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Leading township developer & infrastructure powerhouse PT Kawasan Industri Jababeka Tbk. ("KIJA") is a leading township developer with an established track record in industrybased townships supported by residendal & commercial components... KIJA overview Real Estate PT Kawasan Industri Jababeka Tbk Infrastructure Business segments FY17 Revenue Breakdown (%) (Rp 2,995 billion) Infrastructure & Port, 14% Industrial Power Real Estate & Others, 41% ResidenDal Infrastructure Commercial Dry Port Power Plant, 45% Established in 1989 and became the first publicly listed industrial estate developer in Indonesia in 1994 Kota Jababeka, KIJA's flagship development, is a mature industrybased integrated township in Cikarang with on-site power plant and dry port Pipeline projects: Kendal Industrial Park Park by the Bay in Central Java, tourism-based township in Tanjung Lesung, Banten and a tourism development project in Morotai Large and strategically located land bank of 3,376 hectares as of 31 December 2017 Vision: To Create Modern Self Sustained Ci4es in Every Province in Indonesia and Provide Jobs for Be>er Life FY17 Gross Profit Breakdown (%) (Rp 1,137 billion 38% GPM) Infrastructure & Port, 17% Power Plant, 20% Real Estate & Others, 63% with world class infrastructure to support its development 2
Established track record in large-scale industrial estate + infrastructure More than 25 years track record in industrial township development Selected awards #1 #1 Investor Magazine - 2012 Top 10 Best performing listed companies and Best listed company in property Indonesia Property Watch- 2015 The best township development concept Fortune Indonesia - 2015 Best Company award SWA Magazine - 2016 Top 25 Most Crea`ve Companies in Indonesia 2016 1989 #1 FronDer ConsulDng Group Award 2014 #1 Corporate Image Industrial Estate Jababeka Group established and started development of the industrial estate 1994 IPO on Jakarta and Surabaya Stock Exchange Supply Chain Asia Awards 2014 Asia Logis`cs Centre/Park of the Year 1996 Acquisi`on of Menara Batavia in Jakarta CBD 2001 2003 Inaugura`on of Educa`on Park, including President University #1 Ministry of Industry - 2015 Best Industrial Estate Infrastructure & Facili`es Commenced development of Jababeka CBD 2010 Cikarang Dry Port begins opera`ons 2011 Acquisi`on of 1,500 ha land in Tanjung Lesung, Banten 2013 2014 Bekasi Power Plant commenced opera`ons D Khayangan Senior Living Launched Groundbreaking Kendal Industrial Park Park by the Bay 3
Sizeable land bank in strategic locadons with upside potendal Kota Jababeka Cikarang Master plan: 5,600 hectares 35km east of Jakarta Land Bank: 1,228ha (1)! Fully integrated and matured city development 35km east of Jakarta, 45mins from Jakarta s CBD! Most established industrial area in Greater Jakarta, home to >2,000 local and muldnadonal companies INDONESIA Tanjung Lesung Kota Jababeka Cikarang Kendal, Central Java Semarang Surabaya Karawang Tanjung Lesung Master plan: 1,551 hectares 170km southwest of Jakarta Land Bank: 1,537ha (1)! Designated strategic estate Kendal, Central Java status under presidendal! Designated as a Special Economic Zone Master plan: 2,700 hectares decree 450km east of Jakarta! Strategically located along Located 180km southwest of Jakarta and covers 1,500 Land Bank: 582ha the Jakarta-Semarang-! (1) ha of untouched peninsula facing the Indian Ocean! Surabaya Economic Envisaged to become a first-class integrated resort Offers a deep pool of young Corridor desdnadon for both domesdc and internadonal tourists! and skilled labour at a compeddve cost Note: 1 Land bank as at 31 December 2017 4
