Role of IIGF in Accelerating Indonesia s Infrastructure Development

Transcription

1 Role of IIGF in Accelerating Indonesia s Infrastructure Development Muhammad Wahid Sutopo Executive Director of Business IIGF 2018 PT Penjaminan Infrastruktur Indonesia (Persero)

2 Agenda Think Big :Closing the Gap on Indonesia Infrastructure Needs 1 Think BIG-1 : Beyond Indonesia s Government Budget 2 Think BIG-2 : Beyond Infrastructure Guarantee Scheme 3 Think BIG-3 : Better in Project Governance & debottlenecking PPP Projects 2018 PT Penjaminan Infrastruktur Indonesia (Persero)

3 Think BIG Closing the Gap on Indonesia s Infrastructure Needs 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 3

4 Current & Needs Gap Indonesia s Infrastructure Need: Closing the Gap Closing Infrastructure Gap to bolster Competitiveness ASEAN Infrastructure Investment Gap Infrastructure Quality Rank Country Rank 17/18 Rank 16/17 Singapore 2 2 Malaysia Thailand Indonesia Brunei Vietnam Source: The Global Competitiveness Report Singapore Malaysia Myanmar Thailand Philippines Cambodia Vietnam Indonesia Current Investment Investment Need GDP Gap Currently with the largest GDP and population in ASEAN, Indonesia need to develop its infrastructure stock and quality to secure Indonesia s GDP steady growth and to stay competitive in ASEAN market PT Penjaminan Infrastruktur Indonesia (Persero) 4

5 Infrastructure investment as a % of GDP Indonesia s Infrastructure Need: Closing the Gap Low Infrastructure Stock hampered by limited investment Infrastructure Stock 179% 10 Infrastructure Investment Average: 70% (not include Japan and Brazil) 8 49% 57% 58% 58% 64% 71% 73% 76% 80% 82% 87% 38% % 2 0 Source: World Bank (2015), Mckinsey Global Institute Report (2013) Average ( ) Average ( ) Indonesia also lagged behind most G20 nations for level of infrastructure stock in proportion of GDP with infrastructure investment remain flat still relying on increasingly limited government and SOE budget with private participation remains low 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 5

6 Focus to develop Indonesia s Infrastructure Aim for basic need, leading sector, and urban infrastructure development Fulfillment of Basic Needs 100% drinking water access 100% sanitation access 96.6% electrification ratio Livable housing access Border & underdeveloped regions accessibility Transportation safety & security Flood Control Connectivity Maritime Highway + Regional Development/ Growth Center Developed Area Intermodal Infrastructure to Support Leading Sectors Marine Highway Port Area Intermodal Intermodal Regional Development/ Growth Center Broadband Development: Palapa Ring Broadband plan: e-government, e-health, e- Education, e-procurement, e-logistic, e- Energy Commerce. Development: 35 GW Target 1,200 kwh/capita in 2019 (current facts: Vietnam 1,300 kwh/capita, Malaysia 4,400 kwh/capita) Under- Developed Area Leading Sector Agriculture Manufacturing Service and Tourism Urban Infrastructure Network to support journey efficiency Development of road, mass transport system & intermodal Improve the capacity and quality of the urban road network Urban Transport Development Concept Avoid Shift Increased share of public transport Develop sustainable urban transport Energy for urban transport Improve Increased utilization technology Urban infrastructure development by ICT utilization toward smart cities Transportation Institutional integration Source: National Planning Agency (Bappenas) PT Penjaminan Infrastruktur Indonesia (Persero) 6

7 Think BIG 1 Beyond Indonesia s Government Budget 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 7

8 Investment target Indonesia s Infrastructure Need for Financing GoI s Fiscal Policy and Support for Private Sectors to Close Infrastructure Financing Gap APBN/ APBD 41.3% SOE US$ 80 Bn US$ 148 Bn 22.2% Private Sector US$ 131 Bn 36.5% Closing the GAP Fiscal tools for PPP Scheme 1. Project Development Fund 2. Viability Gap Funding 3. Availability Payment 4. Guarantee 5. Infrastructure Financing 6. Land Acquisition Support US$ 358 Bn 225 National Strategic Project 30 National Priority Project Social Infrastructure Project Others 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 8

