INDO WIND POWER - INFORMATION MEMORANDUM (March 2014) (Contractors)

PT.
Energi
PT. Energi Angin Indonesia
Information Memorandum
Information Memorandum
February 2014
STRICTLY PRIVATE & CONFIDENTIAL
Asia Green Capital Pte Ltd – February 2014
DOCUMENT IDENTIFICATION
Date:
XX/February/2014
Document number:
No. XX
Distributed to:
Distributed to:
XX
Strictly Private & Confidential 2 Copy No XX – [INVESTOR NAME]

Notice to Recipients
This Document is prepared by Indo Wind Power Holdings Pte Ltd (the “ Company”) for the sole purpose of an equity
raising for the Company (the “Proposed Transaction”). This confidential information document (the “Information
Memorandum”) will be issued to a limited number of recipients (“Recipients”) for the sole purpose of assisting them
in deciding whether they wish to proceed with a further investigation of the Company and to be considered as
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available to professional investors who are deemed sufficiently expert and/or sufficiently experienced to
understand the aspects and risks involved in preparing for and completing an acquisition in general, and specifically
an acquisition of a participation in a company in the market for renewable energies and wind power, and who will
obtain expert advice where and when needed.
needed
This Information Memorandum has been prepared for information purposes relating to Recipients’ possible interest
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confidentiality agreement (the “Confidentiality
Confidentiality Agreement
Agreement”).
). It may be used only for the purposes set forth in this
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Company

This Information Memorandum does not purport to be all‐inclusive, or to contain all the information that a
Prospective Investor may desire in deciding whether or not to offer to purchase the Company. No representation or
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from In particular,
particular no representation or warranty is given as to the achievement or
reasonableness of future projections, management targets, estimates, prospects or returns, if any. Any Prospective
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In furnishing this Information Memorandum, the Company and its shareholders shall have no obligation to provide
the recipient with access to any additional information, or to update this Information Memorandum, or to correct
any inaccuracies in any such other information which may become apparent. The Company and its shareholders
shall have no obligation to consider or to accept any offer, whether or not it represents the highest price.
This document does not constitute an offer or invitation for the sale or purchase of securities or any of the
businesses or assets described in it in any jurisdiction and does not constitute any form of commitment or
recommendation on the part of the Company or any of their respective subsidiaries or associated companies.
Neither this document nor any other written or oral information made available to any Prospective Investors or its
advisers will form the basis of any contract. A proposal regarding the Company will only give rise to any contractual
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will accept only those obligations to a Prospective Investor which may be set forth in such definitive agreement.

The distribution of this Information Memorandum in certain jurisdictions may be restricted by law and, accordingly,
recipients of this Information Memorandum represent that they are able to receive this Information Memorandum
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All costs incurred by Recipients in connection with their investigation and evaluation of the Proposed Transaction
shall be borne by the Recipients, unless agreed otherwise. This document shall be governed by Singapore law.
All communications, inquiries and request for information relating to these materials should be addressed to the
following individuals at Asia Green Capital, financial advisor and project developer to the Company:
Asia Green Capital (Singapore) Pte Ltd:

Mr. Edgare Kerkwijk Mr. Thijs Sablerolle
Managing Director Project Development Director
HP: +65 9682 2440 (Singapore) HP: +62 813 859 235 09
HP: +62 812 874 800 11 (Indonesia)
E‐mail: edgare@asiagreencapital.com E‐mail: thijs@asiagreencapital.com
Address: 8a Wilkinson Road Tel: + 65 6238 8079
Singapore 436766 Fax: +65 6238 8953

Table of Contents
Investment Opportunity 9
62.5MW Wind Power Project in South Sulawesi
Investment Opportunity – PT. Energi Angin Indonesia
Executive Summary
Executive Summary 11
Introduction – The Project
Development Consortium
Geographical Location
Overview Development Status
Indonesian Electricity Market
Organization and Management Overview 17
Project History
Development Team
Project Overview 21
Introduction
Wind Yield Study
Wind Turbine
Grid Connection
Grid Connection
Land Rights
EPC and O&M Partner
Technical Consultant
Overview Project Permits and Licenses Process
Power Purchase Agreement
CDM Registration
Financingg

Table of Contents
Financials 44
Assumptions
Sources and Uses of Funds
Financial Forecasts
Investment Proposal 52
Investment Considerations
Indicative Term Sheet – Funding Round A
Indicative Term Sheet – Funding Round B
Next Steps 57
Envisioned Process & Timeline – Funding Round A
Envisioned Process & Timeline – Funding Round B
A
Appendix A –
di A Wind Power Industry
Wi d P I d t 61
Appendix B – Indonesian Energy Market 64
Appendix C – Indonesia Country Overview 78
Appendix D – Overview South Sulawesi Province 81
Glossary 83

1 pp y
Investment Opportunity

62.5 MW Wind Power Project in South Sulawesi
● PT. Energi Angin Indonesia (“Energi Angin Indonesia” or the “Project Company”)
is a special purpose vehicle set up for the purpose of developing and operating a
62.5 MW wind farm in South Sulawesi (Indonesia).
● Energi Angin Indonesia is currently owned by a development consortium led by
Asia Green Capital Pte Ltd through Indo Wind Power Holdings Pte Ltd (“Indo
Wind Power” or the “Company”).
● The partners in the project development include an impressive list of names,
including: GE Energy (initiator of the wind data collection and the proposed wind
turbine supplier), Mr. Henry Maknawi (CEO of the Kencana Group) and Wind
Prospect Pty Ltd (a leading wind project consultancy group).
● The key advantage of the project is that it has over 3.5 years of wind data
collected indicating an average wind speed ranging from 6.1 to 7.8 m/s at hub
height This makes it a bankable project with financial close expected in
height.
December 2013.
● In addition, Indo Wind Power owns a second wind mast in the same regency
which has slightly lower average wind speeds but which is on a large plateau
with a potential of 40 turbines. Indo Wind Power is currently analyzing further
sites in the Jeneponto regency and across Indonesia.
● The Indonesian Government is preparing a feasible feed‐in tariff for wind power
to be voted into law in 2013.
● The project is located only a few kilometers away from a 150 kV transmission
line and in a region with extensive growth in energy demand.

Investment Opportunity – PT. Energi Angin Indonesia
● To achieve its ambition of becoming the first large scale operational wind farm in
Indonesia, Indo Wind Power is seeking a partnership with investors to achieve
Financial Close (Funding Round A) and to fund the required equity to construct
the wind farm (Funding Round B).
● Interested investors are encouraged to start analysis of the project in an early
stage and to follow the development progress.
● The proceeds of the equity raising will be used for the following:
– Round A: To fund the final stage of development leading up to Financial
Close including lender due diligence, legal drafting of the project contracts
and loan and equity documentation.
– Round B: To fund the required equity to complete the installation of the
wind turbines and to reach the operational stage.
– The funding proceeds will be required in tranches during development and
construction.
● In return, Indo Wind Power offers:
– A significant shareholding in the first large scale wind project in Indonesia.
– Stable returns for 20 years based on a PPA with state‐owned electricity
company PLN.
– The second location in the same regency for which Asia Green Capital owns
the mast and wind data can be considered as part of an agreement.

2 y
Executive Summary

Introduction – The Project
● Indo Wind Power has entered into an exclusive agreement with GE Energy to
acquire the development rights of a wind farm in the Jeneponto Regency in
South Sulawesi (Indonesia).
● The site allows for the installation of at least 25 wind turbines. The development
team envisages using turbines of 2.5MW capacity each. The total project
capacity will thus be 62.5 MW.
● The proposed site is currently used as farmland, mainly corn. After construction
of the wind farm, farming can continue without any problems while the local
community gets additional land lease income derived from the project.
● IIn June
J 2009 Winrock
2009, Wi k International
I t ti l (contracted
( t t d by b GE Energy)
E ) installed
i t ll d the
th
initial meteorological mast on the site and started the collection of wind data.
● A wind yield study has been performed on 3.5 years of data and a Net Capacity
Factor of 36% is predicted with an average wind speed of 6 m/s for the
measurement mast, resulting in a net annual P50 energy output of 197 GWh.
● A 150 kV transmission line runs past the site. The Jeneponto substation is
located 20 km to the south east of the site,site while there is a 2 x 125 MW coal
coal‐
fired steam power plant located 8km to the south west of the site. Most likely
the plant will tap into the transmission line near the site.

