Equine Final 1.0

Feasibility Study of Jakarta
International Equestrian Park

Final Report
PT Pulo Mas Jaya
Infrastructure and Capital Projects
15 October 2016
Table of Content
Glossary
1. Introduction 6. Financial Assessment
2. Executive Summary 6.1 Revenue Composition
3. Location Analysis 6.2 Operating Cost Composition
3.1 Location Attributes 6.3 Capital Cost Composition
3.2 SWOT Location Analysis 6.4 Cash Flow Projections
3.3 Critical Success Factors 6.5 Summary of key findings
4. Review of the Development Plan 6.6 Sensitivity analysis
4.1 Traffic Management 7. Socio-Economic Analysis
4.2 Parking Management 7.1 Overview
4.3 Security and Access 7.2 Direct Benefits
4.4 Utilisation of Floor Space 7.3 Indirect Benefits
5. Business Study 8. Appendices
5.1 Industry and Market Analysis
5.2 Comparator Analysis
5.3 Proposed Development Concept
5.4 Risk Analysis
Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 2

Glossary
AEF Asian Equestrian Federation OIE Office International des Epizooties / World
APM Adria Pratama Mulya Organization of Animal Health
ASCC or Arthayasa Arthayasa Stables & Country Club Opex Operating Expenditure / Operating Cost
BEC Bali Equestrian Centre PEP Putrajaya Equestrian Park
BKEC or Bukit Kiara Bukit Kiara Equestrian & Country Resort PMJ Pulo Mas Jaya
BTSC Bukit Timah Saddle Club PORDASI Persatuan Olahraga Berkuda Seluruh Indonesia
EDFZ Equine Disease Free Zone PRTCEC Perak Turf Club Equestrian Club
Capex Capital Expenditure / Capital Cost SEA Games South East Asian Games
FEI Fédération Équestre Internationale / International SMAN Sekolah Menengah Atas Negeri
Federation for Equestrian Sports sqm Square Meter
Ha Hectare SPC Singapore Polo Club
ICE International Convention Exhibition STCESC Selangor Turf Club Equestrian and Sport Centre
INASGOC Indonesia Asian Games Committee STCRC Singapore Turf Club Riding Centre
IRR Internal Rate of Return SWOT Analysis Strength Weakness Opportunity Threat Analysis
JakPro PT Jakarta Propertindo TEC Trijaya Equestrian Centre
JIEP Jakarta International Equestrian Park The Games 2018 Asian Games
JI Expo Jakarta International Expo TPEC or Thai Polo Thai Polo & Equestrian Club
JPECS Jakarta Perkumpulan Equestrian Centre Sentul
kVa KiloVolt Ampere
kW Kilowatt
kWh Kilowatt Hour
LRT Light Rail Transit
m2 Square meter
n/a Data not applicable
nav. Data not available
NPV Net Present Value

Section 1:
Introduction

1. Introduction
The Project Deloitte’s Role in the Project

• PT Pulo Mas Jaya (“PMJ”) is a project development company engaged in the • In order to proceed with the funding request for the development of JIEP, a
activity of developing real estate or property. feasibility study has to be developed and submitted to PemProv.
• PT Jakarta Propertindo (“JakPro”) as the shareholder of PMJ, has appointed • As part of the feasibility study, PMJ has to demonstrate that (1) the project is
PMJ to develop the existing venue in Pulo Mas, located in Pulo Mas Jaya no. viable from financial standpoint, and (2) the project will have a positive socio-
1A, Kayu Putih district, Pulogadung sub-district, East Jakarta. The venue at economic impact.
Pulo Mas is approximately 32 ha. The existing venue is planned to be
• PT Deloitte Konsultan Indonesia (“Deloitte”) was engaged by PMJ to develop
developed as the Jakarta International Equestrian Park (the “Project” or
the feasibility study of the JIEP. A detailed scope of services was developed
“JIEP”), intended to be used as the host venue for equestrian sport during the
based on the Surat Perintah Kerja (“SPK”) from PMJ.
2018 Asian Games (“the Games”).
• The outline of the scope of services are as follows:
• The capital cost for the Project is estimated around IDR 345 bil., pending the
choice of a contractor and finalization of the detailed design for the venue. 1. Identification
a. Study Location
• We understand from the management of PMJ that the costs incurred in the
development and construction of the venue will be fully funded by Regional b. Data Collection and Consultation with Stakeholders
State Budget (“APBD”) of Provincial Government of DKI Jakarta (“PemProv”) c. Selection of Site Comparator
as the ultimate shareholder of JakPro. 2. Analysis
a. Location Analysis and SWOT
b. Industry and Market Study
c. Comparator Analysis
d. Regulation Analysis
e. Risk Study
f. Development Concept
3. Financial and Socio-Economy Studies
a. Development of Financial Model
b. Funding Gap Analysis and Scenario Analysis
c. Economic Impact Assessment
1. Introduction
Inputs Received from PMJ

• In order to fulfil the scope of services requested by PMJ, information relating to the development plan and financial aspect were requested. A detailed version of
the information request list sent to PMJ is provided in the Appendix B.
• In response to the information request, PMJ was able to provide the following information:
Timelines and Deliverables Format File Size Email Time Stamp Date Received
Historical Financial Aspect of PMJ

• Consolidated Financial Statements PT PMJ 31 Dec 2014 – 2013 Hardcopy - - 04 Apr 2016
• Monthly Report for Department Property Unit Pulomas 3 for February 2016 Hardcopy - - 04 Apr 2016
• Kandang & Lapangan.xlsx Softcopy via email 19 KB 08/04/2016 10:23 AM 08 Apr 2016
Project Related Information

• BLOCK PLAN EQUISTRIAN PILOMAS ok Rev. 2 - Rizal.xls Softcopy via email 62 KB 05/04/2016 05:12 PM 05 Apr 2016
• Master Schedule Equestrian AG 2018 Rev 10-02-2016.xlsx Softcopy via USB 88 KB - 08 Apr 2016
Master Plan for Equestrian Park

• 160316 - Schematic Equestrian.pdf Softcopy via USB 5,628 KB - 23 Mar 2016
• PENATAAN PARKIR KAWASAN EQUESTRIAN-Model.pdf Softcopy via USB 2,095 KB - 23 Mar 2016
• KOOR_GUB_160229_R01_BP.pptx Softcopy via USB 7,464 KB - 23 Mar 2016
• LAP-EQUESTRIAN 28022016.pptx Softcopy via USB 4,983 KB - 23 Mar 2016
• Recommended Configuration_PMJ Feb 2016.pdf (from Cushman & Wakefield) Softcopy via USB 189 KB - 23 Mar 2016
• Project Plan for “Pulomas Golf Residence” (from PT. Mega Sentral Mandiri) Hardcopy - - 04 Apr 2016
• Highest and Best Use Study of the Proposed Mixed Use Development at Pacuan Kuda Hardcopy - - 04 Apr 2016
– Pulomas (from Jones Lang LaSalle)
• KOOR_PUPR_160412_R02_BP.pdf Softcopy via email 9,703 KB 13/04/2016 02:07 PM 13 Apr 2016
• COORCOM_4_160511_R01_BP.pdf Softcopy via USB 15,033 KB - 10 May 2016
• AR-0201 1ST FLOOR (2).pdf Softcopy via USB 598 KB - 31 May 2016
• AR-1101 1ST FLOOR.pdf Softcopy via email 570 KB 02/06/2016 02:58 PM 02 Jun 2016
• AR-1102 2ND FLOOR.pdf Softcopy via email 417 KB 02/06/2016 02:58 PM 02 Jun 2016
• AR-1103 3RD FLOOR.pdf Softcopy via email 323 KB 02/06/2016 02:58 PM 02 Jun 2016
• AR-1104 4TH FLOOR.pdf Softcopy via email 284 KB 02/06/2016 02:58 PM 02 Jun 2016
Others
• STO BARU 2015 PIT.ppt Softcopy via USB 821 KB - 23 Mar 2016
• TABEL ESTIMASI BEBAN LISTRIK.pdf Softcopy via email 11 KB 14/04/2016 11:24 AM 14 Apr 2016

1. Introduction
Key Milestones
• The following table outlines the key interactions between PMJ and Deloitte • The deliverables prepared and provided to PMJ over the course of this
leading up to the delivery of this report: engagement are provided in Appendix C of this report.
Meeting Location Date

Structure of this Report
Kick-Off Meeting PMJ and Deloitte PMJ Office 23 Mar 2016
Attendees: PMJ, Deloitte Meeting Room • The remainder of this report is structured as below:
Site Visit to Pulomas Equestrian Venue Pulo Mas 29 Mar 2016  Section 2: Executive Summary provides key summary findings of the
Attendees: PMJ, Deloitte Equestrian Venue Project from technical to financial perspectives.
Regular Technical Meeting PMJ Office 29 Mar 2016  Section 3: Location Analysis provides the assessment of the location’s
Attendees: PMJ, Technical Consultants, Meeting Room 05 Apr 2016 attributes and a SWOT analysis of the location. The result of this analysis is
Deloitte 12 Apr 2016 summarized in the critical success factors in this section.
19 Apr 2016
26 Apr 2016  Section 4: Review of the Development Plan outlines the
10 May 2016 recommendations identified from the current condition and the development
17 May 2016 plan of JIEP as well as highlighting the limitations that may affect the
24 May 2016 development of JIEP.
Financial Discussion PMJ Office 30 Mar 2016  Section 5: Business Study presents industry and market studies on the
Attendees: PMJ, Deloitte Meeting Room 08 Apr 2016 equestrian sector, the key success factors of other equestrian venues and a
26 Apr 2016 risk analysis of the project. The identified potential development concepts for
17 May 2016 JIEP after the Games are also provided in this section.
24 May 2016
07 Jun 2016  Section 6: Financial Assessment provides the key assumptions made in
the calculation of the revenue composition, operating cost and capital cost.
Site Visit to Arthayasa Stables Arthayasa Stables 07 Apr 2016 The cash flow projection is also presented as resulting from the assumptions
Attendees: Mr. Rafiq, Deloitte Equestrian Venue
made.
Report Findings Discussion Jakpro Office 15 Aug 2016
 Section 7: Socio-Economic Analysis outlines the impact of the project to
Attendees: Jakpro, PMJ, Deloitte Meeting Room 30 Sep 2016
the local economy and identification of the equestrian industry in the tourism
and the standard of living for the citizens
Section 2:
Executive Summary

2. Executive Summary
Strategic location that can be improved with better traffic management
especially for events
Items Key Findings
Location Attributes: 2 3
1
• Strategic location; surrounded by a middle to high-end residential area and supporting amenities.
• 32 ha of land area of which 27 ha is green open space area, JIEP has a scenic view of open space and lakes.
• Pulo Mas is known as a racecourse area and hence has a strong affiliation with equestrian activities.
Accessibility:
• Unclear direction and minimum signage to the JIEP venue.
• Current venue relies on one main entrance for access. Additional access is needed to cope with traffic during events.
• Due to the current road system towards the main entrance, changes to the traffic flow are needed to manage the increased traffic
throughput during events.

Introducing additional entrances, changing traffic flow, additional parking bays,
enhanced security for horses and F&B facilities are improvements which are
needed to initial plans …
Items Key Findings
Review of
Development
Traffic Management: 2 3
Plans
1
• Based on the initial plan, potential traffic congestion along Jl Pulomas Jaya arising from a possible backlog of vehicles attempting to clear
the security checkpoints to enter the venue
• Improvement to the revised plans are as follows:
- An additional entrance with more security gates along Jl. Pulomas Jaya about 100m before the main entrance for non-VIP vehicles
together with buses. VIP vehicles to continue though the main entrance.
- To reduce traffic congestion further, an additional entrance for heavy vehicles and horse trailers will be introduced at the northern part
of the venue via Jl Pulo Nangka.
- Changing the 2-way system along Jl Pulomas Jaya to a one way system.
Parking Management:
• Initial plans underestimated the potential number of vehicles accessing the site during event days to accommodate the delegates /
spectators and day workers for the venue.
• Improvement to the revised plans are as follows:
- Additional parking bays for motorcycles and buses with identified overflow parking areas
- Relocation of the drop-off / pick-up points and taxi stand away from the main entrance towards the presently abandoned mall.
Security and Access:
• Security protocols and round the clock monitoring of the venue needs to be incorporated into design and plans to safeguard the delegates
/ spectators and horses.
Utilisation of floor space:
• There needs to be adequate F&B facilities and availability of a convenience store for visitors and spectators.

Securing EDFZ certification is critical, construction can be expedited if design
approval is granted before May 2016
Items Key Findings
Potential Prior to the Games: 2 3

1
Risks
• If JIEP is unable to obtain the Equine Disease Free Zone (“EDFZ”) certification from the Office International des Epizooties or World
Organization of Animal Health (“OIE”), JIEP may not be able to host international equestrian events. The risk in obtaining the certification
includes the presence of squatters in the northern corridor near the stables and stray animals near the stables. Before the application for
the EDFZ certification to the OIE, the surrounding area of JIEP should be cleared.
• The construction period is 19 months and the Asian Games are in 26 months. The test and commissioning for the event is 12 months
and further refinement to the programme needs to be carried out to determine whether the deadlines can be met.
• The design and specifications have yet to be approved by the Fédération Equestre Internationale (“FEI”). The approval is required prior
to the commencement of construction in May 2016.
During the Games:
• JIEP may not be able to secure full revenue during the Games. In order to prepare for the Asian Games, the JIEP area will have to be
cleared and sterilized, hence there will not be able to have any equine activities or revenue generated.
After the Games:
• Potential lack of ability to maintain the EDFZ certification and ability to obtain adequate funding to maintain the facilities at an
international standard.
• Potential lack of capability as well as resources to maintain and manage the venue in order to generate revenue.

IDR 365 bil. is required to develop and host the Games … IDR 489 bil. is needed
from INASGOC to repay development cost plus first year cash
shortfall…alternatively, IDR 402 bil. is needed without INASGOC’s compensation
Items Key Findings
Financial 2 3
• The proposed capex for this project is estimated to be IDR 345 bil. to bring it to the standards required to host the Games.
1
Aspects
• Additional capex to acquire horses is estimated to be IDR 2.9 bil. for the initial 3 horses and 3 ponies for the purposes of providing riding
lessons.
• IDR 47 bil. is required for the sustainable capex to refurbish the site with no further funding required to fund the cash shortfalls over the
next 20 years after the Games.
• The potential revenue compensated by Indonesia Asian Games Committee (“INASGOC”) to PMJ is estimated at IDR 7.0 bil./day or IDR
489 bil. /70 days. This was estimated using JIExpo as a benchmark.
• The revenue from equine activities is projected to generate 41% of total revenues. Another 37% from non-equine sources such as
meeting/function/space rental (19%), field rental (9%), accommodation (4%), others (5%). The remainder of 22% is derived from the
potential revenue from INASGOC. Without INASGOC, the share of equine revenue as a percentage of the total is 53%.
• The opex is projected to be 51% of the revenues (non-INASGOC) and will primarily be made up of the following: horse-related cost
(21%), electricity (23%), staff cost (23%) and maintenance (12%).
• Once the initial capital injection (IDR 365 bil.) and INASGOC revenue (IDR 489 bil.) are received, the project is forecast to continue to
generate positive cash flows and will not require further capital injections. We understand that there are challenges in securing this sum
as other venues vie for a limited INASGOC compensation funds available.
• Without INASGOC revenues, the capital injection needed increases to IDR 402 bil. and the project is unable to provide the shareholders
with a payback within the 20 years projection period.
• Although the cash flows are expected to be positive after the games, it is unable to support any commercially-priced and sourced debt
due to its inability to repay the interest and principal. As such, financial support from the shareholders is critical to develop and host the
Games, and adequate revenue compensation from INASGOC is needed to either repay the initial capital outlay by the shareholders or to
ensure that the venue continues to be able to upkeep and maintain its international standard.
• The project returns are most to changes in capex and INASGOC revenues – a 10% change in these items changes the project returns
by ~6%. Comparatively, changes to the Revenue and Opex by 10% will change the project returns by ~4%.
Potentially providing employment to ~1,400 persons during construction …
redevelopment of the venue expected to alleviate the attractiveness of East
Jakarta … venue generates income from land tax and income tax
Items Key Findings
Socio- Job Creation: 2 3

1
economic
• The construction period takes place over 2 years or 24 months period. By using these assumptions, we derived at the estimated 1,391
benefits
staffs per month during the construction period.
• For the direct employment, it will occur during the operational period of JIEP after the Games. PMJ will directly employ 52 full-time staffs
in the JIEP. The average wage is IDR 36.3 mil., which is 11.7 times above the minimum wage (IDR 3.1 mil./ month/ employee).
Area attractiveness
• The attractiveness of area in East Jakarta will increase as a result of the equestrian facility with international standard.
• The Games can also potentially increase the land and property price in the East Jakarta, in particular surrounding the JIEP venue.
Taxes
• Profits generated from the JIEP from the 20 years operational period will be taxable resulting in higher tax revenues.
• Based on the financial model projection for construction and operational period, we estimated the land tax and the income tax payable to
local government are IDR 196 bil. and IDR 116 bil. respectively.

Section 3:
Location Analysis

3. Location Analysis
Scope of work and methodology
Scope of Work
Identification • The section will be divided into the following part:
• Study of the Location 3.1 Location Attributes
 Assess the development plan 3.1.1 Overview of the Pulo Mas Area
 Assess the site attribute 3.1.2 Overview of the Pulo Mas Racecourse
Analysis 3.1.3 Accessibility
• Location Study 3.1.4 Supporting Amenities
 Perform a SWOT analysis on the site 3.2 SWOT Location Analysis
3.3 Critical Success Factors
Methodology
• In preparing the report, we have completed the following tasks:
 Desktop research
 Direct interview with representatives of PMJ management and project
planning team, PMJ 3 business unit, and technical consultant
 Site visit to the Pulo Mas equestrian venue on 29 March 2016
 Site visit to the Arthayasa Stables & Country Club on 07 April 2016

3.1 Location Attributes
Pulo Mas is well known as a middle-to-high end residential area and racecourse
3.1.1 Overview of the Pulo Mas Area • The existing facilities include a 4-storey tribune, 160 stables, jockey
dormitories, a 1.85 km racecourse, 400 parking lots and a 2,400 m2 covered
• The Pulo Mas area is already well known as a middle-high residential area
training area. These facilities were developed in the 1980s and require major
and racecourse. It is situated in eastern Jakarta. The area is part of the Kayu
refurbishment to meet international standards for an equestrian venue.
Putih administrative village and Pulo Gadung sub-district. It is located
between Kelapa Gading and Rawamangun.
• Back in 1963, PMJ (previously known as Yayasan Pulo Mas Jaya) was given
350 ha land in Pulo Mas to be developed for residential use only by the
Government of Jakarta.
3.1.2 Overview of the Pulo Mas Racecourse

• In 1978, the Governor of Jakarta at that time appointed PMJ to build a
racecourse at Pulo Mas, known as Pacuan Kuda Pulo Mas. The venue is
located at Jl. Pulo Mas Jaya; 3 km away from Kelapa Gading, known as a
commercial and middle-high residential area. To support equestrian sport for
the Games, the Government of Jakarta has appointed PMJ to redevelop the
existing facilities to be an international equestrian venue to be named Jakarta
International Equestrian Park (“JIEP”)
View from Function Room at 4th Level
• The total area of JIEP is approximately 32 ha with 27 ha of green open space
and lakes. There are 3 lakes located within the racecourse with the largest
lake obtaining its water from natural springs.

