KARAWANG INTERNATIONAL AIRPORT PROJECT

Mercedes Dela Cruz

Napapet Pibulsonggram

Oo Kyaw Maung

Teck Chi Wong

Lazuardi FN

M. Aprimadya

Project Flight

Context and

Objectives

Governance and Power

Stakeholders

Strategies Integrity

Context & Objectives Where

Located in the middle of Asia-Pacific region, Indonesia has potential to become main hub for air transportation for the region and global.

It is inevitably that Jakarta and surrounding areas (Bogor, Depok, Tangerang and Bekasi) or Greater Jakarta needs a new airport, New Jakarta International Airport or Karawang International Airport (KIA) to serve increasing demand for air transportation and aiming on becoming global hub.Karawang is chosen because it is located only 60 km from Jakarta and connected with Greater Jakarta with existing highway and railway. There are plans to add new highway and railway to KIA in order to meet increasing demand upon airport completion

Context & Objectives Why here?

Increasing people using airplane as transportation mode causes Soekarno Hatta International Airport (SHIA) of Jakarta reached its capacity of 25 million passengers/year and the airport is now overcapacity by serving approximately 60 million passengers/year.

SHIA is among ten busiest airport in the world. With only two run ways, the airport serves 1200 flights/day with 72 flight/minute (there are more than 1 flight in/out from SHIA in less than a second)

Context & Objectives ‘Why needed?’

To boost its economic growth, Indonesia needs to increase its involvement on global production chain. Hence Indonesia needs to increase its connectivity to the rest of the world by having an airport that can serve as regional and global hub.

Objectives of KIA project is to become national and global hub offering wider connectivity for domestic and international route whereas at the same time release tension on SHIA and its surrounding areas due to overcapacity.

With eco-city concept, it is hoped that KIA will be a national project that creates sustainable jobs and remain environmental friendly on development stages and on operational period. The airport is projected to be the first ‘aerotropolis’ in Indonesia.Upon completion of three stages of development in 2030, KIA in its ultimate phase will accommodate 90 million passengers/year. With such enormous activities involved, KIA is hoped to stimulate economic activity within and in surrounding areas thus lead to overall country’s economic growth.

Context & Objectives Goals and

Objectives

Market

Civil Society

State

Forms of Power

Roles

Types of governanc

e

Legitimacy

Goods and

service

Governance and Power - Support from the state, market and civil society are important for the legitimacy and success of the Karawang International Airport. We are building not only an airport, but a city.

Governance & Power

Interlocking Arenas of Power

Types of governance dictate the form of co-operation between the state, market and civil market in building and operating the airport. However, the form of governance is not static and can be changed.

Governance & Power

Interventionist

governance• Air traffic

control• Customs• Immigration

Regulated self-

governance• Airport

construction and operation

• Public transports

Co-operative governance

• Aerotopolis development

• Business and tourism promotion

Private self-governance

• Duty free shops

• Restaurants• Entertainme

nt outlets

• In 2009, the Indonesian government enacted a new aviation law, which allowed greater private participation in airports.

• Under that law, foreigner may own and operate an airport as joint venture with a local partner through a local company with maximum 49% foreign ownerships.

• The involvement of the state or state-owned enterprises as shareholder is no longer required.

• Form of governance for airport operation changed from interventionist governance to regulated self-governance

The initial momentum of such big project like airport usually come from the government, but as the project moving phase to phase, it will involve more and more players and require different types of power for its success. The same also applied to legitimacy. The initial basis of legitimacy normally come from the rules of government, however when the project advances, much of it’s legitimacy would have to be based on the beliefs and consent of the stakeholders, including industries and civil society.

Contractual

powerAirport

construction

Mall management

Shops leasing

Consensual

powerRelocation

Environmental impact

Local community

development

Governance & Power

Coercive power

Land acquiring

Airport Security

Landing rights

Beliefs•Belief that the airport project would bring development to national and local economy•Belief that locals can benefit from the project

Consent•Consensus with local government and residents

•Consensus with aviation industry

•Consensus with business community at large

Rules• Law No. 1/2009

on Aviation• Blueprint of

national transportation

• Regional spatial plan

State State, Market and Civil Society

Form

of

Pow

er

Leg

itim

acy

Providing all the goods and services for everyone’s convenience..

Governance & Power

Public GoodsProvision of free access to

airport facilities for the passengers and employees

convenience.

