an efficient and

effective manner, taking into account the degree of damage to each of the target structures, the cause of the

damage and the degree of importance of crossing structures, in order to prevent injury to third parties.

Cleaning, greenery planting and grass cutting, accident restoration work, etc.

Paving, erection of safety barriers, bridge repair, facility, equipment and other work

Inspection and maintenance of bridges, slopes, machinery and electrical equipment

During accident recovery work, operations are conducted promptly in order to secure road traffic at the

earliest possible time. Information on weather conditions is also provided to advise drivers to exercise

caution.

When conducting repair work, intensive work operations (conducting multiple work operations during the

same period of time in order to greatly reduce the period of time that traffic restrictions are in effect) and the

closing of roads at night (after giving adequate advance notice, in order to conduct work operations at night

when there is little traffic) are implemented as needed.

(3) Improvement and Disaster Prevention Measures

To construct a sound road network that can withstand disasters, large-scale earthquake disaster mitigation

measures are conducted. Based on the experience of the Great Hanshin-Awaji Earthquake of 1995, bridge

piers for which the pre-1979 standards of the Specifications for Highway Bridges were applied are at risk of

collapsing or otherwise sustaining major damage in the event of a large-scale earthquake. For this reason,

these bridge piers have been seismically retrofitted one after another since 1995, and the target bridge piers

will be completed by the end of 2015.

(4) Use of Intelligent Transport Systems

Intelligent transport systems (ITS) use information technologies to link people, vehicles and the road in order

to reduce accidents, increase safety and reduce congestion. They are designed to ensure a smooth flow of

traffic and make road transport easy, convenient and comfortable. They also reduce CO2 emissions and

therefore ease the impact on the environment. These systems are used by NEXCO in ETC (Electric Toll

Collection System) and following scenes.

8-8

1) Safe Driving Support

In order to ensure the smooth flow of traffic, information is collected by devices that are installed on the

expressway. Overall control and processing of this information is conducted at the traffic control center, and

various types of information are provided to expressway users.

Information collection: Vehicle detection equipment, meteorological equipment, CCTV cameras, traffic

management patrols, emergency telephones

Information management: Traffic control centers, facility control centers

Information provision(content): Various types of general information (degree of congestion at toll gates,

on the main road and at rest stop facilities; driving distance to various locations; speed limits in

accordance with road conditions; detours, etc.) and information on accidents and obstructions, lane

closures, etc.

8.2.4 Non Destructive Inspection Technologies

While deterioration of infrastructure is social problem, NEXCO has been developing and installing various

new inspection methods using non-destructive technologies.

In this Chapter, non-destructive inspection methods which NEXCO-USA can provide for concrete bridge

inspection are described.

(1) Infrared Camera System

This system can locate possible delaminations and spalling of concrete through temperature variations on a

concrete surface by analyzing images taken by a high-end infrared camera using a originally developed

software. This system is developed and put it to practical use by NEXCO-West Engineering Shikoku.

Figure 8.2-4 Infrared Camera System

Infrared Camera Thermal Image (left) and Analyzed Image in Display

Truck with Loading Devices including Infrared Camera Analyzed Image Superimposed on Photos


8-9

(2) Deck Top Scanning System (DTSS)

This system is to detect cracks on concrete surface by analyzing visible image taken by line scan camera*1.

The detection accuracy is 0.2mm. This is also developed by NEXCO-West Engineering Shikoku.

*1: This camera has a single row of pixel sensors.

The lines are continuously fed to a computer that joins them to each other and makes an image.

Figure 8.2-5 Deck Top Scanning System

Line Scan Camera Taking Road Data

Truck with Loading Devices including Line Scan Camera

Analyzed Output (cracks)


(3) Auto Camera System (ACS)

The device takes photographs of a target using a digital camera on a platform which can automatically move.

By the computer control, it divides the object automatically in the meshes, then sequentially taking each frame

while changing the direction of the camera automatically. Utilizing a database of cracks investigated in the past,

cracks are examined by analyzing the images taken.

Figure 8.2-6 Auto Camera System

Devices Target Surface Sectioned into Meshes


8-10

(4) High Definition Video (HDV) System

A mobile system, consisting of three high definition video cameras and advanced software, is able to identify

and quantify cracks on a concrete surface. After processing the movie and past them together, an image of the

inspection target is obtained. The system can examine the cracks using database of past crack investigation as

well as ACS in the above (3).

Figure 8.2-7 Video Camera System

Devices Pasted together

Output of Inspection


8.2.5 Precast/Pre-stressed Concrete Member

The use of precast/pre-stressed concrete member manufactured by a company which is partly funded by

Japanese nationals is increased gradually in major projects in Jakarta. In this study, it is confirmed that the

company can supply their product to the concerned expressway project in Makassar, if the expressway have

certain viaduct section.

8-11

Figure 8.2-8 Plant Manufacturing Precast/Pre-stressed Concrete Member by Japanese Company

Source: Study Team

Figure 8.2-9 Road with Precast/Pre-stressed Concrete Member in Jakarta

Source: Study Team

8.2.6 Other Precast Concrete Products

A company manufacturing precast concrete product in Fukuoka Prefecture of Japan, will establish their plant

in an industrial park in the suburb of Makassar City. It seems possible for them to supply small-scale products

such as U-shaped drains and pipes etc.

8-12

8.3 Measures to Promote Japanese Companies for the Project

In this chapter, measures to promote Japanese enterprises gaining contracts as a sponsor of a PPP road project

is described.

In addition, for all measures, it is important to consider well the confidentiality of the information and to have

non-disclosure agreement appropriately then make all related people in both Indonesia and Japan careful.

(1) Offering Unsolicited Project

Referring to Presidential Regulation, No. 13/2010, compensations for the one who proposed a unsolicited

project are two as follows:

10% bonus: Maximum 10% bonus would be added to the normal evaluation score

Right to match: Right to offer alternative proposal such as bidding price etc. which may break the best

proposal just before the award

With this compensation, the proposed company can have strong bidding position.

The above is based on the “PPP Handbook for Republic of Indonesia”, January 2013, JICA.

(2) Collaboration with Indonesian Companies

Forming SPC with Indonesian companies such as MUN enables the study team to have effective discussions

with the related Indonesian Government etc. It is essential to reflect real local needs. Proper reflection of

local needs is significant for infrastructure development which reaches directly to the contribution for

Indonesian people and its nation.

Moreover, collaboration with Indonesian enterprises also is able to make the operation of the new expressway

more efficient and labor-saving.

(3) Prerequisite Condition for Prequalification

Coping with aging infrastructure is a global issue in recent years. Proposed expressway includes viaduct and it

would be heavy traffic in the future. Therefore, it is important to include conditions such as experience on

operating and maintaining aged-bridge-section or heavy traffic section etc. as prerequisite condition for the

prequalification of the bidding. Japanese expressway company can contribute to the aging issue with their

experience, technology and know-how.

Appendix

1. Site Survey

2. Draft Plan

3. Current Condition of Roadsides (Environmental and Social Considerations)



6. Meeting Records

1. Site Survey

(1) Pettarani Street

(2) Rappocini Street

(3) Lanto Daeng Pasewang Street

S I

T E

S U

R V

E Y

At

Mak

assa

r C

ity.

1. P

etta

rani

Str

eet

2. R

appo

cini

Str

eet

3. L

anto

Dae

ng P

asew

ang

Str

eet

S E

L A

T

M A

K A

S S

A R

T E

L U

K

B O

N E

MA

KA

SS

AR

Pa

rep

are

Pin

rang

Pol

ewal

i

Ma

mas

a

En

reka

ng

MA

MU

JU

Jen

ep

ont

o

Pa

lopo

Ra

nte

pao M

aka

le

Se

laya

r

EW

S

1. P

etta

rani

Str

eet

P6

P5

P2

80

0M6

5M5

0M1

00M

PE

TT

AR

AN

I S

TR

EE

T

Dg.

SIR

UA

ST

RE

ET

UR

IP S

UM

OH

AR

JO S

TR

EE

T

(CH

=1.

995)

(CH

=1.

195)

P3

(CH

=10

0)(C

H=

150)

FLY

OV

ER

TO

L R

OA

D

SIT

UA

TIO

N M

AP

SC

AL

E 1

: 4

00N

98

0M

P4

P1

(CH

=21

5)(C

H=

0)

P11

P10

P9

P8

P7

P6

(CH

=4.

145)

(CH

=3.

945)

(CH

=3.

745)

(CH

=3.

145)

(CH

=2.

645)

(CH

=1.

995)

SULTAN ALAUDDIN STREET

BO

ULE

VA

RD

ST

20

0M

N

20

0M6

00M

50

0M6

00M

15

0M

SIT

UA

TIO

N M

AP

SC

AL

E 1

: 4

00

PE

TT

AR

AN

I S

TR

EE

T

3.5

3.7

1.5

10.6

3.2

10.4

1.0

ME

DIA

N

1.0

D:\D

ata

kuuu

\Ker

ja.C

om\Y

odya

kary

a\P

RO

YE

K 2

014\

PE

RE

NC

AN

AA

N T

OL

MA

KA

SS

AR

\FO

TO

\DS

C_

0194

.jpg

D:\D

ata

kuuu

\Ker

ja.C

om\Y

odya

kary

a\P

RO

YE

K 2

014\

PE

RE

NC

AN

AA

N T

OL

MA

KA

SS

AR

\FO

TO

\DS

C_

0197

.jpgA

. P

ET

TA

RA

NI

ST

RE

ET

CR

OS

S S

EC

TIO

N-P

1

30.4

CR

OS

S S

EC

TIO

N P

1S

CAL

E 1

: 200

1.1

1.0

7.1

0.4

15.5

1.1

11.9

1.8

ME

DIA

N

41.8

A.

PE

TT

AR

AN

I S

TR

EE

T

CR

OS

S S

EC

TIO

N-P

2

1.9

CR

OS

S S

EC

TIO

N P

2S

CAL

E 1

: 200

14.3

2.0

2.4

12.8

2.0

ME

DIA

N

33.5

CR

OS

S S

EC

TIO

N-P

3

A.

PE

TT

AR

AN

I S

TR

EE

T

CR

OS

S S

EC

TIO

N P

3S

CAL

E 1

: 200

1.6

8.6

0.5

0.5

11.6

7.8

2.6

6.9

ME

DIA

N40.1

CR

OS

S S

EC

TIO

N-P

4

A.

PE

TT

AR

AN

I S

TR

EE

T

CR

OS

S S

EC

TIO

N P

4S

CAL

E 1

: 200

3.0

9.8

2.0

1.8

ME

DIA

N

7.8

0.4

10.0

8.2

0.4

CR

OS

S S

EC

TIO

N-P

5

A.

PE

TT

AR

AN

I S

TR

EE

T

43.4

CR

OS

S S

EC

TIO

N P

5S

CAL

E 1

: 200

3.0

2.1

1.4

ME

DIA

N

16.6

19.3

CR

OS

S S

EC

TIO

N-P

6

A.

PE

TT

AR

AN

I S

TR

EE

T

42.4

CR

OS

S S

EC

TIO

N P

6S

CAL

E 1

: 200

3.0

2.4

1.8

ME

DIA

N

17.7

8.2

7.9

0.5

CR

OS

S S

EC

TIO

N-P

7

A.

PE

TT

AR

AN

I S

TR

EE

T

41.4

CR

OS

S S

EC

TIO

N P

7S

CAL

E 1

: 200

3.0

2.4

ME

DIA

N

8.1

8.1

9.5

0.4

10.7

0.4

CR

OS

S S

EC

TIO

N-P

8

A.

PE

TT

AR

AN

I S

TR

EE

T

1.9

2.7

47.2

CR

OS

S S

EC

TIO

N P

8S

CAL

E 1

: 200

1.3

3.1

ME

DIA

N

7.9

7.8

10.2

0.4

7.6

CR

OS

S S

EC

TIO

N-P

9

A.

PE

TT

AR

AN

I S

TR

EE

T

2.5

2.6

3.0

48.0

1.6

CR

OS

S S

EC

TIO

N P

9S

CAL

E 1

: 200

5.8

20.2

ME

DIA

N

12.1

1.2

0.7

2.2

1.6

3.0

CR

OS

S S

EC

TIO

N-P

10

A.

PE

TT

AR

AN

I S

TR

EE

T

46.8

CR

OS

S S

EC

TIO

N P

10S

CAL

E 1

: 200

3.0

ME

DIA

N

14.5

1.1

1.0

CR

OS

S S

EC

TIO

N-P

11

A.

PE

TT

AR

AN

I S

TR

EE

T

16.7

2.0

1.7

39.9

CR

OS

S S

EC

TIO

N P

11

SC

ALE

1 : 2

00

2. R

appo

cini

Str

eet

R4

R3

CH

0(C

H=

1.10

0)(C

H=

400)

60M

1.1

00M

40

0M

RA

PP

OC

INI

ST

RE

ET

N

PE

TT

AR

AN

I S

TR

EE

TV

ET

ER

AN

S

SIT

UA

TIO

N M

AP

SC

AL

E 1

: 4

00

2.0

1.6

1.6

1.0

RA

PP

OC

INI

RA

YA

ST

RE

ET

CR

OS

S S

EC

TIO

N-R

3

AS

PH

AL

T P

AV

EM

EN

T

DIT

CH

DIT

CH

CL

5.8

12.

0

2.9

2.9

CR

OS

S S

EC

TIO

N R

3S

CA

LE 1

: 15

0

1.5

1.8

CL

2.3

1.0

DIT

CH

AS

PH

AL

T P

AV

EM

EN

T

DIT

CH

3.1

3.1

12.

8

RA

PP

OC

INI

RA

YA

ST

RE

ET

CR

OS

S S

EC

TIO

N-R

4

CR

OS

S S

EC

TIO

N R

4S

CA

LE 1

: 15

0

3. L

anto

Dae

ng P

asew

ang

Str

eet

DP

2(C

H=

400)

DP

1(C

H=

0)

DA

DI

HO

SP

ITA

LLA

NT

O D

g. P

AS

EW

AN

G S

TR

EE

T

50

0M4

00M

40M

MA

PP

AN

YU

KK

I S

TR

EE

T

SIT

UA

TIO

N M

AP

SC

AL

E 1

: 4

00

RA

TU

LAN

GI

ST

RE

ET

KA

SU

AR

I S

TR

EE

T

SA

HID

HO

TE

L

KA

SU

AR

I S

TR

EE

T

CR

OS

S S

EC

TIO

N-P

1

0.70

.62

.33

.90

.62

.43

.9

14.

4

AS

PH

AL

T P

AV

EM

EN

T

DIT

CH

DIT

CH

CL

CR

OS

S S

EC

TIO

N P

1S

CA

LE 1

: 15

0

1.0

3.2

6.3

2.0

6.3

2.0

LA

NT

O D

G. P

AS

EW

AN

G

CR

OS

S S

EC

TIO

N-P

2

AS

PH

AL

T P

AV

EM

EN

T

DIT

CH

DIT

CH

CL

20.

8

CR

OS

S S

EC

TIO

N P

2S

CA

LE 1

: 15

0

2. Draft Plan

(1) Phase 1



PLA

N

PHA

SE1

PHA

SE2

Opt

ionA

PHA

SE2

Opt

ionB

0

1

2

3

4

5

6

7

8

9

10

KEY PLAN

Phase１ 1/4

A A

JL.URIP SUMOHARJO

ＩＣ 0

500m

400

300

200

100

50

L=0.5km

【Phase２

】

At-Grade

L=1.8km

Viaduct

L=3.3km

Embankment

L=0.3km

【Viaduct Type】

【Viaduct Type】

At-Grade Type

Fly Over

Viaduct Type

Profile

ＰＬ

ＡＮ

Seashore

Airport

Airport

Seashore

Seashore

12

10

11

13

14

15

16

17

18

19

20

21

22

23

24

Phase１ 2/4

A

B

JL.BOULEVARD PANAKUKKANG

0500m

400

300

200

100

50

Embankment

L=0.25km

L=1.2km

Viaduct

A

At-Grade

L=1.8km

Viaduct

L=3.3km

【Viaduct Type】

B

At-Grade Type

Viaduct Type

Profile

KEY PLAN

ＰＬ

ＡＮ

Seashore

Airport

Airport

Seashore

Seashore

23

24

25

26

27

28

29

30

31

32

33

34

35

36

37

BC

BC

JL.HERTASNING

JL.RAPPOCINI RAYA

JL.BLOCK E

0500m

400

300

200

100

50

Phase１ 3/4

L=1.2km

Viaduct

Embankment

L=0.25km

At-Grade

L=0.7km

Viaduct

L=3.3km

【Viaduct Type】

At-Grade Type

Profile

At-Grade Type，

Viaduct Type

Viaduct Type

Viaduct

L=0.9km

【Viaduct Type Phase２

】

Phase２

KEY PLAN

ＰＬ

ＡＮ

Seashore

Airport

Airport

Seashore

Seashore

37

38

39

40

41

42

ＰＬ

ＡＮ

C

JL.SULTAN ALAUDIN

0500m

400

300

200

100

50

Phase１ 4/4

C

At-Grade

L=0.7km

ViaductL=0.9km

【ViaductTypePhase２】

KEY PLAN

Seashore

Airport

Airport

Seashore

Seashore

Phase２【Option A】 1/6

0500m

400

300

200

100

50

JL.HM DAENG PATOMPO

Embankment

L=3.0km

ＩＣ

L=0.5km

KEY PLAN

ＰＬ

ＡＮ

Seashore

Airport

Airport

Seashore

Seashore

0500m

400

300

200

100

50


Embankment

L=3.0km

ＰＬ

ＡＮ

KEY PLAN

Seashore

Airport

Airport

Seashore

Seashore

0500m

400

300

200

100

50


Viaduct

L=0.7km

Embankment

L=3.0km

Embankment

L=2.5km

ＰＬ

ＡＮ

KEY PLAN

Seashore

Airport

Airport

Seashore

Seashore

0500m

400

300

200

100

50


Embankment

L=2.5km

ＰＬ

ＡＮ

KEY PLAN

Seashore

Airport

Airport

Seashore

Seashore

39

40

41

42

0500m

400

300

200

100

50


ＩＣ

L=0.5km

Viaduct

L=0.05km

Embankment

L=2.5km

JL.SULTAN ALAUDIN

Embankment

L=0.25km

ＩＣ

L=0.5km

（At-Grade

L=0.45km）

ＰＬ

ＡＮ

KEY PLAN

Seashore

Airport

Airport

Seashore

Seashore

25

26

27

28

29

30

31

32

33

34

35

36

37

38

39

0500m

400

300

200

100

50


ＩＣ

L=0.5km

JL.RAPPOCINI RAYA

（Embankment

L=0.25km）

JL.HERTASNING

JL.BLOCK E

（Viaduct

L=1.2km）

ＰＬ

ＡＮ

KEY PLAN

Seashore

Airport

Airport

Seashore

Seashore

W=60

W=25

Phase２【Option B】 1/4

JL.HM DAENG PATOMPO

0500m

400

300

200

100

50

ＩＣ

L=0.5km

Embankment

L=0.25km

Viaduct

L=0.25km

Viaduct

L=3.1km

JL.SAM RATULANGI

KEY PLAN

ＰＬ

ＡＮ

Seashore

Airport

Airport

Seashore

Seashore

0500m

400

300

200

100

50


Viaduct

L=3.1km

JL.VETERAN SELATAN

KEY PLAN

ＰＬ

ＡＮ

Seashore

Airport

Airport

Seashore

Seashore

0500m

400

300

200

100

50


Viaduct

L=3.1km

KEY PLAN

ＰＬ

ＡＮ

Seashore

Airport

Airport

Seashore

Seashore

24

25

26

27

28

29

30

31

32

0500m

400

300

200

100

50


Viaduct

L=3.1km

ＪＣ

Ｔ

ΣL=1.8km

KEY PLAN

ＰＬ

ＡＮ

Airport

Seashore

Seashore

Seashore

Airport

3. Current Condition of Roadsides (Environmental and

Social Considerations)



