The Role of “PINA Center for Private Investment” for Infrastructure Development in Indonesia

1. The Role of “PINA Center for Private Investment”for Infrastructure Development in Indonesia Investment and Business Development towards Tourism and Industrial Sector in Central Java Presented to Central Java Investment Business Forum 2018 Eko PutroAdijayanto CEO PINA Center for Private Investment Special Staff to the Minister of National Development Planning/Head of BAPPENAS November 2018

2. Strong Commitment to Build Infrastructure Strategic Development of 7 Hub ports and 24 Seaports Set 2019 Target for 1,000 km Toll Roads 15 New Airports – Gateway for International Access 10 New Balis – Integrated Tourism Area Source: Global Competitiveness Report 2017-2018, WEFhttps://www.usnews.com/news/best-countries 2

3. Financing Infrastructure Commitment 2015 - 2019 Government Budget (USD 148.2 bn) 41.3% Government Budget State Owned Enterprises (USD 79.8 bn) 22.2% Private Participation (USD 131.1 bn) 36.5% Non- Government Budget 3

4. PINA as the ENABLER to Accelerate Non-Government Budget Project Financing 4

5. PINA Regulatory Framework The funding framework is done by the integration of funding sources, both government and non-government budget (PINA) that are used to achieve the national development targets Government Regulation No. 17 of 2017 on the Synchronization Process of National Development Planning and Budgeting. 1 Presidential Regulation No. 58 of on the Amendment of Presidential Regulation No. 3 of 2016 on the Acceleration of the Implementation of National Strategic Projects. 2 The National Strategic Projects sourced from the Non-Government budget is coordinated by the Minister of National Development Planning / Head of BAPPENAS Presidential Regulation No. 20 of 2016 on the Amendment of Presidential Regulation No. 66 of 2015 on the National Development Planning Agency The Ministry of National Development Planning/BAPPENAS has the authority to facilitate and conduct the sourcing of domestic and foreign financing, as well as the allocation of funds for infrastructure development with the relevant institutions. 3 The Implementation of the Facilitation of Non-Government Equity Financing (PINA) is in line with the duties and functions of the Ministry of National Development Planning/BAPPENAS in planning all policy and coordinating all the National Development Stakeholders to achieve National Development goals. Presidential Regulation No. 66 of 2015 on the National Development Planning Agency 4 PPN/BAPPENAS Ministerial Decree No. Kep.121/M.PPN/HK/11/2017 on the Government Facilitation Team for Non-Government Budget Equity Financing (PINA) Minister of National Development Planning/BAPPENAS formed a governmental facilitation team for the implementation of facilitation activities of Non-Government Budget Equity Financing (PINA). 5 5 5

6. PINA as The ENABLER Ecosystem Building Project Pipelining Investment Facilitation PROJECT FINANCIAL CLOSE 6

7. Non-Government Budget Project Financing (PINA)Accelerating Non-Government Budget Financing Equity Hybrid Fund Debt Project Owner/ Investee Domestic and Foreign Investor • PINA is an ENABLER to Accelerate • Non-Government Budget Project Financing Investment Facilitation Project Pipelining Ecosystem Building

8. Participation in Project Financing Near-Equity Instrument (Perpetuity) Direct Equity Financing Fund (Private, Mutual) 8

9. Potential Investment Recycle Greenfield Brownfield Operational 9

10. Why PINA? Investor Advantages Valid Potential Investment Info SOE/ National Strategic Project Attractive Return Measurable Risk Facilitating if Bottleneck Occurred No Fee Commitment Government Agency

11. 4 17 Categories Sectors Connectivity Toll Roads Seaports Airports Railways Energy and Electricity Power Plant Oil and Gas Coal Mining Power Transmission Strategic Industry and Plantations Manufacturing Industry Aerospace IT Industry Tourism Plantations Smelter Housing Affordable Housing Urban Housing 11

