PT Sarana Multi Infrastruktur Profile 2016 ( English )

A LEADING CATALYST IN FACILITATING INDONESIA’S INFRASTRUCTURE DEVELOPMENT

COMPANY PROFILE

PT SARANA MULTI INFRASTRUKTUR (PERSERO)

February 2016

PT SMI as a Catalyst in Accelerating Infrastructure Development

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Status

Duties

Vision

Mission

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

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.

100% owned by the Government of Indonesia

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 products3. To offer service excellence backed with good corporate

governance

Ownership

Subsidiary of PT SMI Together with Multilateral Development Bank

100%

30.00%

19.99% 19.99% 15.12% 14.90%

Government of Indonesia

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2009 2010 2011 2012 2013 2014 2015

0.112 0.233 0.242

0.446 0.373 0.385

1.820

Total Equities (USD Billion)

2009 2010 2011 2012 2013 2014 2015

0.113 0.236 0.244 0.531 0.582

0.737

2.341 Total Assets (USD Billion)

2009 2010 2011 2012 2013 2014 2015

6.153 4.572

10.741 11.020

16.998 19.668

21.853 Net Income (USD Million)

2009 2010 2011 2012 2013 2014 2015

7.747 9.133

21.372 23.375

34.794

48.051 53.226

Total Revenue (USD Million)

CAGR 66%

CAGR 24%

CAGR 59%

CAGR 38%

Revenue Growth ~ 50%, above the Banking Sector with average of 15-25% Solid Growth in Net Income

Solid Asset Growth In Line With Business Growth Strong Support From Government With Equity Injection*

Robust Financial Performance

*In 2015, the government injected additional paid up capital of Rp20,3 Trillion to PT SMI 4**) 2015 audited financial figures

3 Pillars of Business and Focus Sector of PT SMI

Our Sector FocusElectricity &

Energy EfficiencyRoad & BridgesTransportation

Regional Infrastructure

Prison SchoolHospital

MarketTourism

InfrastructureTelecommunication Irrigation & WaterwayOil & Gas

Waste Water & Waste Management

Train Rolling Stock

Social Infrastructure

Water Supply

Renewable Energy

ADVISORY SERVICES PROJECT DEVELOPMENT

Funding Sources

State Additional Equity Injection Loans and Grants fromDomestic and Foreign

Capital Market(Obligasi, Securities) Securitization

Infrastructure Financingo Senior Loan o Banking Complementary

o Arranger & Underwritero PPP Standby Lender*o Geothermal Financing*

Municipal Financing / Regional Infrastructure Development Fund (RIDF)*

FINANCING

• Mezzanine • Equity

Investment

• Take Out Financing• Promoter Financing• Subordinated Loan

Public Sector Advisoryo Public sector advisoryo Training & Capacity Building

Private Sector Advisoryo Investment Advisoryo Financial Advisoryo Training & Capacity Building

(Commercial)

Project Development Facilities (PDF)

• PPP Showcase Projects• PPP Priority Projects

PDF & Donor Fund Management

Technical Assistance for municipal project

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Financing Performance, 2011 – December 2015Sector Diversification

(USD Million)

Total Project Cost USD 7.7 Billion

*Cumulative position

(USD Million)

USD 1.6 billion ± USD 7.7 billionMultiplier Effect 4.6 times Total Project CostFinancing Commitment

Financing and Investment Business PillarPortfolio as of December 2015

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Road16%

Oil and Gas15%

Electricity15%

Transportation6% Tele-com-

munication3%

Clean Water2%

Irrigation2%

Municipal6%

PT PLN34%

2011 2012 2013 2014 2015 -

200

400

600

800

1,000

1,200

1,400

1,600

1,800

38 87 224

309

1,264

84 161 325

404

1,668

OutstandingCommitment

665

244

2013

1,237

2012

1,304

2011

6,000

5,000

4,000

3,000

2,000

1,000

0Total Project

Cost

7,733

2015

4,283

2014

8,000

7,000

Scope of Business

Advisory Project Development

• 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)

• 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.)

