Innovative Financing Schemes for Infrastructure Projects ... · PDF fileA LEADING CATALYST IN...

A LEADING CATALYST IN FACILITATING INDONESIA’S INFRASTRUCTURE DEVELOPMENT

Innovative Financing Schemes

for Infrastructure Projects in

Indonesia

2nd Session-Asia Financial Leadership Program

July 2016

Edwin Syahruzad Director of Financing and Investment

PT Sarana Multi Infrastruktur (Persero)

PT SMI is a State-Owned Enterprise that acts as

a Catalyst in Accelerating Infrastructure Development

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 products

3. To offer service excellence backed with good corporate

governance

Ownership

2

PT SMI Focus Over The Next 5 Years Will Be on Economic

and Social Infrastructure Sectors

Infrastructure is one of

most important sector for

emerging market

Facilitates economic growth

and nation competitiveness

Reduce environmental

footprint and achieve nation

social progress

Significant financing

required in economic and

social infrastructure

Potentially up to 800 Tn IDR

financing gap annually to

meet nation infrastructure

requirement

Complexity in infra

require specialization &

coordination

Potentially many complex

infrastructure issues beyond

financing

1 2 3

Economy

Environment Social

Other successful development bank started by focusing

and prioritizing on infrastructure

4

3

State Additional

Equity Injection

Capital Market

(Bonds,

Securities)

Securitization

Loans and Grants

Sharia BPJS /

Insurance

Sharia Capital

Market

Hajj Fund

Sovereign Wealth

Fund

Sector Focus

Electricity & Energy

Efficiency

Road and

Bridges

Transportation

Irigation

Oil

and Gas

Waste Water &

Waste Management

Train

Rolling Stock

Social Infrastructure

Water

Supply

Renewable

Energy

Funding Sources

Co

nve

nti

on

al

Sh

ari

a

FINANCING &

INVESTMENT

Development Stage

Infrastructure

Financing

Municipal Financing

/ Regional

Infrastructure

Development Fund

(RIDF)

Public Sector

Advisory

Training & Capacity

Building

Investment Advisory

Financial

Advisory

Project

Development

Facilities (PDF)

PDF & Donor Fund

Management

Technical Assistance

& Donor Fund

Management

PPP Project Development

Renewable Energy

Projects

Municipal Project

Ijarah Muntahia

Bittamlik (IMBT)

Murabahah

Musyarakah

Mutanaqisah (MMQ)

Mudharabah

Muqayyadah on

Balance Sheet

(MMOB)

Investment

Advisory

Financial

Advisory

Technical

Assistance

and

Donor Fund

Management

ADVISORY

SERVICES

PROJECT

DEVELOPMENT

• Senior loan

• Banking Complementary

• Arranger & Underwriter

• PPP Standby Lender

• Geothermal Financing

Telecommunication

Regional

Infrastructure

Prison Hospital

Market Tourism

Infrastructure

School

PT SMI Provides Comprehensive Financing Products and

Project Development Service To Become The Enabler of Infrastructure Projects

4

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

5

Municipal Government

Hydro Power Biomass

Solar Power

Wind Power

Energy

Efficiency

and Other

projects

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

Geothermal

Based on Locations

Based on Sectors

Multiplier Effect*

Total Project Cost

IDR119,4 Trillion

(~USD 9.0 Billion)

Multiplier Effect

3.6 times

Involves in Strategic

Project

Project Palembang-Indralaya Highways

Location South Sumatera

Tenor 25 years

Grace Period 15 years

Interest Rate BI rate + 2%

Value Propositions of PT SMI

Long Term Tenor

Competitive Rate

Innovative Product

Flexible Financing Scheme

High Impact of Multiplier effect

*Include Financing Facility to PT PLN and Municipal Government XR 1 USD = IDR13,500

