PPP OPPORTUNITIES OF WATER

SUPPLY PROJECTS IN INDONESIA

Presented by:
Tamin M. Zakaria Amin
Chairman of BPPSPAM

National Supporting Agency for Water Supply System Development

Ministry of Public Works and Housing
Republic of Indonesia

Singapore, October 2015

OUTLINE
Preface
Water Supply Services In Indonesia
National Access to Safe Water
6 Basic Principles for Water Resource
Management Restriction
Water Supply Investment Plan Through PPP
Scheme:

On Going Projects
Tender Process
Ready to Offer
Potential
2

INDONESIA AT A GLANCE

According to World Bank (2010), the annual growth rate of Indonesia is 1,21%. In 2019, the
population of Indonesia is estimated to be 268.074.600. Assuming each household consists of 4
people (BPS, 2013). Government of Indonesia is expected to provide 100% access to safe water
by the end of 2019.
3

WATER SUPPLY SERVICES IN INDONESIA

Served by Local Water Supply
Companies called Perusahaan
Daerah Air Minum (PDAM) (safe
access, piped)
There are total 387 PDAMs in
Indonesia and 39 operators are
from private sectors.
Existing house connection
provided by PDAM is about 11
million HC in 2015.
67.78% is served by safe water
access (2013)
Average NRW level is 32,79%
74% of the PDAMs operate
below production cost (non
FCR tariff)

PERFORMANCE OF PDAM 2012 - 2015

HEALTHY
SEHAT

LESS
HEALTHY
KURANG
SEHAT

104

101
52%

70

56

31%

50%
30%
20%

17%

2012 (328
PDAM)

196

182

176

171

SICK
SAKIT

2013 (350
PDAM)

103

96
74

51%
29%
20%

2014 (359
PDAM)

78
53%
26%
21%

2015 (369
(370
PDAM)

Sources: BPPSPAM, 2015

4

NATIONAL ACCESS TO SAFE WATER

As stipulated in National Medium Term Dev. Plan 2015-2019, safe
access to drinking water in 2019 is targeted to be 100% (60 % by
pipeline, 40 % by non pipeline )
100

Water Supply coverage (%)

100
92.6

80

60

70.3
47.9

40

20

29.7

22.4

73.7

78.8

59.7

7%

13%

Raw Water
Budget
PPP

8%
Tidak
Aman
Unsafe
access

4%

41.4

25.3

Safe access to
Aman

26
0
2015

6%

6%

Safe -access,
Aman
Bukan
non piped
Perpipaan

48.4

0
2014

Aman
Perpipaan
Safe -access,

piped

85.1

National
Budget

2016

2017

2018

drinking
water

47%

7%

Bank Loan

CSR

Local Budget

2019

Sources: Directorate General of Human Settlements,

Ministry of Public Works and Housing, 2015

FUNDING NEEDED
TO REACH NATIONAL TARGET
Total Funding Required (2015 2019) = IDR 253 Trillion

IDR 48.07
Trillion

Other Source of
Funding

IDR 204.93
Trillion

National Budget

Sources: Directorate General of Human Settlements,

Ministry of Public Works and Housing, 2015

6 BASIC PRINCIPLES FOR WATER RESOURCE

MANAGEMENT RESTRICTION
1.

2.
3.
4.
5.

6.

Water resource provision could not disrupt human right to

get water resource access;
Human right for water resource should be fulfilled by
government;
Environmental Sustainability;
Government has responsibility to monitor and control water
resource;
Main priority of water resource provision is delegated to
SOE/ROE; and
Government has a possibility to give license for business
entity to conduct water resource provision based on tight
requirement.
*AS STATED IN CONSTITUTIONAL COURT DECISION No. 85/PUU-XI/2013

SUBJECT ON PPP
Contracting Agency
Minister/ Head of Institution/ Head of Region or
any other party that has been delegated to act
on behalf of the Ministry/Institution/Region
Board of Director of SOE / ROE could act as CA
in accordance with the existing law and
regulation

