Leading township developer & infrastructure powerhouse PT - - PowerPoint PPT Presentation

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Leading township developer & infrastructure powerhouse

PT Kawasan Industri Jababeka Tbk. ("KIJA") is a leading township developer with an established track record in industry- based townships supported by residenDal & commercial components...

KIJA overview Business segments

• Established in 1989 and became the first publicly listed industrial

estate developer in Indonesia in 1994

• Kota Jababeka, KIJA's flagship development, is a mature industry-

based integrated township in Cikarang with on-site power plant and dry port

• Pipeline projects: Kendal Industrial Park – Park by the Bay in

Central Java, tourism-based township in Tanjung Lesung, Banten and a tourism development project in Morotai

• Large and strategically located land bank of 3,394 hectares as of 30

September 2017 PT Kawasan Industri Jababeka Tbk Real Estate Infrastructure Industrial ResidenDal Commercial Power Infrastructure Dry Port

Vision: To Create Modern Self Sustained Ci4es in Every Province in Indonesia and Provide Jobs for Be>er Life

FY16 Revenue Breakdown (%) (Rp 2,931 billion) FY16 Gross Profit Breakdown (%) (Rp 1,243 billion – 42% GPM)

…with world class infrastructure to support its development

Real Estate & Others 41% Power Plant 45% Infrastructure & Port 14% Real Estate & Others 71% Power Plant 13% Infrastructure & Port 16%

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Established track record in large-scale industrial estate + infrastructure

1989 1994 1996 2001 2003 2010 2011 2016 Jababeka Group established and started development of the industrial estate IPO on Jakarta and Surabaya Stock Exchange Acquisi_on of Menara Batavia in Jakarta CBD Inaugura_on of Educa_on Park, including President University Commenced development of Jababeka CBD Cikarang Dry Port begins

• pera_ons

Acquisi_on

• f 1,500 ha

land in Tanjung Lesung, Banten Bekasi Power Plant commenced

• pera_ons

Groundbreaking Kendal Industrial Park – Park by the Bay Supply Chain Asia Awards 2014 Asia Logis_cs Centre/Park of the Year

#1

FronDer ConsulDng Group Award 2014 #1 Corporate Image Industrial Estate Fortune Indonesia - 2015 Best Company award

#1

Investor Magazine - 2012 Top 10 Best performing listed companies and Best listed company in property 2013

#1

Ministry of Industry - 2015 Best Industrial Estate – Infrastructure & Facili_es

#1

Indonesia Property Watch- 2015 The best township development concept 2014 D’Khayangan Senior Living Launched

Selected awards

SWA Magazine - 2016 Top 25 Most Crea_ve Companies in Indonesia

More than 25 years track record in industrial township development

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Sizeable land bank in strategic locaDons with upside potenDal

Karawang

Note: 1 Land bank as at 30 September 2017

• Most established industrial area in Greater Jakarta, home

to >2,000 local and mulDnaDonal companies

Designated as a Special Economic Zone

• Designated strategic estate

status under presidenDal decree

• Fully integrated and matured city development 35km east
• f Jakarta, 45mins from Jakarta’s CBD
• Strategically located along

the Jakarata-Semarang- Surabaya Economic Corridor

• Envisaged to become a first-class integrated resort

desDnaDon for both domesDc and internaDonal tourists

• Offers a deep pool of young

and skilled labour at a compeDDve cost Located 170km southwest of Jakarta and covers 1,500 ha of untouched peninsula facing the Indian Ocean

• Tanjung Lesung

— Master plan: 1,551 hectares — 170km southwest of Jakarta — Land Bank: 1,551ha(1) Kendal, Central Java — Master plan: 2,700 hectares — 450km east of Jakarta — Land Bank: 583ha(1) Kota Jababeka Cikarang — Master plan: 5,600 hectares — 35km east of Jakarta — Land Bank: 1,231ha(1)

