iabw infra reynaldi-hermasnyah

7/25/2019 IABW Infra Reynaldi-Hermasnyah

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INDONESIAS TOLL ROAD DEVELOPMENT

Indonesia Australia Business Week

Jakarta, 18 November 2015

Reynaldi Hermansjah

CFO PT Jasa Marga (Persero) Tbk.

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Disclaimer

By attending this presentation, you are agreeing to be bound by the restrictions set out below. Any failure tocomply with these restrictions may constitute a violation of applicable securities laws.

The information and opinions contained in this presentation are intended solely for your personal reference and are strictlyconfidential. The information and opinions contained in this presentation have not been independently verified, and norepresentation or warranty, expressed or implied, is made as to, and no reliance should be placed on the fairness, accuracy,completeness or correctness of, the information or opinions contained herein. It is not the intention to provide, and you maynot rely on this presentation as providing, a complete or comprehensive analysis of the condition (financial or other),earnings, business affairs, business prospects, properties or results of operations of the company or its subsidiaries. Theinformation and opinions contained in this presentation are provided as at the date of this presentation and are subject tochange without notice. Neither the company (including any of its affiliates, advisors and representatives) nor the

underwriters (including any of their respective affiliates, advisors or representatives) shall have any responsibility or liabilitywhatsoever (in negligence or otherwise) for the accuracy or completeness of, or any errors or omissions in, any informationor opinions contained herein nor for any loss howsoever arising from any use of this presentation.

In addition, the information contained in this presentation contains projections and forward-looking statements that reflectthe company's current views with respect to future events and financial performance. These views are based on a numberof estimates and current assumptions which are subject to business, economic and competitive uncertainties andcontingencies as well as various risks and these may change over time and in many cases are outside the control of thecompany and its directors. No assurance can be given that future events will occur, that projections will be achieved, or thatthe company's assumptions are correct. Actual results may differ materially from those forecast and projected.

This presentation is not and does not constitute or form part of any offer, invitation or recommendation to purchase orsubscribe for any securities and no part of it shall form the basis of or be relied upon in connection with any contract,commitment or investment decision in relation thereto. This presentation may not be used or relied upon by any other party,or for any other purpose, and may not be reproduced, disseminated or quoted without the prior written consent of thecompany.

Any investment in any securities issued by the company or its affiliates should be made solely on the basis of the final offerdocument issued in respect of such securities.

Relaying copies of this presentation to other persons in your company or elsewhere is prohibited.

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No Projects Baseline

2014

Objective

2019

1. Seaport (number of port) 278 302

2. Electricity Supply (GW) 50.7 85.73. National Road (km) 1,202 3,852

4. Toll Road (km) 807 1,807

5. Railways (km) 5,434 8,692

6. Airport (number of port) 237 252

National Development Mid-term Plan (2015-2019)

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Regulatory Framework

Current regulatory structure

Jasa Marga has flexibility to invest in prospective toll road.

Encourage more private participation in toll roads business no limit on

foreign ownership.

Competitive bidding environment with strict financial closure requirements on

winners.

3

30%

Ownership

Since 12

Nov 2007 Private Toll Road Investors

Private Toll Road Investors

Government

of Indonesia(GOI)

Directorate Generalof

Highways

Ministry of State-

Owned Enterprises

(MSOE)

Minister of

Public Works

Indonesian Toll RoadAuthority

(BPJT)

Road NetworkPlanning & Setting

of Technical

Specifications

Granting &Supervising Toll

Road concessions

Private Toll Road Investors

Concession Agreement

Concession

Agreement

Ministry of Public

Works (MPW)

70%

Ownership

Public


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Improved Regulations

44

Tariff Land Acquisition

Initial toll tariff is calculated based on

investment feasibility, toll roadusers

ability to pay and vehicle operating

cost saving. Investment feasibility is

calculated based on estimated

investment cost and projectedrevenue during term of the

concession.

Initial toll tariff is stipulated in

concession agreement prior to start of

construction.

Tariff adjustment is regulated by law,

is calculated based on CPI and is

adjusted once every two years.

Initial toll tariff setup and subsequent

adjustment is decided by Minister of

Public Works decree.

Land acquisition is Governments

responsibility, is undertaken by land

procurement committee appointed by

the Government.

Price is determined by independent

appraiser based on fair market price.Government provides a revolving

fund to acquire land in advance. Land

cost and availability is secured,

because investor should repay land

cost only after land is fully acquired.

Government guarantees maximum

land price to be compensated by the

investor (land capping scheme).


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Stages of Land Acquisition (Based on UU No. 2/2012)

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The new land acquisition law carries the following main points: Fair price is determined through independent appraisal.