Types of Product

Project Development Facility

National/ Priority

Regional/ Municipal

Renewables Energy

Financial Advisory

Investment Advisory

Capacity Building

Public Sector Private Sector

Advisory and Project Development Business PillarsPlay as an "Enabler“ in Accelerating Infrastructure Development

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Bajulmati Reservoir, Banyuwangi

Batam Municipal Solid Waste Management

Pumbiu River Bridge, West Sulawesi

Soekarno Hatta Airport Rail Link

Water Supply ProjectJakarta

Road Reconstruction ProjectCentral Aceh

Bypass-B Road, Bandar Lampung

Mini Hydro Power Plant, Mobuya, North Sulawesi

Coal-Fired Power PlantTanah Grogot, East Kalimantan

Coal Gasification Power Plant, West Kutai

Road Project, Klamono Kambuaya, Sorong

Bridge ProjectKali Api, Manokwari

Dekai-OksibilRoad Project, Papua

Hydro Power PlantAsahan, North Sumatera

Mini Hydro Power Plant Tara Bintang, North Sumatera

Hydro Power Plant, Humbahas, North Sumatera

Mini Hydro Power Plant South Solok, West Sumatera

Irrigation ProjectEmpat Lawang, South Sumatera

Mini Hydro Power PlantLebong, Bengkulu

Mini Hydro Power PlantLebak, Banten

Water Treatment & Supply Project, Bekasi

Cikopo-Palimanan Highway West Java

Gas-Fired Power Plant, Tanjung Uncang, Batam

LPG Storage Terminal, Semarang

Mini Hydro Power Plant Banjarnegara, Central Java

Umbulan Water Spring, East Java

Teraju-Batas Balai Bekuak Road, Sanggau

River Kujang Drainase Project, Samarinda

Lampeong Waterway Project North Barito

Bridge Wariki ProjectManokwari

Tugu Station and Pedestrian Revitalization, Yogyakarta

Fuel Main Transit TerminalTuban, East Java

Irrigation Project, SangkupNorth Sulawesi

Wundulako IrrigationKolaka, Southeast Sulawesi

Jeneponto-Bantaeng Road, South Sulawesi

Gerak Tempe ReservoirWajo, South Sulawesi

Wind Energy Power PlantSumba and Lebak

Oil RefineryBojonegoro, East Java

Coal Train, East Kalimantan

Mini Hydro Power Plant Tara Bintang, North Sumatera

Coal-Fired PowerPlant Project, Gorontalo

Dompak PortTanjung Pinang

Bulk Port, TubanEast Java

Bulk Port, Gresik

Marisa Port, Gorontalo

Floating, Storage Offloading, Madura

Floating, Storage OffloadingNatuna, Riau Islands

Mass Rapid TransitProject, Surabaya

Logistic Murphy Semai Oil, Fakfak

Arar Port ProjectSorong

Container Port Project Development and Supporting Facilities at Palaran Port, East Kalimantan

Logistic Indobarambai Gas Methane, Banjarmasin

• BTS Tower, Shelter throughout Indonesia

• Working Capital in Telecommunication

Sea 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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Bendo ReservoirPonorogo, East Java

Ciliwung River Normalization, Jakarta

Mud Flow Control Project Sidoarjo, East Java

Passenger Terminal Project Supadio AirportPontianak, West Kalimantan56

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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

Bus Rapid Transit (BRT) Trans Pakuan, Bogor, West Java

Activity Based Costing, Tanjung Perak Surabaya, East Java

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6061

Medan – Binjai Toll Road (Trans Sumatera Toll Road), North Sumatera

Pejagan – Pemalang Toll Road (Trans Java Toll Road), Cenral Java

Titab Reservoir ProjectBuleleng, Bali

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Semarang-Solo Toll Road (Bawen), 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 BanyuasinSouth Sumatera

Power Plant, KendariSoutheast 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 HuluRiau

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Case Study of Integrated Railway and Kualanamu Airport, North Sumatera

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Leasing Rolling Stock Scheme in corporation with PT KAI, Jakarta

Mini Hydro Power PlantLau Gunung, North Sumatera65

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Coal-Fired Power PlantTenayan, Riau66Sosok – Tayan & Tanjung –

Sanggau Road, West Kalimantan67

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Portfolio Distribution of PT SMI Across Indonesia

Advisory ServicesProject DevelopmentFinancing and Investment

Electricity Capex projects

Role of PT SMI as Intermediary Institutions to Finance Municipal Government and Renewables Energy Projects

