and PINA Schemes Social Investment Investment that does not possess direct investment feedback to the object.

Transcription

1 Total Value of Investmen t Required in Infrastruct ure * : US$ 59.Bn (IDR 4,796.Tn) Financing Infrastructure Development Increasing the significant role of SOE & Private Sector through Public Investment: Provision of Public Facilities and PINA Schemes Investment Value (Sources) Governme nt Budget: US$ 148.Bn (41.%) SOE : US$ 79.8Bn (.%) Private Participati on: US$ 11.1Bn (6.5%) Category Definition Example Source of Funding low Social Investment Investment that does not possess direct investment feedback to the object. Social security; Education security; Health security. funding (APBN & APBD) Source: BAPPENAS Internal Analysis IRR Weighted Average Cost of Capital (WACC) Special Commercial Investment Investment which is economically viable but less financially viable hence needing additional support. Drinking water material; Mass public transportation. funding + commercial funding *) 1 : Calculation based on infrastructure investment (required) to be a middle income country by 05. Source: Bappenas- JICA, 014: Background Study for RPJMN , Analyst team of Ministry of National Development Planning (BAPPENAS) RPJMN: National Medium-Term Development Planning Investment which is economically and financially viable but seen as less attractive or risky hence intervention is needed. Toll roads; Ports. Commercial funding promoted by the PINA Investment which is more attractive hence the s role in regulating and promoting is minimized. Electricity ; Airports; Gas pipe. Commercial funding high General Commercial Investment 1

2 Indonesian Facilities in Scheme GOVERNMENT FACILITIES Project Development Fund. Viability Gap Fund. Guarantee by IIGF. Infrastructure Financing and Fund by (PT. SMI and IIF). GC A CONTRACT Availability Payment Financi er DEBT Equity Sponso r Project Special Purpose Company EQUIT Y Infrastructur e services COST RECOVERY SCHEME Tariff (User fee). Availability Payment. Other Legal Forms. User Fee USE R

3 19 Sectors Covered for in Indonesia CONNECTIVITY Toll s Toll Bridges s Transportation Seaports Airports Railways Electricity transportation Power plants Transmission Energy conservation Street lighting Oil, Gas, and Renewable energy Telecommunic ation & Informatics Fiber optics E-government Satellite URBAN INFRASTRUCTUR E Water supply Waste management system Water resources & irrigation Localized waste water management Centralized waste water management Public housing Urban facility Traditional market SOCIAL INFRASTRUCTUR E Tourism Education facilities Sports, art & culture facilities Health Zone/ Estates Penitentiary

4 Private as the project innitiator (UNSOLICITED) as the project innitiator (SOLICITED) REPUBLI PLANN PREPARATION Project Pipeline TRANSACTION Preliminary ING study Outline Business Case (OBC) Final Business Case (FBC) Tender Preparation PQ Request for Proposal Bid Award Agreement Signing Financial Close CONSTRUCT ION 11 project s 1. Yogya - Bawen Toll. Surakarta Street Lighting. Multifunction Satellite 4. National Integrated Welfare System 5. Indonesia National Cancer Center Dharmais Hospital 6. Nusakambangan Industrial Correctional Facility 7. Correctional Facility Relocation Project proponent submits a proposal and pre-fs (Ciangir) document to GCA 1. arian Water Supply. TOD Poris Plawad 1. Semarang Demak Toll. Surabaya - Madura Toll Bridge. Medan Municipal Transport (LRT) 4. Pekanbaru Regional Water Supply 5. University of Sam Ratulangi Teaching Hospital 6. Sidoarjo General Hospital 7. Pirngadi Business Hospital Entity submits FS 1. Serang -Panimbang Toll ( side km). West Semarang Water Supply 1. Jakarta - Cikampek South Toll. Probowangi Toll. Cisumdawu Toll 4. Serang - Panimbang Toll ( 51 km) 5. Bandar Lampung Water Supply 6. Nambo Regional Agreement Procurement Waste Signing Management 1. Manado - Bitung Toll. Balikpapan - Samarinda Toll. Pandaan - Malang Toll 4. Batang - Semarang Toll 5. Serpong - Balaraja Toll 6. Umbulan Water Supply 7. Central Java Power Plant billion 8. West Palapa Ring Financi 9. Central Palapa Ring al 10. East Palapa Ring Close TOTAL: US$ 4.1 billion TOTAL: US$ 4. billion TOTAL: US$ 7.8 Pre-FS document evaluation to get pre- FS approval; GCA gives the rights to project proponent FS evaluation Jatiluhur Water Supply (US$ 0.1 billion) Issuing approval letter: 1. Establishing the project as an Unsolicited Project;. Establishing the business entity as. Constructi on 1. rian - Legundi - Bunder - Manyar Toll 0.9 billion). Jakarta - Cikampek Elevated II Toll (US$ 4

5 PINA Plays a Major Role in Infrastructure Development in Indonesia Facilitation Function Facilitation Function Bring projects to financial close stage. Provide suggestions on project financing structure in collaboration with PT SMI & PT IIF. Promote projects pipeline through international roadshows and one-on-one meetings. Pipelining Function Prepare list of projects that are ready to be offered to investors and list of potential investors who will invest. Provide the latest information updates of projects to investors. Ecosystem Function Create investment ecosystem which can encourage increased investment in Indonesia: Assesment of investment regulations, policy recommendation and relaxation. Accelerate implementation of creative financing instruments: Discretionary funds (RDPT Equity) Perpetuity Notes, Asset Backed Securities, Callable Preferred Stock, Securitization and LCS. 5

6 How PINA Facilitates Investors in Equity Financing Enhancing the Equity Participation by Deepening Capital Markets Direct Equity Financing Direct equity participation in an infrastructure company (investment platform) Equity investment Investor purchases equity instruments issued by infrastructure company (investment platform) such as discretionary funds, perpetuity notes, and callable preferred stocks or other nearequity related instruments deepening capital markets 6

7 PINA Projects Pipeline Waskita Toll Trans Java and Non-Trans Java Toll (18 Projects) (IDR 15.0 trillion/ USD 10,000 million) 6 4 BIJB (Development Stage and Aerocity Projects) (IDR 0.0 trillion / USD,7 millio PT PJB Power Plants ( Projects) (IDR 14.5 trillion / USD 1,071 million) 5 PT RAI R-80 Airplane (IDR 1.6 trillion / USD 1,600 million) PT PLN Power Transmission (IDR 7.5 trillion / USD,040 million) 6 Flores Prosperindo, Ltd. Area Development Flores Island (IDR 1.5 trillion /USD 1,000 million) 7

8 PINA encourages a better investment climate in Indonesia PINA pushes several new rules and regulations that improves investment appetite Regulation Advocacy Coordinate with OJ, Indonesian Financial Services Authority, to relax the regulations & issue the new investment instrument(s); Coordinate with IAI, Indonesian Accounting Association for aligning of financial recording rules. Improvement of Governance & Regulation Develop strategic plan and good governance guidelines of PINA; Conducting related research and studies to strengthen the functions and roles of PINA in investment funding schemes. Socialization & Coordination Continues to hold PINA socialization forum with various stakeholders (PINA Day); Coordinate with various related associations that have potential of becoming investees or investors. 8

9 9 REPUBLI Contact us Спаси бо spasibo Terima asih Coordination Facilitation Capacity Building Accelerating Implementation in Indonesia PINA Center for Private Investment Ministry of National Development Planning / Jalan Taman Suropati, Menteng Jakarta Pusat, Indonesia 1010 Tel: info@pina.bappenas.go.id