Land owner may choose to reject through court, yet court has to decided in 30 days (final).

After transaction process (normal) or by court verdict, project can commence.

Re-settlement is also an option.

The Government should carry out socialization far in advance (transparent).

BPN (National Land Agency) is the only body responsible for land acquisition for public interests.


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Implementation of Viability Gap Funding (VGF) from the

Government

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Belawan-Tanjung Morawa

Toll Road

17.8 km 43.9 km

LengthInvestment

Cost

61.7 km Rp 4.07 trillion

Notes :

Constructed by Government

Constructed by Investor

Medan-Kualanamu-Tebing Tinggi Toll Road


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SOLO-NGAWI (90.1 KM)

NGAWI-KERTOSONO (87.02 KM)

Land

Acquisition:

96%

Construction:

40%

Notes :

Constructed by Government

Constructed by Investor

Investor

Implementation of Viability Gap Funding (VGF) from the

Government

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Section LengthInvestment

Cost

Solo-Ngawi 90.1 km Rp 5.14 trillion

Ngawi-Kertosono 87.02 km Rp 3.83 trillion

TRANS JAVA TOLL ROAD


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Toll Road Operator in Indonesia with 37 Years of Experience

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Note: (1) Jakarta Inner Ring Road (JIRR) is comprised of the Cawang-Tomang-Pluit concession granted to Jasa Marga and Cawang-Tanjung Priok-Pluit concession granted to CMNP.

(2) JasaMargasnewly acquired toll road concessions.

(3) The cumulative length of road represents the current total road length that corresponds to key toll road concessions in this table, not to the year where the concession started.

(4) Porong-Gempol Section (5 km) within Surabaya-Gempol Toll Road has officially been closed due to force majeure (mud) since 2006.

Semarang

Padaleunyi

Prof. Dr. Ir.

Sedyatmo

Cipularang

Jakarta Outer

Ring Road

(JORR)

Belmera

Jagorawi

Jakarta Inner

Ring Road(JIRR) (1)

Jakarta-

Cikampek Ulujami-Pondok

Aren

Palikanci

Start

Operation

Toll RoadConcessions

Number of

Concessions

Total Length (km)

under

Corresponding

Concessions(3)

Jakarta-Tangerang

Surabaya-

Gempol (4)

BORR

(Section 2 & 3)(2)

26

986.81

Bogor Outer

Ring Road

BORR

(Section 1)(2)

Surabaya-Mojokerto

(Section 1A)(2)

Semarang-Solo

(Section 1)(2)

1978 1983 1984 1986 1987 1988 1990 1991 1998 2001 2003 2009 2011 2013 2014

JORR W2 North

(Section 1-4)(2)

BORR

(Section

2A)(2)

1 2 4 6 7 8 9 10 11 12 13 14 16 17 18

59 84 131 223 246 329 394 437 463 469 527 531 544 554 576

Nusa Dua-Ngurah

Rai-Benoa(2)

Solo-Ngawi(2)

Ngawi-Kertosono(2)

Cinere-Serpong(2)

2015

Semarang-Solo

(Section 2)(2)

19

590

Gempol-

Pandaan(2)

Medan-Kualanamu-Tebing Tinggi(2)

Cengkareng-Kunciran(2)

Kunciran-Serpong(2)

Surabaya-Mojokerto(2)

Semarang-

Solo(2)

Gempol-

Pasuruan(2)


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The Largest Toll Road Operator in Indonesia

Manages and operates 590 km of toll roads in Indonesia63% share.

Urban concentration in Jakarta metropolitan areasome ofIndonesiasbusiest toll roads.

Regional concentration in Java and Sumateramost populated islands in Indonesia.

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Java Sea

Timor Sea

Strait of

Malacca

Banda Sea

Indian Ocean

SULAWESI

PAPUA

KALIMANTAN

MALUKU

SUMATRA

CENTRAL JAVA

Semarang: 24.75 km

Semarang-Solo: 72.64 km

Solo-Ngawi: 90.1 km

Ngawi-Kertosono: 87.02 km

EAST JAVA

Surabaya-Gempol: 49.00 km

Gempol-Pasuruan: 34.15 km Surabaya-Mojokerto: 36.27 km

Gempol-Pandaan: 13.61 km

NORTH SUMATERA

Belmera: 42.70 km

Medan-Kualanamu-Tebing Tinggi: 61.70 km

GREATER JAKARTA & WEST JAVA

Jagorawi: 59.00 km

Jakarta-Tangerang: 33.00 km

Ulujami-Pondok Aren: 5.55 km

Jakarta Inner Ring Road: 23.55 km

Prof. Dr. Ir. Sedyatmo: 14.30 km

Jakarta-Cikampek: 83.00 km

JORR: 43.10 km

Cikampek-Padalarang: 58.50 km

Padalarang-Cileunyi: 64.40 km

Palikanci: 26.30 km

Bogor Outer Ring Road: 11.00 km

Cengkareng-Kunciran: 14.19 km

Kunciran-Serpong: 11.19 km

JORR W2 North: 7.70 km

Cinere-Serpong: 10.24 km

JAVA

BALI

BALI

Nusa Dua-Ngurah Rai-Benoa: 10.00 km

:Operated before 2004 : 13 new projects on

the pipeline,

operating in stage

since 2009.