Private Sector
State Owned Enterprise (SOE),
Regional Owned Enterprise (ROE),
Business entity in the form of
Indonesian Limited Liability
Company (PT)
Foreign business entity
Cooperatives

Project bundling is allowed, in which the

Minister/ Head of Institution/ Head of Region
will act together as the CA by signing a MoU and
agreed on who will act as the CA Coordinator.
Based on Presidential Regulation No.38 /2015 on PPP

Slide - 8

GOVERNMENT SUPPORT

Land
Acquisition
Viability
Gap Fund
(VGF)
Guarantee
Raw Water
Facilities

PPP STRUCTURE FOR INDONESIAN

WATER SUPPLY PROJECT
Board of
Director of
SOE / ROE

Sponsors/
Investors

Government
Contracting
Agency

Recourse Agreement

Cooperation Agreement

IIGF
(Govt.Guarantee)

Equity

Special Purpose
Vehicle (SPV)

Guarantee Agreement

Debt

Banks

Service
Contract

O&M Co, EPC Co,

Third parties

Tariff

End
User/Customer

10

PPP PROJECT CYCLE

Project Preparation

Transaction Process and Management

Identification

Tender document

Bidding process

PPP
business
case

Pre Qualification

Winning
Bidder

Shortlisted

Contract

Bidder invitation &

Tender Doc

Financial Close &

Contract
implementation

Aanwizjing &
One on One Meeting

End of Contract

Pre FS

Tender document
process and bidding
team

PPP
nodes

11

WATER SUPPLY INVESTMENT PLAN

THROUGH PPP SCHEME
N
o

Amount of
Project
Location

Capacity (l/s)

Population served
(persons)

Total Investment

(Billion Rupiah)

ON GOING PROJECT
2.600

1.040.000

895

4
TENDER PROCESS

2
READY TO OFFER
2

4.500

1.510.000

2.830

2.300

920.000

1.649,5

12.648

5.160.000

7.401,3

8.630.000

12.775,8

3
4

POTENTIAL
5

TOTAL
13

22.048

12

ON GOING PPP
PROJECT

TANGERANG REGENCY
PT AETRA AIR TANGERANG
Technical and Investment Data
1.

Capacity

2. Investment
Investment today

PPP Cooperation Between Local Government of Tangerang

Regency and PT. Aetra Air Tangerang

Contract Signing: 4 August 2008

Rp 503 Billion
Rp 589 Billion

3. Operational

2010

4. Concession period

25 years

5. Domestic Water Tariff

(2007)

Rp 3.400,-

6. Non Domestic water tariff

(2007)

Rp 10.000,-

7. Tariff escalation (20082009)

7,20%

Service Area

Scope of Works
Construction of WTP 900 l/s
Construction of transmission networks
Construction of reservoir
Distribution networks for 70.000 HC
Pipe networks 180 km

900 l/s

Pasar Kemis, Sepatan, Cikupa, Balaraja, Jayanti, Total of Domestic

Customers 60.000 HC and Industries 278 HC
NRW Level 4%
13

BEKASI REGENCY
PT MOYA BEKASI JAYA

ON GOING PPP
PROJECT

B to B Cooperation Agreement
between
PDAM Bekasi Regency with

PT. Moya Bekasi Jaya

Contract signing: 18 August 2011

Technical and Investment Data

Capacity

1.000 l/s

Total
Investment

Rp 187 Billion

Cooperation
Period

25 Years

Rp. 2.150

Initial tariff

Scope of Works
Stage 1 : Uprating:
2x 20 l/s uprated to be
1x120 l/s
2x20 l/s uprated to be
1x120 l/s
Ultrafiltration (UF) 200 l/s
Stage II WTP construction of
500 l/s
Stage III Rehabilitation and
Operating existing WTP:
WTP 2X 60 l/s
WTP 1x 200 l/s

Service Area
Cikarang Utara sub-district, Cikarang Selatan sub
district and Lemah Abang sub district

Progress of the Project

Stage I of WTP Uprating has been constructed and
ultrafiltration unit of 200 l/s has been commercially
operated with tariff Rp 2.150,-