Res

ettl

emen

t Apa

rtm

ent

Ele

ctri

c fa

cili

ty

Att

ache

d ap

artm

ent

of e

lect

ric

faci

lity

Res

iden

ce

第ニ

期区

間A案

1/7

Op

tion

A o

f P

has

e 2

1/7

Cu

rren

t C

ond

itio

n o

f R

oads

ides

Arc

hae

olog

ic M

use

um

Arc

haeo

logi

c si

te

incl

udin

g “B

ente

ng

Som

ba

Opu

” of

Gow

a K

ingd

om i

s pr

eser

ved

and

disp

laye

d. T

here

is

a

trad

itio

nal a

rchi

tect

ure

in R

OW

Res

iden

ce

GO

WA

DIS

CO

VE

RY

PA

RK

Am

usem

ent

park

op

erat

ed

by

priv

ate

com

pany

.

Res

iden

ce

第ニ

期区

間A案

2/7

Op

tion

A o

f P

has

e 2

2/7

Cu

rren

t C

ond

itio

n o

f R

oads

ides

Mu

seu

m o

f T

rad

itio

nal

Arc

hit

ectu

re

Tra

diti

onal

hou

ses

of S

ulaw

esi a

re d

ispl

ayed

.

Som

e ho

uses

are

dis

play

ed in

RO

W.

Res

iden

ce (

info

rmal

) R

esid

ence

第ニ

期区

間A案

3/7

Op

tion

A o

f P

has

e 2

3/7

C

urr

ent

Con

dit

ion

of

Roa

dsid

es

Are

a of

hig

h in

com

e cl

ass

Gar

den

Tat

a

New

hou

sing

dev

elop

men

t

Rid

ing

faci

lity

(un

used

)

TA

BA

RIA

Dis

tric

t

Hig

h m

iddl

e in

com

e cl

asse

s ar

e li

ving

.

第ニ

期区

間A案

4/7

Op

tion

A o

f P

has

e 2

4/7

C

urr

ent

Con

dit

ion

of

Roa

dsi

des

TA

BA

RIA

Dis

tric

t

Hig

h m

iddl

e in

com

e cl

asse

s ar

e li

ving

.

MA

NU

RU

KI

Dis

tric

t

Low

mid

dle

inco

me

clas

ses,

esp

ecia

lly

stud

ents

, are

livi

ng. T

here

are

a lo

t of

dorm

itori

es.

Mos

t of

af

fect

ed

buil

ding

s ar

e

TE

LE

KO

M’s

bui

ldin

gs.

第ニ

期区

間A案

5/7

Op

tion

A o

f P

has

e 2

5/7

C

urr

ent

Con

dit

ion

of

Roa

dsid

es

Mos

t of

af

fect

ed

buil

ding

s ar

e

TE

LE

KO

M’s

bui

ldin

gs.

Nat

iona

l Uni

vers

ity

of M

akas

sar

GU

SUN

G

PAO

TE

RE

PE

TTA

RA

NI

(Sea

food

) U

nder

con

stru

ctio

n

第ニ

期区

間A案

6/7（

Petta

rani通

りIC部

）

Op

tion

A o

f P

has

e 2

6/7

(Jl

. Pet

tara

ni, I

C)

Cu

rren

t C

ond

itio

n o

f R

oads

ides

Com

mer

cial

bui

ldin

gs,

offi

ces

Ven

dors

wit

hin

RO

W (

24)

Ven

dors

wit

hin

RO

W (

25)

第ニ

期区

間A案

7/7（

Petta

rani通

りIC部

）

Op

tion

A o

f P

has

e 2

7/7

(Jl

. Pet

tara

ni, I

C)

Cu

rren

t C

ond

itio

n o

f R

oad

sid

es

Mil

itar

y fa

cili

ty

Res

iden

ce

Silo

an H

ospi

tal

Hot

el (

>10

-sto

ry)

Hot

el P

RIM

A (

6- s

tory

)

Com

mer

cial

bui

ldin

gs a

nd

resi

denc

es a

re li

ning

alo

ng

the

stre

et.

Mili

tary

fac

ilit

y

第ニ

期区

間B案

１/3

Op

tion

B o

f P

has

e 2

1/3

C

urr

ent

Con

dit

ion

of

Roa

dsid

es

Mil

itar

y fa

cili

ty

Mos

t of

the

bui

ldin

gs a

roun

d th

e

stre

et

are

low

-ris

e co

mm

erci

al

faci

litie

s (2

- to

3-

st

ory)

. L

arge

scal

e bu

ildi

ngs

have

set

back

s, a

nd

are

not a

ffec

ted

dire

ctly

. Jl

. Rap

poc

ini

Mos

t of

the

bui

ldin

gs a

roun

d th

e

stre

et

are

low

-ris

e co

mm

erci

al

faci

liti

es (

2- to

3-s

tory

).

第ニ

期区

間B案

2/3

Op

tion

B o

f P

has

e 2

2/3

C

urr

ent

Con

dit

ion

of

Roa

dsi

des

The

par

liam

ent o

f

Mak

assa

r C

ity

Com

mer

cial

fac

iliti

es,

Gov

ernm

ent o

ffic

e

Und

er c

onst

ruct

ion

第ニ

期区

間B案

3/3

Jl. R

appo

cin

i

Mos

t of

the

buil

ding

s ar

ound

the

str

eet

are

low

-ris

e co

mm

erci

al

faci

liti

es

(2-

to

3-st

ory)

.

Op

tion

B o

f P

has

e 2

3/3

Cu

rren

t C

ond

itio

n o

f R

oads

ides


(1) Cash Flow Phase 1, Viaduct, Toll level 1,000Rp/km

(2) Cash Flow Phase 2, Option A, Toll level 1,000Rp/km

(3) Cash Flow Phase 2, Option B, Toll level 1,000Rp/km

1

Cash Flow on Finance

1. Cash Flow Phase 1, Viaduct, Toll level 1,000Rp/km

Income Yearly Return Cumulative Return Project IRRYear Toll Revenue Maintenance cost Capital Expenses Corporate Tax Total Expenses 7.90%

2018 0 0 18,880 0 18,880 -18,880 -18,880 2019 0 0 459,147 0 459,147 -459,147 -478,026 2020 0 0 480,501 0 480,501 -480,501 -958,527 2021 0 0 502,923 0 502,923 -502,923 -1,461,451 2022 0 0 526,467 0 526,467 -526,467 -1,987,918 2023 109,809 32,468 0 0 32,468 77,340 -1,910,577 2024 126,189 34,092 0 0 34,092 92,097 -1,818,481 2025 143,209 35,796 0 0 35,796 107,412 -1,711,068 2026 161,995 37,586 0 0 37,586 124,409 -1,586,659 2027 182,302 39,466 0 0 39,466 142,836 -1,443,823 2028 204,794 59,462 0 0 59,462 145,332 -1,298,491 2029 216,677 62,435 0 0 62,435 154,242 -1,144,249 2030 229,854 65,557 0 0 65,557 164,297 -979,953 2031 243,806 68,835 0 0 68,835 174,971 -804,981 2032 259,288 72,277 0 0 72,277 187,011 -617,971 2033 274,220 75,891 0 0 75,891 198,329 -419,642 2034 290,778 79,685 0 0 79,685 211,093 -208,549 2035 308,307 127,891 0 0 127,891 180,416 -28,133 2036 340,840 134,285 0 0 134,285 206,554 178,4212037 374,749 141,000 0 0 141,000 233,749 412,1702038 413,160 148,050 0 37,307 185,357 227,803 639,9742039 455,509 155,452 0 48,471 203,923 251,586 891,5602040 503,575 163,225 0 61,109 224,334 279,241 1,170,8002041 553,674 171,386 0 74,348 245,734 307,940 1,478,7402042 600,577 179,955 0 86,837 266,793 333,785 1,812,5252043 630,606 188,953 0 93,847 282,800 347,806 2,160,3312044 663,951 198,401 0 99,822 298,222 365,729 2,526,0602045 695,244 208,321 0 105,165 313,486 381,759 2,907,8192046 730,007 218,737 0 111,252 329,988 400,019 3,307,8372047 766,507 229,674 0 117,642 347,316 419,191 3,727,0282048 807,037 241,157 0 124,904 366,061 440,976 4,168,0042049 845,073 253,215 0 131,399 384,614 460,459 4,628,4632050 887,327 265,876 0 138,797 404,673 482,654 5,111,1182051 931,693 279,170 0 146,565 425,735 505,959 5,617,0762052 980,958 293,128 0 155,392 448,520 532,439 6,149,515

Expenses

2

2. Cash Flow Phase 2, Option A, Toll level 1,000Rp/km


2022 0 0 3,211,499 0 3,211,499 -3,211,499 -3,211,499 2023 0 0 3,344,284 0 3,344,284 -3,344,284 -6,555,783 2024 0 0 471,544 0 471,544 -471,544 -7,027,327 2025 0 0 493,812 0 493,812 -493,812 -7,521,139 2026 0 0 517,193 0 517,193 -517,193 -8,038,332 2027 0 0 541,743 0 541,743 -541,743 -8,580,075 2028 200,518 50,401 0 0 50,401 150,117 -8,429,958 2029 220,467 52,921 0 0 52,921 167,546 -8,262,412 2030 243,065 55,567 0 0 55,567 187,497 -8,074,915 2031 267,979 58,346 0 0 58,346 209,633 -7,865,282 2032 296,256 61,263 0 0 61,263 234,993 -7,630,289 2033 325,730 64,326 0 0 64,326 261,404 -7,368,885 2034 359,117 67,542 0 0 67,542 291,574 -7,077,311 2035 425,252 143,981 0 0 143,981 281,270 -6,796,041 2036 470,124 151,180 0 0 151,180 318,944 -6,477,097 2037 516,895 158,739 0 0 158,739 358,156 -6,118,941 2038 569,877 166,676 0 0 166,676 403,201 -5,715,740 2039 628,290 175,010 0 0 175,010 453,279 -5,262,460 2040 694,587 183,761 0 0 183,761 510,826 -4,751,634 2041 763,017 192,949 0 0 192,949 570,068 -4,181,566 2042 837,811 202,596 0 0 202,596 635,215 -3,546,350 2043 907,592 212,726 0 102,216 314,942 592,650 -2,953,701 2044 955,583 223,362 0 111,555 334,917 620,666 -2,333,034 2045 1,000,621 234,530 0 120,022 354,552 646,068 -1,686,966 2046 1,050,652 246,257 0 129,598 375,855 674,797 -1,012,169 2047 1,103,185 258,570 0 139,653 398,223 704,962 -307,207 2048 1,161,517 271,498 0 151,004 422,502 739,014 431,8082049 1,216,260 285,073 0 161,296 446,369 769,891 1,201,6982050 1,277,073 299,327 0 172,936 472,263 804,811 2,006,5092051 1,340,927 314,293 0 185,158 499,451 841,476 2,847,9852052 1,411,831 330,008 0 198,955 528,963 882,868 3,730,8532053 1,478,373 346,508 0 211,466 557,974 920,399 4,651,2522054 1,552,292 363,833 0 225,614 589,447 962,844 5,614,0972055 1,629,907 382,025 0 240,470 622,495 1,007,412 6,621,5092056 1,716,091 401,126 0 257,240 658,367 1,057,724 7,679,2322057 1,796,972 421,183 0 272,447 693,630 1,103,343 8,782,575

Expenses

3

3. Cash Flow Phase 2, Option B, Toll level 1,000Rp/km


2022 0 0 2,633,526 0 2,633,526 -2,633,526 -2,633,526 2023 0 0 2,740,598 0 2,740,598 -2,740,598 -5,374,124 2024 0 0 434,188 0 434,188 -434,188 -5,808,312 2025 0 0 454,692 0 454,692 -454,692 -6,263,004 2026 0 0 476,221 0 476,221 -476,221 -6,739,225 2027 0 0 498,826 0 498,826 -498,826 -7,238,050 2028 159,202 50,149 0 0 50,149 109,053 -7,128,997 2029 175,041 52,657 0 0 52,657 122,384 -7,006,613 2030 192,982 55,290 0 0 55,290 137,693 -6,868,921 2031 212,763 58,054 0 0 58,054 154,709 -6,714,212 2032 235,214 60,957 0 0 60,957 174,257 -6,539,955 2033 258,615 64,005 0 0 64,005 194,610 -6,345,345 2034 285,123 67,205 0 0 67,205 217,917 -6,127,427 2035 287,771 90,375 0 0 90,375 197,396 -5,930,031 2036 311,773 94,893 0 0 94,893 216,879 -5,713,152 2037 342,723 99,638 0 0 99,638 243,085 -5,470,067 2038 377,782 104,620 0 0 104,620 273,162 -5,196,904 2039 416,432 109,851 0 0 109,851 306,581 -4,890,324 2040 460,296 115,344 0 0 115,344 344,953 -4,545,371 2041 483,094 121,111 0 0 121,111 361,983 -4,183,388 2042 507,368 127,166 0 0 127,166 380,201 -3,803,186 2043 532,868 133,525 0 39,519 173,043 359,825 -3,443,362 2044 561,190 140,201 0 44,930 185,131 376,059 -3,067,302 2045 587,800 147,211 0 49,830 197,041 390,759 -2,676,543 2046 617,367 154,571 0 55,382 209,953 407,414 -2,269,130 2047 648,430 162,300 0 61,215 223,515 424,914 -1,844,215 2048 682,931 170,415 0 67,812 238,227 444,704 -1,399,511 2049 715,354 178,936 0 73,788 252,723 462,631 -936,880 2050 751,383 187,882 0 80,558 268,441 482,943 -453,938 2051 789,240 197,277 0 87,674 284,950 504,289 50,3522052 831,290 207,140 0 95,720 302,861 528,429 578,7812053 870,820 217,497 0 103,013 320,511 550,309 1,129,0902054 914,746 228,372 0 111,276 339,649 575,097 1,704,1872055 960,908 239,791 0 119,962 359,753 601,155 2,305,3422056 1,012,187 251,781 0 129,785 381,565 630,622 2,935,9642057 1,060,409 264,370 0 138,693 403,062 657,347 3,593,310

Expenses


Table1 Economic Evaluation of the Case of Embankment with Viaduct at Phase 1, nothing at

Phase 2

Table 2 Economic Evaluation of the Case of Full Viaduct at Phase 1, nothing at Phase 2

Table 3 Economic Evaluation of the Case of Embankment with Viaduct at Phase 1, Option A at

Phase 2

Table 4 Economic Evaluation of the Case of Embankment with Viaduct at Phase 1, Option B at

Phase 2

Table 5 Economic Evaluation of the Case of Full Viaduct at Phase 1, Option A at Phase 2

Table 6 Economic Evaluation of the Case of Full Viaduct at Phase 1, Option B at Phase 2

1

Table1 Economic Evaluation of the Case of Embankment with Viaduct at Phase 1, Nothing at Phase 2 Economic Internal Rate of Return (Phase1At grade&Viaduct)

(Mil. IDR) Discount Rate: 12%Costs Benefits

Year ConstructionCosts O&M

& OthersTotal VOC Savings

Time CostSavings

Total Year Costs BenefitsBenefits -

Costs

2014 0 0 0 0 2014 0 02015 0 0 0 0 2015 0 02016 0 50 50 -50 2016 40 0 -402017 0 50 50 -50 2017 36 0 -36

