java, sumatra big winners in next phase of mp3

I thought I would add somnething different while we wait for news on pending spud updates.

Interesting to note that the government is going to invest not millions but billions into the Sumatra area.

Close to where are investments are located.

I think this is a great news for the economy and companies who have interest in the Java and Sumatra locations thing to upgrade infrastructure etc

Do you agree?


ref Jarkata Globe 13 Mar 2013
Java and Sumatra are home to a lion’s share of 40 infrastructure projects worth Rp 337 trillion ($34.8 billion) that the national government says are priorities for the next four years.

Lucky Eko Wuryanto, deputy for infrastructure and area development at the Coordinating Ministry for the Economy, said projects were earmarked for 2014 to 2017 under the next phase of the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI).

“The investment cost includes the estimate for land acquisition,” Lucky said on Sunday.

According to a document from the Indonesian Economic Development Committee (KP3EI), 10 infrastructure projects worth Rp 131 trillion will be developed on Java.

Twelve projects worth Rp 111 trillion will be built in Sumatra, while in Kalimantan five projects worth Rp 41 trillion will be developed and in Sulawesi seven projects worth Rp 61 trillion.

In Bali and Nusa Tenggara, there are three projects worth Rp 4.1 trillion, and in Papua and Maluku islands two projects worth Rp 3.3 trillion. Lucky said the projects in eastern Indonesia will rely heavily on finance from the state budget and state-owned enterprises.

The most expensive project, he said, would be the development of Cilamaya port in Karawang, West Java, worth Rp 40.3 trillion. Close behind will be the development of nearby Karawang airport at a cost of Rp 36.2 trillion.

Both projects are expected to start construction in 2017.

In North Sumatra, the government is seeking Rp 27 trillion to build Kuala Tanjung port. In Central Kalimantan, Rp 22 trillion is being sought for a railway project from Puruk Cahu to Bangkuang, and in North Sulawesi, Bitung international port, worth Rp 31 trillion, will be built.

The priority projects include the development of eight sections of the Trans-Sumatra Highway.

Indonesia’s infrastructure lags that of many other nations. According to the World Bank’s Logistics Performance Index for 2012, Indonesia ranked 59 out of 155 countries assessed. The index reflects the perceptions of global freight forwarders doing business with Indonesia.

Indonesia has improved its performance since 2010, when its rank was 75, but the Performance Index for 2012 showed the country behind neighbors Singapore, Malaysia, the Philippines, Vietnam and Thailand. It also lags behind China, India, Taiwan and South Korea.

President Susilo Bambang Yudhoyono has sought to accelerate projects focused on revitalizing services and developing new infrastructure. Last year, Yudhoyono inaugurated eight projects, all part of MP3EI, with a total investment value of $15.8 billion.

They include a floating storage and regasification unit in West Java; enhanced oil recovery projects from Pertamina EP, Pertamina Hulu Energi and Pertamina EP Cepu; and gas processing plants in Sungai Kenawang and Pulau Gading.

MP3EI is a 15-year, Rp 4,000 trillion infrastructure blueprint.