INDONESIA TRANSPORTATION INVESTMENT PROJECT

SEOUL 20 – 21 SEPTEMBER 2017

Transport Cooperation Bureau

Ministry of Transportation Republic of Indonesia

KUALA TANJUNG INTERNATIONAL HUB PORT

Project Details

Project Cost Duration Project Implementation Agency

2.8 Billion USD 40– 55 Years Ministry Of Transportation Republic of Indonesia

Project Returns Gearing Contact Person

IRR > 14 % Equity 30 % Susanty Pertiwi

NPV 4 Million USD Debt 70 % +628129486011

Summary of Projects

Large international multi – cargo Port Hub is proposed by the Indonesian Government, at Kuala Tanjung Location, the port will serve as domestic and international trade service as well as international transshipment, beside serving direct trade demand the port will be integrated with 3000 Ha industrial estate with possible expansion to 5000 Ha. Kuala Tanjung International Hub Port Will Support Sei Mangke SEZ and will Operate Harmonically with Port of Belawan

Intended Procurement Method • Preliminary approval has been given by the Minister to Assigned the project to State Owned Enterprise (PT Pelindo I) on which PT Pelindo I Will Develop B2B Scheme , for port activities and Industrial area

• Constructions and Operation & Maintenance of Port and Industrial estate using B2B Scheme with the Assigned SOE

Kuala Tanjung International Hub Port

Project Details (Conts)

Project Background

Competitive Advantage

• Significant and Growing Captive Market • Site on The Malacca Strait – the nexus of trade between South East

Asia and Europe / Middle East • Key Import / Export gate way for the Sumatra Economic Corridor • Relative Good Access to Deep Water

Scope of Overall Project • Terminal Operator (Joint With PT Pelindo I) • Port Construction (contractor) • Industrial tenant

Proposed Structure • BOT or Business – to Business (B2B) model with Pelindo I Company • Private Sector takes demand risk, but whether the project is BOT or

B2B is depended on decision on the Minister

Kuala Tanjung International Hub Port

Development Plan

Traffic Projection and Preliminary Adjustment

Base Case Include trade volume that result from no container from aluminium excluding transhipment Optimistic Case Including Transhipment

BITUNG INTERNATIONAL HUB PORT

Project Details

Project Cost Duration Project Implementation Agency

454.14 Million USD 50 – 70 Years Ministry Of Transportation Republic of Indonesia

Summary of Projects

Existing Bitung Port is located in Bitung City, North Sulawesi The Container terminal have dock area of 591 meters, CY of 5,5 Hectares, 4 unit Container crane (CC) and 8 Units of Tyred Gantry (RTG) Bitung Port was chosen as an International Hub Port in the Eastern Regional of Indonesia. The extision of Bitung Port will be develop in long term at Bitung Special Economic Zone (SEZ) area and Lembeh Island

Preliminary approval has been given by the Minister to procure the project as a PPP (Build – Operate – Transfer). The funding structure and Implementation arrangement will be Finalized with the completion of feasibility study / Outline Business Case on December 2017

Project Background

Competitive Advantage • Closed To Indonesia Archipelagic Sea Lane And World Trade Route (Eastern Part)

• Natural Port With Adequate Depth (Capable to handle ULCC) • Potential to Be a center of Economic for Eastern part of Indonesia • Adequate Land for Port Development and Industrial Areas

Bitung International Hub Port

Low Case

Bitung International Hub Port Project Details (Cons)

Project Background

Scope of Overall Project • Phase I Development of Bitung Port at the existing location, for the capacity of 1.500.000 TEUs from 2015 until 2023

• Phase II Development of Bitung Port at the Special Economic Territory location, for the capacity of 600.000 TEUs from 2023 until 2034

• Phase III Development of Bitung Port at Lembeh location, for the capacity of 300.000 TEUs from 2023 to 2034

