Implementing Indonesias

Economic Master Plan (MP3EI):

Challenges, Limitations and
Corridor Specific Differences

June 2012

Prepared by Strategic Asia

Page 1 of 87
 Table of Contents

The Concept of an Economic Corridor ................................................................................................... 12

Economic Corridors in Indonesia ........................................................................................................... 12
Implementation Phases of the MP3EI..................................................................................................... 15
Barriers to Implementing the MP3EI ..................................................................................................... 16
Public Communication and Awareness .................................................................................................. 17
Synergy with the RPJP and the RPJM .................................................................................................... 19
Regulatory Reform.................................................................................................................................. 21
Institutional Reform ................................................................................................................................ 23
Infrastructure ........................................................................................................................................... 25
Regional Disparities ................................................................................................................................ 29
Human Resource Development .............................................................................................................. 33
Financing and Attracting Private Sector Investment .............................................................................. 35
Environmental Sustainability .................................................................................................................. 38
Differing Perceived Opportunities and Barriers to Implementing the MP3EI at the National Level and in
the Kalimantan and Bali- Nusa Tenggara Corridors. .................................................................................. 43
Implementation Requirements and Recommendations for the MP3EI............................................... 47
International Experience of Implementing Economic Corridors ............................................................ 47
A Closer Look on East-West Economic Corridor of Greater Mekong Sub-region (GMS): Turning
Infrastructure Corridors into Economic Corridors .............................................................................. 47
The Indonesia-Malaysia-Thailand Growth Triangle ........................................................................... 51
Roles of Stakeholders in the Implementation of the MP3EI ................................................................. 54
Current Structure of the KP3EI .............................................................................................................. 55
Level of Preparedness ............................................................................................................................... 57
Sequencing ................................................................................................................................................. 57
Recommendations for the Implementation of the MP3EI at the National Level ................................ 59
Implementation Recommendations in the Kalimantan Corridor ........................................................ 60
Implementation Recommendations for the Bali- Nusa Tenggara Corridor........................................ 61
Conclusions ................................................................................................................................................ 62
REFERENCES .......................................................................................................................................... 64
ANNEX ...................................................................................................................................................... 67

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 Figures

Figure 1 - MP3EI Economic Corridor Map ................................................................................................ 11

Figure 2 - Estimated Investment Required for the Main Economic Activities of the MP3EI .................. 14
Figure 3 - Implementation Phases of MP3EI .............................................................................................. 15
Figure 4 - Barriers to Implementing MP3EI ............................................................................................... 16
Figure 5 - Infrastructure Projects Under Construction ................................................................................ 28
Figure 6 - Total Projects and Total Investments in the MP3EI................................................................... 29
Figure 7 - Regional Inequality in Indonesia................................................................................................ 30
Figure 8 - Indications of Investment in 6 Economic Corridors................................................................... 32
Figure 9 - Factors for Doing Business in Indonesia .................................................................................... 36
Figure 10 - Perceived Opportunities at the National Level......................................................................... 43
Figure 11 - Perceived Barriers to Implementation at the National Level ................................................... 43
Figure 12 - Perceived Opportunities in the Kalimantan Corridor .............................................................. 44
Figure 13 - Perceived Barriers to Implementing the Kalimantan Corridor................................................. 44
Figure 14 - Barriers in the Kalimantan Corridor broken down by frequency of mention: ........................ 45
Figure 15 - Perceived Opportunities in the Bali- Nusa Tenggara Corridor ................................................ 45
Figure 16 - Perceived Barriers to Implementing the Bali- Nusa Tenggara Corridor .................................. 46
Figure 17 - Barriers in the Bali- Nusa Tenggara Corridor broken down by frequency of mention: ........... 46
Figure 18 - EWEC Linkages to National Development Plans .................................................................... 50

Table

Table 1 - The Economic Activities Promoted by the MP3EI per Corridor................................................. 13

Boxes

Box 1 - Key Points from the Low Carbon Economy Knowledge Hubs ..................................................... 41
Box 2 : EWEC Flagship Projects ................................................................................................................ 47
Box 3 IMT-GT Five Connectivity Corridors .............................................................................................. 51

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 Implementing Indonesias Economic Master Plan (MP3EI): Challenges, Limitations and
Corridor Specific Differences1

Executive Summary

The Government of Indonesia announced the Master Plan for the Acceleration and Expansion of
Indonesias Economic Development (MP3EI) in May 2011. This has been followed by almost
constant debate surrounding the feasibility and the implementation challenges likely to be faced
by the MP3EI. The fact that such an overwhelming amount of interest has been generated about
the MP3EI shows the willingness of stakeholders to take part in realising the success of the
policy. It also demonstrates that not enough attention has been paid to implementation
mechanisms and frameworks during the design phase of the MP3EI itself.

The MP3EI is a very ambitious plan. It aims to propel Indonesia into the top ten economies and
raise per capita from US$3000 to US$15,000 by 2025. The policy rests on three main pillars:
establishing six economic corridors based on the comparative advantage of the different regions
of Indonesia; promoting connectivity within Indonesia and the ASEAN region, as well as
improving human resources and science and technology.

Implementation of the MP3EI, however, is its Achilles heel. The MP3EI document itself
dedicates a relatively short space to map out the implementation and monitoring of the policy.
This ambitious policy needs a strong implementation strategy to ensure its success.

At the national level, there are nine major barriers to the implementation of the MP3EI: a lack of
socialisation and awareness; unclear synergy with the RPJMN (Indonesias long term
development plan); needs for both regulatory and institutional reform; underdeveloped
infrastructure; regional disparities; a need for human resource development; a lack of available
national financing and disincentives to private investment and a perceived clash with committing
to environmental sustainability.

Barriers found for the Kalimantan and Bali- Nusa Tenggara Corridors are found to be different,
although all stemming from a general theme at the national level. As such, recommendations for
the implementation for the two regional corridors are not the same.

This indicates that each of the six Corridors will be unique in their implementation strategy.
Indeed, the MP3EI states that each corridor has its own theme based on the comparative
advantage of that region. Furthermore, implementation relies on a number of factors such as
levels of infrastructure, human resources, institutional capacity, amongst others. As such, it is
likely that the implementation experiences from one Corridor cannot be copied to another. This
suggests then, that the idea of using a pilot corridor should not be undertaken, but instead all six
corridors be implemented simultaneously. Implementing the first phase of the MP3EI should

1
The UK Foreign and Commonwealth Office in Jakarta contracted PT. Strategic Asia Indonesia between August
2011 and April 2012 to undertake a project looking at the implementation barriers, requirements and
recommendations for the MP3EI.

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occur at the same time as the implementation of increased research and planning to develop
human resources, invest in science and technology, developing basic infrastructure as well as a
regulatory and institutional reform.

General recommendations for the national level are:

The first task is to create effective on the ground awareness and familiarity with the
objectives, design and key stages of the Master Plan. At present, Government officials at
the national level overall had a much better understanding on the meaning, opportunities
and requirements for implementing the MP3EI as compared to the private sector and civil
society.

A clear set of expectations from different groups of stakeholders needs to be established,

as now there is cross over in expectations of different stakeholders- particularly between
the private sector and government officials. Increased available information for the
private sector as well as inclusive public communication are the first steps in establishing
a long term working relationship between the private sector and government to
implement the MP3EI.

A regulatory review to ensure that the MP3EI can be supported by laws and regulations
which are streamlined through the regional and national level.

MP3EI Working Units need to be established which coordinate regularly with the
national level. These groups should involve a breadth of stakeholders and their targets
and quarterly progress should be made available as public information.

Improving basic infrastructure should be seen as a national government priority in order

to attract private investment in commercial infrastructure.

An Action Plan needs to be developed on looking at the short and long term needs of
developing human resources in each of the six corridors. At the moment, it is not clear in
the MP3EI where funding is to be sourced to establish training centers and other
resources develop Indonesias man power. The MP3EI document lays out a breakdown
for the infrastructure budget, but there is a lack of a breakdown of a budget for human
resource development.

An Action Plan needs to be established on the strategies when moving from an

infrastructure to an economic corridor learning from the international experience.

The national PPP framework needs to be reviewed, projects need to synergize between
the national and regional level, with only feasible projects which are ready to commence
advertised. The President also needs to take the lead at the national figurehead for the
development of PPPs in Indonesia.

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 A review of the financing budgeted for the eastern parts of Indonesia needs to be carried
out as eliminating regional disparities are a priority for the MP3EI but yet there is a lack
of financing in eastern Indonesia which acts as a barrier to growth and also private
investment.

An important theme in the implementation of the Kalimantan Corridor was the perceived clash
with efforts to become more environmentally sustainable. Connectivity was an important issue as
at the moment there is a lack of sharing of information between Kalimantans four provinces,
however this was much more of a prominent theme in the Bali- Nusa Tenggara Corridor since
this corridor aims to pull together a series of islands. Eastern Indonesia also has more prominent
issues in underdeveloped basic infrastructure and human resources, far much more than
Kalimantan. As such, special attention should be given to the Bali- Nusa Tenggara Corridor as
well as other eastern Corridors in constructing basic infrastructure with the overall aim to reduce
regional disparities.

In terms of sequencing, similar to the East- West Economic Corridor of the Greater Mekong
Delta Sub- Region, the MP3EI has dedicated the first phase of the implementation process from
2011 to 2015 as solely in infrastructure investment. The purpose behind this is to increase the
inter-corridor connectivity and set basic foundations for the second phase. The East West
Economic Corridor found relative success in the infrastructure phase, and significant increased
trade and investment flows as a result. However, difficulty was found in the move from an
infrastructure corridor to an economic corridor.

For the second phase of the MP3EI, covering the period from 2015 to 2020, attention needs to
move further down to the regional level. After infrastructure corridors are established, the
regional government should have a better awareness and ability to fulfil its roles. Increased
responsibility at the regional level for implementing MP3EI would serve as a faster method of
implementation rather than at the national level and each Corridor would be able to adapt to its
local situation easily. The MP3EI should not be bound to a one size fits all policy, but the regions
should have the capacity to implement the policy according to the different needs and abilities of
each corridor.

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Introduction

Background
The Master Plan for the Acceleration and Expansion of Indonesias Economic Development
(MP3EI) is the governments most prominent economic development policy in the last decade.
This ambitious policy aims to leapfrog Indonesia into the ten biggest economies by 2025, by
increasing GDP to US $4.5 trillion as well as by increasing GDP per capita income from US
$3000 now to US $15,000.

Under Presidential Regulation No. 32/2011, President Yudhoyono launched the MP3EI policy in
May 2011 and the policy was supported by sectoral ministries, local governments and state-
owned enterprises. The MP3EI has huge potential to develop economic growth through the
promotion of six economic corridors: the Sumatra Economic Corridor, the Java Economic
Corridor, the Kalimantan Economic Corridor, the Sulawesi Economic Corridor, the Bali- Nusa
Tenggara Economic Corridor and the Papua- Kepulauan Maluku Economic Corridor.

The MP3EI policy centres around three main strategies: to develop the six national economic
corridors, to speed up the development of human resource capacity and national science and
technology which will feed into the long term support of such accelerated economic
development.

The total investment required for the six corridors is Rp. 4,012 trillion. From this total, it is
expected that the Sumatra Corridor will receive Rp. 714 trillion (18% of total investment), the
Kalimantan Corridor will receive Rp. 945 (24% of total investment), the Java Corridor will
receive Rp. 1,290 trillion (32% of total investment), the Sulawesi Corridor will receive Rp. 309
trillion (8% of total investment), the Bali-Nusa Tenggara Corridor will receive Rp. 133 trillion
(3% of total investment) and lastly the Papua- Kepulauan Maluku Corridor will receive Rp. 622
trillion (15% of total investment).

The Master Plan identifies eight primary programs and 22 primary activities as the focus of
national development. The eight primary programs are: agriculture, mining, energy, industrial,
marine, tourism, telecommunications and the development of strategic areas. The strategic
initiative of the Master Plan is to encourage large-scale investment in 22 primary activities:
shipping, textiles, food and beverages, steel, defence equipment, palm oil, rubber, cocoa, animal
husbandry, timber, oil and gas, nickel, copper, bauxite, fisheries, tourism, food and agriculture,
the Jabodetabek area, the Sunda Straits strategic area, transportation equipment, and information
and communication technology.

Fundamental to the MP3EI policy is the importance of promoting a new way of thinking- Not
Business as Usual. This new ideology is to come from increased collaboration and inputs from
national government, local governments, state-owned enterprises, private sector companies and
local communities.

The Indonesian Government has limited funds to finance development through its State Budget
(APBN). According to the MP3EI, 44% of the total investment needed is expected to come from

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the private sector and state-owned enterprises. Under the MP3EI, all existing regulatory
frameworks must be evaluated, and strategic steps must be taken to revise and change
regulations in order to attract such support from investors. Incentives will be implemented on
tariffs, taxes, import duties, labor regulations, licensing and permits and land procurements. In
order to achieve these goals, the central and local governments must build a stronger link within
and beyond the centers of economic growth.

Although the policy lays out a promising plan to advance Indonesias economy, it has often been
noted that its Achilles heel is in the implementation stage. Others have noted that the
Governments previous large scale development acceleration programmes in Indonesia have not
fulfilled their promises, such as the 2007 Presidential Instruction on real sector development
acceleration and the 2010 Presidential Decree on acceleration of poverty reduction.2

The Committee on Economic Development Acceleration and Expansion of Indonesia 2011-2025

(KP3EI) is an institution established by the President of the Republic of Indonesia on May 20,
2011 to coordinate the implementation of MP3EI.

The Master Plan recognises that Indonesia must overcome a number of challenges: a failure to
achieve value-added input in the agricultural and extractive industries; a developmental gap
between western and eastern Indonesia; the lack of infrastructure support generally; a lack of
connectivity between regions; inadequate quality of human resources and rapid urbanisation.

The steps to realise the Master Plan include: bureaucratic reform, including the legislature and
judiciary, tax reform and incentives, the creation of special economic zones in each of the
corridors, improved shipping and airline capability (ports and airports) to promote connectivity,
and increased high school and vocational training to improve human resources. Many elements
in the plan are unique points of departure for Indonesia. For example, the Master Plan states that
the Government bureaucracy will support the needs of business and provide equal treatment and
fair opportunities for all businesses, Government loans will be used to finance investment instead
of routine expenditures, such as subsidies and subsidies will be targeted at the disadvantaged
rather than for goods, taxes will be on Indonesian sourced income and not worldwide income,
taxes will be based on consumption rather than value added taxes, and employment regulations
will be supportive of employers as well as employees.

Evidence Used in the Study/Data Sources

This paper highlights the key barriers to implementing the MP3EI policy and makes
recommendations for successful implementation. Using an evidence-based approach, this paper
makes reference to data collected during past meetings with stakeholders. Since this project has
mainly looked at the implementation barriers and requirements at the national level and
specifically at the Kalimantan and Bali- Nusa Tenggara Corridors, the bulk of the

2 th
Business Section, Im not optimistic with the MP3EI: economist, The Jakarta Post, July 25 2011

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recommendations are made for national level as well as Corridor specific recommendations for
the Kalimantan and Bali- Nusa Tenggara Corridors.

Data has been collated from meetings and interviews with government officials, members of the
private sector and of civil society from all of the six Economic Corridors as outlined in the
MP3EI. PT Strategic Asia Indonesia facilitated four seminars, two at the regional level and two
at the national level in order to gather opinions from a wide range of stakeholders. A market
research company, the Polling Center, based in Jakarta, supported PT Strategic Asia Indonesia
and undertook three rounds of interviews with project stakeholders. During the length of this
project, the Strategic Asia team gathered data from a wide range of sources from across the
Indonesian archipelago.

Field trips took place in East and Central Kalimantan, Lombok, Bali, Aceh and Makassar in
order to gather area specific data needed to supplement project research, as well as to gain
support for two regional seminars which occured in Kalimantan on 6th October 2011 and in
Lombok on 6th December 2011. Both seminars addressed the specific needs of the regions; the
first addressing the Kalimantan Corridor and the second the Bali- Nusa Tenggara Corridor. In
preparation for our two regional seminars, trips were made to Central and East Kalimantan for
the first seminar and to Lombok and Bali for the second in order to meet key stakeholders,
speakers and with the BAPPEDA offices in order to secure cooperation in co-hosting these
events.

Strategic Asia undertook meetings in Jakarta in preparation for the third and fourth seminar
entitled Climate Change Mitigation and the MP3EI and Implementing the MP3EI on the
National Level. These seminars were both two day events and took place on the 8 th and 9th of
February 2012 and 14th and 15th March 2012, respectively. Apart from guests from Jakarta, both
seminars also featured one international speaker from London and included participants from
across Indonesia: Sumatra, Kalimantan, Sulawesi, Bali, Lombok and Papua.

Strategic Asia also signed a contract with an Indonesian market research company, the Polling
Center in August 2011. The Polling Center attended the Kalimantan, Lombok and the Climate
Change Mitigation and MP3EI seminars to undertake one to one meetings with participants
alongside the event. A broad range of stakeholders were interviewed, from government officials,
members of the private sector, NGOs, Universities, research organizations, and the Donor
community. A total of 18 interviews were conducted during the Kalimantan seminar and 20
additional interviews were conducted during the Lombok seminar. After the two regional
seminars, the Polling Center conducted 38 interviews in Jakarta. Details of the interviewees can
be found in the Annex of this report. During these three rounds of interviews, the Polling Center
quantified data on the awareness of the MP3EI; views on perceived opportunities coming from
the MP3EI; barriers and solutions for implementation; synergy with the RJPMN (the medium
term development plan) and roles of stakeholders.

Verbatim quotes from these stakeholders coming from interviews with the Polling Center can be
found throughout this paper separated in text boxes.

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Furthermore, focus group discussions were a large feature of this project. All four seminars were
made up of a panel sessions with presentations as well as smaller breakout discussions with
specific issues for discussion. The agendas, participant attendance lists and seminar summaries
for all four seminars are provided in the Annex for further information.

Alongside preparation for seminars, Strategic Asia staff also met with key stakeholders in Jakarta
as part of collating and consolidating research.

Extensive secondary research has also been ongoing throughout the life of this project. Data has
been collected from government resources, secondary literature and Indonesian and international
media.

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Figure 1 - MP3EI Economic Corridor Map

Source: MP3EI p. 46

The Six Economic Corridors

1. Sumatra Economic Corridor as a Centre for Production and Processing of Natural
Resources and As Nations Energy Reserves
2. Java Economic Corridor as a Driver for National Industry and Service Provision
3. Kalimantan Economic Corridor as a Centre for Production and Processing of National
Mining and Energy Reserves
4. Sulawesi Economic Corridor as a Centre for Production and Processing of National
Agricultural, Plantation, Fishery, Oil & Gas, and Mining
5. Bali Nusa Tenggara Economic Corridor as a Gateway for Tourism and National Food
Support
6. Papua Kepulauan Maluku Economic Corridor as a Centre for Development of Food,
Fisheries, Energy, and National Mining

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The Concept of an Economic Corridor

The Asian Development Banks definitions of an Economic Corridor are as follows3:

1. A well-defined geographic area which includes transport arteries such as roads, rail lines,
or canals.
2. It highlights on bilateral initiatives and focuses on strategic centers particularly at border
crossings between two economies
3. It emphasizes the physical planning of the corridor and the surrounding area by focusing
on infrastructure development and optimal maximization of benefits.
Economic corridors aim to attract investment and generate economic activities in a particular
region in view of realising the economic development potential of a given region with essential
features of lower distribution costs and improved land acquisition. Physical links and logistics
facilitation are key elements towards achieving these aims. Physical connectivity between the
centres of economic growth will be significantly developed upon massive investments in
infrastructure. Moreover, improved infrastructure, partnered with cross-border cooperation
among the neighbouring countries, can accelerate the process of integrating the countrys
economic corridors into the global market. Successful implementation of economic corridors
requires strong political will with the placement of appropriate infrastructure as well as
streamlined competitive regulations to facilitate the movement of goods and people.