● Indo Wind Power has selected a number of partners to assist in the development of the project:
Promoters
Financing Asia Green Maknawi Family PPA / PLN

(Debt + Equity) Capital Local Authorities
Consultants
WTG Supplier WinRock
PT Energi Angin Indonesia Wind Prospect

GE
AECOM
Operational
Team GHD Hill Michael
GE GDSI
Berwin Leighton
Paisner

● The proposed site is located on the island of Sulawesi in the South Sulawesi
province (Jeneponto regency).
● The proposed site is located 2 km from the coast on a ridge which creates
optimal conditions for wind turbines. The site
site’ss altitude ranges from 122m to
320m above sea level.
● The area’s infrastructure is well developed with 150 kV transmission lines
passing near the site. The main road along the coast is 2 km away.
● Road access near the site is more basic with a single‐track winding road leading
up to the site.
Jeneponto, South Sulawesi

Overview Development Status
 Completed Installation of measurement mast and data collection
 Completed Identification and selection of project partners
 Completed Establishment of project company
 Completed Securing land rights through Ijin Prinsip (‘In Principle License’)
WIP Expected May 2014 Land acquisition
WIP Expected Apr 2014 Getting commitment on PPA price from PLN
 Completed Funding Round A
WIP Jun 2014 Securing approvals, permits and licenses
Aug – Oct
O 2014 Funding Round B
Aug – Sep 2013 Finalizing all project contracts, design, EPC plan, O&M plan
Expected H2 - 2014 Financial Close

● Indonesia currently has over 33 GW of electricity generating capacity installed of
which 79% is operated by state‐owned power company PLN, 18% by
independent power producers (IPP) and 3% by Private Power Utilities (PPU).
● Only around 10% of the installed capacity is renewable, consisting mainly of
hydro power (7%) and geothermal (3%).
● The remaining 90% consists of coal (39%), gas (28%) and oil / diesel (23%).
● Electricity demand until 2029 is projected to grow by 9.5% per year, translating
into a need for additional capacity of 156 GW until 2029.
Relevant Regulations for Renewable Energy Projects

● Currently, privately developed renewable energy projects can obtain a PPA with
PLN through the Direct Appointment procedure. The PPA price can be:
Electricity Mix. – Negotiated with PLN requiring approval from the Ministry of Energy and
Source: Ministry of Energy & Mineral Mineral Resources
Resources
– For projects below 10 MW, a government‐set price which does not require
approval from the Ministry of Energy and Mineral Resources:
• Medium voltage: IDR 656 / kWh times F, with factor F being 1.2 for
Sulawesi
• Low voltage: IDR 1004 / kWh times F
● The Ministry of Energy and Mineral Resources has announced an upcoming feed‐
in tariff for amongst others wind power to be voted into law soon.
● For wind power in Sulawesi, a PPA price of IDR 1500 to 1700/ kWh is expected.

Organization and
3 Management Overview

Project History
● In 2009, GE Energy started to explore the potential for wind power in Indonesia.
With just 1.1 MW of wind power installed, no wind energy related regulations
and low wind speeds measured at meteorological stations, the potential of the
Indonesian wind market was doubtful.
● GE Energy contracted WinRock International to perform a desktop study to find
the best locations for wind power and subsequently installed wind measurement
masts on the 5 best locations.
● Winrock International installed 2 wind measurement masts in the Jeneponto
regency (South Sulawesi) in June 2009.
● Out of all locations with measurement masts in Indonesia, mast 0952 in
Jeneponto regency recorded the best wind resources and the WinRock
International wind study showed the project is feasible
● A GE Energy
As E saw itself
it lf nott wellll positioned
iti d to
t develop
d l the th project
j t to
t Financial
Fi i l
Close, it decided to offer the development rights to a number of companies in
2012.
● Asia Green Capital acted fast and decisive to form a development consortium to
secure the project rights.
● The development consortium includes Asia Green Capital and Mr. Henry
Mr. Henry Maknawi of Kencana Group. Furthermore, Wind Prospect and Winrock Indonesia
Maknawi
as technical consultants are involved in the development.
● GE Energygy remains involved byy p
providingg technical advice and retains the right
g to
supply wind turbines to the project at a commercial price.

Core Development Partners
● PT. Energi Angin Indonesia is owned by Asia Green Capital and its employees
through Indo Wind Power and by Mr. Henry Maknawi.
● In this set up,up Asia Green Capital is responsible for project management and
attracting financing for the project.
● Mr. Henry Maknawi is responsible for arranging land rights, PPA negotiations
and the permit and license process.
● More information about Asia Green Capital and Mr. Henry Maknawi is provided
under ‘Development Team’.
Other Partners
● GE Energy originally commissioned the installation of the wind measurement
mast and remains involved as turbine supplier and provides technical advice.
● Wind Prospect has been hired for this project as technical consultant and will be
responsible for among others the wind yield study, installation and maintenance
of a second wind measurement mast, construction and O&M advice and
commercial advice.
● More information about these partners is provided in Section 4.

Development Team
Edgare Kerkwijk Henry Maknawi

Managing Director – Asia Green Capital Land rights, PPA and licenses
Edgare Kerkwijk is the Managing Director of Asia Green Henry Maknawi is the Chairman and CEO of Kencana
Capital. Prior to joining AGC, Edgare was Partner and Agri Limited. Since he founded the group’s plantation
CFO for BioX Group, an integrated renewable energy operations in 1995, Mr. Maknawi has spearheaded the
firm. He still remains a shareholder. Edgare also held expansion of the group and oversaw the growth of the
several senior positions for Rabobank International in various business units. In November 1994, Mr. Maknawi
Europe and Asia. Edgare holds a Masters of Business was awarded the Primaniuyarta Award, which is the
Economics from the Erasmus University in Rotterdam highest award from the Indonesian Government for local
(Netherlands) and a Bachelor of Economic Psychology exporters for their achievements in increasing non‐oil
from the Catholic University in Tilburg (Netherlands). and gas exports.
Karel Sampe Pajung Thijs Sablerolle

Land rights, PPA and licenses Project Development Director
Karel Sampe Pajung works at Kencana Energy where he Thijs Sablerolle worked for ABN AMRO in London from,
is responsible for project development of renewable 2005 until 2008, attracting equity and project finance for
gy p
energy projects
j across Indonesia, includingg biomass and renewable energy gy assets and reachingg VP level. After
hydro energy projects. Before working at Kencana that, he worked as an investment manager at EUR
Energy, he spent many years in higher management 200mln private equity fund 4rae Renewable &
positions at PLN. Amongst others he was the general Alternative Energy Investments. Currently, he is
manager for PLN in 3 Indonesian provinces. His Managing Director at Solinvest Renewable Energy, a
experience with land acquisitions and permit procedures renewable energy project developer in Jakarta. Thijs
i key
is k to execute the h development
d l process efficiently
ffi i l h ld a Master
holds M i Industrial
in I d i l Engineering
E i i & Management
M
and according to schedule. from the University of Twente (Netherlands).

4 j
Project Overview

Introduction
● PT. Energi Angin Indonesia has been established in December 2012 in Jakarta
under Indonesian law for the sole purpose of serving as a project company for
the wind project in South Sulawesi. Currently the company is in the process of
becoming a foreign investment company (PT PMA).
● At this moment, 65% of the shares are owned by Indo Wind Power Holdings Pte
Ltd and the remaining 35% by Mr. Henry Maknawi.
● The shares in Indo Wind Power Holdings Pte Ltd are owned by members of the
development team and Asia Green Capital.
The Project
● The project will be a 62.5 MW wind farm in the Jeneponto regency, South
Sulawesi.
● This section will provide a detailed project overview of all the different aspects
of the project and its development.