-5 2018 7,138 50 7,188 -7,188 2018 4,568 0 -4,568-4 2019 178,441 50 178,491 -178,491 2019 101,280 0 -101,280-3 2020 178,441 50 178,491 -178,491 2020 90,429 0 -90,429-2 2021 178,441 50 178,491 -178,491 2021 80,740 0 -80,740-1 2022 178,441 50 178,491 -178,491 2022 72,089 0 -72,0891 2023 0 17,500 17,500 146,510 74,790 221,301 203,801 2023 6,311 79,803 73,4932 2024 0 18,373 18,373 181,954 85,420 267,374 249,002 2024 5,915 86,087 80,1723 2025 0 19,289 19,289 225,972 97,561 323,533 304,244 2025 5,545 93,008 87,4634 2026 0 20,251 20,251 280,638 111,428 392,066 371,816 2026 5,198 100,634 95,4365 2027 0 21,261 21,261 348,529 127,266 475,795 454,534 2027 4,872 109,040 104,1686 2028 0 22,321 22,321 432,844 145,354 578,199 555,878 2028 4,567 118,311 113,7447 2029 0 23,435 23,435 435,985 135,991 571,976 548,542 2029 4,281 104,498 100,2178 2030 0 24,604 24,604 439,149 127,231 566,380 541,776 2030 4,013 92,389 88,3759 2031 0 25,832 25,832 442,336 119,035 561,371 535,539 2031 3,762 81,760 77,998

10 2032 0 27,121 27,121 445,546 111,367 556,913 529,792 2032 3,527 72,421 68,89411 2033 0 28,474 28,474 448,779 104,193 552,972 524,498 2033 3,306 64,204 60,89812 2034 0 29,895 29,895 452,036 97,481 549,517 519,621 2034 3,099 56,967 53,86713 2035 0 31,388 31,388 455,316 91,201 546,517 515,130 2035 2,905 50,585 47,68014 2036 0 32,955 32,955 455,316 91,201 546,517 513,563 2036 2,723 45,166 42,44215 2037 0 34,600 34,600 455,316 91,201 546,517 511,918 2037 2,553 40,326 37,77316 2038 0 36,327 36,327 455,316 91,201 546,517 510,190 2038 2,393 36,006 33,61217 2039 0 38,141 38,141 455,316 91,201 546,517 508,376 2039 2,244 32,148 29,90418 2040 0 40,046 40,046 455,316 91,201 546,517 506,472 2040 2,103 28,704 26,60019 2041 0 42,046 42,046 455,316 91,201 546,517 504,472 2041 1,972 25,628 23,65620 2042 0 44,145 44,145 455,316 91,201 546,517 502,372 2042 1,848 22,882 21,03421 2043 0 46,350 46,350 455,316 91,201 546,517 500,167 2043 1,733 20,431 18,69822 2044 0 48,665 48,665 455,316 91,201 546,517 497,852 2044 1,624 18,242 16,61723 2045 0 51,096 51,096 455,316 91,201 546,517 495,422 2045 1,523 16,287 14,76424 2046 0 53,648 53,648 455,316 91,201 546,517 492,869 2046 1,428 14,542 13,11525 2047 0 56,328 56,328 455,316 91,201 546,517 490,189 2047 1,338 12,984 11,64626 2048 0 59,142 59,142 455,316 91,201 546,517 487,376 2048 1,255 11,593 10,33827 2049 0 62,096 62,096 455,316 91,201 546,517 484,421 2049 1,176 10,351 9,17528 2050 0 65,199 65,199 455,316 91,201 546,517 481,319 2050 1,103 9,242 8,13929 2051 0 68,456 68,456 455,316 91,201 546,517 478,061 2051 1,034 8,252 7,21830 2052 0 71,877 71,877 455,316 91,201 546,517 474,641 2051 1,085 8,252 7,16631 2053 0 75,468 75,468 455,316 91,201 546,517 471,050 2051 1,139 8,252 7,11232 2054 0 79,239 79,239 455,316 91,201 546,517 467,279 2051 1,196 8,252 7,05533 2055 0 83,198 83,198 455,316 91,201 546,517 463,319 2051 1,256 8,252 6,99534 2056 0 87,356 87,356 455,316 91,201 546,517 459,162 2051 1,319 8,252 6,93335 2057 0 91,721 91,721 455,316 91,201 546,517 454,797 2051 1,385 8,252 6,867

NPV= 1,070,084EIRR= 30.8%BCR= 3.4

Benefits -Costs

Source: The Study Team

2

Table2 Economic Evaluation of the Case of Full Viaduct at Phase 1, Nothing at Phase 2 Economic Internal Rate of Return (Phase1Viaduct)




Time CostSavings


Costs

2014 0 0 0 0 2014 0 02015 0 0 0 0 2015 0 02016 0 50 50 -50 2016 40 0 -402017 0 50 50 -50 2017 36 0 -36

-5 2018 11,540 50 11,590 -11,590 2018 7,366 0 -7,366-4 2019 288,501 50 288,551 -288,551 2019 163,732 0 -163,732-3 2020 288,501 50 288,551 -288,551 2020 146,189 0 -146,189-2 2021 288,501 50 288,551 -288,551 2021 130,526 0 -130,526-1 2022 288,501 50 288,551 -288,551 2022 116,541 0 -116,5411 2023 0 17,500 17,500 146,510 74,790 221,301 203,801 2023 6,311 79,803 73,4932 2024 0 18,373 18,373 181,954 85,420 267,374 249,002 2024 5,915 86,087 80,1723 2025 0 19,289 19,289 225,972 97,561 323,533 304,244 2025 5,545 93,008 87,4634 2026 0 20,251 20,251 280,638 111,428 392,066 371,816 2026 5,198 100,634 95,4365 2027 0 21,261 21,261 348,529 127,266 475,795 454,534 2027 4,872 109,040 104,1686 2028 0 23,435 23,435 432,844 145,354 578,199 554,764 2028 4,795 118,311 113,5167 2029 0 24,604 24,604 435,985 135,991 571,976 547,373 2029 4,495 104,498 100,0038 2030 0 25,832 25,832 439,149 127,231 566,380 540,548 2030 4,214 92,389 88,1759 2031 0 27,121 27,121 442,336 119,035 561,371 534,250 2031 3,950 81,760 77,811

10 2032 0 28,474 28,474 445,546 111,367 556,913 528,439 2032 3,703 72,421 68,71811 2033 0 29,895 29,895 448,779 104,193 552,972 523,076 2033 3,471 64,204 60,73312 2034 0 31,388 31,388 452,036 97,481 549,517 518,129 2034 3,254 56,967 53,71313 2035 0 32,955 32,955 455,316 91,201 546,517 513,563 2035 3,050 50,585 47,53514 2036 0 34,600 34,600 455,316 91,201 546,517 511,918 2036 2,859 45,166 42,30615 2037 0 36,327 36,327 455,316 91,201 546,517 510,190 2037 2,681 40,326 37,64616 2038 0 38,141 38,141 455,316 91,201 546,517 508,376 2038 2,513 36,006 33,49317 2039 0 40,046 40,046 455,316 91,201 546,517 506,472 2039 2,356 32,148 29,79218 2040 0 42,046 42,046 455,316 91,201 546,517 504,472 2040 2,208 28,704 26,49519 2041 0 44,145 44,145 455,316 91,201 546,517 502,372 2041 2,070 25,628 23,55820 2042 0 46,350 46,350 455,316 91,201 546,517 500,167 2042 1,941 22,882 20,94221 2043 0 48,665 48,665 455,316 91,201 546,517 497,852 2043 1,819 20,431 18,61122 2044 0 51,096 51,096 455,316 91,201 546,517 495,422 2044 1,705 18,242 16,53623 2045 0 53,648 53,648 455,316 91,201 546,517 492,869 2045 1,599 16,287 14,68824 2046 0 56,328 56,328 455,316 91,201 546,517 490,189 2046 1,499 14,542 13,04325 2047 0 59,142 59,142 455,316 91,201 546,517 487,376 2047 1,405 12,984 11,57926 2048 0 62,096 62,096 455,316 91,201 546,517 484,421 2048 1,317 11,593 10,27627 2049 0 65,199 65,199 455,316 91,201 546,517 481,319 2049 1,235 10,351 9,11628 2050 0 68,456 68,456 455,316 91,201 546,517 478,061 2050 1,158 9,242 8,08429 2051 0 71,877 71,877 455,316 91,201 546,517 474,641 2051 1,085 8,252 7,16630 2052 0 75,468 75,468 455,316 91,201 546,517 471,050 2051 1,139 8,252 7,11231 2053 0 79,239 79,239 455,316 91,201 546,517 467,279 2051 1,196 8,252 7,05532 2054 0 83,198 83,198 455,316 91,201 546,517 463,319 2051 1,256 8,252 6,99533 2055 0 87,356 87,356 455,316 91,201 546,517 459,162 2051 1,319 8,252 6,93334 2056 0 91,721 91,721 455,316 91,201 546,517 454,797 2051 1,385 8,252 6,86735 2057 0 96,304 96,304 455,316 91,201 546,517 450,213 2051 1,454 8,252 6,798

NPV= 851,597EIRR= 22.9%BCR= 2.3

Benefits -Costs


3

Table3 Economic Evaluation of the Case of Embankment with Viaduct at Phase 1, Option A at Phase 2 Economic Internal Rate of Return (Phase1At grade&Viaduct+Phase2A)




Time CostSavings


Costs

2014 0 0 0 0 2014 0 02015 0 0 0 0 2015 0 02016 0 50 50 -50 2016 40 0 -402017 0 50 50 -50 2017 36 0 -36

-5 2018 7,138 50 7,188 -7,188 2018 4,568 0 -4,568-4 2019 178,441 50 178,491 -178,491 2019 101,280 0 -101,280-3 2020 178,441 170,450 348,891 -348,891 2020 176,759 0 -176,759-2 2021 187,869 170,450 358,319 -358,319 2021 162,085 0 -162,085-1 2022 395,298 170,450 565,748 -565,748 2022 228,496 0 -228,4961 2023 216,857 187,900 404,757 146,510 74,790 221,301 -183,457 2023 145,959 79,803 -66,1562 2024 235,714 188,773 424,487 181,954 85,420 267,374 -157,113 2024 136,673 86,087 -50,5863 2025 235,714 189,689 425,403 225,972 97,561 323,533 -101,870 2025 122,293 93,008 -29,2854 2026 235,714 190,651 426,365 280,638 111,428 392,066 -34,299 2026 109,437 100,634 -8,8045 2027 235,714 191,661 427,375 348,529 127,266 475,795 48,420 2027 97,943 109,040 11,0976 2028 0 190,499 190,499 961,229 240,869 1,202,098 1,011,599 2028 38,980 245,973 206,9937 2029 0 191,501 191,501 1,044,041 252,650 1,296,691 1,105,189 2029 34,987 236,901 201,9148 2030 0 192,554 192,554 1,133,987 265,008 1,398,995 1,206,441 2030 31,410 228,206 196,7979 2031 0 193,659 193,659 1,231,683 277,969 1,509,653 1,315,993 2031 28,205 219,872 191,667

10 2032 0 194,820 194,820 1,337,796 291,565 1,629,361 1,434,541 2032 25,334 211,881 186,54711 2033 0 196,038 196,038 1,453,050 305,826 1,758,876 1,562,838 2033 22,761 204,217 181,45612 2034 0 197,318 197,318 1,578,234 320,784 1,899,018 1,701,701 2034 20,455 196,865 176,41013 2035 0 263,931 263,931 1,714,203 336,474 2,050,677 1,786,746 2035 24,429 189,810 165,38114 2036 0 308,564 308,564 1,714,203 336,474 2,050,677 1,742,113 2036 25,501 169,473 143,97315 2037 0 315,470 315,470 1,714,203 336,474 2,050,677 1,735,207 2037 23,278 151,315 128,03716 2038 0 322,721 322,721 1,714,203 336,474 2,050,677 1,727,956 2038 21,262 135,103 113,84117 2039 0 330,334 330,334 1,714,203 336,474 2,050,677 1,720,343 2039 19,431 120,628 101,19618 2040 0 338,328 338,328 1,714,203 336,474 2,050,677 1,712,349 2040 17,769 107,703 89,93419 2041 0 346,722 346,722 1,714,203 336,474 2,050,677 1,703,955 2041 16,259 96,164 79,90520 2042 0 355,536 355,536 1,714,203 336,474 2,050,677 1,695,141 2042 14,886 85,860 70,97421 2043 0 364,790 364,790 1,714,203 336,474 2,050,677 1,685,887 2043 13,637 76,661 63,02422 2044 0 374,507 374,507 1,714,203 336,474 2,050,677 1,676,170 2044 12,500 68,447 55,94723 2045 0 384,710 384,710 1,714,203 336,474 2,050,677 1,665,967 2045 11,465 61,114 49,64924 2046 0 395,423 395,423 1,714,203 336,474 2,050,677 1,655,254 2046 10,522 54,566 44,04425 2047 0 406,672 406,672 1,714,203 336,474 2,050,677 1,644,005 2047 9,662 48,719 39,05826 2048 0 418,483 418,483 1,714,203 336,474 2,050,677 1,632,194 2048 8,877 43,500 34,62327 2049 0 430,885 430,885 1,714,203 336,474 2,050,677 1,619,793 2049 8,161 38,839 30,67828 2050 0 443,906 443,906 1,714,203 336,474 2,050,677 1,606,771 2050 7,507 34,678 27,17129 2051 0 457,579 457,579 1,714,203 336,474 2,050,677 1,593,098 2051 6,909 30,962 24,05330 2052 0 471,936 471,936 1,714,203 336,474 2,050,677 1,578,742 2051 7,126 30,962 23,83731 2053 0 487,010 487,010 1,714,203 336,474 2,050,677 1,563,667 2051 7,353 30,962 23,60932 2054 0 502,838 502,838 1,714,203 336,474 2,050,677 1,547,839 2051 7,592 30,962 23,37033 2055 0 519,457 519,457 1,714,203 336,474 2,050,677 1,531,220 2051 7,843 30,962 23,11934 2056 0 536,908 536,908 1,714,203 336,474 2,050,677 1,513,770 2051 8,106 30,962 22,85635 2057 0 555,230 555,230 1,714,203 336,474 2,050,677 1,495,447 2051 8,383 30,962 22,579

NPV= 1,925,642EIRR= 22.5%BCR= 2.1

Benefits -Costs


4

Table4 Economic Evaluation of the Case of Embankment with Viaduct at Phase 1, Option B at Phase 2 Economic Internal Rate of Return (Phase1At grade&Viaduct+Phase2B)




Time CostSavings


Costs

2014 0 0 0 0 2014 0 02015 0 0 0 0 2015 0 02016 0 50 50 -50 2016 40 0 -402017 0 50 50 -50 2017 36 0 -36

-5 2018 7,138 50 7,188 -7,188 2018 4,568 0 -4,568-4 2019 178,441 50 178,491 -178,491 2019 101,280 0 -101,280-3 2020 178,441 137,250 315,691 -315,691 2020 159,939 0 -159,939-2 2021 187,122 137,250 324,372 -324,372 2021 146,730 0 -146,730-1 2022 378,118 137,250 515,368 -515,368 2022 208,149 0 -208,1491 2023 199,678 154,700 354,378 146,510 74,790 221,301 -133,077 2023 127,792 79,803 -47,9892 2024 217,041 155,573 372,613 181,954 85,420 267,374 -105,239 2024 119,972 86,087 -33,8843 2025 217,041 156,489 373,529 225,972 97,561 323,533 -49,996 2025 107,381 93,008 -14,3734 2026 217,041 157,451 374,491 280,638 111,428 392,066 17,575 2026 96,123 100,634 4,5115 2027 217,041 158,461 375,501 348,529 127,266 475,795 100,294 2027 86,055 109,040 22,9856 2028 0 205,580 205,580 641,129 203,414 844,543 638,963 2028 42,066 172,810 130,7447 2029 0 208,997 208,997 692,556 200,895 893,450 684,454 2029 38,183 163,230 125,0478 2030 0 212,584 212,584 748,108 198,406 946,515 733,931 2030 34,677 154,397 119,7209 2031 0 216,351 216,351 808,117 195,949 1,004,066 787,715 2031 31,510 146,237 114,726

10 2032 0 220,306 220,306 872,939 193,522 1,066,461 846,156 2032 28,648 138,682 110,03411 2033 0 224,458 224,458 942,961 191,125 1,134,086 909,628 2033 26,061 131,675 105,61412 2034 0 228,819 228,819 1,018,599 188,758 1,207,357 978,538 2034 23,721 125,163 101,44213 2035 0 212,298 212,298 1,100,304 186,420 1,286,725 1,074,427 2035 19,650 119,099 99,44914 2036 0 248,130 248,130 1,100,304 186,420 1,286,725 1,038,595 2036 20,506 106,338 85,83215 2037 0 253,674 253,674 1,100,304 186,420 1,286,725 1,033,051 2037 18,718 94,945 76,22716 2038 0 259,495 259,495 1,100,304 186,420 1,286,725 1,027,229 2038 17,096 84,772 67,67617 2039 0 265,608 265,608 1,100,304 186,420 1,286,725 1,021,117 2039 15,624 75,689 60,06518 2040 0 272,025 272,025 1,100,304 186,420 1,286,725 1,014,699 2040 14,287 67,580 53,29319 2041 0 278,764 278,764 1,100,304 186,420 1,286,725 1,007,960 2041 13,072 60,339 47,26720 2042 0 285,840 285,840 1,100,304 186,420 1,286,725 1,000,885 2042 11,968 53,874 41,90621 2043 0 293,269 293,269 1,100,304 186,420 1,286,725 993,455 2043 10,963 48,102 37,13922 2044 0 301,070 301,070 1,100,304 186,420 1,286,725 985,654 2044 10,049 42,948 32,89923 2045 0 309,261 309,261 1,100,304 186,420 1,286,725 977,463 2045 9,217 38,347 29,13024 2046 0 317,862 317,862 1,100,304 186,420 1,286,725 968,863 2046 8,458 34,238 25,78025 2047 0 326,893 326,893 1,100,304 186,420 1,286,725 959,832 2047 7,766 30,570 22,80326 2048 0 336,375 336,375 1,100,304 186,420 1,286,725 950,350 2048 7,135 27,294 20,15927 2049 0 346,331 346,331 1,100,304 186,420 1,286,725 940,394 2049 6,559 24,370 17,81128 2050 0 356,785 356,785 1,100,304 186,420 1,286,725 929,940 2050 6,033 21,759 15,72629 2051 0 367,762 367,762 1,100,304 186,420 1,286,725 918,963 2051 5,553 19,428 13,87530 2052 0 379,287 379,287 1,100,304 186,420 1,286,725 907,437 2051 5,727 19,428 13,70131 2053 0 391,389 391,389 1,100,304 186,420 1,286,725 895,336 2051 5,909 19,428 13,51832 2054 0 404,096 404,096 1,100,304 186,420 1,286,725 882,629 2051 6,101 19,428 13,32633 2055 0 417,438 417,438 1,100,304 186,420 1,286,725 869,286 2051 6,303 19,428 13,12534 2056 0 431,448 431,448 1,100,304 186,420 1,286,725 855,277 2051 6,514 19,428 12,91335 2057 0 446,158 446,158 1,100,304 186,420 1,286,725 840,567 2051 6,736 19,428 12,691

