TOLL ROAD INVESTMENT OPPORTUNITIES IN INDONESIA

September 2010

INDONESIAN TOLL ROAD AUTHORITY MINISTRY OF PUBLIC WORKS

THE PURPOSE OF MANAGEMENT TOLL ROAD

TOLL ROAD DEVELOPMENT POLICY

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

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 havent growth
Any citizen participation and private sector in provision infrastructure

TOLL ROAD DEVELOPMENT PROGRESS IN INDONESIA

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)

General Planning : 3,087.88 km

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)

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)

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

MAP OF INDONESIA

TOLL ROAD NETWORK ATJAVA ISLAND

Serang DKI Jakarta Cikampek Banten Palimanan Kanci Sukabumi Pejagan Pemalang Batang Jawa Tengah Solo Kertosono Yogyakarta DIY Mojokerto Gempol Pandaan Malang Banyuwangi Semarang Demak

JAVA SEA

Bogor

Ciranjang Bandung
Jawa Barat

KETERANGAN : Operation

Ngawi

Surabaya

Land Acquisition/Concession Agreement Construction Tender Preparation Concession Agreement Preparation

Pasuruan
Probolinggo

Jawa Timur

TOLL ROAD NETWORK IN SUMATRA

- Medan-Binjai - Belmera - MedanKualanmuTebing Tinggi Pekanbaru-Kandis-Dumai

PalembangIndralaya

BakauheniTerbanggi Besar (TeginenengBabatan)

In Operation Tender Preparation

PRIORITY PROJECT
No. Toll Road Length (KM) Land Cost (U$.M) Investment Cost (U$ M) Remarks

Priority Projects 1 2 3 4 5 6 7 8 9 MEDAN-KUALA NAMU -TEBING TINGGI CILEUNYI - SUMEDANG - DAWUAN PALEMBANG - INDRALAYA TEGINENENG - BABATAN SUKABUMI - CIRANJANG PASIRKOJA - SOREANG PANDAAN - MALANG MEDAN - BINJAI KEMAYORAN - KAMPUNG MELAYU 60.00 58.50 22.00 50.00 28.00 15.00 37.62 15.80 9.65 22.92 8.27 9.56 25.73 11.38 27.30 401.73 283.27 83.63 56.29 7.14 29.94 17.72 27.31 32.69 28.55 530.22 Feasibility Evaluation (possibility with Government Support) 568.91 Feasibility Evaluation (possibility with Government Support) 117.41 Feasibility Evaluation (possibility with Government Support) 304.06 Feasibility Evaluation (possibility with Government Support) 206.93 Feasibility Evaluation (possibility with Government Support) 113.91 Feasibility Evaluation (possibility with Government Support) 281.85 Feasibility Evaluation 144.18 Feasibility Evaluation (possibility with Government Support) 775.37 Feasibility Study On Progress 1,088.39 Feasibility Study On Progress 474.49 Feasibility Study On Progress 637.81 Feasibility Study On Progress 822.70 Feasibility Study On Progress 664.59 Feasibility Study On Progress 771.30 Feasibility Study 7,502.11

10 SUNTER - RAWA BUAYA - BATU CEPER 11 ULUJAMI - TANAH ABANG 12 PASAR MINGGU - CASABLANCA 13 SUNTER - PULO GEBANG - TAMBELANG 14 DURI PULO - KAMPUNG MELAYU 15 TERUSAN PASTEUR - UJUNG BERUNG - CILEUNYI - GEDEBAGE Total

POTENTIAL PROJECT
No. Toll Road Length (KM) Land Cost (U$.M) Investment Cost (U$. M) Remarks

Potential Projects 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 PEKANBARU - KANDIS - DUMAI MANADO - BITUNG KISARAN - TEBING TINGGI BUKIT TINGGI - PADANG PANJANG- LUBUK ALUNG - PADANG TERBANGGI BESAR - MENGGALA - PEMATANG PANGGANG BAKAUHENI - TERBANGGI BESAR CILEGON - BOJONEGARA KAMAL - TELUK NAGA - BATU CEPER GEDE BAGE - MAJALAYA SEMARANG - DEMAK YOGYAKARTA - BAWEN YOGYAKARTA - SOLO BANDARA JUANDA - TANJUNG PERAK PROBOLINGGO - BANYUWANGI BATU AMPAR - MUKA KUNING - BANDARA HANG NADIM Total 23.99 104.00 40.49 23.00 170.36 25.00 930.53 793.70 135.00 46.00 60.00 55.00 100.00 100.00 15.69 32.00 31.04 125.89 56.70 81.25 76.22 52.92 85.30 18.96 18.96 27.54 56.87 15.50 146.55 941.81 Suggestion to Built by Government 625.79 Suggestion to Built by Government 588.76 1,140.72 Feasibility Study Feasibility Study

644.51 Feasibility Study 914.36 Feasibility Study 102.59 Feasibility Study 400.33 Feasibility Study 100.36 Feasibility Study 330.06 Feasibility Study 678.52 Feasibility Study 259.81 Feasibility Study 560.88 Feasibility Study 892.06 Feasibility Study 245.32 Feasibility Study 8,425.89

BUSINESS SCHEME OF TOLL ROAD

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

On Going Feasible to be built if EIRR value is positive 1) BOT : FIRR (+) a+b+c : Private Company
Link : 20 Link Length : 736.62 km Investment : U$. 7,074.31 M

EIRR TOLL ROAD (+)

c
b a
2) DBO/DBL : FIRR (-) a+b : Government c : Private Company 3) PPP : FIRR (Marginal) a+b : Government b+c : Private Company
Link : 1 Link Length : 9.48 km Investment : U$. 262.71 M

a b c

: Land Acquisition : Construction : Operation and Maintenance

Link: 2 Link Length : 179.00 km Investment : U$. 902.83 M

DBO/DBL 4%

PPP 9%

Example: Case 1: BOT for Toll Road Commonly Case 2: Akses Tanjung Priok Case 3: PPP Solo Kertosono Toll Road

BOT 87%

Investment Procedure
PRAQUALIFICATION

BIDDING PROCESS

(+ 14 MONTHS)

NOTICE TO AWARD

PREPARATION OF SPECIAL PURPOSE VEHICLE (+ 4-6 MONTHS) CONCESSION AGREEMENT

FINANCIAL CLOSURE

Macro Stage of Toll Road Business

TOLL ROAD PLANNING POLICY

1 2 3
PPJT TARIF TOL
OPERATIONAL + MAINTENANCE CONCESSION TAKE OVER

GENERAL NETWORK PLAN

TOLL ROAD PLAN

BUSINESS PREPARATION

TOLL ROAD BUSINESS TENDER

FUNDING

DETAILED LAND ENGINEERING ACQUISITION DESIGN

CONSTRUCTION

5
Conducted by Bina Marga

10

11

Conducted by Indonesia Toll Road Authority Conducted by Toll Road Company

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

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.
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INDONESIA TOLL ROAD AUTHORITY MINISTRY OF PUBLIC WORKS

Jalan Iskandarsyah Raya No. 35 Kebayoran Baru, Jakarta Selatan Phone: (62-21) 7258076 Fax : (62-21) 7257126 http://www.bpjt.net/

THANK YOU