Private & Confidential

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Indonesia Infrastructure Investment Forum Seoul, 20-21 September 2017

Bring Value Towards Indonesia

Infrastructure Development: Case of PT Sarana Multi infrastruktur (Persero)

Presented by Edwin Syahruzad

Director of PT Sarana Multi Infrastruktur (Persero)

Agenda:

It’s the Time to Invest in Indonesia Infrastructure & PT SMI

has Strategic Role in Indonesia Infrastructure Development

Our Selected Case Study in Financing & Preparing

Infrastructure Project in Indonesia

Agenda:

It’s the Time to Invest in Indonesia Infrastructure & PT SMI

has Strategic Role in Indonesia Infrastructure Development

It’s the time to invest infrastructure project in Indonesia “There are many improvements in Indonesia and PT SMI has strategic position in providing long term financing ….”

Viability Gap

Fund (VGF)

Project

Development

Facility (PDF)

Government

Guarantee (Direct by MoF or

through IIGF)

Availability

Payment

Schemes

Financing from

PT SMI

Those financial facilities were fiscal tools in supporting the execution of PPP projects,

indicated by the signing of financial close of the following PPP projects:

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A facility with

contribution to

construction cost to

increase project

financial viability.

Supporting Government

infrastructure

development agenda

through partnerships

with private and/or

multilateral financial

institutions in PPP

projects & Serve as

catalyst in accelerating

Indonesia infrastructure

development

A facility contributing to

assist GCA on PPP

project preparation

(PDF & TA).

Guaranteeing

government’s

contractual obligations

under infrastructure

concession agreements

Scheme in which

concessionaire receive

sum of money

periodically from

government after the

completion an asset.

Ministry of Finance

Regulation on

Availability Payment

has been ratified.

Managing entity:

Ministry of Finance

based on GCA proposal

Government’s

commitment: 49% max

per project

Managing Entity:

KPPIP, PT SMI, and PT

IIF, Ministry of Finance

under its new PP Unit

Managing entity:

Indonesia Infrastructure

Guarantee Fund (IIGF),

Ministry of Finance

Managing entity:

Ministry of Finance

Managing entity:

PT SMI

A facility with

contribution to

construction cost to

increase project

financial viability.

A facility contributing to

assist GCA on PPP

project preparation

(PDF & TA).

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PT Sarana Multi Infrastruktur

(Persero) (“SMI”) was established

on February 26, 2009 with a

purpose to become a catalyst for

accelerating infrastructure

development in Indonesia. SMI is

100% owned by Government of

Indonesia.

Vision:

To serve as catalyst in accelerating

national infrastructure development

Mission:

To become a strategic partner

that delivers value added

contributions to Indonesia’s

infrastructure development

To develop flexible financing

products

To offer service excellence

backed with good corporate

governance

Telecommunication

s

Toll Road & Bridges

Transportation

Water Supply

Electricity

Oil & Gas

Irrigation & Waterway

Waste Management

Tourism

School

Prison

Traditional Market

Hospital

Industrial Estate

…what is PT Sarana Multi Infrastruktur (Persero)? “We are a catalyst in infrastructure development in Indonesia”

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What are our business pillars? “End to end services in infrastructure development in Indonesia”

Financing & Investment Structured Finance &

Advisory

We work as complement of banking

services, which provide alternative

funding option for infrastructure

development

Financing and Investment Product :

Financing Investment/Term Loan

Take Out Financing

Mezzanine Loan

Working Capital Loan

Promoter Financing

Equity Investment

Bridge Loan

Subordinated Loan

Municipal financing product for

regional government

We help our client to develop strong

and impactful investment in

infrastructure through professional

consultancy, advisory and also

financing arrangement

Structured Finance & Advisory

product:

Loan syndication

Advisory/ consultancy for equity

sponsor which consisted of:

o Feasibility & bidding

o Financial structuring

o Financing arrangement

o Financial closing

Project Development

Realization of an infrastructure

establishment needs

comprehensive and rigid

preparation. Through our expertise,

We help you to make it happens

effectively.