NPV= 944,148EIRR= 19.0%BCR= 1.6

Benefits -Costs


5

Table5 Economic Evaluation of the Case of Full Viaduct at Phase 1, Option A at Phase 2 Economic Internal Rate of Return (Phase1Viaduct+Phase2A)




Time CostSavings


Costs

2014 0 0 0 0 2014 0 02015 0 0 0 0 2015 0 02016 0 50 50 -50 2016 40 0 -402017 0 50 50 -50 2017 36 0 -36

-5 2018 11,540 50 11,590 -11,590 2018 7,366 0 -7,366-4 2019 288,501 50 288,551 -288,551 2019 163,732 0 -163,732-3 2020 288,501 170,450 458,951 -458,951 2020 232,519 0 -232,519-2 2021 297,930 170,450 468,380 -468,380 2021 211,871 0 -211,871-1 2022 505,358 170,450 675,808 -675,808 2022 272,948 0 -272,9481 2023 216,857 187,900 404,757 146,510 74,790 221,301 -183,457 2023 145,959 79,803 -66,1562 2024 235,714 188,773 424,487 181,954 85,420 267,374 -157,113 2024 136,673 86,087 -50,5863 2025 235,714 189,689 425,403 225,972 97,561 323,533 -101,870 2025 122,293 93,008 -29,2854 2026 235,714 190,651 426,365 280,638 111,428 392,066 -34,299 2026 109,437 100,634 -8,8045 2027 235,714 191,661 427,375 348,529 127,266 475,795 48,420 2027 97,943 109,040 11,0976 2028 0 190,499 190,499 961,229 240,869 1,202,098 1,011,599 2028 38,980 245,973 206,9937 2029 0 191,501 191,501 1,044,041 252,650 1,296,691 1,105,189 2029 34,987 236,901 201,9148 2030 0 192,554 192,554 1,133,987 265,008 1,398,995 1,206,441 2030 31,410 228,206 196,7979 2031 0 193,659 193,659 1,231,683 277,969 1,509,653 1,315,993 2031 28,205 219,872 191,667

10 2032 0 194,820 194,820 1,337,796 291,565 1,629,361 1,434,541 2032 25,334 211,881 186,54711 2033 0 196,038 196,038 1,453,050 305,826 1,758,876 1,562,838 2033 22,761 204,217 181,45612 2034 0 197,318 197,318 1,578,234 320,784 1,899,018 1,701,701 2034 20,455 196,865 176,41013 2035 0 263,931 263,931 1,714,203 336,474 2,050,677 1,786,746 2035 24,429 189,810 165,38114 2036 0 308,564 308,564 1,714,203 336,474 2,050,677 1,742,113 2036 25,501 169,473 143,97315 2037 0 315,470 315,470 1,714,203 336,474 2,050,677 1,735,207 2037 23,278 151,315 128,03716 2038 0 322,721 322,721 1,714,203 336,474 2,050,677 1,727,956 2038 21,262 135,103 113,84117 2039 0 330,334 330,334 1,714,203 336,474 2,050,677 1,720,343 2039 19,431 120,628 101,19618 2040 0 338,328 338,328 1,714,203 336,474 2,050,677 1,712,349 2040 17,769 107,703 89,93419 2041 0 346,722 346,722 1,714,203 336,474 2,050,677 1,703,955 2041 16,259 96,164 79,90520 2042 0 355,536 355,536 1,714,203 336,474 2,050,677 1,695,141 2042 14,886 85,860 70,97421 2043 0 364,790 364,790 1,714,203 336,474 2,050,677 1,685,887 2043 13,637 76,661 63,02422 2044 0 374,507 374,507 1,714,203 336,474 2,050,677 1,676,170 2044 12,500 68,447 55,94723 2045 0 384,710 384,710 1,714,203 336,474 2,050,677 1,665,967 2045 11,465 61,114 49,64924 2046 0 395,423 395,423 1,714,203 336,474 2,050,677 1,655,254 2046 10,522 54,566 44,04425 2047 0 406,672 406,672 1,714,203 336,474 2,050,677 1,644,005 2047 9,662 48,719 39,05826 2048 0 418,483 418,483 1,714,203 336,474 2,050,677 1,632,194 2048 8,877 43,500 34,62327 2049 0 430,885 430,885 1,714,203 336,474 2,050,677 1,619,793 2049 8,161 38,839 30,67828 2050 0 443,906 443,906 1,714,203 336,474 2,050,677 1,606,771 2050 7,507 34,678 27,17129 2051 0 457,579 457,579 1,714,203 336,474 2,050,677 1,593,098 2051 6,909 30,962 24,05330 2052 0 471,936 471,936 1,714,203 336,474 2,050,677 1,578,742 2051 7,126 30,962 23,83731 2053 0 487,010 487,010 1,714,203 336,474 2,050,677 1,563,667 2051 7,353 30,962 23,60932 2054 0 502,838 502,838 1,714,203 336,474 2,050,677 1,547,839 2051 7,592 30,962 23,37033 2055 0 519,457 519,457 1,714,203 336,474 2,050,677 1,531,220 2051 7,843 30,962 23,11934 2056 0 536,908 536,908 1,714,203 336,474 2,050,677 1,513,770 2051 8,106 30,962 22,85635 2057 0 555,230 555,230 1,714,203 336,474 2,050,677 1,495,447 2051 8,383 30,962 22,579

NPV= 1,710,396EIRR= 20.1%BCR= 1.9

Benefits -Costs


6

Table6 Economic Evaluation of the Case of Full Viaduct at Phase 1, Option B at Phase 2 Economic Internal Rate of Return (Phase1Viaduct+Phase2B)




Time CostSavings


Costs

2014 0 0 0 0 2014 0 02015 0 0 0 0 2015 0 02016 0 50 50 -50 2016 40 0 -402017 0 50 50 -50 2017 36 0 -36

-5 2018 11,540 50 11,590 -11,590 2018 7,366 0 -7,366-4 2019 288,501 50 288,551 -288,551 2019 163,732 0 -163,732-3 2020 288,501 137,250 425,751 -425,751 2020 215,699 0 -215,699-2 2021 297,183 137,250 434,433 -434,433 2021 196,515 0 -196,515-1 2022 488,179 137,250 625,429 -625,429 2022 252,600 0 -252,6001 2023 199,678 154,700 354,378 146,510 74,790 221,301 -133,077 2023 127,792 79,803 -47,9892 2024 217,041 155,573 372,613 181,954 85,420 267,374 -105,239 2024 119,972 86,087 -33,8843 2025 217,041 156,489 373,529 225,972 97,561 323,533 -49,996 2025 107,381 93,008 -14,3734 2026 217,041 157,451 374,491 280,638 111,428 392,066 17,575 2026 96,123 100,634 4,5115 2027 217,041 158,461 375,501 348,529 127,266 475,795 100,294 2027 86,055 109,040 22,9856 2028 0 205,580 205,580 641,129 203,414 844,543 638,963 2028 42,066 172,810 130,7447 2029 0 208,997 208,997 692,556 200,895 893,450 684,454 2029 38,183 163,230 125,0478 2030 0 212,584 212,584 748,108 198,406 946,515 733,931 2030 34,677 154,397 119,7209 2031 0 216,351 216,351 808,117 195,949 1,004,066 787,715 2031 31,510 146,237 114,726

10 2032 0 220,306 220,306 872,939 193,522 1,066,461 846,156 2032 28,648 138,682 110,03411 2033 0 224,458 224,458 942,961 191,125 1,134,086 909,628 2033 26,061 131,675 105,61412 2034 0 228,819 228,819 1,018,599 188,758 1,207,357 978,538 2034 23,721 125,163 101,44213 2035 0 212,298 212,298 1,100,304 186,420 1,286,725 1,074,427 2035 19,650 119,099 99,44914 2036 0 248,130 248,130 1,100,304 186,420 1,286,725 1,038,595 2036 20,506 106,338 85,83215 2037 0 253,674 253,674 1,100,304 186,420 1,286,725 1,033,051 2037 18,718 94,945 76,22716 2038 0 259,495 259,495 1,100,304 186,420 1,286,725 1,027,229 2038 17,096 84,772 67,67617 2039 0 265,608 265,608 1,100,304 186,420 1,286,725 1,021,117 2039 15,624 75,689 60,06518 2040 0 272,025 272,025 1,100,304 186,420 1,286,725 1,014,699 2040 14,287 67,580 53,29319 2041 0 278,764 278,764 1,100,304 186,420 1,286,725 1,007,960 2041 13,072 60,339 47,26720 2042 0 285,840 285,840 1,100,304 186,420 1,286,725 1,000,885 2042 11,968 53,874 41,90621 2043 0 293,269 293,269 1,100,304 186,420 1,286,725 993,455 2043 10,963 48,102 37,13922 2044 0 301,070 301,070 1,100,304 186,420 1,286,725 985,654 2044 10,049 42,948 32,89923 2045 0 309,261 309,261 1,100,304 186,420 1,286,725 977,463 2045 9,217 38,347 29,13024 2046 0 317,862 317,862 1,100,304 186,420 1,286,725 968,863 2046 8,458 34,238 25,78025 2047 0 326,893 326,893 1,100,304 186,420 1,286,725 959,832 2047 7,766 30,570 22,80326 2048 0 336,375 336,375 1,100,304 186,420 1,286,725 950,350 2048 7,135 27,294 20,15927 2049 0 346,331 346,331 1,100,304 186,420 1,286,725 940,394 2049 6,559 24,370 17,81128 2050 0 356,785 356,785 1,100,304 186,420 1,286,725 929,940 2050 6,033 21,759 15,72629 2051 0 367,762 367,762 1,100,304 186,420 1,286,725 918,963 2051 5,553 19,428 13,87530 2052 0 379,287 379,287 1,100,304 186,420 1,286,725 907,437 2051 5,727 19,428 13,70131 2053 0 391,389 391,389 1,100,304 186,420 1,286,725 895,336 2051 5,909 19,428 13,51832 2054 0 404,096 404,096 1,100,304 186,420 1,286,725 882,629 2051 6,101 19,428 13,32633 2055 0 417,438 417,438 1,100,304 186,420 1,286,725 869,286 2051 6,303 19,428 13,12534 2056 0 431,448 431,448 1,100,304 186,420 1,286,725 855,277 2051 6,514 19,428 12,91335 2057 0 446,158 446,158 1,100,304 186,420 1,286,725 840,567 2051 6,736 19,428 12,691

NPV= 728,901EIRR= 16.5%BCR= 1.4

Benefits -Costs


6. Meeting Records

(1) JETRO Jakarta Office

(2) PT Margautama Nusantara

(3) JICA Jakarta Office

(4) Embassy of Japan in Indonesia

(5) Sub-Directorate of Policy and Strategy, Directorate of Planning and Programming, Bina Marga

(6) BPJT

(7) Sub-Directorate of Freeways and Urban Roads, Directorate General of Bina Marga

(8) PT. Komponindo Betonjaya (KOBE)

(9) Makassar Consular Office of Japan

(10) JICA Makassar Office

(11) NATURA Industrial Estate

(12) Makassar City

(13) Pelindo IV

(14) Makassar City PU

(15) PU Sulawesi

(16) Environmental Department, Makassar City

(17) Center for Environmental Research & Development in Hassanudin University


(19) Makassar City

(20) Bina Marga, South Sulawesi Province

(21) BPN Makassar City

(22) BAPPEDA South Sulawesi Province

(23) BPJT, Bina Marga


(25) Hassanudin University

(26) BAPPEDA, Makassar City

(27) Makassar Local Environmental Agency

(28) Makassar Consular Office of Japan

(29) Embassy of Japan in Indonesia

(30) PT Margautama Nusantara

(31) JETRO Jakarta Office


(33) Sub-Directorate of Freeways and Urban Roads, Directorate General of Bina Marga

(34) Makassar City

1

Minutes of Discussion (1)

Date/Time Tue, 30 Sep 2014 10:20-11:20

Attendance : JETRO Mr. Aizawa Kazuhiro, Vice President Director

Study Team Mr. Yamauchi, Mr. Saita, Mr. Mikura, Mr. Kurokawa, Mr. Kunimasa

1. Brief presentation of Scope of Study

Mr. Yamauchi made a brief explanation of the project based on the presentation material.

2. Discussions

The Study Team will confirm the master plan of the ring road plan of Makassar and define the project in the master plan.

The project will be formulated as an uninterrupted structure with existing toll road.

Mr. Aizawa encouraged introducing Japanese ETC system in Makassar by the project, since Indonesian tends to take count of realized creditable achievements.

In this regard, Mr. Aizawa advised the Study Team to align with the ITS introducing project conducting in Makassar by Omron.

Japanese affiliated companies may newly locate in Makassar in the future if infrastructure will be properly developed. Even though, at this time, the Japanese affiliated companies are concentrated to Jakarta and its suburban area.

The Government of Indonesia may support the project by IIGF, in case the project is not enough profitable.

Mr. Aizawa provided unit labor costs of east-south Asian countries to the Study Team.

Mr. Aizawa expressed his interest and intention to attend the meeting on draft final report of the study.

JETRO does not have safety-related information of Makassar, so that the Study Team will request such information to JICA and Embassy of Japan.

The meeting adjourned at 11:20.

2


Date/Time: Tue, 30 Sep 2014 15:00-16:30

Attendance : Nusantara Infrastructure

Mr. Ricky Camelien, Chief financial Officer Ms. Putri Seruni, Corporate Affairs

Study Team Mr. Yamauchi, Mr. Saita, Mr. Mikura, Mr. Kurokawa, Mr. Kunimasa, Ms. Lediah

1. Confirmation of the presentation

Mr. Yamauchi made a brief explanation of the project based on the presentation material which was send to Mr. Ricky in advance. The presentation will be used to explain the project to Bina Marga, BPJT as well as the mayor of Makassar city. Mr. Ricky commented that MUN is not necessary to be specified as a consortium member since this is pre-FS stage of the project and many stakeholders may concerns. Mr. Yamauchi answered that he will explain verbally MUN standing for a local toll road operator.

2. Project formulation process

Mr. Rickey explained the process of PPP in Indonesia. There are solicited and unsolicited projects. To be supported by government in terms of land acquisition, construction, etc., the project shall be solicited. An unsolicited project is a pure BOT and investor shall manage everything including land acquisition. An unsolicited project is to be tendered after approval of Ministry of Finance and Ministry of Public Works, with some benefits to the proponent of the project. The proponent can sell the project to the government instead of conducting the project; has a right to match the best bidder which means in case the proponent loses the bidding the proponent can contract same condition as the best bidder.

To formulate a solicited project, an initiator such as a city mayor or a governor of province shall propose to Bina Marga. Following the process of approval, BAPPENAS will give a budget and BPJT will be responsible on bidding and contract.

In this project, it is crucially important to identify what supports by the government are required to be viable the project especially for phase II.

Regarding Medan toll road project, a Viability Gap Fund (VGF) was applied by the government and it may be a good practice for the project.

3. Visiting Organizations

Mr. Saita asked Mr. Ricky of his recommendation of visiting organizations for the study team. Mr. Ricky recommended meeting the governor of South Sulawesi and BAPPENAS. However, the mayor of Makassar city was a former adviser of the governor and has good relationship with him. Therefore information will be shared between the mayor and the governor without visiting by the study team. BAPPENAS needs study results and data rather than project inception report.

4. ITS system in Makassar Toll Road

Mr. Saita asked Mr. Ricky about plans of ITS system in Makassar Toll Road both existing and planning. Mr. Ricky explained a plan of installing variable message signs on toll road and general roads. He also explained a plan to introduce ETC system using Japanese technology. They can be applied to both existing and planning.

3

However toll system shall be independent by sections since operating companies are different.


4


Date/Time: Wed, 1 Oct 2014 10:00-11:20

Attendance : JICA Mr. Aratsu, Senior representative Mr. Endo, Representative Mr. Nakao, Ministry of Public Works (JICA expert)




2. Discussion

• Mr. Aratsu introduced Dr. Inaba, who resides in Makassar. ST will visit Dr. Inaba and discuss about present conditions of Makassar.

• Mr. Nakao briefed the structure of PPP in Indonesia; Bappeda prepares PPP list for SBOT; whereas in the case of unsolicited proposal, concerning agencies are coordinated and to be decided. Mr. Nakao recommended ST to meet Mr. Herry TZ, director of Sub-Directorate of Policy and Strategy, Bina Marga, and confirm the right persons to discuss on actual PPP procedure.

• JICA intended to formulate PPP projects, however, there was no realized project yet.

• ST showed an idea of initiating the project by local government and Mr. Nakao also recommended discussing this issue with Mr. Herry TZ.

• Mr. Nakao introduced a realized unsolicited toll road project in Denpasar, conducted by Jasa Marga.

• ST asked the possibility of using yen loan and JICA answered that it took long time to be formulated since the process required to be listed in the blue book after approval of Bappenas.

• JICA recommended the key issue was financial feasibility of the project.

• JICA suggested consulting with the EOJ on security concerns in Makassar.


5


Date/Time: Wed, 1 Oct 2014 14:20-15:20

Attendance : JICA Mr. Furumoto, First Secretary, Economic Section Construction Attaché Mr. Kitamura, Second Secretary, Energy and Natural Resources


1. Security condition in Makassar

Mr. Furumoto informed a contact of the consular office in Makassar in order to refer security conditions. Officers also have information on Japanese affiliated firms in Makassar.