As of 30 June 2016, PT SMI has provided USD 9.0 Billion Financing Facilities

6

PT PLN 26,00%

Road 32,38%

Electricity 15,77%

Oil and Gas 10,66%

Transport-ation

9,66%

Irrigation 1,92%

Telecommunication 2,24%

Clean Water 1,13%

Social (Hospital)

0,24%

Jawa Bali Nusa

Tenggara 45%

Sumatera 26%

Kalimantan 11%

Sulawesi 10%

Papua Maluku 8%

(Rp Miliar) 2011 2012 2013 2014 2015 31 Jun 2016

Assets 2.213 5.132 7.089 9.169 32.714 33.950

Equity 2.196 4.310 4.546 4.786 25.432 26.113

Outstanding 525 1.196 3.087 4.262 17.083 18.966

Loan

Commitment 1.158 2.222 4.477 5.577 23.004 32.607

Total Revenue 194 226 424 598 743 1.155

Net Profit (Loss) 97 107 207 245 305 682

Performance

Rating* AA AA AAA AAA AAA -

Summary of Financial Statement 2011-31 Jun 2016 Opinion: Unqualified Opinion (WTP)

Corporate Rating from PEFINDO : AAA/Stable Public Accountant Opinion : Unqualified Opinion (WTP)

Auditor : Osman Bing Satrio & Eny (Deloitte)

7 *Based on State Owned Enterprises Ministry Category

As a company that is still growing, the Company's outstanding and financing commitments

sustained increases in particular in 2015 up to 2016 YTD

*Accumulative position but not Include Financing Facility to PT PLN and Municipal Government

Over the last 5 years, PT SMI has a very strong Financing Commitment

with a CAGR of 91.8%

8

Total Project Cost Commitment and Outstanding

in Rp (Billion) in Rp (Billion)

18.85717.083

4.2623.0871.196

525

32.535

23.004

5.5774.477

2.2221.158

2012 2011

+91,8%

30-Jun-16 2015 2014 2013

Commitment

Outstanding

22.558

49.226

9.167

17.070

21.359

119.380

s.d. 2012 2013 2014 2015 30-Jun-16 Total

Project Cost

Priority, National Strategic and RPJMN 2015-2019 Projects Financed

by PT SMI

Accumulated as end of 2015 Year 2016 + Pipeline

National Priority

Projects (Permenko No.12/2015)

1 project

Toll Road Trans Sumatera Ruas Medan – Binjai

Total Commitment of IDR481 billion

Total Project Value IDR1,6 trillion

3 projects

o PLTU Mulut Tambang Sumatera Selatan 8

o Toll Road Trans Sumatera Ruas Palembang – Indralaya and

Ruas Bakauheni – Terbanggi Besar.

Total Commitment of IDR6,54 trillion

Total Project Value of IDR39,6 trillion

National Strategic

Projects (PeIDRres

No. 3 tahun 2016)

8 projects

o Toll Road Solo – Ngawi

o Toll Road Ngawi – Kertosono

o Toll Road Medan – Binjai

o Toll Road Pejagan – Pemalang

o Soekarno – Hatta Airport Development

o Titab Water Dam, Bali

o Logung Water Dam, Jawa Tengah

o Bajulmati Water Dam, Jawa Timur



6 projects

o Toll Road Pandaan-Malang

o Toll Road Bogor Ring Road

o Port Pelindo IV

o Toll Road Trans Sumatera Palembang – Indralaya and

Bakauheni – Terbanggi Besar

o Toll Road Trans Jawa Semarang-Solo.

o Waskita Toll Road (12 Segments Toll Road di Jawa) – Equity

Investment*



RPJMN Projects (Perpres

No. 2 tahun 2015)