14

GRESIK REGENCY
PT. DEWATA BANGUN TIRTA

ON GOING PPP
PROJECT

PPP Cooperation Agreement between

PDAM Gresik Regency and

PT. Dewata Bangun Tirta
Contract Signing : 25 May 2012

Scope of Works

Intake construction 200 l/s

WTP Construction 200 l/s
Resevoir 1.000 m
Transmission pipeline with diameter of
500mm 5500 m and Booster pump 700 l/s

Technical and Investment Data

Capacity

200 l/s

Total Investment

Rp 47,5
Billion

Cooperation period

: 25 years

Tariff escalation

: 7% annually

Bulk water price year 1

Bulk water price year 2

Rp. 2.400

Rp. 2.568

Progress of the Project

Physical construction has been 100% finished and has been commercially
operated in 2014 with tariff Rp 2400,-/m

15

ON GOING PPP
PROJECT

BANJAR REGENCY AND BANJARBARU MUNICIPALITY

(PDAM INTAN BANJAR)
PT. DRUPADI AGUNG LESTARI

B to B Cooperation Agreement between

Technical and Investment Data

PDAM Intan Banjar with PT. Drupadi Agung Lestari

Contract Signing : 4 October 2012

Scope of Works
WTP Construction 2 x 250 l/s

Reservoir 4.000 m and Distribution pump chamber

Supplementary building

Service Area
Landasan Ulin, Liang Anggang, Gambut, Kertak Hanyar, Tatah Makmur,
Aluh-aluh, Beruntung Baru, Sungai Tabuk

Capacity

500 l/s

Total Investment

Rp 71,501 billion

Cooperation period

25 Years

Bulk water price

Rp. 2.098,-

Progress of the Project

WTP Construction of 2 x 250 l/s, supplementary

building
WTP has been commercially operated for 150 l/s
Tariff: Rp 2.098,- /m3

16

PPP PROJECTS IN TENDER PROCESS

No

Project

PPP Project
Umbulan East
Java
PPP Project
Bandar Lampung

2
TOTAL

Capacity
(l/s)

House
Connection

Population
served
(persons)

Total
Investment
(Billion
Rupiah)

4.000

320.000

1.300.000

2.112

500

42.000

210.000

718

4.500

362.000

1.510.000

2.830

17

UMBULAN WATER SUPPLY PROJECT

EAST JAVA
Tender Process
Project Location
Kab. Pasuruan, Kota Pasuruan, Kab.
Sidoarjo, Kota Surabaya, Kab. Gresik

PPP Cooperation
SPAM Umbulan 4000 L/s
- GCA : Governor of East Java
- Offtaker:
1. PDAB Jawa Timur:
100 L/s
2. PDAM Kab. Pasuruan: 420 L/s
3. PDAM Kota Pasuruan: 110 L/s
4. PDAM Kab. Sidoarjo: 1370 L/s
5. PDAM Kota Surabaya: 1000 L/s
6. PDAM Kab. Gresik:
1000 L/s

Technical and Investment Data

PPP Scheme:
BOT (Built Operate Transfer)
Capacity:
4.000 liter/detik
Investment Estimate:
Rp 2.112.090.210.000
Utilization:
1,3 million population or 320.000 HC
Scope of Works:
Construction of Intake 4.000 l/s
Procurement and raw water
transmission installation ND 10001800mm for 97 km
Construction of 2 Pump houses 4000
L/s with its supplementary equipment
Offtake system : 16 offtake units and
reservoir in 5 Cities/Regencies

5 Shortlisted Bidders:
1. Consortium of Marubeni Corp., Nippon
Koei Co. Ltd., PT Perkom Indah Murni
2. Consortium of China Harbour ENG. Co.
Ltd., Sound Global Ltd., & PT Manggala
Purnama Sakti
3. Consortium of Kukdong Eng. & Const.
Co. Ltd., PT Brantas Abipraya, PT Grundfos
Pompa, PT Pralon
4. Consortium of PT Amerta Bumi Capital,
PT Bakrieland Development Tbk., Beijing
Enterprise Water Group
5. Consortium of PT Medco PT Bangun
18
Cipta Kontraktor