Greater Jakarta: 275 km (47%) Non-Greater Jakarta: 315 km (53%)


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Jasa Marga New Projects

10

Jasa Margas New Toll Roads

Notes: (1) Section 1: Sentul-Kedung Halang (3.85 km) is operated since 23 November 2009; Section 2A: Kedung Halang-Kedung Badak (1.95 km) is operated since 04

June 2014.

(2) Section 1: Semarang-Ungaran (10.80 km) is operated since 17 November 2011; Section 2: Ungaran-Bawen (12.30 km) is operated since 04 April 2014.

(3) Section 1A: Waru-Sepanjang (2.30 km) is operated since 05 September 2011.

(4) Operated since 01 October 2013.

(5) Section Kebon Jeruk-Cileduk (5.70 km) is operated since 04 January 2014; Section Cileduk-Ulujami (2.00 km) is operated since 22 July 2014.

(6) Section Gempol-Pandaan (13.61 km) is operated since 12 June 2015.

Concession/Section Expiration Length(km)

Investment Cost(Rp trillion)

Jasa MargaOwnership

1. Bogor Outer Ring Road (1) 2054 11.00 0.98 55%

2. Semarang-Solo (part of Trans Java) (2) 2055 72.64 6.21 73.91%

3. Gempol-Pasuruan (part of Trans Java) 45 years from effective date 34.15 2.77 97.02%

4. JORR2 (Cengkareng-Kunciran) 35 years from effective date 14.19 3.51 76.20%

5. JORR2 (Kunciran-Serpong) 35 years from effective date 11.19 2.62 60%

6. JORR W2 North (road section of JORR) (5) 2044 7.70 2.15 65%

7. Surabaya-Mojokerto (3) 2049 36.30 3.22 55%

8. Gempol-Pandaan 35 years from effective date 13.61 1.17 89.17%

9. Nusa Dua-Ngurah Rai-Benoa (4) 45 years from effective date 10.00 2.48 55%

10. Medan-Kualanamu-Tebing Tinggi 40 years from effective date 61.70 4.07 55%

11. Solo-Ngawi (part of Trans Java) 35 years from effective date 90.10 5.14 59.99%

12. Ngawi-Kertosono (part of Trans Java) 35 years from effective date 87.02 3.83 59.99%

13. Cinere-Serpong 35 years from effective date 10.24 2.2 55%

TOTAL 459.84 40.35


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Greater Jakarta Toll Road Network

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Integrated toll road network

in and around Greater

Jakarta.


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Toll Road Network in Java Island

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Indonesias Toll Road Traffic Volume

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Jasa Marga operates most of the busiest toll roads in Indonesia.

Notes(*):

(1) Average daily traffic volume is calculated by dividing traffic volume by 365 days.

(2) All data are based on traffic volume until 31 December 2014.

(3) When not available, data on other companies are based on the closest estimation of available data.

Average Daily Traffic Volume Transaction* (December 2014)

Toll roads operated by others

(80%)

000 cars per day

Toll roads operated by Jasa Marga


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Fluctuating car sales growth in Indonesia has minimal impact to our traffic volume,

however increase in car sales will contribute to higher traffic volumes in the longrun.

Resilient Industry: Insensitive Traffic Volume

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Source: Jasa MargaSource: GAIKINDO (2)

Note:

(1) Fuel price increased significantly in October 2005 but the full impact in car sales was only felt in 2006.

(2) Gabungan Industri Kendaraan Bermotor Indonesia (The Association of Indonesian Automotive Industries).

(million)

Traffic on Jasa Margas Toll RoadsCar Sales

(thousand)

Direct impact of

fuel price hike (1)Direct impact

of economic

crisis


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Jasa Margas expansion from current new projects will accelerate the asset value with the

capability to generate high and sustainable revenue growth.

7.23

18.48

2014A 2020F

31.86

90.07

2014A 2020F

High Growth of Quality Asset for Sustainable Revenue Growth

15

Revenue GrowthAsset Growth

(Rp trillion)(Rp trillion)


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THANK YOU

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