JIEP is served by the Tj. Priok toll road via the Cempaka Putih toll gate and is
best accessed via car / taxi
3.1.3 Accessibility
• JIEP is located:
Soekarno-Hatta
International  45 mins drive from Central Jakarta
Airport Kelapa Gading
 1 hour drive from Soekarno-Hatta International Airport or 20 mins drive from
(residential and Halim Perdanakusuma Airport
commercial)
• Access via main roads and toll roads:
 From West & North Jakarta: Tj. Priok Toll Road to Jl. Perintis Kemerdekaan
Athlete's Villages -  From East & South Jakarta: Tj. Priok Toll Road to Jl. Kayu Putih and Jl.
Kemayoran Pemuda
 10 to 15 mins drive from the Cempaka Putih Toll Gate
Central Area JIEP, Pulo Mas
(Central Business • Close proximity to other venues for the 2018 Asian Games:
District)  10.1 km to the Athletes’ Village at Kemayoran
 13.1 km to the Gelora Bung Karno at Senayan
Gelora Bung Karno  3.1 km to the Velodrome Stadium at Rawamangun
Stadium - Senayan
• Public transport availability to the venue is limited with the nearest bus stop
(ASMI Bus/TransJakarta) located 1.1 km away (~15 mins walk). There is no
pedestrian access to the venue. The most convenient way to the venue is by
taxi or car.
Halim
Perdanakusuma
Airport

Strategically located near malls, hotels, schools and hospitals
3.1.4 Supporting Amenities

• Amenities located nearby include:
 Commercial Area (Arion Mall, Mall Kelapa Gading, Mall of Indonesia / MOI,
Lotte Mart)
 3-star hotels (The BnB Kelapa Gading, Fave Hotel Kelapa Gading, Whiz
Prime Hotel Kelapa Gading, All Sedayu Kelapa Gading Hotel, and Hotel
Santika Kelapa Gading) and 4-star hotels (Harris Hotel & Conventions
Kelapa Gading, Grand Whiz Hotel Kelapa Gading)
 Residential Area (Pulo Mas Residence, Pasadenia, Kelapa Gading)
 Public Schools (SMAN21, SMP Negeri 99)
 Intercultural School (Global Sevilla School)
 Public Hospital (Kartika)
 Private Hospitals (Omni, Columbia Asia)

3.2 SWOT Location Analysis
Well known middle-to-high end residential area with strong affiliation with
equestrian activity
Strength Weaknesses
 Pulo Mas has been well known as racehorse area hence it has strong  Although Pulo Mas is well known for horseracing, most of the facilities
affiliation with equestrian activity. are poorly maintained.
 The location is easily accessible from around Jakarta and Bekasi.  Development of the surrounding area has not started or been halted.
This may give negative perception of the location and affect its
 It also has close proximity to City Central and different public amenities.
attractiveness.
 The venue is surrounded by a middle-high residential area and
 Pulo Mas is perceived as a frequently flooded area.
international school with high land values.
 The main entrance is not located on a main road. Hence the traffic is
 Beautiful scenery with greenery and lakes.
relatively low, only depends for residential area and school nearby.
Opportunities Threats
 JIEP has a great opportunity to be integrated and synergize with the  Jakarta is not yet free from horse disease which may affect JIEP as a
development of mixed-use property surrounding the venue. venue for the Games.
 Development is shifting to Eastern Jakarta. Hence the potential market  The delay in mixed-use property development in Eastern Jakarta may
is expected to increase. impact the potential market for equestrian activities.
 With the future development of LRT near the venue, accessibility of  Social perception of Eastern Jakarta which could influence JIEP’s
JIEP will be increased significantly. image; e.g. undeveloped area and high criminal rate.
 Advantage of increasingly wealthy classes in Jakarta.

3.3 Critical Success Factors
• Ensuring that the Indonesian governmental organisations involved in

facilitating compliance with the pre-requisites needed to establish and
maintain the status of the EDFZ (Equine Disease Free Zone).
• Effective management of the high risk areas identified.
• Continued financial support from the shareholders of PMJ to fund the shortfall
arising from the operations and periodic capex needed to upkeep the facilities
to avoid them falling into disrepair.

Section 4:
Review of the Development Plan

4. Review of the Development Plan
Scope of Work
• The following tasks will be carried out in reviewing the development plan for • The section will be divided into the following parts:
the JIEP:
4.1 Traffic Management
 Identify the current condition and development plan of the JIEP
4.2 Parking Management
 Understand the gap between the current condition and the development plan
4.3 Security and Access
 Highlight the limitations that may affect the development of the JIEP
4.4 Utilisation of Floor Space
Methodology
 Obtain and observe the initial development plan from PMJ
 Analyse the modifications made in the revision of development plan
 Provide insights and recommendations for possible improvements that can
be made to PMJ’s development plan

4.1 Traffic Management
Introducing additional entrances and changing traffic flow to alleviate traffic
congestion during events
• Based on the initial plan and discussion on 29 March 2016 with PMJ’s
technical consultants PT Jakarta Konsultindo, it was highlighted that traffic
congestion will occur along Jl Pulomas Jaya arising from a backlog of C
vehicles attempting to clear the 2 security gates at the single point of entry at
the main entrance.
• The PMJ team subsequently met the Transportation Unit of the Provincial
Government of DKI Jakarta (Dinas Perhubungan) to share their plans for the
entrance and to seek their advice on ways to minimize the impact of the
traffic congestion.
• Following that meeting, the entrance plan to the venue was revised in their
latest plan, dated 16 April 2016.
• Under that plan, an additional entrance will be introduced along Jl. Pulomas
Jaya about 100m before the main entrance. This additional entrance is
intended to accommodate non-VIP vehicles together with buses and will
have 3 security gates (see B in diagram).
• VIP vehicles will continue to enter though the main entrance where the
existing 2 security gates will remain (see A in diagram).
• To reduce the traffic congestion further, an additional entrance for heavy
vehicles and horse trailers will be introduced at the northern part of the
venue via Jl Pulo Nangka (see C in diagram).
• Under the revised plan, the PMJ team plans on changing the 2-way system B
along Jl Pulomas Jaya to a one way system. This is to provide an extra lane A
to allow the VIP cars to proceed to the main entrance without being held
back by the other vehicles entering through Entrance B (see red arrow).

4.2 Parking Management
Additional bays may be needed for buses and motorcycles
• Based on the initial plan and discussion on 29 March 2016 with PMJ’s
technical consultants PT Jakarta Konsultindo, it was highlighted that the plan
may not have captured the required amount of parking for buses. It was
envisaged that buses for delegates and/or spectators would park along the
tree lined internal road which runs along the perimeter of the parking lot.
• We also highlighted that the plan did not appear to incorporate the necessary
parking for motorcycles as well as passenger drop-off / pick-up points and taxi
lay-bys.
• In the 16 April 2016 revised plan, parking space for motorcycles and buses
have been incorporated. However, the bus parking is limited to 5 bays (see 1
3
in the diagram) and 60-70 motorcycle bays (see 2 in the diagram) may not be
adequate.
• We feel that this may be an underestimation due to the potential number of
1
buses carrying delegates and spectators and the large number of day workers 2
required (eg. staff for function rooms, stable hands). As such, we suggest that
PMJ consider identifying overflow parking space for buses and motorcycles
during events. We are cognizant that expanding the number of bays for buses
and motorcycles will reduce the 250-275 car park bays planned for visitors.
• The passenger drop-off / pick-up points and taxi stand is envisaged to be
away from the main entrance and situated along the main road after the
entrance to the incomplete mall (see 3 in the diagram).

4.3 Security and Access
Horses need to be kept secure and supervised
Ensuring the Security of the Horses • The specifications of the automated access control system to be installed at
the venue needs to be considered carefully by PMJ in the planning stage to
• Given the value of horses, it is important to ensure the security of the horses
ensure that it is able to comply with any requirements set by INASGOC, while
stabled at the venue at all times.
being sufficiently flexible to cater for various access modes such as RFID
• Based on the latest development plan, it is unclear whether a sufficient buffer and/or QR technology if required for future events. It should be noted that
zone has been allocated between the horses and areas which are readily these considerations will ultimately affect the capital cost incurred for the
accessible by members of the public. refurbishment of the facility.
• Protective measures such as installing fencing of an adequate height to Entrance into Venue Perimeter
provide minimal visibility from the outside, 24-hour CCTV surveillance as well
• Based on the initial plan and our discussion on 29 March 2016 with PMJ’s
as regular patrolling are crucial in preventing unwanted access into the stable
technical consultants (PT Jakarta Konsultindo), we also highlighted the
area.
requirement for security checks for all access (both vehicular and pedestrian)
Access to the Tribune into the venue.
• At present, it is unclear which areas within the tribune will be accessible by • Given the high-profile nature of the events hosted at the venue, sufficient
non-paying customers during the Asian Games. security personnel has to be assigned at all times to ensure the safety of both
the participants as well as the patrons.
• Based on our experience at venues hosting major sporting events, there is
typically at least two layers of security to distinguish between paying and non- • Visible security presence at key entrance and exit points during all times of
paying patrons – the first layer being the entrance into the venue itself and the the day will allow PMJ to ensure a tight cordon around the venue as well as
second being the entrance into the spectator area. manage any infarctions that may occur in an expedient and orderly manner to
minimize any impact on events being held at the venue.
• Access to similar venues is typically regulated by an automated access
control system. Based on our understanding, events like the Asian Games
place a strong emphasis on the consistency of the Games’ experience across
venues. In terms of ticketing, it is therefore likely that tickets for the Asian
Games will have to comply with the requirements set by INASGOC.

4.4 Utilisation of Floor Space
There is a need to have F&B facilities within the tribune for the convenience of
visitors and spectators
Overview F&B facilities on 1st Floor

• Based on the latest JIEP development plan and our discussion with the PMJ • Based on our initial discussion with PMJ, the retail space on the 1st floor is
management and its technical consultant, we noted that the Tribune Building meant for merchants selling equine-related products. We were told that
will consist of 4 floors: F&B facilities will be housed in the public F&B area at the far end of the
carpark as well as the abandoned mall next to the JIEP. Both venues are
Type Estimated Composition about 200m from the tribune.
Lettable Area
• It is our view that there is a need to have F&B facilities (eg café,
A: 1st Floor - Retail 447 m2 6 retail lots convenience shop) within the tribune for the convenience of visitors and
space spectators.
B: 2nd Floor - Office 628 m2 3 multipurpose rooms • It is also common for temporary shelters to be erected for F&B purposes
& MEP space due to increased demand from spectators and visitors during certain events.
C: 3rd Floor - 669 m2 10 (meeting) rooms It is recommended that PMJ identifies such area surrounding the Tribune.
Office/meeting room
D: 4th Floor - 1,287 m2 1 unit function room and pre- 2nd Floor for internal use or potentially a gym
Function Room function room, 1 unit VIP room
and 1 dining area • We understand from PMJ that this floor can either be rented out or be
retained for the JIEP management office and storage space for banquet
table and chairs. Space can also be allocated to cater for the back of house
area needed to support the dining, function and meeting rooms.
• Considering that this 2nd floor does not have any windows, we feel that it
could be best retained for internal usage. Alternatively, this space can be
D converted into a gymnasium where members can cater to the However, it
C may be we propose to utilize this floor to be allocated for gym facilities. It
can be intended to general target market such for adults or specifically for
B kids or women gym.

Section 5:
Business Study

5. Business Study
Scope of Work
• The following tasks will be carried out in conducting the Business Study for • The section will be divided into the following parts:
the JIEP:
 Perform industry and market studies based on a combination of primary and
secondary research
 Highlight key success factors based on an analysis of comparable equestrian
venues 5.4 Risk Analysis
 Identify potential development concepts for JIEP after the Games
 Identify key project risks affecting the viability of the project
Methodology
 Desktop research
 Direct interviews with representatives of PMJ management and project
planning team, including members from PMJ 3 Business Unit, as well as
technical consultants for PMJ
 Phone interview with representatives of equestrian venues in Indonesia,
Singapore, Malaysia, and Thailand
 Site visit to Arthayasa Stables and Country Club on 7 April 2016

Good equestrian facilities will initiate market interest, although predominantly
designed for the affluent
Equestrian Industry Overview • Based on our discussion with Mr. Rafiq (owner of Arthayasa Stables &
Country Club), Ms. Putri (Indonesian Equestrian Show Jumping Athlete) and
• Based on BPS DKI Jakarta, the interest in sport has gradually increased over
Ms. Adel (representative from APM), women form a large proportion of youth
the last few years, as shown in the adjacent graph. The number of users of
involved in equestrian. As such, the main target for equestrian industry is
sports facilities increased to 4.8 million users in 2015 from 4.1 million users in
women from age 15 – 25 years old, and from the upper-middle class.
2012.
4.4 4.5 4.8 • According to Mr. Rafiq, equestrian sport in Indonesia is still relatively nascent,
4.1 particularly when compared to Singapore, Malaysia, and Thailand.
Nevertheless, there has been sufficient interest in the sport to support the
development of at least 9 equestrian venues in the Greater Jakarta area.
• From Ms. Putri’s standpoint as a Equestrian Athlete and owner of Trijaya
Equestrian Centre, the impediments in the Indonesia’s equestrian sport are
primarily the lack of participation from society and least cooperation
contributed from the related stakeholders.
2012 2013 2014 2015
• Ms. Putri believes providing international and good equestrian venues and
Total number of sport faciltities user (in million)
facilities, will initiate interest equestrian sport in the community.
Source: Deloitte Research from BPS DKI Jak arta
• Equestrian sport is predominantly perceived as a sport for the affluent, due to

the relatively high cost of participation and the exclusive nature of its events.
• In Indonesia, the governing body for equestrian sport is the Equestrian
Federation of Indonesia (“EFI”). The industry is also represented by the
Persatuan Olahraga Berkuda Seluruh Indonesia (“PORDASI”).
• For athletes pursuing equestrian as a full time sport, the equestrian venue
located in Tangerang named Adria Pratama Mulya (“APM”) provides national
schooling and boarding facilities for the athletes.

JIEP is accessible from the affluent suburbs within an hour’s drive
Location
• As discussed at Section 1, JIEP has a strategic location. It is surrounded by
PIK, Ancol & Pantai Mutiara middle-high residential, such as Pulo Mas Residence, Pasadenia and Kelapa
(45 – 60 mins)
Kelapa Gading area. This will be a main driver for JIEP. In addition, there are a few
Gading international schools located in Kelapa Gading area, located within 10
(10 mins) minutes drive (i.e. North Jakarta International School, Gandhi Memorial
International School, Penabur International School)
Menteng & • As shown in the map, Pulo Mas is easily accessible from around Jakarta.
Thamrin This will increase the additional revenue drivers for a school from other high
(30 - 45 mins) Pulo Mas
residential areas in Jakarta.
Puri Indah &
Kedoya
(45 – 60 mins)
Promotion
• JIEP needs to establish itself as the international equestrian venue in Jakarta.
Taking advantage of this after the Games, PMJ should be able to maintain the
facilities. The Games will provide good promotion for equestrian enthusiasts
Permata Hijau & to ride at the JIEP.
Pondok Indah
(45 – 60 mins) • PMJ should also aim to promote equestrian sport through events,
championships and horse shows. Based on our research, many people would
like to try riding lessons. However there is a lack of information on venues
that provide riding lessons. Most horse owners start as students in a riding
Senayan & school. As they gain more interest in equestrian sport, they will then purchase
Kebayoran Baru their own horse.
(30 – 60 mins)
JIEP
Within Greater Jakarta, there are 9 other professional equestrian venues
Competition
• Based on our desktop research, there are 9 other equestrian venues within
the Greater Jakarta area, i.e.:
1. Adria Pratama Mulya (2008) – Tapos, Tigaraksa, Banten
2. Anantaya Riding Club – Jl. Kp Babakan No. 78, Bojong Nangka, Gunung
Putri, Bogor
3. Arthayasa Stable (1992) – Jl. Bulak Tengki No. 10, Depok, Cinere
JIEP 4. Danapati Equestrian (2012) – Jl. Pasir Angin III No. 25, Megamendung,
Bogor, Jawa Barat
5. Gading Equestrian (2006) – Jl. Pejaten Raya No. 9, Pasar Minggu, Jakarta
Selatan
6. Jakarta Perkumpulan Equestrian Centre (2002) – Jl. Pasir Maung
Babakan, Jawa Barat
7. Nusantara Polo Club (2005) – Jl. Kp Kranji No. 44 Ciriung, Bogor, Jawa
Barat
8. Pamulang Equestrian Centre – Jl. Pajajaran, Bambu Apus Pamulang,
1 5 Banten
9. Trijaya Equestrian (1982) – Jl. H. Montong No. 23, Ciganjur, Jakarta
Selatan
8
9 2
7 6
3
4

We selected 13 equestrian venues; domestic and overseas, for our comparison
Thailand: Methodology
• Thai Polo & Equestrian Club (TPEC) • Our selection methodology for these venues was based on:
 All 13 venues selected substantially focus on holding equestrian
Malaysia: events (dressage, show jumping and cross-country);
• Bukit Kiara Equestrian & Country Resort (BKECR)
• Putrajaya Equestrian Park (PEP)  Located within the Southeast Asia region;
• Selangor Turf Club Equestrian and Sport Centre
(STECSC)  Tropical climate and similar humidity levels; and
• Perak Turf Club Equestrian Club (PRTCEC)  Have experience in hosting competitive equestrian events.
Singapore:
• Singapore Turf Club Riding Centre • Please refer to the Appendix E for the detailed analysis and findings.
(STCRC)
• Singapore Polo Club (SPC)
• Bukit Timah Saddle Club (BTSC)
Indonesia:
• Arthayasa Stables & Country Club
(ASCC)
• Bali Equestrian Centre (BEC)
• Jakarta Perkumpulan Equestrian
Centre Sentul (JPESC)
• Trijaya Equestrian Centre (TEC)
• Adria Pratama Mulya (APM)