Kota Jababeka Cikarang Kendal, Central Java Semarang Surabaya Tanjung Lesung

INDONESIA

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Overview of Porholio

Real Estate(1) Leisure & Hospitality Infrastructure

Kota Jababeka Educa4on Park

Industrial

The Jababeka Industrial Estate

ResidenDal

D’ Cataluna Candi Residence at D’Java The Oscar Beverly Hills D’Java Residence Tropikana Garden Graha Asri Riverview Residence Senior Living @D’Khayangan

Commercial EducaDon Park

Ruko D’Java Sentra Niagra Square Movie Boulevard Cortes Resto Plaza Trace Rodeo Drive Hollywood Boulevard Ruko Green Market Kios Green Market Riverwalk

Water Treatment Plant Bekasi Power Cikarang Dry Port Golf & Country Club Waste Water Treatment Plant

Cikarang – Jababeka Golf & Country Club Kota Jababeka

President Lounge

Main Lobby, The President Lounge - Jakarta

Metro Suites Metro Hotel Botanic Garden

Jababeka Botanic Gardens Kota Jababeka

Three diversified pillars of growth underpinned by strong recurring revenue base

Magelang – Borobudur Interna4onal Golf & Country Club Veranda Boulevard Arcade Ruko Hollywood Arcade Thamrin Boulevard East Park Commercial Centre

Note: 1 KIJA also owns 5,947 sqm of space in the Jakarta strata _tle building Menara Batavia and has _tle to 12,035.7 sqm in The City Center, a strata _tled office tower adjacent to Menara Batavia

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Key credit strengths

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Leading industry-based integrated township developer in Indonesia Diversified land bank and projects Stable, USD-denominated recurring income from infrastructure operaDons Robust operaDng and financial performance Clear strategic focus over different Dme frames

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The ONLY industrial developer with on-site power and dry port Experienced management team

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Beneficiary of favourable macro and sector fundamentals

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Kota Jababeka — Flagship industry-based integrated township

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Strategically located in Cikarang area, the most established industrial estate zone in Greater Jakarta Close to central Jakarta, sea-port, airport and accessible by both toll and railroads Mature township with a well-established talent/labour pool supported by complementary facili_es (residen_al, commercial, hospitality, etc) Superior infrastructure facili_es which serve to enhance Kota Jababeka's compe__ve posi_oning for customers

Toll Road Future Toll Road

…and is home to over 1,600 local and mul4na4onal customers from over 20 countries Kota Jababeka is a mature industry-based township strategically located in close proximity to Jakarta CBD, sea port and airport…

(in km) Distance from Kota Jababeka Jakarta CBD 35 Seaport 55 Airport 65 Tanjung Priok Port Heavy industries & Petrochemicals DKI JAKARTA South Tangerang Tangerang Soekarno-Hana InternaDonal Airport Bekasi AutomoDve, Consumer, Electronics & other Light to medium industries Kota Jababeka

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Kota Jababeka – Anchored by a blue-chip customer base

Porholio of high quality customers Diverse mix of occupants across sectors (breakdown by number of occupants) – As of 30 Sept 2017

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The porholio of high quality mulDnaDonal and domesDc customers at Kota Jababeka is a testament to the township's strategic locaDon and superior infrastructure faciliDes

Electronics, 11% Customer Goods, 7% Machinery, 7% Chemicals, 6% Automotive, 6% Plastics, 6% Foods, 5% Building, 4% Metal Fabrication, 4% Tekstile, 2% Others, 44%

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Jababeka Residence – A City for Your World

ResidenDal Commercial

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Elvis Tower Housing clusters High-rise residence Senior housing D’Java Residence The Veranda Tropikana Garden Simprug Garden D’Khayangan - Senior living Simprug Plaza Sentra Niaga Square

Kota Jababeka has successfully achieved a criDcal mass of occupants which provides an opportunity to conDnue introducing complementary services and infrastructure to enhance the township's value proposiDon

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Kota Jababeka – Enhancing value through Joint Venture projects