Key credit strengths 1 Leading industry-based integrated township developer in Indonesia 2 The ONLY industrial developer with on-site power plant and dry port 3 Stable, USD-denominated recurring income from infrastructure operadons 4 Diversified land bank and projects 5 Clear strategic focus over different Dme frames 6 Robust operadng and financial performance 7 Experienced management team 8 Beneficiary of favourable macro and sector fundamentals 5
1 Kota Jababeka Flagship industry-based integrated township Kota Jababeka is a mature industry-based township strategically located in close proximity to Jakarta CBD, sea port and airport Excellent accessibility and connecdvity with 3 Exit Toll Accesses to Kota Jababeka and development of Major TransportaDon Infrastructure along Jakarta Eastern Corridor to Kota Jababeka. 1.5 hours Proposed MRT StaDon JAKARTA KOTA JABABEKA KM 29 KM 31 6 lane Highway of Jakarta Inner Ring Road 35 KM from Jakarta City Close to InternaDonal Airport & Seaport Accessible by toll road and railway Tranportation infrastructure (Proposed / Under Construction) LRT Track High Speed Train Elevated Toll Road MRT Track Double-double track Railway KM 34 and is home to over 2,000 local and mul4na4onal customers from over 20 countries 6
1 Kota Jababeka Anchored by a blue-chip customer base The pormolio of high quality muldnadonal and domesdc customers at Kota Jababeka is a testament to the township's strategic locadon and superior infrastructure facilides Diverse mix of occupants across sectors (breakdown by number of occupants) As of 31 Dec 2017 Pormolio of high quality customers Electronics, 11% Customer Goods, 7% Others, 44% Machinery, 7% Chemicals, 6% Automotive, 6% Plastics, 5% Tekstile, 2% Metal Fabrication, 4% Foods, 5% Building, 4% 7
1 Jababeka Residence A City for Your World ResidenDal & Commercial Developments Oscar Townhouse Cluster Sudirman Boulevard Commercial Center Mixed-Use Developments KM 29 KM 31 Hollywood JuncDon, Monroe & Elvis Tower KM 34 FaciliDes InternaDonal Hotels Hospitals President University & Reputable Schools Jababeka Golf & Country Club Senior Living D Khayangan Jababeka ConvenDon Center Jababeka Stadium 8
1 Kota Jababeka Enhancing value through Joint Venture projects PT PP ProperD (Persero) Tbk PT Plaza Indonesia Realty Tbk JV 1 51% 49% Riverview Residence JV 1 30% 70% MAYFAIR Estate & Park Land 4 apartment towers strategically located near the toll exit Catering to the lower end of the market Tower 1 Mahakam Tower 90% sold out & topped off, hand-over expected late 2018 Tower 2 Bengawan Tower sol-launched with > 142 units sold 47.4% Mixed use superblock on a 12-ha site right next to the golf course Groundbreaking happened in June 2015; piling completed Launch imminent JV 2 52.6% 70% Mixed use superblock on a 4.6-ha site With 6 apartment towers and Japanese style mall First apartment tower to be launched later this year JV 2 30% To be developed on 4-ha site adjacent to JV 1 Concept to be decided on at a later stage to support / complement JV 1 9
1 Kota Jababeka Kawana Golf Residence Kawana Golf Residence The One & Only Golf Residence in Indonesia Kawana Golf Residence is a JV between KIJA s Jababeka Residence (60%) and Creed Group (40%) from Japan High-end golf view apartment tower with 234 units Total of 95% sold in 2 phases 10
2 Enhancing Kota Jababeka's value proposidon: Jababeka Infrastruktur PT Jababeka Infrastruktur provides top notch to infrastructure and services, including clean water provision, waste water treatment, estate management, and other services such in-house fire brigade, 24 hour security, fiber op`cs, natural gas and others WTP 1 Capacity 400 L/sec WTP 2 Capacity 200 L/sec WWTP 1 Capacity 208 L/sec WWTP 2 Capacity 125 L/sec Waste Water Treatment Plan Water Treatment Plan Telco Natural Gas which meet the interna`onal standards and operate in accordance with environmentally friendly policies in integrated city Kota Jababeka in Cikarang 11 11