9 Challenges in Attracting Private Investment How Government policies facilitate and support PPP infrastructure projects Capacity Gap for well-prepared PPP Projects Lack of capacity for CA s to screen and develop projects Lack of knowledge among CA s key decision maker and personnel for PPP concept and process needed Need for assistance to develop project feasibility studies GoI Support for Project Development MoF s Project Development Facility (PDF) Capacity Building by PPP Office and IIGF Institute PPP Project Pipeline Screening Coordination & Support by BAPENAS & PPP Joint Office Less than Feasible Infrastructure Projects (Social Infrastructure etc ) Lack of fiscal capacity especially in sub-national level. Needs for fiscal facility and mechanics to support project bankability/feasibility for financing. Need for financing for land acquisition GoI Fiscal Support & Policy 1. Viability Gap Fund (VGF) 2. Availability Payment scheme 3. Government Construction Support 4. Government Guarantee through IIGF 5. Land Acquisition Fund via LMAN Risks and Uncertainties hinder Financing Contract/concession termination risks due to change of government/administration Regulatory uncertainties particularly in municipal level Coordination issue between line ministry and Cas High cost of financing for infrastructure project GoI Facilities Government Guarantee through IIGF Ministry of Home Affair regulation for PPP at sub-national level PPP Office Assistance for Debottlenecking and Coordination among line ministries Infrastructure financing by PT SMI 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 9

10 Government Support for Infrastructure Facilities and entity available to support PPP Projects in Indonesia Project Planning & Preparation Bidding/Selecti on Project Construction Facilities Pre-Feasibility Studies Project Development Fund Viability Gap Funding or Availability Payment Guarantee Fund Land Acquisition Financing Managing Entity Ministry of Planning; CAPID Ministry of Finance Ministry of Finance Ministry of Agrarian and Spatial Planning ; LMAN PT SMI 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 10

11 Ecosystem for PPP Projects Facilities and entity available to support PPP Projects in Indonesia Planning and Preparation Outline Business Case & Final Business Case Prepared by Central Planning Agency (BAPENAS) or Contracting Agency Planning & Preparation Transaction Advisory Transaction Advisory Assisting CA on the transaction process from RfP preparation through bidding process and winner selection provided by PDF from MoF Financing By SMI, IIF, Banks or Lenders Guarantee Guarantee by IIGF or MoF Financing PPP Infra structure Guarantee Ministerial Support Viability Support Viability Gap Fund Land acquisition Fund Construction Support 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 11

12 Think BIG-2 : Beyond Infrastructure Guarantee Scheme 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 12

13 IIGF Overview PT PII COMPANY Mandate Portfolio Regulation 100% Owned by Government of Indonesia Under direct supervision of the MoF Formed as a State-Owned Enterprise (SOE) as a Single Window in providing guarantees for infrastructure projects Providing Government guarantees for infrastructure projects. Providing support and assistance for infrastructure project preparation and transaction Provides guarantees for 16 PPP projects with total projects value of Rp176 trillion Aiming for Rp210 trillion guarantee project value by end 2018 Presidential Regulation No. 38/2015 Presidential Regulation No. 78/2010 Ministry of Finance Regulation No. 8/PMK.08/ 2016 amending MoF Regulation No.260/PMK.011/ PT Penjaminan Infrastruktur Indonesia (Persero)

14 2017 Performance Highlight 22X LEVERAGING RATIO Rp36T GUARANTEE COVERAGE +227 bps FUND MANAGEMENT 0 Potential (State) Loss 82,6 GCG SCORE Rp178.9 T Gearing Ratio of 3.47X Rp705 B BPK BPKP Value of projects guaranteed compares to equity Guarantee coverage compares to equity Investment rate of return over 6 months treasury yield (SPN) All recommendations from Supreme State Auditors (BPK) had been fulfilled Awarded Good attribute for GCG Practices 2018 PT Penjaminan Infrastruktur Indonesia (Persero)

15 IIGF Main Strategic Role PPP Guarantee IIGF guarantees the performance of the Contracting Agencies under PPP Agreement, aimed at improving the bankability/creditworthiness of the projects to attract more private investments Capacity Building IIGF provide PPP Capacity Building program for project key stakeholders (officers, regional leaders, lawmakers etc) to enable them in planning and preparing PPP project. The program is jointly organized by IIGF Institute and Indonesia PPP Office (located in the premise of IIGF) Project Development Advisory IIGF helps CA s to develop comprehensive and measurable PPP project development process through IIGF s professional and advisory service under the assignment of Ministry of Finance PT Penjaminan Infrastruktur Indonesia (Persero)