Economic Corridors in Indonesia

Growth centres, connectivity and infrastructure are the main building blocks of the Indonesian
Economic Corridors. Economic growth centres will be developed through industrial clusters and
special economic zones (SEZ). These economic hubs will be developed in each economic
corridor in line with the local potentials and specialisations of each region. For instance, the
MP3EI identifies Kalimantan as an energy hub, Bali as a tourism hub and Sumatra as an agro-
industry centre. These different types of economic activities need to be accompanied by
improved connectivity and infrastructures links.

To facilitate the movement of goods and services across economic corridors, connectivity
between regions should be developed to accelerate and expand economic development.
Connectivity infrastructures such as construction of transportation routes and information and
communication technology (ICT) within and across the regions will reduce transportation and
logistical costs. Infrastructure improvements in roads, seaports, airports, water, energy and
electricity, and others are also needed according to the economic activity required in the main
industrial clusters. Therefore it is crucial for these infrastructures to be of high quality if a
competitive final product is desired. In addition, the provision of the various infrastructures
across the corridors will need a pool of skilled workers who are experts for each type of
economic activity.

3
Ruth Banomyong, Benchmarking Economic Corridors Logistics Performance: A GMS Border Corssing
Observation, World Customs Journal

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Table 1 - The Economic Activities Promoted by the MP3EI per Corridor

Source: MP3EI p.48 and p.49

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Figure 2 - Estimated Investment Required for the Main Economic Activities of the MP3EI

Source: MP3EI p.50

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Implementation Phases of the MP3EI

Figure 3 - Implementation Phases of MP3EI

Source: MP3EI p.50

As illustrated above, Phase 1 (2011-2015) intends to focus on the implementation and

operationalisation of the MP3EI implementing committee. One of the action plans prepared is
the debottlenecking of different pending regulations, licenses, incentives and the commencement
of investment commitment. All of the pending regulations and permits at the national and
regional level must be revised to support the development of main activities related to spatial
management, man power planning, regional tax, application of communal land, mineral and coal
mining business uncertainty, simplification of business patterns in the oil and gas industry,
private sector participation in providing electricity, renewable energy, defence equipment,
railways, airports, tourism, and Public Private Partnerships (PPPs), among others. See Annex for
a detailed list of the pending laws.

Moreover, strengthening of national connectivity is a priority for Phase 1 by assigning primary

seaports and airports as international exchange centres in western and eastern Indonesia. Human
resources development, research facilities, research activities and other capacity building
activities will also be strengthened to serve as a good foundation for the first phase.

Phase 2 (2016-2020) intends to focus on the acceleration of long term infrastructure

development, increasing innovation to boost competitiveness, improvement of economic
governance in various fields and the promotion of industries that will create added value.

Phase 3 (2021-2025) will leverage on the competitive advantage of national industries globally
and high level technology adaption for future development projects. Successful implementation
of converting the infrastructure corridors into economic corridors will also take place in this
phase.

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The Action Plan, for successful implementation of the MP3EI, will be discussed later in this
report. This action plan has considered the international experience specifically from the Lower
Mekong Delta Action Plan and the Indonesia-Malaysia-Thailand Growth Triangle Action Plan.

Barriers to Implementing the MP3EI

Figure 4 - Barriers to Implementing MP3EI

1. Public
Communication
and Awareness

9. Clash with 2. Unclear

Environmental Synergy with the
Sustainability RJPMN

8. Lack of
National Financing
and Disincentives 3. A Need for
to Private Regulatory Reform
Investment Barriers to
Implementing
the MP3EI

7. 4. A need for
Underdeveloped Institutional
Human Resources Reform

5.
6. Regional
Underdeveloped
Disparities
Infrastructure

Page 16 of 87
 1. Public Communication and Awareness
No other policy initiative has received either such a
high profile or so much attention in the entire period
following the collapse of the New Order.
However, a lack of awareness amongst key
stakeholders is a significant finding of this project.
Despite the fact that the MP3EI sets out to implement
this project in a Not Business as Usual mindset by
involving stakeholders in a collaborative approach,
we have found that there is a disparity in awareness
and knowledge of the MP3EI amongst government
officials and members of the private sector and civil
society organizations. Notably, various levels of
awareness and knowledge were also found across
different areas of Indonesia. As expected, it was
government officials as a group who were the most
knowledgeable about the concept of the MP3EI.
Furthermore, government officials who were
interviewed in Jakarta had a better understanding of
the MP3EI than their regional counterparts.
As yet, there is no virtual secretary or one website
dedicated to the MP3EI. This acts as a barrier to
spreading awareness on the MP3EI, as there is not
one central source of information which can inform
stakeholders about the concept and ongoing
implementation of the policy. Many members of the
private sector have raised this as a concern. Not
having access to regularly updated information, on
relevant laws and regulations in particular, would act
as a barrier to investing, as noted by many members
from the private sector.
Verbatim Quotes from the Polling Center
in response to the question on the
socialisation of the MP3EI:
I feel that the MP3EI might be just
another government strategy that has
just been packaged differently
Private Sector, Kalimantan Seminar
The biggest obstacle the MP3EI faces
is the danger of conflict that will arise
during the implementation since the
actual planning of it was neither
discussed nor consulted with relevant
stakeholders and the community who
lives in the targeted areas of
development
Civil Society, Kalimantan Seminar
.. To be honest, I have only briefly
heard about the MP3EI and it seems to
me that it will be much focused on the
development of each respective
region...
Private Sector, Lombok Seminar
It is only after attending this seminar
that I knew about the MP3EI
Government Official, Lombok Seminar
.. It is still a one-way relationship with
the MP3EI Maybe later on will the
government feel it necessary to make a
special effort to socialise the MP3EI...
Government Official, Jakarta

Interviews undertaken in Kalimantan show that whilst all three categories of respondents
possessed a fairly good awareness of the MP3EI, there was a tendency for the respondents from
the government group to have a deeper awareness on the policy. Generally, most of the
participants of the Kalimantan seminar held in October 2011 were aware of the MP3EI, but some
stated that they had only researched the MP3EI following the invitation of the seminar.
Importantly, local government officials noted that they felt that the central government were
much more aware and, therefore, prepared for the implementation of the policy. Interviews
during the Lombok seminar showed that from the three categories of respondents, the private
sector and civil society had a lower level of understanding of the MP3EI than government

Page 17 of 87
officials. Although the government had a much better understanding of the MP3EI, many
answers were limited to giving the definition of the MP3EI.

Members of civil society organisations in particular stressed the need to involve the indigenous
people of Kalimantan in the implementation of the MP3EI. As mentioned in the outcomes of the
breakout sessions of the Balikpapan seminar, participants were weary of the possible rise in
tensions and resistance from indigenous peoples during development policy implementation like
the MP3EI. Similarly during the Lombok seminar, one participant from Kupang University noted
that the local customs and traditions of groups in Nusa Tenggara Timur must be respected and
involved in making economic development plans, otherwise the government runs the risk of
marginalising these groups, which could lead to social conflict. During the National Level
Seminar in Jakarta, Dr. Deddy Hadriyanto from Mulawarman University raised the same
concern. Bapak Deddy stated that the use of traditional customary law is still very strong
amongst many groups, such as the Sasak people in West Nusa Tenggara. As such, there may be
potential tension if drastic economic development does not respect the rights of such groups. It is
vital, therefore that effort is made to discuss with all groups of society about such large and
important plans like the MP3EI.

Furthermore, under the KP3EI (the Commission on the Acceleration and Expansion of
Indonesias economic growth) the organisational structures set up for the implementation of the
Kalimantan and Bali- Nusa Tenggara Corridors show that the majority of the people involved are
government officials. The President, Governors, Mayors, Para Walikota and Ministers have been
allocated as main stakeholders in the MP3EI Implementation Task Teams and Secretariat.
Organisational diagrams to demonstrate these can be found in the Action Plan section of this
report.4

Economist Fadhil Hasan has argued that the MP3EI has been prepared as a top-down Master
Plan, by the centre for the regions and that there are still many regions that are sceptical to the
MP3EI plan. "In order for the regions to have a sense of ownership over MP3EI, there should be
further socialisation to the regions. Moreover, so far, it is the governors that have been involved
in the discussions, not the regents, who have the autonomous authority," he has stated.5

Ultimately, involving all stakeholders is the only way to hear the views of the people who the
policy will affect. Such socialisation is necessary to achieve implementing a policy which can
benefit as many as possible, which essentially is the core aim of the MP3EI.

4
AusAID Indonesia Infrastructure Initiative, as taken from Kompas Newsaper, 9 th June 2011
5
AusAid Indonesia Infrastructure Initiative, as taken from Kompas Newspaper, 9 th June 2011

Page 18 of 87

2. Synergy with the RPJP and the
RPJM
Law No. 25/2004 regarding the National
Development Planning System mandated the
integration of Indonesias long, medium term
and annual development plans. This also
indicates that the Law acts as a legal umbrella
for the implementation of development plans in
order to guarantee the achievement of the
countrys goals.
The National Long Term Development Plan
(RPJPN) 2005-2025 has become the basis for
development programs for a period of 20 years
commencing from 2005 to 2025. In addition,
RPJPN 2005-2025 also serves as a guideline for
the preparation of the National Medium Term
Development Plan (RPJMN) which is a
development program 5 years in length. The
question that arises here is to what extent does
the MP3EI synergise with the RPJPN and the
RPJMN?6
The majority of spokespersons in the national
media have expressed a positive attitude
towards the synergy of the policies. For
example, Wahyu Utomo, the head of MP3EI
integration programme at the Office of the
Coordinating Ministry of Economic Affairs at a
conference in Yogyakarta stated that the MP3EI
programme is complementary to the National
Medium-Term Program Plan (RPJMN).7
Similarly, the Provincial Secretary of Nusa
Tenggara Barat delivered a welcoming speech
at the Lombok Seminar which expressed the
optimism that both sets of policies are aligned.
Dr. Ir. Max H. Pohan, CES, MA, Deputy
Minister for Regional Development and Local
Autonomy Affairs of National Development
Planning, BAPPENAS has stated that the two
6
National Connectivity 2011 Special Edition, Sustaining Partnership, The Connectivity of Six Economic Corridors
7
Wahyu Utomo speaking at MEP UGM, Yogyakarta, 23rd December 2011.
Verbatim Quotes from the Polling Center in
response to the question on the synergy among
the RPJP, RPJMN, and MP3EI:
..It is synergised because the RPJPN is more
on the general approach, but the MP3EI is more
focused on the national and regional economy
with all its pre-requisites to achieve economic
growth and push the economic growth with
various conditions. In this case, the regulations,
mindset of the people, and institutionalisation
should be right
Government Official, Kalimantan Seminar
..It is synergized with two considerations (i)
fairness in distribution of funds for each
corridor (ii) commitment of local and central
government..
Civil Society, Kalimantan Seminar
.. The MP3EI emphasises more the role of the
private sector in its implementation whereas the
RPJPN focuses more on the development
activities purely funded by the government
Government Official, Lombok Seminar
The MP3EI is the best amongst the existing
development plans since it basically focuses on
a long term national development plan that can
only be implemented in accordance with the
governments capacity
Private Sector, Lombok Seminar
..To be honest, I do not know the details of the
RPJPN and the MP3EI..
Private Sector, Lombok Seminar
Although not yet quite obvious, the
synergies should be found since there are
probably several components of the RPJPN that
is similar to that of the MP3EI...
Government Official, Jakarta
.. At the very least they should have a link.
They can probably complement each other with
regard to developmental support. As part of a
business society, I expect a synergy between the
MP3EI and RPJPN. The important thing is that
they dont overlap or veer off the course...
Private Sector, Jakarta
Page 19 of 87
policies are complementary but that their difference lies in their implementation: the MP3EI
promotes the private sector as the main actors, whereas under the RPJPN, the government is the
main actor for implementation. The reason for the promotion of the private sector as the main
actor for implementing the MP3EI is because a large proportion of the financing for the projects
is expected to come from the private sector.

Most of the stakeholders interviewed by the Polling Center throughout this project also stated
that they believed that the two types of policy can synergise, since they are both based on similar
founding principles.

Overall, participants from the Kalimantan Seminar had the view that the MP3EIs vision and
mission are aligned with the RPJPN. A few participants viewed the MP3EI as a part of RPJPN,
due to its coverage areas (divided into corridors); however, since its field (MP3EI is primarily
economically focused) is different from RPJPNs, therefore, the implementation of the MP3EIs
was viewed as different from the RPJPN. However, the Polling Center also found that such
synergy can only occur if supported by a number of conditions including: intensive commitment
and communication between the central and local government, aligned policies between the
central and local government and zero-deviation from the implementation actors of MP3EI.

Participants from the Lombok Seminar on the whole had the view that the two programmes can
be synergised because they viewed the MP3EI as an elaboration of the RPJPN, however they had
the view that the MP3EI is focused on developing infrastructure, while the RPJPNs scope is
broader.

Government officials in Jakarta who were interviewed by the Polling Center had an
understanding of the differences and similarities between the RPJPN and the MP3EI. However,
the majority of respondents were not able to say whether the MP3EI would support the RPJPN or
vice versa.

Despite the fact that there is generally a good feeling that the two programmes can be aligned, it
must be taken into the account that the previous section of this paper highlighted the fact that a
majority of stakeholders are under informed about the MP3EI. Therefore it can be argued that
their knowledge of the ability of the MP3EI to synergise with the RPJPN and RPJMN is limited.

Furthermore, the process to assign stakeholders to implement the MP3EI is still under process, so
there is not a clear policy as yet on how the tasks to implement the RPJPM, RPJMN and the
MP3EI will be separated or merged.

Page 20 of 87
 3. Regulatory Reform

Being the centre of all structural reforms, regulatory

reform is a vital component of the first phase (2011- Verbatim Quotes from the Polling
Center in response to the question on
2015) of the Master Plan. The first phase of the MP3EI
the government regulations:
aims to:
...The biggest barrier that every
At the national level: re-evaluate cross sector investor talks about is the lack of
regulations and restructure permit applications regulations and standardised
related to spatial management, labour, taxation and issues...
the ease of capital investments8; and Private Sector, Kalimantan Seminar
At the local level: review regulations and permits
concerning the mineral and coal, forestry and ...The government always restricts
the flexibility of the private sector;
transportation sectors as well as basic infrastructure.9
there is not even a distinction made
For investments in infrastructure to occur, the MP3EI between ownership and contracts even
recognises that a number of regulations need to be though the government is in
cooperation with the private sector.
removed, aligned or reviewed in at least seven national
This is the biggest obstacle faced at
laws, seven government regulations, five presidential the moment... Current regulations
regulations, presidential decrees, presidential must be reviewed to stimulate the
instructions, nine ministerial regulations and a number private sectors work and must be
of local regulations and permits. 10 The Annex contains backed up by the law...
a list of these proposed changes. So far, twenty seven Government Official, Jakarta Seminar
regulations have been completed, eleven regulations are
being revised, and eight regulations are to be revised.11

Banking on large private sector investments means that the Indonesian government will need to
create a more favourable and conducive environment that can win the trust of the private sector
through orderly regulations, fewer risks for misinterpretation, increased trust and the utmost
participation from investors in this process. The main problem is that Indonesia currently does
not have an independent regulatory review agency or an implemented Regulatory Impact
Analysis. Horizontal and vertical inconsistencies and overlapping laws and regulations remain
major issues that upset domestic and regional investment climate as well as hurdle infrastructure
projects.

Findings from the Polling Center data show that constraints could arise when the concept of
MP3EI is applied on the ground considering the current regulations and policies as well as
worries about overlapping government policies. For example, regulations and political parties
which change frequently in line with changes in the political leadership represent an obstacle

8
MP3EI 2011-2025
9
MP3EI 2011-2025
10
Asia Pacific Economic Cooperation, 2011, Indonesias Structural Reform Priorities, Residential Training
Workshop on Structural Reform Singapore
11
From a presentation given by Dr. Ir. Dedy S Priatna, MSc, Deputy for Infrastructure Affairs, Bappenas during the
UK FCO Strategic Asia Implementing the MP3EI on the National Level Seminar, Jakarta, 14 th March 2012.

Page 21 of 87
much lamented by business people. In light of this, it is necessary that all policy-makers and the
countrys legislative body have a clear understanding and strong commitment to adhere to the
principles of the MP3EI and RPJPN in making any further or revising policies and regulations.
Concerns from civil society about information relating to environmental regulations, the freeing
up of land, taxation, import duties, and tenders were also present. Members of the private sector
and civil society stated that they wanted transparent access to information and regulations related
to the programme. The private sector also expressed that they desired information on new
policies or changes to existing rules in both the national and regional level. The private sector
also felt that it was vital that such rules and regulations be amended, since the current state of
inconsistent policy from province to province creates a barrier for investors. Increased
consistency in policy and available up to date information on policy changes will make it easier
for private sector investors to easily assess the viability of investments and act quickly when they
see an investment opportunity. Moreover, members of the private sector and civil society are
both aware of the need for clear and consistent regulations in order to get rid of investor doubts
since these regulations would also affect the business players on their business expansion
activities while keeping up to local traditions and customs.

Delay of Land Acquisition Enactment

Despite the passing of the land acquisition bill, the parliament has postponed the issuance of its
presidential regulation12. Although the government intended to issue the regulation on February
2012, it could not push through since the draft regulation submitted by the National Land
Agency (BPN) still requires further discussion and clarification.13 The issuance of the
presidential regulation on the Land Acquisition is expected to be finished within six months
since the passing of the bill, which is June 2012. This has resulted in a prolonged process of
passing a law which many see as a progressive instrument for improving the countrys physical
infrastructure.

To remove the reluctance of the private sector to take part on the Public Private Partnerships
(PPP) programs, the finalisation of the Land Acquisition Law and Spatial Planning Law (RTRW)
are essential in realising the desired huge private sector participation in infrastructure projects
and in allowing the progress of the MP3EI to move forward. Our findings from the Polling
Center reports further implies that until this Law is passed and fully implemented, there remains
bottleneck issues and confusion at the local level as to what land would be used for business
pursuits, mainly in oil and gas, coal mining, and what land needs to be protected as part of the
Presidents commitment to reduce greenhouse gases by 26% in 2025.

Enactment of Tax Holiday Regulation

In August 2011, the most anticipated tax holiday regulation (Minister of Finance Regulation No.
130/PMK.011/2011) was enacted to provide two types of tax facility, namely (i) corporate
income tax exemption and (ii) corporate income tax deduction. An income tax exemption for
five to ten years will be granted to businesses in pioneering industries starting from the year
tax of the corporate taxpayers production. Issuance of this regulation is expected to boost

12
Jakarta Post, Enactment of land acquisition law delayed again, 14 th March 2012
13
Jakarta Post, Enactment of land acquisition law delayed again, 14 th March 2012

Page 22 of 87
investments in infrastructure, attract increased numbers of foreign investors, and ramp-up
resource-based manufacturing industries.

