PT.

SIANTAR TARA SEJATI

PT. Siantar Tara Sejati founded since 1997 is an Authorized Distributor Generator Pramac made in Italy
in Indonesia and have very good relationships with manufacturers such as Generator with MWM and
Cummins.

In addition to the generator unit engaged in trading, STS also serves the needs of customers to:
1. Power to Private Hire and PLN.
2. Hire units Generator.
3. Development / manufacture of Power Plants Diesel, Gas and MFO.
4. Preparation of containerized generators and Silent Bone.

Power Purchase Agreement (PPA) HIGHLIGHTS

PT. Siantar Tara Sejati (STS) has signed Power Purchase Agreement (PPA) with PLN in three power plants
are as follows :

Tanjung Jabung PLTMG

PPA has been signed between STS Consortium with PLN in 2014 for 7 years and 3 months period (can be
extended), the important items are as follows :
 Power Rental System with capacity 8 MW
 Gas supply guaranteed by PLN
 Price rate is fix at Rp 324,50 / Kwh
 Monthly revenue is about Rp 1.866.240.000,00
 OM ( Operation management ) is STS Consortium responsible

Payo Selincah PLTMG

PPA has been signed between STS Consortium with PLN in 2013 for 7 years period (can be extended),
the important items are as follows :
 Power Rental System with capacity 30 MW
 Gas supply guaranteed by PLN
 Price rate is fix at Rp 277,00 / Kwh
 Monthly revenue is minimum at Rp 5.282.647.278,00
 OM is STS Consortium responsible

Sembakung PLTMG
PPA has been signed between STS Consortium with PLN in 2012 for 3 years period and has been
extended, the important items are as follows :
 Power Rental System with capacity 8 MW
 Gas supply guaranteed by PLN
 Price rate is fix at Rp 363,00 / Kwh
 Monthly revenue is about Rp 2.090.880.000,00
 OM is STS Consortium responsible
STS receives some additional power plant projects ordered by PLN at Lombok as reward of good
performance of the three operated power plant

Lombok PLTD (MFO) – Not yet commissioning but reach up to 80% installation
PPA has been signed between STS Consortium with PLN since 2012 for 4 years period, the important
items are as follows :
 Power Rental System with capacity 30 MW
 MFO supply guarantee by PLN
 Price rate is fix at Rp 321,20 / Kwh
 Monthly revenue is about Rp 5.627.424.000,00
 OM is STS Consortium responsible

Recap PPA

PPA
No. Description Capacity Installed
Type year Capacity Operate

1 Tanjung Jabung, Jambi PLTMG 2014 8 MW 9 MW

2 Payo Selincah, Jambi PLTMG 2013 30 MW 34 MW
3 Sembakung, North Kalimantan PLTMG 2012 8 MW 14 MW
46 MW 57 MW
4 Lombok, West Nusa Tenggara PLTD (MFO) 2012 30 MW 46 MW
76 MW 103 MW

Recap Revenue

No. Description Revenue

PPA Price rate PPA value/month STS Portion

1 Tanjung Jabung, Jambi 324.50 /Kwh 1,866,240,000 286.00 /Kwh 1,644,821,695 /month 19,737,860,339 /year
2 Payo Selincah, Jambi 277.00 /Kwh 5,282,647,278 252.07 /Kwh 4,807,209,023 /month 57,686,508,276 /year
3 Sembakung, North Kalimantan 363.00 /Kwh 2,090,880,000 260.00 /Kwh 1,497,600,000 /month 17,971,200,000 /year
9,239,767,278 7,949,630,718 /month 95,395,568,615 /year

4 Lombok, West Nusa Tenggara 321.20 /Kwh 5,627,424,000 270.00 /Kwh 4,730,400,000 /month 56,764,800,000 /year

14,867,191,278 12,680,030,718 /month 152,160,368,615 /year

Financial Problem

Current status PT Siantar Tara Sejati has a Loan to the Bank Mandiri (Persero) Tbk. and Bank Danamon
Tbk. with the following details:

(in million rupiah)

Status
No. Description Os as of Os as of Os as of
Pledge 31/12/14 31/12/15 30/11/16

1 Tanjung Jabung, Jambi Danamon 80,624 36,110 32,279

2 Payo Selincah, Jambi Mandiri
185,511 202,688 192,830
3 Sembakung, North Kalimantan Mandiri
266,135 238,798 225,109

STS is a company also engaged in the trading of generators, in early 2015 decline in sales of generators.
This effected us to continue the development and activation of the power plant. Means stop temporary
due to lack of working capital to completion. STS has received a warning letter from PLN for immediate
activating of power plant as soon as possible starting with the commissioning process by mid-January
2017. There are some requirements that must be solve to third parties for the construction and remain
payment to venture.