16 Why IIGF s Guarantee SAFEGUARD IIGF guarantee to ensure the continuation of the project through a careful analysis of safeguard. RISK IIGF guarantee process will ensure fair risk allocation between government and private investor and implement clear risk mitigation (Mirroring World Bank Safeguard Policy) As written in IIGF Operation Manual BANKABILITY IIGF Guarantee to provide more comfort for financier to support the project, thus reducing the cost of fund for project financing. VALUE PROPOSITION TRANSPARENCY IIGF guarantee will increase the project credibility to the bidders thus increasing bidding competition resulting the most optimal project investment ACCOUNTABILITY IIGF guarantee provision process can be verified ensuring project accountability PT Penjaminan Infrastruktur Indonesia (Persero) 16

17 IIGF Guarantee Coverage Typical Risk Covered under IIGF guarantee Pre-construction Construction Operation Payment risk Tariff adjustment risk Discriminatory change in law (project specific) Delays in necessary approval (Early) termination by government Land acquisition Project s Budget approval 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 17

18 IIGF Guarantee Business Model Lender/ Creditor Sponsor Debt Equity Contracting Agency (Ministry/Agency Provincial/Municipal Government) PPP Agreement SPV/ Implementation Entity Guarantee Application Risk Mitigation Plan Recourse Agreement Guarantee Agreement Ministry of Finance Guarantee Regulation Equity Co-Guarantee Liquidity Facility Multilateral Agency Counter Guarantee 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 18

19 IIGF Guarantee Process Stages for IIGF Guarantee Financial Close Winning Bidder & Signing Final draft: PPP Agreement Guarantee Agreement Final RfP Proposal Submission & Evaluation One-on-One Negotiation RFP Draft GAP Submission PQ process PPP Project Screening Form submission to IIGF Structuring Signing : PPP Agreement Guarantee Agreement Recourse Agreement In Principle Approval Pre-FS Finalisation & GAP Preparation Appraisal Letter of Intent Consultation & Guidance Screening Confirmation to Proceed 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 19

20 19 Infrastructure Sectors supported by IIGF Guarantee According to Presidential Regulation no 35 year 2015 on PPP 20 Sport Facility Health Industrial Estate Transportation Public Housing Correctional Facility Urban Facility Tourism Energy Conservation Roads Electricity Water & Irrigation Drinking Water Telecommunication Waste Education Sewage Treatment Sewage Treatment (Centralized) (Local) Oil & Gas Renewable Energy 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 20

21 IIGF Facilitation during PPP Project Lifecycle IIGF may assist CA as early as planning up to operation stages for guarantee and project support PLANNING PREPARATION TRANSACTION OPERATION Project Development Facility MoF PQ RfP Bid Award Fin. Close IIGF Support for CA s Project Identification and Assessment for PPP Preliminary Study Capacity Building Outline Business Case (OBC) Final Business Case (FBC) Risks allocation and mitigation plan Capacity Building for Preparation & Transaction Stages Bid preparation Negotiation Lenders coordinat ion Assistance and Risk Mitigation Framework for the CA s IIGF Guarantee Project Screening for Guarantee Underwriting Guarantee Agreement Process Guarantee Monitoring Guarantee Consultation Appraisal 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 21

22 PPP Modality/Schemes IIGF provides guarantee for the schemes 22 PPP Scheme FLOW OF SERVICE & REVENUE RISK ALLOCATION - Demand USER PAY e.g. Toll Road (BOT Scheme) Implementing Entity Service Tariff Users On Private (Projects with commercial risks profile) GCA AVAILABILITY PAYMENT e.g. Regional Hospital AP Implementing Entity Tariff On Public (Project with sub-commercial risk profile) Service Users 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 22

23 PPP Pipeline: Current and Potential PPP Sector & Projects under Development 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 23