Comparison Summary for Equestrian Venue
Indonesia Malaysia Singapore Thailand

Description
ASCC BEC JPECS TEC APM BKECR PEP STCESC PRTCEC STCRC SPC BTSC TPEC
General Equestrian Area Size Ha 14 2.5 5 2 6.7 25 28 9.7 ~3 3 11 10 250
Indicators Total Area Size Ha - - - - - - - 103.2 * 51 ** 81 * - - -
Putrajaya,
Ciganjur, Bukit Kiara, Wilayah Sungai Besi,
Limo, West South Tangerang, Kuala Persekutuan Kuala Pattaya,
Location Java Canggu, Bali Sentul, Bogor Jakarta Banten Lumpur Putrajaya Lumpur Ipoh, Perak Singapore Singapore Singapore Thailand
Year of Establishment 1992 2012 2002 1982 2008 nav. 2006 1994 1994 2008 1886 1952 2005
Ownership Private Private Private Private Foundation Private Council Private Private Government nav. nav. Private
Number of Stables 86 40 80 50 50 200 100 40 35 21 nav. 100 218

Occupancy Rate of Stable % 90 100 95 50 100 nav. nav. 90 90 90 nav. 90 90
Indicative Pricing Equine :

Structure Revenue Structure Non-Equine 80:20 90:10 90:10 90:10 90:10 nav. nav. 100:0 100:0 100:0 100:0 100:0 90:10
340,000 270,000 1,500,000 1,400,000 1,100,000
Riding Lesson / School IDR / visit 600,000 950,000 450,000 500,000 450,000 nav. nav. (~MYR 100) (~MYR 80) (~SGD 150) (~SGD 140) (~SGD 110) nav.
IDR mil. / 13.5 (~USD 2 8.5 (~MYR 21.0 (~SGD 22.0 (~SGD
Rental Stable month 10.9 1,000) excl. livery 6 4.5 nav. nav. x 2,500) 2,100) nav. 2,200) nav.
IDR mil. / 1.5 (~MYR 16.5 (~SGD 19.5 (~SGD
Membership month 13.7 x 6.6 5 x nav. x 440) x x 1,650) 1,950) nav.
Events Equine Yes (v)

World Championship 8 v x v x v x v x v v v x v
ASIAN Games 0 x x x x x x x x x x x x x
SEA Games 3 v x x x x x x v v x x x x
National Championship 11 v x v v v x v v v v v v v
Club Championship 13 v v v v v v v v v v v v v
Pony Camp / Children
Activities 9 v v v x x v v v x v v v x
Horse Educational Activity 6 x v x x v x x v x v v v x
0
Non-Equine 0
Sport Championship 2 x x x x x v v x x x x x x
Party / Occassion 5 v v x x x v v v x x x x x
Concert Event 1 x x x x x v x x x x x x x
Bazaar / Festival 0 x x x x x x x x x x x x x
MICE 6 v x x x x v v v x v v x x
CSR and Charity 4 x x x x v v x x v v x x x
Boarding School 1 x x x x v x x x x x x x x
v Available
x Not Available
nav. Data Not Available
* : Equestrian & Turf Club are located in same area
** : Equestrian & Turf Club are located in different area

Comparison Summary for Equestrian Venue

Description
Yes (v) ASCC BEC JPECS TEC APM BKECR PEP STCESC PRTCEC STCRC SPC BTSC TPEC
Design and Equestrian
Facilities Dressage 13 v v v v v v v v v v v v v
Show Jumping 13 v v v v v v v v v v v v v
Cross-country Track 7 v v x x v x v v x x x v v
Equine
Polo 5 x x x x v v v x x v x v v
Veterinarian 5 x x x v x x x v v x x v v
Riding for Disabled 5 x x x v v x v v x x x x x
Breeding 3 x v x v x x x x x x x x x
Tack Shop 6 v x x v v x x x v x x v v
Export and Import of Horse 1 x x x x x x x x x x x x x
Quarantine Stables 1 x x x x x x x x x x x v v
Pony Rides 12 v v v v v v v v v v v x x
Tour and Sightseeing 2 v x x x v x x x x x x x x
Lesson for Certification 5 v x x v x x v x x v v x x
Non-Equine
Accommodation 3 x x x x x v x x x x x v v
Function Area 7 v x x v v v v x x v x x x
Restaurant / Café 12 v x v v v v v v v v v v v
Photoshoot 7 v x x v v v v x x x v x x
Sport Facilities 6 v x x v v x x x x v x v v
Sport Lesson 2 x x x x v x x x x v x x x
Others
Swimming Pool 5 v x x x v x x x x v x v v
Playground 2 v x x x v x x x x x x x x
Fitness Centre 3 x x x v v x x x x v x x x
Personal Trainer 1 x x x x x x x x x v x x x
Squash 2 x x x x v x x x x v x x x
Tennis 2 x x x x v x x x x v x x x
Badminton 1 x x x x v x x x x x x x x
Basketball 1 x x x x v x x x x x x x x
Table Tennis 1 x x x x v x x x x x x x x
Bowling 1 x x x x v x x x x x x x x
Volleyball 0 x x x x x x x x x x x x x
Archery 2 x x x x x v x x x v x x x
Pilates & Yoga 1 x x x x x x x x x v x x x
Beauty Studio 1 x x x x v x x x x x x x x
Spa 2 x x x x v x x x x v x x x
v Available
x Not Available

Based on our analysis, most venues generated revenues of around 90% from
equine related activity
Importance to
Item Description
PMJ
Equestrian • All of the venues have arenas (indoor and outdoor) that can be used for dressage and
show jumping.
(dressage, show jumping,
cross country) • 7/13 venues have the ability to hold cross country.
Equine • All of the venues provide riding lessons, pony rides, and horse boarding.
Design and (riding lessons, pony • 5/13 venues provide Riding for the Disabled programs with certified instructors.
Facilities rides, boarding, riding for
• 5/13 venues provide a veterinarian.
the disabled, veterinarian,
tack shop) • 6/13 venues have tack shops.
• 7/13 venues have function room.

Non-Equine
• 6/13 venues have other sport facilities.
• 8/13 venues have held World Championship.

• 3/13 venues have held SEA Games.
Events Equestrian
• 11/13 venues have held National Championship.
• All venues have regular club championship event.
• 3/13 venues are within Turf clubs that have a race course along with an equestrian
facility located nearby. Based on our comparison analysis, the turf club is separated
Race Course
from the equestrian facilities, due to the size requirement of the facilities and the
Others different varieties and characteristics of the horses used.
Revenue Stream • Most of the venues generate their revenue from equine related activities.

JIEP should be developed as an integrated park which combine both equestrian
and non-equestrian activity
Based on the research, PMJ could develop JIEP with different facilities and MICE
activities, such as:  PMJ can utilize both indoor and outdoor facilities for event, such as wedding,
Equestrian Center meeting, seminar, party, gathering, or even concert. However PMJ needs to
consider the impact of heavy traffic and noise levels which may disturb
 After the Games, PMJ should maintain the international equestrian
Social
standards and aim to remain as the center for equestrian sport in Jakarta.
community in the surrounding area.
(greenery, park,
 Develop boarding horse, riding school program, pony ride, pony camp,
 The venue can also function as a communal place for social activity, bazaar,
education,
extracurricular activities (collaboration with communal
international school), Riding for
night market, trade show, etc. Example: Royal Easter Show in Sydney which
space) combine the equestrian event with trade show. The event can be hold at the
the Disabled (RDA) program and breeding center.
parking lot and the tribune area.
 Collaborate with international equestrian association/federation to hold
international equestrian event, such as World Championship, Qualifications,
Sports
Certification and Horse Show. Theme Accommodation and Club House
Center Park  PMJ can provide café/restaurant near to riding school as the meeting point
for children after the training and for parents who are waiting for their
Sports Center
children’s riding class.
 Additional sport facilities can be provided, such as polo, volley ball, archery,
swimming pool, etc.  Hotel can be used for camping program, e.g. pony camp, intensive riding
program for athlete, etc. Based on our interview with Arthayasa and Bali
Sport Equestrian Centre, there are quite number of foreign riders who would stay
and ride.
Park and Playground
(equestrian and
 Based Equestrian
on the plan, there is estimated
non-equestrian area of 10 ha for the lake.  It is also possible to build equestrian property, such as apartment unit
Park the greenery area combined with the stables and membership to the park.
 PMJsport)
can support the government by providing
surrounding the equestrian arena.

5.4 Risk Analysis
In developing JIEP, PMJ must obtain international recognition from H High
FEI and EDFZ certification from OIE M Moderate
L Low
Risk Risk
Identified Rating Rating
No. Exposure Mitigation Plan
Risk Pre Post
Mitigation Mitigation
Prior to the Games
1 Delay in  Implication:  Plan:

Commence • Delay in construction of the project commencement due • Before the development concept is finalized, PMJ
ment of to the finalization of development concept of project
H should have obtained approval and agreements from
M
Construction design and specifications for the facilities which have FEI in relation to the Games accomplishment. This is to
not been accepted by different bodies such as prevent the adverse impact of delays in project
Fédération Equestre Internationale (“FEI”). construction.
 Result:  Action Undertaken:
• This could delay the project’s construction to prepare for • PMJ has provided the design and specifications of the
the Games. The worst condition that might happened JIEP facilities to Mr. Ho Nai Yue as Chair of FEI
from this matter is the rescission of the Games event in Regional Group VIII, however there is no official
JIEP. approval from FEI yet.
2 Compliance  Implication:  Plan:

with • Non-compliance with the standard will prevent horses • Before the development concept is finalized, PMJ
International imported from other countries being returned to their
H should have obtained approval and agreements from
M
Standard for countries directly due to the absence of a quarantine FEI in relation to the Games requirements.
Animal process. After the horses reside in PMJ during the
 Action Undertaken:
Health event, they would have to stay in Kuala Lumpur or
• Department of Agriculture will assist PMJ to apply for
(Equine Singapore or 3 months to undergo the quarantine
the EDFZ license to OIE, given that the license
Disease process.
application request to OIE requires inter-government
Free Zone)
 Result: relations.
• This could lead to international participants being
reluctant to attend, since they would have to bear the
costs of having their horses quarantined for 3 months.

5.4 Risk Analysis
Uncertainty of development plan for JIEP, for the inclusion of the race H High
course in the equestrian facilities M Moderate
L Low
Risk Risk
Risk Pre Post
Prior to the Games (Continued)
3 Uncertainty  Implication:  Plan:

of Race • There is still uncertainty whether to remove or combine • Because of the uncertainty of this matter, we are unable
Course the race course with the equestrian facility in JIEP.
H to conclude and comment on the mitigation plan at the
M
Existence From PORDASI’s standpoint, they recommend moment. The exposure of this risk cannot be quantified.
within the maintaining the race course with the equestrian facility.
• Once we have further clarification regarding the
development
• Based on our research, racehorses are not compatible decision chosen, we will provide a mitigation plan.
plan
to be located within same location as with equestrian
horses. Moreover, JIEP with size of 32 ha, is not large
• PMJ has developed the master plan to implement JIEP
enough to have both a race course and equestrian
without the race course, in order to obtain the EFDZ
facility within the same area.
license as an international standard.
• Based on our research on other locations, we found that
the turf club is separated from the equestrian facilities,
due to the size requirement of the facilities and different
varieties and characteristics of horse used. Even though
they are located in the same area.
 Result:
• Due to the movement of racehorses in and out, having a
race course within JIEP could lead to the inability to
obtain the approval for an Equine Disease Free Zone
license from World Organization for Animal Health.

5.4 Risk Analysis
PMJ will suffer potential loss due to absence of income prior to and H High
during the Games M Moderate
L Low
Risk Risk
Risk Pre Post
During the Games
4 Absence of  Implication:  Plan:

Revenue • During the 2 years period from construction and • PMJ will propose to Indonesia Asian Games Committee
Generated refurbishment of JIEP (Estimated on May 2016) until the H (“INASGOC”) to provide appropriate and reasonable M
for PMJ Games (September 2018), there will not be any revenue funding during the absence of revenue generated.
generated for PMJ.
 Result: • PMJ will propose to INASGOC for revenue funding. The
• This could lead to potential losses in 2 consecutive reasonableness of funding will be calculated based on
years, due to uncovered costs and disrupted cash flow the estimated revenue that might be generated by PMJ.
from the absence of revenue generated.

5.4 Risk Analysis
After the Games, PMJ will have to maintain and up keep the venue, H High
as well as maintain the interest from society M Moderate
L Low
Risk Risk
Risk Pre Post
After the Games
5 Lack of  Implication:  Plan:

Awareness • There is still a lack of awareness and interest from • PMJ should advertise and increase awareness in
and Interest society for equine information and the industry. This is a
H society about the equestrian sports through routine
M
from Society result of limited information and advertisement for events, advertisements in magazines and billboards, as
equine. well as providing sufficient information to create
demand.
 Result:
• This could lead to low demand and growth for equine  Action Undertaken:
sports from society as well as from Indonesia. • N/A.
6 Lack of  Implication:  Plan:

Maintenance • There is lack of capability and resource with sufficient • PMJ should ensure its management team has sufficient
due to Lack knowledge to maintain equestrian facilities in Indonesia. knowledge of the equestrian industry. The management
of Capability Even though JIEP will support the existence of the
H needs to be developed before the equestrian venue is
L
and equestrian venue, it has to be run by human capital with established, thus the management will have the
Resource sufficient knowledge of the industry. knowledge and confidence to run the facility into the
future.
 Result:
• This could result to abandonment of the equine facilities  Action Undertaken:
in JIEP. Due to lack of maintenance and improper • PMJ has appointed Equestrian Consultants to assist
momentum from the management, JIEP that has been PMJ in developing JIEP to international standards.
established as international equestrian venue might be
reverted back to current state of poorly maintained.

Section 6:
Financial Assessment

6. Financial Assessment
Scope of Work
• To perform the project viability of financial assessment, the following phase • The section will be divided into the following parts:
will be implemented for JIEP:
6.1 Revenue Composition
 Identify the projection for the funding, operating expenses and capital cost
6.1.1 Potential Revenue from INASGOC
 Develop the financial model based on the basic assumptions relevant to the
6.1.2 Equine Revenue
equestrian venue
6.1.3 Non-Equine Revenue
 Analyse the likelihood of funding gap incurred
6.2 Operating Cost Composition
6.2.1 Variable Cost
Methodology
6.2.2 Fixed Cost
6.2.3 Other Cost
 Perform desktop research to obtain the basis assumptions used in the
financial model, both in revenue and cost factor 6.3 Capital Cost Composition
 Direct interviews with representatives of Arthayasa Stables and Country Club 6.3.1 Venue
to calculate key revenue and cost driver of equestrian venue for comparison
6.3.2 Equine
 Provide the funding assumption from the financial model
6.4 Cash Flow Projection
6.5 Summary and Recommendation
6.6 Project Cash Flow

Overview
Overview • Types of equine activities as follows:

• Based on other equestrian venues, we identify the revenue composition is  Boarding (stable rent)
generated from equine revenue and non-equine revenue. For JIEP, there is
 Riding lessons
also potential revenue generated from INASGOC (Indonesia Asian Games
Committee).  Pony rides
• In the financial model projection, we classified the revenue as generated from:  Tack shop
 Potential revenue from INASGOC  Other equine activities (pony camp, tour & sightseeing and school
extracurricular activities)
 Equine
 There are several opportunities for potential equine revenue streams. Due to
 Non-Equine
the unidentified factor for each revenue streams at this stage, we have not
included these revenue streams (i.e. participation fee for championship or
event, breeding, medical services, increased value of the breeding horse
6.1.1 Potential Revenue from INASGOC
that win championship, broadcasting rights).
• There is a possibility for PMJ to obtain the potential revenue compensation
from INASGOC. The revenue compensation is to reimburse PMJ for the
usage of the JIEP venue prior to, during and after the Games event. We 6.1.3 Non-Equine Revenue
compared the potential revenue based on the comparison with 3 other venues
• Another revenue stream is generated from the non-horse related activities in
for the Games (JI Expo, ICE BSD and JCC Senayan).
JIEP. The non-equine revenue composition is generated from:
 Accommodation
6.1.2 Equine Revenue
 Rentals (field, retail space, open area, meeting room and function hall)
• Main revenue generator is equine revenue, primarily generated from horse-
 Parking lot
related activities.
 Other non-equine revenue (eg. fishing, archery, advertisement, volleyball,
etc.)

6.1.1 Potential Revenue from INASGOC (1/6)
Comparison with 3 other venues for the Asian Games
Overview • INASGOC plans to compensate the venues for the usage to the sum of
certain amount per 70 days.
• According to PMJ, as the equestrian event venue of the Games, JIEP may be
compensated by the INASGOC (Indonesia Asian Games Committee) for the • Seventy days is for a 10 weeks period that the venue will be secured for the
use of the site. Games - 4 weeks before the Games, 2 weeks during and 4 weeks after.
• We understand from PMJ that there will be several venues which will be used • We will apply the 70 days as a basis methodology for our approach and
for the 2018 Asian Games. calculation.
• Those venues are specifically listed below:
Venue Location / Address Area Size (Total / Proposed Calculation to determine potential revenues for JIEP
Indoor / Outdoor) Sports
• The steps below outline our calculation steps:
Activity At
Venue  Step 1: Determine the area to be utilized for the event
JI Expo Jl. Benyamin Suaeb, Indoor: 40,000m2 Judo, karate, • Although the entire JIEP is 32 ha, to be conservative, we have
(Jakarta RW.10, Pademangan Outdoor: 60,000m2 weight lifting, assumed that INASGOC will exclude the unusable area covered by the
International Tim., Pademangan, wrestling, lakes.
Expo) Kota Jkt Utara, Daerah wushu, etc.
Khusus Ibukota • For the purposes of the calculation, we have used 22 ha only.
Jakarta, Indonesia  Step 2: Identify the indoor and outdoor area
ICE Jl. BSD Grand Indoor: 50,000m2 Fencing, • For JIEP, the indoor area is assumed to be the area covered by the
(Indonesia Boulevard BSD City, Outdoor: n/a taekwondo, buildings, permanent structures and built-up area (eg tribune, arenas,
Convention Kota Tangerang, gymnastic,
stables, dormitory) which is estimated to be 5 ha.
Exhibition) Banten, Indonesia squash, table
tennis, etc. • As such, deducting 5.2 ha from the utilized area of 22 ha, the outdoor
area is the balance 16.8 ha.
JCC Jl. Jend. Gatot Subroto, Indoor: 13,000m2 Badminton.
(Jakarta Daerah Khusus Ibukota (area size for  Step 3: Calculate the potential revenues from JIEP
Convention Jakarta, Indonesia convention,
Center) meeting and • Using the other venues’ rates as a proxy to determine the potential
special events) revenue from INASGOC, the calculations are illustrated in the following
Outdoor: n/a pages.