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PT Plaza Indonesia Realty Tbk PT PP ProperD (Persero) Tbk — Mixed use superblock on a 12-ha site right next to the golf course — Groundbreaking happened in June 2015; piling completed — Launch imminent — Mixed use superblock on a 4.6-ha site — With 6 apartment towers and Japanese style mall — First apartment tower to be launched later this year — 4 a p a r t m e n t t o w e r s strategically located near the toll exit — Catering to the lower end of the market — Tower 1 – Mahakam Tower – 90% sold out & topped off, hand-over expected late 2018 — Tower 2 – Bangawan Tower – soo-launched with > 140 units sold JV 2 30% 70% JV 2 52.6% 47.4% JV 1 70% 30%

“MAYFAIR Estate & Park Land”

JV 1 49% 51%

“Riverview Residence”

— To be developed on 4-ha site adjacent to JV 1 — Concept to be decided on at a later stage – to support / complement JV 1

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Kota Jababeka – Kawana Golf Residence

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— Kawana Golf Residence is a JV between KIJA’s Jababeka Residence (60%) and Creed Group (40%) from Japan — High-end golf view apartment tower with 234 units — Phase 1 launched in December: 100% sold – phase 2 to be launched later

Kawana Golf Residence – The One & Only Golf Residence in Indonesia

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Enhancing Kota Jababeka's value proposiDon: Bekasi Power Plant

Integrated Power GeneraDon & DistribuDon Process

PLN Factories

100% output to PLN Buy back from PLN (+16% margin)

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Direct sale to factories (+ margin)

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OperaDonal Highlights

• 130MW gas fired combined cycle plant
• 20 year 100% off-take agreement from Perusahaan Listrik Negara

(“PLN”)

–

Rate per KWH: ~US$11 cents

–

Average gas cost / MMBTU: ~US$9.0 - 10.0

–

Fuel costs borne by PLN on a pass-through basis

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Fully contracted gas supply

–

Flexibility to buy back power and resell it at a premium

• In 2Q 2016, a leakage was found in a boiler of one of the Heat

Recovery Steam Generators of the power plant. The repair was successfully completed in mid August 2016. During the repair, power plant operated at about 50% of the usual capacity

Financial Highlights

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IDR billion DescripDon 2014 2015 2016 9M17 Net Dependable Capacity 118.8MW 120MW 120MW 120MW Load Factor 108MW 110MW 93MW 107.1MW Capacity factor 90.01% 90.01% 81.85% 93.05% Equivalent Availability Factor 90.34% 96.39% 82.85% 98.06% Planned Outage Factor 7.88% 3.09% 15.15% 1.16% Equivalent Forced Outage Rate 1.78% 0.52% 2.00% 0.29%

Providing a significant marke4ng advantage over its compe4tors as access to reliable electricity supply is one of the primary concerns for industrial clients in Indonesia KIJA is the only industrial estate developer in Indonesia with its own power plant located within its estate

1,062 1,267 1,499 1,309.6 1,149 82 155 215 164 189 7.7% 12.2% 14.3% 12.5% 16.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0%

• 200

400 600 800 1,000 1,200 1,400 1,600 2013 2014 2015 2016 9M17

Revenue Gross Profit Gross Profit Margin

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Enhancing Kota Jababeka's value proposiDon: Cikarang Dry Port

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Notes: 1 Estimated % of total throughput at Tanjung Priok Port originating from this area

…with excellent transport connec4vity Strategic locaDon in the heart of the largest manufacturing zone along the Bekasi-Cikampek industrial corridor…

InternaDonal Port Code: IDJBK Surrounded by 11 Industrial Estates and more than 3,000 manufacturing companies

JABABEKA MM 2100 EJIP LIPPO HYUNDAI SURYA CIPTA KIKC KIM KBI KIIC GIIC

62%1

Cikarang Utama Toll Gate New Toll Gate KM 29 Flyover to Jakarta Highway Exit KM 29

Enhanced Accessibility with New Toll Gate KM 29

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Enhancing Kota Jababeka's value proposiDon: Cikarang Dry Port

FaciliDes & services offered at Cikarang Dry Port

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Container Yard Reefer Services Terminal OperaDon 24/7 Bonded Trucking Container Freight StaDon Rail Freight Service 24/7 Security

CFS Gate Bonded Logistics Center Office: CDP, Quarantine, Banking New 10,000 m2 warehouse Mobile X-Ray Physical Inspection Reefer To Jakarta / Tanjung Priok To Surabaya Railway Emplacement New Customs Office

