Toll Road Investment Opportunities in Indonesia 1

INDONESIAN TOLL ROAD AUTHORITYMINISTRY OF PUBLIC WORKSINDONESIAN TOLL ROAD AUTHORITYMINISTRY OF PUBLIC WORKS

TOLL ROAD INVESTMENTTOLL ROAD INVESTMENTOPPORTUNITIES IN INDONESIAOPPORTUNITIES IN INDONESIA

September 2010

Realizing development equalization and balancing in development region

Increasing service distribution efficiency in region which have high development factor main for supporting improvement economics growth

Expediting traffic or increasing people mobility and accesibility either goods and services in developing region

Lightening Government fund load by participating road user whereas expenditure Government Fund (APBN) firstly alocated for countering traffic jam in big cities can be diverted to another city haven’t growth

Any citizen participation and private sector in provision infrastructure

THE PURPOSE OF MANAGEMENT TOLL

ROAD

2

TOLL ROAD DEVELOPMENT POLICY

• Supporting economics growth centre• Connecting inter-region• Overcome congestion in the city

TOLL ROAD DEVELOPMENT PROGRESS IN INDONESIA

General Planning: 3,087.88 km

Realisation 1978 –2010 :741.97 km

On going (BOT) 20 toll road : 736.62 km, Investment U$. 7,723.03 M(land acquisiting and constructing)

On going (PPP Scheme) 2 toll road : 177.12 km, Investment U$. 1,057.68 M(consession agreement process, land acquisitIng and constructing) (Goverment: 59,95 km, Investment U$.

453,54 M)

Consession Agreement Preparation (4 Toll Road) : 154.24 km, Investment U$. 1,144.86 M

Tender Preparation (30 Toll Road) : 1,332.26 km, Investment U$. 15,928 M

Construction by Government (1 Toll Road On Going : Akses Tanjung Priok) : 9.48 km, Investment U$. 262.71 M (4 Toll Road (Plan)) : 28.15 km, Investment U$. 275.20 M(land acquisiting and constructing)

MAP OF INDONESIA

TOLL ROAD NETWORK ATJAVA ISLAND

Bandung

Jawa Barat

JakartaSerang

Surabaya

Yogyakarta

Semarang

DKI

Banten

DIY

Jawa Tengah

Jawa Timur

KertosonoMojokerto

Pejagan Pemalang

Batang

Cikampek

Palimanan

Solo

Ngawi

Pasuruan

Probolinggo

Banyuwangi

Kanci

Sukabumi CiranjangDemak

Malang

PandaanGempol

Bogor

JAVA SEA

Operation

Land Acquisition/Concession Agreement

Construction

Tender Preparation

Concession Agreement Preparation

KETERANGAN :

- Medan-Binjai

- Belmera

- Medan-Kualanmu-Tebing Tinggi

Palembang-Indralaya

Pekanbaru-Kandis-Dumai

In Operation

Tender Preparation

Bakauheni-Terbanggi Besar (Tegineneng-Babatan)

6

TOLL ROAD NETWORK IN SUMATRA

PRIORITY PROJECTPRIORITY PROJECT

Priority Projects

1 MEDAN-KUALA NAMU -TEBING TINGGI 60.00 83.63 530.22 Feasibility Evaluation (possibility with Government Support)

2 CILEUNYI - SUMEDANG - DAWUAN 58.50 56.29 568.91 Feasibility Evaluation (possibility with Government Support)

3 PALEMBANG - INDRALAYA 22.00 7.14 117.41 Feasibility Evaluation (possibility with Government Support)

4 TEGINENENG - BABATAN 50.00 29.94 304.06 Feasibility Evaluation (possibility with Government Support)

5 SUKABUMI - CIRANJANG 28.00 17.72 206.93 Feasibility Evaluation (possibility with Government Support)

6 PASIRKOJA - SOREANG 15.00 27.31 113.91 Feasibility Evaluation (possibility with Government Support)

7 PANDAAN - MALANG 37.62 32.69 281.85 Feasibility Evaluation

8 MEDAN - BINJAI 15.80 28.55 144.18 Feasibility Evaluation (possibility with Government Support)

9 KEMAYORAN - KAMPUNG MELAYU 9.65 775.37 Feasibility Study On Progress

10 SUNTER - RAWA BUAYA - BATU CEPER 22.92 1,088.39 Feasibility Study On Progress

11 ULUJAMI - TANAH ABANG 8.27 474.49 Feasibility Study On Progress

12 PASAR MINGGU - CASABLANCA 9.56 637.81 Feasibility Study On Progress

13 SUNTER - PULO GEBANG - TAMBELANG 25.73 822.70 Feasibility Study On Progress

14 DURI PULO - KAMPUNG MELAYU 11.38 664.59 Feasibility Study On Progress

15 TERUSAN PASTEUR - UJUNG BERUNG - CILEUNYI - GEDEBAGE 27.30 771.30 Feasibility Study

401.73 283.27 7,502.11

No. Toll Road Length (KM)Investment Cost

(U$ M)