Proposed Structure Phase I was contracted to the State-Owned Port Operator Pelindo IV, Build – Operate – Transfer For phase II and Phase III, where it is Purpose that the private sector shall take traffic / Revenue Risk

Existing Facility

Development Plan

Existing Development Plan (Phase I)

Development Plan at the Special Economic Territory location (Phase 2)

Development Plan at Lembeh location (Phase 3)

PORT OF MALOY

Project Details

Project Cost Duration Project Implementation Agency

642 Million USD 50 – 70 Years Ministry Of Transportation Republic of Indonesia

Summary of Projects

• The Port of KEK Maloy is a port located in the province of East Kalimantan, in the district / city of East Kutai. • The project involve the expansion of 120 HA of port area and 557 HA of Industrial Area

Intended Procurement Method MOT intends to have a competitive bidding for a supported-BOT for this package.

Project Background

Attractiveness • Lies on the path of the Indonesian Archipelagic Sea Lane • In the center of the world's future economy • In the interconnection lines between Kalimantan and Sulawesi, or

representing the trans-Kalimantan regional and trans-ferry crossing routes on Tarakan - Toli Toli and Balikpapan - Mamuju routes.

Port of Maloy

Project Details (Conts)

Project Background

Scope of Overall Project Outline Business Case will Conduct at 2018

Proposed Structure • BOT or Business – to Business (B2B) model with Port Entity • Private Sector takes demand risk,

Port of Maloy

DEVELOPMENT PLAN

NORTH BALI INTERNATIONAL AIRPORT (NBIA)

Project Details

Project Cost Duration Project Implementation Agency

2.104 Billion USD 50 Years Ministry Of Transportation Republic of Indonesia

Summary of Projects

Finance, design and construct the project, as well as Operations & Maintenance, NBIA will be located in North Bali near Kubutambahan Area to support the over capacity of existing airport of Denpasar

Intended Procurement Method While there were two unsolicited proposal along with the location selection, MOT has not yet decided on where the New Bali Airport will be located, the location of the Airport will be finalize in end of 2017 the outcome will determined whether the NBIA project will be Solicited or Unsolicited

Project Background

Competitive Advantage • To ease the growing congestion at the current airport • To boost the tourism in North Bali • The development will feature two runway • A train line will link the two airport of Denpasar and North Bali

NBIA

NBIA

Project Details (Cons)

Project Background

Scope of Overall Project • Outline Business Case along with location selection will finalize at the end of 2017

Proposed Structure Build – Operate –Transfer, where it is Purpose that the private sector shall take traffic / Revenue Risk

Further Consideration

MAKASSAR – PARE PARE RAILWAY

Parepare

Barru

Pangkep

Maros

Makassar

Project Details

Project Cost Duration Project Implementation Agency

OBC Result OBC Result Ministry Of Transportation Republic of Indonesia

Summary of Projects

Makassar Pare – Pare project are part of Trans Sulawesi Railway Network that has a total of 144 KM track long which divided into five segment, Barru – Makassar Segment (the last segment), which have 62,95 KM length of track will use PPP as funding scheme, this segment will serve as public railway

Intended Procurement Method PPP (Build – Operate – Transfer). The funding structure and Implementation arrangement will be Finalized with the completion of feasibility study / Outline Business Case on 2018

Project Background

Competitive advantage • Economic center in south Sulawesi • Near to Steam Power Plan in Barru • Near to Cement Factory (Fajar Group, Tonasa, Bosowa, Maros) • Near to New Port of Garongkong

Scope of Overall Project • Railway station • Civil, Track and Bridge • Signal & Communication