2 Enhancing Kota Jababeka's value proposidon: Bekasi Power Plant KIJA is the only industrial estate developer in Indonesia with its own power plant located within its estate Integrated Power GeneraDon & DistribuDon Process Financial Highlights IDR billion 1,600 1,400 1,200 1,000 800 600 400 200-1,062 82 7.7% 1 2 3 1,267 155 100% output to PLN Buy back from PLN (+16% margin) Direct sale to factories (+ margin) 12.2% 1,499 215 14.3% 1,310 164 12.5% 1,360 2013 2014 2015 2016 2017 Revenue Gross Profit Gross Profit Margin 232 PLN Factories 22.0% 17.1% 17.0% 12.0% 7.0% 2.0% -3.0% 130MW gas fired combined cycle plant 20 year 100% off-take agreement from Perusahaan Listrik Negara ( PLN ) Rate per KWH: ~US$11 cents Average gas cost / MMBTU: ~US$9.0 Fuel costs borne by PLN on a pass-through basis Fully contracted gas supply Flexibility to buy back power and resell it at a premium In 2Q 2016, a leakage was found in a boiler of one of the Heat Recovery Steam Generators of the power plant. The repair was successfully completed in mid August 2016. During the repair, power plant operated at about 50% of the usual capacity OperaDonal Highlights DescripDon 2014 2015 2016 2017 Net Dependable Capacity 118.8MW 120MW 120MW 121MW Load Factor 108MW 110MW 93MW 109.1MW Capacity factor 90.01% 90.01% 81.85% 87.95% Equivalent Availability Factor 90.34% 96.39% 82.85% 94.53% Planned Outage Factor 7.88% 3.09% 15.15% 5.00% Equivalent Forced Outage Rate 1.78% 0.52% 2.00% 0.47% Providing a significant marke4ng advantage over its compe4tors as access to reliable electricity supply is one of the primary concerns for industrial clients in Indonesia 12
2 Enhancing Kota Jababeka's value proposidon: Cikarang Dry Port Strategic locadon in the heart of the largest manufacturing zone along the Bekasi-Cikampek industrial corridor Airport JABABEKA MM 2100 EJIP LIPPO 62% 1 HYUNDAI GIIC SURYA CIPTA Enhanced Accessibility with New Toll Gate KM 29 Railway ConnecDvity to the Sea Port KIIC KIM KIKC KBI Cikarang Utama Toll Gate New Toll Gate KM 29 Flyover to Jakarta Highway Exit KM 29 InternaDonal Port Code: IDJBK Surrounded by 11 Industrial Estates and more than 3,000 manufacturing companiee Notes: 1 Estimated % of total throughput at Tanjung Priok Port originating from this area 13
2 Enhancing Kota Jababeka's value proposidon: Cikarang Dry Port FaciliDes & services offered at Cikarang Dry Port New Office & Warehouse New Customs Office To Surabaya Bonded Logistics Center Office: CDP, Quarantine, Banking Gate CFS Reefer Physical Inspection Railway Emplacement Mobile X-Ray To Jakarta / Tanjung Priok 14
2 Enhancing Kota Jababeka's value proposidon: Cikarang Dry Port Smart Port Solution Mobile Application Auto Gate System 15 Next: E - Payment
2 Enhancing Kota Jababeka's value proposidon: Cikarang Dry Port Bonded Logistics Center 16
2 Enhancing Kota Jababeka's value proposidon: Cikarang Dry Port Cikarang Dry Port (CDP) is the first and only integrated customs, quarandne and logisdcs facility in Indonesia Overview Strong momentum in CDP operadons Since 2012, Cikarang Dry Port is an official port of origin and Revenue (IDR billion) des`na`on with interna`onal port code IDJBK now connected with 25 major shipping lines 180 Integrated port and logis`cs facili`es with mul` modal transporta`on services Smart Port Solu`on to streamline the business process Besides export/import, CDP also serves domes`c distribu`on via main railway line that runs from west Java to east Java and also combining it with domes`cs shipping lines services Bonded Logis`cs Centre (FTZ facili`es) for Coxon & minerals/ metals Selected customer & partner profile at Cikarang Dry Port Shipping Lines: Third Party LogisDcs Provider (3PL): Shippers / Consignees: 160 140 120 100 80 60 40 20 - Throughput (TEU) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 62 78 120 151 171 2013 2014 2015 2016 2017 25,808 37,507 50,844 65,250 73,946-2013 2014 2015 2016 2017 allowing customers to more efficiently manage their imports and exports and benefit from cost savings 17