24 Indonesia PPP Project with IIGF Guarantee 14 PPP Infrastructure Projects in 4 sectors valued USD 8,2 billion with IIGF guarantee of USD 2.1 bio TOLL ROAD SER-PAN 83,9 KM USD 395* Million WATER LAMPUNG CITY 500 Lt/second USD 100 Million PALAPA RING WEST 1980 KM USD 95 Million PALAPA RING CENTRAL 2647 KM USD, 103 Million TOLL ROAD MANADO BITUNG 39 KM USD 254 Million PALAPA RING EAST 8454 KM USD 380 Million TOLL ROAD JAK-PEK II 36,4 KM USD 1,09 Billion TOLL ROAD CISUMDAWU 60,27 KM TOLL ROAD BAL-SAM 98 KM USD610 Million TOLL ROAD BAT-SEM 75 KM USD 820 Million CENTRAL JAVA POWER PLANT 2 x 1000 MW USD 3,1 Billion TOL ROAD PAN-MAL 38 KM USD 418 Million WATER UMBULAN 4000 Lt/second USD 157 Million TOLL ROAD KR-LG-BU-MN 38,2 KM USD 673 Million USD 455 Million *est.project value in USD 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 24

25 Indonesia PPP Project Profiles Supported with IIGF Guarantee 25 1 CJPP Project 2 Umbulan Water Supply Project Power Plant wit 2x1000 MW in Batang, Central Java Bulk Water distribution channel of l/second through out 5 municipal/city of East Java province USD 3.1 Billion GA Effective USD 157 million GA Effective Guarantee Period 16/21 Years Monthly Payment Termination (Co-Guarante) Government) Contracting Agency: PLN Guarantee Period 15 Years Monthly Payment Termination Contracting Agency: East Java Provincial Gov t Power Sector Water Sector The project required land acquisition process for almost 5 years. IIGF had an active role as a Chairman of the Joint Monitoring Committee until Financial Close was achieved. The project required 43 years to begin the construction after being supported by the PDF & VGF from the Government and Guarantee facility from IIGF PT Penjaminan Infrastruktur Indonesia (Persero)

26 Indonesia PPP Project Profiles Supported with IIGF Guarantee 26 Palapa Ring Project is the first PPP project with Availability Payment scheme in Indonesia developed by Ministry of Communication and Information as Contracting Agency (CA). The projects are completed in less than a year and with the role of IIGF in facilitating the projects and strong commitment from CA. 3 4 Palapa Ring West Project Palapa Ring Central Project 5 Palapa Ring East Project Backbone network across 5 cities in West region of Indonesia ; Km sea and land USD 95 million GA Effective Backbone network across 17 cities in Central region of Indonesia ; Km sea and land USD 103 million GA Effective Backbone network across 35 cities in East region of Indonesia Km sea and land USD 380 million GA Effective Guarantee Period 15 Years Availability Payment Termination Guarantee Period 15 Years Availability Payment Termination Guarantee Period 15 Years Availability Payment Termination Contracting Agency: MoCI Contracting Agency: MoCI Contracting Agency: MoCI ICT Sector PT Penjaminan Infrastruktur Indonesia (Persero)

27 Indonesia PPP Project Profiles Supported with IIGF Guarantee 27 6 Batang Semarang Toll Road 7 Manado-Bitung Toll Road 8 Pandaan-Malang Toll Road 75 Km Toll Road from Batang to Semarang in Central Java province USD 820 million GA Effective Guarantee Period 15 Years Land acquistion advance fee Land Acquisition Limited Liquidity Fund Toll fee Adjustment Termination 39 Km Toll Road from Manado to Bitung in North Sulawesi USD 254 million Guarantee Period 15 Years Land acquisition advance fee Land Acquisition Limited Liquidity Fund Toll fee adjustment Termination GA Effective 38 Km Toll Road from Pandaan to Malang in East Java province USD 418 million GA Effective Guarantee Period 15 Years Land acquisition advance fee Land Acquisition Limited Liquidity Fund Toll fee adjustment Termination 9 Balikpapan-Samarinda Toll 1 0 Road 99 Km Toll Road from Balikpapan to Samarinda in East Kalimantan province USD 455 million GA Effective Jakarta-Cikampek (Elevated) 36 Km Toll Road from Jakarta to Cikampek USD 1.09 billion GA Signed 1 1 Cisumdawu Toll Road 60 Km Toll Road from Cileunyi to Dawuan through Sumedang in West Java province USD 610 million GA Signed Guarantee Period 15 Years Land acquisition advance fee Land acquisition Limited Liquidity Fund Toll fee adjustment Termination Guarantee Period 15 Years Toll fee adjustment Political Risk Termination (Co-Guarantee Government) Guarantee Period 15 Years Land acquisiton advance fee Land Acquisition Toll fee adjustment Political Risk Termination (Co-Guarantee Government) Toll Roads Sector PT Penjaminan Infrastruktur Indonesia (Persero)