Bonded LogisDcs Center Special Containers Handling Integrated Customs & QuaranDne Empty Container Depot Online Tracking & INSW Connected

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5,995 25,808 37,507 50,844 65,250 54,191

• 10,000

20,000 30,000 40,000 50,000 60,000 70,000 2012 2013 2014 2015 2016 9M17 15 62 78 120 151 124

• 20

40 60 80 100 120 140 160 2012 2013 2014 2015 2016 9M17

Enhancing Kota Jababeka's value proposiDon: Cikarang Dry Port

Overview

• Since 2012, Cikarang Dry Port is an official port of origin and

des_na_on with interna_onal port code IDJBK – now connected with 29 major shipping lines

• Integrated port and logis_cs facili_es with mul_ modal

transporta_on services

• Besides export/import, CDP also serves as hub for domes_c

distribu_on via main railway line that runs from west Java to east Java

• Bonded Logis_cs Centre (FTZ facili_es) for Coxon & minerals/

metals with a 2nd warehouse completed in 1Q 2017 to accommodate more coxon traders and other commodi_es

Revenue (IDR billion) Throughput (TEU)

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Selected customer & partner profile at Cikarang Dry Port

Shipping Lines: Third Party LogisDcs Provider (3PL): Shippers / Consignees:

Strong momentum in CDP operaDons

…allowing customers to more efficiently manage their imports and exports and benefit from cost savings Cikarang Dry Port (CDP) is the first and only integrated customs, quaranDne and logisDcs facility in Indonesia…

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64 210 344 415 424 346 26.8% 15.5% 21.6% 22.2% 24.6% 23.6% 10.0% 15.0% 20.0% 25.0% 30.0% 200 400 600 800 1,000 1,200 1,400 1,600 1,800 2,000 2012 2013 2014 2015 2016 9M17

Recurring EBITDA Recurring Revenue EBITDA Margin

Sizeable and stable USD-denominated recurring income base

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Notes: 1 Recurring revenue/EBITDA includes contribu_on from power plant, dry port and service & maintenance fees 2 Comprises real estate, golf and other non-infrastructure segments

Real Estate(2) Recurring(1)

2012

IDR 1,401 billion

IDR 2,799 billion

17% 83%

57% 43% 59% 41% 2014 2016 IDR 2,931 billion 240 1,592 1,349 1,868 1,723 1,466

…based on USD pricing terms (power & water), further enhancing stability and visibility of cash flows for Jababeka and also providing a natural hedge for its USD-denominated interest expenses… The provision of these infrastructure services has enabled the progressive build out of a significant recurring revenue base…

Total Revenue & Breakdown Recurring revenue (IDR billion)

…Furthermore, US$ 200 million no4onal is hedged by means of call spreads with an average lower strike

• f 13,021 Rupiah and an average upper strike of 15,997 Rupiah

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Diversified land bank

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PosiDoning Real Estate(2): 41% Recurring(3): 59% Land Bank Total(1): 3,365ha Kota Jababeka Kendal Industrial Park – Park by the Bay Tanjung Lesung PosiDoning

Established MNCs and domes_c companies willing to pay a premium for strategic locaDon and mature t o w n s h i p w i t h t o p n o t c h infrastructure in place More cost-conscious customers looking for an alternaDve to Greater Jakarta industrial estates that sDll provides top notch infrastructure Tourism, leisure and hospitality focused integrated township to tap into entertainment/leisure spending by rising middle class in Indonesia

Notes: 1 As per 30 September 2017 and excluding Morotai, with 29ha of land bank 2 Comprises real estate, golf and other non-infrastructure segments 3 Recurring revenue includes contribu_on from power plant, dry port and service & maintenance fees

…in addi4on to benefi4ng from future infrastructure developments across its land bank loca4ons A geographically diversified land bank allows KIJA to capture different market segments and enhances earnings resilience…

Diversified by geography, posiDoning and segment Well diversified across mulDple segments (Breakdown of segments by 2016 revenue contribuDon)

