©Sakhalin Energy ©QVC Japan, Inc.

Mitsui & Co., Ltd. : History, Values

& Sogo-Shosha Business Model

Contents Today:
1. What is the “Sogo-Shosha”?
2. Mitsui’s Global Activities
3. Snap-shot of Mitsui in Indonesia
4. Leadership Development

Iko Pramudiono
PT Mitsui Indonesia
 3

What is the “Sogo-Shosha”?

“Sogo” Integrated
“Shosha” Trading company

Japan Original and Unique Business Model

• started as a government certified trading company

• trade everything “from ramen-noodle to satellite”
• has survived by changing its business model
• ≠ financial institute. Direct involvement in business
• “we only have a pen, a paper and a phone”

Integrated investment and trading conglomerate

Mitsui & Co. : one of the largest in Japan

Business Areas

6 business areas
Providing new value
across a broad range of business domains

Through business development, logistics and
trading of mineral and metal resources, metals and
steel products, we reinforce a comprehensive value
Metals chain to secure a stable supply of the resources,
materials and products necessary for both industry
and society.
Through upstream development, logistics and
trading of energy resources such as oil, natural
gas/LNG, coal and uranium, we contribute to the
Energy stable supply of energy vital to both industry and
society.

electricity, gas, water, railways and other logistics

Machinery infrastructure. We provide sales, financing, lease,
transportation and logistics, and project investment in
& a wide range of machineries, including large-scale
plants, marine resource development facilities, ships,
aerospace, motor vehicles, construction/mining
Infrastructure machinery and industrial machinery.
we provide value-added products and services,
develop businesses and make investments in the
fields of food resources, food products, retail
Lifestyle support business, medical and healthcare, fashion,
forestry plantation resources and real estate-
related business.

Our chemicals business encompasses trade and Through our ICT, Finance and Logistics business, we
investment in a range of industries, from upstream
chemicals such as basic chemicals and fertilizer
Innovation & work on a diverse range of projects aimed at
developing innovative business and expanding our
Chemicals resources, through to downstream chemicals such
as functional materials, electronics materials,
Corporate business field.

fertilizers, agricultural chemicals and specialty

chemicals.
Development

4
15 Business Units 5

Food & Retail Healthcare & IT &

Food Management Consumer Communication
Service

Corporate Nutrition & Performance

Energy Ⅰ Energy Ⅱ Materials
Development Agriculture

Integrated
Iron & Steel Mineral & Metal Transportation
Infrastructure projects Basic Materials
Products Resources Systems
Corporate Philosophy

Corporate Mission, Vision, and Values

Strive to contribute to the creation of a future where the

Mission
aspirations of the people can be fulfilled.

Aim to become a global business enabler that can meet

Vision
the needs of our customers throughout the world.

• Build trust with fairness and humility.

• Aspire to set high standards and to contribute to society.

Values • Embrace the challenge of continuous innovation.

• Foster a culture of open-mindedness.
• Strive to develop others and oneself to achieve full potential.

6
Business Model

5 functions
Providing services and solutions
around the world.
Marketing Financing
Gathering and carefully Using various types of
analyzing in-depth market financing methods which
information. can be tailored and
optimized depend upon
cases.

Logistics IT & Process

Development
Our logistics expertise is a
Capabilities
major source of support
for our customers’ Risk Management Exercising our business
engineering capabilities by
business.
increasing the sophistication
We undertake pre-assessment of business risks, devise of four key using our IT and
methods for managing or mitigating risks we have process development
identified, and based on this provide customers with capabilities.
tailored solutions.

7
 8

Mitsui & Co., Ltd.