One of the worth mentioning stipulations under the Tax Holiday Regulation is the provision that
administers the possibility to prolong the exemption or deduction of corporate income tax. The
provision entails two elements to be regarded which are the preservation of national competition
and an evaluation of the strategic value of a particular business. 14 The lack of clarity in terms of
explaining when or how national competition needs to be maintained or the limitations of
understanding the strategic value of a particular business may cause various interpretations of
this stipulation or provision. Since multiple interpretations of this provision may lead to
uncertainty and ambiguity, the Indonesian government should clarify these provisions to
effectively implement the goals of the Tax Holiday Regulation.

Infrastructure Bonds
To help finance the needed infrastructure projects, the national government is preparing to issue
infrastructure bonds. Such bonds should immediately be issued in order to make plans to
accelerate infrastructure development a reality. By providing a government guarantee, bonds
would attract investors.15 Directorate General of Debt Management Rahmat Waluyanto recently
announced that such infrastructure bonds will not be issued until February or March 2012.16

4. Institutional Reform

Many stakeholders throughout this project argued that a large barrier to the implementation of
the MP3EI lies in the poor capacity of institutions, especially at the regional level; corruption and
a mismatch of communication and information between the national and regional level.

Corruption
Post Big Bang decentralisation in 2001, many scholars have argued that corruption has actually
increased as national control over the regional government has decreased.17 Indeed, a year after
regional autonomy entered into force, a wave of corruption cases swept across Indonesias newly
empowered regional parliaments. Commencing with the most storied case in West Sumatra in
2002, other regions followed soon thereafter South East Sulawesi, West Kalimantan and
Lampung. Virtually all regions saw allegations of corruption emerge. In 2006, there were 265
corruption cases involving local legislative bodies with almost 1,000 suspects handled by
prosecutorial offices across Indonesia.

14
SSEK Law firm website, 2011 Indonesian Law Review on Tax Holiday, Accessed on 2 nd April 2012
15
Investor Daily, 28 November 2011, WITHOUT EXTRAORDINARY BUDGET, MP3EI ONLY A DREAM:
Infrastructure Bonds to be Issued Soon, By Esther Nuky

16
Govt to launch global bonds in February 2012 Oleh Agust Supriadi December 19, 2011
17
Taufik Rinaldi, Marini Purnomo and Dewi Damayanti, Memerangi Korupsi di Indonesia Yang Terdedentralisasi
World Bank, May 2007

Page 23 of 87
However, recent years have seen corruption on the
decline. This could be due in part to increased
freedom in the media following the end of the New
Order which has encouraged public comment and
transparency in fighting corruption. Indeed,
President Susilo Bambang Yudhoyono has
reaffirmed that his administration has zero
tolerance on corruption. He noted that the
Corruption Eradication Commission has been
prolific in their investigations of graft, with notable
success since its inception.18
The international community is yet to catch up on
domestic progress on and corruption is still seen as
a problem in Indonesia. Indeed, Mr. Jonathan
Mantle, an international expert from London who
spoke at the National Level seminar, Jakarta, on
March 14th 2012 noted that from the international
perspective, Indonesias reputation for corruption is
not investable. In 2011, Indonesia was ranked at
3.0 on Transparency Internationals Corruption
Perception Index, rising from 2.8 in both 2010 and
2009.19 Corruption becomes a barrier since the
MP3EI relies on such large amounts of private
sector investment, including foreign investment.
Verbatim Quotes from the Polling Center in
response to the question on the
coordination between the regional and
national government:
..The local government is unprepared.
The implementation at the local level is not
easy since the community should also be
taken into account. Aside from that, the
RPJMN and the MP3EI should also be
synchronized
Government Official, Kalimantan Seminar
... There is an obstacle on the
coordination between the central and the
regional governments because I havent
seen proper coordination between the
two
Private Sector, Jakarta
an overlapping of authority and
stipulations has happened to an extent, as
well as a lack of clarity as to the
developmental priorities themselves. This
could continue unless the regional
governments will be cooperative..
Private Sector, Jakarta

There is a lack of synchronization

Coordination between the Regional and National between the centre and the regions. Whats
Government more the spirit of autonomy in the regions
Members of the Private Sector who were brings its own obstacles. Also there have
interviewed during the Climate Change Mitigation been clashes with communities over land
and the MP3EI seminar noted that the disputes which have yet to be resolved
implementation of the MP3EI is constrained by a also national planning tends to overlap
lack of coordination between central and local Civil Society, Jakarta
government, especially concerning overlapping
laws as regulations as discussed in the last section. Participants from the private sector who were
interviewed at the Kalimantan Seminar also argued that they receive different information on
laws and practices at the regional and national level, and thus this is confusing and, as a result, is
a deterrent to investing. As already discussed, a lack of awareness at the local government is
currently a barrier to implementing the MP3EI. This stems from a lack of an inclusive policy to
share data and plans between the national and regional government. David Ray, Director of the
Indonesia Infrastructure Initiative (IndII), an AusAID-funded facility to promote economic
18
President Susilo Bambang Yudhoyono, in The Oxford Business Group, Indonesia edition March 2012, p 19
19
Corruption Perception Index, Transparency International, 2011. Where 10 equals a very low level of perceived
corruption and 0 equals a very high perceived level of corruption.

Page 24 of 87
growth through improvements in both the quality and quantity of Infrastructure in Indonesia,
particularly in urban areas has spoke about the lack of coordination between the national and
regional level. He has stated that central to the findings of Indlls first phase is that institutional
problems, rather than resource constraints, are the primary reason for infrastructure failures. 20

Change in Mindset
Throughout the project, many stakeholders have emphasised for the need of a change in
mindset at the national and regional level in order for each region to synergise commitment
from all levels of government. Indeed, the MP3EI needs the backing of political will from all
echelons of government. However, implementing this is not easy and there is no one fixed policy
to implement such change.

5. Infrastructure Verbatim Quotes from the Polling Center

The national government has shown its commitment
to overcoming infrastructure challenges in the
MP3EI as well as in the current medium term
development plan (RPJMN) for 2010-2014.
Deputy for Facilities and Infrastructures of
Bappenas, Dedy Supriadi Priatna, has estimated that
the investment needed to implement the six
Economic Corridors reach the magnitude of Rp
4,012 trillion. Of that amount, about 43 percent, or
Rp 1,725 trillion, is needed for infrastructure
development. Meanwhile, the government's
contribution is only about 10 percent in the form of
basic infrastructures, such as roads, ports, airports,
railway network, and power plants. Private
companies and state-owned enterprises are expected
to play a major role to meet these investment needs.
Poor Infrastructure Prevents Economic Growth
The current poor quality of infrastructure is one of
the main factors preventing Indonesias economy
from growing at its potential rate of 8 percent.
Inadequate infrastructure also results in high
inflation compared to most of Indonesias peers in
South East Asia. Infrastructure development has
been slow in the past decade and has relied heavily
on government spending. The government has thus
far not allocated sufficient funding for infrastructure
in response to the question on the
provision of infrastructure:
To improve the qualities of
infrastructure and human resources, we
have to educate our human resources
properly. They should participate in
activities such as internship, or
educational training to increase their
knowledge and improve their skills so
that when investments come, they are not
only workers, but they can also be
individuals that we can form
partnerships with...
Government Official, Kalimantan
Seminar
The infrastructure has two types:
basic and social. Basic infrastructure
includes the roads, ports, and bridges.
Social infrastructure includes the
Indonesian language, institutions, and
regulations...
Private Sector, Lombok Seminar
..There must be synergy between the
MP3EI and RPJPN. MP3EI is oriented
towards infrastructure while RPJPN
generally has both physical and non-
physical aspects...
Government Official, Jakarta

20
AusAID Indll

Page 25 of 87
development, while participation from private investors is still far below what is needed.
Compared to other ASEAN-5 countries, many of Indonesias main airports and seaports are
outdated and often overcrowded.21 Meanwhile, electricity supply needs to be boosted to meet
surging domestic demand.

Standard Chartered Indonesia ran scenarios in February 2011 to assess the impact of
infrastructure development in the transport and electricity sectors. The best plausible outcomes
showed that Indonesias economy will grow between 7.1-7.6% between 2011-2014 if the private
sector participation rate reaches 50% of what is required and if the government increases
spending on transport infrastructure by 20% a year.22 Importantly, if the state-owned electricity
company PLN increases annual capex by 20% and if private sector participation reaches 50% of
what is needed, then growth could reach 6.9-7.5% over the same period.23

Electricity
As of February 2012, the electrification ratio of Indonesia stood at 71% with a target of 75% by
the end of 2012 and 90% by the end of 2014.24 There are regional disparities in the growth of this
sector, with the Java Island having a much higher rate of growth compared to other regions in
Indonesia. Indonesia as a country also falls behind its neighbours in the region. Singapores
electrification rate is already at 100% whereas Thailand and Malaysia currently stand at
approximately 90%.

ICT
Indonesia currently stands at 109th place in the E-Government Index, whereas neighbours
Malaysia, Singapore and Thailand stand at 32nd, 11th and 76th place, respectively. A 2011 World
Bank report found that increasing broadband connection by 10% results in a 1.12% increase in
GDP per capita in developed countries and 1.38% in developing countries.25

Water
Eastern Indonesia lags behind in clean water supply as compared to other regions, especially
Java.26 The Kapuas, Kapuas-Barito, and Mahakam river basins represent 70% of Kalimantans
population and area, and 40% of the river basin area located inside the Heart of Borneo. A
change in hydrograph of the river and increased demand for water for palm oil or other
agricultural sectors could lead to a lack of water in the dry season. Possible water users that may
experience negative impact are water companies, water-dependent industries, irrigated
agricultural lands, palm oil companies and local communities.27

21
Edward Lee Wee Kok, Eric Sugandi, Fauzi Ichsan, Jennifer Kusuma, Tai Hu, Indonesia Update, Standard
Chartered Indonesia, 14 February 2011
22
Ibid
23
Ibid
24
Antara News, PLN Targets Serving 90% of Households by Late 2014, 7 th February 2012
25
Mastel, (Indonesian ICT Society) Toward National Connectivity- Challenge and Opportunity), Dr. Setyanto P.
Santosa, Chairman of Mastel, Jakarta 21 September 2011 Presentation.
26
BPS Statistics, Value of Cleaned Water Distributed (Million Rupiah) 1995 2008. A table showing this data can
be found in the Annex.
27
Heart of Borneo: The Economics of Ecosystems and Biodiversity (HoB-TEEB). December 2011

Page 26 of 87
Poor Infrastructure Prevents Private Investment
The Regional Secretary of Buleleng, Bali, Nyoman Sukarma, expressed that Buleleng's efforts to
lure investors could be in vain, as the regency faced problems in meeting the increasing demand
for electricity and telephone lines. Due to inadequate infrastructure, economic potential is yet to
be met. Despite the current availability of electricity in Buleleng, the regency, which is included
in the Java-Bali interconnection power grid, suffers power shortages due to a lack of power
stations. Buleleng is also an example of lack of synergy between the regional government and
state owned enterprises, as the Regional Secretary stated We can develop new roads with our
budget, but the policies of state-owned electricity company PLN and state-owned
telecommunications PT Telkom regulate the electricity and telephone lines. I'm afraid our efforts
to lure investors will be useless without a clear policy from the two state-owned firms.28

Stakeholder Views
The Balikpapan Seminar also highlighted the importance of investing and developing
infrastructure in Kalimantan. Participants argued that the opportunities created by the MP3EI
would not be realised until sound infrastructure could be developed. Furthermore, a presentation
given by HSBC in the Lombok Seminar stressed the importance for the national and regional
governments to take the lead in basic infrastructure, whereas commercial infrastructure could be
left to the private sector. As yet, a clear distinction from the national government between the
two types of infrastructure is lacking.

Power supply to support infrastructure is currently inadequate to support the implementation of

the Kalimantan and Bali- Nusa Tenggara Corridors. Throughout the Balikpapan seminar, many
participants were weary of the irony of the fact that although Kalimantan has a huge energy
resource, its own electricity supply is inefficient and often leads to unpredictable blackouts. The
MP3EI states that the fishing industry is one which could be expanded in Kalimantan. However,
uncertain supplies of electricity have meant that this area has not attracted as many investors as it
would have otherwise.

Priority of Infrastructure as the First Phase of the MP3EI

Realising the importance of this barrier to the MP3EI, the Indonesian government has prioritised
the first three years of the implementation of the MP3EI solely to building basic infrastructure
and progress has already begun. Between May and December 2011, Rp 461.6 trillion has already
been spent on implementing the MP3EI programme, involving 91 infrastructure and economic
development projects. In 2011, the budget was 20.6 trillion, and for 2012 it is expected that Rp
36.7 trillion will be spent on infrastructure.

Infrastructure Projects already in Construction

The table below shows the number of infrastructure projects which have already begun in each
of the six economic corridors. However, what immediately stands out is the disparity between
the regions, with Java, Sumatra and Sulawesi receiving much more of the capital than other
regions. Many individuals from the private sector who were consulted as part of this project
stated that building basic infrastructure is a necessary requirement before any investment will

28
Jakarta Post, Asian Development Bank Calls RIs New Economic Plan Realistic, 14 th June 2011.

Page 27 of 87
take place. For example, PT Chareon Pokhphand, Bali, a company specializing in selling chicken
products, discussed at the National Level Seminar in Jakarta how they would want to expand
towards Nusa Tenggara Timur, but were restricted by the lack of reliable electricity resources
and roads in the eastern parts of the Corridor.

Figure 5 - Infrastructure Projects Under Construction

Source: From a presentation given by Dr. Ir. Dedy S Priatna, MSc, Deputy for Infrastructure Affairs, Bappenas
during the UK FCO Strategic Asia Implementing the MP3EI on the National Level Seminar, Jakarta, 14 th March
2012.

Poor Infrastructure and Regional Disparities

Figure 6 also shows that the plans for infrastructure investment allow for much higher levels of
financing for the Sumatra and Java Corridors than for the remaining four. Increasing investment
in infrastructure in Java and Sumatra, but failing to recognise the need in eastern Indonesia could
hinder the growth and levels of investment in eastern Corridors and affect the economic growth
of Indonesia as a whole.

Page 28 of 87
Figure 6 - Total Projects and Total Investments in the MP3EI

Source: From a presentation given by Dr. Ir. Dedy S Priatna, MSc, Deputy for Infrastructure Affairs, Bappenas
during the UK FCO Strategic Asia Implementing the MP3EI on the National Level Seminar, Jakarta, 14 th March
2012.

6. Regional Disparities

Essentially, the purpose of the MP3EI is to raise the GDP per capita from $3000 to $15,000 by
2025 whilst raising the living standards of Indonesias population. Therefore, fundamental to
preparing the implementation of this policy must be the priority of equaling economic growth
and investment amongst the six economic corridors.

Government spokespersons, for example, Dr. Ir. Endah Murniningtyas, M.Sc., Deputy Natural
Resource & Environment, BAPPENAS, during her keynote speech at the Climate Change
Mitigation and the MP3EI seminar, discussed that the disparities of Indonesias regional
economic growth are a huge problem. Thus it is the aim of the MP3EI to focus on the
development outside Java. However, looking at the financing allocation in the MP3EI it can be
seen that the eastern islands of Indonesia are still to receive less funding than their western
counterparts.

Moreover, Dr. Ir. Max H. Pohan, CES, MA, Deputy Minister for Regional Development and
Local Autonomy Affairs, National Development Planning Agency (BAPPENAS) argued that the
success of regional development determines the success of national development. Therefore,

Page 29 of 87
despite the fact that the MP3EI has increased national and regional funding, insufficient
financing to the eastern parts of Indonesia is likely to hinder the overall growth of the country
and is likely to worsen regional disparities. Although not stated by Dr. Pohan, allowing increased
regional disparities could arguably result in unity issues within the archipelago.

Figure 7 - Regional Inequality in Indonesia

Considering that the private sector have expressed a need for basic infrastructure to be in place
before planning to invest, it can be argued that not funding eastern Indonesia with enough money
to secure basic infrastructure, hinders its growth and could fall further behind growth seen in
Sumatra and Java. Lack of financing also means that the development of human resources and
science and technology are also stunted, and critically, private sector investment in such areas
becomes less attractive compared to areas such as Sumatra and Java which are becoming more
developed, have easier access to information, better human resources and better quality
infrastructure.29

Notion of Geography in Economics

A spatially diverse nation such as Indonesia allows for great variations in the endowment of
various provinces and districts and their ability to compete for a greater share of Indonesias
future economic development. Factors such as being blessed with natural resources, connectivity

29
Dr. Ir. Max H. Pohan, CES, MA, Deputy Minister for Regional Development and Local Autonomy Affairs,
National Development Planning Agency (BAPPENAS), presenting at a conference entitled Implications of MP3EI
on Manpower Planning Jakarta 22 December 2011

Page 30 of 87
and quality of infrastructure as well as a conducive business environment can set one province or
district apart from the other. The Java Island currently has a considerable advantage over the rest
of the archipelago due to better quality of infrastructure, higher levels of density of industry as
well as higher availability of skilled labour.

Varied Economic Growth in the Regions

The economy of the Sumatra region grew by 5.9% (YoY) in 2011, higher than its average
growth in the last three years of 5%. This economic growth has largely been supported by
increasing performance of the agriculture sector, especially the plantation sub-sector of palm oil
and rubber and supported by growth in the manufacturing industry. The performance of the
Trade, Hotel and Restaurant sector also grew by 7.5% (YoY). Similarly, economic growth in
Java was also high, and in 2011, growth stood at 6.7% (YoY). This growth was supported by the
performance of the industry and trade sectors. Export growth was also high in Java- from 16.3%
in the third quarter of 2011 to 19.9% (YoY) in the fourth quarter. Such good performance has
resulted from an increase in inter-island trading, since Java is one of the agricultural industry and
production centres and, thus can distribute its products to other regions in Indonesia. Similarly,
growth in Jakarta throughout 2011 reached a high of 6.8% (YoY), higher than the 2010 growth
of 6.5% (YoY) with strong consumption indicating the strength of the rising middle class in
Indonesia.30

However, looking at the Eastern part of Indonesia shows another story. Kalimantan, Sulawesi,
Nusa Tenggara, Maluku and Papua have had lower economic growth compared to 2010. This
lower economic growth was mainly due to labour strike and technical problems faced by many
mining companies, especially PT. Freeport in Papua. Whilst in 2010 economic growth was at
6.0% (YoY) in 2011 growth was at 5.5.% (YoY). Despite this, many infrastructure projects are
attracting investment such as the Ngurah Rai airport and the Sanggaran- Nusa Tenggara toll
road, both in Bali. Construction has also began on the Tayan Bridge which connected West
Kalimantan to Central Kalimantan. This particular project had required investment of
approximately Rp 575 billion.31

Varied Levels of Investment in the Regions

The Investment Coordinating Board (BKMP) has noted that the majority of both domestic and
foreign investments have not been equally distributed to all regions in Indonesia, and today most
investments are still concentrated in the Java island. This has implications for regional
connectivity since there is a well-known problem that the outer regions feel that they are caught
in an unfair exchange, since many of their exports go to prop up the development of the Java
Island, but receive less back in terms of investments.32

The Indonesia World Development Report of 2009, illustrated that during the 1970s-1980s some
provinces were consistently wealthy (Jakarta, East Kalimantan and Riau) and other provinces
were consistently non poor (North Sumatra, Central Kalimantan, West and East Java, Bali and

30
Office of Chief Economist, Mandiri Bank, Indonesia Update, February 2012 p17-19
31
Office of Chief Economist, Mandiri Bank, Indonesia Update, February 2012 p21
32
BKPM website: Regional Champions 2011, BKPM website

Page 31 of 87
West Sumatra) and others were consistently very poor (Nusa Tengarra, South East Sulawesi and
Maluku).33 However, after the 1980s, export oriented provinces such as Java and Bali grew
significantly faster because of export oriented manufacturing with the determining factor being
connectivity to global economy. The national media has noted that budget allocations to eastern
Indonesia are lacking and stand as a barrier to economic growth and increased livelihoods.34

Currently, the Java Island reaches 62% (equal to approximately USD 12.3 billion) of the total
foreign direct investment and 49% of the total domestic investment. In reaction to this, the
BKPM hope to establish the seven Regional Champions in 2012: Nanggroe Aceh Darussalam,
West Sumatra, Central Java, West Kalimantan, North Sulawesi, Central Sulawesi and South
Sulawesi. This initiative hopes to push for more domestic and foreign investment to Indonesias
regions by rewarding the regions who have attracted investment and provided a good service for
its investors.35

The MP3EI sets out the estimations for investments across the six economic corridors. Most of
the domestic and foreign investments are also distributed in the Java economic corridor which
amounts to a total of IDR 148 trillion, equal to 59% of the total investment. Finance split up for
other corridors is as follows in Figure 8.