3. Discussion

• Mr. Furumoto mentioned that new toll roads should be harmonized with port development plan, therefore, it was necessary to be remarked in the spatial plan of Makassar.

• Mr. Nakao briefed about a thermal power generation development project in central java. A joint venture company consists of Japanese and Indonesian companies was in charge of land acquisitions and resettlements. However, since it did not work well, then it applied a force majeure and conducting by the government. It was clear that land acquisition and resettlement should be done by the government or project would be failed.

• The Study Team (ST) explained that ST was conducting basic road design in this first field survey and would explain to concerns in next field survey in November.

• ST explained that finance source was to be 海外投融資. Appling for yen loan would be an option, however it took long time to realize.

• ST would confirm the condition of phase I and phase II of the project to Bine Marga and BPJT. ST would also confirm the procedures to implement the project both in the central government and the local governments.

• Mr. Furumoto expressed his concerns and showed his willingness to cooperate in promoting the project.

• The importance of the Sulawesi in the Indonesia was discussed and development of east Indonesia and mineral resources were noted.


6


Date/Time: Thursday, 02 Oct 2014 10:00-11:30

Attendance : Sub-Directorate of Policy and Strategy, Directorate of Planning and Programming, Bina Marga

Ms. Komang Mr. Fadil Ms. Septi

Study Team Mr. Yamauchi, Mr. Saita, Mr. Mikura, Mr. Kurokawa, Mr. Kunimasa, Ms. Lediah

1. Introduction from Study Team

On behalf of the Study Team, Team Leader, Mr. Yamauchi expressed his gratitude to the representatives of Sub-Directorate of Policy and Strategy for their presence in the meeting. Briefly, the Team Leader presented the purpose, content, schedule and expectation for this study. The main objective of the meeting is to receive advises, inputs and any related information from Sub-Directorate of Policy and Strategy.

2. Highlights of Discussion ‐ For Unsolicited Project, Central Government will not give any financial support to the

initiator. The initiator could propose it to BPJT and Sub Directorate of Freeways and Urban Roads.

‐ Sub Directorate of Freeways and Urban Roads will be in charge to determine whether the project meets all the requirements for unsolicited project. After all the requirements are completed, Sub Directorate of Freeways and Urban Roads will ask an advice or review from Directorate of Planning and Programming. Then the initiator could proceed to next stage, providing DED and etc.

‐ The study team was recommended to meet Mr. Arshad, Sub Directorate of Freeways and Urban Roads, for technical advice and Sub Directorate of Financing and Foreign Partnership to have a deep discussion about PPP scheme in Indonesia and its implementation and procedures.

‐ The Study Team was also recommended to have a meeting with Mr. Herry Tzuna. Previously Mr. Herry Tzuna worked at BPJT and also played an important role on PPP project Bali Mandara Toll Road. The study team could learn and receive more information and advice from him.

3. Assistance from Sub-Directorate of Policy and Strategy ‐ Handed a hard copy of Decree of Directorate General of Bina Marga No 03-kpts-db-2010 ‐ Will arrange the meeting on 10 October with Mr. Herry Tzuna (need a follow up) ‐ Will provide soft file of Organizational Structure of Bina Marga ‐ Will provide soft file of Investment Opportunity 2014-issued by BPJT (if available) ‐ Will provide soft file of Presidential Decree No 13 of 2010 on Amendment of Presidential

Decree no 67 of 2005 on Government Cooperation with Business Entity for Infrastructure procurement.

‐ Will try to provide the sample of PPP project (Bali Mandara)

The meeting djourned at 11:30.

7



Attendance : Indonesia Toll Road Authority, Ministry of Public Works

Mr. Achmad Gani (Head) Mr. Abram (Head of Sub Directorate) Ms. Yuli Khaeriah (staff)

Study Team Mr. Yamauchi, Mr. Saita, Mr. Mikura, Mr. Kurokawa, Ms. Lediah


On behalf of the Study Team, Team Leader, Mr Yamauchi expressed his gratitude to Head of BPJT, Mr. Achmad Gani and his staff for their presence in the meeting. Briefly, the Team Leader presented the purpose, content, schedule and expectation for this study. The main objective of the meeting is to receive advises, inputs and any related information from BPJT. The presentation also will be presented for Makassar Mayor and other stakeholders.

2. Highlights of Discussion ‐ The Study Team mentioned that the Phase I will be proposed as unsolicited project. ‐ BPJT mentioned that it would be better if the local government is the one who proposes

to the central government rather than private company. The priority will be higher. ‐ For unsolicited project, the proposal should be addressed to the Minister of Public Works,

then the Minister will be disposed to BPJT and Bina Marga to review and evaluate. (In BPJT, technically it will be reviewed by Mr. Abram and Financially by Mr. Roy).

‐ For unsolicited project, government will not give any financial support. ‐ For solicited Project, the form of government support is not to give the fund directly. The

form could help to construct the part of the structure or part of land acquisition. ‐ The difference between solicited and unsolicited project is that in solicited project the

project will be in line and include in national spatial master plan and the initiator is the state government. The unsolicited project proposed by the local government or private company and no state budget will be given to this project because it is considered not a high priority. BPJT and Bina Marga have to evaluate the importance of unsolicited project to be a solicited project.

‐ The process of unsolicited project is faster than solicited project. The example are Tanjung Priuk Access Road, Bali Mandara Toll Road, Suramadu Bridge, etc. Because the unsolicited project have the complete FS, DED and financing scheme. It will speed up the process up to finalization.

‐ Regarding the revenue distribution in case of combining some of highway Operator Company, BPJT (Government) will not be involved in the agreement and process between operators. It will be business-to-business relationship.

‐ The new president is not officially inaugurated yet. The President has intended to construct 2000km new road (toll or non-toll road). However, for 5 years plan, state government will not have enough budget and need more PPP projects. Other vision is to make a maritime oriented transportation, means that the development in port area will be intensive.

‐ BPJT recommended the study team that local government (provincial) will be the one who proposes the project. Or Government to Government Agreement is to be concluded.

3. Assistance from BPJT ‐ Copy of Procedure Record of PPP project Bali Mandara Toll Road (need to follow up).

8


9



Attendance : Sub Directorate of Freeways and Urban Roads,

Directorate General of Bina Marga

Mr. Arsyad (Deputy Director) Mr. Vici Hartawan (Head of Section) Mr. Rizky Ardiyanto (Staff)

Study Team Mr. Yamauchi, Mr. Saita, Mr. Mikura, Mr. Kurokawa, Ms Lediah

1. Courtesy Visit to Sub Directorate of Freeways and Urban Roads:

‐ Team Leader, Mr. Yamauchi introduced the member of study team to Mr. Arsyad, Mr.

Vici and Mr. Rizky. After brief the Study (Makassar Toll Road Project), Study Team requested his cooperation in the future for meeting and discussion related to the study and PPP scheme.

‐ Mr. Vici mentioned that recently Sub Directorate of Freeways and Urban Roads received a letter from South Sulawesi Province regarding Makassar Toll Road. Unfortunately at the meeting, the Study Team could not see the letter.

‐ After Survey from Makassar, the Study Team intends to have a meeting with Sub Directorate of Freeways and Urban Roads.


10


Date/Time: Wednesday, 01 Oct 2014 9:15-10:45

Attendance : PT. Komponindo Betonjaya (KOBE)

Mr. Tomonori Kato (President Director) Mr. Kunihiro Saruwatari (General Manager)

PS Mitsubishi Construction Co., Ltd.

Mr. Hidettoshi Isogane (Chief Representative)



‐ Mr. Yamauchi briefed the project outline with showing location map. ‐ He explained that the purpose of this visit was to interview with Japanese affiliated

companies about beneficiaries of the project.

2. Brief explanation of company profile of KOBE

Mr. Kato briefed a company profile of KOBE.

3. Discussion ‐ Under the assumption that KOBE would provide concrete products to Makassar, there

were two possibilities; 1) producing products in Jakarta and transfer them to Makassar or 2) building a factory in Makassar and produce products. In case of 2), good materials should be obtained in Makassar. The price of forwarder depended on the total amount of the products, therefore it would be decided upon comprehensive considerations. At this time, there is a small possibility to build new factory in Makassar.

‐ Regarding the quality of KOBE and Indonesian products; T-girder and I-girder were almost same quality in these days, however U-girder of KOBE was still much superior to Indonesian products. KOBE may not produce huge culverts but small ones. KOBE was trying to commercialize high-strength concrete products (80N/mm2).

‐ Regarding the constructing schedule; under the assumption that 2,500 U-girders for phase I (about 4.5km), it came about 160 thousand tons and about 3 years were required for producing and about 5 years for the whole construction period.

‐ Regarding construction prices in Makassar, material prices were almost same as ones in Jakarta, whereas labor costs were cheaper than ones in Jakarta.

‐ Regarding qualities of Indonesian concrete products, there were some structures seemed to be more than 10 years in operation even though which were just starting operation. Some structures, concrete honeycombed just after starting the operation. Wika Betton, the Indonesian concrete company which established joint venture Company with KOBE, could produce I-girders and T-girders. Wika Betton also announced that they could produce U-girders, however, in fact their products could not satisfy quality set for Tanjung Puriok Access road project, and therefore KOBE assisted them by lending molds. In other cases, Indonesian construction companies constructed viaduct roads in Jakarta, which were Antasari and Casabranka, however their evenness were not good. One of the differences between Japanese companies and Indonesian companies were ability of segment control and it came in the difference of quality.

‐ Regarding the advantages of Japanese products, life cycle costs could be a point, however, it may be hard to be valued, since it was difficult to be evaluated quantitatively, furthermore it was not conscious of a life time of structures in developing countries. To

11

prevent salt damage, properly control coverage and moderate-heat portland cement were solutions to be provided by Japanese products.

‐ Indonesia uses AASHTO, JIS, and SNI as standards.


4. Site Visit After the meeting, Study Team visited the factory.

12


Date/Time: Monday, 06 Oct 2014 10.00AM-11.00AM

Attendance : Consular Office Makassar Mr. Tani (Consular) Mr. Kuzusaki (Deputy Consular)

Study Team Mr. Yamauchi, Mr. Saita, Mr. Kurokawa, Mr. Yamanashi


‐ Study Team explained the project briefly. ‐ Study Team requested to have safety status, as there was news about motor cycle gang.

2. Information from Consular Office ‐ Construction material product company (water pipes, precast materials etc.) Yamau in

Kyushu is planning to build factory in Makassar as the company signed memo of understanding in May 2014 with Bosowa group (memo of understanding has been shown in home page of the company).

‐ Economic growth in South Sulawesi is high (7 to 8 %), whereas it is only 5 to 6 % in whole Indonesia.

‐ Mr. Jusuf Kalla will be vice president again, who is from Makassar and then project timing seems good.

‐ JICA will start project which is organized by private company, government and university in order to promote small to medium size Japanese companies. There will be a few Japanese experts living in Makassar for several years.

‐ Area along phase 1 of the project may be developed as residential area. ‐ Japanese companies in Makassar city are as follows;

AMDA: agricultural development related with JICA project Marki: product of Buddhist altar and export to Japan Toarco Toraja: Coffee product (local company established by Japanese coffee company)

‐ Registered Japanese in Makassar is 30 no and 17 no are registered to Japanese resident association.

3. Advice ‐ It is important to check number using current toll road and viability.

4. Safety

‐ Motor cycle gang attacked convenient stores at night and polices controls them strictly. As those attacks happened at night, do not go out in those hours.

5. Other ‐ As Foreign Ministry set up “Tabireji”, it is recommended to use for safety when visiting

abroad for short time.


13


Date/Time: Monday, 06 Oct 2014 10.00AM-13.15PM

Attendance : JICA Makassar Office Dr. Inaba Makoto (Programme Manager for Regional Development) Mr. Kadir (Advisor)

Study Team Mr. Yamauchi, Mr. Saita, Mr. Kurokawa, Mr. Yamanashi


Study Team explained the project briefly.

2. Japanese Cooperation to Makassar and East Indonesia ‐ Makassar is a portal of east Indonesia. JICA has supported more than 60 projects for the

east Indonesia development. Recently the number of projects has decreased and the Japanese presence seems to be lower than before, however developed human networks are to be utilized by Japanese enterprises and it would increase the Japanese presence.

‐ Yamau, concrete product company in Kyushu, concluded MOU with Bosowa group. Yamanu is going to build new factory in Kima industrial park in Makassar in order to start operating in April or May in 2015.

‐ Formerly 100 Japanese registered in Makassar, however nowadays only about 20 Japanese register.

‐ In 2016, JICA will support a project reconstructing campus for faculty of engineering of Hassanudin University in Gowa. Procuring and installing testing machines, and developing a public private cooperation center will be included in the project. Three long term experts and 7 to 8 short term experts will be assigned for 5 years during project period. Dr. Inaba expressed his expectation that Japanese companies would utilize the public private cooperation center.

3. Issues in Makassar ‐ Over loading trucks carrying construction materials were an issue. ‐ Public transportation in Makassar was poor and mainly consists of so called Pete-pete,

public shared buses of minivans. Pete-pete stops wherever on the road no matter bus stops or elsewhere, double parking and triple parking on the road are common.

‐ One lane of the road is sometimes occupied by parking cars and venders, therefore traffic lanes are reduced.

4. Formulation of the Project ‐ The deputy governor of the South Sulawesi province chairs the Maminasata developing

board. Sometimes the spatial plans of province and that of the city are not well harmonized. Therefore it is recommended to confirm with the mayor to make the plan consistent. To coordinate city plan and province plan, provincial PU is in charge.

‐ Since this study is preliminary stage and it is enough to explain study result to concerning agencies. It is recommended to consult with concerning agencies at feasibility study stage in advance.

‐ The Petarani road is joint-controlled by central PU and province, whereas the city manages trees on the road. A few years ago, rehabilitation of the Petarani road was conducted and a contractor cut tree without consult with the city. It caused a trouble.

5. Safety

14

‐ The intersection Urip, where is the starting point of phase I, is a common place of demonstration by public in front of the law court.

‐ Motor cycle gangs are gathering at shopping malls and downtown. The Consular office provides hot spot map in Makassar.


15


Date/Time: Monday, 06 Oct 2014 01.30PM-04.00PM

Attendance : Natura Industrial Estate Mr. Mukhlis P Handoko (General Manager) Mr. Gestananto Agustin (Site Manager) Two others

Nusantara Infrastructure (NI)

Mr. Ismail Maliungan (Deputy Director)

Study Team Mr. Yamauchi, Mr. Saita,, Mr. Kurokawa, Ms Lediah


‐ On behalf of Study Team, Mr. Ismail (NI) explained the project briefly. ‐ Study Team informed that main objectives are to recognize relation between development

of industrial estate and extension of toll road and to capture positive effects to Japanese companies from the project.

2. Explanation of development plan from Natura industrial Estate

‐ Eco city Natura Industrial Estate plans consists of industrial area, resident area, office space, university and shopping malls together, area of which is 600 to 700 ha. This will be complete in 20nyears.

‐ Connection road to existing road network is being constructed.

3. Discussion ‐ Industrial area was opened in 2004 and there are 150 storage buildings with 300

companies in the estate. Space is currently occupied in 20 % only. ‐ Traffic from and to the industrial estate is about 3000 no/day, of which trucks are about

1000 no/day. Mostly use toll road to and from port. ‐ One Japanese company (Marubeni-Itochu-Steel) occupies here and transports products to

east Indonesia. ‐ Parent company of Natura Estate exports agricultural products such as cacao, cassava etc.

and imports soybean from USA and Australia to east Indonesia. ‐ Currently new port is being developed about 5 km away from here and port capacity will

be three times. Then accessibility becomes better. ‐ If toll road extension provides better access, toll fee could be raised. ‐ Development (residents and shopping malls) along seaside of Makassar city in south of

new port is managed by Lippo group.

4. Construction site visit

The meeting adjourned at 4pm.

16


Date/Time: Tuesday, 07 Oct 2014 13.00PM-15.00PM

Attendance : Makassar City Mayor Mr. Mohammad Ramdhan Pomanto Head of Bappeda Mr Syahrir Sappaile Head of Transport Mr Muh. Sabri Head of PU Mr Muh.Ansar Head of Spatial Planning and Building Department Mr Denny Hidayat Secretary of Spatial Planning and Building Department Mr Sukri Hasanuddin

Nusantara Infrastructure (NI / MUN)

Director Mr. Ricky Camelien Director Mr. Anwar Toha Deputy Director Mr. Ismail Malliungan General Manager Ms Deden Rochmawaty Corporate Affairs Ms Putri Seruni

Nexco West Chief Representative Mr. Wada General Affair Mr. Sugiono

Study Team (ST) Mr. Yamauchi, Mr. Saita, Mr. Mikura, Mr. Kurokawa, Mr. Yamanashi, Mr. Ito, Mr. Osumi, Mr. Kunimasa, Ms Lediah

1. Opening by Mayor

‐ Mayor opened the meeting by welcoming Japan Study Team and introducing relevant staff from Bappeda, Transport, PU, City Plan etc.

2. Opening and Introduction of NI, MUN and Japan Study Team by NI

‐ General Manager of NI introduced NI, MUN, NEXCO West and Japan Study Team consisting four companies (Katahira & Engineers International: KEI, West Nippon Expressway Company: NEXCO-W, Japan Expressway International Company: JEXWAY and Katahira & Engineers: KE).

3. Brief of City Plan by Mayor ‐ Mayor briefed Makassar City Spatial Plan by showing two drawings in display. ‐ In regard to toll road plans, Mayor indicated three routes as follows. Sea side toll road on reclaimed ground from south to north East and west connected corridor along Jl. Hertasning, Jl. Rappocini Raya and Jl.

Larong Pasewang to reach sea side Extension of section 2 toll road through Jl. Andi Pangeran Pettarani, crossing Jl. Sultan

Alaudin and along Sungai Jeneberang to reach seaside ‐ Mayor stressed that reclamation works will be commenced shortly and expected to

complete in three years.