UMBULAN WATER SUPPLY PROJECT

EAST JAVA
Schedule of Tender Process
Tender Stages

Date

(A) Publication of Final Request of Proposal (RFP)

30 September 2015

(B) Deadline of Proposal submission

13 November 2015

(C) Confirmation of Bidder Winner

31 December 2015

(D) Signing of Contract Agreement

February 2016

(E) Financial Close

December 2016

(F) Construction Period

(G) Commercial Operation
(H) Concession Period

December 2016 December 2018

December 2018
25 years commenced from
commercial operation

19

BANDAR LAMPUNG WATER SUPPLY PROJECT

Tender Process
Technical and Investment Data
PPP Cooperation
SPAM Bandar Lampung 500 l/s
- GCA : Mayor of Bandar Lampung
Short Listed Bidders:
1. Abeima and PT Wijaya Karya Persero Tbk
2. Acuatico and Mitsubishi Corporation
3. Hyundai Engineering and Construction,
Itochu Corporation and PT Potum Mundi
Infranusantara
4. Manila Water and Great Giant Pineapple

Project Status:
Announcement of shortlisted bidders: 31 May 2012
Submission of Guarantee Application Document (GAP): 16 Agustus 2012
VGF Approval by Ministry of Finance has been issued on 7 May 2015
One on one meeting conducted on 1 September 2015
Final RFP issued on 15 September 2015

PPP Modality:
BOT + (Built Operate Transfer +)
Capacity:
500 l/s
-Investment Estimate: Rp 718 Billion
- Cooperation Period : 25 years
- Bulk water tariff : Rp 3.000 (2015)
Utilization :
42.000 HC
Scope of Works:
Construction of intake 500 L/s
Procurement and Installation of
raw water transmission pipe ND 800
mm for 27 km
Construction of 2 WTPs @ 250 L/s
with its supplementary equipment

20

BANDAR LAMPUNG WATER SUPPLY PROJECT

Schedule of Tender Process
Tender Stages
(A) Publication of Final RFP
(B) Aanwijzing
(C) Preliminary Process : Room Data Opening

Date
15 September 2015
15 October 2015
15 September 2015 31 October 2015

(D) Last date to submit the date to form initial

consortium

23 November 2015

(E) Closing of proposal document

22 December 2015

(F)

23 December 2015

Opening of Proposal documents (Envelope I)

and commencement of preliminary study of
Envelope I as stipulated on article 3.16 and 7.3

(G) Opening of Proposal Documents (Envelope II)

and commencement of proposal document
evaluation (technical and financial evaluation)

1 February 2016

(H) Announcement of Preferred Bidders

12 February 2016

21

TENDER PROCESS UPDATE

STATUS UPDATE

VGF Approval for PPP Project of SPAM Umbulan has been granted by the Ministry of Finance
by letter of Minister of Finance number S-759/MK.08/2015 dated 29 September 2015
concerning Approval of Viability Gap Fund
Tender process has been commenced for PPP Project of SPAM Umbulan through the
issuance of Final Request for Proposal (RFP) on 30 September 2015
VGF Approval for PPP Project of SPAM Bandar Lampung has been granted by the Ministry of
Finance by letter of Minister of Finance number S-362/MK.08/2015 dated 7 May 2015
concerning Approval of Viability Gap Fund
Tender process has been also commenced for PPP Project of SPAM Bandar Lampung through
the issuance of Final Request for Proposal (RFP) on 15 September 2015

22

READY TO OFFER
PPP WATER SUPPLY PROJECTS

No

Project

Pondok Gede,
Bekasi City,
West Java

Gresik Regency

TOTAL

Capacity
House
(l/s) Connection

Population
served
(persons)

Total
Investment
(Billion
Rupiah)