Figure 8 - Indications of Investment in 6 Economic Corridors

Source: MP3EI

33
Consistently wealthy and consistently poor were defined as those close to the national average and those that
have experienced a significant change in relative incomes.
34
Jakarta Post, Nusa Tenggara Provinces Need More Investment, 26 th October 2011
35
BKPM website: Regional Champions 2011, BKPM website

Page 32 of 87
 7. Human Resource Development

The MP3EI economic development plan envisions Verbatim Quotes from the Polling Center
an expansion in economic activity and a shift in response to the question on Human
towards higher value added production through Resource Development as a barrier to
improved technological and skilled labour inputs. implementing the MP3EI.
The desired expansion of existing industries and
adoption of new processes, however, will require ... Another obstacle is the capacity of the
considerable expansion and adjustments to the human resources which are not yet ready
labour supply. If the ambitious growth targets are to to face the developmental challenges
facing Indonesia in the future
be realised, the planned output increases for each
Government, Jakarta Seminar
economic activity that shall contribute to these
increased growth rates will have to be met. This will ..The most important barriers are the
definitely require right human resource mobilisation. need to improve the quality of
infrastructure and of human resources.
At present, Indonesias education system is not We have to be brave enough to provide
producing enough skilled workers to reach the target courses or educate our human resources,
levels of development. Moreover, calculations of the at least they should participate activities
output of each economic activity are still lacking as such as internships or educational
well as the occupation structure of each of them. training in relation to increasing their
This lack of information may cause a delay in knowledge so that when investments enter,
they are not only workers, but they can
making the provisions required for educating the
also be individuals that we can form
workforce. partnerships with..
Government, Kalimantan Seminar
Indonesian training centres are also mismatched
with the planned corridor development.36 Socialising The main issue for me is the human
the concept of MP3EI with the training institutions resources, as the level of capacity of
is still an issue. There are still many provincial human resources is the largest factor
governments that are still not aware of the placement affecting the progress of a region. If the
of the training institutions. Moreover, there is also a mindset of the community does not
lack of political will and commitment among the change, then it will be difficult to advance
provincial governments from each corridor in the region..
coherently aligning their structures and plans Civil Society, Lombok Seminar
according to the MP3EI. Whats more, overall human resource infrastructure is lacking as people
from the field of training and education are not yet ready for the implementation of the MP3EI.

Weak harmonisation and integration of programmes between institutions is also a serious case.37
According to the speaker from Ministry of Manpower and Transmigration at the National
Seminar in March 2012, the short term and long term plan for every sector must be in place to
support the MP3EI in terms of human resource development. Accurate and up to date

36
Taken from the presentation of Abdul Wahab Bangkona (Dirjen Training and Productivity Development; Ministry
of Manpower and Transmigration) on Jakarta Seminar, March 14, 2012.
37
Taken from the presentation of Abdul Wahab Bangkona (Dirjen Training and Productivity Development; Ministry
of Manpower and Transmigration) on Jakarta Seminar, March 14, 2012.

Page 33 of 87
information as well as training centres aligned with the specialisation of each economic corridor
are necessary.

The Ministry of Education and Culture hopes to increase the number of engineering students.
The number of engineering students in Indonesia is comparatively low compared to BRIC
countries, South Korea, Singapore and Thailand.38 As such, increasing the number of
polytechnics, academies, and universities as well as improving the quality of training in these
institutions are needed if the Indonesian government wants to increase the number of engineering
students five-fold by 2025 to keep abreast with an accelerated economic development.

Upon transformation of an infrastructure corridor to an economic corridor, determining and

addressing potential skill mismatches is the key in generating job creation, higher economic
productivity, competitiveness, and high growth in Indonesia. Through the MP3EI, the present
pool of human resources is anticipated to meet the needs of all sectors in relation to the main
economic activities of each Corridor. In making an effective strategy on manpower planning,
policy makers must therefore understand first the development needs of the MP3EI and align
these needs according to the academic and vocational training programs, by tailor-fitting the
academic programs to the economic potential for each Corridor. Such vocational education
programmes should produce skilled graduates that will support the industries for regional
comparative advantage.

The MP3EI does not contain details of the manpower planning requirements for its
implementation. As such, supply side analysis is required to detect skill gaps that exist based on
the outlined economic activity in each centre of growth in each corridor.39 Moreover, quality
labour market information must be in place so that people can decide on informed choices about
their careers. Many jobs are present in the informal economy or no-contract jobs, which explains
the need to strengthen social dialogue to improve access to decent work. Entrepreneurship must
also be promoted so that University graduates can become job-creators rather than job-seekers40.

Mapping out the manpower planning needs for Indonesia will be a tremendous challenging
exercise as it requires detailed research in all sectors of economic expansion, strong time series
data, and substantial methodological capacity. In addition, projections of labour and education
requirements based from project outputs are subject to various possibilities in production
methods and labour market demand. This is likely to be a complicated process that cannot be
carried out alone by the Ministry of National Education (MONE) as it requires the cooperation of
other entities such as Bappenas and the Ministry of Finance to develop more accurate forecasts.
Moreover, specific forecasts for the conditions of each one of the provinces of economic
corridors are also needed.

38
Taken from the presentation of Abdul Wahab Bangkona (Dirjen Training and Productivity Development; Ministry
of Manpower and Transmigration) on Jakarta Seminar, March 14, 2012.
39
Taken from the presentation of Emma Allen (International Labour Organisation Indonesia) on Jakarta Seminar,
March 14, 2012.
40
H.E. Dr. Susilo Bambang Yudhoyono, Intenrational Labour Conference on June 14,2011.

Page 34 of 87
 8. Financing and Attracting Private Sector Investment

As shown, the MP3EI states that only 10 percent of the required

investment needed for the implementation of the six economic
corridors will come from the government state budget. The rest is
expected to come from state owned enterprises, a mix of sources and
at 51 percent, the majority is hoped to the raised by investment from
the private sector.

A key theme raised during this project was the lack of incentives for
the private sector to invest. Others have also argued that the private
sector have been relatively uninformed of the formation of the
MP3EI, and thus are not aware of the opportunities for investing in
the policy.

Indeed, it must be considered that all barriers discussed thus far in

this paper all
Source: MP3EI p49 contribute to an Verbatim Quotes from the Polling Center in
Source: MP3EI overall barrier which response to the question on the Biggest
does not actively Implementation Barriers for the MP3EI
encourage the private sector to invest in the
MP3EI: lack of socialisation of the master plan, .. The biggest barriers that every investor
talks about are the lack of regulations and
the need for regulatory and institutional reform at
standardised issues
the national and regional level, lack of sound
infrastructure and the need to improve human ..The obstacle is in the regulation, either
resources. Lipseya and Sjoholm agree, arguing central or local regulations. Some local
that a relatively poor business environment, regulations are overlapping, they should be
inefficient government institutions, low levels of synergized and government should be bold in
education and poor infrastructure all seem to be taking actions toward local regulations that
important explanations for the low inflows of need to be adapted. Definitely this will have
FDI to Indonesia.41 both positive and negative impacts..

The table below demonstrates the seriousness
need for institutional reform in corruption and
bureaucracy as the two major barriers which can
make private sector investment unattractive.
Yet, in 2011 and 2012 Indonesia has seen its
credit rating upgraded. In 2011, Standard and
Poors raised Indonesias bonds to BB+.
Moodys followed, upgrading Indonesia to Baa3,
..Foremost is the implementation in the
operational level on the local involvement in
the process, meaning it is not only the state
that enters there, but we must address how to
strengthen the local involvement so the
community can feel the benefits..
All views from members of the Private Sector,
Kalimantan Seminar

41
Robert E. Lipseya & Fredrik Sjholm, Foreign direct investment and growth in East Asia: lessons for Indonesia,
Bulletin of Indonesian Economic Studies, Volume 47, Issue 1, 2011

Page 35 of 87
from Ba1.42 Similarly, Fitch ratings have upped their grading to BBB- from BB+, putting the
country into investment grade after 14 years. Indonesia remains strong at 46th place in the World
Economic Forum Global Competitiveness Report 2011-2012.43 Furthermore, the government
recently announced that there has been an increase of almost Rp 1,000 trillion ($109 billion)
committed to the MP3EI, with the energy and transportation sectors attracting the most interest.
With the revised pledge figure, by the end of February 2012 investors had committed to
investing a total of Rp 4,925 trillion for the MP3EI.44

This seems to paint the picture that although large improvements are being made, such
milestones are fairly recent, and thus it is vital to ensure the private sector of such improvements
and commit to the continuation of improving the investment climate.

The Transportation Ministry has requested Rp 4.17 trillion in additional funds to complete its
projects, in particular developing new river and sea routes that will aid the movement of goods
and people. Such links will be vital for lowering business costs and accelerating economic
growth. Besides helping develop transportation in less-developed eastern Indonesia, the fund is
also to be spent on supporting the development of the MP3EI economic corridors.

Figure 9 - Factors for Doing Business in Indonesia

Source: Global Competitiveness Report, 2010-2011, World Economic Forum

42
Mamta Badkar, Indonesia Just Got Its Investment-Grade Credit Rating Back, Business Insider, 19 th January
2012
43
World Economic Forum, The Global Competitiveness Report 2011-2012.
44
Editorial As MP3EI Blossoms, Resolve Is Needed, March 13, 2012, Jakarta Globe

Page 36 of 87
Furthermore, official international partnerships
have been made. For example, Indonesia and
China recently agreed on the establishment of a
working committee reflecting China's support of
the MP3EI. It is hoped that China will take part in
the implementation of the MP3EI, which has been
apparently welcomed by Wen, Antara news
agency reported.45
Opinions collected throughout this project found a
marked contrast in the perceived roles of
implementation and ownership of the MP3EI.
Many government officials speaking about the
MP3EI noted the importance of the private sector
to contribute a large amount of money to finance
projects. Many government spokespersons thus
argued that the private sector was the main driving
force for the implementation of the MP3EI, and
that the government role should limited to
overseeing the implementation and to provide a
conducive investment climate.
However, interviews with members of the private
sector show a miscommunication in the intended
roles of stakeholders for the implementation of the
policy. Indeed, the verbatim quotes shown here
demonstrate that some members of the private
sector view the government as the main driving
force for the MP3EIs implementation.
Therefore, there is a risk that both groups of
stakeholders will expect each other to be the
impetus for the MP3EI and as such no group will
take full ownership and responsibility for the
MP3EI to meet its targets and goals.
Verbatim Quotes from the Polling Center in
response to the question on the Roles of
Government and Private Sector in the
Implementation of the MP3EI.
..Bappenas and Coordinating Minister of
Economic Affairs conducts the planning
process, APBN will be involved there, so the
DPR will also enter at the implementation
level, eventually, the debate on the APBN
will still take place at the DPR, how far will
they be committed? MP3EI is huge, the role
of APBN would probably be around 8%,
from the private sector 92%...
Government Official, Kalimantan Seminar
..Definitely the most important actor
should be the local government, then also
the different associations who represent
some communities, say KADIN, APINDO,
community groups, and private sector
associations, and academics can also
provide a neutral opinion
Private Sector, Kalimantan Seminar
..All parties are very important. The
importance of the government is from the
aspect of policy making, budgeting and
spatial planning. Investment from the
private sector is also essential as they are
directly involved in the project..
Government Official, Jakarta
..The most important role is played by the
government, as regulations stem from them.
The government formulates the rules..
Government Official, Jakarta

..The government, because in a developing

Fiscal Decentralisation
country, the government always takes a
The increase in fiscal autonomy at the regional leading position..
level and implicit decrease in fiscal responsibility Private Sector, Jakarta
for the regions at the centre increases the variation
in regional fiscal spending according to regional capacity rather than need. In the context of
decentralisation, rather than the central government spending national funds equally across the
regions or subsidising those in greater need, it becomes incumbent on regional authorities to

45
Jakarta Post, China Agrees to Support Indonesias Economic Master Plan, 23 rd June 2011.

Page 37 of 87
raise funds to bankroll their own fiscal spending. Government spending in each region is
therefore determined by fiscal capacity at the regional level which in turn depends on regional
rather than national levels of economic activity. This sees a reduction in inter-regional
redistribution of public finances resulting in a failure to counteract the emerging inter-regional
inequalities that result from variable economic activity at the regional level.

Inter-regional variation in economic activity translates to variation in regional fiscal capacity

The existence of variation in economic activity across regions translates (in the absence of
centrally enacted fiscal transfers) to variable fiscal capacity at the regional level which can
increase inequality where it is sensitive to levels of fiscal spending. Uneven fiscal spending can
entrench interpersonal income inequalities, for example, when low income groups are unable to
increase their income levels through improved education and health outcomes and when they are
vulnerable to income shocks in the absence of social protection mechanisms.
Regions receive variable fiscal funds when the capacity of regional authorities to raise funds,
primarily from the tax base, is variable. This might vary according to regional comparative
advantage such as the extent of urbanisation, the size of the market, natural resource
concentration, infrastructure, education levels of the citizenry and so on and according to the
economic conditions set by the regional authority in terms of, for example, investment
regulation. When decentralisation has been initiated as a result of political concerns to address an
uneven distribution of political sensibilities across the country, perhaps derived from
concentrations of different ethnic groups in certain areas, the extent of policy variation of this
kind across regions is likely. For example, where decentralisation has been enacted to address the
economic grievances of minority groups who feel they have been negatively impacted by market
functioning, a regional authority might represent their interests by disabling market forces. This
could reduce interregional inequality through redistributive state intervention but might increase
interregional inequality in the long term by hindering the regions economic growth.

9. Environmental Sustainability

Climate change mitigation and the preservation of the environment are two major concerns that
arise when looking at this ambitious policy for growth and economic development. Alongside
the MP3EI is Indonesias commitment to reduce carbon emissions. At the G20 Pittsburgh
Summit in 2009, President Susilo Bambang Yudhoyono committed to reducing green house gas
emissions by 26 percent by 2020 combined with its target of maintaining a 7% per year growth
level. However, as yet the MP3EI is not aligned with the target to reduce carbon emissions. The
MP3EI policy itself is lacking in a concrete plan as how to increase economic growth whilst
being environmentally sustainable.

Under the REDD+ initiative, Indonesia will expand the scope of its activities from avoided
deforestation and degradation, to include forest restoration, rehabilitation, sustainable
management and/or reforestation. Indonesia could earn up to USD $1 billion annually by selling
carbon credits to industrialised countries. The World Bank has noted Indonesias progress
towards meeting its target of reducing greenhouse gases, stating that Indonesia is setting an

Page 38 of 87
example for other countries to follow. Yet, the REDD+ initiative, as one of the most significant
ways to mitigate climate change has not yet been integrated into the MP3EI policy. The REDD+
initiative is only mentioned very briefly in the MP3EI itself, and does not specify how to
implement the initiative within the MP3EI.

Clash with Environmental Sustainability: Kalimantan

Issues surrounding Kalimantans environment in particular were prominent throughout this
project. In a meeting with the head of BAPPEDA, East Kalimantan in September 2011, it was
discussed that the BAPPEDA staff were concerned that the MP3EI promoted only the extraction
of non-renewable resources for the Kalimantan Corridor. The members of BAPPEDA feared that
if the region does not move towards value-added goods there will be a risk of economic shock
when resources run out. During the first seminar in Balikpapan, East Kalimantan, the theme of
environmental sustainability was raised as a particular concern for the implementation of the
Economic Corridor. Arie Rompas, Executive Director of WALHI, Central Kalimantan put forth
his opinion that a development model that still relies on natural resource extraction ignores
environmental sustainability and causes ecological damage in Kalimantan.

Climate Change Mitigation and the MP3EI Seminar

The third seminar in this project looked specifically at aligning climate change mitigation with
the MP3EI. On Wednesday 8th and Thursday 9th February 2012, the third seminar was held in
Jakarta to discuss how to align environmental sustainability with the MP3EI. A total of 85 people
attended this two day event, including participants from across Indonesias regions as well as one
special international guest, Dr. Vlasios Voudouris from the London Metropolitan University.
Key findings from this Seminar are as follows:

Ir. Sulistyowati, MM. (Assistant Deputy Minister for Climate Change Mitigation and
Atmospheric Function Preservation, Ministry of Environment of Republic of Indonesia) noted
that so far, Indonesia has made progress to support climate change mitigation for example the
Presidents target to reduce carbon emissions by 26%. To support the implementation of this
plan, the government has conducted a preliminary inventory of all economic daily activities from
the lower level of government institutions such as the district level. Among various sources of
carbon emission, the forest and peat land accounts for about 60% of the emission in Indonesia
which means that the emission from this sector is substantially high.

Dr. Endah Murniningtyas, M.Sc., Deputy Natural Resource and Environment, BAPPENAS
noted that the Greenhouse Gas National Action Plan consists of core activities, integrated among
sectors, to reduce emissions and support activities to strengthen policy framework. The six
economic corridors in the MP3EI Policy should be implemented across 33 provinces and it is
better for each provincial government to prepare their own formulation of their GHG action plan.
To smooth the implementation of the plan, each ministry and government institutions should
have consultations with their branch offices in the regions in order to arrange and formulate the
regional action plan (RAD GRK). Furthermore, the plan could be cemented by implementing it
as a Governor decree. For all 33 provinces, RAD GRK is a communication tool among regions
and also between regions and the central government. The government should realise that
socialisation is key for the long term development of the plans.

Page 39 of 87
Dr. Ir. Kirsfianti L. Ginoga, M.Sc., Head of Research and Development Center for Climate
Change and Policy, Ministry of Forestry stated that REDD+ and other methods to mitigate
against climate change need to be integrated with the MP3EI. Reducing emissions from forestry
is so important in Indonesia because approximately 80% of the countrys total emissions come
from this sector. REDD+ should also be prioritised in certain parts of Indonesia such as the
primary forest in Papua, Sulawesi and Kalimantan. The strategy of MP3EI and GHG NAP must
be translated into land based mitigation in sectoral and at the regional level and programmes and
activities in each sector must be clear and operational for every location.