4. Brief of Study on Makassar Toll Road Project by Study Team ‐ ST explained the Toll Road Project, using the presentation file which consists two phases

as follows Phase 1: 4.5 km long from end of section 2 along Jl. Andi Pangeran Pettarani to Jl.

Sultan Alaudin Phase 2 Option A: 7.0 km long from end of Phase 1 to south (Sungai Jeneberang) then

along Sungai to reach seaside

17

Phase 2 Option B: 4.0 km long from end of Phase 1 to east (along Jl. Sultan Alaudin ) to reach seaside

‐ ST added the study is targeted to be PPP scheme and then financial viability could be most crucial.

5. Discussions ‐ ST requested to confirm whether ST plan coincides with City Plan or not.

Mayor replied that ST’s Phase 1 & Phase 2 Option A is within the city plan but Phase 2 Option B is not. Mayor requested ST to investigate viability of the route along with Jl. Hertasning, Jl. Rappocini Raya and Jl. Larong Pasewang to reach sea side, which could be part of east west corridor stated in the city plan. Mayor further requested ST to consider seaside toll road as higher priority in the city plan in addition. ST replied that ST would incorporate Mayor request in the report as much as possible.

‐ ST explained there would be two alternative ideas for toll road structure (at grade or viaduct) in phase 1 and informed that both cases would be studied for viability. Mayor replied that viaduct is preferable in terms of road capacity but understood to consider viability of project (construction cost to minimize).

‐ ST explained PPP proposal process to State Authority of the project and asked whether local government could be an initiator for PPP proposal or not. Mayor replied that local governments (Makassar city and surrounding local governments- Gowa, Maros etc.) would be an initiator.

‐ ST explained Project Implementation Schedule again (tender & construction from 2017) and asked Mayor for comments. Mayor replied that the schedule could be put earlier as possible.

‐ ST likes to have relation of development for port, residential areas / malls / recreation parks and industrial parks in or nearby Makassar city with the city plan. Mayor replied that all development plans are in the city plan.

‐ ST requested Mayor to nominate department and staff for detail discussion of ST proposal. Mayor nominated his staffs for detail discussion with ST in future.

‐ ST informed that ST would come again in middle of November 2014 for further discussion of ST proposal. Mayor replied that ST is welcome for the discussion again.


18


Date/Time: Wednesday, 08 Oct 2014 10.00AM-11.30AM

Attendance : Pelindo IV Mr. Arwin (HP 0813 4271 2416, email [email protected]) Mr. xxx


Director Mr. Ricky Camelien Director Mr. Anwar Toha Deputy Director Mr. Ismail Malliungan

Nexco West Chief Representative Mr. Wada General Affair Mr. Sugiono

Study Team (ST) Mr. Yamauchi, Mr. Saita, Mr. Kurokawa,

1. Presentation by Pelindo IV Mr. Arwin

‐ Present condition of port: 750 thousand TEU capacity and actual container handling 650 thousand TEU, which will be full capacity in 2017.

‐ New port development (phase 1): construction will start within 2014 (await final approval of MOT), Capacity eventually becomes 9 million TEU with three stages

‐ Port container handling capacity: 3 million TEU in 2030 ‐ Possible toll road routes for connection between port and toll road: three alternatives were

proposed by consultant and two were prepared by Pelindo IV. Length is around 1.5 to 2.5 km and land acquisition is needed about 3 to 5 ha.

2. Discussions

‐ ST asked How many traffic uses toll road from and to port. Pelindo IV informed about 2000 nos / day gone through toll road from and to port. About 70 % of tracks are in from JKT and Surabaya and 30 % are out.

‐ Pelind IV stated that economic growth is 7 – 8 % /year in whole Sulawesi and 10 % in Makassar.

‐ ST asked port facility dimension and Pelindo IV replied that depth of water will be 14 m from 9 and 12 m, and there will be 1 km long berth and total area be 130 ha.

‐ Pelindo IV explained that passenger terminal will be moved to south (Takalar) in 2017 -2018.

‐ Process of development: Plan ⇒ Comments ⇒ Revised Plan ⇒ City ⇒ MOT ⇒ Construction

3. Presentation file was received.

4. Pelindo IV guided ST for checking port facilities.


19


Date/Time: Wednesday, 08 Oct 2014 11.00AM-12.00AM

Attendance : Makassar City PU Mr.Hamka, Mr.Darlis, Mr.Tajuddin, Mr.Andi

Makassar City Planning Department

Mr.Deny


Senior manager Mr. Vembrie Siswosoebrotho

Study Team (ST) Mr. Yamanashi, Mr. Ito, Mr. Osumi, Mr. Kunimasa

1. Spatial Plan of the Makassar City

‐ The latest spatial plan was the plan which the mayor briefed to the Study Team (ST) the day before the meeting. The plan was made by the mayor by himself.

‐ The reclamation of the Losari Beach was completed. A part of planned reclamations were on going but most of them were not started yet.

2. Other information

‐ Regarding right of way (ROW) of the Roppochini road was discussed. The city PU understood the Roppochini had 2 lanes with 7 m width, however ST pointed out that the ROW should include ditches beside the road as well and both party concluded that 13 m was width of ROW.

‐ A ramp at the intersection of URIP and Pettarani was planned to construct as underpass by Sulawesi PU.

‐ The Makassar PU provided some BOQs of road constructions and rehabilitations for reference.

The meeting djourned at 12am.

20


Date/Time: Wednesday, 08 Oct 2014 03.00PM-04.00PM

Attendance : PU Sulawesi Mr. Bosar H Pasaribu, Mr. Henry Kwens, Mr. Karamullah, Mr. Syufullah


Mr. Ismail Maliungan (Deputy Director)

Study Team Mr. Yamauchi, Mr. Yamanashi, Mr. Kurokawa


‐ On behalf of Study Team, Mr. Ismail (NI) explained the project briefly.

2. Comments from PU Sulawesi ‐ Mamminasata bypass will be constructed from north 13 km next year (map received). ‐ Within Makassar city, there are three major road projects, such as waterfront road planned

by mayor, Makassar toll road (the Project) and road development planned by PU and it will be difficult to develop together. These roads shall be gradually constructed, following economic growth.

3. Discussion ‐ Drawings of flyover along Urip Sumoharjo at the end of current toll road will be handed

over to Study Team tomorrow. Underpass plan at the junction of Urip Sumoharjo and Pettarani will be revised and postponed for construction.

‐ There is no standard for geometry of national road and it is considered enough when width of lane maintains 3.5 m, shoulder 0.5 m and center median 1 m.

‐ There are several national roads in Makassar city and the map showing national roads are received.

‐ There are trees along center median in Pettarani and when viaduct for toll road is constructed along Pettarani, those trees shall be removed. NGO will protest removal as negative impact on environment (generally 10 trees to be planted for compensation of one tree removal).

‐ When at-grade road for toll road is constructed along Pettarani, current capacity (4 lanes) will not be maintained and therefore it is difficult. There are three major junctions along Pettarani and those may not be closed by at-grade toll road.

‐ It will be no problems when toll road is constructed within road reserve of national road. Land acquisition for toll road is unnecessary.


21



Attendance : Environmental Department, Makassar City

Mr. Jaming (Head) Mr. Nilman


Mr. Ryan

Study Team Mr. Kunimasa

1. Cutting tree on the road

‐ There was a “Green Area Rule”, which stipulated to keep green area for 30% of the city area. In case cutting trees, it required the local government to compensate trees to plant.

‐ The AMDAL was required to get approval of implementation of the project. The technical working group for AMDAL would be formulated and the project would be studied. The technical working group consisted of specialists from the University and PU, et al.

‐ The AMDAL took more than 4 months in general.

2. Request for cooperation Mr. Kunimasa informed the environmental specialist of the Study Team would come in November, and requested to cooperate with him.

3. Recommendation of AMDAL consultant Mr. Jamaing introduced Professor Laode, head of the Center for Environmental Research & Development in Hassanudin University.


22


Date/Time: Friday, 10 Oct 2014 13:00-14:00

Attendance : Center for Environmental Research & Development in Hassanudin University

Prof. Dr. Laude Asrul, Dr. Alimuddin Assegaf

Faculty of Engineering Dr. Ir. Rudy Djamaluddin


Mr. Ryan

Study Team Mr. Kunimasa

1. AMDAL

‐ The AMDAL was required to get approval of implementation of the project. A Consultant conducting AMDAL must have a license and the center for Environmental Research & Development had the license and well experienced.

‐ The base line survey conducting at IEE stage was not obligation and that could be conducted any one who did not have the license.

2. Past working record of the center

‐ The center conducted environmental monitoring of existing toll roads in Makassar. ‐ The center conducted AMDAL for the solid waste project at Gowa conducted by JICA.

3. Cutting trees and land acquisitions

‐ Cutting trees shall be done in accordance with the law. It required public consultations with the residents. In addition, it required to compensate trees to plant at somewhere.

‐ Generally, land acquisitions were the most crucial issue in Indonesia. For example, the project improving Makassar - Parepare road had been almost completed recently, it took about 8 years for land acquisition and still there were remaining houses. Especially, the city center was difficult for land acquisitions and resettlements. To conduct the road project, it was highly important to get a strong partner in the region and supports from the local government.

4. Request for cooperation Mr. Kunimasa informed the environmental specialist of the Study Team would come in November, and requested to cooperate with him.

5. Other information

‐ There were many staffs studied in Japan in the Hassanudin University. For instance, Dr. Aliudin studied in the Kyoto University and Dr. Rudy studied in the Kyushu University.

‐ The new JICA project, constructing the new campus of the faculty of engineering, contained a program sending 40 persons to Japan to study for 4 years. In addition, 20 persons studied in Japan every year.


23


Date/Time: Friday, 10 October 2014 08.00 AM- 09.00 AM

Attendance : Sub-Directorate of Policy and Strategy, Directorate of Planning and Programming, Bina Marga

Mr. Herry Tzuna (Head) Mr. Fadil Arif Nadia

Study Team Mr. Yamauchi, Mr. Saita, Mr. Mikura, Mr. Kurokawa, Mr. Tominaga, Ms Lediah

1. Brief of Study on Makassar Toll Road Project

‐ On behalf of Study Team (ST), Mr. Yamauchi presented the expected outputs and implementation schedule for Makassar Toll Road Project Study.

2. Highlights of Discussion ‐ Mr. Herry mentioned that even though the project initiator is different for solicited and

unsolicited project, in government officer point of view, at the end the Government will be responsible for the product. The Government needs an accurate and detail study to avoid problems.

‐ Mr. Herry mentioned that even before Full FS Study (JICA PPP Study), some of preparation such as EIA (AMDAL) and Land Acquisition and resettlement Action Plan (LARAP) can be conducted and integrated in Pre FS Study, if possible.

‐ Mr. Herry explained that private company may start the initial intention for unsolicited project, as it will begin with Pre FS and continue with Full FS. There are two options based on Bappenas guideline. During the pre FS, the initial intention could be submitted and if all requirements already achieved for unsolicited project, the initiator could prepare for tender. Or finish the FS Study first then submit the proposal.

‐ Mr. Herry suggested to submit the formal intention letter (at either pre FS or FS stage) before other Consultant will claim /take over the idea. The formal intention addressed to the Minister of Public Works copy to BPJT and Bina Marga.

‐ Mr. Herry suggested the ST to propose a complete ring toll road as a whole plan rather than only proposed 2 phases. The plan could be divided into some construction phase/staging.

‐ Mr. Herry mentioned that to outsmart the cost for land acquisition in case of land acquisition, the initiator could have a cooperation with local government to “invest” their money into the project. Later the initiator could provide a scheme how to restore the investment. For unsolicited project, Central government will not spend any state budget.

‐ Mr. Herry remind the ST to concern about the PPP analysis and to produce an attractive scheme (economic and financially feasible).

‐ Mr. Herry mentioned that if the initiator need a VGF (Viability Gap Fund), the initiator could have a cooperation with land developer (such as Ciputra, Lippo, etc) to outsmart the high cost. Later the developer could incorporated that cost to their property/business product.

The meeting adjourned at 9am.

24


Date/Time: Monday, 24 Nov 2014 14.30PM-16.00PM

Attendance : Makassar City Mayor Mr. Mohammad Ramdhan Pomanto Bappeda Mr. Masri Tiro Head of Regional Disaster Management Agency (BPBD) Mr. Muh. Ismounandar Head of PU Mr. Muh Ansar Head of Financial and City Asset’s Management (BPKA) Mr. Erwin Syafruddin


Director Mr. Ricky Camelien Deputy Director Mr. Ismail Malliungan Senior manager Mr. Vembrie Siswosoebrotho Corporate Affairs Ms. Putri Seruni

Study Team (ST) Mr. Yamauchi, Mr. Saita, Mr. Tanoguchi, Mr. Kurokawa, Mr. Yamanashi, Mr. Tominaga, Mr. Kunimasa, Ms Lediah

1. Opening by Mayor

‐ The Mayor opened the meeting by welcoming Japan Study Team and allowed the Study Team (ST) to present the presentation on their interim report.

2. Brief of Study on Makassar Toll Road Project by ST

‐ ST explained the Makassar Toll Road Project which consists of two phases, using the presentation file as follows Phase 1: 4.3 km long from end of current toll road section 2 along Jl. Andi Pangeran

Pettarani to Jl. Sultan Alaudin, there are two types of road structure (a) At-Grade + Viaduct at major junctions and (b) all Viaduct

Phase 2 Option A: 6.2 km long from end of Phase 1 to south (Jeneberang river) then along the river to reach seaside

Phase 2 Option B: 3.8 km long from middle of Phase 1 (junction of Hertasning) to east (along Rappocini) and to reach seaside

ST explained traffic demand forecast, environmental & social considerations (impact in Phase 2 for land acquisition and resettlement is huge), implementation schedule, project cost and economic & financial analysis.

Based on the analysis, phase 1 viaduct structure all the way with tariff to raise and revenue sharing with current SPCs is preferable. Phase 2 Option A is preferable because of more viability than Option B but land acquisition and resettlement shall be taken care by state authority and tariff to be raised.

‐ ST requested to have discussions with Makassar city for determination of direction for Phase 1 and 2, responsibility for land acquisition and resettlement, procedure & initiator for PPP proposal to state authority and implementation schedule for Makassar Spatial Plan.

3. Brief Update of City Plan by Mayor ‐ The Mayor mentioned that the Governor of South Sulawesi Province had a meeting with

Mr. President and agreed the importance of waterfront toll road. Both Mr. President and the Governor believe that this toll road should be higher priority. Waterfront toll road also in line with one of Mr. President’s focus that is to develop and improve Indonesia as maritime country.

25

‐ Previously the proposed waterfront toll road’s length was 10.3 km, but the Central Government decided to construct it elevated, PPP scheme and total length of 50 km. Elevated option is taken to avoid social and financial impact on society. This toll road does not need any land acquisition.

‐ Mayor stressed that reclamation works will be commenced shortly.

4. Discussions ‐ The Mayor agreed (b) all Viaduct in Phase 1 to avoid any route disconnection. ST

mentioned that this option needs tariff to be raised and revenue sharing with current Special Purpose Company (SPC)/Toll Operator.

‐ The Mayor also mentioned his concerns about greenery around Pettarani after constructed as new toll road. In reply, ST will plan to install planting zones both side of Pettarani.

‐ The Mayor requested ST to sturdy further both options (A & B) in Phase 2, as both routes need to be developed. He also requested ST study viaduct structure for Option A in order to reduce land acquisition (viaduct along Jeneberang River does not need land to acquire). ST has replied affirmative to those requests.

‐ Regarding the Land Acquisition and Resettlement, the Mayor explained that for unsolicited project the land acquisition and resettlement will be done by investor, for solicited project it will be by Government (Bina Marga).

‐ Mayor emphasized that the cost for land acquisition could not be as much as the estimation made by Study Team. 60% -70% of land in mentioned areas (waterfront, phase 1 and phase 2) are owned by Government. Some parts in Phase 2 area are owned by private. ST will review further for land acquisition. The Mayor appointed Mr. Masir Tiro (Bappeda) for subsequent discussions with ST for land acquisition and resettlement issues.

‐ The Mayor agreed to form up team with Japanese side and NI for applying PPP project in Phase 1 and 2 to PU and Bappenas

‐ The Mayor also appointed Mr. Irwan (Mayor’s Consultant), who prepared Makassar Spatial plan and requested ST to obtain whatever the information about the Plan (after the meeting, he has provided and promised to provide the information ST was looking for).

‐ The Mayor informed the total budget for all phases, which have been acknowledged by Mr. President and Governor, based on the assumption of 70% of land owned by Government.

‐ Mayor is pleased with the ideas and discussion with ST and looking forward to having follow-up result based on today’s discussion.

The meeting adjourned at 16.00 PM.

26


Date/Time: Tuesday, 25 Nov 2014 10.25 AM-11.10 AM

Attendance : Bina Marga, South Sulawesi Province

Ms. Astina Syamsurijal


Mr. Ryan Mr. Fatur

Study Team (ST) Mr. Yamauchi, Mr. Saita, Mr. Tanoguchi, Mr. Kurokawa, Mr. Yamanashi, Mr. Tominaga, Mr. Kunimasa, Ms. Lediah

1. Introduction

‐ Study Team (ST) introduced all the member to the representative of Bina Marga South Sulawesi Province and explained about the purpose of the meeting. The main purpose of the meeting is to have a discussion on proposed Makassar Toll Road Project.


‐ ST explained the Makassar Toll Road Project which consists of two phases: Phase 1: 4.3 km long from end of section 2 along Jl. Andi Pangeran Pettarani to Jl.

Sultan Alaudin, there are two types of road structure (a) At-Grade + Viaduct at major junctions or (b) all Viaduct

Phase 2 Option A: 6.2 km long from end of Phase 1 to south (Sungai Jeneberang) then along Sungai to reach seaside

Phase 2 Option B: 3.8 km long from middle of Phase 1 (junction of Hertasning to east (along Jl. Sultan Alaudin ) to reach seaside

ST explained the implementation schedule for Phase I and Phase II.