● The proposed site is located in the western part of the Jeneponto regency, 53 km
southeast of the South Sulawesi province capital Makassar and about 18 km
northwest of Jeneponto city along the main coastal road named Jalan Poros‐
Jakalar‐Jeneponto.
● From Jalan Poros‐Jakalar‐Jeneponto it is about 2 km via a winding road to the
southern tip of the site.
● The site covers a plateau‐like landscape in the south and a mountain ridge in the
north over a length of approximately 3 km. The site’s altitude ranges from 122m
to 320m above sea level.
● The scheduled locations of the turbines are scattered in the southern part of the
site (15 turbines) and lined up in a row on the ridge in the northern part (10
turbines).
● Th lower,
The l southern
th area off the
th site
it is
i relatively
l ti l flat
fl t with
ith altitudes
ltit d ranging
i
between 140 to 160m above sea level. It consists of farmland with mainly low
level cassava crops and scattered mango and palm trees (roughness class 2.5).
● The higher, northern area of the site is more rough and has less cultivation and
more trees (roughness class 3.0).
Wind Resource Map.

Source: GE Energy Report

Geographical Location – Map
Location of Site 52.

Source: Google Maps

Geographical Location – Site Map
Small road between

main road and the site
Source: GE Energy
Positioning of the 25 turbines

and the metering mast. The
power grid is 1 km away.
Source: GE Energy

Geographical Location – Infrastructure
Sea Transport
● There are 2 possible locations to transport the wind turbines and related
equipment to the site:
– The port of Makassar,
Makassar which is 75 km by road to the site. site This is a
‘Pelabuhan Kelas Utama’ which is the highest port classification of the
Indonesian government.
– The private port of PT. Bosowa Energy (subsidiary of the Bosowa Group) at
Makassar port
its 2 x 125 MW coal‐fired steam power plant which is used for coal delivery.
The distance to the site is about 8 km by road.
● In cooperation with the EPC contractor, Indo Wind Power will select the most
suitable port.
Road Transport
● From the selected port the equipment will be transported by road. The road
leading up to the site is narrow (3‐4m) and has a number of sharp turns. It is
expected some civil works are required to bring the equipment to the site.
Grid Connection
● A 150kV transmission line runs near the main road to the south of the site.
● Potential connection points are the Jeneponto substation at 23 km distance (by
road) or a grid connection point into the transmission line near the site. PLN
prefers a connection into the transmission line near the site.

Wind Yield Study – Overview
● In 2009, GE Energy commissioned WinRock International to install a number of
wind metering masts across Indonesia of which two in the Jeneponto Regency.
● On the proposed site, Mast 0952 was installed in 2009:
– Data measurement started on 1 June 2009 providing at this moment over 4
years of measurement data.
– The mast height is 57.1m.
● Wind Prospect has been engaged to produce a wind resource assessment based
on 3 years of measurement data from Mast 0952.
● The report is based on:
– NRG Max#40 anemometers at 32m, 47m and 57.1m heights and a NRG
Symphonie data logger.
– Measurements are 10 minutes averages with 2 second sample sizes.
– 3 available integer years of data from 22 November 2009 until 22
November 2012 to avoid seasonal bias.
Mast 0952 – Energy calculation using WindPRO software utilizing the WAsP wind flow
model.
● The mast is situated in the southern lower area of the site. The data have been
extrapolated to estimate the wind resource at the higher area of the site:
– A second wind metering mast will be installed to improve the accuracy of
the wind yield prediction.
– Further wind resource assessments will be conducted during the
development process using data from both masts.

Wind Yield Study – Assumptions & Results
Main Inputs & Assumptions:
● Wind data from Mast 0952 (22 November 2009 – 22 November 2012).
● Site annual mean air density at hub height of 1.127 to 1.148 kg/m3.
● Digital
Di it l Elevation
El ti M acquired
Map i d from
f th Shuttle
the Sh ttl Radar
R d Topography
T h Mission
Mi i
(SRTM) up to 10km from the site to analyze terrain elevations.
● Roughness model was created by Wind Prospect based on publicly available
Data collection equipment at images and site photographs. The map extends at least 25 km from the site.
Mast 0952
Results:
● Annual mean wind speed at hub height at WTG locations: 6.1 until 7.8 m/s.
● Annual Energy Production (P50) after terrain and wake effects (6.5% loss) only:
– Energy
E P d ti
Production: 217 9 GWh / year
217.9
● Net Annual Energy Production (P50) after terrain and wake effects (6.5% loss),
electrical efficiency losses (3%), availability losses (3%), scheduled maintenance
(0.7%), substation maintenance (0.2%), grid interruptions (2%), high wind
hysteresis (0.5%) and blade degradation (0.5%):
– Energy Production: 197.1 GWh / year
– Capacity Factor: 36%

Wind Turbine – GE 2.5‐120
● The turbine type envisaged to be used in this project is the GE 2.5‐120 turbine
from GE Energy. 2.5 refers to the nameplate capacity of 2.5 MW and 120 to the
diameter of the rotor blades of 120 m.
● GE Energy has the exclusive rights to supply the turbines for this project
provided that GE Energy offers commercially reasonable terms and conditions.
● This turbine is part of GE’s 2.5MW series which currently has an installed base of
over 1,100 units out of installed 17,600 GE wind turbines worldwide.
● The product specifications are:
– GE 2.5 MW generator
– 120 m rotor diameter and 58.7 m blades
– For 50 Hz or 60 Hz
– 110 m and 139 m hub heights (110 m envisaged)
– Dual voltage (6 kV/690V) asynchronous generator
– Designed for IEC Class III wind sites
– 106 dB(A) standard sound power level
– Designed according to IEC 60034 standard
– Standard tower corrosion protection
– Rotational direction: Clockwise viewed from a downwind location
– Proven single‐blade pitch control

Power Curve of the GE 2.5‐120
Source: GE Energy Product Brochure


Grid Connection
● The proposed site is less than 2 km away from a 150 kV transmission line.
● The Jeneponto substation is 23 km away by road. According to PLN, this
substation had a peak demand in 2011 of 15.9 MW and a capacity of 20 MW,
considerably smaller than the output of the wind farm at most times.
● The 2 x 125 MW coal‐fired steam power plant of PT. Bosowa Energy is connected
to the transmission line between Jeneponto and Tallasa (‘U’ in the picture) and
the power is directed in the direction of Makassar.
● It is expected that the wind farm will be connected to the transmission line as
near as possible to the proposed site.
● The project team is currently prioritizing discussing the grid connection and PPA
with PLN. PLN has indicated they also prefer a grid connection directly into the
transmission line near the site.
● A grid integration study is currently being performed by GHD Michael Hill.
High voltage grid in southern South Sulawesi. Source: PLN (RUPTL 2011-2020)

Land Rights
Plan for Securing Land Rights
● An estimated 90% of the land is privately owned and the remaining 10% is
owned by local villagers.
villagers
● Currently, the discussions with the bupati (local regent) of Jeneponto and land
owners are in progress.
● In the process possible nuisances for the local community such as noise emitted
Mountain ridge in the north part by the turbines and shadow flickering are being addressed. Noise levels are
of the site expected to be kept below 50 decibels in the community’s residences.
● Due to the fact that the land surrounding the turbines can still be used for
farming activities and the general low land prices in the area, no problems are
expected to secure the land.
● The land acquisition can be done in two ways: the productive land is to be leased
while the less productive land, which is more rocky, can be bought.
● The project company has obtained a license from the local government which
allows it to enter into discussions with the land owners to secure the land.
● The land rights will be secured following the guidelines of IFC’s Performance
Standards under supervision of AECOM. AECOM will also conduct the
View towards the sea from the
mountain ridge Environmental and Social Impact Assessment based on IFC’s PS.

EPC and O&M Partner
● Indo Wind Power will select a reputable and experienced contractor to be the
EPC and O&M partner for the project through a selection process:
– Around June 2014, a number of contractors will be invited to submit an
Expression of Interest consisting of a preliminary design and pricing
proposal
– The best 2 to 3 contractors will be invited for a next selection round after
which the contractor will be selected based on detailed design, price and
EPC and O&M contract conditions
● Contractors will be invited for the Expression of Interest based on track record,
financial strength and reputation. Previous EPC experience in Indonesia is
recommended.