Land
Acquisition

300

24.000

120.000

285,5

100%

2.000

160.000

800.000

1.364,0

Under Process

2.300

184.000

920.000

1.649,5

23

PONDOK GEDE WATER SUPPLY PROJECT

BEKASI CITY, WEST JAVA
Project Location
Medan
Satria
Bekasi
Utara
Bekasi
Barat

Bekasi
Timur

Bekasi
Selatan
Pondok
Gede

Rawa
Lumbu
Jati Asih

Pondok
Melati

Mustikajaya

Bantar
Gebang
Jati
Sampurna

Service Area
Pondok Gede, Jati Asih of Bekasi City

Background of the Project:

1. High population growth
of Bekasi city ( 3% per
year). Bekasi city is a
prominent satellite city
of Jakarta.
2. Service coverage is only
21% in 2013
3. Rapid growth of
housings, apartment,
and commercial
businesses
4. High commitment from
the Central
Government

24

PONDOK GEDE WATER SUPPLY PROJECT

BEKASI CITY, WEST JAVA

Project Scope
-

WTP, capacity: 300 L/s

Reservoir: 3000 m3
Distribution pipeline 40 km
Estimated Investment IDR 285,5 billion

25

PONDOK GEDE WATER SUPPLY PROJECT

BEKASI CITY, WEST JAVA
Type of modality :
Build Operate Transfer
(BOT)

No

Progress

Readiness Report

Completed

Pre FS review

Ongoing

a. Legal Study

Ongoing

b. Technical Study

Raw water study has not

finished

c. Market Study

Pre-Survey RDS

d. Economical Study

Ongoing

e. Financial Study

Ongoing

f. Risk Study

Ongoing

g. PPP Scheme recommendation

Completed

h. Environmental and Social Studies

Completed

i. Government Support Study

Ongoing

ENVIRONMENTAL IMPACT
ASSESSMENT

Completed

PQ Document

Completed

IRR :
15%
Bulk water tariff :
Rp 4.800

GCA :
Mayor of Bekasi City
Timeline Schedule:
Tender: 2016
Contract Signed: 2016
Construction: 2017
Operation: 2018

Document Preparation

26

PDAM GRESIK REGENCY

Technical and Investment Data

Gerak Sembayat Dam

Status Update
Completion of Feasibility Study
Completion of PQ and RFP Document
Capacity Building on November 2015
Completion of tender documents

Capacity

2000 l/s

Total Investment

Tariff adjustment

6% annually

Cooperation period

25 Years

Schedule

Tender: December 2015

Financial Close : 2016
Construction : 2017

Service Area

Gresik Kota and Gresik

Utara (Bungah Subdistrict)

Rp 1.364 Billion

Scope of Works

1. Construction of intake 2200 L/s

2. Construction of WTP 2 x 1000 l/s with its supplementary
building
3. Procurement and installation of ME
4. Procurement and installation of primary, secondary, and
tertiary distribution pipelines
27

POTENTIAL PPP PROJECTS IN WATER SECTOR

No

Project

Capacity
House
(l/s) Connection

Population
served
(persons)

Total
Investment
(Billion
Rupiah)

West Semarang

1.050

84.000

420.000

824,0

Serang Regency

280

22.400

112.000

103,3

Pekanbaru City

2.070

165.600

828.000

1.950,0

SPAM Jatigede

3.500

280.000

1.400.000

1.504,0

6.000

480.000

2.400.000

3.020,0

12.648

1.032.000

5.160.000

7.401,3

5
SPAM Karian
TOTAL

28

WEST SEMARANG MUNICIPALITY WATER

PROJECT, CENTRAL JAVA
Type of modality :
Build Operate Transfer (BOT)
Project Type :
Solicited
Capacity :
1.050 l/s

Service Area
West Part of Semarang City, Central
Java

Background of the Project:

1. As the capital city of Central Java, Semarang city
has high population growth (3% in 2012)
2. Existing service coverage is 61%
3. High demand of clean water

IRR :
15%

Estimated Investment:
Rp 824 billion
Utilization:
420.000 population (84.000 HC)
Tariff:
Rp 4.000,29

WEST SEMARANG MUNICIPALITY WATER

PROJECT, CENTRAL JAVA
Component
Intake

Proposed design capacity

1,050 L/sec, Jatibarang Dam
(on going project)