3. Discussion ‐ Ms. Astina mentioned that the current proposal for new toll road from Makassar Mayor

was only for Waterfront toll road. South Sulawesi Province already accepted and approved the proposal. Furthermore, the proposal was already submitted to the Ministry of Public Works. The proposed toll road by ST was not included in the current proposal.

‐ Ms. Astina explained that previously there was an idea of AP Pettarani road becoming a toll road. Also she added that Bina Marga South Sulawesi acknowledged Mayor’s idea to make a connection corridor from East to West.

‐ Ms. Astina mentioned that the focus of Bina Marga South Sulawesi Province were (i) waterfront road; (ii) corridor from East to West; and (iii) middle ring road.

‐ Ms. Astina mentioned that land acquisition for land along Jeneberang River is on process. Part of Hertasning road was already widened and some part of narrow road in this area would be widened and later connected to middle ring road.

‐ Ms. Astina mentioned that land acquisition for land more than 5 hectares, the process will start from planning team, preparation team and implementation team.

a) Planning team will consist of the City and Provincial representatives. Planning team will submit the initial plan to the Governor. Preparation Team will prepare more detail data. The Governor will issue a letter which determined the location of land acquisition.

b) The third party, independent company, will do the land appraisal. c) Preparation Team will also do a socialization about the land acquisition to those

who affected by the land acquisition and assure all parties are agreed. Data

27

consist of approval and list of those who affected by land acquisition will be passed to BPN (National Land Agency) in related/affected area (in this case, BPN Makassar City).

d) Implementation Team will consist of BPN in related area, Province and Ministerial representatives. This team will do the negotiation about land price and using land appraisal’s result as a reference.

e) Land Acquisition cost will be taken from State Budget (APBN) and Balai Besar Ministry of Public Work will use the budget for this purpose.

‐ Ms. Astina introduced and arranged a meeting with BPN Makassar City after this meeting in order to discuss more about land acquisition.

The meeting was adjourned at 11.10 AM.

28


Date/Time: Tuesday, 25 Nov 2014 11.25 AM – 12.30 PM

Attendance : BPN Makassar City Head of BPN Makassar City, Mr. Achmad Kadir Section Head of Land Rights & Land Registration, Mr. Suhartono Section Head of Survey and Mapping, Mr. Hijaz


Mr Ryan Mr Fatur


1. Introduction

‐ Head of BPN Makassar City, Mr Achmad Kadir, introduced two Section Heads in BPN Makassar City.

‐ Study Team (ST) introduced all the member to the representative of BPN Makassar City and explained about the purpose of the meeting. The main purpose of the meeting is to have a detail discussion on land acquisition.



Sultan Alaudin, there are two types of road structure (a) At-Grade + Viaduct at major junctions and (b) all Viaduct


Phase 2 Option B: 3.8 km long from middle of Phase 1 (junction of Hertasning) to east (along Jl. Sultan Alaudin ) and to reach seaside

3. Discussion

‐ Mr. Achmad mentioned that land acquisition process is referred to Law number 2 of 2012 on Land Procurement for Development in the Public Interest.

‐ Mr. Achmad mentioned that for Phase 1, it will not need the land acquisition since the pier will be constructed at the road median which the land is owned by Government (national road). For Phase 2 option A-1 (along Jeneberang River), the land acquisition in this area is considered manageable (low population, land price not too expensive and almost all of land owned by Government) but any construction in this area shall be in line with Makassar City Spatial Plan and policy. If there is no friction with existing spatial plan, then the land acquisition can be done. Currently there is access road along Jeneberang River for maintenance of river.

‐ Mr. Achmad added that for land acquisition in Phase 2 option B, it will face some difficulties. To make a route from Junction of Hertasning toward Sea Side through Rappocini and L.Pasewang, it will be passing economical high-value roads such as Veteran, Sam Ramlatulangi and Rajawali. Even if ST will take another route, it will be still passing other economical high-value roads as well. Hence, this areas have more difficulties than Phase 1 or Phase 2 option A-1 because of high density population, business area, residential area and most of the land is owned by private.

29

‐ Mr Achmad mentioned that in case of Military Camp in option B of Phase 2, the land

acquisition is even more difficult because it needs good coordination with Ministry of Defense and Ministry of Finance. The compensation will not be in form of money but relocation of Military Camp. The new location should have at least same value as before (land price is more less same and strategic location).

‐ Mr Achmad mentioned that Government already has a plan to build a road in south of Pettarani (option A in Phase 2) and will not issue any permit for building construction. But the current condition, in this area is full of houses. In case of this condition, land acquisition will consider manageable. The owner of the land will still get a compensation.

‐ Mr. Achmad explained that it is an Independent Company who will do the appraisal job on land and resettlement. The appraisal result usually more expensive than current land price. This is because many consideration taken to appraisal, all value is counting not only the price of the land and building. The appraisal result will be used as a reference to do a negotiation with the people affected in targeted area.

‐ Mr Achmad briefly showed the mapping of current registered land and its land price using application. This application is not updated and on process to input all data.

‐ Mr Achmad mentioned that 100 meters land from the edge of the river is owned by Government. For smaller river, it is 50 meters.

‐ Mr. Achmad mentioned that in case when the owner of land cannot agree during a negotiation of land price in 30 days, the owner has a right to appeal to court in 14 days. If the decision of court ruled that the appeal filed is not accepted, then the owned shall agree with the result of the last negotiation. If the owner still cannot accepted the court decision, the compensation money will be deposited in the court and the land acquisition process still continue. This kind of process is to assure land acquisition process is going and attract more investment in infrastructure.

‐ Mr Achmad mentioned about phases in land acquisition: a) Planning Stage. This stage carried out by the agency that require a land

acquisition. The team will prepare the program, estimation cost, implementation period in the form of proposal. This proposal submit to Governor of South Sulawesi.

b) Preparation Stage. After receiving by Governor, there will be a dedicated meeting to discuss about land acquisition plan. In this stage, team will do a pubic consultation and making an initial data of affected parties. Team also assure all people who affected by the land acquisition agree with the process and is willing to receive the compensation. After the meeting and above mentioned data are completed as Planning Document, the Governor will issue a decree regarding determination of land acquisition location. The decree and planning document will be sent to BPN Regional Office. Then continue to the following stage.

c) Implementation Stage. For efficiency and speed up the process, BPN Regional Office transfers all data to BPN office in affected area (in this case, BPN Makassar City) for implementation. In this stage, they will start a negotiation about the land price, taking a real data, mapping, inventory and administration.


30


Date/Time: Tuesday, 25 Nov 2014 02.00 PM – 03.30 PM

Attendance : Bappeda South Sulawesi Province

Section Head of Infrastructure Division, Ms Ariany


Mr Ryan Mr Fatur


1. Introduction

‐ Section Head of Infrastructure Division, Ms Ariany welcomed the Study Team (ST).

‐ ST introduced all the member to Ms. Ariany and explained about the purpose of the meeting. The main purpose of the meeting is to have a detail discussion on proposed Makassar Toll Road.



Sultan Alaudin, there are two types of road structure (a) At-Grade + Viaduct at major junctions and (b) all Viaduct


Phase 2 Option B: 3.8 km long from middle of Phase 1 (junction of Hertasning) to east (along Jl. Sultan Alaudin ) and to reach seaside

- ST explained the implementation schedule for Phase 1 and Phase 2.

3. Discussion ‐ Ms. Ariany mentioned that Makassar City Spatial Plan is not official yet in term of the

plan not yet signed and supported with Regional Regulation. The status is considered as a draft.

‐ Regarding land Acquisition in Phase 2-B, Ms Ariany mentioned that the land price is already expensive and the area is economically developed. It is considered difficult to acquire those lands comparing the land for Phase 2-A.

‐ Ms Ariany mentioned that Makassar City Mayor has a plan to connect existing port to a new port in Takalar.

‐ ST mentioned the construction cost can be covered by the revenue from toll road but for land acquisition in Phase 2, it will need Government support for land acquisition.

‐ Ms. Ariany explained that every 5 years Ministry of Public Works will review The National Spatial Plan (2008-2028), it is the best opportunity to propose a new toll road and explain its necessity to put the plan into the updated version of National Spatial Plan. Ministry of Public Works is on the process of reviewing until next year.

31

‐ Ms Ariany explained that in National Spatial Plan, there are two toll roads existing for Makassar City which is JTSE and BMN. In case where the plan proposed by ST would like to implement in 2019 (Phase 1), it would be better to include this plan into National Spatial Plan.

‐ ST explained that for Phase 1 will be proposed as Unsolicited Project since it does not need any land acquisition and consider as an extension of current toll road. For Phase 2, it will require Government support for land acquisition, therefore it will be proposed as Solicited Project.

‐ Ms Ariany mentioned that because the proposed plan by ST is not included in National Spatial Plan, South Sulawesi Province does not conduct any close coordination with Central Government. The policy to construct those toll roads has not been conveyed to the Ministry of Public Works. Ms. Ariany also added that personally she does not acknowledge the proposed new toll road.

‐ Ms Ariany mentioned that Independent Company will do appraisal of land price. In case where land acquisition is needed and done by Government, the Government needs to allocate State Budget to do that.

The meeting was adjourned at 03.30 PM

32


Date/Time: Thursday, 27 November 2014

09.50 AM – 11.15 AM

Attendance : BPJT Secretary of BPJT, Mr. Arief Witjaksono Member on Board, Mr. Eka Pria Anas Member on Board, Mr. Bambang Eko Head of Technical Division of BPJT, Mr. Abram Barus Staff of Technical Division of BPJT, Ms. Yuli Khaeriah Staff of Technical Division of BPJT, Ms. Ratna Staff, Ms. Yolanda Indah P Staff, Ms. Ratu Intan Staff, Mr. Zamhum Rinaldi

Bina Marga Technical Division

Staff of Freeways and Urban Roads, Mr. Rizky Ardiyanto

Bina Marga

Planning Division

Staff of Sub Directorate of Policy and Strategy, Ms. Rindy Farrah Indah Dewi

Study Team (ST) Mr. Yamauchi, Mr. Saita, Mr. Kurokawa, Mr. Yamanashi, Mr. Tominaga, Mr. Kunimasa, Ms. Lediah

1. Opening

‐ Mr. Eka Pria Anas, as a chairman for this meeting, welcomed the Study Team (ST) and introduced all members from BPJT and Bina Marga who attended in this meeting.

‐ ST also introduced its members to all attendees in the meeting and mentioned about the purpose of the meeting. The purpose of the meeting is to have a discussion on interim report of Pre FS Makassar Toll Road Project.


‐ ST explained the Makassar Toll Road Project which consists of two phases, using the presentation file as follows Phase 1: 4.3 km long from end of current toll road section 2 along Jl. Andi Pangeran






33

3. Discussions ‐ In reply on question why ST selected the route of Phase 2, ST mentioned that both for

Phase 2-A and 2-B is following Makassar City Spatial Plan as well as Mamminasata Plan. ST referred to these plans while deciding the route for Phase 2 of Makassar Toll Road.

‐ Mr. Abram mentioned that ST shall explain in detail about the necessity why Makassar should have new toll roads and what the important reason to have it is.ST mentioned that current Makassar City road network needs a development. Northern-South and East-West corridor shall be developed. Total traffic count for AP Pettarani road (including motorcycle and other vehicle) is about 110,000 pcu per day, which is nearly full. In the other side, condition of East-West Corridor is very poor and need to be strengthened. Above mentioned are the reason why Makassar need to have a better road network.

‐ Mr. Eka Pria Anas mentioned that to determine which Phase should be construct first, Phase 2-A or 2-B, is depend on the development in that area.

‐ ST mentioned that this project initially came from Makassar City and current Toll Operator, PT MUN (holding company of PT JTSE and PT BMN). PT MUN has cooperation with NEXCO West and requested to conduct detail analysis of this project. Makassar City has a plan to develop as smart city and needs to have development in infrastructure.

‐ Mr Bambang Eko mentioned that the EIRR (Economic Internal Rate of Return) seems low, and usually it is expected to be more than 16% to determine that one project is economically feasible. But since this is only pre-FS, ST needs to have detail explanation and analysis on financial in Full FS stage.

‐ ST mentioned that the discussion with Makassar Mayor was made regarding proposed toll road. Makassar Mayor agreed with Phase 1 all viaduct, to be proposed as a unsolicited project and revenue sharing with current toll operator. For Phase 2 it will be a solicited project and needs support from the Government for land acquisition.

‐ Mr Eko Pria Anas mentioned that for proposal of the project, the letter shall be addressed to Minister of Public Works and cc to Bina Marga and BPJT.

‐ Mr. Rizky Ardyanto mentioned that evaluation of the proposal shall be carried out in accordance with the basic regulation, Presidential regulation number 67 of 2005 (which has been amended into number 66 of 2013).

‐ ST mentioned that the proposal for Phase 1 and Phase 2 will be submitted separately. This is because Phase 1 will be proposed as an unsolicited project and not need any land acquisition. Phase 2 will be proposed as a solicited project and need support from the Government.

‐ BPJT and Bina Marga mentioned that until now there is no sample or experience about revenue sharing in toll road. Until 2028, during concession period, revenue sharing is B to B issue, however, after the concession, it requires political decisions.

‐ BPJT and Bina Marga mentioned that when concession period is finished, the toll road will belong to the Government. Furthermore, the Government will decide whether the toll road will be re-tender or leave it free for public.

‐ Mr. Eka Pria Anas mentioned that local government is a responsible party for land acquisition and resettlement for toll road project. However the beget for land acquisition and resettlement is allocated by the government budget.

‐ Mr. Bambang Eko mentioned that actually Viability Gap Fund is in form of money, but the realization up to know, the Government have never provided money.

‐ BPJT and Bina Marga mentioned that they did not receive any information regarding Makassar Mayor Plan to construct waterfront toll road.

‐ BPJT and Bina Marga mentioned that once the project is approved by Bina Marga, the process for both solicited and unsolicited project is same, through tender.

‐ Mr. Eka Pria Anas mentioned that Mr. President planed to construct 1000km of national road and 1000km of toll road in 5 years.

34

‐ Mr. Eka Pria Anas mentioned that PUBLIC PRIVATE PARTNERSHIPS issued by BAPPENAS in 2013 was the latest.

The meeting was adjourned at 11.15 PM.

35


Date/Time: Friday , 28 November 2014 13.40 PM- 14.50 PM

Attendance : Sub Directorate of Policy and Strategy ,

Directorate of Planning,

Bina Marga

Head of Sub Directorate, Mr. Herry Trisaputra Zuna Staff, Ms. Rindy Farrah Indah Dewi

Study Team (ST) Mr. Yamauchi, Mr. Saita, Mr. Kurokawa, Mr. Yamanashi, Mr. Tominaga, Mr. Kunimasa, Ms. Lediah

1. Opening

‐ Mr. Herry T.Z welcomed the Study Team (ST) to his office and allowed ST to have a presentation.

‐ ST presented the Interim Report for Pre FS Makassar Toll Road Project.

2. Brief of Study on Makassar Toll Road Project by ST ‐ ST explained the Makassar Toll Road Project which consists of two phases, using the

presentation file as follows Phase 1: 4.3 km long from end of current toll road section 2 along Jl. Andi Pangeran






3. Discussions

‐ Mr. Herry mentioned that according to the Road Law Number 38 of 2004, if the entity

will construct new road using the existing road, the entity should manage all the traffic and maintain total lane in existing road at least same like before the construction. In case of AP Pettarani with total existing lane is 8 lanes, the 8 lanes should not be reduced after the construction.

‐ Mr. Herry noted that under the revenue sharing scheme proposed by ST, existing toll road

of BMN shall be included in the unsolicited project and to be tendered altogether.

36

Mr. Herry suggested another option to conduct Phase 1 and Phase 2. The existing SPC could propose an extension/additional scope of toll road (for Phase 1 in total 4.3 km) to BPJT. By proposing this, if it is approved, the concession period of current SPC will be extended. The current SPC can have a cooperation with other companies for doing construction & financing and arranging the revenue (revenue sharing or else) for both sides. For Phase 2, he suggested proposing an unsolicited project with a part of water front route. He mentioned in case of the land acquisition born by the government, it was a solicited project and to be decided by Bina Marga.

‐ Mr. Herry mentioned that no example available for above mentioned option.

‐

‐ Mr. Herry mentioned that through one of his friend in Lippo (developer), he knows that Lippo is doing some development at coast area.

‐ Mr. Herry mentioned that to discuss about the embankment plan near Jeneberang River. ST could talk with Directorate of Water Resource, Ministry of Public Works. (Mr. Ari Setiadi Murwanto, Director of Water Resource Management)


37


Date/Time: Wednesday, 26 Nov 2014 10.30AM-12.30PM

Attendance : Hasanuddin University Center for Environmental Studies

Dr. Eng.. Alimuddin Assegaf, Associate Professor

Hasanuddin University Faculty of Engineering, Civil Engineering Department

Transportation System Engineering Laboratory Dr. Eng. Muhammad Isran Ramli Air&Noise Quality Laboratory Dr. Eng. Muralia Hustim

Study Team (ST) Mr. Kunimasa, Mr. Tanoguchi

1. Explanation of project outlines by Study Team

‐ Mr. Tanoguchi explained the project outlines;

2. Questions, answers and discussions ‐ What are the current topics of the environment in/around Makassar city? Reclamation of coastal area, decrease of greenery, poor parks, water pollution

(especially ocean) and road congestion. Of course it is not severer than other big cities including Jakalta.

‐ Are there any nature woodland park, wildlife preservation areas and ecologically important areas in the Makassar city? There are no preservation areas in /around Makassar city.

