INDONESIA INVESTMENT FORUM 2018

A New Paradigm in Infrastructure Financing

Bali, October 9, 2018
 DISCLAIMER

This presentation has been prepared by PT Indonesia Infrastructure Finance (“IIF” or the “Company”) exclusively for your
benefit and internal use. All information contained in this presentation belongs to IIF and may not be copied, distributed or
otherwise disseminated in whole or in part without the prior written consent of IIF.

This presentation has been prepared on the basis of information that is believed to be correct at the time the presentation was
prepared, but that may not have been independently verified. IIF makes no express or implied warranty as to the accuracy or
completeness of any such information.

Neither the Company nor any of their directors, employees or representatives are to have any liability (including liability to any
person by reason of negligence or negligent misstatement) from any statement, opinion, information or matter (express or
implied) arising out of, contained in or derived from or any omission from the presentation, except liability under statute that
cannot be excluded.

2
 AGENDA

01 Financing Issues for Toll Road Development in Indonesia

02 IIF Overview
 AGENDA 1

Financing Issues for Toll Road Development in

Indonesia
 FINANCING BECOMES LESS OF ISSUES FOR
INFRASTRUCTURE DEVELOPMENT

Source: KPPIP, September 2018

5
 REMAINING MAIN ISSUES IN FINANCING
CONSTRUCTION

DURING CONSTRUCTION PROPOSED SOLUTION

1. Some new greenfield toll road projects are less 1. MDBs and/or SMI/IIF can provide a financing solution
attractive than the operating and/or under construction that can work complementary to the existing bank
projects; financing; which can involve among others, longer grace
period, longer tenor financing, subordination.

2. Limited (financing) capacity for good, experienced and 2. Further capitalization of good construction companies
reputable construction company; through innovative financing solution, such as
Mandatory Convertible Bonds, Perpetual Bond, etc.

3. Some banks / financial institutions starts to reach legal 3. Asset recycling becomes key solution in the near future.
lending limits to the good and bankable construction Recent development includes FRBS, Project Bonds,
companies; RDPT Equity, etc.

4. Due to currency mismatch, foreign banks are limited to 4. IIF is developing together with World Bank Group, a
participate in the financing liquidity facility to partially mitigate adverse foreign
currency mismatch between USD-loan and IDR-revenues
project.

6
 REMAINING MAIN ISSUES IN FINANCING
DURING OPERATION
1. Some projects need to have additional cashflow
injections from shareholders during ramp-up period;
2. There are limited availability of long term IDR financing,
when compared to the concession period;
3. Limited application of project financing for toll road
projects;
4. Banks/financial institutions are focussed on good toll
road concession holders but less on new developers;
5. Limited participation from the capital market in this
sector.
7
OPERATION
PROPOSED SOLUTION
1. Cash Deficiency Support from third party and/or
application of subordinated facility can provide solution
for cashflow during ramp-up period.
2. Again, asset recycling for mature, operating assets can
provide the solution. Creative funding solution such as
take-out guarantee can also be applied.
3. Project Financing starts to gain more familiarity among
project developers. Need for successful showcases.
4. Credit enhancement and better structured financing
tailored to the project cashflow will increase the credit
profile of the project;
5. Regulatory as well as non-regulatory solution. Need for
a good showcase projects.
 BOTTOM LINE: COLLABORATION

8
 Agenda 2

IIF Overview
 IIF PROFILE AND BUSINESS ACTIVITIES

THE FOUNDER SHAREHOLDER’S OBJECTIVE SHAREHOLDERS

Government of Indonesia

100.00%

To establish a private non-bankfinancial institution that

supports infrastructure projects in Indonesia 30.00% 19.99% 19.99% 15.12% 14.90%

To increase private investment

participation in infrastructure sector

IIF’s Vision & Mission IIF’s Rating

To provide financing for infrastructure in Indonesia and to work

closely with Infrastructure sponsors, financial sector, and the
Government of Indonesia to accelerate the construction of well-
conceived, commercially viable infrastructure projects.
PT Fitch Ratings
Pefindo
• To ensure investors’ requirements are reflected in contractual Indonesia
structures and concessions.
• To pioneer the availability of various specifically designed AAA (idn) idAAA
long term financing instruments for infrastructure’s projects.
• To work with Indonesia’s financial institutions and other
institutional investors to channel the public’s saving into the
long term development of Indonesia’s Infrastructure.

10
 ELIGIBLE INFRASTRUCTURE SECTORS

INITIAL INFRASTRUCTURE SECTORS RECENT SECTOR EXPANSION

 SOCIAL INFRASTRUCTURE:
• Urban Facility
• Education Facility
Drinking Water Waste Water
• Sports and Arts Facility
• Territory Facility
• Tourism Facility

Electricity Irrigation
• Health Facility
• Penintiary Facility
• Public Housing
• WASTE: Waste Management System

Transportation Road • ELECTRICITY: Energy Conservation

• OIL AND GAS: Renewable Energy
• AGRICULTURE: Food Distribution and Warehouse
• MANAGEMENT OF INDUSTRIAL TERRITORY: land
Telecommunications
& Informatics
Oil & Gas acquisition, infrastructure development & management

11
 IIF’S NOTABLE ACHIEVEMENTS

WINNER: Asia Pacific M&A 2017

Awards from IJGlobal
Acquisition of 227 MW Chevron Geothermal Power Plant in West Java

LNG Tangguh – Papua

Awards from Finance Asia, Hongkong - Best Project Financing 2016
One of only four domestic financial institutions (the other 3 are State-owned Banks)
selected in the domestic syndication to finance the expansion of Tangguh LNG plant.

Lead Arranger for PPP Project - Palapa Ring Central Package

PPP project in the telecommunication sector that implement Availability Payment
scheme with IIGF guarantee.
The Project is to connect 17 municipals/cities in central region of Indonesia via
broadband fiber optic network.

Guarantee Facility to finance Sidrap 70 MW Wind Power Plant Project

The first wind power project reached financial close, and also the first Guarantee
Facility deal for IIF.

Mandated Lead Arranger dan Bookrunner for PPP Project – SPAM Umbulan.
The first PPP project in water sector that reached financial close after delayed for
more than 40 years, to deliver 4,000 lps bulk water to 5 cities/regencies.

Komodo Bond
The first issuance of IDR denominated Global Bond.
The fund proceed is used by the issuer to further develop toll road network in Indonesia.

12
Our Address
PT INDONESIA INFRASTRUCTURE FINANCE
Prosperity Tower 53-55 Floor, SCBD Lot. 28
Jl. Jend. Sudirman Kav. 52-53
Jakarta 12190, Indonesia

Contact Us
Tel +62 21 5082 6600
Fax +62 21 5082 6601