3 Sizeable and stable USD-denominated recurring income base The provision of these infrastructure services has enabled the progressive build out of a significant recurring revenue base Total Revenue & Breakdown Recurring revenue (IDR billion) Recurring (1) Real Estate (2) 2014 41% 2017 59% 2,000 1,800 1,600 1,400 1,200 1,000 1,349 15.5% 1,592 21.6% 1,868 22.2% 1,723 24.6% 1,774 23.6% 30.0% 25.0% 20.0% 15.0% 43% 57% IDR 2,994 billion 800 600 10.0% 400 5.0% 2012 83% 17% IDR 2,799 billion 200 0 2013 2014 2015 2016 2017 Recurring EBITDA Recurring Revenue EBITDA Margin 0.0% IDR 1,401 billion based on USD pricing terms (power & water), further enhancing stability and visibility of cash flows for Jababeka and also providing a natural hedge for its USD-denominated interest expenses Furthermore, US$ 200 million no4onal is hedged by means of call spreads with an average lower strike of 13,021 Rupiah and an average upper strike of 15,997 Rupiah Notes: 1 Recurring revenue/ebitda includes contribu`on from power plant, dry port and service & maintenance fees 2 Comprises real estate, golf and other non-infrastructure segments 18
4 Diversified land bank A geographically diversified land bank allows KIJA to capture different market segments and enhances earnings resilience Diversified by geography, posidoning and segment Land Bank Total (1) : 3,347ha Kota Jababeka Kendal Industrial Park Park by the Bay Tanjung Lesung 1,228ha 582ha 1,537ha PosiDoning Established MNCs and domes`c companies willing to pay a premium for strategic locadon and mature township with top notch infrastructure in place More cost-conscious customers looking for an alternadve to Greater Jakarta industrial estates that sdll provides top notch infrastructure Tourism, leisure and hospitality focused integrated township to tap into entertainment/leisure spending by rising middle class in Indonesia Well diversified across muldple segments (Breakdown of segments by 2016 revenue contribudon) Real Estate (2) : 41% Recurring (3) : 59% 5.0% 5.5% 4.2% 1.6% 2.6% 2.2% 45.4% 13.8% 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 100.0% Land Industrial Commercial Residen`al Tourism Golf Others Power Plant Service & Maintenance in addi4on to benefi4ng from future infrastructure developments across its land bank loca4ons Notes: 1 As per 31 December2017 and excluding Morotai, with 29ha of land bank 2 Comprises real estate, golf and other non-infrastructure segments 3 Recurring revenue includes contribu`on from power plant, dry port and service & maintenance fees 19
4 Diversified projects: Kendal Industrial Park Park by the Bay Kendal Industrial Park Park by the Bay benefits from Sembcorp's experdse in developing and markedng industrial zones across Asia (China, Vietnam, Batam, Bintan, etc) Kendal Industrial Park Park by the Bay is a JV between KIJA and Sembcorp Excellent connecdvity to major infrastructure in Central Java 49% 51% Kendal Port Tanjung Emas Seaport Ahmad Yani Int'l Airport Semarang Total planned area: 2,700 hectares Phase 1: 860 ha (582 hectares as of 31 December 2017) Distance to Kendal Industrial Park Park by the Bay Tanjung Emas InternaDonal Seaport (Indonesia's 3 rd largest) 25 km Ahmad Yani InternaDonal Airport 20 km Semarang (Central Java capital) 21 km and complemented by KIJA s long track record and experience in Indonesia industrial estate developments and infrastructure opera4ons 20
