1. EXPANDING OPPORTUNITIES FOR INFRASTRUCTURE INVESTMENT IN DEVELOPING COUNTRIES
by:
Desi Arryani
President Director PT Jasa Marga (Persero) Tbk
Pic : Bali Mandara Toll
4th Road Engineering Association Of Asia and Australasia
March 23rd, 2016

2. INDONESIA IN THE FUTURE
16th largest Economy in the world
In 2030
7th largest Economy in the world
Mc Kinsey Global Institute
Source : Mc Kinsey Global Institute

3. Lack of accessibility and connectivity in infrastructure
CHALLENGES
Indonesia economy continues to grow but it is not equally distributed throughout Indonesia
Lack of accessibility and connectivity in infrastructure
This gap of accessibility and connectivity in infrastructure must be resolved immediately by the Government

4. Freeway Provision in United States, China and Malaysia
BEST PRACTICES
Freeway Provision in United States, China and Malaysia
Economic Growth
Increase 2-3 times
Economic Growth
Increase 2-4 times
Economic Growth
Increase 5-9 times
Overall, the results reveal that provision of Infrastructure is one of the main indicators
to drive economics’ growth.
Source ; World Bank 2014 4

5. Information Communicaton and Technology
NATIONAL CONNECTIVITY
National connectivity needs to be strengthened, therefore the economy can grow and competitiveness in regional and international level may increase
WHAT SHOULD BE IMPROVED to strengthen national connectivity ????
SISLOGNAS
National Logistic System
SISTRANAS
National Transportation System
Regional Development
RPJMN and RTRWN
Information Communicaton and Technology 5

6. MEDIUM TERM NATIONAL DEVELOPMENT PLAN 2015-2019 (RPJMN)
2.650 km of New street
1.000 km of Toll road
km of Toll road maintenance
Construction of 15 new airports
Procurement of 20 pioneering aircrafts
Airport development for Air cargo service in 6 locations
Construction of km railway in Java, Sumatera, Sulawesi and Kalimantan
Construction of 24 new ports
Procurement of 20 pioneering cargo ships
Air cargo in 6 locations
Construction of ferry port in 60 locations
Procurements of 50 ferry units
Construction of BRT in 29 cities
Construction of rapid mass transit in 17 big cities

7. Jasa Marga Medium Term Plan Jasa Marga contributes 731* KM of 1000 KM
GOVERNMENT TARGET
RPJMN (2015 – 2019)
Government Target:
1000 Km Toll Road
Jasa Marga Medium Term Plan
(2015 – 2019)
Jasa Marga contributes 731* KM of 1000 KM
Note : *) Based on toll roads owned by Jasa Marga, construction will be finished on 2019.

8. INFRASTRUCTURE DEVELOPMENT NOWADAYS
Lack of provision in infrastructure is one of the Indonesia lag factor compared to other country
To Accelerate Economic Growth
Requires huge investment and long-term
Limited Government Fund
Public Private Partnership schemes is urgently required
OPPORTUNITY

9. Government Target 1000 Km Toll Road : 250 km /year
TOLL ROADS GROWTH IN INDONESIA
RPJMN (2015 – 2019)
Government Target 1000 Km Toll Road :
250 km /year
Era Orde Baru (1978 – 1998) = 520 km  26 km/year
Era Reformasi (1998 – 2010)  9,25 km/year
Era Kabinet Bersatu II (2010 – 2014)  target 120 km  in 2013, total constructed toll road only 43,5 km  14,5 km/year
Total Operated Toll Road
( ) : km
Average growth : 𝟗𝟔𝟓.𝟖𝟒 𝒌𝒎 𝟑𝟖 𝒚𝒆𝒂𝒓 = ±𝟐𝟓 𝒌𝒎/𝒚𝒆𝒂𝒓

10. TOLL ROADS GROWTH IN INDONESIA
ASSUMPTIONS
CONCLUSION
GOVERNMENT TARGET OF 1000 KM TOLL ROAD
( )
COMPLETED IN
40 YEARS
USING SAME METHOD
AND SYSTEM
8 x Presidential Election

11. PUBLIC PARTNERSHIP PARTNER (Build Operate Transfer)
PPP SCHEME
In principle,
government have to develop new road network
To Accelerate
Development Toll Road
PUBLIC PARTNERSHIP PARTNER
(PPP) SCHEME
PPP SCENARIO : RISK SHARING BETWEEEN GOVERNMENT AND INVESTOR
(Every Risk is owned by the party Most Likely To Control That Risks)
PPP
SCHEME
BOT
(Build Operate Transfer)
SBOT
(Supported Toll Road)
BOO
(Build Own Operate)
BTO
(Build Transfer Own)
Operasional Contract
VGF 11 11

12. Deficit Cash Flow on Initial Operation
TOLL ROAD INVESTMENT CHARACTERISTICS
Business Plan Chart
Deficit Cash Flow on Initial Operation 5
Risk
Toll Road Investment Characteristics :
Long term investment with 8-14 years pay back period
High investment for construction cost
Deficit Cash flow in ramp-up period
(5 years)

