TOLL ROAD BUSINESS OPPORTUNITY IN INDONESIA Presented by, Abdul Hadi Hs. Director of Business Development ONE DAY SEMINAR INDONESIA : BUSINESS AND INVESTMENT OPPORTUNITIES, MAY 21 ST, 2014
TOLL ROAD DEVELOPMENT OPPORTUNITY Government of Indonesia plans to develop 4.500 Km toll road within 2010-2030; Strait$of$ Malacca$ GREATER JAKARTA & WEST JAVA! Jagorawi: 59.0 km SUMATRA(! Jakarta-Tangerang: 33 km! Ulujami-Pondok Aren: 5.55 km! Jakarta Inner Ring Road: 23.55 km! Prof. Dr. Ir. Sedyatmo: 14.3 km! Jakarta-Cikampek: 83.0 km! JORR: 43 km! Cikampek-Padalarang: 58.5 km! Padalarang-Cileunyi: 64.4 km! Palikanci: 26.3 km! Bogor Outer Ring Road: 11.0 km (1)! Cengkareng-Kunciran: 15.2 km (1)! Kunciran-Serpong: 11.2 km (1)! JORR W2 North: 7.67 km (1) NORTH SUMATERA! Belmera: 42.7 km! Medan - Kualanamu Tebing Tinggi : 62 Km Java$Sea$ $$$$Indian$Ocean$ KALIMANTAN( JAVA$ BALI$ SULAWESI( CENTRAL JAVA! Semarang: 24.75 km! Semarang-Solo: 75.7 km (1) Jasa Marga manages and operates owned 74% market share of toll road in Indonesia. Banda$Sea$ MALUKU( EAST JAVA! Surabaya-Gempol: 49.0 km Timor$Sea$ PAPUA(! Gempol-Pasuruan: 34.15 km (1)! Surabaya-Mojokerto: 36.3 km (1)! Gempol-Pandaan: 13.61 km (1) BALI! Nusa Dua-Ngurah Rai-Benoa: 10 km Notes: (1) New toll roads which either in land acquisition process or in construction process, except for BORR section I (3,8 Km), Semarang-Solo section I (23 Km), JORR W2 North (7,67 Km) and Surabaya-Mojokerto section I (3 Km) which already operates. 1
BUSINESS STRUCTURE OF PT JASA MARGA (Persero) Tbk. Majority Share Holder Toll Road Business Development Related Business Development SUBSIDIARIES 1. PT MSJ 2. PT TJP 3. PT TMJ 4. PT MKC 5. PT MTN 6. PT MNA 7. PT MLJ 8. PT Jasamarga Pandaan Tol 9. PT JBT BRANCHES 1. Cawang Tomang Cengkareng 2. Belmera 3. Jakarta Tangerang 4. Jakarta Cikampek 5. Jakarta Bogor Ciawi 6. Purbaleunyi 7. Semarang 8. Surabaya Gempol 9. Palimanan Kanci SUBSIDIARIES BUSINESS UNITS 1. PT Sarana Marga Utama (Toll Road Maintenance Services) 2. PT Jalantol Lingkarluar Jakarta (Toll Road Operation Services) 3. PT Jasamarga Properti (Property Development Services) 1. Rest Area Management Business Unit (Rest Area Management and Development Services) 2. Jasa Marga Development Centre Unit (HRD Training and Development Services) 2
New Toll Road Investment Progress FINANCIAL PERFORMANCE OF PT JASA MARGA (PERSERO) TBK. Assets Growth USD(Billion( 12.00 1.20 10.00 1.00 0.80 8.00 0.60 6.00 0.40 4.00 0.20 2.00-0.107 0.273 0.446 0.745 1.095 2009 2010 2011 2012 2013 During the last 5 years, the progress of new toll roads investment is dramatically, reflected to the growth of toll road assets specially on subsidiaries USD(Billion( 30.00 3.00 25.00 2.50 20.00 2.00 15.00 1.50 10.00 1.00 0.50 5.00 - CAGR 15,1% $1.617$$ (1.895(( (2.092(( (2.475(( $2.837$$ 2009 2010 2011 2012 2013 The growth of investment progress of new toll roads have significant impact to the growth of company s assets * Compound Annual Growth Rate 3
TOLL ROAD CONCEPT Source of Public Road Network Development Fund Government build the public road network Non Toll Road Toll Road (financially not feasible) Toll Road (financially feasible) Toll Road is return back to the Government in the end of concession period Bridging by Investor & Bank State/Local Budget (APBN / D) Toll road users fund Available Fund Public Taxes Toll Public Source of fund 4