EPC Contract – Key Terms & Conditions
● Indo Wind Power aims to come to a bankable EPC contract with a workable
distribution of risks.
● The EPC contract will include the following key terms and conditions for which
the numbers will be negotiated in a later stage with the turbine supplier and BoP
contractor.
Key terms and conditions:

● Construction period: [18] months
● Performance Bond by parent company: [x]% of contract value
● Limitation on Liability: cap of [x]%
● Availability Guarantees by contractor:
● Guaranteed Availability of each WTG: [x]%
● Guaranteed Availability of wind farm: first [x] months
● Penalty for availability below Guaranteed Availability
● Liquidated Damages:
● Delay
D l LDs:
LD USD [x]
[ ] per day
d per WTG with
ith cap
● Performance LDs: USD [x] per day per WTG if wind farm is constrained
with cap
● Power Curve Test: Power Curve Guarantee of [x]% with damages [x]% of EPC
price with cap and a period of [x] years

Technical Consultant – Wind Prospect Asia Pacific
● Wind Prospect Asia Pacific has been engaged as technical consultant for the
project. Wind Prospect will conduct amongst others the wind yield study,
contractual and commercial advice.
● Wind Prospect is one of the most successful independent renewable energy

developers in the world. They have played a major role in the development of
wind energy onshore and offshore internationally.
● Wind Prospect has been involved in the wind industry since its inception in
Europe, and is a major player in the wind energy sector in the UK,
Ireland, France, Poland, South Africa, China and Australia.
● Wind Prospect has consented 1 GW of wind projects and has 5GW in

development. The engineering team has constructed 100 wind farms totaling
1.5GW of wind energy. The firm has advised investors on 5GW of wind projects.
● The company provides the following services for wind project developers:
– Site finding & feasibility studies
– Grid connection
– Wind resource
– Environmental assessment
– Planning & consenting

● To obtain the necessary permits, licenses and approvals, Indo Wind Power will
deal with the local regency (Kabupaten), the Indonesian Ministry of Energy and
Mining Resources (ESDM), with the Indonesian national electricity company PT
PLN (Persero) under the regulations for Direct Appointment of Independent
Power Producers and with other government authorities.
● The following lists are subject to regulatory change and verification.
● The list of required documents from the Kabupaten is as follows:
Document Indonesian Name Issuing Office Processing Time
In principle license Ijin Prinsip Bupati’s office Obtained January 8, 2013
Environmental Impact Analisa Mengenai Dampak Badan Lingkungan Hidup (to 75 working days for
Assessment (and subsequent Lingkungan (AMDAL) and be approved by AMDAL recommendation by AMDAL
environmental permit) Izin Lingkungan evaluation commission) evaluation commission + 10
working days for approval
Permit for designated land Ijin peruntukan penggunaan Kantor Pelayanan Perizinan 12 working days
use tanah (IPPT) Terpadu
Building construction permit Ijin mendirikan bangunan Kantor Pelayanan Perizinan 12 working days
(IMB) Terpadu
Interference permit Surat ijin gangguan (SIGA) Kantor Pelayanan Perizinan 10 working days
Terpadu
Location permit Ijin lokasi Kantor Pertahanan 14 working days

● List of required documents from ESDM as per Regulation no. 10 year 2005 of
ESDM:
Document Indonesian Name Issuing Office Application Time
Direct Appointment Approval Persetujuan penunjukan Director General of Electricity TBD

langsung and Energy Utilization
Temporary business license Ijin usaha ketenagalistrikan Director General of Electricity 30 days, valid for 2 years
for electricity for public use untuk umum (IUKU) and Energy Utilization
Sementara
Approval of the purchase Persetujuan harga beli Director General of Electricity 10 days
price of electricity tenaga listrik and Energy Utilization
Permanent business license Ijin usaha ketenagalistrikan Director General of Electricity 30 days, valid for 30 years
for electricity for public use untuk umum (IUKU) Tetap and Energy Utilization

● List of required documents from other authorities:
Document Indonesian Name Issuing Office Application Time
In principle license for Ijin prinsip penanaman model BKPMD (Regional Obtained 31 July 2013
domestic investment dalam negeri Investment Coordination
Board)
Appointment of the Developer Penetapan pengembang PT PLN (Persero) TBD

g Perjanjian
j j harga
g jjual beli PT PLN ((Persero)) Signing
g g 10 days y after
(not a license) listrik approval of the purchase
price by Kementerian ESDM

Color Legend
d to get all approvals:
Obtain project support from ESDM Process

Project Proposal to ESDM
PLN at feasible kWh price
PLN Process
Direct Appointment
Approval by ESDM Kabupaten Process
Application for temporary

Direct Appointment by PLN
business license ((IUKU))
stimation off minimum tiime required
Submit AMDAL report to Negotiation of PPA with

6 months
90 days 30 days
AMDAL evaluation PLN
commission
10 days
75 working days Approval
pp of temporary
p y
A
Approval
l off PPA b
by ESDM
business license by ESDM
Positive recommendation 10 days
on AMDAL by AMDAL Local permits: permit for
evaluation commission Signing of PPA with PLN
designated land use,
10 working days building construction
permit, interference permit,
Approval of EIA (AMDAL) Application for permanent
location permit,
by Kabupaten business license (IUKU)
environmental permit
30 days
Approval of Environmental Approval of permanent Financial Close of the
Permit by Kabupaten
Es
business license by ESDM project

● Indo Wind Power intends to enter into a Power Purchase Agreement (PPA) with
PT. PLN (Persero) or one of its subsidiaries to be guaranteed off‐take of its
electricity for a period of at least 20 years.
● Pending new regulations on a feedfeed‐in
in tariff for wind power, Indo Wind Power will
follow the currently applicable legislation as described previously.
● Indo Wind Power is aiming for a price per kWh of 1500 to 1700 IDR / kWh or USD
equivalent with an inflation indexation factor to cover operational costs.
● The project has been presented at the regional PLN head office in Makassar with
positive response. As a next step, the project will be presented to PLN’s head
office in Jakarta.
● Indo Wind Power will seek to negotiate the following provisions in the PPA:
– Guaranteed off‐take of all electricity produced at an agreed price
– Tenor of 20 years or more
– PLN guarantees the functionality of the electricity grid, i.e. PLN still
purchases the produced electricity in case of a grid black‐out
– Measurement of produced electricity at the point of grid connection
– Indo Wind Power retains all rights for carbon credits
– Payment in US Dollars
– Agreement backed by Indonesian government through the Indonesia
Infrastructure Guarantee Fund (IIGF) to improve credit risk

CDM Registration for Carbon Credits
● Indo Wind Power aims to utilize carbon credits to optimize investor returns and
is currently in discussions with a number of well‐known carbon credit companies.
● Initial calculations indicate the project can generate emissions for about 84,000
tons of CO2 per year. This number is based on the expected power production of
the project and an indicative emission factor for the South Sulawesi grid of
around 0.6 tons of CO2 per MWh
● No decision has been taken yet on the type of carbon credit such as Certified
Emission Reductions (CERs under the Clean Development Mechanism),
Voluntary Emission Reduction (VER) or a national / regional carbon credit
scheme such as the Australian carbon credit scheme.
● Such a decision will take into account the expected price per ton of CO2 and the
process for registration and verification.

Financing
Project Financing
● Indo Wind Power in cooperation with Asia Green Capital as financial advisor aims
to attract long‐term project financing from Indonesian banks.
● In cooperation with the project consortium,
consortium Indo Wind Power will be able to
meet the bankability conditions on schedule:
– Bankable wind study
– Bankable PPA
– Bankable EPC and O&M contracts
– Obtaining all permits and licenses
● Based on other projects in the Indonesian renewable energy sector Indonesian
banks will be keen to finance this project.
● In addition,
addition Indo Wind Power will explore international project financing,
financing such as
ECA backed development loans with investor‐friendly terms and conditions.
● Expected terms of the project finance loan are detailed in the next chapter.
Equity Financing
● Indo Wind Power envisages 2 rounds of equity raising:
– Round A: an equity investor joining the consortium during the
development stage to jointly bring the project to Financial Close
– Round B: an equity investor will provide the equity required for
construction of the plant and becomes majority shareholder in the project

5 Financials

Assumptions
● Indo Wind Power has built a proprietary financial model which has been
reviewed by Wind Prospect.
● The financial model assumptions will be verified and updated during the
development process.
PROJECT PARAMETERS
Capacity (MW) 62.5 Gross Capacity Factor 39.80%