Nyoman Iswarayoga, Climate and Energy Program Director, WWF Indonesia argued that the
MP3EI has neglected environmental sustainability. Therefore, considering that there are still
forested areas in Indonesia, such as Kalimantan, it would be a good step if we could create a
green zone for conservation. It then leads to an initiative of implementing Green MP3EI where
there should be better management practices in agriculture and plantations, improving spatial
urban planning where it can be used as a reference in the development and the government
should strictly implement the approved spatial planning, Green Business Initiative, and Green
Infrastructure Development.

Dr. Daniel Murdiyarso, a Senior Scientist from CIFOR argued that in the Kalimantan Corridor,
according to an analysis on Indonesias forest moratorium, implementing REDD+ will not be
enough to meet the targets to reduce greenhouse gases. There should be multi-sector efforts to
prepare a strong regulatory framework and law enforcement in order to integrate REDD+ into
the MP3EI. If we look at the Kalimantan Economic Corridor, the regions theme is dedicated for
a centre for the Production and Processing of Mining Goods and National Energy. The region
has various challenges in reducing its carbon emissions because the capacity for storing the
carbon is fairly small since reforestation is not the solution for reducing emissions. The ever
expanding oil palm plantations in Kalimantan are a huge challenge.

Prof. Dr. Daddy Ruhiyat, Executive Director of Climate Change Board, East Kalimantan stated
that the East Kalimantan region has been identified as region with the highest carbon emissions.
The forestry and palm oil sectors are the biggest contributors to these emissions. Since the
MP3EI promotes the forestry and palm oil sectors as well as other sectors using non renewable
resources such as coal, the MP3EI in the Kalimantan Corridor does not promote environmental
sustainability. It is not clear how the MP3EI intends to work towards lowering environmental
sustainability in the Corridor.

Similarly, Benja Victor Mambai from WWF, Papua, spoke of the problem in connectivity in
Papua due to underdeveloped infrastructure. In the future through MP3EI, it is hoped that there
will be an increased number of infrastructure projects to fulfill this need. In order to do so, the
local government has prepared to improve spatial urban planning towards a goal of making
Papua more sustainable in their economic development.

Ir. A. A. Bagus Sudharsana, Dipl. PLG, Head of the Denpasar Environmental Agency, Bali,
stated that actions have also been integrated into the Spatial Plan, however this has yet to be

Page 40 of 87
implemented. The local government wants to work on mitigating climate change also because
they intend for Bali to be a tourist attraction for the long term. The local government also intends
to pay special attention to indigenous wisdom throughout the implementation of the
programmes. The areas already to be investigated are air and water pollution as well as traffic
congestion.

It was argued by Heru Prasetyo, Deputy I, UKP4 as well as Dr. Rob Daniel Technical Advisor,
PT PricewaterhouseCoopers Indonesia Advisory that environmental sustainability in the regions
must actively involve local communities.

Heru Prasetyo also discussed that the commitment to reduce carbon emissions is not well
supported due to unreliable data of the carbon warehouse or land coverage among ministries. At
the same time the regulatory framework needs to be reviewed, in the sense that it should
overcome the problem of overlapping regulations.

Dr. Dodik Nurrochmat, Center for Climate Risk and Opportunity, in South East Asia Pacific
(CCROM SEAP) argued that there are not enough financial incentives for stakeholders to
change trajectory and move to environmental sustainability. The national government needs to
assess what financial offers can be made.

Box 1 - Key Points from the Low Carbon Economy Knowledge Hubs

This project also involved organising two Low Carbon Economy Knowledge Hubs, one in February 2012 and
one in March 2012 to discuss how to implement a low carbon economy in Indonesia. Key themes and
conclusions from these two sessions follow. Participants list for these events can be found in the Annex.

First Low Carbon Economy Knowledge Hub

Presidential Decree No. 3/2012 was passed on the Spatial Plan of Kalimantan. In this regulation, the
government confirmed that Kalimantan should maintain at least 45% of the land as forest. However, members
of the Low Carbon Economy Knowledge Hub argued that in Kalimantan there is currently no scientific based
research underlying the figures stated by the President both for the carbon emission reduction and also for the
forested areas.

Regarding the socialisation programme of Low Carbon Growth Strategy (LCGS) conducted in 14 districts,
research has found that most of the districts are not ready to implement the Spatial Plan. A general lack of
enthusiasm and low public awareness was a common theme when the LCGS team visited the 14 districts to
introduce the Spatial Plan. There should be a particular mechanism that might attract societies environmental
awareness so the public can also contribute to the program. Thus, even though the concept is ready to be put
on the ground, the implementation is currently delayed.

Regarding the Presidential Regulation No. 71/2011 and Presidential Regulation No. 61/2011 about
Greenhouse Gas Emission National Action Plan (GHG NAP) or RAN GRK, there is still an institutional
problem across provinces and regions in Indonesia. There should be working units for 5 sectors (forestry and
peat land; agriculture; energy and transportation; industry and waste) in each province. However it is unlikely
that each working unit is ready to implement activities stated on those government regulations.Page 41 of 87

There are still various perceptions about REDD+, regarding its concept and also the desired expectations from
the government, private sector as well as from civil society. It is important to assess the monitoring of pilot
Second Low Carbon Economy Knowledge Hub

Many expected that when the government made a commitment to reduce carbon emissions by 26%, that the
government had already prepared funding allocation. In addition, if there is international funding available,
the carbon emission reduction will increase by 41%. Stakeholders at the Hub noted, however, that it is likely
that the financial disbursement scheme will be unclear and unprepared. The government expects that the
general public should also take part in the government programs in reducing carbon emissions. However, the
government needs to make clear the funding and financial disbursement in order to attract the participation
of stakeholders.

There should be a safeguard mechanism and monitoring scheme to oversee the funding allocation. In
addition, the community should also be a part of the monitoring scheme. The public and particularly
indigenous groups need to be aware of the incentives that they will receive, but also that when they do
receive incentives it is for the purpose of preserving the biodiversity of the forest, which in the end also
serves to benefit themselves.

The differences between carbon mitigation and carbon sequestration need to be made clearer and socialised
to the general public, as there is confusion between the two.

Since moving to a Low Carbon Economy is still in its infancy, the first step should be work on capacity
building for carbon market readiness not only in mitigation but adaptation. Moving to a low carbon economy
needs to be integrated into the MP3EI and thus the MP3EI needs to be adapted to include low carbon
strategies which complement economic growth. The forestry, industry, tourism and fisheries sectors should
made priorities.

Page 42 of 87
Differing Perceived Opportunities and Barriers to Implementing the MP3EI at the National
Level and in the Kalimantan and Bali- Nusa Tenggara Corridors.

Data collected from The Polling Center has shown that perceived opportunities and barriers at
the national level as compared to the Kalimantan Corridor and Bali- Nusa Tenggara Corridor
level generally do not stray too far from common themes. Despite this, however, there are
different emphases at the national level than at the regional level, as well as key differences
between the social, political and economic make up of the Kalimantan and Bali- Nusa Tenggara
Corridors.

With each of the six Corridors having a unique set of comparative advantages, the MP3EI has
built upon these sets of regional characteristics to create unique themes for each corridor. Thus it
follows that since each Corridor has a different emphasis on economic activity, levels of poverty,
levels of capacity of human resources and infrastructure, each Corridor is likely to have a
different set of requirements for its implementation. The next section will discuss the differing
implementation requirements at the national level and for the Kalimantan and Bali- Nusa
Tenggarra Corridors. Below shows the differing perceived opportunities and barriers to
implementation derived from the three rounds of interviews carried out by the Polling Center in
Jakarta, Kalimantan and Lombok.

Figure 10 - Perceived Opportunities at the National Level

Increased Levels of Developed

Investments Infrastructure

Envrionmental Improvements in the

Protection Social Economy

Figure 11 - Perceived Barriers to Implementation at the National Level

Lack of
Lack of Coordination Underprepared
Planning and Human
Socialisaiton Resources
Lack of
Limited Coordination
Unclear Spatial Flexibility for Between
Plans the Private Government
Sector and Private
Sector

Overlapping
Regulations
Page 43 of 87
 Figure 12 - Perceived Opportunities in the Kalimantan Corridor

Increased Capacity
Investment in Increased Value
of Human
Infrastructure Added Products
Resources

Reduction of
Job Creation
Regional Disparities

Figure 13 - Perceived Barriers to Implementing the Kalimantan Corridor

Lack of
Syncronisation
Environmental
between Regulations Risk of Corruption
Damage
at the Central and
Regional Level

Potential Resistance
Underdeveloped
Lack of Financing from the Local
Infrastructure
Community

Lack of Connectivity
Indigenous Rights are Too Much Reliance
Within the Four
Not Taken into on Unrenewable
Regions of
Account Resources
Kalimantan

Page 44 of 87
Figure 14 - Barriers in the Kalimantan Corridor broken down by frequency of mention:

Mentioned by Government, Private Sector and Civil

Society:
Lack of Socialisation
Risk of Corruption

Mentioned by Government and Private Sector:

Lack of Syncronisation between Regulations at
the Central and Regional Level
Underprepared Local Government
Mentioned by Private Sector and Civil
Society:
Potential Conflict with Indigenous
Groups

Mentioned by Government and

Civil Society:
Underdeveloped Infrastructure
Underdeveloped Human Resources

Mentioned by Government Only:

Unequal Funding
between
the
Regions

Figure 15 - Perceived Opportunities in the Bali- Nusa Tenggara Corridor

Increased Increase in
Investment in
Investor Tourism and
Infrastructure
Relations Food Security

Increase in Growth
Job Creation Micro Potential of
Entrepeneurism Marine Sector

Page 45 of 87
 Figure 16 - Perceived Barriers to Implementing the Bali- Nusa Tenggara Corridor

Low Awareness of Unsupportive Small Regional

the MP3EI Regulation Allocation Fund

Underdeveloped Underdeveloped
Lack of Technology
Infrastructure Human Resources

Cultural and Local

Incomplete Lack of Incentives
Customs which
Operational for Private
could Clash with the
Procedures Investment
Tourism Sector

Figure 17 - Barriers in the Bali- Nusa Tenggara Corridor broken down by frequency of
mention:

Mentioned by Government, Private Sector and Civil

Society:
Underdeveloped Infrastructure
Underdeveloped Human Resources

Mentioned by Government and Private Sector:

Low Awareness of the MP3EI
Unsupportive Regulation
Lack of Incentives for Private Investment

Mentioned by Private Sector and Civil

Society:
Imcomplete Operational Procedures

Mentioned Only by Government:

Lack of Technology
Small Regional Allocation Fund

Mentioned Only by Civil Society:

Cultural and Local
Customs which could
clash with the Tourism Sector

Page 46 of 87
Implementation Requirements and Recommendations for the MP3EI

During the National Level Seminar on March 14th, Dr. Prasetijono MJ, M.A, Deputy of
Economy, National Development Planning, BAPPENAS stated that he views the MP3EI as a
living document that requires inputs and even criticism. As a living document, plans for
implementing the MP3EI are not completely resolute. The following section will analyse a plan
for implementing the MP3EI at the national level as well as looking specifically at the
requirements for the Kalimantan and Bali- Nusa Tenggara Corridors. Firstly, this section will
look at the international experience of implementing economic corridors and lessons will be
drawn for the Indonesia experience. Roles of stakeholders and levels of preparedness will also be
assessed before making final recommendations.

International Experience of Implementing Economic Corridors

A Closer Look on East-West Economic Box 2 : EWEC Flagship Projects

Corridor of Greater Mekong Sub-region
(GMS): Turning Infrastructure Corridors into A. Core Transport
Economic Corridors (1) East West Transport Corridor
(2) Water Transport Development
A decade after the launch of the East-West (3) Railway Development
Economic Corridor (EWEC), the Corridor has (4) Air Transport Development
established many of the targeted infrastructural (5) Cross-border facilitation in the
benchmarks. A holistic approach has been movement of people and goods
adopted in developing a cost-effective strategy (6) Human resource development for the
of placing an efficient transport system for the transport sector
movement of goods and people in the sub- B. Other Infrastructure
region while improving telecommunications, (1) Development of electric power grid
energy infrastructure, tourism as well as a (2) Promotion of regional energy
contributory policy and regulatory environment cooperation arrangements
that encouraged private sector involvement and
(3) Telecommunications backbone
development. Twelve flagship projects are
development
classified under two categories of transport and
(4) Tourism development
other infrastructure and are managed by various
working groups. (5) Economic corridor Initiatives
(6) Initiatives of the Ministry of Economy,
Stages of EWEC Implementation Trade and Industry (ASEAN-METI),
Stage 1: EWEC Transport Corridor Economic and Industrial Cooperation
Committee (AMEICC), and Working
Similar to the MP3EI, the initial stage of the Groups on West-East Corridor
EWEC has focused on the establishment and Development
improvement of transport facilities and
infrastructure to efficiently move goods, services, and people across country borders.
Improvement on such was considered to be important in placing linkages along the corridor.
Connecting the physically linking areas in the eastern portion of the corridor has been achieved
with the assistance from the ADB, JICA, and the Japan Bank for International Cooperation

Page 47 of 87
(JBIC). In the western portion, plans are outlined for the completion of the Mawlamyine to
Myawaddy section of the highway with the support from Government of Thailand. Technical
Cooperation for the EWEC transport corridor has been provided much by the ADB whilst JBIC
has been the dominant source of financing the infrastructure construction. JBIC has accounted
for about 80% or almost $900 million of the EWECs overall transport infrastructure.

Stage 2: EWEC Economic Corridor

The second stage of the corridors development focused on poverty reduction, development of
rural and border areas, improvements on the wages of the low income and vulnerable groups,
promotion of tourism along the corridor, and provision of jobs for women. These projects are
being financed by international, regional, bilateral donors, development partners but ADB is in
the forefront of development financing. Technical support however is being supported by both
the ADB and Japans ERIA for the development of special economic zones (SEZs) along the
corridor. Tourism initiatives are also active with the Mekong Tourism Development Project
(MTDP) and the East-West Economic Corridor Tourism Project.

Development Challenges
Although the major infrastructure components of the EWEC have now been realised and that the
development of EWEC has involved much progress in facilitating trade, improving networks of
transportation, and promoting private and tourism industries, consensus is still lacking among
government, development partner officials, private sector, and other stakeholders on converting
the transport corridor into an economic corridor46. With this, Indonesia can take advantage to
learn from and avoid the hurdles in the EWEC economic corridor transformation. The slow pace
of transforming the transport corridor into a fully-fledged economic corridor is attributable to
some critical issues:

1. Cross-border investment liberalisation regulations

2. Agribusiness development
3. Financial schemes for business operations along corridor
4. Infrastructural improvements in gateway nodes
5. Secondary roads to let the rural communities pass through the main artery of economic
corridor
6. Services on business development for small and medium enterprises along the poorer
areas of the corridor
7. Management of tourism initiatives and projects at both the national level and across the
EWEC countries
8. Infrastructural services and road access to tourist spots
9. Model or benchmarks to assess the performance and progress in achieving the goals that
have been established for the EWEC.

46
Asian Development Bank, 2010, Strategy and Action Plan for the Greater Mekong Sub-region East-West
Economic Corridor

Page 48 of 87
Accomplishments and Lessons from the EWEC Implementation
The major accomplishments of the initial strategy and action plan outlined in the 2001 Pre-
Investment Study are accountable to those that have been covered by the Cross Border Trade
Agreement (CBTA), the GMS tourism sector strategy, and the GMS Business Forum. To date,
only about one-sixth of the policy, project, programme, and institutional projects have been
implemented and about one-sixth have been partially implemented or are in the process of
implementation.

A number of cross-border investment liberalisation policies, programmes, and agribusiness

projects; information systems on trade flows and cross border-investments; financial schemes to
support business operations along the corridor; port improvements in the gateway nodes; and
business development services for micro and small-sized businesses along the corridor areas are
amongst the initiatives that have not been implemented.

The following are the lessons learned from the EWEC 2001 Strategy and Action plan47:

1. Rather than implementing wide-ranging initiatives, a few targeted initiatives comprising

of well-defined areas are more likely to be easily implemented.

2. Successful realisation of cross-border investments was hindered by problems in (i) good

governance and corruption, (ii) existence of adequate infrastructure, (iii) clear and
responsive policies on foreign investment, (iv) the establishment of well-functioning
industrial zones, (v) the integration of small and medium enterprises into value chain
activities along the poorer areas of the EWEC. Moreover, activities related to private
sector promotion were carried out by the GMS Business Forum.

3. There are remaining difficulties in evaluating the EWEC performance in terms of its
impact on cross-border economic activity due to data limitations and lack of
transparency. Moreover, there is an absence of benchmarks and standards for assessing
the performance. As such, it remains challenging for member countries to develop
ownership, oversight, and accountability on the progress of turning the EWEC into an
economic corridor.

4. The EWEC developments have strong linkages to National Development Plans and
provincial development strategies of all member countries. It is viewed as a key strategy
for national and regional development. This ownership however needs to be integrated
into the new strategy and action plan both in terms of how implementing mechanisms are
formed and in terms of establishing benchmarks and performance measures.

47
Asian Development Bank, 2010, Strategy and Action Plan for the Greater Mekong Sub-region East-West
Economic Corridor

Page 49 of 87
Figure 18 - EWEC Linkages to National Development Plans

Source: Asian Development Bank. 2010. Strategy and Action Plan for the Greater Mekong Sub-region East-West
Economic Corridor

5. Reduction of border costs is important as much as developing EWEC physical

infrastructure because connecting inter-country provinces with highways is not sufficient
to facilitate the movement of goods and people. To maximise the benefits of
infrastructural developments, reductions in border costs must take place to fully affect the
potential impact on the geographic distribution of populations, raise income levels, and
boost development of industries.

6. Creating partnerships can be challenging as opportunity gaps still exist (i) between public
and private sectors, (ii) in establishing economic activities across borders, (iii) in value
chains, (iv) and among development partners and NGOs.

7. Formulating comprehensive plans and roadmaps is still not a mainstream practice that is
why there is a need for improving a holistic master plan approach for every sector and
across sectors (i.e. linking support sectors with leading sectors).

8. The lack of adequate statistical information made it difficult to assess progress and
achievements of the EWEC over the last ten years on the transformation of the transport
corridor into an economic corridor. Investment and cross-border trade data are difficult to
get hold of. Where available, it would definitely identify bottlenecks to further progress
and improve monitoring and evaluation of achievements. An effective monitoring and
evaluation framework for the EWEC containing benchmarks and quantifiable targets is
greatly needed and must be provided on a yearly basis by the various sector working
groups. Impact indicators must also be available as part of the evaluation reports and
must be submitted to the ECF and the GMS leadership.

