The Provision of Water Supply System through

Public-Private Partnership (PPP) Scheme

in Indonesia

APRIL 2018
 REPUBLIK
Strategic Issues in Water Supply Provision in Indonesia
INDONESIA

4.5% current access

71.05% access to safe 38,000 lps if idle
growth in the past 5
drinking water (2015) capacity:
years
(utilization potential +
3,800,000 house
connection)
Target 2019: 100% Target: 7.5%

53% of drinking water

33% nationwide NRW: ROEs is in ‘healthy’ state 128 m3/s raw water
(BPKP Audit, 2015) requirement to meet
drinking water demand:
128 m3/s
Target: 20% Target 2019: 100%

Source:
< 10% allocation of regional budget Regulation limits the participation of Directorate General of
private sector in water supply provision Human Settlement,
to finance water supply provision Ministry of Public Works
and Housing
 REPUBLIK
Isu Strategis dalam Penyediaan SPAM di Indonesia
INDONESIA

Perkembangan akses
Akses air minum bersih Kapasitas apabila tidak
selama 5 tahun ke
71,05% (2015) terpakai 38.000 lps:
belakang 4,5%
(potensi penggunaan +
3.800.000 Sambungan
Rumah)
Target 2019: 100% Target: 7,5%

Non-revenue water 53% PDAM dalam

(NRW) seluruh keadaan sehat (Audit Kebutuhan air baku 128
Indonesia 33%: BPKP, 2015) m3/s untuk memenuhi
kebutuhan air minum:
128 m3/s
Target: 20% Target 2019: 100%

Alokasi APBD < 10% untuk
membiayai penyediaan air minum
Sumber:
Peraturan membatasi partisipasi sektor Direktorat Jenderal Cipta
swasta dalam penyediaan air minum Karya, Kementerian
Pekerjaan Umum dan
Perumahan Rakyat
 REPUBLIK
Water Supply Provision Framework
INDONESIA

Cooperation in order for the Responsibility

effectiveness & efficiency of
water supply provision
Central Government and/or
Regional Government

Private Sector Authority to form

Operator
SOE/ROE
Operational cooperation
If outside of SOE/ROE’s
coverage area

Technical Service Unit Authority to manage

(TSU)
Community served If outside of SOE/ROE’s or TSU’s
coverage area

Community Group

Business Entity, to cater its

own need Source:
For areas not covered by
Directorate General of Human Settlement,
SOE/ROE, and TSU
Ministry of Public Works and Housing
 REPUBLIK
Kerangka Regulasi Penyediaan SPAM
INDONESIA

Kerja sama dalam rangka Penanggung jawab

efektivitas dan efisiensi
penyediaan air minum
Pemerintah Pusat dan/atau
Pemerintah Daerah

Sektor Swasta Wewenang untuk membentuk

Operator
BUMN/BUMD
Kerja sama operasional
Apabila diluar ruang lingkup
BUMN/BUMD

Technical Service Unit Wewenang untuk mengelola

(TSU)
Masyarakat yang Apabila diluar ruang lingkup
dilayani BUMN/BUMD dan TSU

Kelompok Masyarakat

Badan Usaha, untuk melayani

kebutuhannya sendiri Sumber:
Untuk area diluar ruang lingkup Direktorat Jenderal Cipta Karya, Kementerian
BUMN/BUMD dan TSU Pekerjaan Umum dan Perumahan Rakyat
 REPUBLIK
Investment Source and Financing Alternatives
INDONESIA

B to B
Regional
PPP gov’t
loan
Water
company
loan
Perfomance
-based Bonds
Grant
CSR

Others

Source:
Directorate General of Human Settlement,
Ministry of Public Works and Housing
 REPUBLIK
Sumber Investasi dan Alternatif Pembiayaan
INDONESIA

B to B

Pinjaman
KPBU
Pemda
Pinjaman
PDAM
Hibah
berdasarkan Obligasi
kinerja
CSR

Lain-
Lain

Sumber:
Direktorat Jenderal Cipta Karya,
Kementerian Pekerjaan Umum dan
Perumahan Rakyat
 REPUBLIK
PPP Framework in Infrastructure Provision
INDONESIA