Based on JI Expo’s rate, JIEP will be compensated with IDR 489 bil./70 days
from INASGOC potential revenue
Methodology and Calculation Description Estimated Rate per m2 Rate per m2 Total Rate Total Rate
Area Size IDR/m2/day IDR/m2/day IDR IDR mil./day
• We understand from PMJ that INASGOC plans to compensate JI Expo for the m2 (Normal) (50% mil./day (50%
use of their venue to the sum of IDR5 bil. per day (IDR350 bil. for 70 days). Discount) (Normal) Discount)
• To determine the estimated revenue for JIEP to be compensated by Indoor Area 51,900 44,000 22,000 2,283 1,142
Main Tribune 1,815 80 40
INASGOC, we analysed the information which was obtained from PMJ (ie Field of Play 8,000 352 176
IDR5 bil./day) against the information we obtained from JI Expo. Warm Up Arena 6,400 282 141
Collecting Arena 1,500 66 33
• We contacted JI Expo and was provided with the following information: Trot Up Runway 150 7 3
Covered Training Arena 3,200 141 70
JI Expo Area Size Rate per m2 Rental Rate
Training Arena 1 4,800 211 106
m2 IDR/m2/day IDR mil. /day
Hall A 8,295 45,811 380 Lunging & Horse Walker 1,000 44 22
Quarantine Training Arena 1,200 53 26
Hall B (B1+B2) 3,994 47,571 190
Quarantine Stable 250 11 6
Hall B3 5,150 48,544 250 Horse Stable 16,253 715 358
Equine Clinic 327 14 7
Hall C (C1+C2) 5,832 32,579 190
Groom Dormitory 960 42 21
Hall C3 4,800 50,000 240 Storage & Utility Building 748 33 16
Equipment Shed 150 7 3
Hall D 4,752 52,609 250 PORDASI Office 75 3 2
Hall E 6,836 38,034 260 Public F&B 215 9 5
Security Guard Post 57 3 1
Total Indoor 39,659 44,378 1,760
Outdoor Area 168,100 28,000 40,600 4,707 2,353
Total Outdoor * 60,000 28,000 1,680 Field Area 151,100 4,231 2,115
Total Area 99,659 34,518 3,440 Parking Area 17,000 476 238
Potential Revenue from INASGOC 5,000 Total per Day 6,990 3,495
Total for 70 days 489,328 244,664
* JI Expo website indicated the total outdoor area specification is 43,500 m2. However, we
confirmed with JI Expo that the total outdoor area size is 60,000 m2.
Conclusion and Recommendation
• Based on the calculation in the adjacent table, the potential revenue
compensation could be IDR 7.0 bil./day or IDR 489 bil./70days for JIEP.
• If 50% discount is applied, the potential revenue is IDR 3.5 bil./day or IDR 245
Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 bil./70days. 45
Based on ICE’s rate, JIEP will be compensated with IDR 662 bil./70 days from
INASGOC potential revenue
Methodology and Calculation Description Estimated Rate per m2 Rate per m2 Total Rate Total Rate
• PMJ also informed that INASGOC is planning to use ICE as another venue. m2 (Normal) (50% mil./day (50%
Discount) (Normal) Discount)
• Based on information from ICE, there will be 7% inflation rate applied per
annum for the rental rate. As such, we used 2016 rental rate for ICE as the Indoor Area 51,900 59,535 29,767 3,090 1,545
assumption to calculate the potential revenue from INASGOC and applied the Field of Play 8,000 352 176
inflation rate to the 2016 rental rate. Warm Up Arena 6,400 282 141
• Since ICE does not have outdoor area, we assumed the rental outdoor rate is Trot Up Runway 150 7 3
63.6% (using JIExpo rates) lower from ICE’s indoor rate. Covered Training Arena 3,200 141 70
• ICE has 10 halls with area size of 5,000 m2 per hall. Training Arena 2 4,800 211 106
• We contacted ICE and was provided with the following information, which Lunging & Horse Walker 1,000 44 22
have been incorporated with the 7% inflation rate factor for 2018 rate: Quarantine Stable 250 11 6
Horse Stable 16,253 715 358
ICE BSD Area Size Rate per m2 Rental Rate
Total Indoor 50,000 59,535 2,977 Storage & Utility Building 748 33 16
Total Outdoor *- 37,886 1,488
PORDASI Office 75 3 2
Total Area 50,000 97,421 4,465 Public F&B 215 9 5
* Since there is no outdoor area, we assumed the outdoor rate is 63.6% from the indoor
rate (using the JI Expo’s rate reference). Outdoor Area 168,100 37,886 18,943 6,369 3,184
Field Area 151,100 5,752 2,862
Parking Area 17,000 644 322
Total per Day 9,458 4,729
Total for 70 days 662,092 331,046
Conclusion and Recommendation

• Based on the calculation in the adjacent table, the potential revenue
compensation could be IDR 9.5 bil./day or IDR 662 bil./70days for JIEP.
• If 50% discount is applied, the potential revenue is IDR 4.7 bil./day or IDR 331
Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 bil./70days. 46
Based on JCC’s rate, JIEP will be compensated with IDR 1,187 bil./70 days from
Methodology and Calculation JCC Senayan Area Size Rate per m2 Rental Rate
• PMJ also informed that INASGOC is planning to use JCC Senayan as another
Assembly Hall 1 1,305 94,943 150
venue, as a substitute for the ICE venue.
Assembly Hall 2 1,311 94,508 150
• According to representative from JCC, the rental rate for 2018 is not available
Assembly Hall 3 1,305 94,943 150
yet.
Plenary Hall 2,044 118,514 293
• Based on information from JCC, there will be 10% inflation rate applied per
Cendrawasih Room 1/1 2,152 98,559 257
annum for the rental rate. As such, we used 2016 rental rate for JCC as the
assumption to calculate the potential revenue from INASGOC and applied the Cendrawasih Room 1/2 1,054 102,277 130
inflation rate to the 2016 rental rate. Cendrawasih Room 1/3 703 103,556 88
• Since JCC does not have outdoor area, we assumed the rental outdoor rate is Cendrawasih Room 2/3 1,406 101,565 173
63.6% (using JIExpo rates) lower from JCC’s indoor rate. Nuri Room 1 182 88,462 19
• The JCC’s rental rate varies based on the usage of the hall. There are 2 rental Nuri Room 2 70 100,000 8
rates applied, specifically for exhibition and conventions / special event. JCC Maleo Room 77 100,000 9
imposes higher rate for the usage of conventions / special event compared to Murai Room 77 100,000 9
exhibition. The rental rate for conventions / special event is higher by 30-50%
Merak Room 1 294 102,381 36
compared to rental rate for exhibition.
Merak Room 2 294 102,381 36
• The Asian Games will be classified as a special event, hence we applied the
Merak Room 3 294 102,381 36
rental rate for the special event in JCC.
Kenari Room 77 98,182 9
• We contacted JCC and was provided with the following information in the
Kakatua Room 210 70,000 18
adjacent table, which have been incorporated with the 10% inflation rate factor
for 2018 rate. Summit Room 201 198,507 48
Total Indoor 13,000 124,757 1,622
Total Outdoor *- 62,378 811
Total Area 13,000 187,135 2,433
* Since there is no outdoor area, we assumed the outdoor rate is 63.6% from the indoor
rate (using the JI Expo’s rate reference).

Based on JCC’s rate, JIEP will be compensated with IDR 1,387 bil./70 days from
Description Estimated Rate per m2 Rate per m2 Total Rate Total Rate Conclusion and Recommendation
m2 (Normal) (50% mil./day (50% • Based on the calculation in the adjacent table, the potential revenue
Discount) (Normal) Discount) compensation could be IDR 19.8 bil./day or IDR 1,387 bil./70days for JIEP.
Indoor Area 51,900 124,757 62,378 6,475 3,237 • If 50% discount is applied, the potential revenue is IDR 9.9 bil./day or IDR 694
Field of Play 8,000 352 176 bil./70days.
Warm Up Arena 6,400 282 141
Trot Up Runway 150 7 3
Covered Training Arena 3,200 141 70
Lunging & Horse Walker 1,000 44 22
Quarantine Stable 250 11 6
Horse Stable 16,253 715 358
Storage & Utility Building 748 33 16
PORDASI Office 75 3 2
Public F&B 215 9 5
Outdoor Area 168,100 79,391 39,695 13,346 6,673
Field Area 151,100 11,996 5,998
Parking Area 17,000 1,350 675
Total per Day 19,820 9,910
Total for 70 days 1,387,429 693,715

JIEP is more comparable to JI Expo, as the rental rates has been determined
into indoor and outdoor area
Summary of Findings Conclusion and Recommendation

• Based on the calculation performed on the previous section, in the adjacent • JI Expo and ICE appear to be the closest comparators for JIEP for the indoor
table we summarised the reference for JIEP for potential revenue from area since they have similar rental floor area. Since ICE and JCC do not
INASGOC based on other venues which will be used for the 2018 Asian provide any outdoor area for rental, JIEP can refer to JI Expo as a proxy for
Games. both the indoor and outdoor area.
•Venue JI Expo ICE BSD JCC Senayan • For the purposes of the financial model, we have assumed that it will be the
Total Area 100,000 m2 50,000 m2 13,000 m2
lowest number using the JI Expo assumption (i.e. IDR 489 bil.) as the base
Indoor Area 40,000 m2 50,000 m2 13,000 m2 case.
Outdoor Area 60,000 m2 - -
Rental Rate per day
Indoor Area IDR 44,000/m2 IDR 59,535/m2 IDR 124,757/m2
Outdoor Area IDR 28,000/m2 * IDR 37,886/m2 * IDR 79,391/m2
JIEP potential revenue from INASGOC using the above rates on:
Indoor = 168,100m2
Outdoor = 51,900m2
Per Day IDR 6,990 mil. IDR 9,458 mil. IDR 19,820 mil.
Per 70 Days IDR 489,328 mil. IDR 662,092 mil. IDR 1,387,429 mil.
* Since there is no outdoor area, we assumed the outdoor rate is 63.6% from the indoor rate
(using the JI Expo’s rate reference)
• Based on the comparison in the table above, the lowest potential revenue is
derived from the reference of JI Expo and the highest potential revenue is
derived from the reference of JCC Senayan.
• Even though JCC has the smallest area size, the rental rate charged is the
highest among those 3 venues.

6.1.2 Equine Revenue (1/3)
Overview • Going forward, after the Games, PMJ plans to raise the boarding rate to a
level which is nearer that of the other venues shown in the adjacent table.
• The main revenue generator from the equestrian venue is equine activities.
The equine revenue will be commenced after the Asian Games, estimated in • As a benchmark, PMJ believes that they are able to charge at least the same
the last quarter of 2018. as Arthayasa’s. The reason is because of JIEP’s proximity to the city as well
as amenities and new stables.
• The equine activities are listed below: • We believe this is not unreasonable and can be charged at IDR 11.0
 Boarding (stable rent) mil./horse/month as the boarding rate (full-board) after the Games. This rate
 Riding lessons will be inflated by 7% p.a from the first to tenth year. After 10 years, the rate
 Pony rides will be inflated by 5% p.a. We assumed the inflation rate will decrease due to
 Tack shop the improvement in economic condition in Indonesia.
 Other equine activities (pony camp, tour & sightseeing and school • In the financial model, the initial available number stables for rent is 190. The
extracurricular activities) available stables in the first operational period is 184, reduced by the
occupancy of 3 horses and 3 ponies owned by JIEP.
Boarding (stable rent) • During the initial period, the management has assumed that the occupancy
rate of the stable rent is estimated at 40% p.a. The occupancy rate will
• The main revenue is generated from the boarding or stable rent for the increase annually by 10% and capped at 75% in the later years.
horses. Previously, PMJ charged IDR 660,000/horse/month for the stable
rent. This rate is a major discount to the rate charged by the following
equestrian venues in Indonesia. Riding Lessons
Equestrian Venue Boarding Rate per month
• Based on our analysis, the other main revenue for equestrian venues is the
Arthayasa Stables & Country Club IDR 11.9 mil./horse riding lessons. Riding lessons are provided for beginners to experts. There
Bali Equestrian Centre IDR 13.5 mil./horse are also riding lessons which could be for adults or kids with special needs.
Trijaya Equestrian Centre IDR 6.0 mil./horse
Adria Pratama Mulya IDR 4.5 mil./horse

Riding Lessons (continued) • We estimated the riding fee to be charged is IDR 300,000/lesson. The period
of the pony ride activity is approximately 45 mins to 1 hour per lesson.
• Based on our comparison analysis of other equestrian venues, the riding for
the disabled has been implemented in several equestrian venues located in • The estimated number of pony in the initial year is 2. The number will be
Indonesia and Malaysia, such as ASCC, APM, BKECR, STCESC and increased in the following years by a certain amount and will be capped at 3
PRTCEC. ponies. There will be 3 additional replacement ponies throughout the 20 years
period.
• We estimated the riding fee to be charged is IDR 500,000/lesson. The period
of the riding activity is approximately 45 mins to 1 hour per lesson. • We estimate the same number of pony rides per day as for horse riding
lessons, i.e. 2 lessons per day per pony.
• We estimate 2 horses in the initial year. The number of horses will be
increased in the following year by a certain amount and will be capped at 3
horses. There will be 3 additional replacement horses throughout the 20 years
Comparison between Riding Lesson (Horse Ride) and Pony Ride
period.
Remarks Key Factor Assumptions
• According to our discussion with representative from Arthayasa, the regular
visitation of customers for riding lessons is more on weekends than Horse Ride Pony Ride
weekdays. Therefore, we estimated a reasonable number of lessons is 2
A Number of horse / pony 3 horses 3 ponies
lessons per day per horse, for both riding lessons and riding for the disabled.
B Number of lesson per day 2 lessons 2 lessons
C Fee per lesson IDR 500,000 IDR 300,000

Pony Rides
D Inflation Rate
• Most equestrian venues offers the pony rides along with the horse riding < 10 Years 7% p.a.
lesson. The difference between the horse and pony is emphasized on the its > 10 Years 5% p.a.
height. Horse is an equine with minimum height of 56.8 inches, while pony
E = AxBxCxD Riding revenue per day IDR 2.0 mil. IDR 1.2 mil.
has height less than 56.8 inches. Based on that reason, this distinguishes the
target market for the ride. Pony ride is more suitable for beginner rider and
kid.

Tack Shop • In the financial model, the revenue generated from other equine revenue is
estimated at 5% of the total main equine revenues. The main equine
• Tack shop is the equestrian supply or merchandise store to provide the
revenues consist of boarding revenue, riding lessons and pony rides.
various needs for the horse and the rider. Tack shop will provide the following:
 Riding equipment and training aid (i.e. boots, riding apparel) • Pony Camp
 Stable equipment
Pony camp is a child activity which includes the riding lesson, stable
 Horse-care products (i.e. feed, saw dust)
management for the horse or pony (feeding, grooming, mucking out the
 Grooming supplies
stables).
 Merchandises
 Books, magazines and video • Photoshoot
• According to our comparison analysis, most of the equestrian venues has the We recommend JIEP to provide the photoshoot activity for the visitor for the
tack shop in conjunction with the equestrian facilities. pre-wedding event, advertisement as well as magazine. For the photoshoot
activity, it can be done near the lake in the field area along with the horse and
• In the financial model, the revenue generated from tack shop is estimated at
horse-drawn carriage provided by JIEP.
10% of the total main equine revenues. The main equine revenues consist of
boarding revenue, riding lessons and pony rides. • Tour and Sightseeing
We recommend PMJ to provide the tour and sightseeing activity, whereby the
visitor can experienced riding horse in the JIEP open space adjacent to the
Other Equine Revenues
lake.
• Based on our research from other equestrian venues, we recommend JIEP to
• Extracurricular Activity
offer other equine activities to support the main equine activities. For instance
PMJ can offer following activities; pony camp, photoshoot, tour and Sekolah Pelita Harapan has adopted the similar concept of establishing horse
sightseeing along the venue and extra curricular activity for the schools riding as one of the extracurricular activity. JIEP can offer to provide the
located within vicinity. extracurricular activity for the schools within vicinity (Pulomas and Kelapa
Gading area), specifically the Sevilla School, Global Sevilla Pulo Mas, SMAN
21, NJIS (North Jakarta International School) and Penabur International
School.

6.1.3 Non-Equine Revenue (1/7)
Overview • We assumed the mid-point rate for room rate in JIEP’s dormitory is IDR
300,000/night. To determine the room rate per night, we identified the room
• Based on our analysis, other equestrian venues provide non-equine activities
rate from the located in Kelapa Gading area. We picked the sample of 3-star
to support and integrate the equine activities. The non-equine revenue will be
to 4-star hotel in Kelapa Gading. Based on our research, the room rate per
generated after the Asian Games ended, estimated in the last quarter of 2018.
night in Kelapa Gading is ranged from IDR 350,000/night to IDR
1,300,000/night.
• The equine activities are listed below: • To calculate the revenue generated from the accommodation after the event,
 Accommodation we estimated the occupancy rate is 50% p.a
 Rentals (field, retail space, open area, meeting room and function hall)
 Parking lot • The adjacent table shows the revenue generated from the accommodation
 Other non-equine revenue (fishing, archery, advertisement, volleyball, etc.) per day.
Accommodation A Number of room 39 rooms
• To provide the accommodation for jockey and groomer during the Games, B Occupancy rate 50%
JIEP will build the dormitory within JIEP venue. C Room rate per night IDR 300,000
• Based on PMJ, the dormitory will be converted into hotel or public D Inflation Rate
accommodation after the Asian Games event. According to the latest < 10 Years 7% p.a.
technical meeting on 24 May 2016, there will be 2-storeys with total of 39 > 10 Years 5% p.a.
rooms for the dormitory. E = AxBxCxD Accommodation revenue per day IDR 9.5 mil.