9 projects

o Toll Road Trans Jawa (Cikopo-Palimanan, Solo-Ngawi,

Ngawi-Kertosono, dan Pejagan-Pemalang)

o Toll Road Trans Sumatera (Medan-Binjai)

o Soekarno – Hatta Airport Capacity Improvement

o Titab Water Dam, Bali

o Logung Water Dam, Jawa Tengah

o Palaran Port, Samarinda



7 projects

o PLTMH (part of 35 GW)

o PLTU 2x15MW Sorong and PLTU 2x7 MW Biak, Papua Barat

o Belawan International Container Terminal (BICT)

o Coal Train Sumatera Selatan

o Toll Road Trans Sumatera Palembang-Indralaya and Bakauheni

– Terbanggi Besar.

o Toll Road Trans Jawa Semarang-Solo


*) excluded in the calculation, because it is already calculated in the previous point 9

Social Economic Benefit of PT SMI Projects

Electricity o Increase the capacity of

1,443.8 MW

o Provide electricity for 1.6

million household or 6.4

million people

Water Supply o Increase the capacity of water

supply by 10.140 litre/second

o Provide water supply for 1,3

million household atau 5,2

million people

Road o Increase road extention up to

1.044 km

o Absorb 900 thousand

workers

Transportation o Increase capacity for 22.5

million passengers a year

(Air Transport)

o Increase the flow of goods up

to 2.26 million TEUs a year

(Sea Transport)

o Increase 44.900

telecommunication towers

o Provide 65.6 million users for

telecommunications service

across Indonesia

Telecommunication

o Provide 42 new room for

hospital

o Increase the facility for 720

new patient/year

Social

Infrastructure

o Increase the capacity of 75,6

million m3 raw water

o Provide water for 7.000ha

paddy field

Irrigation

o Increase the production of Oil

and gas up to 31.000

barrels/day and 140 juta m3

gas/day

o Increase storage up to 10.000

Metric Ton

Oil and Gas

Accumulative Position as of 31 May 2016

10

Mini-Hydro Air Putih

Bengkulu PLN

• SMI and other Lenderd as senior creditor

• SMI as a creditor for subordinated loan

• Tenor : 9 year

Assets

Senior Loan

Equity

Senior Loan

Assets Sub Debt/

Junior Loan

Equity Project Sponsor Project Sponsor

Mini-Hydro Lau Gunung

Sumatera Utara

Type of Financing Structure Case Study: Renewable Energy Projects

PPA

• SMI as a creditor to the project sponsor in the

form of promoter financing facilities.

• Tenor : 1 year

Closing the Gap

PLN

Offtaker

Promotor Financing

11

Several Factors to Consider to Design Sector Strategy

Financial returns

Are the returns (e.g. ROCE)

of the sector attractive

compared to other sectors?

What is the extent which less

financially attractive sectors

can be supported?

Risk to SMI

Does SMI have the expertise

and prior experience of

investing in the sector?

What is the typical risk

profile associated with the

industry?

Strategic importance

Is infrastructure investments

in the sector of strategic

importance to Indonesia?

Is the sector a near to mid

term priority for the

government? (e.g. SMI has

been mandated to support

the sector)

12

Leverage Competencies by Focusing on Financially Attractive

Sectors Where Expertise Has Already Been Built

Sector Indicative financial returns SMI’s exposure today

High returns

• > 20% ROCE & >40% EBIT margin globally

• Similar returns expected in Indonesia

Moderate to high returns

• ~7-8% ROCE & ~15% IRR globally from utilities

• Higher returns expected for merchant power

plants in Indonesia

Moderate returns

• 10-11% ROCE, ~14% EBIT & ~9% TSR globally

• Similar returns likely in Indonesia

Moderate to high returns

• ~16% ROCE & >20% EBIT globally

• Expected to be at least as high in Indonesia given

infrastructure bottlenecks

Toll road

Power

plant

Sea ports

Oil & gas

Moderate to high returns • 15-20% returns globally • Higher returns expected for Telecom towers in

Indonesia

Telecom1

1. Financially attractive assets are telecom towers – however, lower priority for SMI given large ticket size and ability of Telkom / Telekomsel to fund Source: BCG analysis