28 Indonesia PPP Project Profiles Supported with IIGF Guarantee Krian-Legundi-Bunder-Manyar Toll Road 38 Km Toll Road from Krian to Manyar through Lengudi and Bunder in East Java province 1 3 Serang-Panimbang Toll Road 84 Km Toll Road from Serang to Panimbang in West Java province USD 673 million GA Signed USD 395 million GA Signed Guarantee Period 15 Years Land Acquistion Toll fee adjustment Political Risk Termination (Co-Guarantee Government) Guarantee Period 15 Years Land acquisition advance fee Land Acquisition Toll fee adjustment Political Risk Termination (Co-Guarantee Government) Toll Roads Sector PT Penjaminan Infrastruktur Indonesia (Persero)

29 Indonesia PPP Project with IIGF Guarantee 3 PPP Showcase Projects supported by IIGF Guarantee attracting private investors and lenders both domestic and foreign 1 2 Bangun Cipta Kontraktor PPP Scheme (with Tariff and Viability Gap Fund) Umbulan Drinking-Water Facility Year: 2016 Project Value: US$152.0 million PPP Scheme (with Government Guarantee and Success Fee) Coal-Fired Power Plant Central Java 2x1000 MW Year: 2016 Project Value: US$ 4,200.0 million 3 PPP Scheme (with Availability Payment) Palapa Ring West, Central, and East Packages Year: 2016 Project Value: US$ million 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 29

30 2018 PPP Office Pipeline Status 12 PPP Project under construction with 41 projects under development PLANNING PREPARATION TRANSACTION CONSTRUCTION Preliminary study Outline Business Case (OBC) Final Business Case (FBC) Tender Preparation PQ Request for Proposal Bid Award PPP Agreement Signing Financial Close 1. UNDIP s Marine Institute 2. ITB Cirebon 3. UGM Teaching Hospital 4. UIN Malang Dormitory 5. UIN Jakarta Teaching Hospital 6. UIN Makassar 7. Bandung Smart Classroom 1. Yogya - Solo Toll Road 2. Yogya - Bawen Toll Road 3. Bitung Port 4. Surakarta Street Lighting 5. Multifunction Satellite 6. Pirngadi Hospital 7. University of Udayana Teaching Hospital 8. Dharmais Cancer Hospital 9. Polytechnic Batam Education Facility Development 10. National Integrated Welfare System 11. Papua Sports Arena 12. Nusakambangan Industrial Correctional Facility 13. Correctional Facility Relocation 1. Semarang Demak Toll Road 2. Surabaya - Madura Toll Bridge 3. Tanjung Sauh Port 4. Batu Ampar Port 5. Hang Nadim Airport 6. Medan Municipal Transport 7. Batam LRT 8. Pekanbaru Regional Water Supply 9. Pondok Gede Water Supply 10. West Semarang Water Supply 11. Legok Nangka Waste Treatment 12. Bandung Street Lighting 13. University of Sam Ratulangi Teaching Hospital 14. Sidoarjo General Hospital 1. Serang Panimbang Toll Road 2. Jakarta - Cikampek South Toll Road 1. Jatiluhur Regional Water Supply I (unsolicited) 1. Nambo Regional Waste Management 2. Probowangi Toll Road 3. Bandar Lampung Water Supply Cisumdawu Toll Road 1. Manado - Bitung Toll Road 2. Balikpapan - Samarinda Toll Road 3. Pandaan - Malang Toll Road 4. Krian - Legundi - Bunder - Manyar Toll Road 5. Jakarta - Cikampek Elevated II Toll Road (unsolicited) 6. Batang - Semarang Toll Road 7. Serpong - Balaraja Toll Road 8. Umbulan Water Supply 9. Central Java Power Plant 10. Palapa Ring (3 projects) TOTAL: US$ 6.8 billion + 12 under calculation TOTAL: US$ 4.1 billion TOTAL: US$ 8.8 billion 2018 PT Penjaminan Infrastruktur Indonesia (Persero) Source: Bappenas PPP Book and PPP Office Project Pipeline 30

