A LEADING CATALYST IN FACILITATING INDONESIA S INFRASTRUCTURE DEVELOPMENT COMPANY PROFILE PT SARANA MULTI INFRASTRUKTUR (PERSERO) January 2016
Agenda 1 Company Profile of PT SMI (Persero) 2 Highlight 3 Roadmap to Become Indonesia Development Bank 2
PT SMI as a Catalyst in Accelerating Infrastructure Development Status PT Sarana Multi Infrastruktur (Persero) ( PT SMI ) was established in 2009 as a State-Owned Enterprise under the Minister of Finance Regulation No. 100/PMK.010/2009 on Infrastructure Financing Companies Duties PT SMI carries the duty of supporting the Government s infrastructure development agenda for Indonesia through partnerships with private and/or multilateral financial institutions in Public-Private Partnership (PPP) projects. As such, PT SMI can serve as a catalyst in accelerating infrastructure development in Indonesia. Ownership 100% owned by the Government of Indonesia Vision Mission To serve as catalyst in accelerating national infrastructure development 1. To become a strategic partner that delivers value added contributions to Indonesia s infrastructure development 2. To develop flexible financing products 3. To offer service excellence backed with good corporate governance 3
Sharia Conventional Our Business Model Sources of Funds PT SMI Business Pillars Sectoral Focus Capital Injection from GOI Capital Market (Bonds, Notes) FINANCING & INVESTMENT Infrastructure Financing Senior loan (Working Capital, Investment Loan) Complementary perbankan Arranger & Underwriter Standby Lender PPP Geothermal Prject Financing Local Government Financing PIP/RIDF) Electricity Telecommunication Transportation Road and Bridge Drinking Water Oil and Gas CONSULTATION SERVICES Loans and Grants Public Sector Advisory Training & Capacity Building Investment Advisory Financial Advisory Energy Efficiency Irrigation Rolling Stock of Trains PROJECT DEVELOPMENT Securitization Development Facility (PDF) PPP PDF & Donor Funds Management Renewable Energy (Geothermal Exploration) TA & Donor Funds Management Municipal s Waste Management Sharia Capital Market FINANCING Hospital Correctional Infrastructure Education Infrastructure BPJS, Sharia Insurance Hajj Funds Ijarah Muntahia Bittamlik (IMBT) Murabahah Musyarakah Mutanaqisah (MMQ) Mudharabah Muqayyadah on Balance Sheet (MMOB) Region Infrastructure Market Tourism Infrastructure Syirkah Funds Sovereign Wealth Fund CONSULTATION SERVICES Investment Advisory Financial Advisory Social Infrastructure In the development stage 4
Financial Performance of PT SMI for the year 2009-2016 Financial Statements Opinion Soundness Level Corporate Rating Total Revenue (USD Million) 2011 (Audited) 2012 (Audited) 2013 (Audited) 2014 (Audited) 2015 (Audited) 2016 Fair Without Exception Fair Without Exception Fair Without Exception Fair Without Exception Fair Without Exception AA AA AAA AAA AAA - AA/Stable (Fitch Ratings) AA+/Stable (Fitch Ratings) 2,339 AA+/Stable (Pefindo & Fitch) Net Income (USD Million) AA+/Stable (Pefindo & Fitch) - AAA/Stable (Pefindo)** 1,245 +64,2% +55,0% 73 82 194 226 424 598 744 58 41 97 107 207 245 305 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited Total Assets (USD Billion) 44,365 Total Equities (USD Billion) 30,878 +70,4% 32,714 +61,9% 25,432 1,063 2,120 2,213 5,132 7,088 9,169 1,057 2,098 2,195 4,310 4,545 4,785 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited 2009 2010 2011 2012 2013 2014 2015 2016 Unaudited *In 2015, the government injected Rp20,3 Trillion State Capital Ownership (PMN) to PT SMI (Rp 18.3 trillion came from the transfer of assets from Government Investment Center (PIP)) ** In March 2016, Pefindo increased the corporate rating of PT SMI to be AAA 5