3% 6% 7% 1% 2% 45% 14% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Land Industrial Commercial Residen_al Tourism Golf Power Plant Service & Maintenance

1,231ha 583ha 1,551ha

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Diversified projects: Kendal Industrial Park – Park by the Bay

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Tanjung Emas InternaDonal Seaport (Indonesia's 3rd largest) 25 km Ahmad Yani InternaDonal Airport 20 km Semarang (Central Java capital) 21 km

Semarang Tanjung Emas Seaport Ahmad Yani Int'l Airport Kendal Port

Total planned area: 2,700 hectares Phase 1: 860 ha (583 hectares as of 30 September 2017) 49% 51% Distance to Kendal Industrial Park – Park by the Bay

…and complemented by KIJA’s long track record and experience in Indonesia industrial estate developments and infrastructure opera4ons Kendal Industrial Park – Park by the Bay benefits from Sembcorp's experDse in developing and markeDng industrial zones across Asia (China, Vietnam, Batam, Bintan, etc)…

Kendal Industrial Park – Park by the Bay is a JV between KIJA and Sembcorp Excellent connecDvity to major infrastructure in Central Java

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Official opening ceremony on November 14th 2016 by the President of Indonesia, Mr Joko Widodo, and the Prime Minister of Singapore, Mr Lee Hsien Loong

Diversified projects: Kendal Industrial Park – Park by the Bay

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Key Highlights

• Kendal Industrial Park – Park by the Bay offers customers an affordable product with top notch infrastructure
• Low labour costs in Central Java makes Kendal Industrial Park – Park by the Bay par_cularly interes_ng for

labor intensive industries

• Kendal Industrial Park – Park by the Bay is situated along the Jakarta-Semarang-Surabaya Economic Corridor
• Increasing traffic conges_on at Tanjung Priok Port in Jakarta has led to growing interest in alterna_ve sites

with good connec_vity via air and sea

Our Kendal Industrial Park – Park by the Bay development in Central Java is well-posiDoned to benefit from growing demand for relaDvely low cost industrial estates with good connecDvity and compeDDve labor costs

Diverse mix of occupants across sectors (breakdown by number of occupants) – As of 30 September 2017

Manufacturing, 34% Logis_cs, 19% Building Materials, 16% Furniture, 13% F&B, 9% Others, 9%

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Diversified projects: Kendal Industrial Park – Park by the Bay

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Diversified projects: Tanjung Lesung

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President Joko Widodo speaking on Tanjung Lesung’s designaDon as Special Economic Zone for Tourism

Tanjung Lesung overview

LocaDon ~ 170 km southwest of Jakarta in Banten Concept Tourism-based integrated township (hotels, apartments, sailing, diving & beach clubs) Access Currently accessible by toll road from Jakarta in ~ 3.5 hours

Australia Indonesia Malaysia Singapore Tanjung Lesung

Merak Anyer Krakatau Mountain Labuan Pandeglang Panimbang Future Toll road Panaitan Island Ujung Kulon NaDonal Park

Jakarta

Serang Jakarta-Merak Toll Road SOEKARNO – HATTA InternaDonal Airport

Tanjung Lesung

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Diversified projects: Tanjung Lesung

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Strong government support for development of Tanjung Lesung

One of 10 New Tourism Des_na_ons in Indonesia that the Indonesian Government is

promo_ng

New toll road from Serang Timur to Panimbang: A consor_um led by PT Wijaya Karya Tbk

(Persero) won the tender for this project, land acquisi_on and prepara_ons for construc_on are underway

Tanjung Lesung has been designated as Special Economic Zone for Tourism

FaciliDes and infrastructure at Tanjung Lesung

• Exis_ng infrastructure includes access roads, a water treatment plant, wastewater treatment

plant, electricity supply and telecommunica_on links

• Visitors currently have access to ~ 300 rooms spread out over two hotels/resorts, a bed and

breakfast and several coxages

• Other facili_es: restaurant and bar, driving range, a swimming pool, a spa, a beach club, a sailing

club, school, mosque, residen_al housing units, and a medical clinic

…is expected to increase interest from poten4al investors/partners for the project

Villa with private pool at Tanjung Lesung Golf course Aerial view

Strong government support for Tanjung Lesung's development as a tourism zone...