Providing all the goods and services for everyone’s convenience..

Governance & Power

Toll and Private Goods

In partnership with the Private Sectors to provide safe and efficient airport

facilities for domestic and international travels.

Governance & Power

Provider

Producer

Facilitator

Regulator

Owner

Interconnectedness of Different

Roles

The roles of the state, markets and civil

societies are interconnected,

mutually supportive, as well as multi-

dimensional

State

Civil Societ

yMarke

t

• State (Airport Facilities)

• Market (Aircrafts)• Civil Societies (Information booths on Tourisms & Environment)

Owner

• State (Infrastructures)

• Market (Shops, Hotels)

• Civil Societies (Tours Services)

Producer

• State ( Free amenities, toilets)

• Markets ( Services, like massage)

• Civil Societies (Services in the Airport prayer rooms)

Provider

• State (Civil Aviation Authority)

• Markets (Mass Transport)

• Civil Societies (Environmental Issues)

Regulator

• State (Airport Security)

• Market (Airports Amenities)

• Civil Societies (Airport Museums & Libraries)

Facilitator

Governance & Power

Stakeholders: Interlocking Actors

State

Civil Socie

ty

Market

• Local Community• Labour Union• Transportation Associations• Environmentalists• NGOs• Media

• Innovation• Transfer

knowledge• Consultation• Preservation• Promotion

• Central Government(Ministry of Transportation, Public Work, Home Affairs, Agriculture, Forestry, Land Spatial)• West Java and Jakarta Province

Government• District Government (Karawang, Bandung)• Air Traffic Control Agency• Int’l Civil Aviation Organisation (UN)• JICA• Planning• Budgeting/ Funding• Regulation• Standardization• Coordinating• Implementing• Monitoring• Evaluating

• Contractors • Investors• International Aviation

Companies• Bus, Train, Highway

Companies• Hotel & Tourism Industries• Food & Retail Industries• ASEAN Markets• Banks

• Constructing• Investment• Services• Production• Marketing• Exports & Imports

Stakeholders

Who

What

Who What

Who

What

Stakeholders: Interlocking Actors Importance and Influence

Importance & Influence:• High => Direct• Some => Indirect

• Local community, environmentalist, media = Direct

• NGOs, Transportation Associations, Labour Unions = Indirect

Importance:• Central, Provincial, District Government =

Great Importance• JICA = Great importance• ATC & ICAO = Some Importance

Influence:• Government & JICA = Great InfluenceEconomic growth, funding, hub, connectivity, job creation, living standard, ease tense of transportation• ATC & ICAO = Some influenceStandarisation of civil aviation safety

Importance & Influence:• High => direct• Some / little => indirect

• Contractors, Investors, Banks = Direct• Hotel, Tourism, Food, Retail, ASEAN

market = Indirect

State

Civil Societ

y

Market

Stakeholders

Stakeholders

Human CapitalSafe access to

facilities for men and women

Economic Empowerment

Improving living standard for men

and women

Voice and RightsBalanced

representation of men and women in aviation industry

Gender-based policies and strategies

Gender Equality

Gender Equality Framework

Occupational categories (type of job)

Non-traditional female positions

Nature of employment (Full/Part-time)

Total (Headcount by gender)

Female workforce participation

Promotion/transfer/termination

Flexible workplace practices (paid maternity)

Workplace Profile

Our Gender

Equality Framewor

k

Embracing gender equality

Mainstreaming the gender dimension in the airport project is an opportunity to implement gender equality in our society and to provide women with greater control over socio-economic resources.

Our aspiration

• Support, educate, promote and communicate in ways to foster gender inclusive environment

• Recruit and open opportunity for gender equality into our business

• Strengthen our attractiveness as a diverse and gender equality workplace

• Develop workforce capacity

Stakeholders - Gender Equality

Stakeholders Civic Engagement Framework

Improving daily life

Partnership

Contributing to the development of the region

Enhancing and creating collective value

Community raising awareness

Responsibility to workforce and society

Reducing socio-economic impact

Promoting outreach and community consultation

Commitment to transparency

Green way, protect environment

AspirationsFocus groups and panels

discussion

Scenario workshops

Participatory budgeting

Regulated advisory structures

Town hall meeting

Regional and local governance

Modes

Our Gender

Equality Framewor

k

Embracing gender equality

Mainstreaming the gender dimension in the airport project is an opportunity to implement gender equality in our society and to provide women with greater control over socio-economic resources.