31 Think Big-3 : Better in Governance and Coordination 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 31

32 Better in Governance Collaboration of key Ministries and IIGF for PPP project acceleration and debottlenecking Public & Market Consultation Transaction Advisory & Probity Local Parliament Oversight Appraisal and monitoring Audit oversight & GCG Practices PPP PPP PPP IIGF IIGF Allows for stakeholder oversight and project transparency. Allowing investor to prepare for project Help to better prepare for the bidding and selection and ensuring compliance by independent party PPP Scheme requires consent from the local parliament for subnational PPP projects Ensuring compliance, environmental and social impact and project sustainability Fully complied with BPK (Government Accountability Office) and yearly GCG review ASEAN RISK Awards and Best SOE Under MoF Award 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 32

33 Comprehensive Set of Regulation Governing the guarantee scheme PRESIDENTIAL DECREE NO 38 YEAR 2015 AVAILABILITY PAYMENT MINISTER OF PLANNING REGULATION NO 4/2015 GOVERNMENT GUARANTEE MOF REGULATION NO 260 YEAR 2016 Decree on Public Private Partnership format and mechanics Regulation on the mechanics of project planning and preparation; including the selection, screening and preparation of outline and final business case Governmental Decree no 78 year 2010 governing the establishment of Guaranteeing Entity/IIGF and its mechanics MoF Regulation NO 260 Governing the support of MoF in the form of Project Development and Viability Gap Fund MOF Regulation no 260/2016 Minister of Home Affair Regulation no 96/2016 for AP by Local Government 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 33

34 PPP Joint Office Government of Indonesia Collaboration of key Ministries and IIGF for PPP project acceleration and debottlenecking PPP Office members NATIONAL DEVELOPMENT & PLANNING AGENCY (BAPPENAS) IIGF MINISTRY OF FINANCE INDONESIA INVESTMENT COORDINATING BOARD NATIONAL PUBLIC (BKPM) PROCUREMENT AGENCY (LKPP) COORDINATING MINISTRY OF ECONOMICS (CME) MINISTRY OF HOME AFFAIR Relevant Stakeholders PRIVATE SECTOR GOVERNMENT CONTRACTING AGENCY INVESTOR, BANK & MULTILATERAL AGENCY 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 34

35 PPP Joint Office Government of Indonesia Support from PPP Joint Office members available for PPP projects and stakeholders 1 Publication BKPM; Co-PIC: IIGF 9 Monitoring & Evaluation (Monev) MoF, IIGF 2 Consultation Bappenas, Ministry of Home Affairs & IIGF 8 Debottlenecking & Coordination Coord. Ministry of Economic 3 Capacity Building IIGF 4 Initial Study Guidance Bappenas 5 OBC Bappenas; Facilitation CMEA; BKPM 6 7 Transaction Guidance LKPP FBC & Project Development Facility Ministry of Finance Secretariat Address: PPP Joint Office Capital Place, 8 th Floor Jalan Gatot Subroto Jakarta (IIGF S office) 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 35

36 PPP Joint Office - Government of Indonesia Role of PPP Office members within PPP Project Stages Government Contracting Agency (GCA) is responsible for infrastructure project BKPM ensures investor feasibility and conducts market sounding LKPP as transaction probity IIGF informally provides input during OBC process by Bappenas/GCA and FBC process by MoF. IIGF conducts government guarantee provision process GCA Bappenas (Planning) Bappenas provide OBC facility PPP Unit in Ministry of Finance provides facilities for GCA: PDF (FBC dan transaction advisory)* dan VGF PQ RfP PPP Agreement Signing Construction & Operation Project Identification & Screening Preliminary Study Outline Business Case (OBC) Final Business Case (FBC) Bid Award Financial Close PLANNING STAGE DEVELOPMENT STAGE CME facilitates Debottlenecking TRANSACTION STAGE IIGF can provide PPP Capacity Building 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 36

37 Thank You PT Penjaminan Infrastruktur Indonesia (Persero) Capital Place 7-8 th Floor, Jl. Jenderal Gatot Subroto Kav.18 Kuningan Barat, Jakarta Selatan Indonesia PT Penjaminan Infrastruktur Indonesia (Persero)