~13%

(0.6 Tn IDR)

~33%

(1.4 Tn IDR)

~11%

(0.5 Tn IDR)

~16%

(0.7 Tn IDR)

~12%

(0.5 Tn IDR)

13

The Future: Transformation to become 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 funding

• 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 status

Strategic Industry

Maritime

Catalyze

infrastructure finance market

One-stop

infrastructure financial advisor

Agriculture

Financing of

national and regional infrastructure

14

Issues on Infrastructure Financing Development Bank to Provide

Maturity Mismatch for Traditional Banks

Government Financing is not Enough

Deep Expertise is Required

Significant Risk

Better Maturity Mismatch

Create Multiplier by Leveraging Private Funds from Capital Market

Specialized Expertise in Infrastructure

Risk Mitigation and Diversification

Roles of Development Bank in Infrastructure Financing

15

Development Bank will Differentiate from Commercial Banks

Objectives

Funding

sources

Competition

principles

Sector

strategy

Government

support

Development Banks

Balanced objective: economic development

and catalytic role vs. maintaining financial

sustainability

Funded by the government, but also

leveraging private resources and

multilaterals

Primarily play where market is leaving a gap

to avoid crowding out commercial banks

Also include sectors where intervention is

required to address market challenges

Government incentives and support

beyond regulatory framework to deliver on

its objectives

Commercial Banks

Primary objective is to make a profit

Equity funding coming only from private

sector resources (except SOE banks)

Rigorous competition on the basis of equal

conditions to win market share

Free to adapt its strategy by focusing on

the most profitable sectors only

Assurance of a level playing field via

regulatory framework

16

Area Indicator

Development Banks Measure Success Along Four Dimensions

Usage of funds

Implementation

progress

Financial return

& sustainability

Funds disbursement

# of projects

prepared / developed

# of projects funded

Sector allocation

v.s.target

# of jobs created

# of facilities installed

ROA

%NPL

Cost/ income ratio

ROE

Profit

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

% progress of facility

installations

Economic

Impact

✓

17

Four Possible Sources of Funding Available for Development Bank

Potential funding sources for the New

Development Bank

The New

Development

Bank’s

funding

Multilaterals

Foreign commercial

bank loans

Government Capital

Capital Market - Domestic Investor

- International Investor

Descriptions

Low interest loans provided by multilaterals such as

World Bank, ADB, KfW, usually in foreign currency

Foreign-denominated loans (e.g. USD) financed by

non-Indonesian banks

Paid up capital by Government to be leveraged with

other sources of fund

Investments by domestic investors (pension funds

(BPJS, insurance companies and Haj funds) and

foreign investors (pension funds and insurance

companies)

2

3

4

1

18

Lowering Cost of Fund with Government Support

Funding sources Intervention to reduce funding cost Examples

The New

Development

Bank

Government and related

entities/funds

Local bond market/

institutional investors

Multilaterals

Commercial

bank loans

Govt. borrowing on capital markets and

pass through to SMI and/or lending from

other govt entities at preferential rates

Introduce tax exemption, govt guarantee, or

mandatory allocation to increase appetite of

local inst. investors

Introduce direct lending schemes from

multilaterals, where SMI could borrow at

preferential rates based on govt guarantee

provided

No intervention as rates are market-based; but

could increase borrowing from domestic or

international banks

International capital

markets

Attract more international

investors to Indonesia to make the local

bond market more competitive

1

2

3

4

In addition, there could be non-funding support mechanisms, e.g. operational support, regulation, ...

5

19

Maritime

Indirect lending1 via commercial banks and

leasing institutions

Roles

Direct loans/soft loans for large ships

Legend

Indonesia Development Bank (LPPI)

Strategic

Industry

Roles

SME credit rating and industry support center


micro lenders

Roles


micro-lenders

Guarantee crop insurance

Agriculture

Farmer training and farming marketplace

Direct loans/soft loans to large industry

Direct lending Advisory/Capabilities Indirect lending

Infrastructure

Roles

One-stop infrastructure

financial advisor

Financing of

national and regional

infrastructure

Catalyze infrastructure finance

market

20

Several Benefits to Combining Multiple Sectors in One Bank

Benchmarks show development banks

typically manage several sectors...