Field Rental Retail Spaces Rental

• After the event, we recommend PMJ to utilize field by renting it. The rental • Based on the PMJ Master Plan, PMJ has 6 retail spaces with total of 447 m2
field can be utilized for outdoor wedding activity, social event and outdoor located in the level 1. The retail area will be rented on monthly or annual
concert. basis. The detail of the retail spaces are described in the adjacent table.
• The size of field to be rented will be determined based on the usable outdoor Description Area Size
area size. Usable outdoor area is measured based on the field size deducted
Retail 1 23.7 m2
by lake, building and structures). Based on PMJ’s master plan dated on 11
May 2016, we estimated the usable outdoor size is approximately 48,000 m2 Retail 2 23.7 m2
or 6x Field of Play size (6x100x80 m).
Retail 3 25.0 m2
• We obtained the reference rate from Gelora Bung Karno (“GBK”) to determine
Retail 4 25.0 m2
the rental rate applicable for outdoor area. We used GBK as our benchmark
for the outdoor rate, since GBK and JIEP have a similar characteristic and Retail 5 53.6 m2
resemblance to provide the grass-field for the field rental. The average Retail 6 (proposed as a mini-mart) 296.5 m2
outdoor rate charged for GBK is IDR 13,636/m2/day.
Total area of retail spaces ~ 447 m2
• By considering the landscape of the outdoor area and the size of JIEP, we
assumed only 30% (14,400 m2) of the field is rented from the total usable • Based on our research from Colliers and Cushman&Wakefield, the average
outdoor area. rental fee for retail area in East Jakarta is IDR 350,000/m2/month. In the
Remarks Key Factor Assumptions financial model, we incorporated the same rate for the rental fee.
A JIEP usable outdoor size 48,000 m2 • During the initial period, the utilization rate of the rental is estimated at 60%
B Outdoor rental rate IDR 13,636/m2/day
p.a. The utilization rate will increase annually by 20% and capped at 95% in
the later years.
C % of field rented 30%
D Inflation Rate
< 10 Years 7% p.a.
> 10 Years 5% p.a.
E = AxBxCxD Field rental revenue per event IDR 196.4 mil.
Retail Spaces Rental (continued) Multi-Purpose Rooms Rental

• See the adjacent table to analyse the revenue generated from the rental of • Based on the PMJ Master Plan, level 2 area will be made as multipurpose
retail area. and office rooms. We recommend PMJ to utilize the level 2 area to be
allocated for gym facilities. Hence, we incorporate the calculation for the
Remarks Key Factor Assumptions revenue generated from the level 2 rental.
A Retail spaces size 447 m2 • The size of the multipurpose rooms are estimated at 628 m2.
B Rental rate per month IDR 350,000/m2/month • We use same assumption of rental rate with the rental rate applied in level 1,
C Utilization rate 50% (initial year) particularly IDR 350,000/m2/month.
increased annually by 10%
up to 80% • We assume the utilization rate of the level 2 area is 80% p.a. throughout the
financial model. Since the level 2 is unable to be fully converted into gym
D Inflation Rate
area, because there also certain area needed for the access area.
< 10 Years 7% p.a.
> 10 Years 5% p.a. Remarks Key Factor Assumptions
Retail spaces rental revenue
E = AxBxCxD IDR 120.7 mil. A Multi-purpose rooms size 628 m2
per month
B Rental rate per month IDR 350,000/m2/mth
C Utilization rate 80%
D Inflation Rate
< 10 Years 7% p.a.
> 10 Years 5% p.a.
Multi-purpose rooms rental

E = AxBxCxD IDR 226.1 mil.
revenue per month

Meeting Rooms Rental Function Room Rental

• According to the latest masterplan layout from PDW architects (Design • Level 4 of the tribune will be established as a function hall with the estimated
Consultant for PMJ), PMJ has 10 meeting rooms in level 3 with estimated total area of 1,034 m2. The total 1,034 m2 consists of function hall and pre-
total size of 669 m2. The meeting room will be rented on daily usage basis. function hall (exclude dining area, VIP room, storage, lift and toilet).
• During the Games, some of the meeting rooms will be used for press • To determine the rental fee for the function hall, we used the average indoor
conference rooms, broadcast room, VIP room, reporter room, appeal room, rental fee from the JI Expo of IDR 44,400/m2/event, as applied in the
announcer box and judges room. assumption of level 3 rental. The function room will be rented on daily usage
basis or per-day event.
• For meeting rooms, we quoted the rental rate based on JI Expo indoor rate. JI
Expo has several halls with different size and rate within the its venue. To Remarks Key Factor Assumptions
arrive at the certain indoor rate for JI Expo, we calculate the average of indoor
A Function room size 1,034 m2
area for JI Expo (see section 6.1.1 Potential Revenue from INASGOC). We
obtain the average price of indoor rate is IDR 44,400/m2/day. B Rental rate per event IDR 44,400/m2/event
• We assumed the utilization rate of the meeting room is 50% p.a. throughout C Inflation Rate
the 20 years of the operational period in the financial model. Partial utilization < 10 Years 7% p.a.
> 10 Years 5% p.a.
rate assumption of 50% is applied, since we are unable to justify the market
needs for the meeting room located in the JIEP area. D = AxBxC Function room revenue per event IDR 45.9 mil.
A Meeting rooms size 669 m2
B Rental rate per day IDR 44,400/m2/day
C Utilization rate 50%
D Inflation Rate
< 10 Years 7% p.a.
> 10 Years 5% p.a.
E = AxBxCxD Meeting rooms revenue per day IDR 14.9 mil.

Parking Lot Other Non-Equine Revenues (Non-Food & Beverage Related)

• According to PMJ, they intend to generate revenue from the parking lot • Based on our research from other equestrian venues, we noted the other
located in the west area of the JIEP venue. venues offer variety of non-equine activities to be integrated with the main
equine facilities.
• According to PMJ Master Plan dated on 11 May 2016, there are 327 slots
available for carpark slot (183 slots for VIP parking area and 144 slots for • There is many possibilities of revenues generated from the facilities, such as
public parking). fishing, archery, BMX, volleyball, camping, etc.
• The potential occupancy rate of the carpark is 50% p.a. from total available • To determine the amount for the other non-equine revenues, we assumed the
carpark. We assumed the average parking hours per car is 3 hours, with the amount is derived from 10% of total non-equine revenues.
parking rate per hour is IDR 5,000. • There is also an opportunity for the revenue generated from the sponsorship
Remarks Key Factor Assumptions for advertisement, membership programme, bazaar and concert event in
JIEP. We did not included it in the calculation due to the lack of reliable
A Carpark slot 327 slots information for each revenue streams at this stage.
B Occupancy rate of parking lot 50% • JIEP could offers the membership programme for customers, provided that
C Parking hour per car 3 hours/car there will be sufficient and variety of facilities within the JIEP (i.e. swimming
pool, sport facilities, fitness center, golf and driving range, etc.).
D Rate per hour IDR 5,000/hour
E Inflation Rate
< 10 Years 7% p.a.
> 10 Years 5% p.a.
F = AxBxCxDxE Parking lot revenue per day IDR 2.5 mil.

Other Non-Equine Revenues (Food & Beverage Related) Other Non-Equine Revenues (Food & Beverage Related) (continued)
• We noticed that the provision of food & beverage (F&B) is an integral part of a Source of information on refurbishment costs
sports venue. During the discussion with PMJ and Jakpro, we were asked to
explore the possibility of participating in the provision of F&B in addition to the Selangor Turf Club (continued)
current assumption of the straightforward floorspace rental to third party - The Food Court, a 900 seating capacity food court that serves an
operators. extensive variety of local food and beverages.
- Other General Catering In The Club (VIP stands and functions, Jockeys
• We approached our analysis by identifying the business model with regards
and trainers' lounge, Members' enclosure)
to the various F&B outlets at selected equestrian and turf clubs in the other 1 • Selangor Turf Club (STC) started a lounge, bar & kitchen in 2013 called
countries. The clubs selected were based on the available information which
Hest in collaboration with Carlsberg. It is located on Level 1 of STC and
was obtained from the selected club’s website and other related websites. regarded as the first and only racetrack front bar in Malaysia has a seating
• The following table summarises our findings: capacity for 250 persons.
• Our research was unable to confirm the commercial arrangements between
Source of information on refurbishment costs
the venue and the F&B provider.
Selangor Turf Club
Bukit Kiara Equestrian Club
• The restaurants at the Selangor Turf Club (STC) is operated by a F&B
• At the Bukit Kiara Equestrian Club in Kuala Lumpur, the Chinese restaurant
operator called Guardian Catering and Restaurants. They operate the
called Oriental Pearl is operated by the Tai Thong Group. The Tai Thong
following restaurants at the STC:
group operates 13 Chinese restaurants across Malaysia and is owned by
- The Winners Court Chinese Restaurant, a 300 seating capacity Berjaya Corporation Berhad. Berjaya Corporation is also the owner of the
restaurant serving pork-free Cantonese and local cuisine. Bukit Kiara Equestrian Club.
1 - Winners Palace Chinese Restaurant, a 480 seating Chinese Restaurant • The remaining 4 F&B outlets and the banquet facilities are outsourced by
2
(non-halal) serving modern Chinese cuisine the club to a separate company called Bukit Kiara Gourmet Sdn Bhd. They
- The Trackview Restaurant, a 400 seating capacity restaurant overlooking provide banquet facilities for their guests ranging from 20-pax private party
the Selangor Turf Club racetrack that serves local and western a la carte to 200-guests annual dinner at the various locations at the club such as the
dishes. halls at the main club house, sports complex, poolside, indoor arena, grass
- The Winners Circle, a 300 seating capacity self-service restaurant serving paddock, polo field and the polo pavilion grand stand.
light local and halal cuisine. • Our research was unable to confirm the commercial arrangements between
the venue and the F&B provider.
Other Non-Equine Revenues (Food & Beverage Related) (continued)
Source of information on refurbishment costs • Most of all, it’s a built-in incentive for the landlord to make the mall successful.
In turn, the landlord can secure tenants during periods when business is slow.
Singapore Turf Club
• The so-called revenue-sharing model is common in developed countries
• At the Singapore Turf Club (SGTC), the F&B is outsourced to Chinese
restaurant operators Long Jiang Pte Ltd. where quality financials are available for determining the amount shared. The
key risk in this model is that the tenant may not want to disclose the actual
• Long Jiang operates their own restaurant at the SGTC as well as the
Owners’ Lounge, which is equipped with a full-service bar and dining profitability of its business to avoid having to pay a higher rental.
3
facilities serving western and local food and has a spectacular view of the • Nevertheless, we believe that this revenue-sharing model can be introduced
Racecourse. to potential tenants and that the commercial arrangement and common
• We also discovered that SGTC is also a registered caterer with the ground can be met between PMJ and the potential tenant.
government. We are unable to determine whether SGTC or Long Jiang
operates the F&B for their function rooms/hall and corporate boxes. • The benefit of a revenue-sharing model depends on the location of the space
and a tenant’s confidence at the location. It might be advantageous, for
• Our research was unable to confirm the commercial arrangements between
the venue and the F&B provider. example, in a small, relatively untested market.
• From the clubs sampled above, we can summarise that owners typically
outsource the F&B role to a third party operator who may have the economies
of scale and experience to ensure the viability of the provision of such
service.
• It is unclear whether the club owners obtain a share of the tenant’s
revenue/profits.
• We recognize that F&B outlets / retailers are increasingly opting to
supplement a lower lease rental by paying a percentage of their store
revenues to landlords instead of a flat lease rate. It’s a way of minimizing risk,
and provides F&B outlets a cushion if the venue fails to attract customers.

With total of IDR 2,223 bil. generated over 20 years, 41% is a resultant from
equine revenue
Potential Revenue from INASGOC Revenue Over 20 Years IDR mil. %

• Based on the calculation performed on section 5.1.1 of this report, we INASGOC 489.3 22.0%
estimated the maximum amount compensated by INASGOC for the utilization
Equine 918.3 41.3%
of JIEP venue is IDR 489 bil. Potential revenue from INASGOC contributes
22% of the total revenues.
Boarding 741.1 33.3%
Tack Shop 79.9 3.6%
Equine Revenue
Riding Lessons 35.9 1.6%
• Based on the financial model, the revenue generated the from equine
Pony Rides 21.5 1.0%
throughout 20 years period is approximately IDR 918 bil. or 41% of total
revenues. Other Revenues 39.9 1.8%
Non-Equine 815.8 36.7%
Non-Equine Revenue
Meeting Rooms Rental 225.6 10.1%
• Over the 20 years period, non-equine revenue is estimated to generate IDR
816 bil. or 37% of total revenues.
Field Rental 196.1 8.8%
Accommodation 85.4 3.8%
Summary of Revenue Streams
IDR bil. Multi-Purpose Rooms Rental 87.8 3.9%
500 Retail Spaces Rental 79.2 3.6%
IDR 489 bil.
400 Other Non-Equine Revenues 74.2 3.3%
Function Hall Rental 38.2 1.7%
300
Parking Lot 29.3 1.3%
200
Total Revenues Over 20 Years 2,223.5 100%
100
-
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
Equine Non-Equine INASGOC

Overview
Overview 6.2.2 Fixed Cost

• The operating costs composition for financial model is differentiated into • The components of the fixed cost for the financial model are explained in the
variable and fixed costs. The variable cost is inter-related with the revenue following manner:
generated. Fixed cost is remain stable despite the conversion of the revenue  Electricity
generated.  Water
 Staff
6.2.1 Variable Cost  Insurance
• The variable cost is classified as equine and non-equine costs, as described  Marketing
below:  SGA
 Equine Cost  Maintenance
 Horse-Related Cost  Miscellaneous
 Tack Shop Cost  Trial Event
 Non-Equine Cost  Team Preparation and Training
 Parking Lot Cost
6.2.3 Other Cost
• The other costs incurred for the project are summarized below:
 Corporate Income Tax
 Land Tax

6.2.1 Variable Cost (1/2)
Variable Cost • Based on discussion with Mr. Rafiq (owner of Arthayasa Stables & Country
• The variable cost to operate the JIEP venue is derived from the equine and Club), the farrier (horse-shoeing service) cost for the horse is not included in
non-equine costs. The variable cost will be incurred after the Games, in the cost of the grooming for the boarding horse.
conjunction with the revenue generated estimated in the last quarter of 2018. • The horse owners have to pay additional fee for the farrier service for each
horse. According to Mr. Rafiq, the total farrier cost per horse is estimated at
IDR 910,000/horse/month.
• The allocation of the variable costs are:
• Based on table shown below, we assumed that the cost for JIEP’s own horse
 Equine Cost
will be higher by IDR 1 mil./horse compared to cost for boarding horse.
• Horse-Related Cost
• Tack Shop Cost Cost Component Per Horse Boarding Horse Privately Owned
 Non-Equine Cost IDR/month Horse
• Parking Lot Cost IDR/month
Feeding Cost 2,000,000 2,000,000
 Equine Bedding Cost 500,000 500,000
Horse-Related Cost Grooming Cost 500,000 1,500,000

• Equine cost consist of the feeding, bedding, grooming and other costs related Other Cost 500,000 500,000
to upkeep the horse. The key factors determining the equine cost are the cost
Total Equine Cost Per Horse 3,500,000 4,500,000
incurred per horse and number of horses available.
• We noted that the cost to upkeep boarding horses and privately owned horse • The equine cost for the boarding cost is consistent with the number of horses
by JIEP is different. The cost incurred for privately owned horse is relatively occupied in the boarding stable. Based on the section 6.1.2 of this report for
higher than cost incurred for boarding horse. Because JIEP will borne all costs boarding revenue, the number of horse occupies the stable rent will increase
related to the maintenance of the horse itself. annually.

6.2.1 Variable Cost (2/2)
Horse-Related Cost (continued) Tack Shop Cost

• The total stables available for rent is 190 stables and it will be deducted by the • In accordance with the revenue generated from tack shop, there is
JIEP’s own usage for privately owned horses and ponies. operational cost allocated to run the tack shop.
• During the initial period, the occupancy rate of the stable rent is estimated at • We assumed the tack shop cost per year is 70% of the tack shop revenue
40% p.a. The occupancy rate will increase annually by 10% and capped at generated. The tack shop cost is allocated for the stock and supplies, import
75% in the later years. cost, and inventory cost. Based on discussion with Mr. Rafiq, the items being
sold in tack shop are mostly being imported to Jakarta.
• Whereby the horse acquired by JIEP in the initial operational year is 2 horses
and 2 ponies. There will be additional replacement for horse and pony along • Basically, the margin from the tack shop is 30% of the total tack shop
the year with total of 3 horses and 3 ponies throughout 20 years period. revenue.
• To derive with the equine cost, cost incurred per horse will be multiplied by • There will be 7% inflation rate factored in the cost incurred during 1st to 10th
number of horse occupies the stable (see adjacent table). year and 5% inflation rate in the 11th year to following years.

IDR 3.5  Non-Equine
A Cost incurred for boarding horse
mil./horse/month Parking Lot Cost
B Number of boarding horse 93 horses (initial year)
• The cost incurred for parking lot is intended for the equipment, system and
IDR 4.5 the operational parking cost. We estimated the cost for parking lot at 20% of
C Cost incurred for own horse
mil./horse/month total parking lot revenue per annum.
D Number of own horse and pony 4 (initial year) • There will be 7% inflation rate factored in the cost incurred during 1st to 10th
increased gradually up
to 12 year and 5% inflation rate in the 11th year to following years.
E = AxB+CxD Total equine cost per month IDR 343.5 mil./month
• The rate will be inflated by 7% p.a for first until tenth year. After 10 years, the
rate will be inflated by 5% p.a.

6.2.2 Fixed Cost (1/4)
Fixed Cost • Based on our research from PLN, we noted the time range between peak
hour and outside peak hour as follow:
• The fixed cost for the JIEP is incurred since the construction period of the
venue. The fixed cost will be inflated by 7% p.a for 1st until 10th year. After 10 • Outside peak hour (“LWBP” – Luar Waktu Beban Puncak): during 22.01 to
years, the rate will be inflated by 5% p.a. 17.59
• Peak hour (“WBP” – Waktu Beban Puncak): during 18.00 to 22.00
• We assumed the electricity usage per day for JIEP is 12 hours/day based on
• The allocation of the fixed costs are: the classification below:
 Electricity • Usage outside peak hour: 8 hours (22.01 to 17.59)
 Water • Usage during peak hour: 4 hours (18.00 to 22.00)
 Staff
• Based on our research from PLN, the usage fee will be based on rate for
 Insurance
Business Type – B3; in which the rate for peak hour is described below:
 Marketing
• Outside peak hour: IDR 959.84/kWh/hour
 SGA
• Peak hour: IDR 1,439.76/kWh/hour
 Maintenance To obtain the peak hour rate, the K factor of 1.5 is multiplied by peak hour
 Miscellaneous rate of IDR 959.84/kWh/hour
 Trial Event
 Team Preparation and Training • To derive at the average electricity consumption of 16,223 kWh/day, we
multiplied the electricity load by load factor of 1 and multiplied by electricity
usage per day by 12 hours.
Electricity Cost
• The electricity cost will be obtained from average consumption per day
• Based on the estimation of electricity load received from PT Skemanusa multiplied by usage hours and rate per hour, see the calculation table in the
Consultama Teknik (Mechanical & Engineering Consultant for PMJ), we noted next page.
that the normal electricity usage for JIEP is estimated at 1,629 kVa/day (net of
power factor of 0.8). We applied the diversity factor of 0.83x to the normal
usage of 1,629 kVA/day, to derive at the electricity load amount of 1,352
kW/day.

