DPP INSA CHAIRMAN Johnson W. Sutjipto

INSA-P&I CLUB Investment Opportunity

1

I N S AINDONESIAN NATIONAL SHIPOWNERS’ ASSOCIATION

INVESTMENT OPPORTUNITY IN SHIPPING AFTER THE ISSUANCE OF PRESIDENTIAL INSTRUCTION NO. 5 OF 2005 AND THE ENACTMENT OF LAW NO. 17 OF 2008 ON SHIPPING

INDUSTRY

DPP INSA CHAIRMAN Johnson W. Sutjipto

2/26/2009


2

SUBSTANTIAL GROWTH IN THE NEXT DECADE

INTERNALLY

1.Archipelago Country2.Large Population Base3.Emerging Middle Income Group4.Substantial Natural Resources

2/26/2009


3

GOVERNMENT REGULATION

Cabotage Principle

Presidential Decree No. 5 Year 2005 issued on 28 March 2005

also known asINPRES 5

Followed by Transportation Ministry DecreeKM 71 Year 2005

2/26/2009

Sumber : Ditjen Perla

ROAD MAP CABOTAGE FOR 13 TYPES COMMODITIES OF DOMESTIC CARGO + OFFSHORE ACTIVITIES


5

LEGAL BASIS

Undang Undang “Pelayaran” No. 17 Tahun 2008

Shipping Law No. 17Effective 7 May 2008

2/26/2009


6

Mandatory Flag Requirements

UU No 17 article No 8 :ALL DOMESTIC SEA

TRANSPORTATION MANDATORY TO BE CARRIED BY INDONESIAN

FLAGGED VESSELS ALL FOREIGN FLAGS VESSELS ARE

NOT ALLOWED TO CARRY ANY DOMESTIC CARGO WITHIN

INDONESIAN WATER2/26/2009


A. DOMESTIC SEA TRANSPORTATION

Notes : - Data Per 3rd Quarter 2008 - From Ditjen Perla 7

No. Cargo Year (in Million Ton) 2005 2006 2007 2008 *)

1 National Vessels 114.5 135.3 148.7 142.4 (%) 55,5 61,3 65,3 77 2 Foreign Vessels 91.8 85.4 79.2 40.8 (%) 44,5 38,7 34,7 23 Total 206.3 220.7 227.9 183.2

%

2005 2006 2007 2008 (*)0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 55,5 61,3

65,3 77

44,5 38,7 34,7 23 Kapal National

Kapal Asing

2/16/2009


B. IMPORT/ EXPORT SEA TRANSPORTATIONNo. Cargo Year

(In Million Ton) 2005 2006 2007 2008 *)1 National Vessels 24.6 29.4 31.4 29.8 (%) 5,0 5,7 5,9 7,12 Foreign Vessels 468.4 485.4 500.5 390.8 (%) 95,0 94,3 94,1 92,9 Total 493 514.8 531.9 420.6

8Notes: - Data Per 3rd Quarter 2008 - from Ditjen Perla

%

0.00 10.00 20.00 30.00 40.00 50.00 60.00 70.00 80.00 90.00

100.00

20052006

2007 2008

95,0 94,3 94,1 92,9

Kapal NationalKapal Asing

5.0 5,7 7,15,9

2/26/2009


ESTIMATED SEA FREIGHT DEFICIT TO FOREIGN VESSELS

If based on sea freight of USD 20 / mTON for domestic trade and seafreight of USD 50 / mTon for import/ export trade, we get:

Domestic Freight:

Import/ Export Freight:

9

Foreign Vessels 2005 2006 2007 2008*)

In Million US Dollar USD 1.836 USD 1.708 USD 1.584 USD 816

Foreign Vessels 2005 2006 2007 2008*)

In Million US Dollar USD 23.420 USD 24.270 USD 25.025 USD 19.540

2/26/2009*) Data per 3rd Quarter 2008


10

SUBSTANTIAL GROWTH IN THE NEXT DECADE

FOCUS : ENERGY SECTOR

1.New Coal Powered Power Plants2.Downstream : Oil and Gas3.Upstream : Oil and Gas

All the above requires a substantial number of vesselsfor their logistic transportation needs

2/26/2009


11

COAL POWER STATION

Sumber : PT. PLN.

2/26/2009


12

COAL POWER STATION

Kebutuhan Batubara DomestikUntuk Pembangkit Listrik Tenaga Uap ( PLTU ) dan Industri Lainnya

(dalam JUTA MT)2006 2007 2008 2009 2010

1 PLTU Suralaya, Banten 11 11 11 15 15

2 PLTU Paiton, Probolinggo 10 10 10 12,5 12,5

3 PLTU Tanjung Jati 5 5 5 5 5

4 PLTU Cilacap 2 2 2,5 2,5 2,5

5 PLTU Labuhan, Merak 2 2

6 PLTU Cirebon 2

Kebutuhan PLTU di P. Jawa 28 28 28,5 37 397 Pabrik Gula,Textile,Kertas dll si

Jawa 20 28 32 35 35

Total Kebutuhan untuk P. Jawa 48 56 60,5 72 74

2/26/2009

Sumber PLN


13

COAL POWER STATION

Pelabuhan Bongkar Batubara di Beberapa PLTU

Panamax Handymax BG>300 BG<300Stock Pile

1 PLTU SURALAYA Yes Yes Yes Yes Yes

2 PLTU PAITON Yes Yes Yes No Yes

3 PLTU TANJUNG JATI Yes Yes Temporary Temporary Yes

4 PLTU CILACAP No No Yes Yes Yes

5 PLTU LABUHAN, Merak No No Yes Yes Yes

6 PLTU CIREBON No No Yes Yes Yes

7 Pabrik Gula,Tekstile,Kertas, dll No No Yes Yes No

2/26/2009

Sumber : Ditjen Hubla


14

Requirement & Availability For Coal Transpotation Vessels and Barges

Requirement21 units

2010

Requirement 800 sets-Requirement 700sets

-Available 600 sets

2008

Barges

Vessels-Requirement 13 units-Available 11 units

2008 2010

2/26/2009

Sumber : Ditjen Hubla & DPP INSA


15

USAHAHILIR

(DOWNSTREAM)