• Several sectors focus, i.e :

infrastructure, basic inputs

agriculture, environment, etc


infrastructure, industry, and

water conservation, etc


Infrastructure, Manufacturing ,

Trade, etc

• Several sectors focus, i.e:

water, energy, transport, ICT;

also offers municipal financing

... due to benefits in combining multiple

sectors in one bank

Risk pooling amongst sectors

Flexibility to grow/shrink sectors

Easier Inter- sectoral policy synchronization

Sharing of governance structure

Sharing of capabilities (e.g. cost benefit)

Greater career opportunities attracts talent

Less specialization in sector talent

Less ability to ring fence sectors and steer

independently

+

+

+

+

+

+

−

−

Brazil

China

South Korea

South Africa

21

https://upload.wikimedia.org/wikipedia/commons/c/c7/China_Development_Bank(CDB).png

Highly Leverage is Possible, but with Heavy Government Support

4

14

2

0

12.4 X

IIFCL BNDES IDFC DBSA BPMB

Leverage of benchmark development banks (latest annual report)

BNDES an outlier due to

strong government

intervention (e.g. much

larger than other DBs)

• Tax exemption

• Mandatory

allocations by inst

investors

• Direct government

loans at low rates

• Infra bonds tax

exemption

• Less stringent

financial regulations

due to NBFC-IFC

status

• Infra bonds tax

exemption

• Govt loan guarantee

arrangement

• Less stringent financial

regulations due to

NBFC-IFC1 status

• Corporate tax

exemption

• Bond tax

incentive

• Credit

guarantees

Liabilities (Bn USD)

Equity (Bn USD)

423

34

9.7

2.4

5.0

0.9

4.1

1.7

3.6

2.0

• Tax incentive on

govt infra projects

• Govt infra fund to

support FX losses Government

support

1,8x 2,4x 4,0x

5,6x

12,4x

22

THANK YOU FOR YOUR

KIND ATTENTION

Contact Us:

Website : www.ptsmi.co.id

Email : [email protected]

Address: Wisma GKBI Building, 8th Floor,

Jl.Jend.Sudirman, No. 28, Jakarta

10210, Indonesia

Phone : 62-21-57851499

Fax : 62-21-57854298

Project Pejagan–Pemalang Toll Road

Location Central Java Province

Project Cost IDR 2.25 Trilion

SMI Portion IDR 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 IDR 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

24

Project Medan – Binjai Toll Road

Location Medan – Binjai, North Sumatera

Project Cost IDR 1,604 Billion


Project Description

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.

TOLL ROAD

Project Jalan Tol Cikopo-Palimanan

Location Cikopo-Palimanan, West Java

Project Cost IDR 12.56 Trilion


Project Description

The 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)

25

Project Underwater Gas Pipeline Pemping

Island – Tanjung Uncang

Location Batam, Riau Island Province

Project Cost USD 64.5 Million

SMI Portion USD 23.5 Million

Project Description

Construction 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 39.8 Million

SMI Portion USD 28 Million

Project Description

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.

POWER PLANT

Project Profile (3)

26

Project Container Terminal Palaran

Location Samarinda, East Kalimantan

Project Cost IDR 550 Billion


Project Description

Container port infrastructure development and

supporting infrastructure

Project Container Terminal New Priok

Location Tanjung Priok, DKI Jakarta

Project Cost USD 906 Million

SMI Portion USD 5 Million (allocation from syndication)

Project Description

Increasing the capacity of unloading Port of Tanjung Priok

PT SMI Project Profile to Support Maritime Industry (4)

Project Port of Gresik

Location Gresik, East Java



Project Description

Bulk port development, logging and multipurpose.