Contents Today:
1. What is the “Sogo-Shosha”?
2. Mitsui’s Global Activities
3. Snap-shot of Mitsui in Indonesia
4. Infrastructure Developments
 Corporate Profile
(As of March 31, 2017)

Total Equity*1 Revenue Profit After Tax

Total Assets

US$ 102.7 US$ 33.3 US$ 39.0 US$ 2.7

billion billion billion billion

Investments and Loans Result EBITDA Core Operating Cash Flow *2

US$ 5.7 US$ 5.3 US$ 4.4

billion billion billion

The U.S. dollar amounts represent translations of the Japanese yen amounts at the rate of ¥112.00=U.S. $1,
the approximate rate of exchange on March 31, 2017.
*1: Total equity attributable to owners of the parent
*2: Core Operating Cash Flow = “cash flows from operating activities”－”changes in operating assets and liabilities”

9
 Corporate Profile
(As of May 1, 2017)

Number of

Number of Offices 8,500 Employees

(consolidated)

42,316
and Overseas @ Indonesia
Trading Subsidiaries

139 Global Network

66
(As of May 1, 2017)

countries/regions
Number of Subsidiaries
(As of May 1, 2017)
and Equity
Accounted Investees

469
10
MITSUI & CO.’s Business Areas
Energy
Energy Business UnitⅠ
We are tasked with building a well-balanced energy
portfolio and developing value chain business. We engage
in oil and gas exploration, development and production;
energy resource trading and marketing; and aim to expand
our capabilities while establishing a stable supply system
that meets global energy demand.
Gas production business/Mitsui Oil Exploration, Gas Production Facility (Gulf of Thailand)
Energy Business Unit Ⅱ
The operations of our core natural gas/LNG business
include resource development, trading and marketing.
We participate in LNG development projects throughout
the world. We are also involved in the development of
next-generation energy, and biofuel and hydrogen
businesses that contribute to the shift toward a low
©Sakhalin Energy
carbon society.
11
 Business Portfolio –Oil & Gas– Energy

Mitsui’s reserves & production volume is at the top of the Japanese trading houses and
second among all Japanese companies following INPEX

Norway PL642
As of Mar, 2016
22/19e, 22/19c

Britannia

Alba Eagle Ford shale

Tempa Rossa
Marcellus
Shale
Thai/L11/43
Thai/L10/43 Brazil BAR-M215/217/252/254

Oman Block
3, 4, 9, 27 /NOGJV
Tuna
Myanmar/ M3, AD-9,
AD-11, MD-5, EP-2,
Gulf of Thailand
PSC-G, MOGE-3
WA-
96P/397P/425P/447P/449P/495P ATP/564/602/688/769
AC-P41/P57/P58/P59 Thai/Block 10. 11. 12. 13. 10A.11A.G4/48
Mozambique Enfield/Vincent Meridian CBM
Area1 Thai/Block G4/43
Laverda Kipper
Thai/Block B8/32&9A
WA-271P/461P/463P/428P/430P Cambodia Block A
PEP55768 Thai/G8/50, Block G7/50
Kupe
■ Natural gas :12 Casino/Henry/Netherby
Vietnam/Block B&48/95

VIC/P44/RL11/RL12 Vietnam/Block52/97
◆ Oil & Condensate :7 PEP50119/54863
Thai/Block
Thai/Block 14A, 15A, 16A
B12/27
▲ Exploration :16

12
Business Portfolio –LNG– Energy

Equity share of LNG production : 4.9MTPA

Qatargas 1
Qatargas 3 SakhalinⅡ
Expansion (Train3) Cameron

ADGAS

Equatorial Guinea Tangguh

Oman Expansion (Train3)

Oil Production :2
NWS Browse LNG Projects :8

Mozambique LNG Projects :5

(Planned/Under construction)

LNG: Liquefied Natural Gas

NWS: North West Shelf
ADGAS: Abu Dhabi Gas Liquefaction Company Ltd.
MTPA : Million Ton Per Annum
kbbl/D : Kilo Barrel Per Day

13
MITSUI & CO.’s Business Areas
Metals
Iron & Steel Products Business Unit
We provide sophisticated services and added value
beyond simple steel distribution, through value chain
development in infrastructure, automotive, and energy
domains. We are advancing business investment
through stronger alliances with leading partners, and
strengthening combined trading and business invest-
ment efforts.
Iron ore business/West Angelas mine (Australia)
Mineral & Metal Resources Business Unit
We secure stable supplies of mineral and metal re-
sources through both trading and business investment
activities globally. We develop businesses that are
environmentally friendly and contribute to local regions,
and are expanding our broad-ranging metal recycling
and environmental solutions businesses.
14
 Iron & Steel
Iron & Steel Business –Energy– Products

Trading in oil well casings, line pipe and steel sheet.