Execution of Mandate as Catalyst of Infrastructure Development Financing and Investment as of 31 January 2017 Multiplier Effect PT SMI s Mandate Long-term financing Innovative Financing Product Flexible Financing Scheme Large Multiplier effect Competitive interest rate Long-term and Flexible Scheme PT PLN (Ex-PIP) 17.91% Financing Sectors Electricity 14.45% Road 44.46% Transportation 8.84% Mix Oil and Gas 6.97% Irrigation 3.44% Telecommunication 2.86% Clean Water 0.90% Social (Hospital) 0.17% Total Cost IDR 186.5 Trilion Multiplier Effect 4.1 times Maturity Grace Period Up to 25 Years Up to 15 Tahun Example: Toll Road Financing of Palembang - Indralaya Sumatera 25.12% Jawa 44.96% Kalimantan 9.80% Sulawesi 9.04% Bali Nusa Tenggara 5.60% Papua Maluku 5.47% 6
Commitment and Outstanding Diversification of Financing Activities as of 31 January 2017 *Including loan to PLN & Local Government, excluding IIF Financed Cost Outstanding Commitment 44,896 44,539 89,673 0 186,495 in IDR billion 30,442 23,004 32,199 49,226 17,083 1,196 2,222 3,087 4,477 4,262 5,577 38,428 9,167 2012 2013 2014 2015 2016 31-Jan-17 Commitment by Product up to 2013 2014 2015 2016 31-Jan-17 Total Cost Outstanding by Product Promotor Financing 0.52% Subordinated Loan 1.76% Promotor Financing 0.70% Subordinated Loan 1.21% Working Capital Loan 14.95% Equity Investment 0.03% Working Capital Loan 7.53% Equity Investment 0.01% Bridge Loan 19.75% Investment Loan 62.99% Bridge Loan 24.02% Investment Loan 66.54% Investment Loan Bridge Loan Working Capital Loan Subordinated Loan Promoter Financing Equity Investment Investment Loan Working Capital Loan Bridge Loan Promoter Financing Subordinated Loan Equity Investment 62,99% 19,75% 14,95% 1,76% 0,52% 0,03% 66,54% 24,02% 7,53% 1,21% 0,70% 0,01% 7
PT SMI s Portfolio Social Economic Benefit of Financed s As of January 2017 PT SMI s Portfolio s PT SMI s Portfolio Electricity o Generator Capacity 1.504 MW o Lighting to 1,7 million homes or 6.7 million people o o Addition of 80 electric train Increases passengers capacity to 7.3 million per year Urban Transport Clean Water & Irrigation o Clean water production capacity 10.140 liter/second o Clean water contribution 1,5 million homes or 5.8 million people o Watering 96 thousand ha farm area Roads o Road length 1.413 km o Absorbs ~1,2 million of workforce o o o o o o Addition of 31,000 bpd Fuel production 11.8 million m 3 gas per day Increases capacity of 10,000 MT gas supply Gas supply of 21,000 homes Addition of 42 new hospital rooms Facility for 720 new patient/year Oil and Gas Social Infrastructure Air & Sea Port o Servicing 37.5 million passengers per year (Air Transport) o Increases goods flow to 2.26 million TEUs per year (Sea Transport) o o o 52.000 telecommunication towers project Serving 76 million users of telecommunication services in Indonesia 2.700 KM fiber optic network Telecommunica tion 8