Electricity Cost (continued) Water Cost
Remarks Description Unit Amount • In the financial model, water cost will be calculated based on percentage of
electricity cost. We estimated the water cost percentage is 25% p.a. from the
A Normal usage (net power factor) kVa/day 1,629 electricity cost.
B Diversity factor x 0.83 • However, the percentage is relatively small since JIEP will have its own water
C = AxB Electricity load kW/day 1,352 treatment plan. Hence the water supply will be mostly self fulfilled.
D Load factor x 1
E Estimated electricity usage per day hour/day Staff Cost

 Outside peak hour 8
• Based on our research from other equestrian venues, the staffs are mainly
 During peak hour 4
allocated into 2 departments, specifically the equestrian department and
F = CxDxE Average consumption per day kWh 16,233 general department.
Electricity rate IDR/kWh • Equestrian staff will include equestrian specialist, veterinarian and nurse,
G  Outside peak hour 959.84
 During peak hour 1,439.76 trainer as well as instructor and groomer. Whereby the general staff will
include planning and operation, sales and marketing, accounting and finance,
Electricity cost
business development and other supporting staff (cleaner, gardener, and
H = ExFxG/F  Outside peak hour IDR mil./day 10.4
 During peak hour 7.8 security).
Total electricity cost IDR mil./day 18.2 • We assumed the annual staff allowance cost is 0.5 times of total annual
salary.

Staff Cost (continued) Insurance Cost

• Based on our discussion with PMJ, we have projected the full-time staff cost • The total cost for insurance is calculated as a percentage of total project cost.
into the adjacent table: The insurance will only cover the building and structures within the venue.
Based on our research, the annual insurance charge will be estimated at
Position Number Salary Annual
of Full- IDR mil./ Salary
0.2% of the total project cost (IDR 345 bil.).
Time month/staff IDR mil./year
Staff
Marketing Cost
Equestrian Department
Equestrian Specialist 1 30 360 • In the financial model, the total marketing cost is estimated at 2% of the total
main equine revenues. Main equine revenues are boarding, riding lessons
Veterinarian 1 15 180
and pony ride.
Senior Trainer / Instructor 1 10 120
Trainer / Instructor / Nurse 7 8 672
SGA Cost
Groomer 10 3.1 372
• We assumed the SGA cost is 0.5% of total revenues. We excluded the
General Department
potential revenue from INASGOC from the total revenues calculation for SGA
General Manager 1 30 360 cost.
Senior Manager 4 16.5 792
Manager 2 13.5 324
Maintenance Cost
SGA Staff 5 7 420
• Maintenance cost is estimated at 1% of the total project cost (IDR 345 bil.).
Cleaning Service / Gardener / Security 20 3.1 744
Total 52 4,344
Miscellaneous Cost
• In the financial model, the miscellaneous cost is estimated at 5% of the
total fixed cost (cost of electricity, water, staff, insurance, marketing, SGA,
Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 and maintenance). 66
Trial Event Cost

• There will be trial event held in the venue before the Games. The trial event is
intended to check the readiness of the venue.
• Based on the Master Schedule from PMJ for the development of the venue,
the trial event period is estimated to be 12 months or 1 year.
• We assumed the trial event cost will consist of electricity cost, water cost and
staff cost. For trial event cost, we estimated the cost will be 60% from the
individual cost item (i.e. electricity, water, staff and allowance cost).
Team Preparation and Training

• PMJ needs to prepare and train the team for the Games and establishment of
equestrian venue. The team preparation and training needs for the equestrian
department needs to be performed along with the construction of the JIEP
venue.
• We estimated the team preparation and training cost is 80% of the annual
staff cost. The annual allowance cost has been included in the total annual
staff cost.

6.2.3 Other Cost
Corporate Income Tax PPh Final Article 4 Clause 2

• According to the regulation applied in Indonesia, the tax rate applied for the • PPh final article 4 clause 2 will be imposed on the revenue generated from
corporate income tax is a flat rate of 25%. the rental land and/or building.
• The flat rate of 25% will be charged to the net taxable income (earnings • The INASGOC revenue will be received by PMJ as a host venue for the
before tax deducted by additional tax losses and utilized tax losses). equestrian sport during the Games. Therefore, the revenue from the
• Based on the tax regulation, the tax loss generated can be carried forward to INASGOC will be subjected to PPh final.
the next 5 years.
• The rate for PPh final is 10% from rental revenue generated.
• Based on the potential revenue from INASGOC of IDR 489 bil., PMJ will have
Land Tax to pay PPh final of IDR 48.9 bil.
• We understand from management of PMJ, the annual land tax charged to
PMJ is estimated at IDR 4 bil./year.
• There will be 7% inflation rate factored in the land tax incurred during 1st to
10th year after the operational period and 5% inflation rate in the 11th year to
following years.
• Based on latest discussion on 18 May 2016 with management of PMJ, PMJ
received the letter from Indonesian Tax Authorities (Dinas Pajak) related to
the land tax deduction by 50% per annum.
• The tax deduction will be given to PMJ per year basis. On yearly basis, PMJ
needs to apply for the tax deduction to the Indonesian Tax Authorities.
• In the financial model, we applied the conservatism method. Whereby we did
not deduct the land tax by 50%, for the precaution if PMJ is not able to get the
land tax deduction.

Horse-related cost, electricity, staff, maintenance and tack shop cost constitute
85% of the total operating cost
• The table below represents the composition of operating cost during 20 years
period from the construction to the operational period.
• The average percentage of total opex to total revenues is 54% throughout the
20 years period.
Operating Cost Over 20 Years IDR bil. %
Variable Costs 319.8 26.7%

Horse-Related Cost 258.1 21.5%
Tack Shop 55.9 4.7%
Parking Lot 5.9 0.5%
Fixed Costs 879.7 73.3%
Electricity 277.8 23.2%
Staff 276.8 23.1%
Maintenance 146.5 12.2%
Water 69.4 5.8%
Miscellaneous 41.2 3.4%
Insurance 29.3 2.4%
Marketing 16.0 1.3%
SGA 8.7 0.7%
Trial Event 8.8 0.7%
Team Preparation and Training 5.2 0.4%
Total Operating Costs 1,199.5 100%

6.3 Capital Cost Composition
Overview
Overview
The capital cost is required to construct and to refurbish the JIEP venue prior
and after the Games.
6.3.1 Venue
• The classification of the capital cost for venue, as follows:
 Project Cost
 Refurbishment Cost
6.3.2 Equine
• The classification of the capital cost for equine, as follows:
 Horse and Pony Cost
 Replacement for Horse and Pony

6.3.1 Venue (1/3)
 Venue Refurbishment Cost

Project Cost • To upkeep and maintain the venue, PMJ has to set aside the cost for
refurbishment. To estimate the refurbishment cost, we referred to the
• The project cost is the costs required to set up the JIEP venue.
following information sources:
• We received the estimated project cost named Estimated Block Plan Rev.2
dated on 05 April 2016 from PMJ. According to the information received, we Source of information on refurbishment costs
noted the total project costs for JIEP venue is estimated at IDR 345 bil.
Source: Life Cycle Cost Guidelines for Sports and Recreation
• Based on the project cost from PMJ, the total cost is segregated based Facilities, Department of Sports and Recreation, Government of
following categories of asset below: Western Australia, 2005
 Grading • The aim of the guide is to reinforce the concept of whole of life costs to
deliver better project decisions.
 Landscape • The lifecycle cost analysis model they have prepared considers 3
 Building, facilities and external work scenarios:
 Arena • Base model of the initial capex having a refurbishment of 25% at year 10,
1
 Equipment for competition i.e. 2.5% p.a.
• 10% increase in base initial capex and the refurbishment of 25% at year
• To determine the depreciation rates for the asset above, we adopted the 15, i.e. 1.67% p.a.
regulation from the Minister of Finance (No. 96/PMK.03/2009), as following: • 10% reduction in base initial capex and a refurbishment of 25% in year 7
and then year 17; i.e. 3.5% p.a. for first 7 years and then 2.5% p.a. for the
Description Tariff p.a. subsequent years, averaging 2.875% p.a.
• Annual maintenance cost of 2.2% p.a. of base initial capex for all
Grading Categorized as land, not depreciated scenarios
Landscape 6.25% Source: Julian Hill, Technical Adviser, Deloitte Indonesia

• Active in the equestrian community in Australia
2
Building, facilities and external work 5.00% • The rule of thumb that he is aware of for maintenance is three times the
initial cost over 30 years, ie 10% p.a.
Arena 5.00%
Equipment for competition 12.50%

6.3.1 Venue (2/3)
Refurbishment Cost (continued) Refurbishment Cost (continued)

• To upkeep and maintain the venue, PMJ has to set aside the cost for
Source of information on refurbishment costs
refurbishment.
Source: Sport England (previously known as the English Sport
Source of information on refurbishment costs Council), Facilities and Planning Guidelines, 2012 (continued)
Source: Sport England (previously known as the English Sport Sinking Mainte-
Council), Facilities and Planning Guidelines, 2012 Facility Type/Details
Fund (%) nance (%)
• Provide design and cost advice to help promoters to build high-quality and
3 Multi-Use Sports Halls 0.5 1.0
long-lasting sports facilities.
• They have provided the typical annual allowances expressed as a Community Swimming Pools 0.3 1.0
percentage of the Overall Estimated Project Cost per annum based on Changing Rooms/Club House 0.3 – 0.5 0.6 – 0.8
their 25 year model. The assumptions provided for Life-cycle are
separated into i) Sinking Fund and ii) Maintenance. Natural Grass Surfaces 4.0 – 4.9 15.3 – 17,5
• Sinking fund covers major replacement costs. They cover the following: Artificial Turf Surfaces 2.6 – 3.2 0.4 – 0.6
- Scheduled replacement of major systems and components, i.e.
3
upgrades/replacement
- Scheduled refurbishment and adaptations, including replacement of
• Based on the discussion with the PMJ management, we differentiated the
sports specific equipment, re-sealing / re-lining of sports flooring,
replacing carpets and signage, replacement of external seating and assumption made for the refurbishment cost into following manner:
fittings.
• Maintenance covers the following: Description Assumption Comments
- Day to day repairs and planned preventative maintenance costs for
servicing and maintaining mechanical and electrical plant and systems • Refurbish cost is • To use assumption from Sports
in accordance with recommended standards/frequencies and allocated annually to England to reflect the assumptions
Building,
statutory/mandatory inspections smoothen out the range for “Multi-Use Sports Halls”
facilities and
cash flows and “Changing Room / Clubhouse”
external work
• 0.5% p.a. of original • We have already assumed
cost Maintenance of 1%.

6.3.1 Venue (3/3)
Refurbishment Cost (continued)

• Based on the discussion with the PMJ management, we differentiated the
assumption made for the refurbishment cost into following manner:
Description Assumption Comments
• Refurbish cost is • To use assumption from Sports

allocated annually to England to reflect the assumptions
Equipment for smoothen out the range for “Multi-Use Sports Halls”
competition cash flows. • We have already assumed
• 0.5% p.a. of original Maintenance of 1%.
cost
• Refurbish cost is • Research have indicated that
allocated annually to footing is changed once every 5-10
smoothen out the years.
cash flows. • We have already assumed
• 2.5% p.a. of original Maintenance of 1% of capex so we
Arena cost as assumed have enough buffer
that 50% of original
cost is used for
changing the footing
and it is changed
once every 10 years

6.3.2 Equine
 Equine Replacement Cost for Horse and Pony

Horse & Pony Cost • The replacement cost for horse and pony is provided every 10 years after the
acquirement of horse and pony.
• Horse and pony will be acquired for the operational period once the Games
has ended. The total number of horses and ponies acquired after the Games • The total replacement for horse and pony are 6 horses and 6 ponies.
are 6 horses and 6 ponies.
• The cost will be inflated by 7% p.a for 1st until 10th year. After 10 years, the
• Based on discussion with Mr. Rafiq, the imported horse price is ranged from cost will be inflated by 5% p.a.
EUR 12,500 to 35,000 per horse. To incorporate the horse price in the
financial model, we estimated the mid-point price at EUR 20,000/horse.
• According to discussion with Ms. Melisa A. Lynton-Lobato, the imported pony
price is estimated at AUD 20,000/horse (equivalent to EUR 14,000/horse).
• We assumed the estimated exchange rate is IDR 15,000/EUR.
• Custom duty and transport cost for horse and pony are estimated at 60% of
horse and pony price.
• The cost will be inflated by 7% p.a for 1st until 10th year. After 10 years, the
cost will be inflated by 5% p.a.

6.4 Cash Flow Projections
Project IRR of JIEP venue is estimated to be 20.6% (with INASGOC at IDR 489
bil.) and negative 3.3% (without INASGOC)
IDR billion
Project Cash Flow with Project IRR of 21.3%
500
INASGOC - IDR 489 bil.

450
400
350
300
250
Equity
200
150
Revenue
100
Capex
50 Opex
Tax
-
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
Project
Opex Tax Capex Equity Revenue
Year

With INASGOC of IDR 489 bil., the capital injection of IDR 365 bil. is required
and the payback is 3 years …
Project Equine
201601013 Equine FM 1.0.xlsx
Tables for Report
All Figures in IDR mil.

Total 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 31-Dec-22 31-Dec-23 31-Dec-24 31-Dec-25 31-Dec-26 31-Dec-27 31-Dec-28 31-Dec-29 31-Dec-30 31-Dec-31 31-Dec-32 31-Dec-33 31-Dec-34 31-Dec-35 31-Dec-36 31-Dec-37
Cash Flow
Revenue
INASGOC 489,328 - - 489,328 - - - - - - - - - - - - - - - - - - -
Equine 918,307 - - 3,112 19,056 23,972 29,482 33,824 36,191 38,725 41,435 43,507 45,683 47,967 50,365 52,883 55,528 58,304 61,219 64,280 67,494 70,869 74,412
Non-Equine 815,822 - - 5,392 23,402 25,388 27,538 29,465 31,528 33,735 36,096 37,901 39,796 41,786 43,875 46,069 48,373 50,791 53,331 55,997 58,797 61,737 64,824
Operating Costs
Variable Costs
Horse-Related Cost (258,053) - - (951) (5,130) (6,481) (7,995) (9,184) (9,827) (10,515) (11,251) (11,814) (12,405) (13,714) (14,400) (15,120) (15,876) (16,670) (17,503) (18,379) (19,298) (20,262) (21,276)
Tack Shop (55,897) - - (189) (1,160) (1,459) (1,795) (2,059) (2,203) (2,357) (2,522) (2,648) (2,781) (2,920) (3,066) (3,219) (3,380) (3,549) (3,726) (3,913) (4,108) (4,314) (4,529)
Parking Lot (5,861) - - (40) (173) (185) (198) (211) (226) (242) (259) (272) (285) (300) (315) (330) (347) (364) (383) (402) (422) (443) (465)
Fixed Costs
Electricity (277,780) - - (7,488) (8,012) (8,573) (9,173) (9,815) (10,502) (11,237) (12,024) (12,625) (13,256) (13,919) (14,615) (15,346) (16,113) (16,919) (17,765) (18,653) (19,586) (20,565) (21,593)
Water (69,445) - - (1,872) (2,003) (2,143) (2,293) (2,454) (2,626) (2,809) (3,006) (3,156) (3,314) (3,480) (3,654) (3,836) (4,028) (4,230) (4,441) (4,663) (4,896) (5,141) (5,398)
Staff (276,751) - - (7,460) (7,982) (8,541) (9,139) (9,779) (10,463) (11,196) (11,979) (12,578) (13,207) (13,868) (14,561) (15,289) (16,054) (16,856) (17,699) (18,584) (19,513) (20,489) (21,513)
Insurance (29,307) - - (790) (845) (904) (968) (1,036) (1,108) (1,186) (1,269) (1,332) (1,399) (1,469) (1,542) (1,619) (1,700) (1,785) (1,874) (1,968) (2,066) (2,170) (2,278)
Marketing (15,971) - - (54) (331) (417) (513) (588) (629) (673) (721) (757) (794) (834) (876) (920) (966) (1,014) (1,065) (1,118) (1,174) (1,232) (1,294)
SGA (8,671) - - (43) (212) (247) (285) (316) (339) (362) (388) (407) (427) (449) (471) (495) (520) (545) (573) (601) (631) (663) (696)
Maintenance (146,533) - - (3,950) (4,226) (4,522) (4,839) (5,178) (5,540) (5,928) (6,343) (6,660) (6,993) (7,343) (7,710) (8,095) (8,500) (8,925) (9,371) (9,840) (10,332) (10,848) (11,391)
Miscellaneous (41,223) - - (1,083) (1,181) (1,267) (1,360) (1,458) (1,560) (1,670) (1,786) (1,876) (1,970) (2,068) (2,171) (2,280) (2,394) (2,514) (2,639) (2,771) (2,910) (3,055) (3,208)
Trial Event (8,445) - (2,123) (6,323) - - - - - - - - - - - - - - - - - - -
Team Preparation and Training (10,426) (3,041) (5,213) (2,172) - - - - - - - - - - - - - - - - - - -
Movements in Accounts Receivables (11,444) - - (40,918) 37,428 (567) (630) (515) (364) (390) (417) (319) (335) (351) (369) (387) (407) (427) (448) (471) (494) (519) (545)
Movements in Accounts Payables 7,697 250 353 2,061 (95) 286 314 289 242 259 277 212 222 290 248 260 273 287 302 317 332 349 367
Land Tax (196,023) (4,000) (4,280) (4,580) (4,900) (5,243) (5,610) (6,003) (6,423) (6,873) (7,354) (7,869) (8,419) (9,009) (9,639) (10,314) (11,036) (11,809) (12,635) (13,520) (14,466) (15,479) (16,562)
Tax (67,015) - - - - - - - - (1,692) (2,386) (2,769) (3,141) (3,164) (3,531) (3,917) (4,322) (4,747) (5,719) (6,188) (6,680) (7,360) (11,398)
Tax on Rental (PPh 4 ayat 2) (48,933) - - (48,933) - - - - - - - - - - - - - - - - - - -
Net Operating Cash Flow 703,377 (6,791) (11,263) 373,048 43,634 9,096 12,537 14,982 16,150 15,589 16,105 16,539 16,975 17,156 17,568 18,045 18,531 19,028 19,009 19,524 20,047 20,414 17,455
Project Cost (345,006) (100,627) (172,503) (71,876) - - - - - - - - - - - - - - - - - - -

Refurbishment (46,582) - - (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329)
Horse & Pony (2,868) - - (1,868) (1,000) - - - - - - - - - - - - - - - - - -
Horse & Pony Replacement (5,210) - - - - - - - - - - - - (5,210) - - - - - - - - -
Cash Flow Before Financing 303,712 (107,417) (183,765) 296,974 40,305 6,767 10,208 12,653 13,821 13,260 13,776 14,210 14,646 9,617 15,239 15,716 16,202 16,699 16,680 17,195 17,718 18,085 15,126
Equity
Capital Injection from Shareholders 364,788 107,924 184,988 71,876 - - - - - - - - - - - - - - - - - - -
Cash Flow After Financing 668,501 507 1,223 368,850 40,305 6,767 10,208 12,653 13,821 13,260 13,776 14,210 14,646 9,617 15,239 15,716 16,202 16,699 16,680 17,195 17,718 18,085 15,126
Cash Balance b/f - 507 1,729 370,579 410,885 417,652 427,859 440,512 454,333 467,593 481,369 495,579 510,225 519,842 535,081 550,797 566,999 583,698 600,378 617,573 635,290 653,375
Disbursement of Dividend - - - - - - - - - - - - - - - - - - - - - -
Cash Balance c/f 507 1,729 370,579 410,885 417,652 427,859 440,512 454,333 467,593 481,369 495,579 510,225 519,842 535,081 550,797 566,999 583,698 600,378 617,573 635,290 653,375 668,501
Balance Check - - - - - - - - - - - - - - - - - - - - - -

Without INASGOC, the capital injection of IDR 402 bil. is required but the project
is unable to payback its shareholders
Project Equine
201601013 Equine FM 1.0.xlsx
Tables for Report
All Figures in IDR mil.

