Bernardus R.

Djonoputro
Country Head
Deloitte Infrastructure & Capital Projects Indonesia

Bernardus Djonoputro is currently Country Head, Deloitte Infrastructure & Capital

Projects in Indonesia.

Bernardus has been active as consultant to investors, corporations, bilateral

agencies, as well as central and local governments in Indonesia on infrastructure
and urban planning projects. His experience has been extensive and unique, as
he had successfully completed significant transactions and corporate actions, and
Public Private Partnership (PPP) programs in infrastructure assets and businesses,
including ports, toll roads and water.

Bernardus was part of core design team of the award winning largest Australian
infrastructure grant to Indonesia, KIAT. He currently lead project
preparation, transaction and core advisory of largest PPP projects in Indonesia,
including urban transportation LRT and BRT, multi function satellite launch,
Special Economic Zones and social infrastructures. As well as core advisory and
project management unit of the PPP Unit at Ministry of Finance.

Prior to joining Deloitte, his 28 years of professional include Managing Partner of

HD Asia Advisory, where he worked with Fortune 500 companies, and national
and local governments. He had practical infrastructure corporate experience as
managing directors and board member with PT Nusantara Infrastructure, PT
Jababeka Infrastructure, Hawkins Infrastructure LTD, New Zealand. Bernardus
has also had extensive experience in senior positions with leading global
professional services firms in Indonesia.

He is currently the President of Indonesian Association of Urban & Regional

Planners, and also member of the Advisory Council of APEC Center for Urban
Infrastructure Financing at RMIT Melbourne, and Fellow/Faculty at the Salzburg
Global Seminar.

© 2018 PT Deloitte Konsultan Indonesia Deloitte Indonesia Infrastructure CEO Forum 2018 1
Asia needs over USD 22.6 trillion & ASEAN needs over USD 2.8 trillion in
infrastructure investments until 2030
Compared to the neighboring countries, Indonesia requires a substantial amount of investment to
address its infrastructure challenges.

Investment needs for Asia & ASEAN Less than USD 100 bn
between 2016-2030 (USD bn) USD 100-200 bn
MYANMAR
>USD 200 bn
LAOS
By sector By region
VIETNAM

787 THAILAND
Water 492 Pacific – 42
2,279 Telco
2,75 CAMBODIA
9 PHILIPPINES

7,796 Transport
5,477

13,781
MALAYSIA

SINGAPORE

11,6
89 Power Central Asia
East Asia
South Asia
ASEAN
The Pacific
INDONESIA

Source: Meeting Asia’s Infrastructure Needs, ADB (2017)

© 2018 PT Deloitte Konsultan Indonesia Deloitte Indonesia Infrastructure CEO Forum 2018 2
With the large funding gap, private sector participation—both foreign &
domestic—in Indonesia’s infrastructure is imperative
The nation is catching up to meet the gap to provide basic infrastructures. In the recent years, all
levers within public sector’s domain have been pulled, including the deployment of State-Owned
Enterprises’ resources. Today private sector participation through Public-Private Partnerships scheme
is building its momentum, despite remaining challenges.

Indonesia’s Infrastructure Funding Gap in 2015-2019 (USD bn)

Regional State Funding

Telecommunication, Connectivity Budget Gap
Water, and Housing (Toll Road, Seaport,
Airport)
1
SOE
SOE
11%
105.2 USD 76.7 bn
131.5
22.23%
State 30%
345bn Budget 59%

203.6 bn
Private US$126
bio
Private
2

USD 125 bn
36.52%

108.4

Power & Electricity

Source: Indonesia National Development Planning Agency (2015)

© 2018 PT Deloitte Konsultan Indonesia Deloitte Indonesia Infrastructure CEO Forum 2018 3
 Indonesia’s PPP project pipeline progress
Simultaneous efforts have led to remarkable pipeline growth in the past year, but success rate still
below expectation.
PLANNING PREPARATION TRANSACTION CONSTRUCTION

Preliminary Outline Final Tender Bid PPP Financial

Project Study Business Case Business Case Preparation PQ RFP Award Agreement Close
Identification (OBC) (FBC) Signing

