Innovative Financing to Support

Massive Toll Road Development

Indonesia Investment Forum 2018

Bali, October 2018
 Conducive Environment in Toll Road Industry

Commercially Long-Term
Land Acquisition
Feasible Project Contract
Since 2016 as fully implemented of
To ensure the project has adequate The concession of toll road is
land acquisition law, the progress of
return to attract around 35 to 50 years based on
land acquisition has increased.
investors, Government offer several characteristics of each
It also supported by the change of
package schemes. For projects, investment cost and
price basis to market price and the
example, VGF (Viability Gap location.
certainty of process.
Funding) – the project with low IRR
Under the same law, the
is supported by state budget paying
government has responsibility to
some part of construction.
proceed and pay the land clearance.

Part of National Certainty in 100% Cashless

Strategic Project Tariff Increase Transaction

All of Jasa Marga’s toll road
projects in the pipeline are part of
National Strategic Project (PSN)
that will be monitored closely by
the government to accelerate the
infrastructure development.
As stated in road law, tariff will High efficiency on collection
be adjusted every 2 years based expanse and faster transaction
on accumulated regional period will reduce traffic flow
inflation. and minimize the cost of
providing change, cash handling
and toll revenue security.

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 Jasa Marga’s New Investment

787.5 km Accumulated Toll Road in Operation* 1,527 km Total Concession of Toll Roads

Medan - Kualanamu – Tebingtinggi (61.7 km) Balikpapan – Samarinda (99.4 km)

Manado – Bitung (39.9 km)

Solo – Ngawi (90.1 km)

Semarang – Batang (75.0 km)
Bogor Outer Ring Road (11.0 km)
Cengkareng – Kunciran (14.2 km)
Kunciran – Serpong (11.2 km)
Serpong – Cinere (10.1 km)
Jakarta - Cikampek II Elevated (36.4 km) Ngawi – Kertosono (87.0 km)
Jakarta - Cikampek II South (64.0 km) Pandaan – Malang (37.6 km)
Gempol – Pasuruan (34.2 km)
Probolinggo – Banyuwangi (172.9 km)

Project Timeline
Completed in 2018 Completed in 2019/20 Completed in 2022
208.7 km** 283.0 km 236.9 km

*as of September 2018 3

**the remaining segment that will be operated this year
 Strong Fundamental to Support New Investment

Resilient Industry
 Proven track record of generating revenue in 40 years.
 Steady revenue stream during different economic conditions.

Toll Revenue (in Rp billion) 7,097

7,546

13 4,283
4,809
5,499 5,702
6,288 6,545

Mature 3,319
3,631
2,618
Toll Roads 1,797
2,270
1,275 1,532
1. Cawang-Tomang-Pluit 727 674 739 846 918 1,014
2. Jakarta Inner Ring Road
3. Prof. Dr. Ir. Sedyatmo (Airport)
1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017
4. Purbaleunyi
5. Jakarta-Cikampek
6. Palikanci
7. Jagorawi
8. Surabaya-Gempol
9. Semarang Strong Financial Condition
10. Jakarta Outer Ring Road
11. Ulujami-Pondok Aren
12. Jakarta-Tangerang
 High Interest Coverage Ratio (ICR) at Parent Level
13. Belmera 2016 2017 1H2018
ICR 5.77x 5.54x 4.84x

Long Concession Rights

 Concession rights until 2044 in all 13 mature toll roads
 Tariff adjustment every 2 year based on regional inflation 4
 Alternative Financing Products
Rp EBITDA

Construction Negative
Period Cash Flow Interest Expense and
Principal Payment

Years
Construction Negative Period Mature Period
Period
 Contractors Pre  Equity Mutual Fund  Future Revenue Backed Securities
Financing (CPF)  Divestment/Partial  Structured Bond with multiple tranches based on project
 Bank Financing Divestment cash flow/Project Bond
 Zero Coupon  Step Up Coupon Bond*  Placement/IPO*
Bond*  Structured Bond with
credit enhancer to
cover negative cash
flow* 5
*Potential next issuance
 Key Factors in Alternative Financing Issuance

Matching Project Needs with Investor Interest

Customizing good and suitable structure that align with market condition and investor
appetite.

Strong Support from Holding

Strong commitment from Jasa Marga with steady revenue stream from mature asset.

Investor Feedback
Perform a Non-Deal Roadshow before the issuance in order to get the feedback from
potential investors and related parties.

Solid Collaboration with Key Parties

Excellence support and coordination with authorities, banks, and related parties on
financing activities.

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 Alternative Financing Product

Future Revenue Backed Securities Project Bond at PT Marga Lingkar Jakarta

Benefits Benefits
• Strengthen capital structure by raising fund through
• Align structure of financing with project cash flow
non debt instrument.
• Reduce the exposure of interest rate volatility
• Monetize future revenue as a source of funding

Structure Structure
Total Issuance Rp2,000,000,000,000 Total Issuance Rp1,500,000,000,000

Tenor 5 years Tenor 3, 5, 7, 10, 12 years (five tranches)

Rating idAAA(sf) by Pefindo Rating idAAA(sf) by Pefindo

Mutual
Investor Allocation
Asset
Investor Allocation Fund and
Individual
Managem Others, 6.3
2% Bank, 9.00
ent 0%
4% %
Pension Securities, Insurance,
Fund Banking 12.00% 29.00%
15% 35%

Insurance Pension
21% Non Company, Fund, 24.80
Banking 18.90%
106 Accounts % 87 Accounts
23%

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 Alternative Financing Product

Komodo Bond RDPT (Mutual Fund Limited Participation)

Benefits Benefits
• Tapping new market (investor) offshore. • Deconsolidate subsidiaries during ramp up period to
• Issuing foreign debt without foreign currency risk strengthen Jasa Marga’s capital structure and
exposure. maintain profitability.

Structure Structure
Total Issuance IDR 4,000,000,000,000 Total Issuance Up to IDR 3,000,000,000,000
Time Period 3 years Tenor 5 years
Baa2 (stable) by Moody’s
Rating
BB+ (stable) by S&P

Investor Allocation Investor Allocation

Phase 1* Fund
Financial Bank
9.70% Manager
Manageme
0.96%
nt Pension
83.45% Public Insurance
Fund
6.50% 9.55%
89.49%
Others
0.35%
66 Accounts 10 Accounts

*Transaction of Phase I in July 2018.

Company is proceeding the Phase II. 8
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Thank You

PT Jasa Marga (Persero) Tbk.

Plaza Tol Taman Mini Indonesia Indah
Jakarta 13550 - Indonesia
Phone. +62 21-8413526, 8413630
Fax. +62 21-8401533, 8413540
Email. Investor.relations@jasamarga.co.id
Email. corporatefinance@jasamarga.co.id
www.jasamarga.com