4 Diversified projects: Kendal Industrial Park Park by the Bay Our Kendal Industrial Park Park by the Bay development in Central Java is well-posidoned to benefit from growing demand for reladvely low cost industrial estates with good connecdvity and compeddve labor costs Key Highlights Kendal Industrial Park Park by the Bay offers customers an affordable product with top notch infrastructure Low labour costs in Central Java makes Kendal Industrial Park Park by the Bay par`cularly interes`ng for labor intensive industries Kendal Industrial Park Park by the Bay is situated along the Jakarta-Semarang-Surabaya Economic Corridor Increasing traffic conges`on at Tanjung Priok Port in Jakarta has led to growing interest in alterna`ve sites with good connec`vity via air and sea Diverse mix of occupants across sectors (breakdown by number of occupants) As of 30 September 2017 Others, 9% F&B, 9% Manufacturing, 34% Furniture, 13% Official opening ceremony on November 14 th 2016 by the President of Indonesia, Mr Joko Widodo, and the Prime Minister of Singapore, Mr Lee Hsien Loong Building Materials, 16% Logis`cs, 19% 21
4 Diversified projects: Kendal Industrial Park Park by the Bay 22
4 Diversified projects: Tanjung Lesung Malaysia Tanjung Lesung overview Singapore Indonesia Tanjung Lesung LocaDon Concept ~ 180 km southwest of Jakarta in Banten Tourism-based integrated township apartments, sailing, diving & beach clubs) (hotels, Australia Access Currently accessible by toll road from Jakarta in ~ 3.5 hours Merak SOEKARNO HATTA InternaDonal Airport Krakatau Mountain Anyer Serang Jakarta Tanjung Lesung Panaitan Island Labuan Panimbang Pandeglang Future Toll road Jakarta-Merak Toll Road Ujung Kulon NaDonal Park President Joko Widodo speaking on Tanjung Lesung s designadon as Special Economic Zone for Tourism 23
4 Diversified projects: Tanjung Lesung Strong government support for Tanjung Lesung's development as a tourism zone... FaciliDes and infrastructure at Tanjung Lesung Exis`ng infrastructure includes access roads, a water treatment plant, wastewater treatment plant, electricity supply and telecommunica`on links Visitors currently have access to ~ 300 rooms spread out over two hotels/resorts, a bed and breakfast and several coxages Golf course Other facili`es: restaurant and bar, golf course, a swimming pool, a spa, a beach club, a sailing club, private air strip, school, mosque, residen`al housing units, and a medical clinic Strong government support for development of Tanjung Lesung " One of 10 New Tourism Des`na`ons in Indonesia that the Indonesian Government is promo`ng Aerial view " New toll road from Serang Timur to Panimbang: A consor`um led by PT Wijaya Karya Tbk (Persero) won the tender for this project, land acquisi`on and prepara`ons for construc`on are underway " Tanjung Lesung has been designated as Special Economic Zone for Tourism Villa with private pool at Tanjung Lesung is expected to increase interest from poten4al investors/partners for the project 24
4 Diversified projects: Tanjung Lesung Current property products KALICAA VILLA 25
4 Diversified projects: Morotai Future tourism and logisdcs hub strategically located in the heart of Pacific Asia with natural tropical beauty and World War 2 charm Morotai Strategically located in the Halmahera group of eastern! Indonesia s Maluku islands, in the heart of Pacific Asia in between Asia and Australia 3 hours flight from Singapore and Taipei! Great potendal for tourism, agricultural and fishing! industries and as a logisdcs hub Morotai is a Special Economic Zone for tourism and 1 of 10! new tourism desdnadons promoted by the government Beach view at Morotai! PT Jababeka Morotai has been appointed as the implemendng endty of the Morotai development project by the CoordinaDng Ministry of Economic Affairs of the Republic of Indonesia Evening view at Morotai 26
