why invest in infrastructure? · 2019-04-15 · adhi karya (adhi) continuous bond ii phase i 2,997...
TRANSCRIPT
Why Invest in Infrastructure?
Adapted from National Planning Agency (Bappenas) and IIGF (2018)
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To reduce infrastructure gapto boost competitiveness
Indonesia’s Need for Infrastructure Financing
Calculation based on infrastructure investment (required) to be a middle income country by 2025.Sources: BAPPENAS- JICA, 2014: Background Study for RPJMN 2015-2019, Analyst team of Ministry of National Development Planning (BAPPENAS) RPJMN: National Medium-Term DevelopmentPlanning
3Adapted from National Planning Agency (Bappenas) and PINA 2018
Focus to develop Indonesia’s InfrastructureAim for basic need, leading sector, and urban infrastructure development
nortation Ins al integratio
100% drinking water access
100% sanitation access
96.6%electrification ratio
Livable housing access
Border & underdeveloped regions accessibility
Fulfillment of Basic Needs
Infrastructureto Support Leading Sectors
Connectivity
Maritime
Highway +Intermodal
Broadband Development:• Palapa Ring• Broadband plan: e-Government, e-Health, e-
Education, e-Procurement, e-Logistic, e-Commerce.
Energy Development: 35 GW• Target 1,200 kWh/population in 2019 (vs
1,300 in Vietnam and 4,400 in Malaysia)
Leading Sector
Service and Tourism
Agriculture
Manufacturing
Urban Infrastructure
Transportation
safety &security
Development of road, mass transport system & intermodal
Improve the capacity and quality of the urban road network
Develop sustainable urban transport
Shift Improve
Network to support journey
efficiency
Increased share of public
transport
Increasedutilizationtechnology
Urban Transport DevelopmentConcept
Avoid
RegionalDevelopment/ Growth Center
Marine Highway
RegionalDevelopment/ Growth Center
Intermodal Intermodal
Port AreaDeveloped Area
dUnder-
Develope Area
Flood Control
Energy for urban transport
Urban infrastructure developmentby ICT utilization toward smartcities
4Source: National Planning Agency (Bappenas) 2017 and IIGF (2018)
Some Infrastructure Projects: progress and financing
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1. MRT Jakarta2. Trans Sumatra Toll Road3. Umbulan Drinking Water Project4. Mandalika Special Economic Zone (Tourism)
MRT Jakarta
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MRT Jakarta
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MRT Jakarta Phase I was launched on 24 March 2019 Investments: IDR16 trillion (JPY 123.36 billion or USD1.1 billion) Loan from Japan Bank for International Cooperation (JBIC) Interest rate 0.1% p.a. Tenor 40 years; grace period 10 years Central Government 51%, Local Government 49%
Trans Sumatra Toll Road
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Expected total length: 2,765 km divided into 24 sections.
Expected completion: 2024 Expected investments: IDR476Trillion
(USD34 billion) PT Hutama Karya has the mandate
from the central government
Source: BeritaSatu.com
Trans Sumatra Toll Road
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Sections Length (Km) Investments (IDR billion)
Source: BeritaSatu.com
Trans Sumatra Toll Road
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Bakauheni-Terbanggi Besar section Inauguration ceremony on 8 March 2019 140.9 km long Investments: IDR16.8 trillion (USD1.2
billion) SOEs: PT Hutama Karya, PT PP, PT Waskita
Karya, and PT Adhi Karya
SOEs Participations in Infrastructure Projects
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PT Hutama Karya
PT Waskita Karya (WSKT)PT Adhi Karya (ADHI)
Total Equity of WSKT and ADHI
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2,383 2,849
9,704
16,773
22,755
28,887
1,548 1,752
5,154 5,443 5,870 6,103
0
5000
10000
15000
20000
25000
30000
35000
2013 2014 2015 2016 2017 2018
Billion IDR
WSKT ADHI
Total Equity of WSKT and ADHI
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240.64%
194.25%
0%
50%
100%
150%
200%
250%
300%
0
5000
10000
15000
20000
25000
30000
35000
2013 2014 2015 2016 2017 2018
WSKT ADHI WSKT ADHI
Total Liabilities of WSKT and ADHI
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6,4059,693
20,605
44,660
75,141
95,504
8,173 8,70711,599
14,653
22,463 22,237
0
20000
40000
60000
80000
100000
120000
2013 2014 2015 2016 2017 2018
Billion IDR
WSKT ADHI
Total Liabilities of WSKT and ADHI
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51.34%
112.57%
6.54%
33.21%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
0
20000
40000
60000
80000
100000
120000
2013 2014 2015 2016 2017 2018
WSKT ADHI WSKT ADHI
Total Receivables of WSKT and ADHI
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2,342 2,608 2,508
10,902
13,12213,870
2,7053,214
6,423
9,802
15,06715,758
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2013 2014 2015 2016 2017 2018
Billion IDR
WSKT ADHI
Total Receivables of WSKT and ADHI
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2,342 2,608 2,508
10,902
13,12213,870
2,7053,214
6,423
9,802
15,06715,758334.78%
99.83%
-50%
0%
50%
100%
150%
200%
250%
300%
350%
400%
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
2013 2014 2015 2016 2017 2018
WSKT ADHI WSKT ADHI
Stocks Performance of SOEs in Constructions
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Bond Issues: crowding out?