TOLL ROAD CONCEPT REGULATION SCHEME GOVERNMENT of Indonesia The Ministry of State Owned Enterprises 70% Shareholding The Ministry of Public Works Provide concessions and oversee its implementation Indonesia Toll Road Authority Directorate General Of Highway Establishment of Road Network Plan and Technical Spesification Public 30% Shareholding Since 12 Nov 2007 Toll Road Concession Agreement Toll Road Private Investor (38 Investor) Private Toll Road Investors Private Toll Road Investors Toll Road Concession Agreement 5
Cost of Investment & Operation (Cummulative PV) Rp Land Acquisition Construction The beginning of concession period Operational commencement TOLL ROAD INVESTMENT CHARACTERISTICS Scheme of Investment Return Deficit Cash Flow (5-7 years) Payback Period Enjoyment Period Concession Period (35-45 Years) Investor Profit End of concession period O/M Cost Time Toll road is returned back to Government 6
RISK ALLOCATION Land Acquisition Road Network Master Plan Tariff Setting Construction Social/Politic Issues Force Majeure Interest Rate IIGF (Indonesia Infrastructure Guarantee Fund) Traffic Volume O&M Cost Force Majeure 7
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TRANS SUMATERA TOLL ROAD PROJECT MEDAN-BINJAI MEDAN-KUALANAMU-TEBING TINGGI PADANG-SICINCIN PEKANBARU-KANDIS-DUMAI o Trans Sumatera corridor extend from Bakauheni through Banda Aceh, along Sumatera East Coast. o The total length reached 1.980 km o Trans Sumatera connects 7 7 big cities (Natiional activity center), 5 airports, 6 ports and Bandar Lampung Palembang Railways. Kayu Agung-Palembang-Betung 9
MEDAN-KUALANAMU-TEBING TINGGI TOLL ROAD PROJECT 10
MEDAN-BINJAI TOLL ROAD PROJECT Binjai Medan Binjai Medan 11
PEKANBARU-DUMAI TOLL ROAD PROJECT Dumai PEKANBARU 12
PANDAAN-MALANG TOLL ROAD MALANG 24.000 Vehc/day LAWANG PURWODADI INTERCHANGE PURWODADI PANDAAN PAKIS INTERCHANGE LAWANG INTERCHANGE PANDAAN END POINT L = 23.2 Km L = 14.418 Km Elements Characteristics Length 38,7 Km Investment Cost (USD 418 Million) FIRR 16,78% Toll Tariff (Class I, 2017) (USD 0,08) /Km Concession period 35 years Construction period 2 years 13
MANADO-BITUNG TOLL ROAD PROJECT IC BITUNG STA 38+700 IC DANOWUDU STA 28+900 IC SUKUR STA 07+200 ic KAUDITAN STA 19+800 IC AIRMADIDI STA 12+600 SECTION 1 : 13,5 km RR MANADO AIRMADIDI LAND ACQUISITION : 100 % SECTION 2 : 25,5 km AIRMADIDI BITUNG LAND ACQUISITION : 31,3 % 14
CILEUNYI-SUMEDANG-DAWUAN TOLL ROAD PROJECT CILEUNYI4SUMEDANG4DAWUAN$TOLL$ROAD$(60,3$Km)$ 16.921 Vehc/day 16.671 Vehc/day 16.556 Vehc/day 14.749 Vehc/day LAND ACQUSITION (by GOVERNMENT) LAND ACQUSITION (by PRIVATE) Government Portion (29,4 Km) C O N S T R U C T I O N C O S T Private s Portion (30,9 Km) OPERATION (BY PRIVATE ) Length( Elements$ Design Speed( Number of lane( Characteristics$ 60, 3 Km( 80 Km/hr( 2x2 lanes (start), 2x3 lanes (final)( Lane of width( 3,6 m( Outer Shoulder width( 3,0 m( Inner shoulder width( 1,5 m( Median width( 13 m( Elements$ Characteristics$ Construction Cost IDR 5.390 Billion (USD 559,36 Million) Investment Cost IDR 9.258 Billion (USD 960, 77 Million) FIRR 14,18% Concession Period 35 Years Toll Tariff/Km (2017) IDR 800/USD 0,083 Land Acquisition Progress Section I (Cileunyi Tanjungsari) : 37,16%, Section II (Tanjungsari-Sumedang) : 45,28%, Section III (Sumedang Cimalaka) : 0%, Section IV (Cimalaka-Legok) : 0%, Section V (Legok Ujung Jaya) : 0%, Section VI (Ujung Jaya Kertajati) : 0% Total : 21,62% Construction period 2 Years (2014-2016) Operation (year) 2017 Government Support To get FIRR 16% on 2017, it is required IDR 1.261.619 Million (USD 130,91 Million) Government Support, so that the investment cost will be IDR 7.323.928 Million (USD 759,98 Million) 15
PASIR KOJA-SOREANG TOLL ROAD PROJECT 16
BALIKPAPAN-SAMARINDA TOLL ROAD PROJECT KOTA SAMARINDA Paket IV : 16,9 km Paket III : 22,6 km 99,02 km Paket II : 23,0 km SEPAKUTIG A KAB. KUTAI KERTANEGARA Paket I : 25,4 km Paket V : 11,12 km TELUK BALIKPAPAN BALIKPAPAN 17
DAAN MOGOT-CENGKARENG TOLL ROAD PROJECT KETERANGAN : : Railways : Toll Road 18
KALIBARU-KBN MARUNDA TOLL ROAD PROJECT Tanjung Priok Kalibaru-KBN Marunda Toll Road Cibitung-Cilincing Toll Road 19
ATAS LAUT JAKARTA-SURABAYA TOLL ROAD PROJECT PLAN Jakarta-Semarang Section Semarang-Surabaya Section Jkt-Smr = 405 km Smr-Sby = 274 km Jkt-Sby = 679 km +100 km Alt-1 Alt-2 Rencana Jalan Tol Semarang-Surabaya Section 20
POTENTIAL TOLL ROAD FOREIGN PARTNERSHIP POSCO E & C South Korea " MoU has been signed on April 22, 2014. " The first target in partnertship is Manado-Bitung Toll Road and the regional development along the highway corridor. WEST NEXCO LTD. AND JEXWAY LTD. Japan " MoU has been signed on April 22, 2014. " The first target in partnertship is Cibitung-Cikarang Toll Road. CMS Int. Malaysia " MoU has been signed on April 22, 2014. " The additional scope of Cengkareng-Kunciran project (Daan Mogot- Cengkareng). 21
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Information Technology Development in Jasa Marga Toll Roads Strait$of$ Malacca$ GREATER JAKARTA & WEST JAVA SUMATRA( On Going Project by Jasa Marga and Telkom! Jagorawi: 59.0 km! Jakarta-Tangerang: 33 km! Ulujami-Pondok Aren: 5.55 km! Jakarta Inner Ring Road: 23.55 km! Prof. Dr. Ir. Sedyatmo: 14.3 km! Jakarta-Cikampek: 83.0 km! JORR: 43 km! Cikampek-Padalarang: 58.5 km! Padalarang-Cileunyi: 64.4 km! Palikanci: 26.3 km! Bogor Outer Ring Road: 11.0 km (1)! Cengkareng-Kunciran: 15.2 km (1)! Kunciran-Serpong: 11.2 km (1)! JORR W2 North: 7.67 km (1) TOWE R DIGITAL SIGNAG E MANAG E LINE WIFI.ID NORTH SUMATERA! Belmera: 42.7 km! Medan - Kualanamu Tebing Tinggi : 62 Km Java$Sea$ $$$$Indian$Ocean$ KALIMANTAN( JAVA$ BALI$ CENTRAL JAVA! Semarang: 24.75 km! Semarang-Solo: 75.7 km (1) TOLL INFORMATIO N SYSTEM SULAWESI( Jasa Marga manages and operates 573 km toll road and owned 74% market share of toll road in Indonesia. Banda$Sea$ e- MONEY DATA CENTRE MALUKU( EAST JAVA Timor$Sea$ PAPUA(! Surabaya-Gempol: 49.0 km! Gempol-Pasuruan: 34.15 km (1)! Surabaya-Mojokerto: 36.3 km (1)! Gempol-Pandaan: 13.61 km (1) BALI! Nusa Dua-Ngurah Rai-Benoa: 10 km INTERNET/ INDIHOME (BUNDLING POTS, SPEEDY, USEETV) etc 23
Property Development in Jasa Marga Toll Roads 2 locations, + 1000 Ha (Industrial Area) 3 locations, + 105.000 Ha (2 Industrial Area 1 Property Dev.) Jakarta 2 locations + 40 Ha (Rest Areas) + 500 Ha (Mixed Use Area) 24
Potential Business Development in Manado-Bitung Toll Road Manado$ 300 Ha 200 Ha 500 Ha 400 Ha 100 Ha 300 Ha 500 Ha 100 Ha 2000 Ha 100 Ha Ecopark 2000 Ha Bitung$ Manado Bitung Toll Road 39km, Dual Carriageway at grade Toll Road : 1. Ring Road 1 Interchange 2. Sukur Interchange 3. Airmadidi Interchange 4. Kauditan Interchange 5. Danowudu Interchange 6. Bitung Interchange Brantwood$Group$of$Companies$ $27$Jan$2014$ Proposed$Development$:$$ Township$ Township$ Government$ Center$ RecreaPon$Complex$ EducaPon$City$ Industrial$Complex$ Reclaimed$Industrial$$ Complex$ 25 *).$Subject$to$be$validated$in$Feasibility$Study$
Terima Kasih Further Information : Thank You 26