Page 50 of 87
The Indonesia-Malaysia-Thailand Growth Triangle

Established in 1993, the Indonesia-Malaysia-Thailand Box 3 IMT-GT Five Connectivity

Growth Triangle (IMT-GT) sub-regional economic Corridors
cooperation aims to accelerate the economic
a) Extended Songkhla-Penang-Medan
transformation of the member states and provinces in Corridor (Nakhon Si Thammarat
the three countries by maximising their Phattalung Songkhla Yala Pattani
complementarities and comparative advantages. The Penang Medan);
IMT-GT Roadmap set the vision of a seamless, b) Straits of Melaka Corridor (covering the
progressive, prosperous, and peaceful sub-region with western coastal belt from Trang in
improved quality of life. The Roadmap comprises of Southern Thailand to Melaka in Peninsular
both a framework and an action plan to steer Malaysia);
economic cooperation over a five-year period. It also c) Banda Aceh-Medan-Pekanbaru-
provided five strategic thrusts, namely: (i) to facilitate Palembang Economic Corridor (a road
and promote intra- and inter-IMT-GT trade and corridor running south to north through
investment; (ii) promote the growth of agriculture, Sumatera);
d) Dumai-Melaka Economic Corridor (a
agro-industry and tourism; (iii) strengthen maritime corridor linking Sumatera and
infrastructure linkages and support to the integration Peninsular Malaysia); and
of the IMT-GT sub-region; (iv) develop human e) Ranong-Phuket-Aceh
resources and skills competencies, enhance mobility
of labour, and strengthen environment and natural resource management; and (v) strengthen
institutional arrangements and mechanisms for cooperation, including public private sector
collaboration, participation of stakeholders at the local level, and the mobilisation of support
from development partners.

Projects and activities under the Roadmap are classified under clusters, namely, (i) a policy and
regulatory anchor, which is aimed at providing a sound policy and regulatory environment to
private sector activities in the IMT-GT region; (ii) and an anchor of major IMT-GT connectivity
corridors from which development will spread out to neighboring areas through transport and
economic linkages.

Overall Assessment of IMT-GT

In the past 15 years, the IMT-GT has achieved progress in terms of maintaining the economic
exchanges and commercial ties among the participating states and provinces. Because of the
private sectors active participation and well-functioning business networks, trade and
investment have boosted in the sub-region.

The IMT-GT Roadmap has clearly outlined a long term vision, five strategic thrusts, 37 flagship
projects and more than 50 measures, programs and projects. However, there is a weak linkage
between strategic thrusts and actual projects. The strategic thrusts have not been converted into a
mass of interrelated projects that could make a considerable impact on the IMT-GT goals since it
is often argued that there are too many flagship programmes which are not well-conceived.

There are fundamental weaknesses in structures, capacities and processes of IMT-GT

cooperation reflected in its lack of capacity for program and project formulation. One obvious

Page 51 of 87
problem is the lack of comprehensive studies in other sectors of cooperation that could have
identified development gaps to serve as a basis for making programs and projects.
Comprehensive and analytical studies have only been done on the connectivity corridors,
maritime transport, logistics development, and opportunities for the transport sector. Project
proposals evaluated and approved at the working groups are largely randomly considered,
making the working groups to lack direction and control. Moreover, many recommendations
from the analytical studies on connectivity corridors have not been mainstreamed into both the
Government and Joint Business Councils (JBC) groups. There is also a weakness in secretariat
support both at the national and sub-regional levels that worsen the difficulty of effective project
identification and formulation.

Lessons from the IMT-GT Implementation

1. The preliminary step for making the Action Plan Matrix more efficient has been
conducted but the improvement of Action Plans has to be enforced more intensively.
Specifically, the APM needs to be further developed and must be well thought-out and
logically ordered with strategic projects in order to accomplish sector goals. Moreover,
clearer information on the scope and benefits of the projects is needed to assess the
projects results and impact more accurately.
2. The sector strategies that have been assumed by the Working Groups should be
maintained to guide further work on the Action Plan Matrix. Working Groups should be
given the chance to expand their appreciation and ownership of the sector strategies as a
foundation for project formulation by way of broad-based and inclusive sector forums.
These forums should produce project concepts that can lead to a more disciplined and
well-informed process for devising projects to be included in the blueprint.
3. Detailed and well-structured financial schemes and implementation plans are necessary to
guarantee effective and efficient implementation of projects. A project follow through
mechanism must take in place to allow keen monitoring of all the aspects of project
implementation inputs, through-puts and outputs and to assess issues and constraints
that hinder smooth project implementation. To facilitate project coordination and
monitoring properly, an electronic based system must be set up for updating, monitoring,
and providing access to information on the APM.
4. An inclusive, well-informed, detailed, and deliberate connectivity corridor action plan
must be in place and must include its software and hardware components. It should have
a clear time frame, realistic goals, and most importantly a detailed financial plan. The
process of formulating the corresponding action plans should involve the Government
agencies both at the national and regional level as well as the private sector groups (i.e.
SMEs, freight forwarders, banks) and future development partners.

Page 52 of 87
 5. A new business model for the IMT-GT must be adopted different from that of ASEAN.
The model should have the following features,
namely, (i) a public-private sector component in Verbatim Quotes from the Polling Center in
all phases of planning, programming and response to the question on the Main Drivers
of the MP3EI.
implementation; (ii) a distinct separation of the
program/project formulation and implementation ..The private sector. The reason bring that
functions into working entities with clear the government does not have the funds. It is
accountabilities; (iii) wide involvement of key true that the policy and decision maker is the
stakeholders (including the local governments) in government, but the investors are the private
these working entities; (iv) a project-based sector, and so the government is merely the
organization of working units rather than sector- facilitator
based; (v) a professionally-run regional Private Sector, Kalimantan Seminar
secretariat.
.. Maybe since I come from private sector I
tend to choose more neutral individuals, I will
The Implications of International Experience for the
not give it to the local government but to the
MP3EI local community leaders instead, or in the
private sector, or maybe when we talk about
Experiences of economic corridor development from the neutral academicians, it should really be
EWEC and IMT-GT offer some lessons for the MP3EI. obvious that this group is clearly impartial
The first is on the importance of model or benchmarks in and possesses a strong character..
assessing the implementation progress that have been Private Sector, Kalimantan Seminar
established in the MP3EI. Second is on the role of an
effective regulatory framework to facilitate the movement Specifically in the local areas the
of goods and people across economic growth centers and information should focus on the regional
of the capacity to implement and enforce it. Third is on government, the center of information should
be there, in this case is the Bappeda. In my
the usefulness of adequate statistical information and an
opinion there should be some kind of MP3EI
evaluation framework to assess the achievements for center at the provincial level therefore, there
every implementation phase. Impact indicators must also is no need to go to the central. Only one
be available as part of the evaluation reports and must be person is required to go to the central, which
submitted to the main implementing body of the MP3EI. should just be the Bappeda.
Fourth, detailed and well-structure financial schemes and Private Sector, Kalimantan Seminar
implementation plans are necessary to guarantee effective
and efficient implementation of initiatives. Lastly, an .. Actually it is the role of local government.
Action Plan Matrix (APM) must be in place and has to be The central government is responsible for
carried forward more intensively. The APM has to be strategic policies and the regional government
well-thought out, logically sequenced, and must include should be responsible for what is applicable in
each region..
the strategic projects to achieve sector goals.
Government Official, Kalimantan Seminar

..Civil society, entrepreneurs and the private

sector. They are the implementers, and the
local government should facilitate that..
Private Sector, Kalimantan Seminar

..I believe all have important roles, if one of

them does not play its role, this will also
influence the speed of this program..
Government Official, Kalimantan Seminar
Page 53 of 87
Roles of Stakeholders in the Implementation of the MP3EI

Data collected during the interviews shows that overall, the government was seen to play the role
of facilitator that is by creating and maintaining the rules and regulations which will shape the
progress of the policy. The private sector was seen as the engine, since the majority of the
investment needed to support the policy is expected to come from private investment. Civil
society organisations were seen to be a third party, to assure that other actors maintain their
responsibilities as well as to represent and encourage community empowerment, such as
Kalimantans many indigenous people and endangered species.

However, verbatim quotes from the Polling Center on the perceptions on main driver for the
implementation of the MP3EI show a mix of responses from stakeholders below the surface of
the overall theme. This lack of a clear knowledge of
stakeholder roles in implementation is surely a barrier to Continued Verbatim Quotes from the
a smooth process of implementation. A lack of clear cut Polling Center in response to the
roles may lead to a duplication of undertaking of tasks or question on the Main Drivers of the
MP3EI.
a delay in targets being met due to one set of stakeholders
relying on the impetus of others. ...Trust it to locals, the central is only
the coordinator, not the decision
An important point that has already risen in the barriers maker..
section on financing and private sector investment Civil Society, Kalimantan Seminar
discussed the mismatch between the perceived roles of
the private sector and government. This is especially ..Bappeda and also local KADIN. I
poignant due to the fact that long term trust and completely agree on the involvement of
collaboration is necessary in building foundations for 3 main groups of actors, first the
increased private investment in the MP3EI. Many of the government, the private sector and civil
government officials both at the regional and national society. The civil society has a lot of
initiatives in community
level saw the private sector as the main driver, whereas at empowerment
the same time many members of the private sector saw Civil Society, Kalimantan Seminar
the government as the central force for implementation.
The government cannot expect to wait for investments to it must indeed be the government
roll in before it takes the lead in ensuring targets for basic that should run the program because it
infrastructure are met, regulations are reviewed and the is within the context of the state,
investment climate is improved. including the investments, those who
regulate investments should have a
huge authority in managing this project

Civil Society, Kalimantan Seminar

Page 54 of 87
Current Structure of the KP3EI

The Committee on Economic Development Acceleration and Expansion of Indonesia 2011-2025

(abbreviated KP3EI) is an institution which was established by the President of the Republic of
Indonesia on May 20, 2011 to coordinate the implementation of MP3EI. The institute is
established under Article 4 of Presidential Decree No. 32 Year 2011. The tasks of the KP3EI
tasks are as follows:

to coordinate the planning and implementation MP3EI,

to monitor and evaluate the implementation MP3EI,
to outline the steps and policies in the context of solving problems and barriers to
implementation MP3EI.

The structure of the MP3EI implementation committee consists of an Implementation Team,

Working Team, and a dedicated and professional Secretariat with the following explanations:

1. The Implementation Team consists of: Ministers, the Chairman of Non Ministerial
Institutions, and representative agencies that shall contribute to the implementation of
MP3EI. The Implementation Team is responsible for providing general guidance,
approving strategic decisions, and solving strategic issues which may arise during the
implementation of MP3EI.

2. The Working Team shall consist of high ranking officials (echelon 1), and key officials
from relevant agencies who will be involved in the implementation of MP3EI action
plans. The Working Team is responsible for coordinating the implementation of
investment projects and infrastructure projects. This team will act in collaboration with
relevant agencies, and is also responsible for solving inter-ministerial problems and
ensuring government support for the implementation of MP3EI.

3. The Secretariat is a dedicated and full time supporting team that is responsible for
developing a monitoring and coordinating system for progress of MP3EIs
implementation. The secretariat will actively support the Implementation Team and
Working Team by providing them with a clear analysis and technical proposal to
overcome the problems arising from daily monitoring.48 An organisational chart to show
the national KP3EI structure can be found in the Annex of this paper.

The fact that the KP3EI is chaired by the President of the Republic of Indonesia and the KP3EI
Secretariat is chaired by the Coordinating Minister for Economic Affairs of the Republic of
Indonesia shows that the national government has shown leadership and responsibility for the
implementation of the MP3EI.

48
Yahoo Group on the KP3EI

Page 55 of 87
The limitation of the current system is that the majority of stakeholders involved both and the
national and regional level are mainly government officials. For instance, the member list for the
Bali- Nusa Tenggara MP3EI Working Group below shows that out of the 17 members, 9 are
from government institutions, and the rest are prominent stakeholders in the private sector. As
such, there is a lack on inputs from civil society at large.

Members of the Bali- Nusa Tenggara MP3EI Working Group

1. Deputy for Coordination of Macroeconomics and Finance, Coordinating Ministry for

Economic Affairs
2. Deputy Head of Development Performance Evaluation, National Development Planning
Agency
3. Director General of Tourism Destination Development, Ministry of Culture and Tourism
4. Director General of Animal Husbandry and Animal Health, Ministry of Agriculture
5. Director General of Fisheries, Ministry of Maritime Affairs and Fisheries
6. Director General of Foreign Trade, Ministry of Commerce
7. Director General of Water Resources, Ministry of Public Works
8. Expert Staff and Institutional Law, Coordinating Ministry for Economic Affairs
9. Christianto Wibisono, one of Indonesias leading economists and commentators- founding
director of Global Nexus Institute, a think-tank advising government on geopolitical and
economic issues.
10. Juan Permata Adoe, Deputy Chairman for Fisheries and Farming, KADIN, Jakarta
11. Johnny Darmawan, President Director of PT Toyota Astra Motor (TAM) and Chairman of
the Association of Indonesian Automotive Industries (Gaikindo)
12. Gede Suwardana Linggih
13. Barry Djadid, Head of KADIN, Lombok
14. Paul Lyanto, Council Member of the Provincial Government of Nusa Tenggara Timur.
15. Saharudin Didu
16. Meidya Amoraldham
17. Ahmad Bakri Putra49

The above information on the KP3EI regional working groups is not easily available to the
public. One recommendation would be to increase transparency on information such as this so
that any interested stakeholders can easily access up to date information. During a Polling Center
interview, one stakeholder from the national government suggested the formation of a regional
KP3EI Working Group as part of the implementation process, thereby implying that they were
unaware of the already existing Working Groups in each Corridor. Furthermore, it is advised that
these Working Groups also open up to larger breadth of stakeholders as in line with the Not
Business As Usual mind-set which the MP3EI seeks to create by increasing collaboration and
inputs from a variety of stakeholders.

49
KP3EI Yahoo Groups

Page 56 of 87
Level of Preparedness

Since socialisation and awareness of the roles of stakeholders in implementing is limited, it

follows that stakeholders are likely to be underprepared in playing an active role in
implementation.
Verbatim Quotes from the
There seems to be a mismatch of communication between the Polling Center in response to the
question on the perceived level
national and regional governments. Awareness of the MP3EI
of stakeholder preparedness to
was found to be much higher at the national level, and thus implement the MP3EI.
government officials on average felt that they were prepared
to implement the policy. based upon what I have seen
so far, with the onset of intensive
In the government category, all respondents in Polling Center meetings with corridor work
interviews felt ready to implement the MP3EI but groups, everyone acknowledges
respondents at the regional level stated that they felt the intentions of MP3EI are
inadequately prepared. A good level of preparedness was already good
indicated by the commencement of intensive meetings with Government Official, Jakarta
work groups. Despite this, there were also some respondents
For the government, I have to
that stated that the government, at both the central and
say it is low. And Indonesias
regional levels, was unprepared and the same held true for business is not ready to compete
the private sector. with the outside world
Private Sector, Jakarta
Looking at the experience of the Indonesia- Malaysia-
Thailand Growth Triangle shows that time was easily spent ..actually, both the central and
on studies and implementation plans for connectivity regional governments are
corridors, maritime transport, logistics development and wholly unprepared and this
opportunities for the transport sector, but what was extends to their affiliates...
significantly lacking was a similar dedicated plan to a study Civil society, Jakarta
on working practices for the implementation.

To formulate an implementation institution with focus only on implementing the set

development activities under the MP3EI is only half the story. At the same, the KP3EI
Secretariat the Working Groups at all levels should be well considered in its membership, and
good management working practices should be laid at the start and be adhered to.

Sequencing

Barriers to implementing the MP3EI at the national level compared to the Kalimantan and Bali-
Nusa Tenggara Corridors have shown to be different from one another. As such,
recommendations for the two regional corridors are different from each other as well as different
from the general recommendations for the national level.

This indicates that each Corridor will be unique in its implementation. Indeed, the MP3EI states
that each corridor will be unique in that each has its own theme based on the comparative

Page 57 of 87
advantage of that region. Furthermore, implementation relies on a number of factors such as
levels of infrastructure, human resources, institutional capacity, amongst others which all vary
from region to region. As such, it is likely that the implementation experiences from one
Corridor cannot be copied to another. This suggests then, that the idea of using a pilot corridor
should not be undertaken, but instead all six corridors be implemented simultaneously.
Implementing the first phase of the MP3EI should occur at the same time as increased research
and planning to develop human resources, invest in science and technology, developing basic
infrastructure as well as a regulatory and institutional reform.

Similar to the East- West Economic Corridor of the Greater Mekong Delta Sub- Region, the
MP3EI has dedicated the first phase of the implementation process from 2011 to 2015 as solely
in investing infrastructure. The purpose behind this is to increase the inter-corridor connectivity
and set basic foundations for the second phase.

The EW Economic Corridor found relative success in the infrastructure phase, and significant
increased trade and investment flows were increased as a result. However, difficulty was found
in the move from an infrastructure corridor to an economic corridor.

For the second phase of the MP3EI, attention needs to move further down to the regional level.
After infrastructure corridors are established, the regional government should have a better
awareness and ability to fulfil its roles. Increased responsibility at the regional level for
implementing MP3EI would serve as a faster method of implementation rather than at the
national level and each Corridor would be able to adapt to its local situation easily. The MP3EI
should not be bound to a one size fits all policy, but the regions should have the capacity to
implement the policy according to the different needs and abilities of each corridor.

Implementation Requirements for the National Corridor

The MP3EI needs to contain a number of essential components, the most important being:

A stable macroeconomic framework which would deliver low interest rates, low inflation
and incentives for higher savings and investment
A programme of infrastructural development which would improve the investment
climate and produce feasible incentives for private investment in the twenty two main
economic activities
An industrial policy designed to promote investment in key industries, using a PPP model
where appropriate
Developing Indonesias human resources and technological adaptation so as to allow
moving towards new frontier technologies as the composition of FDI changes and new
products are introduced into the existing supply chains.
An architecture of economic growth and social stability augmenting institutions: legal
and regulatory, planning and budgeting, financial and banking, monitoring and quality
control institutions in important sectors such as education and transport, for example.

Page 58 of 87
Macroeconomic stability, infrastructure development, rising public and private investment,
reform of the institutional architecture and human capital development are all essential
components in the economic strategy of the MP3EI. As such, parameters for economic
diversification need to be identified simultaneously rather than sequentially.

Recommendations for the Implementation of the MP3EI at the National Level

Socialisation needs to be improved, since government officials at the national level

overall had a much better understanding on the meaning, opportunities and requirements
for implementing the MP3EI as compared to the private sector and civil society.

A clear set of expectations from different groups of stakeholders needs to be established,

as now there is cross over in expectations of different stakeholders- particularly between
the private sector and government officials. Increased available information for the
private sector as well as inclusive socialisation is the first steps to establish a long term
working relationship between the private sector and government to implement the
MP3EI.

A regulatory review to ensure that the MP3EI can be supported by laws and regulations
which are streamlined through the regional and national level.

MP3EI Working Units need to be established which coordinate regularly with the
national level. These groups should involve a breadth of stakeholders and their targets
and quarterly progress should be made available as public information.

Improving basic infrastructure should be seen as a national government priority in order

to attract private investment in commercial infrastructure.

An Action Plan needs to be developed looking at the short and long term needs of
developing human resources in each of the six corridors. At the moment, it is not clear in
the MP3EI where funding is to be sourced to establish training centres and other
resources develop Indonesias man power. The MP3EI document lays out a breakdown
for the infrastructure budget, but there is a lack of a breakdown of a budget for human
resource development.

An Action Plan needs to be established on the strategies when moving from an

infrastructure to an economic corridor learning from the international experience.

The national PPP framework needs to be reviewed, projects need to synergised between
the national and regional level, with only feasible projects which are ready to commence
advertised. The President also needs to take the lead at the national figurehead for the
development of PPPs in Indonesia.

Page 59 of 87
 A review of the financing budgeted for the eastern parts of Indonesia needs to be carried
out as eliminating regional disparities are a priority for the MP3EI but yet there is a lack
of financing in eastern Indonesia which acts as a barrier to growth and also private
investment.