5 Clear strategic focus KIJA's exisdng pipeline provides visible opportunides over different Dme frames Con`nue to develop and capitalize on Kota Jababeka Township Short Term Further development of Kendal Industrial Park in partnership with Sembcorp in Central Java Medium Term Development of Tanjung Lesung tourism-based township Long Term Vision Replicate Kota Jababeka's industry-based integrated township model throughout Indonesia Build out an infrastructure facility pormolio (power, water, ports, etc.) to support these new townships 27
FY17 Financial Highlights FY16 Description FY17 2,931,015 Revenue 2,994,759 1,101,419 Property 1,100,654 1,723,061 Infrastructure 1,774,046 106,535 Leisure & Hospitality 120,059 1,687,839 Cost of Sales 1,857,862 254,087 Property 440,452 1,371,212 Infrastructure 1,351,046 62,540 Leisure & Hospitality 66,364 1,243,176 Gross Profit 1,136,897 42% Gross Profit Margin 38% 77% Property 60% 20% Infrastructure 24% 41% Leisure & Hospitality 45% 500,911 Operating Expenses 526,885 742,265 Operating Profit 610,012 (229,765) Other Income (Charges) (479,933) (329,646) Financial Charges (393,907) 132,733 Forex Gain (Loss) 66,412 (32,852) Other Income (Charges) (152,438) 512,500 Earning Before Tax 130,079 426,542 Net Profit 149,841 28
1Q18 Financial Highlights 1Q17 Description 1Q18 712,809 Revenue 493,269 194,692 Property 207,706 490,989 Infrastructure 258,672 27,128 Leisure & Hospitality 26,891 464,599 Cost of Sales 206,312 83,521 Property 68,476 365,724 Infrastructure 121,244 15,354 Leisure & Hospitality 16,592 248,210 Gross Profit 286,957 35% Gross Profit Margin 58% 57% Property 67% 26% Infrastructure 53% 43% Leisure & Hospitality 38% 115,091 Operating Expenses 117,225 133,119 Operating Profit 169,732 (72,039) Other Income (Charges) (152,619) (81,600) Financial Charges (85,039) 22,178 Forex Gain (Loss) (69,835) (12,617) Other Income (Charges) 2,255 61,080 Earning Before Tax 17,113 66,850 Net Profit 15,843 29
6 Strong financial performance... Revenue breakdown (IDR billion) Gross profit (IDR billion) and Gross profit margin (%) 3,500 1,600 3,140 2,931 2,995 3,000 2,739 2,799 1,400 1,389 1,200 2,500 1,272 1,208 1,221 1,252 1,243 1,207 1,000 1,171 45% 2,000 1,390 44% 1,137 43% 42% 800 1,500 38% 600 1,000 1,868 1,592 1,723 1,774 400 1,349 500 200-0 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017 Recurring revenue Real estate & other revenue Gross profit Gross profit margin 60% 55% 50% 45% 40% 35% 30% 25% 20% EBITDA (IDR billion) and EBITDA margin (%) 1,400 1,200 1,130 1,167 1,000 1,019 1,025 800 914 40% 600 37% 37% 35% 400 31% 200 0 2013 2014 2015 2016 2017 EBITDA EBITDA margin 60% 55% 50% 45% 40% 35% 30% 25% 20% Net income (IDR billion) 450 400 350 300 250 200 150 100 50 0 101 (1) 399 (1) 331 427 150 2013 2014 2015 2016 2017 (1) (2) (2) Notes: 1 Approximate unrealized foreign exchange loss (non cash) for FY13: IDR 420 billion, FY14: IDR 65 billion, FY15: IDR 156 billion 2 Approximate unrealized foreign exchange gain (non cash) for FY16: IDR 135 billion, FY17: IDR 59 billion and in FY17 addi`onal 1-off expenses of Rp 175bn as a result of redemp`on of 2019 senior notes 30