Our aspiration

• Support, educate, promote and communicate in ways to foster gender inclusive environment

• Recruit and open opportunity for gender equality into our business

• Strengthen our attractiveness as a diverse and gender equality workplace

• Develop workforce capacity

Stakeholders - Gender Equality

Our Gender Equality

Workplace Profile

• Occupational categories (type of job)

• Position category (non-traditional female positions)

• Nature of employment (Full-time/Part-time)

• Total (Headcount by gender)

• Percentage by gender (i.e. female workforce participation)

• Promotion/transfer/termination

• Flexible workplace practices (paid maternity)

(Add Hali’s information!)

Stakeholders - Gender Equality

Our Civic Engagement

(Multi-local and multi-cultural & earn confidence and build

long- term relationships)

Our aspiration

• Improving daily life

• Partnership

• Contributing to the development of the region

• Enhancing and creating collective value

• Community raising awareness (good citizenship in the area)

• Responsibility to workforce and society

• Reducing socio-economic impact

• Promoting outreach and community consultation

• Committing to transparency (including subcontractors)

• Green way (protect environment)

Stakeholders – Civic Engagement

Our Civic Engageme

nt

Our project is committed to making social investments in the Karawang area and its Province. Our goal is to be recognised as an important partner to the community by improving the quality of life for Karawang area and its Province’s residents through expanding opportunities for economic development.

We bring people together to foster effective collective action on issues concerning our project. We also support programs that help contribute to Karawang area and its Province’s social safety net and strengthen civic engagement.

Stakeholders – Civic Engagement

Mode of Civic

Engagement

• Focus groups and panels discussion – environmental and social impact

• Scenario workshops – phases of construction and impact scenarios preparedness toolkits

• Participatory budgeting – phases of construction budgeting

• Regulated advisory structures

• Town hall meeting – listen to civic concerns and suggestions

• Forms of regional and local governance –

Stakeholders – Civic Engagement

Our Civic Engageme

nt – Degree of

Integration

Collaboration – Conflation – Cooperation:

Education

Our project supports education as a key to unlock the potential of the youth and developing their capacity for societal relevance. This is one of the reasons why our project is committed to promoting quality education in partnership with government and other stakeholders.

- Community and provincial scholarship awards

- Library rooms

- Essay competition

Economic Empowerment

- Vocational training and capacity development

- Employment

Stakeholders – Civic Engagement

Strategies Project Phases

Conception

• Logframe matrix

• Force field analysis

• Risk assessment

Design

• International standard aviation system

• Indonesian Cultural Style

Construction

•Main Terminal•Runway•Car parks•Shopping Mall •Hotel

Evaluation

• State• Market• Civil

Society

Legislature

Judiciary

Executive

• Legislative cycle• Budgetary cycle• Electoral cycle• Political cycle• Administrative cycle• Administrative review cycle• Judicial review cycle

Large scale project likes airport require systematic implementation to reduce risks and avoid cost overrun. Therefore, it will usually follow strictly the sequence of conception, design and construction. However, it will also require long term and frequent evaluation and review as the project advances.

PROJECT DESCRIPTION INDICATORS MEANS OF INDICATOR

VERIFICATION

ASSUMPTIONS

Goals: • The development of a new modern airport

and an aero-polis surrounding the location

Indicators: 1. The number of

infrastructure and facilities built inside the airport

2. The number of infrastructure and facilities built outside the airport (aero-polis)

Means of verification:

1. Report - quarterly

2. Consultations – often

3. Monitoring & evaluation- monthly

Assumptions about the likelihood of achieving the goal(s)

(a) High demand for air transportation as Indonesia is one of the member of ASEAN countries, with the ASEAN + 3 and +6

(b) High demand of regional and int’l logistic(c) Enough funding for the project (d) Strong oppositions (negative assumption) but with

mitigation process(e) Local people want better jobs and incomes(f) Having mid-term evaluation to check and measure the

on-going process(g) Strong needs to develop areas surrounding the airport

Intended Outcomes

1. Improved connectivity 2. Economic development3. Creation of jobs

 

Measured outcomes:

1. Distance obstacles are diminished

2. Indonesia become major economy in the world

3. Improved standard of living for local communities

Means of verification:

1. Surveys – often2. Interviews –

often3. Statistics –

quarterly

Assumptions about the link between the intended outcomes and the goal(s)

a) when new airport built, new services improvedb) this project contributes economic growth from

increasing opportunity and productivityc) we have jobs for local and they have better opportunity

for them to get one

Strategies Logical Framework

PROJECT DESCRIPTION INDICATORS MEANS OF INDICATOR

VERIFICATION

ASSUMPTIONS

Intended Outputs

1. Increased number of passengers per year2. Reduced customs clearances 3. Increased GDP growth4. Increased employment for local

communities5. Increased income level in local areas

Measured outputs

1. The number of passengers / day2. The number of flight / hour3. The length of custom clearance4. The comparison of national economic growth prior and after the project5. The increase of employment level6. The increase of income level

Means of verification:

1. Surveys – often2. Interviews –

often3. Statistics -

quarterly

Assumptions about the link between the intended outputs and the intended outcomes

a) Having an international-standard airport attracts people to fly and products to be distributed

b) The internationally-recognized procedure of customs reduce bureaucratic process

c) This airport increase the national revenuesd) The development of airport absorbs many employees from

local people

Intended Year-by-year OutputsYear 1-2 Planning, budgeting, consulting, consensus buildingYear 3-5 ConstructingYear 6 Finalization and promotion(b) Outcomes Year 1-2 The project reach legitimacyYear 3-5 The project succeed to build all infrastructure and facilitiesYear 5 The airport is finalized and opened for public

 

Initiation, implementation, and finalization stages run and finished in appropriate time

 

Means of verification:

1. Report2. Consultations3. Monitoring &

evaluation

Assumptions about:

Stakeholders understand their roleLocal community will support the projectPolitical situation is stableNo problems in funding

Strategies Logical Framework

To be successfully develop the big project,

it is particularly important to understand the nature and types of forces, which will have

direct and indirect impacts on Project and

its each implementation stages of Project circle. Therefore managing to

reduce and avoid any kinds of risks on the

project is critical for the achievement of Project

Driving Forces

Project• Developme

nt• Manageme

nt • Implementati

on

Restraining Forces

• Economic Growth

• Connectivity &

Transportation

Improvement

• Resources

Availability

• Vested Interest

• Social Trends

• Social Attitude

• Social Norms

• Legal

Restraints

• Vested

Interests

Force-Fields Of the Project

Strategies

Identifying and Understanding the

types of Risks and its nature are critical to

avoid any failures, destruction, and

delay of the projects.Therefore risk

assessment is critical for project

achievement within a targeted time

frame

Risks & Impacts Assessment

Natural DisasterStormEarthquake Fire Flood

*Financial Fraud*Breach of Contracts

• Political Unrest• Economic

recession• Corruption• Mismanagemen

t

TerrorismDisturbance of Foreign Government

Severe Impact

Major Impact

Highest Certainty Rar

e

Strategies

Evaluation and Performance ManagementKarawang International Airport always exposed to changes since its planning stage. To ensure the Airport meets the intended objectives and goals in every stage requires sound monitoring and evaluation. Integrity and accountability is needed to ensure the continuity of the project.

Integrity

Planning

• Indicators• Budget

access and approval

• Legal basis• Design and

project approval

Construction

• Indicators• Airport

construction

• Infrastructure construction

• Job creation for people

Operation

• Indicators• Number of

Airlines• Number of

economic activities

• Number of passengers

Why the project

is importa

nt?

Does the project

run accordin

gly?Does the

project feasible

to build?

Should the

project continu

e?

Does the

project meet the

objectives?

Monitoring & Evaluation (M&E)

Our on-going project embraces many types of M&E. The project

has 3 phases: design, construction, and ready to

service. Each phase has to keep ESHIA in check. Each phase has

different outcomes, output, inputs, indicators, stakeholders.

We have to manage the changing dynamic of indicators. PPP and

the Experts from JICA are our M&E partners. The project has to

be efficient and effective.

Different phases need different methods of M & E

• Performance indicators

• Formal surveys

• Rapid appraisal methods

• Participatory methods

• Cost-benefit and cost-effectiveness analyses

• Impact evaluations

Integrity

M&E – Example

Integrity

Integrity Perspective: Accountability, Control, Maturity

• Forms of Accountability and Control

• Project Maturity

Integrity

Future Projections

References

THANK YOU