Total 31-Dec-16 31-Dec-17 31-Dec-18 31-Dec-19 31-Dec-20 31-Dec-21 31-Dec-22 31-Dec-23 31-Dec-24 31-Dec-25 31-Dec-26 31-Dec-27 31-Dec-28 31-Dec-29 31-Dec-30 31-Dec-31 31-Dec-32 31-Dec-33 31-Dec-34 31-Dec-35 31-Dec-36 31-Dec-37
Cash Flow
Revenue
INASGOC - - - - - - - - - - - - - - - - - - - - - - -
Equine 918,307 - - 3,112 19,056 23,972 29,482 33,824 36,191 38,725 41,435 43,507 45,683 47,967 50,365 52,883 55,528 58,304 61,219 64,280 67,494 70,869 74,412
Non-Equine 815,822 - - 5,392 23,402 25,388 27,538 29,465 31,528 33,735 36,096 37,901 39,796 41,786 43,875 46,069 48,373 50,791 53,331 55,997 58,797 61,737 64,824
Operating Costs
Variable Costs
Horse-Related Cost (258,053) - - (951) (5,130) (6,481) (7,995) (9,184) (9,827) (10,515) (11,251) (11,814) (12,405) (13,714) (14,400) (15,120) (15,876) (16,670) (17,503) (18,379) (19,298) (20,262) (21,276)
Tack Shop (55,897) - - (189) (1,160) (1,459) (1,795) (2,059) (2,203) (2,357) (2,522) (2,648) (2,781) (2,920) (3,066) (3,219) (3,380) (3,549) (3,726) (3,913) (4,108) (4,314) (4,529)
Parking Lot (5,861) - - (40) (173) (185) (198) (211) (226) (242) (259) (272) (285) (300) (315) (330) (347) (364) (383) (402) (422) (443) (465)
Fixed Costs
Electricity (277,780) - - (7,488) (8,012) (8,573) (9,173) (9,815) (10,502) (11,237) (12,024) (12,625) (13,256) (13,919) (14,615) (15,346) (16,113) (16,919) (17,765) (18,653) (19,586) (20,565) (21,593)
Water (69,445) - - (1,872) (2,003) (2,143) (2,293) (2,454) (2,626) (2,809) (3,006) (3,156) (3,314) (3,480) (3,654) (3,836) (4,028) (4,230) (4,441) (4,663) (4,896) (5,141) (5,398)
Staff (276,751) - - (7,460) (7,982) (8,541) (9,139) (9,779) (10,463) (11,196) (11,979) (12,578) (13,207) (13,868) (14,561) (15,289) (16,054) (16,856) (17,699) (18,584) (19,513) (20,489) (21,513)
Insurance (29,307) - - (790) (845) (904) (968) (1,036) (1,108) (1,186) (1,269) (1,332) (1,399) (1,469) (1,542) (1,619) (1,700) (1,785) (1,874) (1,968) (2,066) (2,170) (2,278)
Marketing (15,971) - - (54) (331) (417) (513) (588) (629) (673) (721) (757) (794) (834) (876) (920) (966) (1,014) (1,065) (1,118) (1,174) (1,232) (1,294)
SGA (8,671) - - (43) (212) (247) (285) (316) (339) (362) (388) (407) (427) (449) (471) (495) (520) (545) (573) (601) (631) (663) (696)
Maintenance (146,533) - - (3,950) (4,226) (4,522) (4,839) (5,178) (5,540) (5,928) (6,343) (6,660) (6,993) (7,343) (7,710) (8,095) (8,500) (8,925) (9,371) (9,840) (10,332) (10,848) (11,391)
Miscellaneous (41,223) - - (1,083) (1,181) (1,267) (1,360) (1,458) (1,560) (1,670) (1,786) (1,876) (1,970) (2,068) (2,171) (2,280) (2,394) (2,514) (2,639) (2,771) (2,910) (3,055) (3,208)
Trial Event (8,445) - (2,123) (6,323) - - - - - - - - - - - - - - - - - - -
Team Preparation and Training (10,426) (3,041) (5,213) (2,172) - - - - - - - - - - - - - - - - - - -
Movements in Accounts Receivables (11,444) - - (699) (2,791) (567) (630) (515) (364) (390) (417) (319) (335) (351) (369) (387) (407) (427) (448) (471) (494) (519) (545)
Movements in Accounts Payables 7,697 250 353 2,061 (95) 286 314 289 242 259 277 212 222 290 248 260 273 287 302 317 332 349 367
Land Tax (196,023) (4,000) (4,280) (4,580) (4,900) (5,243) (5,610) (6,003) (6,423) (6,873) (7,354) (7,869) (8,419) (9,009) (9,639) (10,314) (11,036) (11,809) (12,635) (13,520) (14,466) (15,479) (16,562)
Tax (67,015) - - - - - - - - (1,692) (2,386) (2,769) (3,141) (3,164) (3,531) (3,917) (4,322) (4,747) (5,719) (6,188) (6,680) (7,360) (11,398)
Tax on Rental (PPh 4 ayat 2) - - - - - - - - - - - - - - - - - - - - - - -
Net Operating Cash Flow 262,982 (6,791) (11,263) (27,129) 3,415 9,096 12,537 14,982 16,150 15,589 16,105 16,539 16,975 17,156 17,568 18,045 18,531 19,028 19,009 19,524 20,047 20,414 17,455
Project Cost (345,006) (100,627) (172,503) (71,876) - - - - - - - - - - - - - - - - - - -

Refurbishment (46,582) - - (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329) (2,329)
Horse & Pony (2,868) - - (1,868) (1,000) - - - - - - - - - - - - - - - - - -
Horse & Pony Replacement (5,210) - - - - - - - - - - - - (5,210) - - - - - - - - -
Cash Flow Before Financing (136,683) (107,417) (183,765) (103,203) 87 6,767 10,208 12,653 13,821 13,260 13,776 14,210 14,646 9,617 15,239 15,716 16,202 16,699 16,680 17,195 17,718 18,085 15,126
Equity
Capital Injection from Shareholders 401,517 107,924 184,988 108,605 - - - - - - - - - - - - - - - - - - -
Cash Flow After Financing 264,835 507 1,223 5,403 87 6,767 10,208 12,653 13,821 13,260 13,776 14,210 14,646 9,617 15,239 15,716 16,202 16,699 16,680 17,195 17,718 18,085 15,126
Cash Balance b/f - 507 1,729 7,132 7,219 13,986 24,193 36,846 50,667 63,927 77,703 91,913 106,559 116,176 131,415 147,131 163,333 180,032 196,712 213,907 231,624 249,709
Disbursement of Dividend - - - - - - - - - - - - - - - - - - - - - -
Cash Balance c/f 507 1,729 7,132 7,219 13,986 24,193 36,846 50,667 63,927 77,703 91,913 106,559 116,176 131,415 147,131 163,333 180,032 196,712 213,907 231,624 249,709 264,835
Balance Check - - - - - - - - - - - - - - - - - - - - - -

6.5 Summary of key findings
To be financially sustainable, it is critical to secure financial support from
INASGOC as the venue will be purpose-built for the Games … otherwise PMJ
would require substantial financial support from the shareholders
Based on the projection calculation of the project which has been discussed in  The project is financially sustainable after the games provided the targeted
the previous section, several key findings are described below: revenue and cost assumptions are achieved. Other capex over the
 Without the INASGOC compensation, the funding gap of about IDR 402 bil. projection period for refurbishment, replacement of horse & pony cost can be
(capex of IDR 345 bil. and cash shortfalls in first year of operations) will likely supported from the cash flows generated.
be fully funded by PemProv due to the lack of cash flows presently in PMJ to  For the scenario analysis, we compared the project return and equity
support that amount. required. The analysis will be analysed from both perspectives, with and
without the potential revenue from INASGOC in the adjacent table.
 JIEP is assumed to receive a compensation from INASGOC, estimated at up
to IDR 489 bil. using the information which PMJ has provided us on the
potential compensation which JIExpo is expected to receive. Based on our Description With Without
financial model, that amount would be able to fund the project cost, the initial INASGOC INASGOC
operating years and leave a surplus cash. The surplus cash can either be IDR 489 bil
returned to Jakpro / PemProv or retained in PMJ for other investment Project IRR 20.6% -3.3%
activities outside the equestrian venue.
Project NPV IDR 51 bil. IDR -256 bil.
 It is presently unclear how much will be received from INASGOC and the
timing of the payment. For the purposes of the base case, we have Funding Gap / Equity Requirement IDR 365 bil. IDR 402 bil.
assumed that it would be paid upon the completion of the Games. Hence, Project Payback 3 years >20 years
the financial support from Jakpro of IDR365 bil. is needed till the payment.
Equity Payback 3 years >20 years
 If the INASGOC payment can obtained during the initial stages of
construction, the financial support from Jakpro can be reduced substantially.
 The operating cash flows does not appear to be able to support commercially
sourced debt. As such, the base case projections assumes the project is
funded from the shareholders in the form of equity as any shareholders loan
charging a commercially-priced interest would put further stress on the
project cashflow.

6.6 Sensitivity analysis
10% change in the Revenue or Opex will change the Project IRR by ~4% …
10% change in Capex or INASGOC will change the Project IRR by ~6%
Total Total
Inasgoc Inasgoc Revenues Total OPEX CAPEX Project Project Equity
∆ ∆ ∆ Amount (% Amount (20 yrs) (20 yrs) (20 yrs) Equity Debt NPV Project Payback Payback
Scenario Revenue OPEX CAPEX of Base) (IDR b) (IDR b) (IDR b) (IDR b) (IDR b) (IDR b) (IDR b) IRR (years) (years) Scenario
Base 100% 489 2,223 1,204 392 365 - 54 20.6% 3.00 3.00 Base
2 10% 100% 489 2,418 1,219 392 365 - 89 24.0% 3.00 3.00 2
3 10% 100% 489 2,223 1,337 392 366 - 27 16.8% 3.00 3.00 3
4 10% 100% 489 2,223 1,204 426 399 - 27 15.7% 4.00 4.00 4
5 -10% 100% 489 2,033 1,190 392 365 - 21 16.1% 3.00 3.00 5
6 -10% 100% 489 2,223 1,074 392 364 - 81 23.7% 3.00 3.00 6
7 -10% 100% 489 2,223 1,204 357 330 - 81 27.1% 3.00 3.00 7
8 10% 10% 100% 489 2,223 1,337 426 400 - (0) 11.9% 4.00 4.00 8
9 -10% -10% 100% 489 2,223 1,074 357 329 - 108 30.2% 3.00 3.00 9
10 - 1,734 1,204 392 402 - (256) -3.3% #N/A #N/A 10
11 10% - 1,929 1,219 392 401 - (222) 0.1% 22.00 22.00 11
12 10% - 1,734 1,337 392 407 - (284) -6.8% #N/A #N/A 12
13 10% - 1,734 1,204 426 436 - (283) -3.8% #N/A #N/A 13
14 -10% - 1,543 1,190 392 402 - (290) -8.6% #N/A #N/A 14
15 -10% - 1,734 1,074 392 396 - (229) -0.7% #N/A #N/A 15
16 -10% - 1,734 1,204 357 367 - (229) -2.7% #N/A #N/A 16
17 10% 10% - 1,734 1,337 426 441 - (311) -7.2% #N/A #N/A 17
18 -10% -10% - 1,734 1,074 357 362 - (202) -0.1% #N/A #N/A 18
19 90% 440 2,175 1,204 392 365 - 23 15.3% 4.00 4.00 19
20 80% 391 2,126 1,204 392 365 - (8) 11.0% 8.00 8.00 20
21 70% 343 2,077 1,204 392 365 - (39) 7.7% 12.00 12.00 21
22 60% 294 2,028 1,204 392 365 - (70) 5.1% 15.00 15.00 22
23 50% 245 1,979 1,204 392 365 - (101) 3.0% 18.00 18.00 23
24 40% 196 1,930 1,204 392 365 - (132) 1.3% 20.00 20.00 24
25 30% 147 1,881 1,204 392 365 - (163) -0.1% #N/A #N/A 25
26 20% 98 1,832 1,204 392 365 - (194) -1.3% #N/A #N/A 26
27 10% 49 1,783 1,204 392 365 - (225) -2.4% #N/A #N/A 27

Section 7:
Socio-Economic Analysis

7. Socio-Economic Analysis
Scope of Work Methodology

• To perform the socio-economic analysis of the project, the following steps • In preparing the report, we have completed the following tasks:
were taken:  Perform primary and secondary research
 Quantify the economic impact of the project on the local economy
 Calculate the estimated economic impact from the project
 Identify the impact of the equestrian industry in promoting the tourism and
improving the standard of living for the citizens.
• The section will be divided into the following parts:
7.1 Overview
7.2 Direct Benefits
7.2.1 Job Creation
7.2.2 Area Attractiveness
7.2.3 Taxes
7.3 Indirect Benefits
7.3.1 Social Benefit
7.3.2 Other Economic Impact

7.1 Overview
Overview Benefits Comments Beneficiary

• In order to evaluate the impact of the development and establishment of JIEP, Job Creation There will be job creation during Community
1
the socio-economic analysis was conducted. The impact was measured (Quantitative) the construction and operational
during the construction and operational period of the JIEP, using both period in JIEP.
quantitative and qualitative methods.
2 Area By having equestrian facility Community
• The estimated economic impact and assumptions presented in this section Attractiveness located in East Jakarta, it will
Direct
should be considered conservative. It should be noted that the results will (Qualitative) increase the attractiveness
depend substantially on the changes in the assumed estimates over time. within that area as well as
increasing the land and property
• The adjacent diagram illustrates the flow of benefits for the JIEP project. price.
3 Taxes Profits from the JIEP will be Government

(Quantitative) taxable resulting in higher tax
revenues.
4 Social Benefit The other impacts of Dispersed

improvement are language,
micro-small-medium enterprise
(UMKM) and introduction to the
Indirect
art and culture.
Other Income generated from the Dispersed
5 Economic construction and refurbishment
Impact activities for JIEP can result in
benefits for other industries.

7.2 Direct Benefits
7.2.1 Job Creation Employment During Operational Period

• From the development and establishment of JIEP, there will be a creation of • For the direct employment, it will occur during the operational period of JIEP
job in both construction period and the operational period. We classified the after the Games. PMJ will directly employ 52 full-time staffs in the JIEP as
job creation into the indirect employment and direct employment by PMJ. explained in the section 6.2.2 of this report. The average wage is IDR 36.3
mil., which is 11.7 times above the minimum wage (IDR 3.1
Employment During Construction Period
mil./month/employee).
• During the construction period, there will be job creation in the form of indirect
employment. We quantified the number of employees based on the project
7.2.2 Area Attractiveness
cost determined by PMJ.
• The attractiveness of area in East Jakarta will increase as a result of the
• Based on our research, we noted that the average labor cost is ranged from
equestrian facility with international standard.
25% to 35% of total project costs. We took the mid point for the labor cost
percentage, estimated at 30% from project cost. • The Games can also potentially increase the land and property price in the
East Jakarta, in particular surrounding the JIEP venue.
• The construction period takes place over 2 years or 24 months period. By
using these assumptions, we derived at the estimated 1,391 staffs per month
during the construction period. Refer to the adjacent table for detailed 7.2.3 Taxes
assumptions.
• Profits generated from the JIEP from the 20 years operational period will be
Remarks Description Assumptions taxable resulting in higher tax revenues.
A Project cost amount IDR 345,006 mil. • Based on the financial model projection for construction and operational
period, we estimated the land tax and the income tax payable to local
B Estimated percentage of labor cost 30%
government are IDR 196 bil. and IDR 116 bil. respectively.
C = AxB Labor cost during construction IDR 103,502 mil.
D Duration of project construction 24 months
IDR 3.1
E Minimum wage in Jakarta
mil./month/employee
F = C/D/E Estimated number of staffs
Feasibility Study of Jakarta International Equestrian Park - 13 October 2016
1,391 staffs/month 83
7.3 Indirect Benefits
7.3.1 Social Benefit

• Based on our discussion with Ms. Sylviana Murni as the Deputy Governor in
Culture and Tourism, she acknowledged that there will be additional benefits
resulting from the Games.
• During and after the Games, there will be socio-economic impact in the forms
of improvement in tourism, introduction and usage of multiple languages,
development of micro-small-medium enterprise (UMKM), opportunity for the
country to introduce the art and culture internationally.
• According to Ms. Sylviana, there will be estimated of 60,000 liaison officers
hired to help in accommodating the Games. This will also contribute to the
increase of the national income indirectly.
7.3.2 Other Economic Impact

• During the construction and refurbishment activities held in the JIEP, there will
be income generated for the contractors, for the consultants and other related
parties. Those income generated will result in benefits for other industries.