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Diversified projects: Tanjung Lesung

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KALICAA VILLA

Current property products

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• Morotai is a Special Economic Zone for tourism and 1 of 10

new tourism desDnaDons promoted by the government

Strategically located in the Halmahera group of eastern

Indonesia’s Maluku islands, in the heart of Pacific Asia in between Asia and Australia

3 hours flight from Singapore and Taipei

Morotai

Beach view at Morotai Evening view at Morotai

• Great potenDal for tourism, agricultural and fishing

industries and as a logisDcs hub

• PT Jababeka Morotai has been appointed as the implemen_ng

en_ty of the Morotai development project by the Coordina_ng Ministry of Economic Affairs of the Republic of Indonesia

• Currently holds 29ha of land bank at Morotai for development

Future tourism and logisDcs hub strategically located in the heart of Pacific Asia with natural tropical beauty and World War 2 charm

4 Diversified projects: Morotai

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Clear strategic focus

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Long Term Vision

Short Term Medium Term

• Con_nue to develop and capitalize on

Kota Jababeka Township

• Further development of Kendal

Industrial Park in partnership with Sembcorp in Central Java

• Development of Tanjung Lesung

tourism-based township

• Replicate Kota Jababeka's industry-based integrated township model throughout Indonesia
• Build out an infrastructure facility porholio (power, water, ports, etc.) to support these new townships

KIJA's exisDng pipeline provides visible opportuniDes over different Dme frames

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380 101 399 331 427 166 50 100 150 200 250 300 350 400 450 2012 2013 2014 2015 2016 9M17 741 1,019 1,130 1,167 1,025 676 53% 37% 40% 37% 35% 29% 0% 10% 20% 30% 40% 50% 60% 200 400 600 800 1,000 1,200 1,400 2012 2013 2014 2015 2016 9M17

EBITDA EBITDA margin

860 1,171 1,252 1,389 1,243 858 61% 43% 45% 44% 42% 37% 0% 10% 20% 30% 40% 50% 60% 70% 200 400 600 800 1,000 1,200 1,400 1,600 2012 2013 2014 2015 2016 9M17

Gross profit Gross profit margin

240 1,349 1,592 1,868 1,723 1,466 1,161 1,390 1,207 1,272 1,208 863

• 500

1,000 1,500 2,000 2,500 3,000 3,500 2012 2013 2014 2015 2016 9M17

Recurring revenue Real estate & other revenue

Strong financial performance...

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Notes: 1 Approximate unrealized foreign exchange loss (non cash) for FY12: IDR 62 billion, FY13: IDR 420 billion, FY14: IDR 65 billion, FY15: IDR 156 billion and 9M17 IDR 26 billion 2 FY16 ncludes unrealized foreign exchange gains (non cash) of approximately IDR 135 billion

Revenue breakdown (IDR billion) Gross profit (IDR billion) and Gross profit margin (%) EBITDA (IDR billion) and EBITDA margin (%) Net income (IDR billion)

1,401 2,799 2,739 3,140 2,931 2,329

(1) (1) (1) (1) (2) (1)

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3.2 3.8 3.8 3.4 3.1 3.5 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 2012 2013 2014 2015 2016 9M17 2,046 2,572 2,705 3,510 3,565 3,810 3,975 4,186 4,662 4,978 5,638 5,851 0.51 0.61 0.58 0.71 0.63 0.65 0.00 0.10 0.20 0.30 0.40 0.50 0.60 0.70 0.80 0.90 1.00 1,000 2,000 3,000 4,000 5,000 6,000 2012 2013 2014 2015 2016 9M17

Total debt Total equity Debt/Equity

2,000 4,000 6,000 8,000 10,000 12,000 2012 2013 2014 2015 2016 9M17

Cash and cash equivalents Total assets

Robust balance sheet posiDon…

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Notes: 1 Includes capitalized interest + Hedging Fees

Assets and cash (IDR billion) Debt, Equity (IDR billion) and Debt/Equity (x)