PT SMI s Participation in the Priority, National Strategic and RPJMN 2015-2019 s (Perpres No. 3 Tahun 2016, Permenko No.12 Tahun 2015, dan Perpres No. 2 Tahun 2015) Medan Binjai Toll Road Palembang Indralaya Toll Road Lampung City Water Treatment 9 10 11 12 North Sumatera South Sumatera, Bandar Lampung 13 17 21 24 25 26 Palembang Light Rapid Transit (LRT) South Sumatera Central Palapa Ring Broadband Logung Dam Central Java Rehabilitation of Rentang Irrigation Majalengka West Java 9 Jabung Irrigation Lampung Cikopo Palimanan Toll Road West Java 14 18 10 28 1312 2511 5 26 6 22 30 24 23 Entikong Borderline Road West Kalimantan 20 Titab Dam Bali 14 21 1 2 3 7 4 8 17 19 18 27 20 Lolak Dam 15 16 North Sulawesi 19 Bajulmati Dam 20 East Java 16 29 15 20 22 23 Bakauheni Terbanggi Besar Toll Road, Lampung Paselloreng Dam South Sulawesi Palapa Ring Broadband Ciliwung River Normalization Jakarta Citarum Downstream Embankment, West Java 30 Cinere - Jagorawi Toll Road, West Java 27 Palaran Container Port Development and Supporting Facilities East Kalimantan 28 Coal-Fired Power Plant Sumsel 300 MW South Sumatera 29 Coal-Fired Power Plant Kendari 3 Southeast Sulawesi Pejagan Pemalang Toll Road Semarang Solo Toll Road Solo Ngawi Toll Road 1 2 3 4 Cenral Java Cenral Java Cenral & East Java Ngawi Kertosono Toll Road East Java 5 Soekarno-Hatta Airport Development, Banten Financing Equity Development 6 Bogor Toll Ring Road West Java 7 New Jogja International Airport, Jogjakarta Total Commitment Rp15,43 trillion Total Value Rp77,06 triliun 8 Pandaan Malang Toll Road East Java 9
Role of PT SMI in Renewable Energy and Climate Change Program Source of Fund Intermediary Institution (RE and EE)* (RE and EE)* Hydro Power Wind Power Financing (Wind Energy) (CTF & GEF) Senior Loan Mezzanine/ Subordinated Equity Solar Power Geothermal (Climate Change)* (Climate Change)* Others Grant Technical Assistance Appraisal Assessment Biomass Energy Efficiency Climate Change *) In the process RE = Renewable Energy EE = Energy Efficiency 10
Strategic Partnerships with Bilateral/Multilateral Institutions Active In Process Bilateral/Multilateral Institution Scope of Cooperation Bilateral/Multilateral Institution Scope of Cooperation Agence Francaise de Developpement (AFD) Soft Loan + Grant for Energy Efficiency and Renewable Energy World Bank Group RIDF for Municipal Financing Geothermal Fund (GEF and CTF) United Nations Development Programs (UNDP) Asian Development Bank (ADB) Korea Development Bank (KDB) Grant for Wind Power MoU for PPP Transaction Advisory MoU for PPP Exchange of Information Asian Development Bank (ADB) dan German Development Bank (KfW) Japan Bank for International Cooperation (JBIC) SIGAP Program Environmental ESMS TA for Municipal Financing Green Financing Facility Green Climate Fund (GCF) Accredited Entity Cities Development Initiative for Asia (CDIA) Temasek Foundation Capacity Building related with urban development Capacity Building related with PPP Gesellschaft für Internationale Zusammenarbeit (GIZ) Soft Loan + Grant Renewable Energy Energy Efficiency Street Lighting Sustainable Urban Transport (BRT) 11
Advisory and Development Business Pillars Play as an "Enabler in Accelerating Infrastructure Development Advisory Development Scope of Business Helping the project owner in the readiness of viable investment projects Providing consulting services to identify opportunities and challenges of infrastructure projects Providing services to help obtain or to utilize investment funds Opening access to the project market (investors, lenders, etc.) Improving the quality of the investment package of infrastructure projects Coordinating the required expertise in project management (project management office) Enhancing standards of project governance and execution Managing communication and work strategies between stakeholders (stakeholder management) Public Sector Private Sector Development Facility Types of Product Financial Advisory Investment Advisory Capacity Building National/ Priority Regional/ Municipal Renewables Energy 12