Subject matter of Presidential Regulation Number 38/2015

Presidential Regulation Number 38/2015
Aspects Regulation
Subject of Government Business Entity Ministry of National Development Planning Regulation
partnership 1. Minister 1. SOE/ROE Number 4/2015 regarding General Guidelines
2. Head of Institution 2. Foreign Business Entity
3. Head of Region 3. Limited Liability Head of Government Procurement of Goods and Services
4. SOE/ROE Company Agency Regulation Number 19/2015 regarding Provision
4. Cooperation by Business Entity

Object of Economic and Social Infrastructures (19 sectors of AVAILABILITY PAYMENT;

Partnership infrastructure)

Government 1. Government in kind Minister of Finance Regulation Number

Contribution 2. Government support {i.e. Viability Gap Fund) 260 /PMK.08/2016
3. Government guarantee
Minister of Home Affairs Regulation
Investment 1. User charge (payment by user in the form of tariff) Number 96/2016
Return for 2. Availability payment (payment of service availability)
Business Entity 3. Other forms as long as it doesn’t contravene with the GOVERNMENT GUARANTEE
law • Presidential Regulation Number 78/2010
• Minister of Finance Regulation Number 260/PMK.011/2010 jo. Minister
of Finance Regulation Number 8/PMK.08/2016
Phases 1. Planning phase
GOVERNMENT SUPPORT
2. Preparation phase Minister of Finance Regulation Number 223/PMK.11/2012 (VGF)
3. Transaction phase
Government Regulation No 27/2014 on the Management of
State/Regional Goods
 REPUBLIK
Government Facilities in PPP Scheme
INDONESIA

Equity
Financier
Sponsor
GOVERNMENT
DEBT EQUITY
FACILITIES
Infrastructure
Project Development Fund PPP CONTRACT PPP Project services

GCA Special Purpose USER

Viability Gap Fund Availability Company User Fee
Payment
Government Guarantee by
IIGF
COST RECOVERY SCHEME
Infrastructure Financing and • Tariff (User Fee)
Fund through PT. SMI and IIF • Availability Payment (AP)
• Other Legal Forms
 REPUBLIK
19 Sectors Covered for PPP in Indonesia
INDONESIA

CONNECTIVITY URBAN SOCIAL

INFRASTRUCTURE INFRASTRUCTURE
Road
 Toll Roads Tourism
 Toll Bridges Water supply
 Roads
Transportation
 Seaports Waste management
Education facilities
 Airports system
 Railways
 Road transportation Water resources &
Electricity irrigation
Sports, art & culture
 Power plants facilities
 Transmission
Localized waste
Energy conservation water management
 Street lighting Health
Centralized waste
Oil, Gas, and
water management
Renewable energy
Zone/ Estates
Telecommunication Public housing
& Informatics
 Fiber optics
 E-government Penitentiary
 Satellite Urban facility
 Traditional market
10
 REPUBLIK
PPP Projects in Water Supply System
INDONESIA

PLANNING PREPARATION TRANSACTION

Preliminary Final Business Case Tender Request for PPP Agreement Financial
Outline Business Case PQ Bid Award
study (FBC) Preparation Proposal Signing Close
(OBC)
the project innitiator

CONSTRUCTION
Government as

(SOLICITED)

Pekanbaru Regional West Semarang Bandar Lampung Umbulan

Water Supply Water Supply Water Supply Water Supply

Project proponent submits PPP

a proposal and pre-FS Business Entity Agreement Financial
FS evaluation Procurement
document to GCA submits FS Signing Close
the project innitiator
(UNSOLICITED)
Private as

. Construction

Issuing approval letter:

• Pre-FS document evaluation to 1. Establishing the project as an
Karian get pre-FS approval; Jatiluhur Unsolicited Project;
Water Supply • GCA gives the rights to project Water Supply 2. Establishing the business
proponent to prepare FS entity as the project initiator.
 The Importance of Water Supply System Infrastructure
REPUBLIK
INDONESIA

Land subsidence in Jakarta and the north Limited coverage from the current system
coast of Java due to groundwater due to limited supply
extraction