Project development product:

Project Development Facilities

Advisory to

Contracting/Tendering

Agencies

Capacity Building

Our Value Proposition are…

State Owned Company (BUMN)

• To be strategic partner of government

as a catalyst in the acceleration of the

infrastructure development in Indonesia

• Strong support from the Government

• Capacity Building

• Project Development Facility

• Technical Assistance

Flexible Funding

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Unique product offerings

• Loan, mezzanine, equity

• Municipal financing

• Conventional and Sharia financing

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• Capital market

• Multilateral/Bilateral

• Lenders

• Paid up capital

Excellent service and

competency

It is not just the services of

the Relationship Manager

that is important but also the

competency and industry

knowledge

Financing and Investment Product Can Be Applied

Both in Conventional and Sharia Principle

• Investment Loan

• Take-Out

Financing

• Promoter

Financing

• Working Capital

Loan

• Bridging Financing

• Sharia Financing

20-30%

Equity

Equity

Subordinated Loan

Mezzanine

Convertibles Qu

as

i-E

qu

ity

Long-Term

(> 5 years)

Short-term

(1-5 years)

Based on Project Financing Structure Based on Project Financing Tenor

Financing and

Investment Product

• Investment Loan

• Take-Out Financing

• Promoter Financing

• Subordinated Loan

• Sharia Financing

• Mezzanine

• Equity Investment

Financing Product

• Working Capital Loan

• Bridging Financing

• Cash Deficiency Support

(CDS)

Pro

jec

t F

ina

ncin

g S

tru

ctu

re

70-80%

Debt

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We have flexibility and wide range of Financing and Investment Product

PT SMI’s Portfolio

Electricity o Increase capacity of 1.591 MW

o Provide electricity for 1,7 million

households or 7 million people

Water Supply &

Irrigation

o Increase the capacity of water

supply by 14.140 litre/second

o Provide water supply for 2

million households or 8,1

million people

o Provide water for 185,000ha

paddy field

Road o Increase road extention up to

1.905 km (including toll road)

o Absorb ~1,6 million workers

Transportation o Increase capacity for 37,5

passengers a year (Air

Transport)

o Increase the flow of goods up to

2,26 million TEUs a year (Sea

Transport)

PT SMI’s Portfolio

o Provide 80 additional electric

trains

o Increase passenger capacity

to 7,3 million per year

Urban

Transportation

o Increase the production of Oil

and gas up to 31.000

barrels/day and 11,8 million

m3 gas/day

o Increase gas storage up to

10.000 MT

o Provide gas for 21.000 houses

Oil and Gas

o Provide 42 new rooms for

hospitals

o Increase facility for 720 new

patients/year

Social

Infrastructure

o Increase 52,000

telecommunication towers

o Provide 76 million users for

telecommunications service

across Indonesia

o Fiber optic network 2.700 KM

Telecommunic

ation

Portofolio PT SMI

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We are part of government mission in building Indonesia infrastructure

which has strategic impact to social economic benefits

Strategic partnerships with Bilateral/Multilateral Institutions

Bilateral/Multilateral Institution

Agence Francaise de

Developpement (AFD)

Soft Loan + Grant for

Energy Efficiency and

Renewable Energy

Scope of

Cooperation

Asian Development Bank

(ADB)

MoU for PPP

Transaction Advisory

Cities Development Initiative

for Asia (CDIA)

Capacity Building

related with urban

development

Temasek Foundation Capacity Building

related with PPP

Korea Development Bank

(KDB)

MoU for PPP

Exchange of

Information

Scope of

Cooperation

World Bank Group

Asian Infrastructure

Investment Bank (AIIB)

• Geothermal Fund

(GEF and CTF)

• RIDF for Municipal

Financing

Asian Development Bank

(ADB) dan German

Development Bank (KfW)

SIGAP Program

• Environmental

ESMS

• TA for Municipal

Financing

Islamic Development Bank

(IDB)

MoU for Indonesia

Investment Fund and

Cooperation

Green Climate Fund (GCF) PT SMI as

Accredited Entity

Gesellschaft für Internationale

Zusammenarbeit (GIZ)