PENGOLAHAN(REFINERY)

PENGANGKUTAN(TRANSPORTATION)

PENYIMPANAN(STORAGE)

NIAGA(TRADE)

OIL and GAS : Downstream

2/26/2009


16

LIST OF VESSELSCHARTERED BY PERTAMINA

Total Foreign Flag

DWT

1,921,505.59

Rate/ day

750,651.26

GRAND TOTAL

DWT 2,461,153.46

HP/KL 43,773.00

Rate / day 1,103,251.56

Total Indonesian Flag

DWT

539,647.87

HP/KL

43,773.00

Rate / day

352,600.30

2/26/2009Sumber : Pertamina

OIL and GAS : Downstream

17

CHARTER HIRE PAID BY PT. PERTAMINA• National Flag : 32% (79 Vessels)

•Foreign Flag : 68% (56 Vessels - FundsOutflow)

•Total yearly charter paid: US$ 402 Million

•Yearly Outflow : USD 274 Million

2/26/2009INSA-P&I CLUB Investment Opportunity


18

USAHA MINYAK DAN GAS BUMI

USAHAHULU

(UPSTREAM)

EXPLORASI(EXPLORATION)

EXPLOITASI(PRODUCTION)

OIL and GAS : Upstream

2/26/2009

19

Vessels Required In The OIL and GAS Upstream Sector and Investment Value

VESSEL TYPEUSD

>=20jtUSD

<20jtUSD

<10jtUSD

<1.5jt E P

Drilling Rig v v

Jack up Rig v v

Semi Submersible Rig v v

Floating Production Storage Vessel v v

Construction Vessel v v

Pipe Laying Vessel v v

Seismic & Survey Vessel v v v

Floating Storage Vessel v v v

Platform Supply Vessel v v v v

Standby Rescue Vessel v v

Accommodation Vessel v v v v

Anchor Handling Vessel v v v v v

E: ExplorationP: Production / Eksploitation

2/26/2009INSA-P&I CLUB Investment Opportunity

Sumber : DPP INSA

20

VESSEL TYPE USD

>=20jtUSD

<20jtUSD

<10jtUSD

<1.5jt E P

Crew Boat v v v

Diving Support Vessel v v v

Fire Fighting & Pollution Control Vessel v v v v

Supply Vessel v v v

Utility Workboat v v v

Mooring / Tanker Assist Tugboat v v

Tugboats v v v

Landing Crafts v v v

Flat Top Deck Cargo Barges v v v

Oil Barges v v v

Speed Boat v v v

Sea Truck v v v

Patrol Vessel v v v v

E: ExplorationP: Production / Exploitation

….continue

2/26/2009INSA-P&I CLUB Investment Opportunity Sumber : DPP INSA


21

• National Flag : 25% (573 Vessels)• Foreign Flag : 75% (52 Vessels - Funds

Outflow)• Total yearly charter paid: US$ 1.5 Billion• Yearly Outflow : USD 1.125 BillionPercentage of Charter Hire based on Flag

Foreign Flag

National Flag 75%

CHARTER HIRE PAID BY OIL COMPANIES

25%

OIL and GAS : Upstream

2/26/2009Sumber : BP MIGAS


22

VESSEL MARKET PRICES

■ Vessel Prices is at its lowest in the last few years

■ Huge number of new buildings at a substantial discount

■ Perfect time to invest !

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23

CHALLENGE

1. Funding is not so readily available during this period after the global economy crisis

2. To Ractify Arrest of Ship Convention

3. Limited quality and quantity of human resources on board the vessels

2/26/2009


24

CHALLENGE4. Need More Support From Shipper : Indonesian Export generally sold at FOB term Indonesian Import generally bought at CIF term Limited Human Resources knowledge on “BOOMZAKEN”

related to L/C, Insurance, Customs and Export & Import Trade 5. Secure more long term contract between end user / cargo

owner and the Indonesian Shipping Company. Much needed long term contract on the following commodities such as: Oil & Gas, Coal, CPO and Offshore ActivitiesLong term contract can be used as guarantee for financing from banking for shipping companies fleets expansion

2/26/2009


25

INSA’S COMMITMENT

INSA available to assist and provide necessary information regarding:

• Existing Regulations• Development of National Fleet• Investment Opportunity

Questions may be directed via email to INSAEmail address: [email protected]

2/26/2009

mailto:[email protected]


26

MERAH PUTIHPASTI BISA !

THANK YOU

What we need isCOMMITMENT !!!

2/26/2009

DPP INSA CHAIRMAN Johnson W. Sutjipto

Documents

sea freight of usd

domestic freight

seafreight of usd

domestic trade

foreign vessels91

foreign vessels468

import export freight

sea freight deficit