Raw water
pipeline

2.2 km (dia. 900mm x 2 line)

WTP

1,050 L/sec, Rapid sand filter

Transmission
pipeline

WTP Reservoir 5: 3.1 km

(dia. 700mm)
WTP Reservoir 1: 9.7 km
(dia. 450mm)
WTP Reservoir 2: 2.4 km
(dia. 450mm)

30

WEST SEMARANG MUNICIPALITY WATER

PROJECT, CENTRAL JAVA
Status Update
Jatibarang Dam is ready to operate;
Raw Water Exploitation License has been issued;
The progress of Land Acquisition is 5%; the rest of the acquisition plan has been
alocated in Local Government Budget;
VGF has been approved principally by the Minister of Finance; hence waiting for the
VGF recommendation letter and the issuance of VGF approval from the Minister of
Finance;
Umbrella agreement of the Availability payment in Local Government Budget has not
been strongly stated in the Regulation of the Ministry of Home Affairs No.37/2014

31

SPAM CIBAJA IN SERANG REGENCY

Scope of Works
-

WTP of 280 L/s

Construction of Reservoir
Distribution pipelines
Investment: Rp 103,3 Billion
PPP modality : BOT

Service Area
Serang Timur Subdistrict: Cikande, Kibin, Bandung,
and Jawilan (CIBAJA).
Raw Water Source
Ciujung River

Status
- Completion of Feasibility Study
- Preparation for tender process

32

PEKANBARU WATER SUPPLY

Timeline Schedule

Pre Qualification : 2016

Tender process : 2016
Evaluation and award : 2017
Contract signing : 2017

Scope of Works
-

WTP: 700 L/s (first stage)

WTP 1370 L/s (second stage)
Intake unit
Raw water Transmission pipeline
Treated water transmission pump and pipeline
Distribution reservoirs (towers)

Status Update
- Land acquisition will be completed in 2015
- GCA will be Government of Pekanbaru Municipal
- EIRR of the project : 19,32%

33

JATIGEDE WATER SUPPLY PROJECT

Service Area

Sumedang Regency
Majalengka Regency
Indramayu Regency
Cirebon Regency
Cirebon Municipality

Scope of Works

- WTP: 3.500 L/s

- Reservoir: 5.000 m3
- Transmission pipeline : 1.600
mm, 7.150 m.
- Investment Rp 1.504 billion

Status Update
- Jatigede dam has been completed, water filling is being done and targeted to be finished
on mid 2015
- DED of the intake and raw water transmission are being done by West Java Province
- Pre FS completion will be done in 2016

34

KARIAN WATER SUPPLY PROJECT

IMPLEMENTATION PLAN

SERANG & CILEGON

Tigaraks
a

4.
0

Kata
Tangeran
g
1.5

TANGERANG

Tender Process
Construction
Operation

: 2016
: 2016-2019
: 2020

Service Area

2.5

1.5

Pamaray
an

Maja 0.1

W.
Jakarta
3.2

6.2

Serang, Maja, Rangkasbitung,

Tigaraksa, Kab. Tangerang,
Serpong, Parung, dan Jakarta

6.0

Petir
R.bitung
0.3

5.5

Ciuyah Tunnel

Ciujung River

SERPONG

1.3

0.2
P.
PANJANG

9.1

KARIAN (14.6)

Scope of Works

Kota
Tangesel

- WTP: 6.000 L/s

Transmission pipeline : 90 km

Intake or Tapping Point

(Unit :
/s)

Water Treatment Plant

Status Update
- Waiting for the dam
construction to be finished,
construction is planned to be
completed in 2019

35

TERIMA KASIH
THANK YOU

FOR FURTHER INFORMATION,

PLEASE CONTACT:
Mr. Tamin M. Zakaria Amin, MSc, MBA
Chairman of BPPSPAM
Jl. Wijaya I No.68 Kebayoran Baru,
Jakarta Selatan, Indonesia

Phone : +6221 72789126

Fax
: +6221 7260520
Email : info@bppspam.com
www.bppspam.com

36