Project Port of Cigading

Location Cigading, Banten

Project Cost -


Project Description

Working capital for Cigading Port

27

SEAPORT SEAPORT

Project Wind Power Plant

Location Lebak, Banten Province

Project Cost IDR 1.6 Trillion

Project Description

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

ADVISORY

Project Mini Hydro Power Plant

Location Lebong Utara, Bengkulu Province



Project Description

Power plant is intended to increase the capacity of the

electric power supply in Sumatera.

FINANCING

PT SMI Project Profile to Support Renewable Energy (5)

28

Project 10 Roads and 1 Bridge in Center

Point of Indonesia

Location South Sulawesi Province

Commitment IDR 500 Billion

Tenor 5 Years

Interest Rate 7.75%

Project Description

Municipal 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 Description

Municipal Financing for Dungingi Bus Station

Development in Gorontalo City

29

Project Masbagik Traditional Market

Location East Lombok District, Nusa Tenggara

Barat

Commitment IDR 34.4 Billion

Tenor 5 Years

Interest Rate 7.75%

Project Description

Municipal 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 Description

Municipal Financing for Karangasem Public Hospital

Development in Karangasem District

30

Co-Financing/

Investing “PT SMI and Investor

Co-Finance Projects”

Investor PT SMI

Projects

Loan

repayment

/ dividend

Loan

repayment

/ dividend

Loan /

equity

Co-

financing

Joint Venture “PT SMI and Investor

establish a Joint Venture

Company”

Investor PT SMI

Projects

JV

Company

Equity

Dividend Dividend

Loan

repayment

/ dividend

Loan /

equity

Bilateral Loan “Investor give loans to PT

SMI, PT SMI plays as a local

Partners’

Projects

PT SMI

Loan

repayment

/ dividend

Loan /

equity

Investor

Loan

repayment

Loan

channeling

31

Partnership Schemes: Financing Activity

Government Contracting

Agency

Project Company

Investor

EPC O&M Operator

Offtaker

Greenfield Projects Scheme (Investor and PT SMI put Equity together)

Brownfield Projects Scheme (Investor and PT SMI put Equity, PT SMI also monitor the Project)

1

1 Put Initial Equity as an Equity Investor

Government Contracting

Agency

Project Company

PT SMI

EPC O&M Operator

Offtaker

1

2

1

2

Investor Put an Equity

PT SMI Put Equity as well as Monitor the Project

Existing Equity Investor

Investor

Shareholders’ Agreement

PT SMI

32

Partnership Schemes: Investment/Co-Investment Activity

Private Placement for Bonds or MTN

Direct Investment Scheme Through Private Equity/RDPT

Institutional Investors

Private Equity Fund/Infra Fund

(RDPT)

Underlying Asset in Infrastructure Project

Bonds/ MTN

Project Monitoring

Return

Unit Subscription/Redemption Institutional

Investors PT SMI

Direct Investment (Co-Investment)

Infrastructure Projects (Basic Infra, Social Infra, Renewables Energy, ect)

Equity Dividend

Dividend Equity Project Monitoring

PT SMI

Institutional Investors

Repayment Loans

Bonds/ MTN

Infrastructure Projects (Basic Infra, Social Infra, Renewables Energy, ect)

Repayment (Interest+ Principal)

Equity

The Asset Quality data will be maintained by PT SMI for Project Monitoring purpose,

Since it will increase the Investors’ Appetite to invest in Infrastructure Sector

Investment Manager

Fund (Private

Placement)

Fund (Private

Placement)

Repayment (Interest+ Principal)