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Face Value (Billion IDR)
Coupon Rate (%)
Tenor(Years)
Maturity Date Rating
Hutama KaryaContinuous Bond I Phase II
1,968 8.07 10 06-June-2027 idAAA
Hutama KaryaContinuous Bond I Phase III (Series B)
2,367 8.40 10 26-Sep-2027 idAAA
Bank BRI (BBRI)Continuous Bond Phase III (Series C)
2,517 8.25 7 24 Aug 2024 idAAA
Lautan Luas (LTLS)Continuous Bond II
200 10.5 5 21 Jun 2022 idA-
Adhi Karya (ADHI) Continuous Bond IIPhase I
2,997 9.22 5 22 Jun 2022 idA-
Indonesia Infrastructure Guarantee Fund (IIGF)
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On December 30, 2009 the Government of Indonesia has established Indonesia Infrastructure Guarantee Fund or IIGF
A State-Owned Enterprises (SOEs) under the Ministry of Finance Responsible for providing government guarantees for infrastructure projects
developed under the Public Private Partnership (PPP) scheme. Aims to provide IDR210 trillion guarantee project value by 2018
Government Support for InfrastructureFacilities and entity available to support PPP Projects in Indonesia
Project Planning & Preparation
Bidding/Selection Project Construction
FacilitiesViability Gap Funding or
Availability Payment
ManagingEntity
Ministry of Finance
Project Development
Fund
Ministry of Finance
FinancingLand
Acquisition
PT SMIMinistry of
Agrarian and Spatial Planning
; LMAN
GuaranteeFund
Pre-Feasibility Studies
Ministry ofPlanning
21Source: IIGF (2018)
Umbulan Drinking Water Project
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Location: Umbulan, Pasuruan Regency, East Java Province Source: Umbulan spring founded in 1916 During Dutch Colonialization: Inlando Water Bedrij (1917) The initial plan for Umbulan Drinking Water Project was since 1972 The first ever drinking water project in Indonesia
Umbulan Drinking Water Project: PPP
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Public Private Partnership (PPP) Consortium: PT Medco Energi Internasional Tbk. And PT Bangun Cipta Total investments: IDR2.05 trillion (USD146 million) Consortium provides IDR1,232 trillion investment IIGF provides IDR818 billion Viability Gap Funding (VGF) Built Operate Transfer (BOT) for 25 years Groundbreaking: July 2017 Expected to start operation in Mid 2019
Mandalika Special Economic Zone (Tourism)
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Mandalika Special Economic Zone (Tourism)
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Location: Mandalika, Lombok Tengah Regency, Nusa Tenggara Barat Province Area: 1,175 hectare Infrastructure investments: Asian Infrastructure Investment Bank (AIIB)
USD248 million 30 years 10 years principal grace period 5 years interest payment grace period
Mandalika Special Economic Zone (Tourism)
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Mandalika Special Economic Zone (Tourism)
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• MotoGP circuit• Investments: USD1 billion• Construction will start in September 2019• Expected completion: end of 2020• VINCI Construction Grands Projects, France
• Street circuit• Convention center• Hotel • Special Hospital
Mandalika Special Economic Zone (Tourism)
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Relevant Websites
http://www.iigf.co.id/en/http://kek.go.id/kawasan/Mandalikahttps://www.itdc.co.id/the-mandalika/investment/hotel-and-leisure/