(Under Discussion)*

Soft Loan + Grant

• Renewable Energy

• Energy Efficiency

Street Lighting

• Sustainable Urban

Transport (BRT)

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Bilateral/Multilateral Institution

*The partnership is under discussion

Korea Development Bank (KDB)

China Development Bank (CDB)

Development Bank of Japan

(DBJ)

Benchmarking Studies

and Information

Sharing

Bajulmati Reservoir,

Banyuwangi

Electric Train Rolling Stock

Project for INKA

Soekarno Hatta Airport Rail

Link

Water Supply Project

Jakarta

Mini Hydro Power Plant,

Mobuya, North Sulawesi

Coal-Fired Power Plant

Tanah Grogot, East Kalimantan

Coal Gasification Power Plant,

West Kutai

Bridge Project

Kali Api, Manokwari

Dekai-Oksibil

Road Project, Papua

Hydro Power Plant

Asahan, North Sumatera

Hydro Power Plant, Humbahas,

North Sumatera

Mini Hydro Power Plant South

Solok, West Sumatera

Mini Hydro Power Plant

Lebong, Bengkulu

Citarum Drainage Project,

Karawang-Bekasi, West Java

Water Treatment & Supply

Project, Tegal Gede, Bekasi

Cikopo-Palimanan Highway

West Java

Gas-Fired Power Plant,

Tanjung Uncang, Batam

Umbulan Water Spring,

East Java

Ngawi – Kertosono Toll Road

River Kujang Drainase

Project, Samarinda

Paselloreng Dam Project,

Wajo, South Sulawesi

Bridge Wariki Project

Manokwari

Tugu Station and Pedestrian

Revitalization, Yogyakarta

Lolak Dam, Bolaang

Mongondow, North Sulawesi

Wundulako Irrigation

Kolaka, Southeast Sulawesi

Jeneponto-Bantaeng Road,

South Sulawesi

Wind Energy Power Plant

Sumba and Lebak

Cinere - Jagorawi

Toll Road, West Java

Coal Train, East

Kalimantan

Coal-Fired Power

Plant Project, Gorontalo

Bulk Port, Tuban

East Java

Bulk Port, Gresik

East Java

Marisa Port,

Gorontalo Floating, Storage

Offloading, Madura

Floating, Storage Offloading

Natuna, Riau Islands

Mass Rapid Transit

Project, Surabaya

Logistic Murphy Semai Oil,

Fakfak

Arar Port Project

Sorong

Container Port Project Development

and Supporting Facilities at Palaran

Port, East Kalimantan

Solo – Ngawi Toll Road

• BTS Tower, Shelter

throughout Indonesia

• Working Capital in

Telecommunication

Port Container & Cigading

Port, Cilegon

Mini Hydro Power Plant, South

Solok, West Sumatera

Investment Planning Project at

Lombok Airport (Development)

Panaran Gas-Fired Power

Plant, Batam

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31 Passenger Terminal Project

Supadio Airport

Pontianak, West Kalimantan

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Expansion Project of Tanjung Priok

Port, Jakarta

57 Soekarno-Hatta Airport

Development

Gas Pipeline Construction,

Batam

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Electrical Substation at

Kalibaru Port, Tanjung Priok

Corporate Business Plan, Banten

Activity Based Costing, Tanjung

Perak Surabaya, East Java

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Medan – Binjai Toll Road

(Trans Sumatera Toll Road),

North Sumatera

Pejagan – Pemalang Toll

Road (Trans Java Toll

Road), Cenral Java

Titab Reservoir Project

Buleleng, Bali 62

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Semarang-Solo Toll Road,

Central Java

Working Capital for Toll Road

Improvement, Central & East Java

Financial Advisor for Kertajati

Airport Development, West Java

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Working Capital for Port

Operations, Banten

Power Plant, Musi Banyuasin

South Sumatera

Power Plant, Kendari

Southeast Sulawesi

Palapa Ring Project

Waste to Energy Project,

Nambo, West Java

Mandalika Special Economic

Zones, Lombok, West Nusa

Tenggara

Project Preparation for Water

Supply Project, Karawang,

West Java

Biogas Power Plant, Rokan Hulu

Riau

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Case Study of Integrated

Railway and Kualanamu

Airport, North Sumatera 64

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Leasing Rolling Stock Scheme in

corporation with PT KAI, Jakarta

Mini Hydro Power Plant

Lau Gunung, North Sumatera 65

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Coal-Fired Power Plant

Tenayan, Riau 66

Sosok – Tayan & Tanjung –

Sanggau Road, West Kalimantan

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Our portfolio distribution across Indonesia