1 2 3

Project Monitoring

Repayment Fund

PT SMI

Fund Repayment

Repayment Fund

Several Scheme for Long Term Investors to Invest in Infrastructure Sector

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Bajulmati Reservoir,

Banyuwangi

Batam Municipal Solid

Waste Management

Rolling Stock Project for INKA

Soekarno Hatta Airport Rail Link

Water Supply Project

Jakarta

Mini Hydro Power Plant,

Mobuya, North Sulawesi

Coal-Fired Power Plant

Tanah Grogot, East Kalimantan

Coal Gasification Power Plant,

West Kutai

Bridge Project

Kali Api, Manokwari

Dekai-Oksibil

Road Project, Papua

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

Mini Hydro Power Plant

Lebong, Bengkulu

Citarum Drainage Project,

Karawang-Bekasi, West Java

Water Treatment & Supply

Project, Tegal Gede, 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

Ngawi – Kertosono Toll Road

River Kujang Drainase Project,

Samarinda

Paselloreng Dam Project, Wajo,

South Sulawesi

Bridge Wariki Project

Manokwari

Tugu Station and Pedestrian

Revitalization, Yogyakarta

Lolak Dam, Bolaang

Mongondow, North Sulawesi

Wundulako Irrigation

Kolaka, Southeast Sulawesi

Jeneponto-Bantaeng Road,

South Sulawesi

Gerak Tempe Reservoir

Wajo, South Sulawesi

Wind Energy Power Plant

Sumba and Lebak

Oil Refinery

Bojonegoro, East Java

Coal Train, East

Kalimantan

Mini Hydro Power Plant Tara Bintang,

North Sumatera

Coal-Fired Power

Plant Project, Gorontalo

Bulk Port, Tuban

East Java

Bulk Port, Gresik

Marisa Port,

Gorontalo Floating, Storage Offloading,

Madura

Floating, Storage Offloading

Natuna, Riau Islands

Mass Rapid Transit

Project, Surabaya

Logistic Murphy Semai Oil,

Fakfak

Arar Port Project

Sorong

Container Port Project Development and

Supporting Facilities at Palaran Port, East

Kalimantan

Solo – Ngawi Toll Road

• BTS Tower, Shelter throughout

Indonesia

• Working Capital in

Telecommunication

Port Container & Cigading

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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Pandaan-Malang Toll

Road, East Java (Equity)

Ciliwung River Normalization,

Jakarta

Passenger Terminal Project Supadio

Airport

Pontianak, West Kalimantan

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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

Activity Based Costing, Tanjung

Perak Surabaya, East Java

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Medan – Binjai Toll Road (Trans

Sumatera Toll Road), North

Sumatera

Pejagan – Pemalang Toll

Road (Trans Java Toll

Road), Cenral Java

Titab Reservoir Project

Buleleng, Bali 62

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Semarang-Solo Toll Road,

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 Banyuasin

South Sumatera

Power Plant, Kendari

Southeast 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 Hulu

Riau

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Case Study of Integrated Railway

and Kualanamu Airport, North

Sumatera 64

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Leasing Rolling Stock Scheme in

corporation with PT KAI, Jakarta

Mini Hydro Power Plant

Lau Gunung, North Sumatera 65

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Coal-Fired Power Plant

Tenayan, Riau 66

Sosok – Tayan & Tanjung – Sanggau

Road, West Kalimantan

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Electricity Capex

Projects

Lavalette Hospital, Malang

East Java 68

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69 Port Development project in Jayapura

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Local Government

infrastructure

development assistance

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proyek | Advisory Services proyek | Financing and Investment 20 proyek | Project Development 6 65

Palembang – Indralaya Toll Road

(Trans Sumatera Toll Road),

South Sumatera

Coal-Fired Power Plant,

Lobam, Bintan

Jabung Irrigation Project,

East Lampung

Water Treatment & Supply,

Cipasauran, Banten

Gas Pipeline Construction for

Households, Tarakan,

West Kalimantan

34 Penajam Port Project,

East Kalimantan 72

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73 Lampung City Water Treatment

Project, Bandar Lampung

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Entikong Borderline Road, West

Kalimantan

PT SMI Portfolio Across Indonesia

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