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Joint Press Release
on
the First Steering Committee of
the Metropolitan Priority Areas for Investment and Industry

March 17, 2011

Japanese

  1. The First Steering Committee of the Metropolitan Priority Areas for Investment and Industry (MPAs) was held in Jakarta, Indonesia on March 17, 2011, pursuant to the Memorandum of Cooperation for Establishing MPAs (the MOC)*. The establishment of MPA in the Jabodetabek** area ("the Jabodetabek MPA") is an essential part of Masterplan for Acceleration and Expansion of Indonesian Economic Development 2011 – 2025 that is currently being intensely discussed with the private sector and regional governments.
  2. For the Indonesian economy, the Jabodetabek metropolitan district plays an important role where more than 10 percent of the Indonesian population live. It is also where 60 percent of national export originates and is the location where 80 percent of economic decisions are made. Recognizing its vital role, the availability of an efficient and modern infrastructure has become imperative and developed to become the principle objective of the Jabodetabek MPA. Based on a series of bilateral discussions held between the Government of Indonesia and the Government of Japan since 2010, both governments have concurred in working hand-in-hand to create the Jabodetabek MPA, as one of the most modernized, economically competitive, and environmentally friendly area for the people and the surrounding community.
  3. The Committee was co-chaired by H.E. Ir. M. Hatta Rajasa, Coordinating Minister for Economic Affairs of Indonesia, and H.E. Ms. Makiko Kikuta, Parliamentary Vice-Minister for Foreign Affairs of Japan.
  4. The co-chairs acknowledged with satisfaction that the first Steering Committee was successfully achieved by schedule preset by the MOC and reaffirmed their commitment to having the MPA established in the Jabodetabek area by 2020. The co-chairs also welcomed the participation of the wide-rang of stakeholders of MPAs involved in the Committee from both sides.
  5. The Committee endorsed the list of potential fast-track projects for the Jabodetabek MPA (Annex I [PDF]), and reconfirmed that both sides would cooperate closely, in order to start the construction work of these projects by the end of 2013. In this connection, both sides opined that the Second Steering Committee should monitor the progress of each fast-track project and discuss ways to facilitate the implementation.
  6. The Committee concurred with the implementation program on the Masterplan Study on the Jabodetabek MPA (Annex II [PDF]). The Committee welcomed the commencement of the Masterplan study starting in May 2011, for completion and approval reached by the end of the second quarter of 2012. The Committee also confirmed that the first Technical Committee of MPAs would be held immediately after the inception of the Masterplan study.
  7. The Committee approved the Terms of Reference of the High Level Consultation for Investment Promotion (Annex III [PDF]). The Committee confirmed that the first High Level Consultation would be held in Jakarta by the end of March 2011.
  8. The Japanese side reported the progress of its contribution to the MPA in the form of grant assistance to perform the detailed design of Reconstruction of East Pump Station of Pluit that has been extended in January this year and Japan's intention to provide Japanese ODA loan to the engineering service of the Indramayu Coal-fired Power Plant Project. The Japanese side also reported that the Masterplan of the Jakarta Metropolitan International Ports supported by Japan was expected to be finalized in March 2011 and expressed its intention to conduct a feasibility study of a new international port. The Indonesian side highly valued the Japanese contribution and welcomed the progress of the MPA-related projects.
  9. The Committee tentatively decided to hold the Second Committee Meeting at a venue convenient for both sides in the third quarter of 2011.

* The "Memorandum of Cooperation between the Ministry of Foreign Affairs, the Ministry of Economy, Trade and Industry, and the Ministry of Land, Infrastructure, Transport and Tourism of Japan and the Coordinating Ministry for Economic Affairs, the Ministry of Foreign Affairs, and the National Development Planning Agency of the Republic of Indonesia on the Cooperation for Establishing Metropolitan Priority Areas for Investment and Industry" was signed in Bali, Indonesia on December 10, 2010.

** The metropolitan "Jabodetabek" includes the cities of Jakarta, Bogor, Depok, Tangerang and Bekasi.

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