EBITDA/Interest expense (x)1

Net debt/LTM EBITDA (x)

6,836 7,911 7,660 8,914 9,942 10,208

2.4 1.9 1.9 2.3 2.7 3.2 0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 2012 2013 2014 2015 2016 9M17

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Experienced management team

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Board of Commissioners Board of Directors

Setyono Djuandi Darmono President Commissioner (Founder) Bacelius Ruru Vice President Commissioner Independent Commissioner Hadi Rahardja Commissioner (Founder) Gan Michael Commissioner Budianto Liman President Director SeDawan Mardjuki Director Hyanto Wihadhi Director Sutedja Sidarta Darmono Director Tjahjadi Rahardja Director Ketut Budi Wijaya Commissioner / Independent Commissioner

Average of more than 20 years of industrial township development experience

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6.2 6.0 5.6 5.0 4.9 5.0 5.0 5.1 5.1 4.9 0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 2011 2012 2013 2014 2015 2016 2017E 2018F 2019F 2020F 175 221 270 307 366 397 431 76 92 128 156 180 216 262 251 313 398 463 546 613 693 100 200 300 400 500 600 700 2011 2012 2013 2014 2015 2016 2017 FDI Domes_c Direct Investment Total 1,372 1,339 327 261 208 197 191 165 147 129 128 105 105 96 93 83 81 81 81 69 66 65 59 57 57 53 51 50 49 46

• 200

400 600 800 1,000 1,200 1,400 1,600 China India US Indonesia Brazil Pakistan Nigeria Bangladesh Russian Mexico Japan Ethiopia Philippines Vietnam Egypt Germany Congo Iran Turkey Thailand UK France Italy Tanzania South Africa Myanmar Korea Kenya Colombia Spain 56 62 81 114 118 159 174 169 187 192 50 100 150 200 250 2008 2009 2010 2011 2012 2013 2014 2015 2016 Q3 2017

Favourable macro and sector fundamentals

Source: Sta_s_cs Indonesia, EIU – February 2018

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Source: BKPM Source: EIU Popula_on Data as of February 2018 Source: Colliers Indonesia Interna_onal research Q3 2017

Strong real GDP growth outlook (%) ConDnued growth in direct investments – both FDI and domesDc (IDR trn) Sizeable domesDc market size — world's 4th largest populaDon Greater Jakarta average industrial land prices (USD/sqm)

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2,000 4,000 6,000 8,000 10,000 12,000 2010 2011 2012 2013 2014 2015 2016 2017 Mining Transport, Storage & Communica_on Electricity, Gas & Water Supply Construc_on

Favourable macro and sector fundamentals

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Upgrading of Infrastructure

• Capital spending on ailing infrastructure network

gained trac_on from late 2015

• Upgrades to ports, roads, toll roads and power

plants − Jakarta airport railway − Trans-Sumatera toll road − New Jakarta container terminal (New Priok) − New Terminal 3 at Jakarta airport

• Equity injec_ons into infrastructure-related State

Owned Enterprises (“SOEs”)

• Further streamlining and improvements to the land

acquisi_on process cri_cal for infrastructure development and a bigger budget allocated to the new land acquisi_on agency DeregulaDon of Investment and Tax IncenDves

• Improvement in investment climate via cuzng red

tape and easing bureaucracy

• Restric_ons on foreign par_cipa_on in several

logis_cs related sectors have been loosened

• Licenses have already been granted to operate

bonded logis_cs centre

• Secured funding from interna_onal development

agencies

• Introduced many regulatory reforms to create a

more conducive environment for private sector par_cipa_on in infrastructure

1 2

Source: PWC: Indonesian Infrastructure Report ; Ministry of Finance; BKPM

Government Budget on Infrastructure Spend in Indonesia (IDRtrn) Government iniDaDves to sDmulate industry FDI in Infrastructure-related Sectors in Indonesia (USDbn)

9,320 9,637 8,818 9,015 10,298 11,291 5,819 10,742

178 290 317 387 409 139 209 2014 2015 2016 2017 2018 Budget Actual

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Thank You

www.jababeka.com