12. Facilitation Networking Australia Japan South Korea China Ukraine UK Oman Ireland Canada UEA Singapore

13. 2017 - 2018 Success Story • * 11 >700 km Projects Toll Roads 22 mio 225 MW • * Power Plants Islamic Bonds First Issuance • * Perpetuity Notes USD 2.3 billion Total Financial Close 13 • *Signed at the 2018 Annual Meetings IMF – WorldBank in Bali

14. Projects Pipeline (November 2018) Total Investment Opportunity: IDR 576 Trillion, eqv. USD 38.9 Billion WASKITA TOLL ROAD (WTR) Share Divestment (9 project/ 18 sect toll roads) (Total: IDR 148 trillion, eqv. USD 10 billion) 1 PT PELINDO II Canal and Ports Developmment (Total: IDR 5.5 trillion, eqv. USD 376 million) 7 PT CPI – Mentawai Off-Grid Biomass Power Plant (Total: IDR 409 billion, eqv. USD 27.7 million PT NWA – Bekasi Waste to Energy Power Plant (Total: IDR 2.1 trillion, eqv. USD 145 million) 2 PT ANGKASA PURA II (Persero) Development & Management of 4 Airports (Total: IDR 1.38 trillion, eqv. USD 93.4 million) BIJB Kertajati and Aerocity Development (Total: IDR 31 trillion, eqv. USD 2.1 billion) 8 10 NEW BALI PROJECT Integrated Tourism Area (Total: IDR 296 trillion, eqv. USD 20 billion) 3 9 PT REKADAYA ELEKTRIKA Construction of Transmission Tower • (Total: IDR 325 billion, eqv. USD 22 million) TOLL ROAD (CIKUNIR – ULUJAMI 36.5 KM) Consortium of META, ADHI, ACST, TUS (Total: IDR 25 trillion, eqv. USD 1.7 billion) 4 PT DIRGANTARA INDONESIA Manufacturing Expansion to Increase Production Capacity of N219 Aircraft & Development of the N245 Aircraft (Total: IDR 5.9 trillion, eqv. USD 400 million) 10 PT PERKEBUNAN NUSANTARA III (Holding) Restructure & Development of Plantation Downstream Sector (Total: IDR 14 trillion, eqv. USD 946million) 5 • PT RegioAviasiIndustri (PT RAI) • R80Aircraft Development • (Total IDR 23.7trillion / USD 1.60 billion) TOLL ROAD (SOLO – YOGYA – NYIA 91.9 KM) • Consortium of DMT, GAMA, ADHI • (Total: IDR 22.5 trillion, eqv. USD 1.5 billion) 11 6 National Strategic Projects 14 Note: US $1 = IDR 14,800

15. Preparation for Master Plan Development is Essential Investment Realization Requires Solid Master Plan Manufacture Tourism MASTER PLAN DEVELOPMENT Property Energy Infrastructure Agriculture 15

16. PINA Center Facilitation Hub Towards Regional Development Regulators Regional Governments PINA Center - Regional Central Java, West Java, Bali, East Nusa Tenggara, South Sumatera • Alternative Facilitation Schemes: • Regional assets/projects securitization • Establishment of regional SPV as Private Equities Project Owners Investor/Financier Master Plan Development 16

17. THANK YOU BAPPENAS – Ground Floor, SKM Wing Jalan Taman Suropati 2, MentengJakarta Pusat, Indonesia 10310 Disclaimer: Non-Government Budget Equity Financing or PembiayaanInvestasi Non AnggaranPemerintah (PINA) does not guarantee the accuracy, completeness, timeliness or availability of the contents in this presentation. PINA cannot be held liable for its use, its partial use, lack of use, in combination with other products or used solely, nor can it be held responsible for the result from its use or lack of its use in any investment or other kinds of financial decision making on which this report or publication is based. In no event shall PINA be held liable for any direct, indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses including but not limited to lost profits and opportunity costs in connection with any use of the contents of this presentation. Data and information in this presentation are gathered from sources it believe to be reliable. The contents cannot be a substitute for the skill, judgment and experience of its users, itsinvestors in making investment or other business decisions. PINA does not act as fiduciary or an investment advisor. PINA does not perform an audit and does not undertake due diligence or independent verification of any information used as the base of and presented in this presentation. 17