Source: PAM Jaya

Additional water supply is needed

Jatiluhur 1: 5,000 l/s Jatiluhur 2: 5,000 l/s Karian: 4,600 l/s

 Pentingnya Infrastruktur SPAM
REPUBLIK
INDONESIA

Penurunan tanah di Jakarta dan pesisir Cakupan pelayanan terbatas dari sistem
utara Jawa karena ekstraksi air tanah yang ada karena suplai terbatas

Sumber: PAM Jaya

Dibutuhkan suplai air tambahan

Jatiluhur 1: 5,000 l/s Jatiluhur 2: 5,000 l/s Karian: 4,600 l/s

 Project Case:
REPUBLIK
INDONESIA Jatiluhur 1 Regional Water Supply System
Objective
To meet the availability of raw water / bulk water which
currently has a considerable deficit in DKI Jakarta and
West Jave Provinces.

With the capacity of 5000 l/s, it is to supply the areas of

Karawang Regency, Bekasi Regency, Bekasi City, and DKI
Jakarta.

Project Scope
The construction of:
- Intakes (Bekasi & Cibeet)
- Water Treatment Plants (Bekasi & Cibeet)
- Raw water transmission pipeline to WTPs
- Bulk water transmission pipeline
- Main distribution (reservoir-offtake) pipeline

Image source: PT Tirta Gemah Ripah

 Kasus Proyek:
REPUBLIK
INDONESIA SPAM Regional Jatiluhur 1
Objektif
Untuk memenuhi kebutuhan air baku / air curah yang saat
ini sedang defisit di DKI Jakarta dan Jawa Barat

Dengan kapasitas 5000 l/s, proyek akan menyediakan air

baku untuk Kabupaten Karawang, Kabupaten Bekasi, Kota
Bekasi, dan DKI Jakarta.

Lingkup Proyek
Konstruksi dari:
- Intake (Bekasi & Cibeet)
- Instalasi pengolahan air (Bekasi & Cibeet)
- Saluran pipa transmisi air baku ke instalasi pengolahan
air
- Saluran pipa transmisi air curah
- Saluran pipa distribusi utama (reservoir-offtake)
Image source: PT Tirta Gemah Ripah
 Project Case:
REPUBLIK
INDONESIA Jatiluhur 1 Regional Water Supply System
Indicative Project Structure Project Brief
Ministry of Public Scheme : Unsolicited Project
Works and Business Business Business Estimated Project Cost : USD 142.2 million
Housing Entity Entity Entity
FIRR : 13.62%
delegates investment investment investment
as GCA in shares X% in shares Y% in shares Z% Investment Scheme : BOT
BOT Agreement : 30 years (2.5 years
Perum Jasa Tirta 2
(GCA) BOT Agreement SPV construction & 27.5 years operation)
30 years
bulk water
sale and purchase agreement Capacity : 5,000 l/s
Construction Operational
PAM Jaya Agreement Agreement
DKI Jakarta
Development
Partners
Government Facility
WTP Operator
PDAM Tirta Patriot (consultant/contractor/v PJT 2 as Government Contracting Agency will
Bekasi City endor) facilitate the required land acquisition
PDAM Tirta Bhagasi
Bekasi Regency

PDAM Tirta Tarum

Karawang Regency
 Kasus Proyek:
REPUBLIK
INDONESIA SPAM Regional Jatiluhur 1
Struktur Indikatif Proyek Ringkasan Proyek
Kementerian Skema : Unsolicited
Pekerjaan Umum dan Badan Usaha Badan Usaha Badan Usaha Perkiraan Nilai Proyek : USD 142,2 juta
Perumahan Rakyat
FIRR : 13,62%
delegasi Investasi saham Investasi saham Investasi saham
sebagai PJPK sebesar X% sebesar Y% sebesar Z% Skema Investasi : BOT
Perjanjian BOT : 30 tahun (2,5 tahun konstruksi
Perum Jasa Tirta 2
(PJPK) Perjanjian BOT SPV & 27,5 tahun operasional)
30 tahun
Air curah
Perjanjian jual beli Kapasitas : 5.000 l/s
Perjanjian Perjanjian
PAM Jaya Konstruksi Operasional
DKI Jakarta
Mitra Pembangunan Operator Instalasi Bantuan Pemerintah
(konsultan/kontraktor/
PDAM Tirta Patriot
vendor)
Pengolahan Air PJT 2 sebagai PJPK akan memfasilitasi pengadaan
Kota Bekasi
lahan yang dibutuhkan
PDAM Tirta Bhagasi
Kabupaten Bekasi