In addition other than fund for power plant Lombok, STS also requires more funds are as follows:
1. Funds for optimizing existing capacity from this 3 (PLTMG) power plant that has been running
previously in order to achieve the income of 90% or 9 MW of the installed capacity.
2. Fund for the company restructuring and consulting fee.

The overall funding required is:

(in million rupiah)

Existing Bank Loan 225,109
Optimalization Lombok 50,000
Payment to third parties/ Vendor ($ 5mio) 67,500 Need Bridging Loan
Payment to Local Contractor 32,500
Optimalization 3 PLTMG 98,000
Vat (10%) transfer assets to Subsidiary 77,256
Arranger fee 4% 23,200 Restructuring cost
Consultant fee 1% 5,800
579,365
Based on the above conditions, we intend to provide cooperation offers to you (XXX) with several
scenarios as follows:

A Scenario:

STS will borrow funds as Bridging Loan to you (XXX) of Rp.150,000,000,000 with interest of 12% P.A. for
5 years by pledge of 50% of the shares of Power Plant in Lombok, with schedule payment are as follow:

Credit Limit : 150,000,000,000 120,317,568,000 90,317,568,000 60,317,568,000 30,000,000,000

Interest 12.00% p.a
Term 5 years

Principal 30,000,000,000 30,000,000,000 30,000,000,000 30,000,000,000 30,317,568,000

Interest 18,000,000,000 14,438,108,160 10,838,108,160 7,238,108,160 3,600,000,000
Installment 48,000,000,000 44,438,108,160 40,838,108,160 37,238,108,160 33,917,568,000

Cost
COGS 12.5%
Selling & GA 2.5%
Other 1.0%

2017 2018 2019 2020 2021

Revenue 56,764,800,000 56,764,800,000 56,764,800,000 56,764,800,000 56,764,800,000

COGS 7,095,600,000 7,095,600,000 7,095,600,000 7,095,600,000 7,095,600,000
49,669,200,000 49,669,200,000 49,669,200,000 49,669,200,000 49,669,200,000

Selling & GA 1,419,120,000 1,419,120,000 1,419,120,000 1,419,120,000 1,419,120,000

Other 567,648,000 567,648,000 567,648,000 567,648,000 567,648,000
1,986,768,000 1,986,768,000 1,986,768,000 1,986,768,000 1,986,768,000

EBITDA 47,682,432,000 47,682,432,000 47,682,432,000 47,682,432,000 47,682,432,000

Payback loan 47,682,432,000 44,438,108,160 40,838,108,160 37,238,108,160 33,917,568,000

End Cashflow - 3,244,323,840 10,088,647,680 20,532,971,520 34,297,835,520

B Scenario:

STS will borrow funds as Company Loan to you (XXX) of Rp.580,000,000,000 with interest of 12% P.A. for
7 years by pledge of 50% of the shares of the overall power plant (4 Power Plant), with schedule
payment are as follow:

Credit Limit : 580,000,000,000 521,785,290,364 456,584,815,571 383,560,283,803 292,772,808,223 186,915,665,366 82,857,142,857

Interest 12.00% p.a
Term 7 years

Principal 82,857,142,857 82,857,142,857 82,857,142,857 82,857,142,857 91,857,142,857 105,857,142,857 104,058,522,509

Interest 69,600,000,000 62,614,234,844 54,790,177,869 46,027,234,056 35,132,736,987 22,429,879,844 9,942,857,143
Installment 152,457,142,857 145,471,377,701 137,647,320,726 128,884,376,914 126,989,879,844 128,287,022,701 114,001,379,652

Cost
COGS 12.5%
Selling & GA 2.5%
Other 1.0%

2017 2018 2019 2020 2021 2022 2023

Revenue 152,160,368,615 152,160,368,615 152,160,368,615 152,160,368,615 152,160,368,615 152,160,368,615 152,160,368,615

COGS 19,020,046,077 19,020,046,077 19,020,046,077 19,020,046,077 19,020,046,077 19,020,046,077 19,020,046,077
133,140,322,538 133,140,322,538 133,140,322,538 133,140,322,538 133,140,322,538 133,140,322,538 133,140,322,538

Selling & GA 3,804,009,215 3,804,009,215 3,804,009,215 3,804,009,215 3,804,009,215 3,804,009,215 3,804,009,215

Other 1,521,603,686 1,521,603,686 1,521,603,686 1,521,603,686 1,521,603,686 1,521,603,686 1,521,603,686
5,325,612,902 5,325,612,902 5,325,612,902 5,325,612,902 5,325,612,902 5,325,612,902 5,325,612,902

EBITDA 127,814,709,636 127,814,709,636 127,814,709,636 127,814,709,636 127,814,709,636 127,814,709,636 127,814,709,636

Payback loan 127,814,709,636 127,814,709,636 127,814,709,636 127,814,709,636 126,989,879,844 128,287,022,701 114,001,379,652

End Cashflow - - - - 824,829,792 352,516,728 14,165,846,712