PPP PT SMI s Role as the Catalyst in the PPP Preparation through PDF Facility** (As in MoF Decree No.S126 year 2011 jo MoF Rule No. 265 year 2015) Contracting Agency Value Government Support Status Palapa Ring* West Package Middle Package East Package Ministry of Communication and Informatics Rp 1.28 Trillion Rp 1.38 Trillion Rp 5.09 Trillion Govt Guarantee through IIGF Western Package: Financial Close Central Package: Financial Close preparation Eastern Package: PPP final agreement drafting Water Supply System Umbulan East Java Province Rp 2.05 Trillion Viability Gap Funding (VGF) Govt Guarantee through IIGF Signing of Cooperation agreement between Contracting Agency with Private company Water Supply System Lampung City of Bandar Lampung Rp 1.3 Trillion Viability Gap Funding (VGF) Govt Guarantee through IIGF Making the Final Report of Pre-Feasibility Studies Express Train Airport Halim-Soetta Ministry of Transportation Rp 21 Trillion Viability Gap Funding (VGF) Govt Guarantee through IIGF Facility is not followed through due to the change of policy in Contracting Agency Mandate Potentials Bontang Refinery Development of Dr. Pirngadi Regional Public Hospital Development of West Sidoarjo Regional Public Hospital Development of Bogor City Water Supply System (SPAM) * Palapa Ring project uses the Availability Payment scheme as the investment return mechanism ** PDF is the Development Facility 13
Portfolio Distribution Across Indonesia 1 2 3 4 5 6 7 8 9 10 12 13 14 15 16 17 18 67 Medan Binjai Toll Road (Trans Sumatera Toll Road), North Sumatera Biogas Power Plant, Rokan Hulu Riau Palembang Indralaya Toll Road (Trans Sumatera Toll Road), South Sumatera Mini Hydro Power Plant Tara Bintang, North Sumatera Hydro Power Plant Asahan, North Sumatera Mini Hydro Power Plant Tara Bintang, North Sumatera Hydro Power Plant, Humbahas, North Sumatera Mini Hydro Power Plant, South Solok, West Sumatera Power Plant, Musi Banyuasin South Sumatera Mini Hydro Power Plant South Solok, West Sumatera Gas-Fired Power Plant, Tanjung Uncang, Batam Batam Municipal Solid Waste Management Water Treatment & Supply, Cipasauran, Banten Coal-Fired Power Plant, Lobam, Bintan Mini Hydro Power Plant Lebong, Bengkulu Jabung Irrigation, East Lampung Water Supply Jakarta Ciliwung River Normalization, Jakarta Electrical Substation at Kalibaru Port, Tanjung Priok Working Capital for Port Operations, Banten 19 20 21 11 22 23 24 25 26 27 Sosok Tayan & Tanjung Sanggau Road, West Kalimantan 64 Water Treatment & Supply, Tegal Gede, Bekasi Preparation for Water Supply, Karawang, West Java Cikopo-Palimanan Highway West Java Mini Hydro Power Plant Lebak, Banten Panaran Gas-Fired Power Plant, Batam Port Container & Cigading Port, Cilegon Wind Energy Power Plant Sumba and Lebak Mini Hydro Power Plant Banjarnegara, Central Java Tugu Station and Pedestrian Revitalization, Yogyakarta LPG Storage Terminal, Semarang Bajulmati Reservoir, Banyuwangi Oil Refinery Bojonegoro, East Java 29 Mass Rapid Transit, Surabaya Bulk Port, Tuban East Java Floating, Storage Offloading, Madura BTS Tower, Shelter throughout Indonesia Working Capital in Telecommunication 6 1 64 35 34 4 5 65 7 15 8 2 11 13 56 39 41 42 71 70 58 67 10 12 43 38 40 9 72 16 3 45 73 17 33 59 22 46 14 19 47 18 20 36 31 61 57 21 30 60 23 25 29 63 2628 34 37 24 27 32 68 62 44 