PDAM Tirta Tarum

Kabupaten Karawang
 Project Case:
REPUBLIK
INDONESIA Jatiluhur 2 Regional Water Supply System
Objective
To increase drinking water coverage in DKI Jakarta to 77.47%
by 2020. It is a complimentary project to Jatiluhur 1
Regional Water Supply System

Project Brief
Scheme : Solicited Project
Estimated Project Cost : IDR 3.35 trillion

Capacity : 5,000 l/s

Government Facility
PJT 2 as Government Contracting Agency will
Project Scope facilitate the required land acquisition
- Intake capacity 5,000 l/s
- Raw water transmission pipeline Ministry of Finance will facilitate Viability Gap
- Water treatment plant (5 x 1,000 l/s) Funding (VGF)
- Bulk water transmission pipeline 2,000 mm, 69 km
- Distribution network
- Leakage reduction program
 Kasus Proyek:
REPUBLIK
INDONESIA SPAM Regional Jatiluhur 2
Objektif
Untuk meningkatkan cakupan air minum di DKI Jakarta ke
77,47% pada tahun 2020. Proyek ini merupakan pelengkap
dari proyek SPAM Regional Jatiluhur 1

Ringkasan Proyek
Skema : Solicited
Perkiraan Nilai Proyek : IDR 3,35 triliun

Kapasitas : 5.000 l/s

Bantuan Pemerintah
PJT 2 sebagai PJPK akan memfasilitasi pengadaan
Lingkup Proyek lahan yang dibutuhkan
- Kapasitas intake 5.000 l/s
- Saluran pipa transmisi air baku Kementerian Keuangan akan memfasilitasi proyek
- Instalasi pengolahan air (5 x 1.000 l/s) melalui Viability Gap Funding (VGF)
- Saluran pipa transmisi air curah 2.000 mm, 69 km
- Jaringan distribusi
- Program reduksi kebocoran
 Project Case:
REPUBLIK
INDONESIA Karian Regional Water Supply System
Objective
To secure 14.6 m3/s water resources by allocating 4.6
m3/s for DKI Jakarta and Banten provinces.

Project Scope
Water Treatment Plant (1), distribution reservoir (3),
pipeline (42 km)
 Kasus Proyek:
REPUBLIK
INDONESIA SPAM Regional Karian
Objektif
Untuk mengamankan sumber air 14,6 m3/s dengan
mengalokasikan 4,6 m3/s untuk DKI Jakarta dan Provinsi
Banten.
Lingkup Proyek
Instalasi Pengolahan Air (1), Waduk distribusi (3), saluran
pipa (42 km)
 Project Case:
REPUBLIK
INDONESIA Karian Regional Water Supply System
Ministry of
Sponsors Project Brief
Finance
Equity (30%) Scheme : Unsolicited Project
K-Water Concession period : 34 years (4 years
(lead company) construction, 30 years operation)
Guarantee Indonesia
70% Infrastructure
LG International Guarantee Fund
(international Capacity : 4,600 l/s
partner)

Adhi Karya Cooperation Agreement

30%
(local partner)
GCA & Off-taker
Project Company
(PJT 2)
Lenders

K-Exim
Debt (70%) MPWH (PU)

KDB
BPPSPAM

GCF O&M
EPC
(K-Water)
MDBs, etc.
 Kasus Proyek:
REPUBLIK
INDONESIA SPAM Regional Karian
Kementerian
Sponsors Ringkasan Proyek
Keuangan
Ekuitas (30%) Skema : Unsolicited
K-Water
(perusahaan
Masa konsesi : 34 tahun (4 tahun
utama) Jaminan PT Penjaminan konstruksi, 30 tahun operasional)
70% Infrastruktur
LG International Indonesia
(mitra Kapasitas : 4.600 l/s
internasional)

Adhi Karya Cooperation Agreement

30%
(mitra lokal)
PJPK & Off-taker
Badan Usaha
(PJT 2)
Pemberi Pinjaman

K-Exim Kementerian
Hutang (70%) PUPR
KDB
BPPSPAM

GCF O&M
EPC
(K-Water)
MDBs, etc.