6 Robust balance sheet posidon Assets and cash (IDR billion) 12,000 10,000 8,255 8,505 8,000 9,741 10,734 11,226 Debt, Equity (IDR billion) and Debt/Equity (x) 5,638 5,900 6,000 4,978 5,000 4,662 4,186 4,041 4,000 3,510 3,565 1.00 0.90 0.80 6,000 4,000 3,000 2,000 2,572 2,705 0.61 0.58 0.71 0.63 0.68 0.70 0.60 2,000 1,000 0.50 0 595 595 827 792 895 2013 2014 2015 2016 2017 0 2013 2014 2015 2016 2017 0.40 Cash and cash equivalents Total assets Total debt Total equity Debt/Equity EBITDA/Interest expense (x) 1 4.5 4.0 3.5 3.8 3.8 3.0 3.4 3.1 2.5 2.0 2.3 1.5 1.0 0.5 0.0 2013 2014 2015 2016 2017 Net debt/ebitda (x) 4.0 3.5 3.0 3.4 2.5 2.7 2.0 2.3 1.5 1.9 1.9 1.0 0.5 0.0 2013 2014 2015 2016 2017 Notes: 1 Includes capitalized interest + Hedging Fees 31
7 Experienced management team Average of more than 25 years of industrial township development experience Board of Commissioners Setyono Djuandi Darmono Bacelius Ruru Hadi Rahardja Gan Michael President Commissioner Vice President Commissioner Commissioner Commissioner (Founder) Independent Commissioner (Founder) Board of Directors Budianto Liman Hyanto Wihadhi Sutedja Sidarta Darmono Tjahjadi Rahardja SeDawan Mardjuki Basuri Tjahaja Purnama President Director Director Director Director Director Director 32
8 Favourable macro and sector fundamentals Strong real GDP growth outlook (%) 7.0 6.2 6.0 6.0 5.6 5.0 4.9 5.0 5.1 5.2 5.1 5.0 5.0 4.0 3.0 2.0 1.0 ConDnued growth in direct investments both FDI and domesdc (IDR trn) 700 600 500 400 300 200 100 613 546 262 463 216 398 180 313 156 251 128 92 76 693 0.0 2011 2012 2013 2014 2015 2016 2017E 2018F 2019F 2020F 0 2011 2012 2013 2014 2015 2016 2017 Source: Sta`s`cs Indonesia, EIU April 2018 Source: BKPM FDI Domes`c Direct Investment Total Sizeable domesdc market size world's 4 th largest populadon Greater Jakarta average industrial land prices (USD/sqm) 1,600 1,400 1,200 1,372 1,339 250 200 159 174 169 187 190 1,000 800 600 400 200 327 261 208 197 191 165 147 129 128 105 105 96 93 83 81 81 81 69 66 65 59 57 57 53 51 50 49 46 150 100 50 56 62 81 114 118 - China India US Indonesia Brazil Pakistan Nigeria Bangladesh Russian Mexico Japan Ethiopia Philippines Vietnam Egypt Germany Congo Iran Turkey Thailand UK France Italy Tanzania South Africa Myanmar Korea Kenya Colombia Spain 0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: EIU 2017 Es`mated Popula`on Data as of April 2018 Source: Colliers Indonesia Interna`onal research Q4 2017 33
8 Favourable macro and sector fundamentals Government Budget on Infrastructure Spend in Indonesia (IDRtrn) Government inidadves to sdmulate industry 387 410 290 317 209 178 139 2014 2015 2016 2017 2018 Budget Actual FDI in Infrastructure-related Sectors in Indonesia (USDbn) 12,000 10,000 9,320 9,637 10,298 11,291 10,742 8,818 9,015 8,000 6,000 5,819 1 Upgrading of Infrastructure 2 Capital spending on ailing infrastructure network gained trac`on from late 2015 Upgrades to ports, roads, toll roads and power plants Jakarta airport railway Trans-Sumatera toll road New Jakarta container terminal (New Priok) New Terminal 3 at Jakarta airport Equity injec`ons into infrastructure-related State Owned Enterprises ( SOEs ) Further streamlining and improvements to the land acquisi`on process cri`cal for infrastructure development and a bigger budget allocated to the new land acquisi`on agency Improvement in investment climate via cu{ng red tape and easing bureaucracy Restric`ons on foreign par`cipa`on in several logis`cs related sectors have been loosened 4,000 2,000 0 2010 2011 2012 2013 2014 2015 2016 2017 DeregulaDon of Investment and Tax IncenDves Licenses have already been granted to operate bonded logis`cs centre Secured funding from interna`onal development agencies Mining Electricity, Gas & Water Supply Transport, Storage & Communica`on Construc`on Introduced many regulatory reforms to create a more conducive environment for private sector par`cipa`on in infrastructure Source: PWC: Indonesian Infrastructure Report ; Ministry of Finance; APBN 2018; BKPM 34
Thank You www.jababeka.com 35