Makassar – Pare Pare Railway

5

7

8 5. Pabrik Semen CONCH, Barru

- Panjang Lintasan: 1,5 KM

- Anggaran : 67 M

- Kapasitas Produksi :2,2 Jt Ton/Th

7. Pabrik Semen TONASA, Pangkep

- Panjang Lintasan: 7 KM

- Anggaran : 310 M

- Kapasitas Produksi : 8 Jt Ton/Thn

8. Pabrik Semen BOSOWA, Maros

- Panjang Lintasan: 3,5 KM

- Anggaran : 150 M

- Kapasitas Produksi : 4,2 Jt Ton/Thn

MAKASSAR – PARE PARE ECONOMIC CENTER

1

2

3 4

4. Pabrik Semen Fajar Group, Barru

- Kapasitas Produksi : 3,1 Juta Ton/Thn

- Nilai Investasi : 7 T

1 Pantai Kupa, Kab Barru

Pengunjung : 400.000 orang/Thn

3. PLTU Barru

- Kapasitas 2x50 MW

- Kebutuhan batubara 500.000 ton/th

2. Budidaya Ekspor Perikanan

- Kepiting Soka : 2,5 ton/th

- Udang Windu : 2,2 jt ton/th

- Udang Vaname 560 ton

PELABUHAN

GARONGKONG

6. Pelabuhan Garongkong, Barru

- Panjang Lintasan: 5 KM

- Anggaran : 180 M

- Sudah masuk anggaran SBSN

9 – KA Bandara

SIMPANG 5 BANDARA

Nilai Investasi KA Bandara : 1370 M

*) Tipe: elevated track

*) Panjang Lintasan : 4,3 KM

6

9

SHIA EXPRESS LINE

SHIA EXPRESS LINE

Project Details

Project Cost Duration Project Implementation Agency

2.104 Billion USD 20 -30 Years Ministry Of Transportation Republic of Indonesia

Project Returns Gearing Contact Person

IRR 9 % Equity 25 % Susanty Pertiwi

NPV 1,7 Billion USD Debt 75 % +628129486011

Summary of Projects

access between SHIA and the city of Jakarta cannot be accommodated in future by road based transport modes alone.On 31 August, 2010, the Vice President of the Republic of Indonesia decided that the Soekarno-Hatta Airport Railway Project (Manggarai – SHIA) would be one of the five show case projects in terms of PPP procurement. PT SMI (PT Sarana Multi Infrastruktur (Persero)), as mandated by a Minister of Finance Decree, is facilitating the preparation and transaction of The Pre-Feasibility Study for Soekarno Hatta International Airport to Manggarai Rail Link PPP Project (“the Project”). The Ministry of Transportation (MOT) acts as the PJPK (Penanggung Jawab Proyek Kerjasama) – the Government Contracting Agency (GCA) – and is responsible for the whole preparationand transaction of the Project.

Intended Procurement Method • Preliminary approval has been given by the Minister to procure the project as standard PPP (Public Private Partnership)

SHIA EXPRESS LINE Project Details (Cons)

Project Background

Competitive Advantage • unlikely to attract the 30-40% of mode share comparable with the most successful airport rail links.

• Road vehicle travel times are slower and more unpredictable than most other cities

• Passenger growth at Soekarno-Hatta International Airport is expected to be robust

• There is a masterplan to refurbish the existing airport facilities and construct new passenger and cargo terminals,including possible future construction of a third runway

Scope of Overall Project • undertake the engineering design • construct the civil works for the rail infrastructure (earthworks,

structures, rail track, power supply, signalling, train stations, power station, depot and workshop) • procure the rolling stock • provide substantial private finance for the initial costs • operate and maintain the infrastructure and rolling stock during a

long concession period

Proposed Structure collect fare revenue and other income

Development Plan

There are currently 6 stations proposed for the SHIA Rail Link:

• - Station 1 - SHIA Airport;

• - Station 2 – Pluit;

• - Station 3 - Tanah Abang;

• - Station 4 - Dukuh Atas;

• - Station 5 – Manggarai; and

• - Station 6 – Halim.

Development Plan

Development Plan

Traffic Projection and Preliminary Adjustment

Base case Low Case

High Case