SUSTAINABLE DEVELOPMENT FOR INDONESIA: NATIONAL CAPITAL INTEGRATED COASTAL DEVELOPMENT

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1 Coordinating Ministry of Economic Affairs, Republic of Indonesia SUSTAINABLE DEVELOPMENT FOR INDONESIA: NATIONAL CAPITAL INTEGRATED COASTAL DEVELOPMENT (Greeting,) KEY NOTES On International Water Week 2013 in Amsterdam 4 November 2013 Your Excellency Mrs Schultz van Haegen, Your Royal Highness Prince Hasan Dear Mr Chairman of IWW Mrs Vice Mayor of Amsterdam, Director of Amsterdam RAI Distinguished guests and delegates. I am delighted to speak to you on behalf of the Indonesian delegation to the International Water Week here in Amsterdam. We have come here as longstanding partners in water management, an area in which The Netherlands sets world standards. 1

IWW Mrs Vice Mayor of Amsterdam, Director of Amsterdam RAI Distinguished guests and delegates.

2 Indonesia is one of the fast growing economies in South East Asia, with a population of over 240 million people, since 2009 become the member of the G-20, and is currently the 16 th largest economy in the world with GDP nearing to 1 bill US$, and per capita income around 4,500 US$. Nowadays, the economic growth rate of our country is hovering around 6,0%, rank second highest within G20 following People's Republic of China. As an island country, the level of economic development among regions is not the same. Java, where almost of 55% of the population is residing, is still predominating the economic development, even though there has been a consistently decreasing trends as Sumatera and Sulawesi economies have been experiencing a sustainably higher growth rate that Java for the last 5-7 years. To establish a more resilient economic posture, the Government of Indonesia has lead to set the goals and commitments to embark on implementing The Masterplan for Accelereation and Expansion of Economic Development Distinguished guests and delegates. Jakarta, our national capital, counts over 10 million inhabitants. However as a metropolitan area, together with surrounding urban areas, the total population is well over 28 million people. It is one of the 10 largest metropolitan areas in the world. The city has a flat low lying urban delta characteristic whereby 13 rivers and canals, all flowing into the Jakarta Bay from its hinterland areas. 2

Nowadays, the economic growth rate of our country is hovering around 6,0%, rank second highest within G20 following People's Republic of China.

3 This megacity unfortunately is familiar with flooding in the rainy season. Sedimentation, combined with increased discharges, creates high water levels and occasional floods. In February 2007, the Northern part of Jakarta was hit by a different flood. A high tide overtopped the sea wall in Pluit, a lowincome sea side neighborhood in North Jakarta, and sea water was rushing through the streets creating high waters up to 1.5 meters for several days. This flooding from the sea confirmed what some researchers already had been warning for: North Jakarta is subsiding at a staggering speed of 7.5 centimeters per year; some parts even sink up to 14 centimeters per year, and large parts of the city will be under sea level within the next 10 years. Distinguished guests, ladies and gentlemen, In the recent years, the city government of Jakarta has launched a number of dedicated programmes to increase flood safety. Since around 60% of the nation's export and import activities of the country are in and out from Jakarta, any serious disaster would have country-wide economic effects, on top of the significant effects over the health and safety of Jakarta s inhabitants. In order to ensure that the country s steady economic growth can be sustainable in the future, Jakarta s efforts are now extensively supported by central government in the program called the National Capital Integrated Coastal Development program (NCICD). The program was also supported by the Dutch government on the formulation of a master plan and the 3

A high tide overtopped the sea wall in Pluit, a lowincome sea side neighborhood in North Jakarta, and sea water was rushing through the streets creating high waters up to 1.5 meters for several days.

4 establishment of a Program Management Unit to manage the preparation of implementation actions in the future. The ambition of the NCICD program is no less than laying the foundation for maintaining the integrity and security of the National Capital s future. Therefore, land subsidence should stop, floods from rainfall should be mitigated, the city should be protected against the sea, and in the long run an additional fresh water source for drinking water supply could become available from the lagoon created by the outer seawall. NCICD should create the basis for revitalization and economic opportunities for all layers within society. Besides an increasing risk of major floods, the city of Jakarta suffers from a near grid lock traffic system, rising drinking water demands that supersede supply, and heavily polluted urban drainage system. An integral approach connecting all sectors involved is the only way to come up with a solution to cope with the challenges of flooding and a pressure on the urban environment. Distinguished guests, ladies and gentlemen, NCICD forms a temporary, unique and complex combination of goals for water safety and economy driven urban development. A wide range of projects and interventions are included in the portfolio of NCICD. A multitude of governmental institutions on national and regional level have a stake. Investments of up to 50 billion US$ may be required, of which a major part is expected to be made by the private sector. The program will need to discover 4

Therefore, land subsidence should stop, floods from rainfall should be mitigated, the city should be protected against the sea, and in the long run an additional fresh water source for drinking water

5 new roads because this type of challenge is rare in the world and unknown yet in Indonesia. The complexity of integrated coastal development in a fast urbanizing delta asks for an approach that can strike a balance between traditional hierarchy and innovative networking. The following principles have been formulated: The Government will be leading, meaning that it will set the strategic direction, determine the plan, provide the spatial conditions, the regulatory framework, and make the upfront investments. The government considers a leading role for its State Owned Enterprises in the implementation of the program. The private sector as well as international investment and knowledge will be attracted. The key institutions will be a professional Program Management Unit on the one hand, and an NCICD Development Company on the other hand. The concept and underlying business case is currently under development. In its implementation the program will follow a Lifecycle approach: the program benefits will be assessed and monitored over the entire life-cycle of the assets. That means that Asset Management principles and strategies will be integrated in the designs. Last but not least a business approach will be followed: The program management must become a reliable partner for private parties. A straight-forward regulatory framework and tailor made procedures will be put in place. 5

The following principles have been formulated: The Government will be leading, meaning that it will set the strategic direction, determine the plan, provide the spatial conditions, the regulatory

6 Dear distinguished guests, ladies and gentlemen, During the current week our Indonesian delegation will not only dwell on these fair grounds. With support from the Netherlands Government, and in the framework of our cooperative relationship, a full week program was prepared for us. We will be able to meet and have discussions with the best of international scientists and companies, and see some of the best flood management infrastructure. We are looking forward to interact with other delegations, draw lessons and to develop new insights and knowledge for our densely populated delta areas. In combining the best of world wide water management knowledge in complex and urbanized deltas, I am assured that we can develop new knowledge, approaches, instruments and forms of cooperation in addressing this huge challenge, in which we can also find mutual benefits. Thank you for your kind attention. Amsterdam, 4 November 2013 Deputy Minister for Infrastructure and Region Development Coordinating Ministry for Economic Affairs Republic of Indonesia Luky Eko Wuryanto 6

We will be able to meet and have discussions with the best of international scientists and companies, and see some of the best flood management infrastructure.

Cooperation assessment São Paulo and the Netherlands

Cooperation assessment São Paulo and the Netherlands Second Brazilian Dutch Dialogues, São Paulo 28-31 August 2011 COLOFON Author Date State and reference : Andrea van der Kerk / Maarten Hofstra on behalf