The Role of “PINA Center for Private Investment”

for Renewable Energy Development in Indonesia

Presented to PPEBT ITB & HAKIT

Lukman Prananto
Senior Vice President – PINA Center for Private Investment

November 2018
Wide Opportunities for Private Participation in Infrastructure Financing

Infrastructure Financing Commitment in RPJMN 2015 - 2019

Government Budget
(USD 148.2 bn) Government Budget
41.3%

State Owned Private Participation

Enterprises
Non-Government
(USD 79.8 bn) (USD 131.1 bn)
22.2% 36.5% Budget

Non-Government Budget Participation= USD 210.9 bn

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PINA as The ENABLER in Renewables – Start Small, Replication

Equity Hybrid Debt

Project Owner/ Domestic and Foreign

Investee Investor

Investment Project Ecosystem

Facilitation Pipelining Building
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Renewable Energy takes Major Portion in “Indonesia Vision” 2050

• Priority in Base-Load Renewable

Energy

• 30% Renewable Shares in 2045

• 430 GW Total Capacity

• 100% Electrification Ratio in 2020

• 7000 kWh per Capita in 2020

• High Priorities in Bio-Energy, Hydro,

and Geothermal

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 PINA Facilitates Various Financing Scheme in Renewables

PINA Facilitation in PINA Facilitation in

Debt Instrument Equity Financing

Debt Equity

Finance Agreement

Supply Start Small, Replication

Feedstock/Fuel Agreement Special Purpose
Power Purchase
Company Agreement (PPA)
Supplier PLN

O&M Agreement
EPC Contract

Operator
EPC Contractor
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Sustainability Development for Off-grid Electricity Scheme

Start Small, Replication

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 Why PINA?

Investor Advantages
1. Valid Potential Investment Info
2. SOE/ National Strategic Project
3. Attractive return
4. Measurable risk
5. Facilitating if bottleneck
occurred
6. No fee commitment
7. Government Agency

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 2017 - 2018 Success Story
*

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Projects
>700 km Toll Roads

22 mio 225 MW *

Islamic Bonds Power Plants

First Issuance *
Perpetuity Notes

USD 2.3 billion

Total Financial Close
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*Signed at the 2018 Annual Meetings IMF – World Bank in Bali 8
 WASKITA TOLL ROAD (WTR)
1 Share Divestment (9 project/ 18 sect toll roads)
(Total: IDR 148 trillion, eqv. USD 10 billion)
PT CPI – Mentawai Off-Grid Biomass Power Plant
2 (Total: IDR 409 billion, eqv. USD 27.7 million
PT NWA – Bekasi Waste to Energy Power Plant
(Total: IDR 2.1 trillion, eqv. USD 145 million)
3 10 NEW BALI PROJECT
Integrated Tourism Area
(Total: IDR 296 trillion, eqv. USD 20 billion)
TOLL ROAD (CIKUNIR – ULUJAMI 36.5 KM)
4 Consortium of META, ADHI, ACST, TUS
(Total: IDR 25 trillion, eqv. USD 1.7 billion)
PT PERKEBUNAN NUSANTARA III (Holding)
5 Restructure & Development of Plantation
Downstream Sector
(Total: IDR 14 trillion, eqv. USD 946 million)
PT Regio Aviasi Industri (PT RAI)
6 R80 Aircraft Development
(Total IDR 23.7 trillion / USD 1.60 billion)
National Strategic Projects
Projects Pipeline (November 2018)
Total Investment Opportunity: IDR 576 Trillion, eqv. USD 38.9 Billion
PT PELINDO II
7 Canal and Ports Developmment
(Total: IDR 5.5 trillion, eqv. USD 376 million)
PT ANGKASA PURA II (Persero)
8 Development & Management of 4 Airports
(Total: IDR 1.38 trillion, eqv. USD 93.4 million)
BIJB Kertajati and Aerocity Development
(Total: IDR 31 trillion, eqv. USD 2.1 billion)
9 PT REKADAYA ELEKTRIKA
Construction of Transmission Tower
(Total: IDR 325 billion, eqv. USD 22 million)
PT DIRGANTARA INDONESIA
10 Manufacturing Expansion to Increase
Production Capacity of N219 Aircraft &
Development of the N245 Aircraft
(Total: IDR 5.9 trillion, eqv. USD 400 million)
TOLL ROAD (SOLO – YOGYA – NYIA 91.9 KM)
11 Consortium of DMT, GAMA, ADHI
(Total: IDR 22.5 trillion, eqv. USD 1.5 billion)
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Note: US $1 = IDR 14,800 9
 Facilitation Networking

Australia South Korea Japan China Singapore Oman Ukraine Ireland UK Canada UEA

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 THANK YOU
BAPPENAS – Ground Floor, SKM Wing Tel: +62-21-3903916
Jalan Taman Suropati 2, Menteng Email : lukman.prananto@pina.bappenas.go.id
Jakarta Pusat, Indonesia 10310 Website: pina.bappenas.go.id

Disclaimer:
Non-Government Budget Equity Financing or Pembiayaan Investasi Non Anggaran Pemerintah (PINA) does not guarantee the accuracy, completeness, timeliness or availability of the
contents in this presentation. PINA cannot be held liable for its use, its partial use, lack of use, in combination with other products or used solely, nor can it be held responsible for the result
from its use or lack of its use in any investment or other kinds of financial decision making on which this report or publication is based. In no event shall PINA be held liable for any direct,
indirect, incidental, exemplary, compensatory, punitive, special or consequential damages, costs, expenses, legal fees, or losses including but not limited to lost profits and opportunity costs in
connection with any use of the contents of this presentation.

Data and information in this presentation are gathered from sources it believe to be reliable. The contents cannot be a substitute for the skill, judgment and experience of its users,
itsinvestors in making investment or other business decisions. PINA does not act as fiduciary or an investment advisor. PINA does not perform an audit and does not undertake due diligence
or independent verification of any information used as the base of and presented in this presentation. 11
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 Conclusion

Government Linkage Infrastructure Project

Attractive Invesment Return

Low – Moderate Risk

Several Exit Strategy Options

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 PINA Facilitation Scheme
Letter of Interest (LOI) and 2nd Evaluation:
Project Profile Feasibility Study Evaluation (Regulatory Framework,
Submission to PINA Financial Analysis, Technology Considerations, Risk
National Strategic Mitigation) based on Project Readiness Criteria
Projects/Private
Projects
1st Evaluation:
Preliminary Project Profile,
and Project Company
(Sponsor) Evaluation

MoU Signing between

FINANCIAL CLOSE PINA and Investee/Project Owner
Project Construction
and Operation
Investor and Investee Matchmaking
(due diligence process)

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 PINA Standard for Project Readiness Criteria and Completeness

PROJECT READINESS CRITERIA ASPECT FOR PROJECT COMPLETENESS

Main Requirements:
Source of Project Financing Project Background
• National Strategic Project funded by
Non-Government Budget Project Financing
• Non-Government projects that are in line with the Strategic & Added Value Investee’s Status
government programs in the field of energy, regional
development and etc.
Readiness Requirements: Project Potential O&M Financial Parameter (IRR/NPV)

• Carry out concrete financial appraisal and feasibility

study Regulation Relating to Investor Risk Mitigation
• Provide attractive internal rate of return (IRR) for the
investor (IRR>13%)
• Project is supported by renown supporting Financing Scheme & Financial Instrument Legal
professions, especially the Financial Advisor
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