1. Manado - Bitung
1. Samarinda - 1. Yogya - Solo Toll Road 1. Surabaya - Madura 1. Semarang – 1. Probowangi 1. Nambo
Toll Road
Bontang Toll- 2. Yogya - Bawen Toll Toll Bridge Demak Toll Toll Road Regional
2. Balikpapan -
Road Road 2. Tanjung Sauh Port Road 2. Pekanbaru Waste
Samarinda Toll
2. North Bali 3. Bitung Port 3. Batu Ampar Port Water Management
Road
Airport 4. Kuala Tanjung Port 4. Hang Nadim Airport 2. Multifunction 3. West
3. Pandaan - Malang
3. SWRO Batam 5. Maloy Port and 5. Pirngadi Hospital Satelite Semarang
Toll Road
4. Batam Industrial Area 6. Dharmais Cancer Water Supply
4. Krian - Legundi -
Sewerage 6. Surakarta Street Hospital 1. Cisumdawu Bunder - Manyar
System Phase 2 Lighting 7. Makassar - Parepare Toll-Road Toll Road
5. Batam Industrial 7. University of Udayana Railway 2. Bandar 5. Jakarta -
Waste Teaching Hospital 8. Medan Urban Lampung Cikampek
Treatment 8. Polytechnic Batam Transport Water Elevated II Toll
6. Batam e-Gov Education Facility 9. Batam LRT Supply Road
Phase 2 Development 10.Pekanbaru Regional
6. Batang -
7. BP Batam 9. National Integrated Water Supply 1. Serang Semarang Toll
Hospital Welfare System 11.Pondok Gede Water Panimbang Road
10.Papua Sports Arena Supply Toll Road 7. Serpong - Balaraja
11.Nusakambangan 12.Legok Nangka 2. Jakarta - Toll Road
Industrial Waste Treatment Cikampek 8. Umbulan Water
Correctional Facility 13.Bandung Street South Toll Supply
12.Correctional Lighting Road 9. Central Java
Facility Relocation 14.University of Sam
Power Plant
Ratulangi Teaching
10.Palapa Ring
Hospital
15.Sidoarjo General
Hospital

Estimated cumulative
investment: USD 8 bn
Source: Deloitte analysis

© 2018 PT Deloitte Konsultan Indonesia Deloitte Indonesia Infrastructure CEO Forum 2018 4
Multiple obstacles to be unblocked for PPP development in Indonesia
Land acquisition
Land acquisition remains as a
major risk and challenge.
Despite recent reform, issues
still persist on conflicting land
data leading to inaccurate
acquisition plan, strenuous
acquisition procedure, and
weak commitment of public
party to tackle land acquisition
responsibility.
Political and regulatory
Infrastructure sectors are heavily
regulated and easily affected by
political decisions and suboptimal
governance, including uncommon,
inconsistent, and frequent change
of regulations.
© 2018 PT Deloitte Konsultan Indonesia
Project planning & preparation
Robust feasibility studies and solid preparation is one of the key
elements to ensure project success. It will stem from development
of healthy and feasible pipeline during planning.
Limited resources
This is indicative of the low
capacity of the contracting
agency and/or technical sector
institutions in preparing PPP
projects (e.g. lack of focus and
limited human and financial
resources for PPP project
preparation, limited public
budget to contribute towards
making project bankable).
Weak management
Weak management of PPP
development includes weak
Financing constraints coordination between
stakeholders (among
Minimal guarantee support and de-risking regulators, and between
instruments available, absence of long-term regulator and GCA), and weak
financial intermediation, and nascent domestic contract management ability of
capability to support project financing. the GCA.
Deloitte Indonesia Infrastructure CEO Forum 2018 5
 Deloitte Infrastructure CEO Forum 2018 is intended
to gather inputs from multiple stakeholders’ point of
views on the following topics as inputs for the IMF-
World Bank Group Annual Meeting, October 2018:

Project Opportunities
Limited Fiscal Capacity in Local Government
Human Resource Development

© 2018 PT Deloitte Konsultan Indonesia Deloitte Indonesia Infrastructure CEO Forum 2018 6
 Ir. Heru Prasetyo, MBA Darwin Trisna Djayawinata
Senior Advisor, School of Director Advisory,
Business and Management PT Sarana Multi Infrastruktur
ITB (Persero)

Dr. Agung Wicaksono J. Regulus Silalahi

Operations & Maintenance Director, Deloitte Indonesia
Director of PT MRT Jakarta Infrastructure & Capital
Projects

Keoy Soo Earn Prof. Danang Parikesit

Regional Managing Partner University of Gadjah Mada
Financial Advisory Deloitte SEA

© 2018 PT Deloitte Konsultan Indonesia Deloitte Indonesia Infrastructure CEO Forum 2018 7
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© 2018 PT Deloitte Konsultan Indonesia