Electricity Capex

Projects

Lavalette Hospital, Malang

East Java 68

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Local Government

infrastructure

development

assistance

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projects | Advisory Services projects | Financing and Investment 20 projects | Project Development 5 70

Palembang – Indralaya Toll

Road (Trans Sumatera Toll

Road), South Sumatera

Coal-Fired Power Plant,

Lobam, Bintan

Jabung Irrigation Project,

East Lampung

Water Treatment & Supply,

Cipasauran, Banten

Gas Pipeline Construction for

Households, Tarakan,

West Kalimantan

34 Penajam Port Project,

East Kalimantan 71

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72 Lampung City Water Treatment

Project, Bandar Lampung

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Entikong Borderline Road,

West Kalimantan

Marunda Port Project

West Java

Palaran Port Project,

Samarinda, East Kalimantan

Jasamarga Pandaan

Malang Toll Road 73

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projects | Equity 2

New Jogja International Airport

Jogjakarta

Bakauheni – Terbanggi Besar

(Trans Sumatera Toll Road),

Lampung

Bogor Toll Ring Road

West Java

Palembang Light Rapid

Transit (LRT) Project

South Sumatera

Garongkong Port

South Sulawesi

Central Palapa Ring

Project

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Gas-Fired Power Plant

Megang, South Sumatera

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Coal-Fired Power Plant Sumsel 300 MW

South Sumatera

Rentang Irrigation

Majalengka, West Java

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Rotiklot Dam, Belu

NTT Waskita Toll Road

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Agenda:

Our Selected Case Study in Financing & Preparing

Infrastructure Project in Indonesia

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Project Palembang-Indralaya Toll Road

Location South Sumatera

Project Value IDR 3.3 trillion

SMI Portion IDR 250 billion (Cash Deficiency

Support)

Project Description

Palembang – Simpang Indralaya Toll Road (±21,93 km

in length) located in South Sumatera is part of Trans

Sumatera network that has strategic value for

transportation, human, products and services activities.

This will help to reduce congestion along these lines

and shorten the travel time.

*CDS is one of the innovative solutions to tackle low traffic volume during ramp-up period

Maturity

a) Tranche A : 25 years (15-year grace

period)

b) Tranche B : 15 years (5-year grace

period)

c) Tranche C : 25 years (15-year grace

period)

Notes

*) Tranche B will be a sell down portion

**) Tranche C is Standby Facility in the form

of Cash Deficiency Support

Investment

Needed for

Palembang-

Indralaya Toll

Road IDR 3.3 trillion

State capital injection to

PT Hutama Karya

IDR 2.1 trillion

Facilities

from

PT SMI

IDR 1.24

trillion

Tranche A

IDR 690.34

billion

Tranche B*

IDR 300 billion

Tranche C**

IDR 250 billion

Trans Sumatera – Toll Road “We provide loan and Cash Deficiency Support (CDS) to project”

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Maturity 1 year

Notes

Apart from bridging loan for Trans Sumatera toll road

project, PT Hutama Karya was also provided loan for

land acquisition for toll road

Investment

needed for

Trans

Sumatera

Toll Road PT SMI provides bridging loan to

PT Hutama Karya (Bakauheni-

Terbanggi Besar Segment

Package I)

IDR 1.16 trillion

PT SMI provides bridging

loan to

PT Hutama Karya (4 Trans

Sumatera Toll Road

Segments)

IDR 1.84 trillion

Project Trans Sumatera Toll Road

Location Bandar Lampung – Aceh

Project Cost IDR 4.07 trillion

SMI Portion IDR 3.00 trillion (bridging loan)