Different requirements are needed throughout the Six Corridors of the MP3EI and this
each corridor must be implemented simultaneously and lessons on implementation must
be continuously shared between the Six Corridors.

Implementation Recommendations in the Kalimantan Corridor

There is a need to better socialise the policy. Most of the regional government were
aware of the MP3EI, but there is better knowledge at the national level. It is important to
involve the private sector if investment is required from them. Civil society also needs to
be involved in order to understand and support the development.

Stakeholders who were consulted about the implementation of the Kalimantan Corridor
were wearier than their Bali- Nusa Tenggara counterparts about the fundamental
economic activities proposed in the MP3EI. Many were concerned that the MP3EI in its
current state does not take into account environmental damage caused by the policies and
is not in line with the Presidents target to reduce carbon emissions by 26% by 2025. As
such, further research needs to be developed on how to align environmental sustainability
with economic development in this Corridor.

Investment in infrastructure is needed in Kalimantan and the MP3EI hopes to better

connect Kalimantans four provinces. It is important that connectivity unites Kalimantan
as one Corridor as at the moment there is a significant lack of a connection and sharing of
information between the four provinces.

Kalimantans Indigenous peoples rights must be taken into account especially regarding
land rights.

The MP3EI establishes that specific human resource skills are needed for the
establishment of the Kalimantan Corridor- especially with regards to the fact that the
Corridor is centred on promoting both specialist and management training is needed for
the oil and gas, coal, palm oil and bauxite sectors including specialists in deep-sea
exploration, moving towards clean coal technologies and aluminium design, for example.
The MP3EI, however, does not specifically lay out requirements and plans to
development human resources for the timber and steel sectors. It is not clear where such
training centres will be, who will administer them.

Page 60 of 87
 A regional MP3EI institution must be set up in the Corridor in order for stakeholders to
meet, and to act as a hub for accessing information for potential investors and civil
society.

Implementation Recommendations for the Bali- Nusa Tenggara Corridor

There was a positive reaction from stakeholders of the furthering the tourism, animal
husbandry and fisheries sectors in the Corridor. However, socialisation in this Corridor is
lacking, so the first step would be to build upon this perceived goodwill from
stakeholders.

As the Bali- Nusa Tenggara Corridor brings together a set of islands rather than one land
mass, as in the Kalimantan Corridor, implementing the first stages of connectivity and
infrastructure is a large task.

In this Corridor, stakeholders throughout this project have debated over whether tourism
should be seen as the dominant sector in this Corridor and that one should be careful of
viewing tourism as a renewable resource. Mr. Bagus Sudibyo from the Bali Tourism
Board at the Lombok Seminar told the story of Balis tourism industry. As a result of the
global recession and of the Bali bombings in 2002 and 2005, tourism in Bali dropped
dramatically, showing how relying on one dominant sector can be very harmful. One
main barrier mentioned in developing the tourism sector in this Corridor was the tension
between groups who have seen the growth of tourism, especially in Bali, as sinful and
detrimental to the values and customs of the local community. Promoting tourism further
in Bali as well as in Nusa Tenggara Timur means that local communities must be
involved in order to avoid a clash.

There are disincentives to investing in the fishery and animal husbandry sectors, such as
overlapping regulations, lack of fiscal incentives such as tax breaks, and poor
infrastructure. These should be a priority in order to attract the private sector. Basic
infrastructure needs to be prioritised by the regional government before private sector
investment should be expected.

There is a need to better engage the private sector from the outset of policy making to
ensure the long term relationships which are needed since such large amounts of
investment are required from the private sector in order to implement the MP3EI. The
private sector needs to be able to access up to date investment data and available
investment opportunities. PPP projects also need to be uniform throughout all levels of
government.

An MP3EI institution needs to be established in the Corridor with easy access for
stakeholders to meet and access up to date information on the implementation of the
MP3EI.

Page 61 of 87
 Conclusions

The vast majority of people consulted as part of this project had belief
that the MP3EI can be sucessful.
Moreover, stakeholders from all categories wanted to be kept aware of
1. Build on Goodwill the progress of this policy, indicating that stakeholders were not
positive but want to play an active role in the implementation.
However, a large number of stakeholders were aware of the many
implementation barriers to this policy.

The positive reaction from stakeholders was limited by the fact that
awareness amongst stakeholders, especially in the regions, is low.
Stakeholders agreed that regular bulletins were the best way to keep
them informed.
Participants at the Kalimantan Semianar also wished for an MP3EI
2. Build on Awareness Corrdination Office in each region. These institutions could mean easy
access to updates on laws and regulations and investment opportunties
for the private sector, as well as provinding information for the local
comminuty. Such offices could also house regular meetings with
stakeholders so as to achieve the 'Not Business as Usual' collaboration
from stakeholders.

There is no one central source of information on the implementaiton of

the MP3EI, and as such stakeholders can find it confusing to find
information. This also acts as a disincentive to invest in the MP3EI.
An MP3EI website needs to be created so that people can follow the
implementation of the policy. The private sector would also be able to
access information on rules and regulations on investing in particular
economic activities per corridor.
3. Virtual Sectretary An MP3EI website as a souce of information should be managed by
the KP3EI secretariat the the national level. The KP3EI Working
Groups at the regional levels should send quartely implementation
reports to the MP3EI Secretariat which includes targets met, targets for
the next quarter and lessons learnt. Such information should be made
public via the MP3EI website so all stakeholders can access
information. This is also key in the sharing of data between Corridors.

This paper has shown that the current KP3EI model for the
implementation of the MP3EI mainly involves government officials
and the private sector. It has been voiced by many stakeholders that
members of civil society organisaitons must too be included in the
3. Involve decisions in implementation. Feedback from internal meetings of the
KP3EI must also be socialised so that larger number of stakeholders are
Stakeholders informed and invovled. Essentially, the MP3EI policy is for the benefit
of the entire population of Indonesia, and as such members of the
public , universities, NGOs etc. should be considered relevant
stakeholders.

All existing regulatory frameworks must be evaluated to attract

investors. The national government must carefully monitor regulation
and bureaucracy so that all programmes and projects in the MP3EI will
run smoothly. The government should also ensure that obstacles to
land acquisition must be removed and that tax rules are no longer
burdensome to investors.
4. Regulatory Reform The lack of clarity in terms of explaining when or how national
competition needs to be maintained or the limitations of understanding
the strategic value of a particular business may cause various
interpretations of this stipulation or provision. Since multiple
Page 62 of 87
interpretations of this provision may lead to uncertainty and ambiguity,
the Indonesian government should clarify these provisions to
effectively implement the goals of the Tax Holiday Regulation.
 Stonger political will is needed behind the MP3EI in order to ensure its
success. The President needs to be the voice of the MP3EI both
domestically and internationally.
6. Institutional Work in battling against corruption needs to be maintained.
Reform The connection between Corridors needs to be improved and annual
working groups need to take place at the national level with the
attendance of all KP3EI Working Groups so that lessons learnt can be
shared. Such increased cohesion should increase transpareny and
improve the breadth of involved stakeholders.

BKPM at the national level need to host international workshops on

7. Actively Encourage investing in Indonesia.
PPPs need to be synergised between the regional and national level,
Private Investment and only projects which are fully feasbile should be proposed.
The Indonesian President needs to be the act as the main figurehead for
the MP3EI and for all investment required for its implementation.

This report has shown that the Kalimantan and Bali- Nusa Tenggara
Corridors have different implementation requirements. Each Corridor
is inherently unique and thus the use of a pilot corridor may prove
ineffective.
8. Sequencing The implementation of all six economic corridors should occur
simultaneously.
Preparation for regulatory and institutional reform, developing
infrastructure, improving science and technology as well as human
resources should all be developed at the same time.

Basic infrastructure needs to be developed as a priority at the regional

level. To work on reducing regional disparities special attention must
be given to islands in eastern Indonesia. Reviewing the budget
9. Infrastructure allocated towards areas with underdevloped infrastrucutre needs to
occur as it is unlikely private sector investment will be attracted to
regions with lower levels of basic infrastructure.

Mapping out the manpower planning needs for Indonesia will be a

tremendous challenging exercise as it requires detailed research in all
sectors of economic expansion, strong time series data, and substantial
methodological capacity. In addition, projections of labour and
education requirements based from project outputs are subject to
various possibilities in production methods and labour market demand.
10. Human Resources This is going to be a complicated process that cannot be done alone by
Ministry of National Education (MONE) as it requires the cooperation
of other entities such as Bappenas and the Minstry of Finance to
develop more accurate forecasts. Moreover, specific forecasts for the
conditions of each one of the provinces of economic corridors are also
needed.

Changes in government structure and planning with regards to its

11. Envrionmental approach to implementing envrionmental sustainable practices into the
MP3EI. At the moment, many stakeholders are concerned that the
Sustainability MP3EI is not aligned at all with plans to reduce carbon emissions. Low
carbon investments need to occur and PPPs in this regard should be
encouraged with incentives from the national government.

Page 63 of 87
 REFERENCES

Primary Sources

1. Four reports submitted by The Polling Center. Copies of these can be found in the Annex.
2. Data collected at the four seminars conducted in this project.

Secondary Sources

Asia-Pacific Economic Cooperation. 2011. Indonesias Structural Reform Priorities. Retrieved

from http://aimp.apec.org/Documents/2011/SOM/WKSP/11_som_wksp_009.pdf

Asian Development Bank. 2007. Midterm Review of the Greater Mekong Sub-region Strategic
Framework (2002-2012). Retrieved from http://www.adb.org/documents/midterm-
review-greater-mekong-subregion-strategic-framework-2002-2012

Asian Development Bank. 2010. Mid-term Review of the Indonesia-Malaysia-Thailand Growth

Triangle (IMT-GT) Roadmap for Development: 2007-2011. Retrieved from
http://www.adb.org/publications/mid-term-review-imt-gt-roadmap-development-2007-
2011

Asian Development Bank. 2010. Strategy and Action Plan for the Greater Mekong Sub-region
East-West Economic Corridor. Retrieved from http://www.adb.org/publications/strategy-
and-action-plan-greater-mekong-subregion-east-west-economic-corridor

Asia-Pacific Economic Cooperation. Indonesias Structural Reform Priorities. Residential

Training Workshop on Structural Reform Singapore August 10-12, 2011. Retrieved from
http://aimp.apec.org/Documents/2011/SOM/WKSP/11_som_wksp_009.pdf

Badkar, Mamta. Indonesia Just Got Its Investment-Grade Credit Rating Back. Business Insider,
January 19, 2012. Retrieved from http://articles.businessinsider.com/2012-01-
19/markets/30642206_1_indonesia-shocks-policy#ixzz1qo4tK8vS

Banomyong, Ruth. 2010. Benchmarking Economic Corridors Logistics Performance: A GMS

Border Crossing Observation. World Customs Journal Volume 4, Number 1. Retrieved
from http://www.worldcustomsjournal.org/media/wcj/-2010/1/Banomyong.pdf

BAPPENAS. 2011. Sustaining Partnership: Media for Information on Public Private

Partnership.National Connectivity 2011 Special Edition. Retrieved from
http://pkps.bappenas.go.id/attachments/article/957/DESEMBER%20Khusus_KONEKTI
FITAS_ENGLISH_L.pdf

Dewi, Andini H. 2011. 2011 Indonesian Law Review: Tax Holiday. Indonesian Legal

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 Consultants (SSEK). Retrieved from http://blog.ssek.com/index.php/2011/12/2011-
indonesian-law-review-tax-holiday/

Edward Lee Wee Kok, Eric Sugandi, Fauzi Ichsan, Jennifer Kusuma, Tai Hu. 2011. Indonesia in
the Super-Cycle. Standard Chartered Bank. Retrieved from
http://hictrade.com/Indonesia.pdf?AspxAutoDetectCookieSupport=1

Heart of Borneo: The Economics of Ecosystems and Biodiversity. December 2011. Retrieved
from http://www.naturalcapitalproject.org/pubs/HCP1018%20-
%20Natural%20Capital%20website%20v0%202_Example%20findings_FINAL.pdf

KOMPAS. Daily Infrastructure News on AUSAID Indonesia Infrastructure Initiative. KOMPAS,

June 9, 2011. Retrieved from http://indii.co.id/news_daily_detail.php?id=645

Lipsey, Robert & Fredrik Sjoholm. 2011. Foreign Direct Investment and Growth in East Asia:
Lessons for Indonesia. Retrieved from
http://www.tandfonline.com/doi/abs/10.1080/00074918.2011.556055

Mastel, (Indonesian ICT Society) Toward National Connectivity- Challenge and Opportunity),
Dr. Setyanto P. Santosa, Chairman of Mastel, Jakarta 21 September 2011 Presentation.

Nuky, Esther. Without Extraordinary Budget, MP3EI Only a Dream: Infrastructure Bonds to be
Issued Soon. Investor Daily, November 28,2011. Retrieved from
http://emu.co.id/news_daily_detail.php?id=2412

Republic of Indonesia. 2011. Masterplan Acceleration and Expansion of Indonesia

Economic Development 2011-2025. Retrieved from
http://www.itpchamburg.de/pdf/Home/ECONOMIC%20CORRIDOR.pdf

Supriadi, Oleh Agust. Government to Launch Global Bonds in February 2012. Bisnis Indonesia,
December 19, 2011. Retrieved from http://en.bisnis.com/articles/govt-to-launch-global-
bonds-in-february-2012

Tampubolon, Hans David. 2012. Enactment of Land Acquisition Law Delayed Again. The
Jakarta Post, March 14, 2012. Retrieved from
http://www.thejakartapost.com/news/2012/03/14/enactment-land-acquisition-law-
delayed-again.html

The Jakarta Globe. As MP3EI Blossoms, Resolve Is Needed. The Jakarta Globe. March

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 13,2012. Retrieved from http://www.thejakartaglobe.com/editorials/editorial-as-mp3ei-
blossoms-resolve-is-needed/504313

The Jakarta Post. China Agrees to Support Indonesias Economic Master Plan. The Jakarta Post,
June 23, 2011. Retrieved from http://www.thejakartapost.com/news/2011/06/23/china-
agrees-support-indonesias-economic-master-plan.html

The Jakarta Post. Im Not Optimistic with the MP3EI: Economist. The Jakarta Post, July 25,
2011. Retrieved from http://www.thejakartapost.com/news/2011/07/25/i%E2%80%99m-
not-optimistic-with-mp3ei-economist.html

The Jakarta Post. Nusa Tenggara Provinces Need More Investment. The Jakarta Post, October
26, 2011. Retrieved from http://www.thejakartapost.com/news/2011/10/26/nusa-
tenggara-provinces-need-more-investment.html

United Nations Environment Programme. 2007. Sustainable Development Strategy for Greater
Mekong Sub-region. Retrieved from
http://www.rrcap.unep.org/nsds/uploadedfiles/file/gms/reference/SSDS%20GMS.pdf

Wibosono, B Kunto. PLN Targets Serving 90 pct of Households by Late 2014. Antara News,
February 7, 2012. Retrieved from http://www.antaranews.com/en/news/79705/pln-
targets-serving-90-pct-of-households-by-late-2014

World Bank. 2007. Memerangi korupsi di Indonesia yang terdesentralisasi : studi kasus
penanganan korupsi pemerintah daera. Retrieved from
http://catalogue.nla.gov.au/Record/4733687

World Economic Forum. 2011. The Global Competitiveness Report 2011-2012. Retrieved from
http://reports.weforum.org/global-competitiveness-2011-2012/

Yulisman, Linda. Asian Development Bank Calls RIs New Economic Plan Realistic. The
Jakarta Post, June 16, 2011. Retrieved from
http://www.thejakartapost.com/news/2011/06/14/asian-development-bank-calls-
ri%E2%80%99s-new-economic-plan-realistic.html

Page 66 of 87
 ANNEXES

Annex A. The Polling Centers Interviewees

During the Kalimantan Seminar:

Government Civil Society Private Sector

West 1 Walhi, 1 Kideco Jaya Agung 1
Kalimantan Samarinda
Provincial Govt.
West 3 WWF, Jakarta 1 Pertamina 1
Kalimantan
BPPMD
Samarinda 1 BOSF/RHOI 1 Feedback Infra 1
BPPMD
Samarinda 1 Bina Swadaya 1 South Kalimantan 1
Bappeda Kadin
Palangkaraya 1 East Kalimantan 1
University Apindo
Mulawarman 1 East Kalimantan 1
University Post
Sub total 6 Sub total 6 Sub total 6
Total : 18 respondents

Page 67 of 87
During the Lombok Seminar:

Government Civil Society Private Sector

Bappeda Bali 1 WFP 1 Kadin Denpasar 1

Bappeda NTB 1 WWF Jakarta 1 HSBC 1

Bappeda West 1 APKLI 1 ASITA 1

Lombok
Bappeda Mataram 1 Economic expert 1 Charoen Pokphand 1
City
BPMD NTB 1 Mataram 1 Bali tourism board 1
University
Bali Cultural 1 Gappindo 1
Office
Office of 1
Transportation
NTB
Food Security 1
Agency NTB
Office of Fishery 1
and Marine Affairs
NTB
Sub total 9 Sub total 5 Sub total 6
Total : 20 respondents

Page 68 of 87
During the Climate Change Mitigation Seminar and Ad Hoc Appointments in Jakarta

Government Civil Society Private Sector

Governor of DKI 1
Aceh Green 1 PWC 1
Jakarta
Dept. of the 1
WWF Jakarta 1 British Embassy 1
Environment
Dept. of Forestry 1 IPB 1 KADIN 1
House of 1
Bakrie University 1 Pertamina 1
Representatives
National 1
Development Trisakti
1 Bakrie Corp 1
Planning Agency - University
Bappenas
Capital Investment 1
Coordinating GIZ 1
Board - BKPM
National Institute 1
of Aeronautics and Walhi 1
Space - LAPAN
Habibie center 1
Kompas 1
Infid 1
Univ. Mercu
1
buana
Sub total 7 Sub total 11 Sub total 5
Total : 23 respondents
Note: Verbatim quotes from these stakeholders coming from interviews with The Polling Center
can be found throughout this paper separated in text boxes.

Page 69 of 87
Annex B: List of Pending Laws, Government Regulations, Presidential Regulations,
Presidential Decrees, Presidential Instructions and Ministerial Regulations

Page 70 of 87
Source: MP3EI

Page 71 of 87
Source: MP3EI

Page 72 of 87
Annex C: KP3EI Structure at the National Level

Division of
International
Cooperation

Working Group for Working Group

the Kalimantan for the Sulawesi
Corridor Corridor

Page 73 of 87
Annex D: KP3EI Structure for the Kalimantan Corridor

President Susilo Bambang

Yudhoyono

Hatta Rajasa, Coordinating

Minister for Economic Affairs,
KP3EI Secretariat

Mr.Ir. Luky Eko Wuryanto MSc.

PhD, Deputy Minister of
Infrastructure and Regional
Development, Coordinating
Ministry for the Economy, and
Head MP3EI Secretariat

Dr. Ir. H. Suswono, MMA, Minister

of Agriculture, Head of the
Kalimantan MP3EI Working Group

Governors of West, East, South Head of BAPPEDA Offices in West,

and Central Kalimantan East, South and Central Kalimantan

Heads of KADIN Offices in West, East,

South and Central Kalimantan

Prof. Dr. Hermanto Siregar, Vice

Dr. Thamrin Sihite, Director General
of Mineral and Coal, Ministry of
Energy and Mineral Resources,
Chairman of the Sub Team on
Regulation
Rector of Bogor Agricultural
Sub Team on Connectivity University, Chairman of the Sub Team
on Human Resources and Science &
Technology

Page 74 of 87
Annex E. KP3EI Structure for the Bali-Nusa Tenggara Corridor

President Susilo Bambang

Yudhoyono

Hatta Rajasa, Coordinating

Minister for Economic Affairs,
KP3EI Secretariat

Mr.Ir. Luky Eko Wuryanto MSc.