Total

Land Cost (U$.M) Remarks

POTENTIAL PROJECTPOTENTIAL PROJECT

Potential Projects

1 PEKANBARU - KANDIS - DUMAI 135.00 52.92 941.81 Suggestion to Built by Government

2 MANADO - BITUNG 46.00 85.30 625.79 Suggestion to Built by Government

3 KISARAN - TEBING TINGGI 60.00 18.96 588.76 Feasibility Study

4 BUKIT TINGGI - PADANG PANJANG- LUBUK ALUNG - PADANG 55.00 18.96 1,140.72 Feasibility Study

5 TERBANGGI BESAR - MENGGALA - PEMATANG PANGGANG 100.00 27.54 644.51 Feasibility Study

6 BAKAUHENI - TERBANGGI BESAR 100.00 56.87 914.36 Feasibility Study

7 CILEGON - BOJONEGARA 15.69 15.50 102.59 Feasibility Study

8 KAMAL - TELUK NAGA - BATU CEPER 32.00 146.55 400.33 Feasibility Study

9 GEDE BAGE - MAJALAYA - 100.36 Feasibility Study

10 SEMARANG - DEMAK 23.99 31.04 330.06 Feasibility Study

11 YOGYAKARTA - BAWEN 104.00 125.89 678.52 Feasibility Study

12 YOGYAKARTA - SOLO 40.49 56.70 259.81 Feasibility Study

13 BANDARA JUANDA - TANJUNG PERAK 23.00 81.25 560.88 Feasibility Study

14 PROBOLINGGO - BANYUWANGI 170.36 76.22 892.06 Feasibility Study

15 BATU AMPAR - MUKA KUNING - BANDARA HANG NADIM 25.00 - 245.32 Feasibility Study

930.53 793.70 8,425.89

Land Cost (U$.M) RemarksInvestment

Cost (U$. M)

No. Toll Road Length (KM)

Total

BUSINESS SCHEME OF TOLL ROAD (Article 43 (2) Law 38/2004 Concerning Road and Article 19-23 Government Regulation 15/2005 Concerning Toll Road)

b

a

Example:Case 1: BOT for Toll Road CommonlyCase 2: Akses Tanjung PriokCase 3: PPP Solo – Kertosono Toll Road

EIRR TOLL ROAD (+)EIRR TOLL ROAD (+)c

Feasible to be built if EIRR value is positive

Feasible to be built if EIRR value is positive 1) BOT : FIRR (+)

a+b+c : Private Company

2) DBO/DBL : FIRR (-)a+b : Government c : Private Company

3) PPP : FIRR (Marginal)a+b : Governmentb+c : Private Company

On GoingOn Going

• Link : 20 Link• Length : 736.62 km• Investment :

U$. 7,074.31 M

• Link : 20 Link• Length : 736.62 km• Investment :

U$. 7,074.31 M

• Link : 1 Link• Length : 9.48 km• Investment :

U$. 262.71 M

• Link : 1 Link• Length : 9.48 km• Investment :

U$. 262.71 M

• Link: 2 Link• Length : 179.00 km• Investment :

U$. 902.83 M

• Link: 2 Link• Length : 179.00 km• Investment :

U$. 902.83 Ma : Land Acquisitionb : Constructionc : Operation and Maintenance

a : Land Acquisitionb : Constructionc : Operation and Maintenance

(+ 14 MONTHS)

(+ 4-6 MONTHS)

Investment Procedure

BUSINESSPREPARATION

TOLL ROADBUSINESSTENDER

FUNDINGDETAILED

ENGINEERINGDESIGN

LANDACQUISITION

CONS-TRUCTION

OPERATI-ONAL

+MAINTE-NANCE

CON-CESSION

TAKE OVER

GENERAL NETWORK PLAN

TOLL ROAD PLANNING POLICY

TOLL ROAD PLAN

1

2

3

4 5 6 7 8 9 10 11

PPJT TARIFTOL

13

Macro Stage of Toll Road Business

Conducted by Bina Marga

Conducted by Indonesia Toll Road AuthorityConducted by Toll Road Company

14

1. Fundamentals of changes, among others:

a. Government support in the form of contributions should be listed in the state budget fiscal / budget

b. Government can provide support in the form of procurement of land, part of construction permits, and tax incentives

c. Procurement of land held by the government before the procurement process Enterprises

d. Government guarantees in the form of financial compensation or other form of permission to the Ministry of Finance

2. Follow up the new Presidential Regulation No. 13 Year 2010, mandates the evaluation of 24 concession toll roads to toll road management assurance, including evaluation financial capability of the concessioner and evaluation of project feasibility, and also possible existence of government support in the form of land acquisition and /or part of the construction

Note :

During the evaluation process of managing 24 toll roads, the possibility entrance of new investors in managing 24 toll roads through the principle of "Business to Business" with existing investors.

THIS IS A NEW PRESIDENTIAL REGULATION NO.13/2010 THAT CONTAINS:

INDONESIA TOLL ROAD AUTHORITYMINISTRY OF PUBLIC WORKS

Jalan Iskandarsyah Raya No. 35Kebayoran Baru, Jakarta Selatan

Phone: (62-21) 7258076Fax : (62-21) 7257126http://www.bpjt.net/

THANK YOU