Funding Strategy and SWF Role in Jasa Marga’s Financing

LPPI #50th Virtual Seminar “Sovereign Wealth Fund Utility: Allocation and Absorption”
10 June 2021

PRIVATE AND CONFIDENTIAL 1

 Doubling the Business to Support Connectivity

100% Cashless Double up

Established as a toll Pure as an Transaction, the business
road regulator and investor and Operates Massive Operates Operates
operator operator IPO 593 km Development 1.162 km 1.191 km

1978 2004 2007 2016 2017 2019 2020

Build average 16 km per year Double up the Business

Build average 190 km per year

Leading toll road operator in Indonesia with
43 years of experience
34 toll road concessions with total length of
1,603 km (13 mature and 21 new toll road)
Largest toll road operator in Indonesia with 66%
market share in term of operated commercial toll
roads lengths (±1,191 km).
70% shares owned by the Government of Indonesia
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 Jasa Marga’s Toll Road Business

Jasa Marga has 13 mature toll road concessions which have steady cash flow to support 21 new toll road concessions under subsidiaries by issuing
several alternative financing products.

21 New Toll Roads

Subsidiaries Level
13 Mature Toll Roads 1. Nusa Dua-Ngurah Rai-Benoa
On Jasa Marga’s balance sheet 2. JORR W2 North (part of JORR)
1. Cawang-Tomang-Pluit 3. Surabaya-Mojokerto (part of Trans Java)
(Jakarta Inner Ring Road) 4. Solo-Ngawi (part of Trans Java)
2. Prof. Dr. Ir. Sedyatmo (Airport) 5. Semarang-Solo (part of Trans Java)
3. Padalarang 6. Gempol-Pasuruan (part of Trans Java)
4. Cileunyi 7. Batang-Semarang (part of Trans Java)
5. Jakarta-Cikampek 8. Medan-Kualanamu-Tebing Tinggi
6. Palikanci 9. Gempol-Pandaan
7. Jagorawi 10. Bogor Ring Road
8. Surabaya-Gempol 11. Ngawi-Kertosono-Kediri (part of Trans Java)
12. Pandaan-Malang
9. Semarang
13. JORR2 (Cengkareng-Kunciran)
10. Jakarta Outer Ring Road
11. Ulujami-Pondok Aren Major Concerns 14.
15.
JORR2 (Kunciran-Serpong)
JORR2 (Serpong-Cinere)
12. Jakarta-Tangerang
13. Belmera 1. Financing Availability and Capacity 16. Balikpapan-Samarinda
17. Manado-Bitung
2. The Structure of Financing which 18. Jakarta-Cikampek II Elevated
Total Length fit with the Future Cash Flow of 19. Jakarta-Cikampek II South
20. Probolinggo-Banyuwangi
512 km Each Project 21. Yogyakarta-Bawen

Total Length of Concession

Total Length of Operated Toll Road
1,091 km
1,191 km
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 Financing of Toll Road Development at Each Stage

Toll roads business characteristics typically take 3-5 years to generate positive cash flow to cover interest payment. During each stages of toll road
project’s life cycle, the project has the funding scheme based on the project cash flow.
Rp

Targeted Performance EBITDA

Land Construction
Acquisition Period Negative
Interest and Principal
Cash Flow
Payment

Years
Land Construction Early Operation Mature Period
Acquisition Period Period
▪ Equity Participation through ▪ Future Revenue Backed Securities
Land Bridging ▪ Contractors Pre-
Mutual Fund ▪ Structured Bond with multiple tranches based on
Loan Financing (CPF) /
▪ Invite Strategic Partners through project cash flow/Project Bond
Turnkey
Divestment Scheme ▪ Global IDR Bond (Komodo Bond)
▪ Viability Gap
▪ Loan Reprofiling ▪ Placement/IPO*
Funding (VGF)
▪ Bank Financing ▪ Step Up/Zero Coupon Bond*
▪ Zero Coupon ▪ Step Up Interest Payment*
Bond/Loan* ▪ Long-term Loan/Bond up to 20
*Potential next issuance ▪ Equity Participation years*
through Mutual
Asset Recycling and Debt Recycling 4
Fund*
Funding Scheme

Capex Fund Raising at Parent Level

Debt Equity
30% Bank Financing Rebalancing asset & free up capital:
Equity Injection 1. Invite temporary equity partner
from Shareholders (financial institution) to invest at
Conventional Bond / Sukuk
project level through RDPT or
DINFRA scheme.
Commercial Paper (SBK) 2. Divest equity to hold minimum
51% to maintain as majority
Global IDR Bond (Komodo Bond) shareholders or to hold minimum
40% through RDPT or DINFRA
70% Future Revenue Securitization on
scheme.

Financing in Mature Section Direct Investment

Subsidiary

Fund Raising at Project Level

1 Bank Loan 2 Capital Market

(Credit Investment)

Debt recycling by refinancing bank loan with funds from capital market
with fixed rate coupon and the principal payment based on the project
cash flow. Replaced bank loan will be allocated to fund new projects.
PRIVATE & CONFIDENTIAL 5
 Capital Structure Composition at Subsidiary Level

Debt Equity

Based on Source of Funding Based on Tenor

Capital < 2 years, In Land
Market, 14% Acquisition,
5% 4%
2-5 years,
16%

> 5 years, Fully and

Bank, 70% Partially
95% Operated,
96%

• Jasa Marga’s total debt at subsidiary level is > Rp80 trillion
• 95% of total debt are from bank loan and 70% are due in > 5 years.
• Jasa Marga’s equity at subsidiary level is Rp15.5 trillion.
• 96% of total equity are already in operation, and the rest are in land
acquisition.
• Most of Jasa Marga’s new toll road (subsidiary level) started operation
in 2018.

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 SWF Role in Financing Infrastructure

SWF Role in Jasa Marga’s Financing Potential Structure

Jasa Marga has several toll road investment opportunities at Debt
subsidiary level which already operated and Jasa Marga will maintain
as majority shareholder.
Debt recycling from bank loan to
Potential investment at debt side so Jasa Marga’s subsidiaries could capital market to make the project
do the debt recycling and reduce the bank loan (legal lending limit) financially sustained.
and bank could finance the development of new toll roads.
Bond Bullet payment
New potential long-term investors interested in toll road industry
through SWF (INA), which create potential divestment at good price Zero coupon For Unsustained
and the proceed could balancing Jasa Marga’s capital structure, so Bond Portion
the debt level (DER) could be reduced and the ICR could be improved.
Step up Based on Project
coupon Bond Cash Flow
Equity
Direct Investment at Subsidiary Level
Jasa Marga divest some portion at
subsidiary level to SWF.
Through Sub Holding Company
Jasa Marga set up a sub holding
company (ex: Trans Java) and SWF
will join as a partner at minority
portion.

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 Thank You
PT JASA MARGA (PERSERO) Tbk
Plaza Tol Taman Mini Indonesia Indah
Jakarta 13550 Indonesia
Tel.: (62-21) 841 3526, 841 3630
Fax.: (62-21) 841 3540
E-mail: investor.relations@jasamarga.co.id
Website: www.jasamarga.com

PRIVATE AND CONFIDENTIAL 9