Electricity Capex s Pejagan Pemalang Toll Road (Trans Java Toll Road), Cenral Java 28 30 31 32 64 Bulk Port, Gresik Umbulan Water Spring, East Java 33 34 Working Capital for Toll Road Improvement, Central & East Java Semarang-Solo Toll Road, Central Java Bendo Reservoir Ponorogo, East Java Case Study of Integrated Railway and Kualanamu Airport, North Sumatera 65 70 35 36 37 38 62 66 Soekarno Hatta Airport Rail Link Gas Pipeline Construction for Households, Tarakan, West Kalimantan Mini Hydro Power Plant Lau Gunung, North Sumatera Palapa Ring Local Government infrastructure development assistance 51 49 50 48 Floating, Storage Offloading Natuna, Riau Islands Ngawi Kertosono Toll Road Solo Ngawi Toll Road Lampeong Waterway North Barito Titab Reservoir Buleleng, Bali Coal-Fired Power Plant Tenayan, Riau projects Financing and Investment 6 projets Development 20 71 70 39 40 41 42 43 72 44 45 46 47 63 Coal Gasification Power Plant, West Kutai Coal-Fired Power Plant Tanah Grogot, East Kalimantan Coal Train, East Kalimantan River Kujang Drainase, Samarinda Container Port Development and Supporting Facilities at Palaran Port, East Kalimantan Penajam Port, East Kalimantan 52 54 53 Investment Planning at Lombok Airport (Development) Mandalika Special Economic Zones, Lombok, West Nusa Tenggara Pumbiu River Bridge, West Sulawesi Gerak Tempe Reservoir Wajo, South Sulawesi Jeneponto-Bantaeng Road, South Sulawesi 55 Financial Advisor for Kertajati Airport Development, West Java Waste to Energy, Nambo, West Java 70 69 59 60 61 68 projets Advisory Services 57 58 48 49 50 51 52 53 54 55 56 Wundulako Irrigation Kolaka, Southeast Sulawesi Power Plant, Kendari Southeast Sulawesi Coal-Fired Power Plant, Gorontalo Marisa Port, Gorontalo Mini Hydro Power Plant, Mobuya, North Sulawesi Irrigation, Sangkup North Sulawesi Arar Port Sorong Bridge Kali Api, Manokwari Bridge Wariki Manokwari Logistic Murphy Semai Oil, Fakfak Dekai-Oksibil Road, Papua Passenger Terminal Supadio Airport Pontianak, West Kalimantan Expansion of Tanjung Priok Port, Jakarta Soekarno-Hatta Airport Development Gas Pipeline Construction, Batam Corporate Business Plan, Banten Leasing Rolling Stock Scheme in corporation with PT KAI, Jakarta Activity Based Costing, Tanjung Perak Surabaya, East Java Lavalette Hospital, Malang East Java 69 Port Development project in Jayapura 73 Lampung City Water Treatment, Bandar Lampung 14
Agenda 1 Company Profile of PT SMI (Persero) 2 Highlight 3 Roadmap to Become Indonesia Development Bank 15
Profile (1) TOLL ROAD AIRPORT Pejagan Pemalang Toll Road Terminal 3 Soekarno-Hatta Airport Cost SMI Portion Central Java Province IDR 2.25 Trilion IDR 700 Billion The toll road is a part of the Trans Java toll road network that is strategic route to reduce congestion and shorten travel time. Loans in the form of working capital for the construction of Section 1 and Section 2 of toll road Pejagan-Pemalang (20.2 km) Cost SMI Portion Cengkareng, Banten Province IDR 18.7 Trillion IDR 500 Billion Increase the capacity of Terminal 3 of Soekarno Hatta Airport to 47 million passengers per year. Increase the total capacity of Soekarno Hatta Airport via passengers using the new airport to 67 million passengers per year. 16