PhD, Deputy Minister of
Infrastructure and Regional
Development, Coordinating
Ministry for the Economy, and
Head MP3EI Secretariat

Mari Elka Pangestu, Minister of

Tourism and Creative Economy,
Head Bali- Nusa Tenggara Corridor
MP3EI Working Group

Governors of West, East, South Head of BAPPEDA Offices in West,

and Central Kalimantan East, South and Central Kalimantan

Heads of KADIN Offices in West, East,

South and Central Kalimantan

Prof. Dr. Hermanto Siregar, Vice

Dr. Thamrin Sihite, Director General
of Mineral and Coal, Ministry of
Energy and Mineral Resources,
Chairman of the Sub Team on
Regulation
Rector of Bogor Agricultural
Sub Team on Connectivity University, Chairman of the Sub Team
on Human Resources and Science &
Technology

Page 75 of 87
Appendix F: Attendance List of Four Seminars

Seminar One- Implementing the Kalimantan Corridor

Tuesday 6th October 2011
Balikpapan, Kalimantan
Attendance List

Number Name Organisation

1 Jamartin Sihite BOSF/RHOI
2 Edwin Shabby Pertamina
3 Reza Pahlefi Pertamina
4 Yuli Lestari Tropenbos
5 Shailesh Joshi Feedback Infra, Jakarta
6 Ujang Rachmad Bappeda, East Kalimantan
7 Duma M. Bappeda, East Kalimantan
8 Siti Khoirun Niumah INFID, Jakarta
9 Vicky R. Waan KPSI
10 Darmae Nasir University of Palankaraya
11 Rika Gresia Pertamina
12 Eddy Suratman Univeristy of Tanjungpura
13 D. Yuli BPMD Kalimantan Barat
14 Ida Karimi Provincial Government of Kalimantan Barat
15 Syamsuwir BPMD Kalimantan Barat
16 Mauases University of Balikpapan
17 Sanusi Saudesi BPPMD, Kalimantan Timur
18 Dachriadi BPPMD, Kalimantan Timur
19 M. Slamei SS DPP Apindo Kalimantan Timur
20 Saridi Salimim KADIN Kalimantan Selatan
21 Yusmilan Ak. KADIN Kalimantan Selatan
22 M. Yadi Sabainoor BPPMD, Kalimantan Timur
23 Heryanto University of Mulawarman
24 Tatanos Kaltim Post
25 Agus Subagyo Kideco Jaya Agung
26 Arie Rompas Walhi, Central Kalimantan
27 Bambang Awaman Bima Swadaya
28 Eddy Yurat Bappeda, East Kalimantan
29 Dodhy Achadiyat APINDO
30 Wikondar Bappeda, East Kalimantan
31 Rezal Jurad Kaltim Post
32 Elsa R. Pasaribu Balikpapan TV
33 Wisnu Rusmantoro WWF, Jakarta

Page 76 of 87
34 Elisabeth Wetik WWF, Jakarta
35 Dinda WWF, East Kalimantan
36 Wiwian Effendy WWF, East Kalimantan
37 Arif Data Kusana WWF, East Kalimantan
38 Denise Medina Polling Center
39 Relawati Polling Center
40 Restu Nurully Polling Center
41 Fauziah S Polling Center
42 Maxine Carr Strategic Asia
43 Eny Marliana Strategic Asia
44 Prabowo Strategic Asia
45 Keith Hargreaves Strategic Asia

Seminar Two- Implementing the Bali- Nusa Tenggara Corridor

Tuesday 09th December
Lombok, Nusa Tenggara Barat
Attendance List

Number Name Organisation

1 Bapak Bapak Haj Muhammed Noor Provincial Secretary NTB
SHMH
2 Ray Tumundo PT. Charoen Pochpand
3 Imam Budiman Mataram News
4 Imam Waliyudi Hotel Vila Ombai
5 AA Gede Sumadi Putra Strategic Asia
6 Maxine Carr Strategic Asia
7 Henry BS Bappeda NTB
8 Andy Widando Bappeda NTB
9 Rastiti Bappeda Bali
10 I.B. Budi Utama Bappeda Bali
11 Hadi Irfam Zahiq BPM NTB
12 M. Anwar BPM NTB
13 Paul Edmundis Talo APD Astik, Bali
14 Rositam Taulih PT. Lombok Saba
15 B. Sri Kumi Alaris BPM NTB
16 Hj BQ Hosri Z BPM NTB
17 I. NGH. Gusia Dinas Budpar NTB
18 Husnussabri Dinas Perkeaunan NTB
19 Keith Hargreaves Strategic Asia
20 L. Michael Riwu Kaho Undana- Kupang
21 Ali Syanya Kelauta NTB

Page 77 of 87
22 Erni Margioaro BEDO
23 Rara Rizal Interpreter
24 M. Irwan Prasetya LSM/Pengamat Eko
25 Ridwansyah Disbub NTB
26 Sang A Subaya DPD HPI, Bali
27 Rajeev Babel HSBC, Jakarta
28 AA Gede Geriya Disbud Bali
29 Erni Kuranaiti Diskop Sumkm, NTB
30 Daihi Pariyami Diskop Sumkm, NTB
31 Devi HSBC, Jakarta
32 Ramayoga Bappeda Mataram
33 Tony Rahardjo WFP
34 L. Sukariao BKP NTB
35 Rosiady Head, Bappeda NTB
36 Armin Alamsyah Dinas PKH
37 Eko B Suadu Dinas PKH
38 Bambang Sabolu Dinas PKH
39 Arnantyo COKA
40 Ikerit Nukymsa DPD. Putri, Bali
41 Bagus Sudibya Bali Tourism Board
42 Sukismars Lombok Post
43 R. Razavi British Embassy
44 Koeswidiab BPMD Mataram
45 Nara Melissa British Embassy
46 Denise Medina Polling Center
47 Fauziah S Polling Center
48 Dewanto Bappeda Lombok Timur
49 Abdul Haris Biko AP NTB
50 B. Wilyatis Biro Ekonomi
51 K. Wolini DPP. Apindo NTB
52 Haryadi Bappeda Lotim
53 Bayan BKPMD, Lombok
54 Ahmad Zaini UNRAM
55 I B Sudewa KADIN Bali
56 Ketut Kanuam KADIN Bali
57 Imam MZ WWF, Jakarta
58 H. Dadif BKPMD, Lombok
59 Lilly PC
60 Aries PC
61 M. Nur Sekda NTB

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62 Ahmad Yani Radar Lombok
63 WM. Ardhi Provincial Government of NTB
64 Agung Polda
65 Husnuaindeaty BKP
66 Yasid Jayaldi PT. Bulan Malv
67 Syarif H Bappeda Lombok Barat
68 Rohida Ganis M Biro Adm Pembangumam Setda Provinso NTB
69 Ririn Novilina Biro Adm Pembangumam Setda Provinso NTB
70 Prayitno Basuki UNRAM
71 Bambang Istiyanto Dishub Kominfo
72 Sukarsa Dimas Perstia NTB
73 Khaeriel Auntar Kompas
74 Indah Irviani Strategic Asia
75 Maxine Carr Strategic Asia
76 Satish Mishra Strategic Asia

Seminar Three- Climate Change Mitigation and the MP3EI

Wednesday 8th and Thursday 9th February 2012
Jakarta
Attendance List

Number Name Organisation

1 Zaky prabowo UKP4
2 Kamarudin BAPPEDA-NTB
3 Husaini Syamaun BAPEDAL Aceh
4 Samsuar Bappeda Aceh
5 Dharma Putra Bappeda Bali
6 I. B Wayan Bappeda Bali
7 Syaiful Firdaus BAPPEDA PAPUA
8 M. Chamidin DDPI Kaltim
9 Faisal Bappeda Sulsel
10 Endah Murniningtyas Bappenas
11 A.A Bagus Sudharsana BLH Kota Denpasar
12 Rebecca Razavi British Embassy
13 Daniel Mudiarso CIFOR
14 Dodik R Nurrochmat IPB
15 Sulistyowati Ministry of Environment
16 Deddy Hadriaynto Mulawarman University
17 Kirsfianti L Ginoga Puspijak. Litbang
18 Rob Daniel PWC
19 Heru Prasetyo UKP4

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20 Nyoman Iswarayoga WWF Indonesia
21 Benja Victor Mambai WWF PAPUA
22 Suhaimi Hamid Aceh Green Community
23 Rusnadi padjung KPDT
24 Agus Gunawan Ministry of Environment
25 Sudirga Bappeda Bali
26 Irfan D Yunanto Bappenas
27 Umiyatun Hayati( a/N Ulfi) BAPPENAS
28 Sanusi Saudek BPPMD Kaltim
29 Neale Jagoe British Embassy
30 Nara Melissa British Embassy
31 Farah Sofa British Embassy
32 Syamsuddin DDPI KALTIM
33 Idham Moe Dit. BPSDA, PU
34 Pandu yuri P Dit. BPSDA-KEMEN, PU
35 Winarni FALTL Trisakti University
36 Siti B. wardhani FCO
37 Amelia Saragi FCO
38 Maren Breuer GIZ
39 Taslim Arifin Hasanudin University
40 Resa Raditio ICEL
41 Luluk Sumiarso IICE
42 Nikmah Infid
43 Rara Interpreter
44 Barry Djadid KADIN NTB
45 Ikhsan KAMMI
46 Erna Sri Adinigsih LAPAN
47 Nuning Elmayani Ministry of Forestry
48 Phillipp Munzinger PARLIM GIZ
49 Boni Saji Pink HKBP
50 Lucya nazarina Polling Center
51 Nefo Djnuarita Polling Center
52 Relawati Polling Center
53 Denise Medina Polling Center
54 Eliyani Psat Perubahan Iklim UMB
55 Catur Hernanto PT FTG
56 Yoga PT FTG
57 Diesty Eka PT. ASPHALT BANGUN SARA
58 Sukria PUI
59 Keith Hargraves Strategic Asia

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 60 Maxine Carr Strategic Asia
61 Clarisse Strategic Asia
62 Satish Misra Strategic Asia
63 Akira Moretto Strategic Asia
64 Daim Syukriah Strategic Asia
65 Budi Kuncoro TNC
66 Jannes Siahaan Trisakti
67 Tony Bambang Trihartanto Universitas bakrie
68 Eko Kurniawan UNJ
69 nassat D Idris USAID
70 Rini Astuti WWF
71 Yudi Hermawan Yayasan Expecta Sejahtera
72 Vlasios Voudoris London Metropolitan University
73 Derri Habir Strategic Asia
74 Michael moody British Embassy
75 Fifih Octavia Prudential
76 Hernani Yulinawati Univ.Triskakti
77 Nuning Elmayani Pusat KLN Kemenhut
78 Ujang R Bappeda Kaltim
79 Yun Handrison Prudential
80 Zulazmi GIZ
81 Faisal Buadsal
82 Daddy Ruhiyat DDPI Kaltim
83 A.A Bagus Sudharsana Ka BLH Ops
84 Dedy Hadriyadi Unmel
85 Lidwina Adeline Trisakti University

Seminar Four- Implementing the MP3EI at the National Level

Wednesday 14th and Thursday 15th March 2012
Jakarta
Attendance List

Day One

Number Name Organisation

1 Emma Allen ILO
2 Rudianto H PII
3 Agus gunawan KLH
4 hasiando P.L Tobing Strategic Asia
5 Prof. Daddy Ruhiyat Dewan Daerah Perubahan Iklim

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 6 A Wahab Kemenaker
7 Aries R. Prima PII
8 Venny ICEL
9 David H Biro Perencanaan Kemenhut
10 Noor Syaifudin BKF Kemenkeu
11 Christine Wulandari Forum Komunikasi kehutanan / UNILA
12 Edward Panjaitan SGU
13 Merry LG International
14 M Taufiq Rinaldi PKPS BAPPENAS
15 Sukria W PUI
16 Dharsono Hartono PT Rimba Makmur Utama
17 Harsina DNPI Mitigasi
18 Tri Widayati KLH
19 Yulia Fatma Asri ICEL
20 Nulsono BKF Kemenkeu
21 Neneng Djuaeriah SGU
22 Pitojo budiono Capabel
23 Bastary P. Indra Bappenas
24 Mawardi Amin UMB
25 Edib Muslim Menko Perekonomian KP3EI
26 Nirmal Nikhar Strategic Asia
27 Rudy Tobing SGU
28 Hernani Yulinawati Trisakti University
29 Waspodo Kemenhut
30 Rakhmindyarto Kemenkeu
31 Kate OLoughlin Strategic Asia
32 Akira Moretto Strategic Asia
33 Adrinanus Mooy UPH / Strategic Asia
34 Minesh Dave Tata Power
35 Anwar Sumaroi Bappenas
36 Resa Raditio ICEL
37 Adam Tomasek WWF

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38 Mulyono Prabowo BMKG
39 Roy Abimanyu OXFAM
40 Rauf Prasodjo WRI
41 Iwan R PARAMADINA
42 Hendra Gunawan Jasa Marga
43 Michael Marien GIZ
44 Budi Kuncoro TNC
45 Torill wanvik Embassy of Norway
46 Daju Resosudarmo CIFOR
47 Rahmat Hidayat BNI
48 Heru Komarudin CIFOR
49 Victor Mammor FOKER LSM Papua
50 Maxine Carr Strategic Asia
51 Hairul Anwar Sekretaris Aceh Green Community
52 Praselyono Widjoyo BAPPENAS
53 Keith Hargreaves Strategic Asia
54 Syafiuan Rozi Subhan P2P CHI
55 Dewa Yojwia staff BAPPEDA
56 MK.S. Yuliadewi Kader Staff Bappeda Bali
57 Rudy E Prayitno Pam Jaya
58 D.Yvanger BritCham
59 Alfred N US Embassy
60 Nikko Indra W Martahon Oil
61 Syaeful Firdaus Bappenas Papua
62 Budi S PDAM DKI
63 Ulrich Mohr GIZ
64 Adrian Short Rolls Royce
65 Yudy Hermawan Yayasan Expecta Sejahtera
66 Sanusi Saudek BPPMD Kalimantan Timur
67 Wisnu Rusmantoro WWF Heart of Borneo
68 Markus Kajoi FOKER LSM Papua
69 Deddy Hadriyanto C3s_ummul

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 70 Indah Si.I Strategic Asia
71 Erni Margiono BEDO
72 Lian Jap British Embassy
73 Rismawati Bappeda PAPUA
74 Japa Pratama Martahon Oil
75 Nara Melissa British Embassy
76 Agus Gunawan KLH
77 Krsihna R Suparto BNI
78 Andree Eka Pinata TNC
79 Erick Purwanto Balfour
80 I Wayan Arthana University Udayana PPLH - UNUD
81 Suhaimi Hamid Aceh Green Community (ACG)
82 Saur Parsanran T BAPPEDA Kaltim
83 Didik Wahyudianto PTCharoen Pokphand Indonesia-Bali
84 Ray Tumundo PT Charoen Pokphand Indonesia-Bali
85 Indah Eliana BLH / DDPI
86 Siti B Wardhani FCO Jakarta
87 Husni Fahri Bappeda NTB
88 Ryandiaz T Martahon Oil
89 Kerstin Nagels GIZ
90 Asclepias Rachri USAID-ICED

Day Two

Numbe Name Organisation

r
1 Noerojo BKF Kemenkeu
2 Elme de Loitire PLAYJA
3 Noor Syaifudin BKF Kemenkeu
4 David H Kemenhut
5 Sukria W PUI
6 Lian Jap British Embassy
7 Gunawan IHCS

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8 Harsina DNPI Mitigasi
9 A.A. Gede Sumadi Putra Strategic Asia Bali
10 Ari W. Adipratomo Strategic Asia
11 Yosman Bustaman Swiss German University
12 Markus Kajoi FOKER LSM Papua
13 Victor Mammor FOKER LSM Papua
14 Jonathan Mantle International Expert, London
15 Deddy Hadriayanto Head of Climate Change Study, Mulawarman
University, Samarinda East Kalimantan
16 Hernani Yulinawati Trisakti University
17 Erni Margiono BEDO
18 MK.S. Yuliadewi Kader Staff Bappeda Bali
19 Indah Si.I Strategic Asia
20 Ray Tumundo PT Charoen Pokphand Indonesia-Bali
21 Mawardi Amin UMB
22 Reynardo Nainggolan Danareksa
23 Sanusi Saudek BPPMD Kalimantan Timur
24 Rudy Tobing Swiss German University
25 Venny ICEL
26 Husni Fahri Bappeda NTB
27 Didik Wahyudianto PT Charoen Pokphand Indonesia-Bali
28 Eliyani UMB
29 Diah Noor British Embassy
30 Dhona ElFurqon IHBS
31 Hairul Anwar Aceh Green Community (ACG)
32 Debi Nathalia DNPI Mitigasi
33 Merry LG International
34 Iis Alviya Puspijak
35 Elvida YS Puspijak
36 Mega Lugina Puslitbang Perubahan Iklim dan Kebijakan
Kehutanan
37 Yudy Hermawan Yayasan Expecta Sejahtera
38 Dodik R. Nurrohmat IPB

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39 Ida Ayu Cintya Strategic Asia
40 Vina Hutapea Danareksa Capital
41 I Wayan Arthana University Udayana PPLH - UNUD
42 Syaeful Firdaus BAPPENAS Papua
43 Rismawati BAPPEDA Papua
44 Saur Parsanran T BAPPEDA Kaltim
45 Indah Elian DDPI/ BLH East Kalimantan
46 Roy Abimanyu OXFAM
47 Budi Kuncoro TNC
48 Sandi Kemenhut

First Low Carbon Economy Knowledge Hub

9th February 2012
Attendance List

1. Eko Kurniawan, Universitas Negeri Jakarta

2. Suhaimi Hamid, Aceh Green Community
3. Sukria, PUI, 087863783898
4. Ir. Faisal, M.Si, Badan Lingkungan Hidup Daerah, South Sulawesi
5. Idham Moe, Ministry of Public Works
6. Dr. Deddy Hadriyanto, GS Unmal
7. Benja Victor Mambai, WWF Papua
8. Akira Moretto, Strategic Asia
9. Daim Syukriyah, Strategic Asia
10. Maxine Carr, Strategic Asia
11. Keith Hargreaves, Strategic Asia
12. Prabowo, Strategic Asia

Second Low Carbon Economy Knowledge Hub

15th March 2012
Attendance List

1. I Wayan Ardana, PPLH at University of Udayana.

2. Suhaimi, AFIC
3. Rismawati, Bappeda, Papua
4. Haimal Anwar, Aceh Green
5. Indah Eliana, DDPI/BLH Kalimantan Timur
6. Deddy Hadriyanto, Univeristy Mulawarman
7. Dodile R. Nurroclimat, IPB
8. Sukria W, POI
9. Prabowo, Strategic Asia

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10. Akira Moretto, Strategic Asia
11. Daim Syukriyah, Strategic Asia
12. Idaayu Cintya, Strategic Asia
13. Maxine Carr, Strategic Asia

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