Turbine Capacity (MW) 2.5 Losses 9.53%
Number of Turbines 25 Production / year (MWh) 197,135
Total investment 181,522 USD x 1,000 Production / MW / yr (MWh) 3,154
Cost per MW (capex and development) 2,684 USD x 1,000 Production / turbine / yr (MWh) 7,885
Cost per MW (all‐in) 2,904 USD x 1,000 Opex (1,000 USD / year) 3,625
PPA Price per kWh 0.165 USD / kWh Opex (1,000 USD / MW / year) 58
PPA Price per kWh 1,600.0 IDR / kWh Construction Period (months) 18
PPA Price indexation
PPA Price indexation 0 00%
0.00% Operational Period (years)
Operational Period (years) 20
DEBT PARAMETERS
Average DSCR senior loan 1.45 Senior Loan Size 140,480

Minimum DSCR senior loan 1.22 Interest Rate (all‐in) 9.00%
Gearing 77.39% Repayment method Annuity
Senior Loan Tenor (years) 15.00
EQUITY OUTPUTS
q y
Equity IRR 17.67%
Equity Payback Period (years) 6.44
Pay‐out Multiple 5.10

Sources and Uses of Funds

Financial Forecast – Profit & Loss
Profit & Loss Statement Project Total 2015 2016 2017 2018 2019 2020 2021 2022 2023
Revenues from Power Sales 647,030 15,923 32,182 32,517 32,517 32,517 32,517 32,517 32,517 32,517
Operating Expenses (123,192) (1,820) (3,822) (4,013) (4,214) (4,424) (4,646) (4,878) (5,122) (5,378)
Gross Profit / EBITDA 523,838 14,103 28,360 28,504 28,303 28,093 27,871 27,639 27,395 27,139
Depreciation and Amortization (181,224) (6,235) (12,469) (12,469) (12,469) (12,469) (12,469) (12,469) (12,469) (12,469)
Total Depreciation and Amortization (181,224) (6,235) (12,469) (12,469) (12,469) (12,469) (12,469) (12,469) (12,469) (12,469)
EBIT 342,614 7,869 15,891 16,035 15,834 15,623 15,402 15,170 14,926 14,670
Interest paid (118,248) (6,322) (12,328) (11,875) (11,380) (10,840) (10,251) (9,607) (8,903) (8,135)
EBT 1,547 3,563 4,160 4,454 4,783 5,152 5,563 6,023 6,535
Tax Paid (56,091) (387) (891) (1,040) (1,113) (1,196) (1,288) (1,391) (1,506) (1,634)
Profit After Tax 168,274 1,160 2,672 3,120 3,340 3,587 3,864 4,172 4,517 4,901
Dividend Paid (209,316) (1,579) (10,180) (10,231) (9,958) (9,666) (9,353) (9,019) (8,661) (8,278)
Retained Earnings
R t i dE i (41,042)
(41 042) (418) (7,508)
(7 508) (7,111)
(7 111) (6,617)
(6 617) (6,078)
(6 078) (5,489)
(5 489) (4,846)
(4 846) (4,144)
(4 144) (3,377)
(3 377)
Retained Earnings brought forward from previous period ‐ (418) (7,927) (15,038) (21,655) (27,733) (33,223) (38,069) (42,213)
Retained Earnings carried forward to next period (418) (7,927) (15,038) (21,655) (27,733) (33,223) (38,069) (42,213) (45,590)
Note: Amounts in USD x 1,000

Financial Forecast – Cash Flow Statement
Cash Flow Statement Project Total 2015 2016 2017 2018 2019 2020 2021 2022 2023
Profit After Tax 168,274 1,160 2,672 3,120 3,340 3,587 3,864 4,172 4,517 4,901
Add back: Depreciation 150,750 4,711 9,422 9,422 9,422 9,422 9,422 9,422 9,422 9,422
Add back: Amortization
Add back: Amortization 30,474 1,524 3,047 3,047 3,047 3,047 3,047 3,047 3,047 3,047
Add back: Interest paid 118,248 6,322 12,328 11,875 11,380 10,840 10,251 9,607 8,903 8,135
Changes in Working Capital (0) (2,312) (40) 16 16 17 18 19 20 21
Cash Flow from Operating Activities 467,746 11,405 27,429 27,480 27,206 26,914 26,602 26,267 25,910 25,526
Equity Issued 41,042 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Dividend Payments to Shareholders (209,316) (1,579) (10,180) (10,231) (9,958) (9,666) (9,353) (9,019) (8,661) (8,278)
Ch
Changes in Debt Outstanding
i D bt O t t di ‐ 28,522
28 522 (4,921)
(4 921) (5,374)
(5 374) (5,868)
(5 868) (6,408)
(6 408) (6,998)
(6 998) (7,642)
(7 642) (8,345)
(8 345) (9,113)
(9 113)
Interest Paid (118,248) (6,322) (12,328) (11,875) (11,380) (10,840) (10,251) (9,607) (8,903) (8,135)
Cash Flow From Financing Activities (286,523) 20,622 (27,429) (27,480) (27,206) (26,914) (26,602) (26,267) (25,910) (25,526)
Capital Expenditure (150,750) (20,965) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Other Upfront Costs (30,474) (9,561) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Cash Flow from Investing Activities
g (181,224) (30,526) ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

Financial Forecast – Balance Sheet
Balance Sheet 12/31/2015 12/31/2016 12/31/2017 12/31/2018 12/31/2019 12/31/2020 12/31/2021 12/31/2022 12/31/2023
FIXED ASSETS
Plant, Property and Equipment 150,750 150,750 150,750 150,750 150,750 150,750 150,750 150,750 150,750
Cumulative Depreciation (deducted) (4,711) (14,133) (23,555) (32,977) (42,398) (51,820) (61,242) (70,664) (80,086)
Intangible fixed assets 30,474 30,474 30,474 30,474 30,474 30,474 30,474 30,474 30,474
Cumulative Amortization (deducted) (1,524) (4,571) (7,618) (10,666) (13,713) (16,761) (19,808) (22,855) (25,903)
Net Fixed Assets 174,989 162,520 150,051 137,581 125,112 112,643 100,174 87,704 75,235
CURRENT ASSETS
Debtors 2,610
2 610 2,665
2 665 2,665
2 665 2,665
2 665 2,665
2 665 2,665
2 665 2,665
2 665 2,665
2 665 2,665
2 665
Cash 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
Total Current Assets 4,110 4,165 4,165 4,165 4,165 4,165 4,165 4,165 4,165
TOTAL ASSETS 179,099 166,685 154,216 141,747 129,277 116,808 104,339 91,870 79,400
CURRENT LIABILITIES
Creditors 298 313 329 345 363 381 400 420 441
Total Current Liabilities 298 313 329 345 363 381 400 420 441
LONG‐TERM LIABILITIES
Senior Loan 138,177 133,256 127,883 122,014 115,606 108,608 100,966 92,621 83,508
Total Current Liabilities 138,177 133,256 127,883 122,014 115,606 108,608 100,966 92,621 83,508
SHAREHOLDERS FUNDS
Equity 41,042 41,042 41,042 41,042 41,042 41,042 41,042 41,042 41,042
Retained Earnings (418) (7,927) (15,038) (21,655) (27,733) (33,223) (38,069) (42,213) (45,590)
Total Shareholders Funds 40,624 33,116 26,004 19,387 13,309 7,819 2,973 (1,171) (4,548)
TOTAL LIABILITIES AND SHAREHOLDER FUNDS 179,099 166,685 154,216 141,747 129,277 116,808 104,339 91,870 79,400

Financial Forecast ‐ Project Operational Cash Flows
Note: Depicted cash flows are semi-annual

Financial Forecast – Operational Profits
NUMBERS NOT CHECKED YET, TO

BE REVIEWED AND DISCUSSED
BEFORE SENDING

6 p
Investment Proposal

Investment Considerations
● With 3 years of bankable wind measurement data indicating a sufficiently high
capacity factor, Indo Wind Power has the exclusive rights to a wind asset which
is unique to Indonesia.
● The project partners including Asia Green Capital, Mr. Henry Maknawi, GE
Energy and Wind Prospect form a team brought together to execute a fast
development process with a high quality result.
● The development started at the right time to benefit from the upcoming feed‐in
tariff for wind power in Indonesia.
● The investment opportunity offers a stable return based on a PPA with state‐
owned power company PLN with the possibility of a sell‐down profit either
stand‐alone or as part of a portfolio when the project has accumulated a
successful operational history.
● N dependency
No d d on a feedstock,
f d t k a PPA with ith a state‐owned
t t d enterprise,
t i hi h
high‐
quality turbines and an experienced EPC and O&M contractor reduce project
risks to a minimum.
● Being still in the early stages of development, Indo Wind Power envisages the
equity raising to take place after the land has been secured, key permits have
been issued and the PPA has been signed so the incoming investor has a secure
path to Financial Close.
● The rights to the wind data and wind measurement mast on the second site in
the regency can be considered as part of an agreement.