Profile (2) TOLL ROAD TOLL ROAD Medan Binjai Toll Road Cikopo-Palimanan Toll Road Medan Binjai, North Sumatera Cikopo-Palimanan, West Java Cost IDR 1,604 Billion Cost IDR 12.56 Trilion SMI Portion IDR 481 Billion SMI Portion IDR 500 Billion This highway is the first part of Trans Sumatra toll road network that has the strategic value to the transportation of people, goods and services, not only by reducing congestion along these lines, but also shortening the travel time. The toll road is a part of the Trans Java toll road network to reduce congestion and to shorten travel time. 17
Profile (3) OIL AND GAS POWER PLANT Underwater Gas Pipeline Pemping Island Tanjung Uncang Molotabu Coal-Fired Steam Power Plant Batam, Riau Island Province Kampung Bintahale, Gorontalo Province Cost USD 64.5 Million Cost USD 39.8 Million SMI Portion USD 23.5 Million Construction of subsea gas pipeline (including connection line) between the Onshore Receiving Facility (ORF) Pemping Island Tanjung Uncang, Batam Island (13.5 km) SMI Portion USD 28 Million Molotabu power plant is intended to increase the capacity of the electric power supply in Gorontalo and North Sulawesi. This project is one of 31 PLN crash program power plant projects for the year 2013-2020. 18
PT SMI Profile to Support Maritime Industry (4) SEAPORT SEAPORT Cost SMI Portion Container Terminal Palaran Samarinda, East Kalimantan IDR 550 Billion IDR 370 Billion Container port infrastructure development and supporting infrastructure Container Terminal New Priok Tanjung Priok, DKI Jakarta Cost USD 906 Million SMI Portion USD 5 Million (allocation from syndication) Increasing the capacity of unloading Port of Tanjung Priok Port of Gresik Gresik, East Java Cost IDR 205 Billion SMI Portion IDR 163 Billion Bulk port development, logging and multipurpose. Port of Cigading Cigading, Banten Cost - SMI Portion IDR 125 Billion Working capital for Cigading Port 19
PT SMI Profile to Support Renewable Energy (5) FINANCING ADVISORY Mini Hydro Power Plant Wind Power Plant Lebong Utara, Bengkulu Province Lebak, Banten Province Cost IDR 670 Billion Cost IDR 1.6 Trillion SMI Portion IDR 140 Billion Power plant is intended to increase the capacity of the electric power supply in Sumatera. PT SMI was pointed by UNDP to conduct fund management for wind management. The fund allocated is to finance the project preparation starting from developing FS until reaching financial close. The project scope of work: (1) developing Bankable FS, (2) promoting project to the market, (3) arranging to reach financial close 20
Municipal Profile (1) ROAD AND BRIDGE BUS STATION 10 Roads and 1 Bridge in Center Point of Indonesia Dungingi Bus Station (Type C) South Sulawesi Province Gorontalo Province Commitment IDR 500 Billion Commitment IDR 35 Billion Tenor 5 Years Tenor 5 Years Municipal Financing for Roads and Bridges in South Sulawesi Municipal Financing for Dungingi Bus Station Development in Gorontalo City 21
Municipal Profile (2) TRADITIONAL MARKET PUBLIC HOSPITAL Masbagik Traditional Market Karangasem Public Hospital Commitment Tenor East Lombok District, Nusa Tenggara Barat IDR 34.4 Billion 5 Years Municipal Financing for traditional market development in Masbagik, East Lombok District Commitment Tenor Karangasem District, Bali Province IDR 46 Billion 5 Years Municipal Financing for Karangasem Public Hospital Development in Karangasem District 22
A LEADING CATALYST IN FACILITATING INDONESIA S INFRASTRUCTURE DEVELOPMENT THANK YOU Contact Us: PT Sarana Multi Infrastruktur (Persero) Sahid Sudirman Center, 48th Fl. Jl. Jend. Sudirman No. 86, Jakarta 10220 Indonesia (62-21) 8082 5288 (hunting), (62-21) 8082 5288 (fax) Website : www.ptsmi.co.id Email : corporatesecretary@ptsmi.co.id #baktiuntuknegeri