38 Disclaimer Informasi pada presentasi ini diperoleh dari berbagai sumber yang kredibel pada saat disampaikan. PT PII tidak bertanggung jawab atas penyalahgunaan informasi tersebut dan kerugian yang ditimbulkan. Informasi lebih lanjut dapat menghubungi: Corporate Secretary and Communications Phone : Fax : Mail : corcomm@iigf.co.id 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 38

39 INFRASTRUCTURE NEEDS ( ) How to Finance Indonesia s Infrastructure Need Shifting from Public Budget to Private Investment Sector US$ Bio FINANCING SOURCE PLAN Road 54.7 Railway Air Transport Sea Transport STATE BUDGET $ Bio 1 41,3% Realized & Allocation: 2015: $ 19.1 Bio 2016: $ 23,7 Bio 2017: $ 28.9 Bio Gap to 2019: $ 76 Bio Water Resources Housing Urban Transport 6.42 Land Transport (incl Ferry) 3.5 Power 74.6 SOE $ 79.6 Bio 2 22,2% Include Equity Injection to SOE from Government budget allocation Energy 37.8 Waste Management ICT 20.9 TOTAL 358 PRIVATE $ Bio 3 36,5% Promoting Public Private Partnership (PPP) With expected USD 350 billion need and increasing state budget gap, GoI would rely on the private investment to close the gap by promoting Public Private Partnership (PPP) scheme 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 39

40 Profile of PT. Penjaminan Infrastruktur Indonesia (PT PII)/ Indonesia Infrastructure Guarantee Fund (IIGF) PT PII (Persero) IIGF Legal Basis Total Employees Key Stakeholders Established on 30 December 2009 as SOE fully owned by Government of Indonesia under Ministry of Finance. As a Single Window in providing government guarantee for Infrastructure Projects developed with PPP scheme. Government Regulation 80 (Permanent) Ministry of Finance, Government Contracting Agencies, KPPIP, National Planning Agency (Bappenas), Indonesia PPP Office Paid in Capital (CI) Retained Earning ~US$ M ~US$ 134 M Revenue ~US$ 61 M Opex Ratio (OER) Net Income Margin 22,5% 61% Projects Guaranteed Int l Credit Rating Sovereign rating BBB- By Fitchratings 4 Sectors: Electricity, ICT, Water & Toll Road 14 Projects ~Project Value: Rp 119 Tr or ~ US$ 8.9 Billion Guarantee amount: Rp 26 Tr ~ US$ 2.1 Billion Gearing Ratio 3,0 x at max exposure PPP Project Guaranteed 1. Central Java Power Plant (CJPP) 2. Palapa Ring Barat 3. Palapa Ring Tengah 4. Palapa Ring Timur 5. SPAM Umbulan 6. Toll Road Batang-Semarang 7. Toll Road Balikpapan- Samarinda 8 Toll Road Pandaan-Malang 9. Toll Road Manado-Bitung 10. Toll Road Jakarta-Cikampek Elevated 11. Toll Road Serang-Panimbang 12. Toll Road Cisumdawu 13. Toll Road Krian-Legundi-Bunder 14. City of Lampung SPAM 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 40

41 PPP PIPELINE PPP TARGET Indonesia PPP Project Pipeline 2018 Target and Quick Win Projects A. PROJECT VALUE Construction US$ 8.8 billion US$ 0.6 billion Financial Close US$ 0.6 billion US$ 3.5 billion Transaction until PPP Agreement Signing Preparation B. PROJECT SUMMARY Construction 12 1 Transaction until PPP Agreement Signing US$ 3.5 billion US$ 6.8 billion + 5 Under Calculation Projects US$ 0.1 billion US$ 6.7 billion + 12 Under Calculation Projects Financial Close Preparation Quick Win Projects Nambo Regional Waste Management 2. Probowangi Toll Road 3. Bandar Lampung Water Supply 4. Serang Panimbang Toll Road 5. Jakarta Cikampek South Toll Road 6. Jatiluhur Water Supply 7. West Semarang Water Supply 8. Suramadu Toll Bridge 9. Pekanbaru Regional Water Supply 10. Sidoarjo General Hospital 2018 PT Penjaminan Infrastruktur Indonesia (Persero) 41