Section 8:
Appendices

Appendix A
Information Request List (1/3)
Information Requested to PMJ

To perform the scope of services provided in the Appendix A, we have requested PMJ to provide the information related to the project.
The detailed description of the information request list is provided in the adjoined table:
Type of Information Details of Information Required Date Requested
Development We will need to comprehend the Development Plan for Pulomas Equestrian Park. Including the development plan for the building 23 March 2016
Concept and structure that will be renovated, demolished and the refurbished.
We need to understand the new building and structure which will be constructed, the area that will be maintained after Asian
Games 2018, and the area that will be changed / converted.
In order to apprehend the initial concept of the equestrian park, we require the following information listed below:
• Latest layout for equestrian park
• Planned layout for equestrian park
• Current state for the existing building and structures
Master Plan for We will conduct an interview with Development and Planning Consultant to understand the concept and land use 23 March 2016
Pulomas recommendation for development in Pulomas.
Equestrian Park We would like to arrange the discussion or interview with Cushman & Wakefield for their development concept, i.e. concept of
having the equestrian park designated as green area (RTH) to get the maximum value in terms of social value in the surrounding
environment.
Location Attributes The inspection towards the locational and physical attribute will be measured by having the related information from the Technical 23 March 2016
and Planning Consultant as follows:
• Accessibility consideration to the equestrian facility such as the entry and exit point, transportation access
• Availability of utilities specifically the electricity and water
• Infrastructure development that will have impact for the development process for the equestrian venue (namely the waste
treatment, new substation and the erection of the vicinity area)
• Key requirements needed for the quarantine and the environment condition that meet with the standard
• Further interview and discussion with the Technical and Planning Consultant (if needed)
Appendix A
Information Requested to PMJ (continued)
Cost Estimates Based on the elaboration from the plan from Technical and Planning Consultant for the information stated above, we need to 23 March 2016
highlight cost item for each of the component needed for the development of the equestrian venue. The information required
related to the cost items are listed below:
• Capital cost estimates from the Quantity Surveyor and Engineer
• Operating cost estimates, including maintenance, electricity, feeding, supplies and tools
• Other estimates for pre-operating expenditures including costs related for project development
• We might need further discussion and clarification with respective parties
Site Visit To articulate the site condition and exposure, we will conduct the site visit to observe the environment and activities. We might 23 March 2016
engage some on-site personnel for interactive observation and interview to understand the real constraints in the site.
Insight from From the management standpoint, we need to conduct an interview to understand their expectation towards the development 23 March 2016
Management strategy for Pulomas Equestrian Park, development strategy of Pulomas equestrian, and key challenges / impediments which
may limit the development process.
Interview with We will require to conduct an interview with the Stakeholders to be able to identify the recommendation and action required for 23 March 2016
Stakeholders the equestrian venue.
Hence, we would like to interview approximately 5-6 Stakeholders, depending on their availability.
Construction To seize the information from the Management Construction of the project, we need to develop the expectation for the information 23 March 2016
Timeline below:
• Timeline of the project
• Current completion phases of construction
• Timeline from Environmental Impact Assessment (AMDAL) for the project location (Pulomas)
• Interview and discussion with Management Construction Team (if needed)

Appendix A
Information Requested to PMJ (continued)
Historical Financial To get the overview of operational aspect and to evaluate the financial condition and performance, we expect to attain the 23 March 2016
Statements historical financial statements of PT PMJ which related to the equine portion.
Marketing and From marketing standpoint, we need to apprehend the development plan in order to understand the equine and non-equine 23 March 2016
Business events that will be targeted, and consideration for the two events to complement each other.
Development Plan We need the information and consideration related to the partnership and contract (i.e. long-term lease, joint operation, joint
venture) between PT PMJ and other parties, both existing and future assignation.
Investment Criteria From the point of view of PT PMJ, there are several key measurements which are prerequisite for the project development. The 23 March 2016
following measurements required are enumerated below:
• Hurdle rate required from the project
• Expected Internal Rate of Return (“IRR”) to determine and evaluate the project
• Consideration and requirement for investment from the management, e.g. the management may wish to allocate certain area
for green space so that the residents of the surrounding developments can be benefited

Appendix B
Project Deliverables
Deliverables Provided to PMJ

Over the course of this engagement, we have provided the deliverables related to the project to PMJ.
The detailed deliverables distributed to PMJ are summarized below:
Deliverables File Size Time Stamp Date Provided
Draft Report 1
• 20160422 Equine Report Draft 1.0.pdf 1,583 KB 22/04/2016 08:46 AM 22 April 2016
Draft Report 2
• 20160502 Equine Report Draft 2.0.pdf 1,660 KB 02/05/2016 11:16 PM 02 May 2016
• 20160502_Equine Draft Projection 1.0.xlsx 71 KB 03/05/2016 10:36 AM 03 May 2016
Draft Report 3
Draft Report 4
• 20160524 Equine Draft- INASGOC 1.0.pdf 433 KB 24/05/2016 09:38 PM 24 May 2016
• 20160524 Potential Revenue from INASGOC v.0.1.1.xlsx 58 KB 24/05/2016 09:38 PM 24 May 2016
Draft Final Report

• 20160608 Equine Draft Final Report 1.0.pdf 1,956 KB 08/06/2016 02:47 PM 08 June 2016
• 20160803 Equine Final Draft 1.0.pdf 1,869 KB 04/08/2016 3:13 AM 04 August 2016
• 20160930 Equine Update Report Jakpro 1.0.pdf 484 KB 30/09/2016 8.55 AM 30 September 2016

Appendix C
Overview
Introduction Sources of Information

PMJ has appointed Deloitte Konsultan Indonesia (“Deloitte”) to assess the During the incorporation of this report, we have performed interactive
feasibility and business studies for their development of an international discussion and interview with several stakeholders that have significant
standard equestrian center in East Jakarta (the “Project”) for the Games. We knowledge and experience in equine industry, as described below:
believe that PMJ intends to assess the available options to maximise and unlock
• Ms. Sylviana Murni (Deputy Governor of Culture and Tourism)
the commercial value of the proposed venue while meeting the stringent venue
requirements of the Fédération Equestre Internationale (“FEI”). • Mr. Rafiq Hakim Radinal (Owner of Arthayasa Stables & Country Club);
Deloitte will help PMJ in navigating the key financial challenges in the • Ms. Putri Hamidjojo (Indonesian Equestrian Show Jumping Athlete and
implementation of the proposed development by providing on: Owner of Trijaya Equestrian Centre);
• Assess the main characteristic and attribute of the location to develop the • Ms. Cheryl A. Victor (Malaysian Show Jumping and Dressage Judge and
equestrian venue for the Games. Equestrian Manager for Selangor Turf Club Equestrian and Sport Centre)
• Identify the development concept that will comply with the standard • Ms. Melissa A. Lynton-Lobato (Owner of Bali Equestrian Centre)
requirements of the Games, also the minimum requirements to be eligible
commercially by PMJ. • Ms. Aan (Representative from Jakarta Perkumpulan Equestrian Centre)
• Assess the financial feasibility along with the consideration of the funding • Ms. Adel (Representative from Adria Pratama Mulya)
needs and the return from investment of the project. • Ms. Tiara Ulfa Zein (Special Events Coordinator for Adria Pratama Mulya)
Based our thought process above, we will cater your requirements for the • Ms. Sheila (Representative from Perak Turf Club Equestrian Club)
feasibility and business studies for the development of the project.
• Ms. Lynn (Representative from Singapore Turf Club Riding Centre)
• Mr. Gerard (Club Captain of Bukit Timah Saddle Club)
Site Visit Performed
• Mr. Surapol Puthapitak (Ground Manager of Thai Polo & Equestrian Club)
• Site visit to JIEP proposed location on 29 March 2016
• Site visit to ASCC location on 7 April 2016

Appendix D – Timelines
Minggu 21/3 28/3 4/4 11/4 18/4 25/4 2/5 9/5 16/5 23/5 30/5 6/6 13/6
Kick-off Meeting
Tahapan 1: Identifikasi
Kajian Situs
Pengumpulan Data &

Konsultasi dengan Pemangku Kepentingan
Seleksi Pembanding
Tahapan 2: Analisa
Analisa Lokasi SWOT
Studi Industri & Pasar Laporan
Analisa Pembanding
Analisa Regulasi
Kajian Risiko
Konsep Pengembangan Feedback
Tahapan 3: Studi Finansial dan Sosio-Ekonomi
Pengembangan Model Keuangan Optimasi FM

Analisa Kesenjangan Pendanaan &
Skenario Tambahan
Analisa Skenario
Penilaian Dampak Ekonomi
Hasil Kerja
Laporan Studi Kelayakan Hasil Survey, Hasil Awal Kajian Bisnis Kesimpulan & Saran
D F
Model Keuangan
D F
Appendix E – Detail Comparison Analysis (1/6)
Equine vs. Non-Equine Businesses
Revenue
Based on our analysis, the revenue generated from the Equine (“E”) and Non-Equine (“NE”) are diversified in the table below.
Location
Revenue Generated Factor
Equestrian Activities 90 70 100 90
Non-equestrian Activities 10 30 - 10
Major equestrian venues located in the Indonesia and Thailand generated the revenue from composition of 90:10 from equine and non-equine.
According to discussions between Deloitte and representatives from selected venues, we understand that the equine activities are sufficient to
subsidize the equestrian business itself. The revenue acquired from non-equine activities (i.e. membership, tack shop, sport lessons, etc.) is a
supplementary revenue for the venues.
Equestrian venues located in Malaysia generated the revenue based on the composition of 70:30 from equine and non-equine. The rationale is because most
of the equestrian venues in Malaysia offer wide variety of non-equine facilities (i.e. gym, archery, beauty studio, pilates and yoga).
However, equestrian venues in Singapore are greatly focus on the equestrian activities rather than diversify the venue to equine and non-equine
activities. Hence, the revenue structure generated is dominated from the equine activities by 100:0.

Equine vs. Non-Equine Businesses
Riding Lesson
• All of the equestrian venue provided the riding lesson that accommodates the rider from beginner level to expert level. From the comparison analysis, we
obtained 10 price ranges from the equestrian venues. We understand the price range obtained has a resemblance of private riding lesson with duration of 45 to
60 mins per lesson.
• Based on the adjacent table below, we translated the currency for the riding lesson fee towards Indonesian Rupiah. Based on the table above, the riding lesson
in the Singapore is ranked as highest rate compared to other equestrian venues in Indonesia and Malaysia. While Malaysia has the lowest rate for the riding
lesson per visit.
Location
Riding Fee per
Indonesia Malaysia Singapore
Lesson
ASCC BEC JPECS TEC APM STCESC PRTCEC STCRC SPC BTSC
Original Fee Per Visit IDR 600k IDR 950k IDR 450k IDR 500k IDR 450k MYR 100 MYR 80 SGD 150 SGD 140 SGD 110
Exchange Rates - IDR 3,400/MYR IDR 9,800/SGD
IDR per visit IDR 600k IDR 950k IDR 450k IDR 500k IDR 450k IDR 340k IDR 272k IDR 1,470k IDR 1,382k IDR 1,078k

Equine Businesses
Stabling
Most of the equestrian venues provide the stabling or rent stable for the horse
owners to locate their private horse in the venue. The price range is varied
based on the type of services provided along with the stable rent. Basic services
included in the price of stable rent are grooming, and bedding services. Some of
the venues do not provide the feeding in the price. Based on the comparison,
we concluded the equestrian event in Singapore has the highest rate for the
stable rent per month. Venues in Indonesia and Malaysia has lower rate for
stable rent and relatively same service offered within the price.
Membership
Membership program is offered in some venues in Indonesia, Malaysia and
Singapore. Based on our discussion, the main purpose of the membership
program held is to secure and attain some money and early payment to be used
for the operational cost for the venues. There are tendency that not all of the
members are likely to come on routine basis to the venues.
Between the 3 countries mentioned previously, Indonesia has the lowest annual
membership rate and Singapore has the highest annual membership rate after it
has been translated into Indonesian Rupiah.

Possible events – Equine Business
World Championship
Most of the venues have been operated as host venue for World Championship
for equine event, namely ASCC, JPECS and APM (Indonesia), PEP and
World PRTCEC (Malaysia), STCRC and SPC (Singapore) and TPEC (Thailand).
Championship Types of World Championship held in the equestrian venues are varied,
specifically FEI World Challenge for Indonesian venues, International League
Horse for PEP in Malaysia, Youth Olympic Games for STCRC and International Polo
Educational SEA Games Tournament for SPC in Singapore, and FEI World Cup and International Cross-
Activities Country for TPEC.
ASIAN Games
ASIAN Games Based on the comparator venues, there is none of the venues selected that has
been appointed as the host for ASIAN Games event.
SEA Games
Pony Camp /
National For the SEA Games event, only 2 (two) venues that have been operated as
Children
Championship host location. There are ASCC in Indonesia for SEA Games 2011, and STCRC
Activities in Singapore for SEA Games 2015.
Club National Championship
Championship Among 13 (thirteen) equestrian venues selected as comparator, only 2 (two)

venues that have not been hosted the National Championship event. The
venues are BEC in Indonesia and BKECR in Malaysia.
Club Championship
All of the equestrian venues have been hosted the Club Championship event.
By holding the competition event, the equestrian venues will be distinguished
within the surrounding venue located within the country and the vicinity area.
Possible events – Equine Business (continued)
Pony Camp / Children Activities

Pony Camp and children activities are offered in majority of the venues. Only
APM (Indonesia) and TPEC (Thailand) do not provide the event for children.
World APM is mainly focus on the boarding school for the equestrian, whereas TPEC
Championship is greatly focus on the Polo Club rather than diversify its core event for children
activities. Pony Camp is a regular event held for the children to learn the stable
management for ponies, basic necessity and treatment for ponies, along with
Horse
the pony ride.
Educational SEA Games
Activities Horse Educational Activity
With the intention to educate and encourage the visitor and community to
equestrian industry, some equestrian venues provide the horse educational
ASIAN Games activity event. The event can be assembled in different manner, whether
classroom-based or hands-on practice. Basically, the educational activity is
intended for the horse management and stable management. ASCC and
Pony Camp /
National JPECS in Indonesia, BKECR and PEP in Malaysia, and TPEC in Thailand are
Children the venues that do not provide the horse educational activity.
Championship
Activities
Club
Championship

Possible events – Non-Equine Business
Bazaar /
MICE
Festival
Concert / CSR &

Event Charity
NON-EQUINE BUSINESS
Party / Sponsorship /
Occasion Advertisement
Sport Championship / Facilities

Appendix F – Location Attributes (1/3)
PMJ needs to improve the surrounding area of JIEP to
meet international standard for equestrian venue
Site Visit Observation
• Near the training area and inside the stable, there are other animals which
are released freely, i.e. unauthorized horses and stray dogs. Based on our
observation, some of the dogs at the stable have rashes and scars on their
bodies. There is high possibility that the dogs are infected with disease. They
can easily contaminate the horses.
• The pathway is not in good condition. The road has bumpy road and poor
drainage system. In addition, we can easily spot horse waste which is not
taken care properly.
• Behind the existing dormitory, there are illegal building/house belong to
groomer’s family. The building blocks the development of new road access to
the venue. PMJ, in collaboration with local government, has already planned
to relocate the family to other location. Currently some of the family has
agreed to move while the others are still in negotiation process.
• The current stables are neglected and poorly maintained; i.e. broken gates,
food container using old used bucket, fan is not functioned properly that
makes no air circulation and hole in the stable’s wall. The walkways are pitted
with many puddles.

Based on our observation, there is unclear direction and
minimum signage to the venue
Site Visit Observation (cont’d)
From Kelapa Gading
• Based on our observation, there is no clear guidance and direction from Jl.
and Pulo Gadung Perintis Kemerdekaan to the venue.
• The main entrance is located at the left side of Jl. Pulo Mas Jaya. It has no
From Rawamangun
clear entrance sign which may confused the visitor. Based on the masterplan,
PMJ plans to construct a entrance statue at the corner of Jl. Pulo Mas Jaya,
next to entrance gate. It will serve as JIEP’s icon and sign for main entrance.
• The entrance is located at a turn which requires vehicle to slow down at a
speed of approximately 10 km/h. This may lead to heavy traffic near the
entrance area. PMJ plans to change the access road to entrance from two-
ways direction into one-way direction.
From Cempaka • Based on the recent news, the government has planned to build LRT station
at Pulo Mas. The station will be integrated with current Pulo Mas bus station.
Putih/Central
From Bypass This development will be an advantage for JIEP in term of accessibility.
Bus Stop
Main Entrance

PMJ may consider to develop the open space between the
tribune and the proposed mall as an integrated entrance
• Taking into account the potential development of the area, PMJ may consider Comparator
to build an entrance sign at the junction on Jl. Peritis Kemerdekaan to direct
the visitior to the venue; e.g. Gate at Jl. Pintu Gelora 1 to GBK Stadium.
• To minimize heavy traffic at the main entrance, PMJ may consider to develop
the open space between the tribune and the proposed mall as an integrated
entrance to JIEP and mall. The connecting area can serve as additional
parking lot, open café/lounge, and retail space.
• PMJ should consider to build shelter from the bus stop to pedestrian entrance.
• PMJ, together with related government institutions, need to implement traffic
engineering during the Asian Games and big event in the future.
Gate at Jl. Pintu Gelora 1 to GBK Stadium
Our Recommendation
Proposed gate at Jl. Perintis Kemerdekaan

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Feasibility Study of Jakarta

International Equestrian Park

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 2

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 3

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 4

The Project Deloitte’s Role in the Project

Inputs Received from PMJ

Historical Financial Aspect of PMJ

Project Related Information

Master Plan for Equestrian Park

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 6

Meeting Location Date

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 8

Items Key Findings

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 9

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 10

Items Key Findings

Potential Prior to the Games: 2 3

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 11

Socio- Job Creation: 2 3

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 13

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 14

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 15

3.1.2 Overview of the Pulo Mas Racecourse

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 16

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 17

3.1.4 Supporting Amenities

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 18

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 19

• Ensuring that the Indonesian governmental organisations involved in

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 20

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 21

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 22

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 23

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 24

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 25

Overview F&B facilities on 1st Floor

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 26

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 27

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 28

• Equestrian sport is predominantly perceived as a sport for the affluent, due to

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 29

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 31

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 32

Comparison Summary for Equestrian Venue

Indonesia Malaysia Singapore Thailand

Number of Stables 86 40 80 50 50 200 100 40 35 21 nav. 100 218

Indicative Pricing Equine :

Events Equine Yes (v)

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 33

Comparison Summary for Equestrian Venue

Indonesia Malaysia Singapore Thailand

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 34

• 7/13 venues have function room.

• 8/13 venues have held World Championship.

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 35

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 36

FEI and EDFZ certification from OIE M Moderate

1 Delay in  Implication:  Plan:

2 Compliance  Implication:  Plan:

Feasibility Study of Jakarta International Equestrian Park - 13 October 2016 37

course in the equestrian facilities M Moderate

3 Uncertainty  Implication:  Plan: