STUDY ON SOEKARNO HATTA INTERNATIONAL AIRPORT EXPANSION AND UPGRADING ...

248 Pages·2012·9.13 MB·English

STUDY ON PRIVATE-INITIATIVE INFRASTRUCTURE PROJECTS IN
DEVELOPING COUNTRIES IN FY2011

STUDY ON SOEKARNO HATTA INTERNATIONAL AIRPORT
EXPANSION AND UPGRADING PROJECT IN JAKARTA
IN THE REPUBLIC OF INDONESIA

FINAL REPORT

February 2012

Prepared for:
The Ministry of Economy, Trade and Industry

Prepared by:
ITOCHU Corporation
SHIMIZU CORPORATION
Japan Airport Terminal Co., Ltd.
Nikken Sekkei Ltd
Nikken Sekkei Research Institute
Japan Economic Research Institute Inc.
Reproduction Prohibited
Preface

This report is a summary of the results of a Study on Private Sector Initiative Infrastructure Projects
commissioned as a project in fiscal year 2011 by the Ministry of Economy, Trade and Industry to
ITOCHU Corporation, SHIMIZU Corporation, Japan Airport Terminal Co., Ltd., Nikken Sekkei Ltd.,
Nikken Sekkei Research Institute, and Japan Economic Research Institute Inc.

This Study on Soekarno Hatta International Airport Expansion and Upgrading Project in Jakarta in
the Republic of Indonesia was an investigative study of the feasibility of a project for expanding and
upgrading the airport’s airside facilities, upgrading utility facilities, constructing new terminal
building, renovating and upgrading existing terminal buildings and constructing new commercial
buildings at a budget of approximately 104.5 billion yen. In recent years the number of passengers
using Soekarno Hatta Airport in the Jakarta Metropolitan Area of the Republic of Indonesia has been
increasing dramatically. Realization of a project to expand and upgrade the airport will contribute to
resolving problems resulting from aviation demand surpassing anticipated capacity.

We sincerely hope that this report will be of assistance in the realization of the above project and will
also serve as a useful reference for interested parties in Japan.
February 2012

ITOCHU Corporation
SHIMIZU CORPORATION
Japan Airport Terminal Co., Ltd.
Nikken Sekkei Ltd
Nikken Sekkei Research Institute
Japan Economic Research Institute Inc.
Map of the Project Site

Map of Indonesia

Source: Prepared by the Study Team from Google Earth photos

Location of Soekarno Hatta Airport

Source: Prepared by the Study Team from Google Earth photos
List of Abbreviations
Abbreviations Long Forms
ACI Airport Council International
APM Automated People Mover
AP-I PT. Perum Angkasa Pura 1
AP-II PT. Perum Angkasa Pura 2
ASEAN Association of South‐East Asian Nations
Badan Perencanaan Pembanguan Nasional
BAPPENAS
(National Development Planning Agency)
BCP Business Continuity Plan
BHS Baggage Handling System
CH/IN Check-in
CPI Consumer Price Index
DGCA Directorate General Civil Aviation
EIRR Economic Internal Rate of Return
EV Elevator
FIRR Financial Internal Rate of Return
IDR Indonesia Rupiah
IIGF Indonesian Infrastructure Guarantee Fund
JABODETABEK Jakarta, Bogor, Depok, Tangerang and Bekasi
JCR Japan Credit Rating Agency Ltd.
JETRO Japan External Trade Organization
JICA Japan International Cooperation Agency
JIS JapanTerminalBuilding, Itochu, Shimizu
JPY Japanese Yen
LCC Low Cost Carrier
METI Ministry of Economy, Trade and Industry (Japan)
MOSOE Ministry of State-Owned Entrprises (Indonesia)
MOT Ministry of Transportation (Indonesia)
Master Plan for Establishing Metropolitan Priority Area for Investment and
MPA
Industry in Jabodetabek Area
PMC Project Management Consultant
PTB Passenger Terminal Building
PPP Public Private Partnership
R&I Rating & Information Investment Inc.
ROE Return On Equity
SBI Central Bank of the Republic of Indonesia
Table of Contents

Executive Summary
(1) Background and necessity of the project S-1
(2) Basic policy concerning decisions on project content S-3
(3) Project overview S-7
(4) Implementation schedule S-14
(5) Feasibility of implementation S-15
(6) Superior Technology of Japanese companies S-17
(7) Concrete schedule for realizing the project and risks inhibiting its realization
S-19
(8) Maps indicating the project implementation site S-23

Chapter 1: Overview of the Host Country and Sector
(1) Economy of the Country & Financial Conditions of the Government 1-1
(2) Description of the Targeted Sector 1-8
(3) Description of Project Area 1-13

Chapter 2: Study Methodology
(1) Contents of the Study 2-1
(2) Method and Organization of the Study 2-3
(3) Schedule of the Study 2-4

Chapter 3: Justification, Objectives and Technical Feasibility of the Project
(1) Project Background and Necessity, etc. 3-1
(2) Necessary considerations for determining project details, etc. 3-17
(3) Project Plan Overview 3-42
Chapter 4: Evaluation of Environmental and Social Impacts
(1) Analysis of current environmental and social conditions 4-2
(2) Improvement effect of the environment accompanying the implementation of the
project 4-4
(3) Environmental and social impacts accompanying the implementation of the project
4-4
(4) Summary of laws and regulations relating to environmental and social considerations
of the partner country 4-14
(5) Procedures the implementing country (implementing or other relevant organization)
must follow for realizing a project 4-20

Chapter 5: Financial and Economic Evaluation
(1) Project Cost Estimate 5-1
(2) Overview of the Results of Preliminary Financial/Economic Analysis 5-4

Chapter 6: Planned Project Schedule
(1) Planned Project Schedule 6-1
(2) Issues Pertaining to the Project Schedule 6-2

Chapter 7: Implementing Organization 7-1

Chapter 8: Technical Advantages of Japanese Companies
(1) Expected Form of Japanese Involvement (Investment, engineering, procurement &
management, and operation & management) 8-1
(2) The Competitive Advantage that Japanese Companies have in the Implementation of
this Project (Technology , Economic Aspects) 8-19
(3) Measures Necessary to Promote the Issuance of Orders with Japanese Companies
8-22
Chapter 9: Outlook for Fund Procurement
(1) Review of Sources of Funds and Financing Plans 9-1
(2) Possibility of Funding 9-2
(3) Cash Flow Analysis 9-13

Chapter 10: Action Plan and Issues
(1) Status of Activities for the Implementation of the Project 10-1
(2) Status of Activities of Relevant Government Agencies and Implementers in Indonesia
for the Implementation of the Project 10-2
(3) Legal and Financial Restrictions of Indonesia 10-3
(4) Necessity of Additional Detailed Analysis 10-18