Summary of the principal terms of the equity raising of PT. Energi Angin Indonesia through its major shareholder
Indo Wind Power (Singapore) Holdings Ltd:
OFFERING TERMS
OFFERING TERMS
Vendor: Indo Wind Power Holdings Pte Ltd, the existing majority shareholder of PT. Energi Angin
Indonesia.
Target: PT. Energi
PT Energi Angin Indonesia, a company incorporated in Indonesia (
Indonesia a company incorporated in Indonesia (“Company”)
Company ), registered
registered
under number [ ] with its registered office at [ ]
Investor: [_______]
Purpose Fundraising: The total amount to be invested by the Investor in connection with the equity raising will
supply the Company with the financial means to bring the 62.5 MW wind project in
Sulawesi to Financial Close in accordance with the Investment Memorandum in exchange
for newlyy issued shares or transfer of existingg shares. As p
part of the transaction shares in
the Target may be transferred from other shareholders of the Target to the Vendor.
Aggregate Proceeds: USD [X.X] mln
Use of Proceeds: USD [X.X] mln – development funds to be paid to Target before [XX 2013]

Closing Date: [estimated 31 July 2013]
Conditions Precedent: The transaction shall take place subject to the completed due diligence by the Investor and
any approvals required to be obtained by the Vendor and Investor.
Investor
Documentation: Share Purchase and Shareholders Agreements and/or any other documentation necessary
to execute the transactions set out herein.
Applicable Law: Singapore law shall apply to this term sheet and the agreements resulting there from. Any
disputes shall be exclusively settled in the Competence Courts of Singapore.

Summary of the principal terms of the equity raising of PT. Energi Angin Indonesia through its major shareholder
Indo Wind Power Holdings Pte Ltd:
OFFERING TERMS
OFFERING TERMS
Vendor: Indo Wind Power Holdings Pte Ltd, the existing majority shareholder of PT Energi Angin
Indonesia.
Target: PT. Energi
PT Energi Angin Indonesia, a company incorporated in Indonesia (
Indonesia a company incorporated in Indonesia (“Company”)
Company ), registered
registered
under number [ ] with its registered office at [ ]
Investor: [_______]
Purpose Fundraising: The total amount to be invested by the Investor in connection with the equity raising will
supply the Company with the financial means to fund the equity portion of the required
capital expenditure for the 62.5 MW wind project in Sulawesi in accordance with the
Investment Memorandum in exchange g for newlyy issued shares or transfer of existingg
shares. As part of the transaction shares in the Target may be transferred from other
shareholders of the Target to the Vendor.
Aggregate Proceeds: USD [X.X] mln
Use of Proceeds: USD [X.X] mln – construction funds to be paid to Target at or before Financial Close

Closing Date: [estimated 31 December 2013]
Conditions Precedent: The transaction shall take place subject to the completed due diligence by the Investor and
any approvals required to be obtained by the Vendor and Investor.
Investor
Documentation: Share Purchase and Shareholders Agreements and/or any other documentation necessary
to execute the transactions set out herein.
Applicable Law: Singapore law shall apply to this term sheet and the agreements resulting there from. Any
disputes shall be exclusively settled in the Competence Courts of Singapore.

7 p
Next Steps

Envisioned Process & Timeline – Funding Round A
Phase 1 – Indications of interest are to be sent to Asia Green Capital as per the invitation letter that will be
sent out at the appropriate time
Indicative bids – Indo Wind Power will determine who will proceed to Phase 2 taking into account:
• the (i) amount and (ii) percentage of the share capital to be owned by the potential investor
post closing
• key terms and conditions suggested by the investor for the shareholders’ agreement
• estimated execution risk & speed of execution
• any potential value
any potential value‐added
added by the investor
by the investor
– This phase is expected to be completed by [XX 2013]
– During the due diligence phase the selection of potential investors will have full access to the
Phase 2 development consortium, a Q&A session with the development consortium, access to a data
room and receive a draft Share Purchase (SPA) and Shareholders’ (SHA) Agreement
Due diligence
– Potential investors are requested to submit final and binding offers within a relatively short
period of time (estimated 4 weeks after commencement of Phase 2)
– Upon receiving the final offers, Indo Wind Power, at its own discretion, will determine its
Phase 3 preferred investors and will endeavour to negotiate and to sign the final documentation shortly
thereafter
Exclusive
Negotiations

Envisioned Process & Timeline – Funding Round B
Phase 1 – Indications of interest are to be sent to Asia Green Capital as per the invitation letter that will be
sent out at the appropriate time
Indicative bids – Indo Wind Power will determine who will proceed to Phase 2 taking into account:
• the (i) amount and (ii) percentage of the share capital to be owned by the potential investor
post closing
• key terms and conditions suggested by the investor for the shareholders’ agreement
• estimated execution risk & speed of execution
• any potential value
any potential value‐added
added by the investor
by the investor
– During the due diligence phase the selection of potential investors will have full access to the
Phase 2 development consortium, a Q&A session with the development consortium, access to a data
room and receive a draft Share Purchase (SPA) and Shareholders’ (SHA) Agreement
Due diligence
– Potential investors are requested to submit final and binding offers within a relatively short
period of time (estimated 4 weeks after commencement of Phase 2)
– Upon receiving the final offers, Indo Wind Power, at its own discretion, will determine its
Phase 3 preferred investors and will endeavour to negotiate and to sign the final documentation shortly
thereafter
Exclusive
Negotiations

Appendix A – Wind Power
Industry

Wind Power Industry
● The modern wind industry started in the late 70’s when a number of Danish
companies started serial production of wind turbines.
● In the late 70’s and 80’s most wind turbines were installed in Denmark and
California, USA.
● In the 90’s, the wind industry diversified geographically and started growing
exponentially until 2008. At the end of 2011 total wind power capacity was
nearly 240 GW worldwide.
● Since 2008, the industry is more stable but new non‐OECD markets still see
strong growth. India and China had a market share of over 50% in 2011.

Wind Power Industry
● Wind power is now seen as a fully proven technology and the conditions for
bankable projects have become clear‐cut.
● While in most developed countries the best sites have already been developed, a
huge potential remains in the rest of the world.
● Therefore the total installed capacity has a strong growth prospect for the
coming 5 years.
Source: GWEC

Appendix B – Indonesian
Energy Market

Indonesia Energy Market Overview
● Indonesia’s rapid economic growth has been accompanied by a dramatic increase in energy consumption. Total
energy demand has been growing by 7% per year due to the growth in transportation and industrial sectors as
well as increasingly affluence among its population.
● The country has huge proven reserves of fossil fuels such as coal, natural gas and oil. In 2011, power plants for
fossil fuels provided 90% of the economy’s total energy capacity at 33 Gigawatt (GW). Despite being one of the
largest fossil fuel producers in Asia, Indonesia is struggling to keep up with its domestic energy demand.
● Since 2004, the country has become a net exporter of coal. Indonesia’s coal production reached 353 million
tons in 2011 and producers are mandated to contribute 30% of their production for the domestic market to
comply with the domestic market obligations (“DMO”) imposed by the government.
● Expensive transportation and logistic problems for fuel supplies have resulted in high cost for energy
generation in these regions.
● State subsidies have kept the price of fuel low. Any cutback in subsidies will directly increase the price of
transportation fuel and kerosene, affecting the economic progress of the country. This has created a strain on
the budget deficit of the country. The cost of fuel and electricity subsidies are predicted to be more than USD
18.5 billion in 2012 or 17% of government expenditure.