‐ Are there any special-protected spots which have cultural and historical importance? Fort Rotterdam, Balai Sungai Poonpengan

‐ Are there any Program and Strategy such as National Environmental Policy, etc? Environmental Strategic Plan (Central Government level, Province level)

‐ Are any environmental monitoring surveys implemented in Makassar city? Are there monitoring stations? (such as air quality or noise measurement) Air quality and noise are monitored. City manages the data.

‐ Does the project need any permits except EIA? (Logging, disposal of wastes, ….) Waste control, Traffic impact assessment, Construction permit,

Logging except preservation area is required no permit. However the agreement with community and government is required. Some alternatives may be needed.

‐ Regarding AMDAL, are there any Guidelines of procedure? (English version if possible) including the followings: procedure (flow chart), schedule and duration of procedure, type and scale of project. Presented procedure is generally right. Duration of procedure is 3 months of TOR

phase and 4 months of EIA phase. Total duration is 7 months. This is minimum duration.

‐ Is the project required to AMDAL procedure? This project requires AMDAL procedure based on Decree No.5, 2012. However it

should be confirmed by the Government.

‐ What are the current topics of land acquisition and resettlement environment in/around

Makassar city or Indonesia?

38

Sometimes land acquisition runs into trouble. Some projects spend some years for land acquisition, or have not completed it.

‐ What are the basic laws of land acquisition and resettlement? New law (2012) and relevant legislation are basic laws on land acquisition.


39


Date/Time: Monday, 1 Dec 2014 16.00PM-17.00PM

Attendance : BAPPEDA, Makassar city

Mr. Mr. Masri Tiro

Study Team (ST) Mr. Tanoguchi

1. Questions from ST

‐ Mr. Tanoguchi asked Mr. Masri about the land acquisition system: responsibility, organization, and procedure. Mr. Masri mentioned that land acquisition, which is more than 5ha, is under province.

Less than 5ha is under city. This project (more than 5ha) is managed by province. Mr. Masri mentioned: province governor established a “Committee of land

acquisition”, the committee consists of Transportation Department (province level) and BPN and so on.

Mr. Masri mentioned that the land acquisition system on a public infrastructure was described on the new law, 2012. Particularly “Pasal 21” on the law shows the formation of land acquisition.

Mr. Masri mentioned that compensation for affected people included land price, building price and other properties.

2. Feasibility of land acquisition on the project site

‐ Mr. Tanoguchi explained the alignment and current conditions on the project site. Mr. Masri mentioned: the south of Pettarani road had been studied by JICA (1988 or

2007?), The results of the study shall be examined. Mr. Masri mentioned: the relocation of electric facility along the Jeneberang River is

difficult. The plan should be reconsidered. The relocation of the museums along Jeneberang River needs discussion with the provinces. The B plan of the phase 2 includes the relocation of the Makassar Parliament (Pettarani road). However this is impossible.

Mr. Masri mentioned: generally, the sufficient discussion with affected persons would be required on the land acquisition and relocation. However, decreasing of land acquisition and affected persons should be considered on the planning. Can the alignment of A-1 plan be set in the river or on the edge of the river?


40


Date/Time: Wednesday, 3 Dec 2014 10.30AM-11.30AM

Attendance : Makassar Local Environmental Agency

Arman Zulkifli

Study Team (ST) Mr. Tanoguchi

1. Explanation of project outlines by Study Team

‐ Mr. Tanoguchi explained the project outlines;

2. Questions, answers and discussions ‐ What are the current topics of the environment in/around Makassar city? Waste and traffic are main issues in Makassar city.

‐ Are there any nature woodland park, wildlife preservation areas and ecologically important areas in the Makassar city? There are no preservation areas in /around Makassar city.

‐ Are there any special-protected spots which have cultural and historical importance? Fort Rotterdam, Fort Sumba Opu

‐ Are there any laws and regulations of the environment? Regulation No.69, 2010, Law No.32, 2009,

‐ Are any environmental monitoring surveys implemented in Makassar city? Are there monitoring stations? (such as air quality or noise measurement) Air quality and noise are monitored. City manages the data. We can provide with

monitoring data. ‐ Regarding AMDAL, are there any Guidelines of procedure? (English version if possible)

including the followings: procedure (flow chart), schedule and duration of procedure, type and scale of project. We provide flow chart of AMDAL.

‐ Is the project required to AMDAL procedure? According to the regulation, option A-1 and A-2 of phase 2 are required AMDAL,

and option B, the project is not required AMDAL. ‐ Is AMDAL schedule suitable for the master schedule of the project?

The expiration of AMDAL is three years. If the project does not start within three years after AMDAL completion, the project owner is required re-procedure.


41

Minutes of Discussion (28) Date/Time: Wednesday, 21 January 2015 9.00 AM – 10.00 AM Attendance : JICA Office Mr. Aratsu, Senior Representative,

Mr. Endo, Representative, Mr. Nakao, JICA Expert

Study Team Mr. Yamauchi, Mr. Mikura, Mr. Kurokawa, Mr. Tominaga

Highlights of Discussion

1. Final report regarding the result of survey

The study team submitted a draft final report to METI on January 15th 2015 and will arrange the meeting for final report after the study team go back to Japan.

2. Discussion

In the traffic forecast, total traffic volume of the Phase 1 and the arterial road along the Phase 1 is not so increased. It is because of a plan to construct new ports to cope with increase of volume of passenger and cargo, which will reach its limit in a couple of years. In other words, one reason may be considered that the trip generation of the port does not increase. Other reason may be traffic will flow to the new coastal road.

It is reported that land subsidence was observed at some places in Makassar city.

U turn lane for the arterial road along Phase 1 should be constructed in the project.

Some measures should be taken for dissemination of ETC on-board units because congestion is hardly observed on the existing expressways.

Vehicles passing ETC lane in Tanjung Priok Port Access road should slow down their speed to around 10 km/h due to communication constraints with the computer system of local bank.

The third National Mid-term Development Plan was issued by current government. It is written in bahasa Indonesia and under reviewing by the government. The Master Plan for the Acceleration and Expansion of Economic Development of Indonesia (MP3EI) which was prepared by previous governed is ineffective now and will be reviewed by the government.

Even if the construction of the Phase 2 will not start for long time, Phase 1 itself can be economically viable and profitable as shown in page 20 and 21. It should be avoided that Phase 1 to be delayed due to land acquisition in Phase 2. Moreover, it is better for Phase 2 to have preliminary examination in JICA PPP study and to be classified as category B in JICA’s environmental and social consideration.


42


Date/Time: Wed, 21 Jan 2015 15:00-16:00

Attendance : JICA Mr. Furumoto, First Secretary, Economic Section Construction Attaché Mr. Kitamura, Second Secretary, Energy and Natural Resources




2. Discussion

• The study team recommends the viaduct plan for Phase 1 even though the construction cost of the viaduct plan is more expensive than that of the At-grade plan, because the number of lanes of national road will reduce when the At-grade plan is applied. (The eight lanes of national road will be maintained by the use of space for existing median)

• JICA advises us that the study team should propose this project focusing on Phase 1 because there is no resettlement for Phase 1, which is considered as B category project. If the study team proposes both Phase 1 and 2, the project is considered as A category project, because the number of resettlement is very big. The procedure to solve resettlement issues is very complicated and it takes a lot of time to move the project forward.

• For Phase 2, the land acquisition for option B plan is more difficult than that for option A plan because option B plan is located in urbanized area, and option B is not financially feasible as PPP project. However, the mayor of Makassar thinks that option B is more important than option A in terms of less connection between east and west area.

• ST sets the toll rate based on the existing toll rate. Since MUN think the toll rate for BMN is too low, MUN would like to raise the toll rate when this project is implemented. （JTSE:600Rp/km、BMN 500Rp/km、Bali HWY1000Rp/km）

• ST thinks that it would be necessary to create a “New Makassar Transportation Master Plan” to support the realization of the project.

• National Mid-term development plan includes a variety of projects, which will be implemented in the next 5 years, even though it would be difficult to implement all of these projects.

• Since the project background and policies has been changed according to the change of the president, ST should not mention the MP3PI in the presentation to Indonesian side.

• In regard to subsidy of fuel prices, new government has announced that subsidy to gasoline price is fixed, so that gasoline price will be fluctuated according to oil price.

• New president policy is 1. Becoming ocean nation, 2. Energy development, 3. Food processing industry development and therefore localization policy is unchanged. In addition, export shall be increased whereas import be reduced.


43

Minutes of Discussion (30) Date/Time: Wednesday, 21 January

2015 05.20 PM – 06.35 PM

Attendance : Nusantara Infrastructure Mr. Ricky Camelien Ms. Deden Rochmawaty

NEXCO WEST Mr. Sugiono

Study Team Mr. Yamauchi, Mr. Mikura, Mr. Kurokawa, Mr. Tominaga, Ms. Lediah

Highlights of Discussion 1. Third Visit to Makassar

‐ Regardless the schedule meeting, ST and MUN will head to Makassar on 25/26 January. ‐ MUN still try to make meeting appointments with Mayor, PU and Bappeda Makassar

City. After receive a confirmation on meeting schedule, MUN will inform ST to immediately arrange the flight.

‐ Third Visit is estimated within one day only.

2. Presentation ‐ In general, MUN agreed with the study result and all presentation descriptions. ‐ ST mentioned that they need support letter from the Mayor for JICA PPP Study, the end

of February at the latest. ‐ ST mentioned that JICA also support the idea of revenue sharing and avoiding tender

process. ‐ ST added a future idea of Makassar Master Plan for Urban Transport System. In order to

accommodate this idea, the Mayor needs to propose this to the Central Government (Bina Marga) to put this plan into request of study to JICA.

3. MOU ‐ Mr. Ricky mentioned that he got comments from Legal Division to revise some clause in

MOU. Legal Division recommended to separate FS agreement and PPP scheme & implementation and suggested to proceed with FS Agreement first. Legal Division consider that it is too early to sign an MOU for PPP.

‐ ST mentioned that in order to protect both parties, new clause can be added into MOU to mentioned that the MOU can be disconnected if one party decide not continue the obligation in the MOU..

‐ ST and MUN are open to change the MOU format to accommodate they needs. ‐ ST will wait for revised MOU from MUN and give the feedback on Friday at the latest.

44


Date/Time: Thu, 22 Jan 2015 9:00-10:00

Attendance : JETRO Mr. Aizawa, Vice President Director




2. Discussion

• The third mid-term development plan (2015-2019) was announced by new government on January 14. JETRO is reviewing it now.

• MPA（Metropolitan Priority Area) announced by the previous government was cancelled.

The government will invest in local development in comparison with Java Island. The project of the rapid railway between Jakarta - Surabaya has been frozen.

• The effect of MP3EI is being reviewed. It would be the reference. • The road project in Makassar matches the strategy of the new government to contribute

to local development. It may be accepted to the central government.


45


Date/Time: Friday , 23 January 2015 08.40 AM- 09.40 PM

Attendance : Sub Directorate of Policy and Strategy

Directorate of Planning,

Bina Marga

Head of Sub Directorate, Mr. Herry Trisaputra Zuna Staff, Mr. Hussein Heykal

Study Team (ST) Mr. Yamauchi, Mr. Mikura, Mr. Kurokawa,

Mr. Tominaga

1. Opening and Presentation

‐ Mr. Herry T.Z welcomed the Study Team (ST) to his office and allowed ST to have a presentation.

‐ ST presented the Draft Final Report for Pre FS Makassar Toll Road Project. In short, the results of the study are: a) Every case showed is sufficiently economically viable. b) Phase 1 will proceed as an extension of existing toll road under PT. BMN. With

finance scheme of revenue sharing. This phase doesn’t need any land acquisition and not need tender process. The concession period of PT. BMN shall be extend as well. Phase 1 is a priority.

c) For Phase 2, it is recommended to choose Option A because the result of financial analysis. Option A will proceed as solicited project with support from Government (VGF and land acquisition).

2. Discussions

‐ Mr. Herry mentioned that the comparison table in view of road plan and structure (p 14 of presentation file) is good for understanding options in each phase and suggested to include traffic forecast as comparison item. ST will take the suggestion into consideration.

‐ Mr. Herry wondered how discount rate 12 % in economic analysis (p 20) is determined and requested ST to explain details. Expert of ST will send explanation later.

‐ Mr. Herry questioned grace period 5 years in JIVA investment Fund (p 21) and requested ST clarify.

‐ Mr. Herry mentioned that scheme of Phase 1 Viaduct with toll rate 1,000 IDR shows PIRR 7.9 % (p 22) and the interest rate of JICA Investment Fund is 5 % in p 21. Therefore he said that this scheme could be considered viable although PIRR is less than 16 %. ST replied that PPP guideline prepared by Bina Marag & JICA shows that 16 % of PIRR is suggested criteria and further, possible local partner stated 16 % of PIRR is needed.

‐ Mr．Herry mentioned that Phase 1 had been planned to be toll road before. He suggested that ST shall search what happened in the past in this regard and be careful when proposing extension of existing toll road.

‐ Mr. Herry seemed positive on the ST proposal for Phase 1 (extension of existing toll road BMN) and discussed with ST on that basis.


46

Minutes of Discussion (33) Date/Time: Thursday, 02 Oct 2014 10.00AM-11.20AM

Attendance : Indonesia Toll Road Authority, Ministry of Public Works

Koentjahjo Pamboedi (Board of Member)Zamhur Rimaldi Karnadi (Sub Division of Investment Preparation and Service)

Sub Directorate of Expressway and Urban Roads

K.M.Arsyad (Deputy director) Vici Hatawan Tjaja (Head for Expressway Engineering Section) Rizky Ardiyanto (Staff)

Study Team Mr. Yamauchi, Mr. Tominaga, Mr. Mikura, Mr. Kurokawa, Ms. Lediah

1. Presentation from Study Team

‐ The Study Team (ST) presented the background and necessity of project, project brief, traffic demand forecast, road plan and structure, operation and maintenance, environmental & social considerations, implementations schedule, project cost & economic / financial analysis, PPP proposal, Participation of Japanese Companies and Future Plan. In short, the results of the study are: d) Every case showed is sufficiently economically viable. e) Phase 1 will proceed as an extension of existing toll road under PT. BMN. With


f) For Phase 2, it is recommended to choose Option A because the result of financial analysis. Option A will proceed as solicited project with support from Government (VGF and land acquisition).

2. Highlights of Discussion

‐ ST mentioned that the study also consider about the traffic volume for new port. ‐ ST mentioned that the draft final report was submitted to METI one week ago. The final

report will be submited at the end of February. ST will send the final report for Bina Marga and BPJT also.

‐ Mr. Koentjahjo mentioned that ST should consider to separate the revenue from existing toll (operated by PT. BMN) and the new toll. According to experience, renewing the toll tariff will reap criticism and protest from public.

‐ Mr. Arsyad mentioned that based on Presidential Regulation No 67/2007, all procurement should be in tender. In Indonesia there is no history or experience about revenue sharing financial scheme and extending the concession period because the SPC extend the toll road.

‐ Mr. Koentjahjo added that only because of special cases such as Lapindo Mud Flow in Sidoarjo, East java, finally Government decided to ask Jasa Marga to construct a new toll road (extend the concession period).

‐ ST mentioned that 5% interest rate is covering all risk such as exchange rate risk etc. ‐ Mr. Koentjahjo mentioned that if ST is not sure about the financial assumption, ST could

prepare some simulation to review. ‐ BPJT and Bina Marga suggested ST to have discussion with Mr. Bastari Pandji Indra,

Director of PPP, Bappenas.

47


Date/Time: Monday, 26 January 2014 14.00 - 15.10

Attendance : Bappeda Makassar City

Mr. Syahrir Sappaile ; Mr. Darwis Herman Mr. Denny Hidayat

PU Makassar City Head of PU Mr. Muh Ansar Mr. M. Hamka ; Mr. Tajuddin

Makassar Environment Agency (BLHD Makassar)

Ms. Johanna


Mr. Ricky Camelien; Mr. Anwar Toha; Mr. Ismail Malliungan; Ms Putri Seruni; Mr. Kristianto

Study Team (ST) Mr. Yamauchi, Mr. Mikura, Mr. Kurokawa, Mr.Tominaga, Ms Lediah

1. Presentation from Study Team

‐ ST presented the draft final of Makassar Toll Road that has been submitted to METI 2 weeks ago.

‐ In short, the result of the study are: a. Every case showed is sufficiently economically viable. b. Phase 1 will proceed as an extension of existing toll road under PT. BMN. with


c. For Phase 2, it is recommended to choose Option A, because of the result of financial analysis.. Option A will proceed as solicited project with support from Government (VGF and land acquisition cost is).

‐ Future cooperation expected from Makassar City: a. To issue a support letter on JICA PPP Full Feasibility Study to be commenced shortly b. To make PPP application for First Phase to Central Government together with local

operators & ST c. To request idea of formulation of Makassar Master Plan for Urban Transport System

to the Central Government and proceed with necessary process to JICA

2. Highlights of Discussion ‐ Bappeda Makassar City reminds ST that the study result should be applicable not only

financially and economically viable. It is important to know the willingness to pay from the people as well.

‐ Bappeda reminds ST that one of Makassar City focus is to connect East-West corridor aiming to facilitate access for people from east to west and vice versa.

‐ Mr. Denny, spatial plan division, mentions that the area of Phase 2 has been already prepared not to issue the permission to build any building.

‐ ST mentioned that resettlement cost is included in project cost but Central Government will do the operation (appraisal of land price & discussion with owners).

‐ ST mentioned that current pre-FS only focus on toll road and other route/road corridor will be study and analyze in other study like Makassar Master Plan for Urban Transport System.

‐ Mr. Syahrir mentioned that until now Makassar City Spatial Plan is under discussion. Bappeda cannot mention any targeted year for reclamation or any other plan.

48

‐ Mr. Kristianto mentioned that if Phase 1 is proposed as an extension of BMN existing toll road, it could reduce the risk of project. This scheme is considered beneficial for the investor as well as Makassar City.

Reproduction Prohibited

Study on the Makassar Toll-Road Project in the Republic of Indonesia

Documents

Transcript of Study on the Makassar Toll-Road Project in the Republic of Indonesia