Project Description

• Trans Sumatera Toll Road is a Strategic National Project

according to Presidential Regulation No. 3/2016 and

National Priority Project according to Permenko

No.12/2015

• This is a greenfield project with low traffic estimation

*Bridging Loan Product is one of the innovative solution to accelerate land acquisition in toll road projects

Trans Sumatera – Toll Road “We can also provide bridging loan to the project”

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Project Waskita Toll Road

Location Across Indonesia

Project Value IDR 261.8 trillion

SMI Portion IDR 1.5 trillion (12,46% of total equity)

Project Description

PT SMI had distributed early equity financing to PT

Waskita Toll Road amounting IDR 1.5 trillion, or equity

ownership of 12,46%.

No Shareholders Name Equity %

1 PT Waskita Karya 5.642.272 70,93 %

2 PT Taspen 1.321.391 16,61 %

3 PT SMI 991.043 12,46 %

Paid-in Capital 7.954.706 100,00%

Total Shares Portfolio 23.864.118 --

12,46%

16,61% 70,93%

Waskita Toll Road “We can also provide equity financing”

Project Scope of Work

1. Production System Capacity: 4.000 liters/sec

2. Transmission System Transmission Pipe Construction + 92 Km

3. Offtake System Tapping Pipe in 16 points at 5 City/ Regency Region

Partnership Structure

PJPK Government of East Java Province (assigned

PDAB)

Pemda Penerima Air Pasuruan Regency, Pasuruan City, Sidoarjo,

Surabaya, Gresik

Private Involvement BOT production & transmission system

PDAM (Regional Water Utility

Company) Involvement

Distribution system from offtake until household

access

Financial Summary

Capex Estimation + Rp 1,8 Trillion

Construction Period 2 years since partnership agreement effective date

Concession Period 25 years after COD

Project IRR 14 %

Water Tariff Rp2.370/m3 (PPP Company-PDAB)

Rp2.444/m3 (PDAB-PDAM)

Feasibility Support

Amount/VGF proposed

Rp 823 M (49% Construction Cost)

Public Private Partnership (PPP) – Umbulan Project “We involved in PPP Project preparation in Indonesia”

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Partnership Structure

Project Owner Ministry of Communication & Informatics

Private

Involvement

Penyusunan desain teknis & pekerjaan sipil

Penyediaan dan pengoperasian jaringan

tulang punggung

Pendanaan selama masa konsesi

Project Rationality

National target National project that included inRPJMN 2015-

2019

Telecommunicat

ion requirement

National telecommunication backbone

Government

Involvement

Unreachable area is remote area with hard

geographic contour and few potential user

Technical Aspect

Technology Fiber optic connection or microwave if geographic

condition unavailable to accessed

Economics & Financial Summary

Capex Estimation West Package : USD 92.504.000 ≈ Rp 1,28

Trillion

Central Package: USD 99.250.000 ≈ Rp 1,38

Trillion

East Package: Rp 5.127.483.499.200,- *notes: USD 1 ≈ Rp 13.800

Cooperation Period ± 18 months construction and 15 years operation

period for each package

Post Tax WACC

Target

- West & Central Package: 12,5% (DER 80:20,

Equity Return 20%, Senior debt rate 14%)

- East Package: 12,5% (DER 80:20, Equity

Return 25%, Senior debt rate 12,3%)

Project Status (per March 2016)

Availability Payment Approval from Ministry of Financial at 6 October

2015

Guarantee Approval guarantee from PT PII has been

obtained at 20 November 2015

Status Pelelangan - West Package: Signing Cooperation

Agreement at 29 February 2016

- Central Package: Signing Cooperation

Agreement at 4 March 2016

- East Package: Qualification announcement at

14 March 2016

Public Private Partnership (PPP) – Palapa Ring Project “We involved in PPP Project preparation in Indonesia”

PT SARANA MULTI INFRASTRUKTUR (PERSERO)

Sahid Sudirman Center, 48th Floor

Jl. Jenderal Sudirman No. 86

Jakarta 10220, Indonesia

(+62-21) 8082 5288 (hunting)

(+62-21) 8082 5258