Indonesia’s Electricity Power Demand Growth
Source: PLN

Indonesia Electricity Market Overview
● The country’s power sector demand is expected to grow by 9.5% per year until 2029, in line with the country’s
GDP and population growth.
● PLN has installed slightly more than half of the country capacity at 24.7 GW. The other half represents off‐grid
industrial capacity, consisting of diesel and biomass generation facilities.
● PLN has installed more than 30,000 small diesel generator sets ranging from 1 KW to 50 MW, and also various
micro and mini‐hydro
mini hydro and off‐grid
off grid solar power plants.
plants
● One of the government ambitious policies aims to achieve 95% rural electrification ratio by 2025.
● Currently, tariff rates provided to IPPs are structured as below:

– 80% of PLN’S production costs if the electricity purchased is connected to medium voltage network;
– 60% of PLN’s production cost if connected to low voltage network.
– This is expected to change with feed‐in tariffs for a range of renewable energy technologies, including
wind, solar and micro‐hydro. Prices for geothermal energy have already been increased significantly in
July 2012.

Sumatera 2010 Kalimantan 2010
Sales (TWh) 16.3 Sales (TWh) 4.5
No.of Customers (million) 7.1 No.of Customers (million) 2
Capacity (GW) 6.0 Capacity (GW) 1.3
Electrification Ratio (%) 61 9
61.9 Electrification Ratio (%) 52 9
52.9
Sulawesi 2010
Sales (TWh) 4.4
No.of Customers (million) 2.6
Capacity (GW) 1.3
Electrification Ratio (%) 53.8
Indonesia 2010 Other Regions 2010

Sales (TWh) 159 Sales (TWh) 5.3
No.of Customers (million) 44 No.of Customers (million) 2.1
Capacity (GW) 37.9 Capacity (GW) 1.1
Electrification Ratio (%) 67 0
67.0 El t ifi ti Ratio
Electrification R ti (%) 37 9
37.9
Source: PT. PLN

● An overview of Indonesia’s regions expected growth in power demand between 2011 and 2020:
Source: PLN

Indonesian Energy Trends
Source: International Energy Agency (IEA) Energy Statistics

Indonesian Electricity Market Recent Regulations
Regulations
The Electricity PLN was granted the exclusive right and monopoly to supply electricity for public use in
Law 1985 Indonesia.
Ministerial Decree The Ministry of Energy and Mineral Resources has introduced the ‘Small scale distribution
No. 1122 power generation using renewable energy’ decree which requires PLN to purchase
electricity up to 1 MW capacity from small power producers using renewable resources.
Introduction of The government aims an increase of 56% in overall energy investments by 2014.
the ‘Crash In 2004, it aims to produce 20,000 megawatts (MW) to meet the country’s growing power
Program’ by the demand:
government • Phase I of this crash program aims to add 10,000 MW
• Phase II includes a preference for renewable energy production & Power Purchase
Phase II includes a preference for renewable energy production & Power Purchase
Agreements (PPAs) guarantees from PLN
The Electricity The government has enacted this law to restructure PLN’s role, this law allows regional
Law 2009 and central governments to grant power permits to other entities in the electricity sector.
The Presidential This regulation mandated PLN to expedite the construction of power projects using
Regulation No. 4 renewable energy, coal and gas. The construction of the power projects can be conducted
with the cooperation of private investors under the ‘Electricity Generation Program II’.
The Presidential The Ministryy of Energy

gy and Mineral Resources has issued a list of p
power p
projects
j to be
Regulation No. 2 constructed using renewable energy, coals and gas.

Indonesia’s Renewable Energy Potential
Installed Resource
Undeveloped
Energy Source
Energy Source Capacity
Capacity Potential
Potential (%)
(MW) (MW)
Hydropower 4,264.0 75,670 94
Micro & Mini 86.1 500 83
Hydropower
Solar Power 30.0 … …
Wind Power 1.1 9,910 99
Ocean 0.0 35 100
Geothermal 1,052.0 27,510 96
Biomass 445.0 49,810 99

PLN’s Role in Renewable Energy Development
● PLN is a state‐owned entity (“SOE”) and is the largest electricity supplier in Indonesia. PLN handles the
country’s electricity generation, transmission, distribution and supply activities.
● PLN s total generating capacity includes electricity bought from Independent Power Producers (IPPs) and other
PLN’s
private power producers. This comprises of 30,000 diesel gensets (ranging from 1 KW to 50 MW and totalling at
500 MW) which provide power to remote regions that are not connected to the PLN’s main grids.
● PLN s off
PLN’s off‐grid
grid installations are located mainly in Sumatra (4,907 MW) and Kalimantan (1,166 MW). PLN has
recently started to install off‐grid solar PV and hybrid solar PV‐diesel systems in East Indonesia.
● PLN electricity supply networks are divided into 22 regional systems that are either interconnected (Java‐
Madura‐Bali & Sumatra regions) through high voltage networks (i.e. the Sumatra region is interconnected
through a 150 kV high voltage line since 2007) or isolated electricity systems.
● PLN’s regional units conduct independent capacity and supply planning which are incorporated into the
Rencana Umum Ketenagalistrikan Nasional (RUKN) (national electricity development plan). The regional units
have the authority to plan or approve electricity capacities less than 50 MW and connect them at medium
voltage level (6‐ 20 KV); larger capacities are to be approved at PT. PLN’s headquarters.
● Between the period 2009‐14, PLN will add a total capacity of 9,709 MW; of which 30% will be in Sumatra (2,344
MW) and
d Kalimantan
K li t (740 MW).
MW)

PLN’s Role in Renewable Energy Development
● The RUKN programme supports the development of hydro and geothermal renewable technologies. PLN plans
to install 3,500 MW of private geothermal capacity by 2015.
● The ‘Ministerial
Ministerial Regulation No.
No 5 5’ enforced in March 2009 requires PLN to purchase renewable energy from
projects with installed capacities below 10 MW, and for PLN to bear the costs of interconnection when it is less
than 5 km from the grid which otherwise will be borne by the developer.
● The Ministry of Energy and Mineral Resources is working on a new law with higher feed
feed‐in
in tariffs for renewable
energy. The implementation of this law will be in the hands of PLN based on private sector development.

Indonesia’s Renewable Energy Trends
● To meet its rapidly increasing domestic demand for energy, it is expected that much of this additional supply
will need to come from Indonesia’s abundant renewable energy sources.
● To accomplish this, the government has set a specific target being 17% of the energy will need to come from
renewable energy sources by 2025.
● According to estimates, Indonesia’s potential of wind energy is estimated at 9.9 GW, which would translate
into more than 26,000 GWh per year.
● Rural electrification is a significant priority for the government, which is set to increase its electrification target
from 65% to 90% by 2020. This requires an average of 1.3 million new electricity connections annually.
● The 2005‐2025 National Energy Policy Blueprint states that renewable energy technologies should be used to
achieve the country’s rural electrification goals.

Indonesia’s Renewable Energy Regulation & Programs
Regulations
Ministerial Decree The ‘Small Distributed Power Generation Using Renewable Energy’ policy obliges PT.PLN
2002 No. 1122
No 1122 to purchase electricity from renewable energy capacities up to 1 MW at regulated price
limits according to voltage levels.
Ministerial Decree The ‘Green Energy Policy’ prescribes maximum utilisation of renewable energy.
2004 No. 0002
Presidential The ’National Energy Policy’ sets energy diversification targets, including the share of
2006 Regulation No. 5 renewable energy sources.
Ministerial The ‘Medium Scale Power Generation using Renewable Energy’ policy obliges PT. PLN to
2006 Regulation No. 002 purchase electricity from renewable energy capacities between 1 MW – 10 MW at
regulated price limits according to voltage levels.
Energy Law No. 30 The Energy Law prescribes an optimum share of renewable energy in the primary energy
2007 mix.
Ministerial Guidance on electricity pricing purchased obliges PT. PLN to purchase electricity from
2009 Regulation No. 5 renewable energy technologies with capacity up to 10 MW under a business‐to‐business
/ negotiated contracts.