13. Government of Indonesia
COMPANY STRUCTURE
18 Toll Road Business
Subsidiaries
4 Non-toll Road Business Subsidiaries
Government of Indonesia
70%
Public
30%
Edit dibagi tol dan non tol

14. The Largest Toll Road Operator in Indonesia
Leading toll road operator in Indonesia with 38 years of experience.
Manages and operates 593 km of toll roads in Indonesia – 61% share.
Jasa Marga operates most of the busiest toll roads in Indonesia – 80% share of average daily traffic on toll road.
Urban concentration in Jakarta metropolitan area – some of Indonesia’s busiest toll roads.
Regional concentration in Java and Sumatera – most populated islands in Indonesia.
Tambah market share traffic 80%

15. JASA MARGA NEW PROJECTS TOTAL 804.77 115.98 15 15 Concesson/Section
Expiration
Length
Investment Cost
Jasa Marga
(km)
(Rp trilion)
Ownership 1
Bogor Outer Ring Road (1)
2054
11,00
4,00
65% 2
Semarang-Solo (part of Trans Java) (2)
2055
72,60
7,30
73,91% 3
Gempol-Pasuruan (part of Trans Java)
45 years from effective date
34,20
4,17
98,09% 4
JORR2 (Cengkareng-Kunciran)
35 years from effective date
14,20
4,98
76,20% 5
JORR2 (Kunciran-Serpong)
11,20
2,86
60% 6
Surabaya-Mojokerto (3)
2049
36,30
4,03
55% 7
Gempol-Pandaan(6)
37 years from effective date
13,60
1,31
89,17% 8
Medan-Kualanamu-Tebing Tinggi
40 years from effective date
61,70
4,71 9
Solo-Ngawi (part of Trans Java)
90,10
9,21
59,99% 10
Ngawi-Kertosono (part of Trans Java)
87,02
7,05 11
Cinere-Serpong
10,14
2,57 12
Porong – Gempol
2044
10,00
2,80
100% 13
Batang-Semarang (part of Trans Java)
75,00
11,04 14
Pandaan-Malang
37,62
5,97 15
Manado-Bitung
39,90
5,12 16
Balikpapan-Samarinda
99,35
9,97 17
Jakarta-Cikampek Elevated
36,84
16,23
80% 18
Jakarta-Cikampek II
36 years from effective date
64,00
13,37
80% 
TOTAL
804.77
115.98
Notes: (1) Section 1: Sentul-Kedung Halang (3.85 km) is operated since 23 November 2009; Section 2A: Kedung Halang-Kedung Badak (1.95 km) is operated since 04 June
(2) Section 1: Semarang-Ungaran (10.80 km) is operated since 17 November 2011; Section 2: Ungaran-Bawen (12.30 km) is operated since 04 April 2014.
(3) Section 1A: Waru-Sepanjang (2.30 km) is operated since 05 September 2011, Section 4: Kriyan-Mojokerto is operated since 19 March 2016
(4) Section Gempol-Pandaan (13.61 km) is operated since 12 June 2015.
(5) Jasa Marga Chosen as the Initiator of Jakarta-Cikampek II and Jakarta-Cikampek II Elevated Toll Roads 15 15

16. RISK SHARING AND PROFIT
PT JASA MARGA
TOLL ROAD DEVELOPMENT STRATEGY
RISK SHARING AND PROFIT
TOLL ROAD DEVELOPMENT STRATEGY
Regional Owned State
(BUMD)
SOE (BUMN) /
Private Company
P A R T N E R S H I P
Construction Company :
More Competitive Construction Cost
Construction Pre Financing Contract
Financing Company :
Funding
Cash Deficiency on Ramp Up Period
Private Company :
Experienced in related business development such as property in toll road corridor
Regional Owned State (BUMD):
Legalization and Regulation (land acquisition acceleration)
Indonesia Infrastructure Guarantee Fund
Providing government guarantees for infrastructure projects

17. THE MULTIPLIER EFFECT OF TOLL ROAD’S EXISTENCE
Development of the suburb area
- Cimanggis
- Cibubur
- Sentul
Development of the suburb area
Cikarang
Bekasi
Development of the industrial area
Cibitung-Cikarang
Karawang
Investment Opportunity
Transportation
Factory Outlet
Culinary
ULUJAMI-BSD
Satellite cities :
Serpong
Bintaro

18. THE MULTIPLIER EFFECT OF TOLL ROAD’S EXISTENCE
BALI MANDARA
Time and mileage becomes shorter;
Investment opportunities in tourism;
Hotels;
Café, Mall/Shopping Centre;
Small Business, Fisherman;
Bali Economic Growth Significantly increased.

19. THE MULTIPLIER EFFECT OF TOLL ROAD’S EXISTENCE
(Increasing number of man power)
Increasing number of man power in toll road business (multiplier effect):
Man power during construction and operation (every 25 km toll road) is about man power
(this number of man power is not included other industrial field due to the existence of the toll road)

20. Thank You