July 7, 2011
1. Based on the Memorandum of Cooperation signed and agreed between the Governments of Japan and Indonesia for the concept of Metropolitan Priority Area for Investment and Industry (MPA) in JABODETABEK Area in December 2010, JICA has launched the MPA Master Plan Study in May 2011 to materialize the MPA concept.
2. Beginning from May 2011, the Master Plan Study will spend approximately one year to undertake the following: 1) formulation of a city vision for Jabodetabek in 2020 by taking into account prediction of the socioeconomic conditions of Indonesia in 2030, 2) formulation of a comprehensive infrastructure plan to be achieved in Jabodetabek by 2020 and identification of priority projects, and 3) acceleration of the Fast Track Projects which are scheduled to start by the end of 2013 at the latest.
3. In recent years, Indonesia has achieved stable economic growth. In order to ensure further growth in Jabodetabek, the driving force of the Indonesian economy, the highest priority must be placed on resolving the problem of inadequate urban infrastructure. To address this problem and develop Jabodetabek as an area that is more attractive as an investment destination and better suited to industrial development, as well as being friendly to people and the environment, the Jakarta MPA concept was proposed as a collaborative endeavor between Japan and Indonesia, and the Memorandum of Cooperation was signed at the ministry level of both governments in December 2010. A steering committee composed of cabinet members and others of both countries has been established along with a technical committee composed of sub-ministerial level staff, and close exchanges of opinion will take place concerning the development of the area with an aim of solving Jakarta’s infrastructure problems. At the first MPA Steering Committee meeting held in March 2011, the Governments of Japan and Indonesia agreed on the framework of the master plan study as well as the Fast Track Projects, the construction phases of which are to start by the end of 2013 at the latest The MPA master plan study was commenced based on these agreements.
4. The fundamental concepts for formulating a Jabodetabek infrastructure development plan under the master plan study are “safe and secure” and “environmentally-friendly technology.” These fundamental concepts are vital for socioeconomic development in Indonesia, and these are fields in which Japan has advanced technologies and rich experiences. This master plan study covers nine areas: public transportation networks, roads, airports, ports, industrial estate, power supply, water supply/sewer systems, waste management, and flood control. JICA will move forward with the study while coordinating with other on-going technical and financial cooperation.
5. Within the MPA framework, public-private partnerships (PPPs) are planned to be actively utilized to achieve the Fast Track Projects and other priority projects, and implementation is planned to move forward using the dynamism and funding of the private sector. In the selection of the companies commissioned for the study, it was required that the mission member included specialists with knowledge and experience in infrastructure investment and infrastructure project management, in addition to the conventional expertise in urban planning, This requirement was included as the MPA Master Plan will not only focus on formulating a master plan, but put priority on realizing the individual projects Based on the these criteria, a joint venture of 11 companies was selected as the commissioned study team : consultants (Nippon Koei, Oriental Consultants, and Mitsubishi Research Institute) and trading and industrial companies (Mitsubishi Corp., Chiyoda Corp., JGC Corp., Taisei Corp., Tokyo Metro, Hitachi, Metropolitan Expressway, and NYK Line) will join forces to undertake the study and began an on-site survey together with Indonesian experts and officials. The aim of such a study group structure is to enhance the feasibility and attractiveness of the infrastructure development plan as well as of individual projects considered and proposed under the master plan study. During the study process, knowledge, opinions, requests, candidate projects and other input from the private sector in Japan and Indonesia will be taken into consideration. Through these measures, the MPA master plan study aims to promote the utilization of advanced technologies of the Japanese private sector in order to promote both sustainable economic development of Jakarta Metropolitan area and Indonesia as a whole.