Barriers to Renewable Energy Developments
● Several barriers exist in the Indonesia’s renewable energy market that would need to be overcome to achieve
future developments:
‐ The country’s lack of financial incentives and heavy subsidies for non‐renewable energy consumption//
fossil fuels has slowed the development of the renewable energy sector as foreign firms are more willing
to invest in markets with favorable regulatory environments.
‐ The new ‘Negative Investment List’ has liberalized foreign investment in small scale power plants ranging
from 1 ‐ 10 MW; however the foreign company need to establish a business partnership with local small
and medium enterprises (SME).
‐ There is a lack of available funding mechanisms as a limited number of well‐capitalized private sector
banks are willing to fund new or emerging technologies.
‐ s g transmission
Existing a s ss o infrastructure
as uc u e iss o
often
e uunavailable
a a ab e which
c makes
a es ggrid‐connected
d co ec ed renewable
e e ab e eenergy
e gy
projects difficult to implement.
‐ The government struggles to implement policy initiatives, often lacking in transparency which result in
bottle‐necks for innovative technologies in the renewable energy sector.
‐ Indonesia suffers from chronic unavailability of reliable quality data and standardized documents in the
renewable energy sector i.e. a standard power purchase agreement (PPA).

Appendix C – Indonesia
Country Overview

Indonesia Economy and Society
● Indonesia, with a population of over 248 million in 2012 (the 4th largest in the world), represents one of the
biggest markets in Southeast Asia. In recent years, the country has experienced a high rate of growth, fuelled
by increasing amounts of Foreign Direct Investment (FDI) into the country.
● The median age is 28.5
28 5 years and the population grows at a rate of 1.04%
1 04% per year (2012).
(2012)
● Indonesia’s main industries are oil, gas, mining (coal, minerals, metals), forestry, fishery, palm oil, rubber,
agriculture (especially cocoa, coffee and rice).
● Indonesia’s GDP (purchasing power parity for 2011) was USD 1,139 bln, ranking 16th in the world.
Economic Indicator 2011
GDP (billion USD) 1,139
Per Capita GDP (USD) 4,700
GDP G
GDP Growth (% change per year)
h (% h ) 65
6.5
CPI (% change per year) 5.4
Budget Deficit (% of GDP) 1.2
Export (billion USD) 201.5
Import (billion USD) 166.1
Current Account Balance (billion USD) 2.069
External Debt (billion USD) 186.9
p y ( )
Unemployment Rate (%) 6.6
Source: www.cia.gov

Indonesia Economy and Society
● Indonesia’s 2011 GDP composition is dominated by the manufacturing sector at 47%. In second place is the
services sector at 38% followed by the agriculture sector at 15%.
● Total exports represented 17.7% of GDP in 2011.
● The government has promoted fiscally conservative policies, resulting in a debt‐to‐GDP ratio of less than 25%, a
small current account surplus, a fiscal deficit below 2%, and historically low rates of inflation.
● Fitch and Moody's upgraded Indonesia's credit rating to investment grade in December 2011.
Source: Central Intelligence Agency (CIA), Outlook on Indonesia

Appendix D – Overview
South Sulawesi Province

South Sulawesi Province
● South Sulawesi makes up the south eastern part of the Indonesian island of Sulawesi. Its total area covers
46,717 square kilometers.
● The capital of Sulawesi is Makassar with 1.3 million inhabitants. The whole province has 8 million inhabitants
(2010 census). The Regency of Jeneponto has 342,000 inhabitants (2010 census).
● In 2011, South Sulawesi province had a GDRP of around USD 14.2 billion per year
● Agriculture is South Sulawesi’s largest sector with around 4 million tonnes of rice and 700,000 tonnes of corn
produced per year. Other important sectors are
– forestry (over 3 million hectares)
– industry
– mining (limestone, clay, nickle, sand and marble)
– marine fisheries and aquaculture
Electricity in South Sulawesi

● In October 2011, South Sulawesi had a power generating capacity of 617 MW with a peak load of 601 MW
● Electricity sales for 2013 is expected to be 4,400

4 400 GWh with nearly 1.5
1 5 million connected customers

y
Glossary

Glossary
Abbreviation Meaning Abbreviation Meaning
BoP Balance of Plant GWh Gigawatt hour

CDM Clean Development Mechanism GDP Gross Domestic Product
CERs Certified Emission Reductions GDRP Gross Domestic Regional Product
CPI Consumer Price Index IDR Indonesia Rupiah
DMO Domestic Market Obligations IEA International Energy Agency
DSCR Debt Service Coverage Ratio IIGF Indonesia Infrastructure Guarantee
Fund
EIA Environmental Impact Assessment
IRR Internal Rate of Return
EIC International Electrotechnical
Commission IPP Independent Power Producer
p
EPC Engineering, Procurement and kV Kilovolts
Construction kWH Killowatt hour
ESDM Ministry of Energy and Mining MW Megawatt
R
Resources
OECD Organization for Economic
FDI Foreign Direct Investment Cooperation and Development
Hz Hertz O&M Operations and Maintenance
GW Gigawatt P50 Average expected electricity
Average expected electricity
GWEC Global Wind Energy Council production

Glossary
Abbreviation Meaning
PLN Perusahaan Listrik Negara
PPA Power Purchase Agreement
PPU Private Power Utility
PT PMA Perusahaan Terbatas Penanaman
Modal Asing (Foreign Capital Limited
Company)
p y)
RUKN Rencana Umum Ketenagalistrikan
Nasional
RUPTL Rencana Usaha Penyediaan Tenaga
Listrik
SHA Shareholder’s Agreement
SME Small Medium Enterprises
SPA Share Purchase Agreement
SRTM Shuttle Radar Topography Mission
USD United States Dollar
VERs Voluntary Emission Reductions
WTG Wind Turbine Generator

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PT.

Strictly Private & Confidential 2 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 3 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 4 Copy No XX – [INVESTOR NAME]

Asia Green Capital (Singapore) Pte Ltd:

Strictly Private & Confidential 5 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 6 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 7 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 8 Copy No XX – [INVESTOR NAME]

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Strictly Private & Confidential 11 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 12 Copy No XX – [INVESTOR NAME]

Financing Asia Green Maknawi Family PPA / PLN

WTG Supplier WinRock

PT Energi Angin Indonesia Wind Prospect

Strictly Private & Confidential 13 Copy No XX – [INVESTOR NAME]

Jeneponto, South Sulawesi

Strictly Private & Confidential 14 Copy No XX – [INVESTOR NAME]

 Completed Identification and selection of project partners

 Completed Establishment of project company

WIP Expected May 2014 Land acquisition

 Completed Funding Round A

WIP Jun 2014 Securing approvals, permits and licenses

Expected H2 - 2014 Financial Close

Strictly Private & Confidential 15 Copy No XX – [INVESTOR NAME]

Relevant Regulations for Renewable Energy Projects

Strictly Private & Confidential 16 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 17 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 18 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 19 Copy No XX – [INVESTOR NAME]

Edgare Kerkwijk Henry Maknawi

Karel Sampe Pajung Thijs Sablerolle

Strictly Private & Confidential 20 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 21 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 22 Copy No XX – [INVESTOR NAME]

Wind Resource Map.

Strictly Private & Confidential 23 Copy No XX – [INVESTOR NAME]

Location of Site 52.

Strictly Private & Confidential 24 Copy No XX – [INVESTOR NAME]

Small road between

Positioning of the 25 turbines

Strictly Private & Confidential 25 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 26 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 27 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 28 Copy No XX – [INVESTOR NAME]

Strictly Private & Confidential 29 Copy No XX – [INVESTOR NAME]

Source: GE Energy Product Brochure

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Strictly Private & Confidential 32 Copy No XX – [INVESTOR NAME]

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Strictly Private & Confidential 34 Copy No XX – [INVESTOR NAME]

Key terms and conditions:

Strictly Private & Confidential 35 Copy No XX – [INVESTOR NAME]

● Wind Prospect is one of the most successful independent renewable energy

● Wind Prospect has consented 1 GW of wind projects and has 5GW in

Strictly Private & Confidential 36 Copy No XX – [INVESTOR NAME]

Document Indonesian Name Issuing Office Processing Time

In principle license Ijin Prinsip Bupati’s office Obtained January 8, 2013

Strictly Private & Confidential 37 Copy No XX – [INVESTOR NAME]

Document Indonesian Name Issuing Office Application Time

Direct Appointment Approval Persetujuan penunjukan Director General of Electricity TBD