Efficient facilitation of major infrastructure projects
An Australia-Indonesia Centre Strategic Research Project
Indonesia is the largest of the ASEAN economies with an impressive political and economic track record over the past 10 years. Its economy is expected to grow five to six per cent in 2014 and 2015 and the country is on target to meet the targets detailed in the Indonesian Economic Development Plan 2011–2025, and its complementary document, the Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MP3EI), whereby Indonesia will become the 12th largest economy in the world, ie: a GDP growth from ~US$1.2 t in 2014 to ~US$3.8t in 2035. The delivery of essential and innovative economic infrastructure, that reliant on significant private sector funding will be essential to achieving these economic aspirations and there is a current backlog of infrastructure projects totally an estimated $41.2 billion delaying growth. Further, available mechanisms to apply the new land laws and processes to gain approval for funding and financing of projects are significantly delaying project implementation. This project seeks to reduce the bottleneck of initiating projects and every year saving in initiating projects will facilitate some $130m productivity growth.
Under the auspice of The Australia-Indonesia Centre, The University of Melbourne in Australia in collaboration with The Universitas Indonesia, Universitas Gadjah Mada and Institut Teknologi Sepuluh Nopember, The University of New South Wales and Monash University are collaboratively researching how to improve port/city interfaces in Indonesia and Australia. The research team have been investigating ports in Surabaya, Jakarta, Palu and Melbourne and have established a number of key differences, synergies and opportunities between the ports.
In particular, this strategic research project aims to investigate the following:
- Ways to overcoming delays in the major infrastructure project initiation
- Enhance project decision making for the selection and evaluation of projects in Australia and Indonesia and improve overall efficiency in the arrangement of project finance, project governance and selection of appropriate procurement strategies
- Increase the return provided by investment in infrastructure via:
- Refined evaluation and capturing of the benefits and value delivered by specific infrastructure investments
- Reduce waste and inefficiencies in the supply chain for infrastructure through evaluation and optimisation of current processes
- Integration of asset recycling and whole of life options as a mechanism for reducing the capital cost of new and enhanced infrastructure services.
University of Melbourne
- Prof Colin Duffield, Professor
- Dr Felix Kin Peng Hui, Senior Lecturer
- Dr Sally Wilson, Research Fellow
- Ms Haya Al-Daglas, PhD candidate
Dr Sari Wahyuni (Co-lead)
Universitas Gadjah Madah
Prof Dr Ir Danang Parikesit
Prof Sigit Priyanto
Prof Graeme Hodge
University of New South Wales
Prof Emeritus John Black