Financing

Grant

• Technical Assistance• Project Appraisal• Project Assessment

(Capital Markets)

(Government of Indonesia)

(Multilateral Organization)

Others

Source of Funds Intermediary Institution Beneficiaries

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Municipal Government

Hydro Power Biomass

Solar Power

Wind Power

Energy Efficiency

Renewables Energy and Climate Change

• Senior Loan• Mezzanine/ Subordinated• Equity

(Green Facility)*

(RE and EE)*

(RE and EE)

(UNDP)

RE = Renewables Energy EE = Energy Efficiency*) In progress of application or acreditation

Our Cooperations with Various Institutions

Project Development

Capital Market Products

CDIA

Capacity building cooperation

IDX

Index SMinfra18 set up that consist of 18 infrastructure stocks

IFCResearch cooperation

of infrastructure financing instrument through long term

source of fund from the capital market

MCA Indonesia

Infrastructure financing program for

Green Prosperity

JBIC

Green infrastructure financing program

Bank of Tokyo Mitsubishi UFJ

Infrastructure projects financing

and advisory cooperation

PPP Development Center – Russia

Capacity building cooperation and

information sharing

Financing structure development for Wind Power Plant Projects

UNDP

Cooperation in infrastructure projects

screening

Sidoarjo Municipal Government and East Kalimantan Provincial

Government

Joint marketing for Advisory Services

Korea DevelopmentBank

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AFDFinancing and

technical assistance cooperation for

renewable energy projects

Capacity Building / Knowledge Sharing - PPP

Advisory Services Development Cooperation

Partnerships in Infrastructure acceleration

development in Batam Bintan Karimun (BBK)

BP Batam

Partnerships in investment appraisal of coal locomotive in

East Kalimantan

Kalimantan Railways Pte.

Technical Assistance for Waste Project

Management in Batam with ADB-Bappenas

TA ADB - Bappenas

Renewable Energy Investment Promotion

Singapore Cooperation Enterprise and Temasek Foundation

Capacity building and project preparation cooperation for PPP projects

http://www.pppcenter.ru/

PT SMI Moving Toward Becoming a Development Bank

SMI before PIP injection

Phase 1: Infrastructure Finance Company Phase 2: Development Bank

PIP balance sheet

Government support

(e.g. regulation, tax

incentives, ...)

SMI (Persero) SMI (Persero) UU LPPI (Lembaga)Now-20171 2017 onwards1

• Additional roles to provide municipal financing (social infrastructure)

• More active in tapping alternative sources of funding and reduce cost of funds to grow size of financing

• Expanded roles to catalyze infrastructure market, e.g. provider of PDF, channeling on multilateral loans

• Requires government support: tax advantaged funding2

• Fast growing infrastructure financier

• Started tapping into alternative funding sources, but still relatively small

• Begin to act as advisor to public and private sector to help project feasibility

• Grow Infrastructure and priority sectors• Support economic and social

development of Indonesia• Unlock market failures preventing

development• Combine world-class project finance with

a focus on economic outcomes• Requires gov. support: bankruptcy

remote, minimum capital guarantee, government guaranteed loan and tax exempt entity status2

1. Timing based on issuance of supporting law 2. Government support must be codified by applicable laws/regulations

Strategic Industry

Maritime Catalyze

infrastructure finance market

One-stop infrastructure

financial advisorAgriculture

Financing of national and regional

infrastructure

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A LEADING CATALYST IN FACILITATING INDONESIA’S INFRASTRUCTURE DEVELOPMENT

THANK YOU FOR YOUR KIND ATTENTIONDisclaimer

All information presented were taken from multiple sources and considered as true by the time they were written to the knowledge of PT Sarana Multi Infrastruktur (Persero). PT Sarana Multi Infrastruktur (Persero) can not be held responsible from any inaccuracy contained in the material.

PT SMI follows all internal and external guidelines and regulations that govern the evaluation process on determining the financing feasibility of an infrastructure project. Every decision to finance or not to finance a project is therefore based on a responsible and thorough due diligence process.

Any complaint in the process of financing irregularities can be submitted to: Ms. Astried SwastikaCorporate Secretary PT SMITel : +62 21 5785 1499Fax : +62 21 5785 4298Email : [email protected]

Public complaints on PT SMI service will be kept strictly confidential and handled by a special committee to ensure that complaints are addressed appropriately.

Project Pejagan–Pemalang Toll Road

Location Central Java Province

Project Cost Rp 2,25 Trilion

SMI Portion Rp 700 Billion

Project Description• 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)

Project Profile (1)TOLL ROAD

Project Terminal 3 Soekarno-Hatta Airport

Location Cengkareng, Banten Province

Project Cost Rp 18,7 Trillion


Project Description 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.

AIRPORT

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Project Medan – Binjai Toll Road

Location Medan – Binjai, North Sumatera

Project Cost Rp 1.604 Billion


Project DescriptionThis 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.

TOLL ROAD

Project Jalan Tol Cikopo-Palimanan

Location Cikopo-Palimanan, West Java

Project Cost Rp 12,56 Trilion


Project DescriptionThe toll road is a part of the Trans Java toll road network to reduce congestion and to shorten travel time.

TOLL ROAD

Project Profile (2)

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Project Underwater Gas Pipeline Pemping Island – Tanjung Uncang

Location Batam, Riau Island Province

Project Cost US$ 64,500,000

SMI Portion US$ 23,500,000

Project DescriptionConstruction of subsea gas pipeline (including connection line) between the Onshore Receiving Facility (ORF) Pemping Island – Tanjung Uncang, Batam Island (13.5 km)

OIL AND GAS

Project Molotabu Coal-Fired Steam Power Plant

Location Kampung Bintahale, Gorontalo Province

Project Cost USD 39,820,885

SMI Portion USD 28,000,000

Project DescriptionMolotabu 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.

POWER PLANT

Project Profile (3)

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Project Container Terminal PalaranLocation Samarinda, East Kalimantan

Project Cost Rp 550 Billion


Project DescriptionContainer port infrastructure development and supporting infrastructure

Project Container Terminal New PriokLocation Tanjung Priok, DKI Jakarta

Project Cost US$ 906,000,000

SMI Portion US$ 5,000,000 (allocation from syndication)

Project DescriptionIncreasing the capacity of unloading Port of Tanjung Priok

PT SMI Project Profile to Support Maritime Industry (4)

Project Port of GresikLocation Gresik, East Java



Project DescriptionBulk port development, logging and multipurpose.

Project Port of CigadingLocation Cigading, Banten

Project Cost -


Project DescriptionWorking capital for Cigading Port

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SEAPORT SEAPORT

Project Wind Power Plant

Location Lebak, Banten Province

Project Cost IDR 1,600,000,000,000

Project DescriptionPT 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

ADVISORY

Project Mini Hydro Power Plant

Location Lebong Utara, Bengkulu Province



Project DescriptionPower plant is intended to increase the capacity of the electric power supply in Sumatera.

FINANCING

PT SMI Project Profile to Support Renewable Energy (5)

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Project 10 Roads and 1 Bridge in Center Point of Indonesia

Location South Sulawesi Province

Commitment Rp 500 Billion

Tenor 5 Years

Interest Rate 7.75%

Project DescriptionMunicipal Financing for Roads and Bridges in South Sulawesi

ROAD AND BRIDGE BUS STATION

Municipal Project Profile (1)

Project Dungingi Bus Station (Type C)

Location Gorontalo Province


Tenor 5 Years

Interest Rate 7.75%

Project DescriptionMunicipal Financing for Dungingi Bus Station Development in Gorontalo City

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Project Masbagik Traditional Market

Location East Lombok District, Nusa Tenggara Barat

Commitment Rp 34.4 Billion

Tenor 5 Years

Interest Rate 7.75%

Project DescriptionMunicipal Financing for traditional market development in Masbagik, East Lombok District

TRADITIONAL MARKET PUBLIC HOSPITAL

Municipal Project Profile (2)

Project Karangasem Public Hospital

Location Karangasem District, Bali Province


Tenor 5 Years

Interest Rate 7.75%

Project DescriptionMunicipal Financing for Karangasem Public Hospital Development in Karangasem District

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PT Sarana Multi Infrastruktur Profile 2016 ( English )

Economy & Finance

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