Investment and supplying steel for renewable energy related project such as wind power.

 Supplying Oil Well Casings, Line pipe and Steel Sheet.

 Trading Electrical Steel  Trading Electrical Steel

 Mineral & Metal
Business Portfolio Resources

As of December 5th, 2014

Erdos EPMC
Erdos EJM

Sims Metal
Posco Terminal Management

Hyuga Smelting
Ruyuan Dong YangGuang Fine Foil

Coral Bay
Taganito Albras/Alunorte
South Walker Creek
● Iron Ore :5 Moranbah North
Mt. Goldsworthy Poitrel
▲ Ferro-Alloy :2
Robe River Vale Nouvelle-Caledonie Collahuasi
■ Copper :4 Yandi Caserones
Dawson （Start-up from
◆ Alumi/Alumina :2 Mt. Newman Capcoal 2014/05）
Los Pelambres
Vale
Jimblebar
○ Nickel :4 Los Bronces, etc
Kestrel Sims Metal
△ Scrap :2 Bengalla Management

◇ Coal :8 Drayton

□ Others :1

113
 Mineral & Metal
Iron Ore –Alliance with Vale S.A. – Resources

Major Joint Businesses and Projects

(Business Unit-wise)
Iron & Steel Products Consumer Services Integrated Transportation
Systems

・One of the world’s largest mining companies

・Major businesses
Iron ore, nickel, copper, coal,
fertilizer, logistics
Rail Ultra-Large Off-Road Radial Tires Mining Equipment

Mineral & Metal Resources Performance Chemicals Integrated Transportation

Systems
Employee Strategic
2 seats on
Vale Board
Exchange Alliance
program
Agreement

Nickel Mine/Plant Development Phosphate Rock Development Very Large Ore Carriers

Integrated Transportation Integrated Transportation Integrated Transportation

Systems Systems Systems
Holds shares in Vale’s holding company,
Valepar S.A.

9 out of the 12 headquarters business units

at Mitsui have activities related with Vale
(as of July 1, 2014). General Cargo Transportation General Cargo Transportation Railroad Rolling shares Lease

117
MITSUI & CO.’s Business Areas

Machinery & Infrastructure

Passenger transportation/Light Rail Transit (Brazil)

Integrated Transportation Systems Business Unit

Alongside developing strategic alliances in various mobility-
related areas, including motor vehicles, construction and
industrial machinery, shipping, aerospace and railway, we
are building a broad value chain offering functions in
logistics, manufacturing, sales, leasing, rental, financing and
management, and leveraging our comprehensive strength to
create new added-value.

18
 Integrated
Motor Vehicles Transportation
Systems

(Mitsui owns shares of

(Partner) (Partner) (Partner) Penske track leasing)

Business field in Motor Vehicles
 Manufacturing and wholesaling
 Financing  Logistics  Multi-brand business

Sales operations in
U.S. multiple dealership
Chile
business

Truck manufacturing and U.S. Truck rental &

sales leasing business
 Mitsui’s Rail Transportation Projects
Major Track Records
Ireland South Africa Brazil
DMU/EMU Supply Locomotive Supply EMU Supply
Rolling Stock &
Sub-System Supply

Turnkey Projects Taiwan Malaysia

Electrified Double Track
China Saudi Arabia
North South Railway
High Speed Rail Monorail Project
•High Speed Rail Project Civil & Track Work

•Mass Transit
•Track Construction
Brazil
PPP Investment
BOT, PPP

USA Europe Brazil Russia

Freight Car Lease Locomotive Lease Freight Car Lease Freight Car Lease
Rolling Stock Leasing

Brazil
Freight Transportation Freight Transportation

Business
20
 Power Generation Asset Portfolio As of March, 2017
Gross Capacity (Net Capacity)
Gross Capacity: 38GW
(Net Capacity (Mitsui’s share): 10.4GW)
Guzman (solar thermal) 50MW (15MW)
Juneda Solar (solar) 1MW (0.4MW) 75 assets in 21 countries
Spanish Hydro (hydro) 84MW (24MW)

Indian Queens (Oil) 140MW (35MW) Haneda（Solar）2MW (1MW) Ontario (gas) 1,005MW (503MW)
Saltend (gas) 1,200MW (300MW) Hibikinada（Wind）15MW (2MW) Canada RE portfolio 680MW (204MW)
Deeside (gas) 500MW (125MW) Ichihara（Biomass）50MW (7MW) (10 wind assets, 2 solar assets)
First Hydro (pumped storage) 2,088MW(522MW) Yonago（Solar）43MW (21MW)
Tahara（Solar／Wind）56MW (8MW)
Zajaczkowo（wind） Izumiotsu（Solar）20MW (10MW)
Salalah-2 (gas) 718MW (323MW) AstoriaⅠ (gas) 575MW (210MW)
48MW (24MW) Arao/Miikeko（Solar）42MW (21MW)
Ibri (gas) 1,509MW (756MW) Brazos (wind) 160MW(80MW)
Hamada（Wind）48MW (24MW)
Ras Laffan (gas) Sohar3 (gas) 1,710MW（857MW）
2,730MW (273MW)
Tomatoh Abira（Solar）111MW (56MW)
Saltillo（gas）248MW (99MW)
Thaketa (gas) Hamamatsu (Solar) 43MW(22MW) ★
Rio Bravo Ⅱ (gas) 495MW (198MW)
50MW (22MW) Global Engineering Stem
★ Rio Bravo Ⅲ (gas) 495MW (198MW)
Hezhou (coal) (Energy management) (Energy storage & ICT)
2,090MW(523MW) Sunverge Rio Bravo Ⅳ (gas) 500MW (200MW)
Safi（coal） (Aggregation ICT platform)
CK Power (hydro etc.) 2,160MW (53MW) Altamira Ⅱ (gas) 495MW (198MW)
1,386MW (416MW)
12 SPP (gas) 1,470MW (441MW) Forefront Power
Gulf Electric (gas/biomass) 1,897MW (19MW) (Distributed solar)
Amman East（gas） Eco Electrica (gas) 524MW (79MW)
Paiton 1 (coal)
400MW (160MW)
1,230MW (560MW)
Synergen (gas/oil) 396MW (111MW) Valladolid (gas) 525MW (263MW)
Jordan IPP 4（gas/oil） Paiton 3 (coal)
241MW (96MW) 815MW (371MW) Pelican Point (gas) 487MW (136MW) Bii Stinu (wind) 164MW (82MW)
Canunda (wind) 46MW (13MW) Santo Domingo (wind) 160MW (80MW)
Avon（gas/oil) Track 3B (coal） Kwinana (gas) 118MW (25MW) ★
670MW (168MW) 2,000MW(300MW) Loy Yang B (coal) 1,026MW (308MW)
Dedisa（gas/oil） Jirau (hydro)
335MW (84MW)
3,750MW (750MW)

Ecogen
● Gas fired
(Distributed generation/
● Coal fired
Energy management)
● Oil fired
● Renewables
By region Contracted
★ New power business By source
/Merchant
(■ Under development/construction)
 Global Port Assets
(%) Share%
Portek owned (8)

Malta (1)
Mitsui owned (9)
Latvia (1) Thailand (1) Vietnam (1) Japan
Valetta Gateway Riga Universal Evergreen Vietnam International Tokyo International
Terminal Terminal Container Terminal Container Terminal Air Cargo Terminal
(55%) (80%) (49%) (15.7%) (100%)

Algeria (1)
Bejaia
Mediterranean
Terminal Brazil (4)
(49%) VLI (20%)

Argentina (1)
Gabon (2) Rwanda (1) Terminales
Gabon Port Management Magasins Generaux Indonesia(2) Indonesia (1) Rio de La Plata
Libreville & Port Gentil du Rwanda <INLAND> Terminal 009 (51%) Container Terminal One (5%)
(100%) (75%)

22
MITSUI & CO.’s Business Areas
Chemicals
Basic Materials Business Unit
We provide materials and solutions
in a wide range of areas, including
securing competitive resources and
utilizing these in the manufacture
and sale of chemical goods, and
supporting the overseas develop-
ment of Japanese chemical manufac-
turers with proprietary technology
and products.
Performance Materials Business Unit
We develop businesses that connect
growth industries peripheral to the
materials industry. We help solve
social issues by strengthening the
manufacturing and sales of green/bio-
based raw materials, and enhancing
the performance of materials used in
automobiles, electronics and packag-
ing materials, and detergents and
surfactants.
Salt field business/Shark Bay salt field (Australia)
Nutrition & Agriculture Business Unit
We see global population growth
as a business opportunity, and
strive to meet social needs for
increased food production and cre-
ation of added value from food by
engaging in wide-ranging businesses
in the food and chemicals areas,
including fertilizers, agrochemicals,
feeds, and other food ingredients.
23
 Business Portfolio –Manufacturing– Chemicals

Salt production 3.5mil tons / year

Hexagon Composites

Mitsui Agri Science International

Plalloy Mtd Toyoda Gosei
TRI (Poland) Missouri
Bioamber Sarnia

HI-BIS Honshu Chemical Industry Novus International

Hexa Americas
Soda Certis USA
Taiko Aromatic Advanced
International Palm Oleo Fairway Methanol Composites
Daito Chemical Industries
Methanol Company
Denka Performance
Riken Thailand LABIX Elastomer
Palm Oleo
Prime Evolue
Standard Toyo Polymer Singapore

Compañia Minera Miski

Mayo S.R.L. (Mitsui
Onslow Salt Bussan Fertilizer
Shark Bay Salt
Resources)

● Methanol & Ammonia :2

▲ Olefins & Chlor-Alkali :3
■ Aromatics & Industrial Chemicals :2
□ Performance Materials :10
◆ Speciality Chemicals :4
As of March 31, 2016
○ Nutrition & Agriculture :5
24
 Food Science –Novus– Chemicals

 Total sales was US$1,100mil in 2015

 Over 3,500 customers in 100 countries such as Tyson Foods
 Main products is Essential Amino Acid for feed
 Novus has shares of Methionine over the world
 Mitsui owns shares.

Optimize amino acid formulation to

minimize excess dietary protein.

Optimize gut health to reduce

incidence of diarrhea and wet litter.

Enhance protein digestion to reduce

nitrogen output.

Back to Last Page 25

MITSUI & CO.’s Business Areas
Lifestyle
Healthcare provision and healthcare related ancillary services/Acibadem Bodrum Hospital (Turkey)
Food Business Unit
Engaged in the production, marketing, manufacturing and
processing of food resources and products, we are building a
global business base from which to provide a stable supply of
safe and reliable foods to both Japan and overseas.
Food & Retail Management Business Unit
We apply product development, quality control, and logistics
expertise to the development of consumer-oriented businesses
in areas including logistics services, food ingredients, and
processing, contributing to safe and stable food supply and
enhanced consumer convenience globally.
Healthcare & Service Business Unit
In the healthcare, pharmaceutical, and service industries, we
help enrich the lives of people worldwide by offering high value-
added services globally. In the healthcare industry - one of our
Seven Key Strategic Domains - we provide healthcare and
related ancillary services, mainly in Asia.
Consumer Business Unit
We cover a range of industries, including real estate, life
essentials, and fashion. By leveraging our strong relationships
with quality business partners, we aim to provide high value-
added products and services globally and create innovative
business models to improve people’s quality of life.
26
 Grain –Plum Grove– Food

 Salim Group / Indofood is historically the largest

buyer of wheat from Australia. Plum Grove is
providing wheat for Salim Group
 The largest grain accumulator in West Australia
 Major products: Wheat, barley, canola, pulses
 Mitsui owns shares.

Wheat Export Share in Australia (2013/14)

NSW
WA 350 growers 3% 1% 1% CBH 4.2Mil MT
1,855 growers Upcountry storage 4% Glencore 2.6Mil MT
Pool & Cash （180,000MT） 5% Cargill 2.4Mil MT
Bulk Containers
GrainCorp 1.7Mil MT
5% 27%
Emerald 1.4Mil MT
PlumGrove+Mitsui 0.8Mil MT
EAST 9%
WA Bunge 0.7Mil MT
ADM 0.5Mil MT
SA Vitol Asia Pacific 0.4Mil MT
Pool 11% 17%
Cash Pool TBA 0.2Mil MT
SA
Cash Noble 0.2Mil MT
1280 growers 15%
Pool & Cash Riverina 0.1Mil MT
Bulk Others 0.1Mil MT

27
 Import Share to Japan Food

Volume of food resources handled 17.5mil tons / year

Corn Soybean Canola

20% 25% Japan’s

35%
No.1
14 million 1.7 million 2.3 million
tons tons tons

※Including milo

Vegetable oils Raw Sugar

Wheat
including palm oil
Japan’s Japan’s
Japan’s
30% No.1 30% No.1 20% No.1

5.4 million 7.5 million 1.3 million

tons tons tons

※Wheat and Barley for Food ※Palm oil, soybean oil, canola oil

Total import: Estimate in 2014 announced by the Ministry of Agriculture, Forestry and Fisheries, Mitsui’s share: Mar/2014

28
 Food & Retail
Retail Support Service –Seven & i Holdings– Management

 Over 30 years experience with Seven & i Group

 Provide trade, food/packaging materials, supply chain
management and product planning and development
 Mitsui owns shares

Private Brand Development Support:

Fresh Food Program:
Seven Premium
Supply Chain Management Package Solutions

Global Merchandising:
Nationwide Logistics Smart Store Program Support
Seven Cafe
CDC Management

29
 Healthcare &
Healthcare –IHH Healthcare Berhad– Service

 One of the largest private hospital groups in Asia

 49 hospitals with 9,000 beds through Parkway, the largest
private hospital group in Singapore
 the second largest private hospital group in Malaysia and
Acibadem, the largest private hospital group in Turkey.
 Mitsui owns shares. (Partner)

30
 Consumer
Fashion & Textile

Paul Stuart, Inc. (Global) Max Mara Japan Ltd. (Japan)

Hanae Mori Associates Co., Ltd Mitsui Bussan Inter Fashion Triple Pte Ltd.
(Golbal) Ltd. (Global) (Singapore)

 Manufacturing, procurement and  Retail & Wholesale of

sales of fashion apparel, accessories Under Armour sports wear
and other fashion goods. in ASEAN Countries

31
MITSUI & CO.’s Business Areas
Innovation & Corporate Development
IT & Communication Business Unit
We are engaged in the development and promotion
of innovative information and communications
technology businesses in fields including internet
communication, IT services, media, industrial IT, and
IT solutions.
©QVC Japan, Inc.
TV shopping business/QVC Japan (Japan)
Corporate Development Business Unit
We provide expertise in finance and logistics, and
agile management of company management resources,
including human assets. Our mission is to develop
strategic projects and cultivate new business areas
leading to the further evolution of Mitsui & Co.'s
business.
32
 IT &
Retail related IT Business –Mercari– 33 Communication

 The world’s biggest and fastest growing mobile C2C marketplace.

 Over 25mil downloads in Japan and US.
 Average time spent 43 min per day on Mercari(35% of time spent on smartphone
on average), is most viewed EC Apps in Japan.
 20% of the items sold are sold within only 60min.

Seller Buyer
 IT &
Microsatellite 34 Communication

AxelSpace
 Develops artificial satellites weighting less than 100kg
(microsatellite) and operates them to provide unique data.
 With private satellite and global daily monitoring platform to utilize
space to the business
Business Model

5 functions
Providing services and solutions
around the world.
Marketing Financing
Gathering and carefully Using various types of
analyzing in-depth market financing methods which
information. can be tailored and
optimized depend upon
cases.

Logistics IT & Process

Development
Our logistics expertise is a
Capabilities
major source of support
for our customers’ Risk Management Exercising our business
engineering capabilities by
business.
increasing the sophistication
We undertake pre-assessment of business risks, devise of four key using our IT and
methods for managing or mitigating risks we have process development
identified, and based on this provide customers with capabilities.
tailored solutions.

35
 Activities of

Mitsui & Co., Ltd.

in Indonesia

October 2017
 History of Mitsui in Indonesia
1901 Sending first personnel to Java Island ( to Surabaya).

1916 Opened office in Batavia (Jakarta)

1917 Opened office in Surabaya

1965 Opened Jakarta office. (*Note)

1990 PT. MITSUI EXPORT INDONESIA was established.

2000 Changed name to PT. MITSUI INDONESIA

(Capital US$ 10 M)

2008 PT. MITSUI INDONESIA’s Head office moved to

Menara BCA (52nd & 51st floor).

Note: The current Mitsui & Co., Ltd. was established through mergers of the various new
companies that had been established after the disbandment of the former Mitsui & Co. by
the order of GHQ, so legally speaking, there has been no continuation between the former
Mitsui & Co. and the current Mitsui & Co.
37
Company Structure of Mitsui in Indonesia
As of 1 May 2017

Corporate Division Corporate Administration Div.

Business Division Financial Management Div.

Machinery Div.

Innovation and Corporate Development Division

Iron and Steel Products Div.

PT. Mitsui Indonesia
President Director : Foodstuff Div.
Mr. Motoaki Uno
Consumer Service Div.

Basic Chemicals Div.

Performance Chemicals Div.

Energy Div.

Mineral & Metal Resources Div.

Representative office of Mitsui & Co.ltd

in Indonesia Plant and Project Div.(DJAMX)

38
Strategic Importance of Indonesia for Mitsui

●Accumulated amount of investment, loan and guarantee

￥289.1 billion (approximately US$2.6billion)

●Consolidated number of employees

Employees all over the world : 42,316 (consolidated)
(As of May 1, 2017)
Indonesian employees : Approx. 8,500

Committed to contribute to sustainable

economic development in Indonesia.

39
 Mitsui’s Major Projects in Indonesia (Infrastructure)
(1) PT. Paiton Energy (Est 1994. Mitsui : 45.515%)
 First and the largest IPP in Indonesia
 3 Units and 2,045 MW in operation
 Established in 1994, PPA(Power Purchase Agreement)
with PLN until 2042
 Procuring coal from various coal suppliers in Indonesia

Capacity COD* Outstanding Results

• First IPP to sign PPA with PLN
• 18 years of reliable operation
Paiton I 615MW×2 • First coal fired units with FGD* in Indonesia
1999
(Unit 7 & 8) (1,230MW) • 30MW of excess capacity
• Achieving over 90% average Availability in the last
10 years
• First Super Critical unit on the grid
• Largest unit in Indonesia
Paiton III
815 MW 2012 • COD achieved ahead of time in April 2012
(Unit 3) • 15MW of excess capacity
• Achieving over 90% average Availability since COD
* COD: Commercial Operation Date
* FGD : Flue Gas Desulfurization
40
 Mitsui’s Major Projects in Indonesia (Infrastructure & Energy)
(2) New Priok Container Terminal 1 (Est 2014)
 Operation started in Aug, 2016
 1.5 million TEU/year
 Berth Lengths 850m
 Total Terminal Area 32 Ha
 Depth 16 Meter
 Quay Crane 8 Units
 Rubber Tired Gantry Crane 20 Units

(3) MRT Jakarta

Mitsui is an EPC contractor with MRTJ
for Electrical & Mechanical package (System) .

(4) Tangguh LNG Project in West Papua (Mitsui: 2.3%)

LNG Production Capacity (2 trains): 7.6 MTPA (Started in 2009)
3rd train expansion (additional 3.8 MTPA) being conducted.

41
 Mitsui’s Major Projects in Indonesia (Manufacturing)
(1) PT. Yamaha Indonesia Motor Manufacturing
(Est: 1974. Mitsui : 15% )
JV between Yamaha Motor and Mitsui.
Manufacture and sales of motorcycles.
Number of sales (2016) : 1.56 million (including numbers for export)

(2) PT. Bussan Auto Finance (Est : 1997. Mitsui : 70%)

Consumer finance for motorcycles/motorcycle retail finance
Number of contracts per year (2016) : 296,000 contract
Outstanding contracts (as of Dec 2016) : 697,000 contracts

(3) A320 Leasing Business with Garuda Indonesia

In 2014, Garuda Indonesia and Mitsui have signed on a sales and
lease-back contract for 3 units of Airbus A320 amounting approx.
US$ 140 million. Currently Mitsui is participating tender for 16 unit
x B737 Max.

42
 Mitsui’s Major Projects in Indonesia (Steel Product)

(1) PT. MICS Steel Indonesia (Est: 2013. Mitsui : 98%)

Steel coil service center that provides high quality in
steel processing of slitting and shearing to meet
the demand of automotive and other industries.

(2) PT. Pelat Timah Nusantara Tbk. / Latinusa

(Est: 1982. Mitsui : 10% )

A JV with NSSMC and Krakatau Steel. The only one

Tinplate producer in Indonesia with high quality and
match international standard.
 Mitsui’s Major Projects in Indonesia (Chemicals)

(1) PT Champion Pacific Indonesia

(Invested in 2016. Mitsui : 40% )
Mitsui and Fujimori Kogyo have acquired jointly PT
Champion Pacific Indonesia Tbk. —Indonesian
Manufacturer of Flexible Packaging for Pharmaceutical
Products in June 2016.

(2) PT Standard Toyo Polymer (Est: 1975. Mitsui: 40% )

JV with Tosoh Corp. supplies Polyvinyl Chroride(PVC)
mainly used for pipes and cables.
 Mitsui’s Major Projects in Indonesia (ICT)
(1) PT Internux (Invested in 2013 Mitsui 20%)
 Provides LTE services in Jakarta and Medan.
 10 times faster than existing mobile communication.
 Data-based communication fees 70% lower than its competitors
 Accumulated number of active subscribers (Prepaid/Postpaid) 653K (as of April 2017)

45
 Mitsui’s Major Projects in Indonesia (ICT)
(2) PT. Indonesia Media Televisi “Big TV” (Est: 2012 Mitsui : 5% )
Satellite Television provider : Covering Indonesia nationwide
from Aceh to Papua. A telecommunications satellites launched in
collaboration with SKY Perfect JSAT Corporation. Total number of
subscriber: around 620,000 (as of April 2017)

(3) PT. Graha Teknologi Nusantara (Est: 2013 Mitsui : 35%)

Service : Rated 3 (ANSI/TIA-942) Data Center (Colocation).
First “Japan Quality” Data Center in Indonesia to obtain
Rated 3 certification located in Cikarang.
(STABLE, SAFE, SUSTAINABLE, SECURE)

(4) PT. Solusi E-Commerce Global (Est: 2017:Mitsui : 10%)

Service : Marketplace EC
1st e-commerce that adopted O2O*system selling 2+ millions
of orders to more than 480 cities in Indonesia (and growing)
* O2O ： Online to Offline

46
 Mitsui’s Major Projects in Indonesia (Healthcare, Real Estate)

(1) Panasonic Health Care Holdings

(Invested in 2016. Mitsui : 22% )
Mitsui has acquired 22% equity of PHC in March 2017. PHC
is currently the 3rd biggest player of blood glucose device in
the world.

(2) Columbia Asia Group (Invested in 2016. Mitsui :16% )

Mitsui bought a roughly 16% stake in Columbia Asia Group,
Asia’s largest hospital group, in July 2016. Columbia Asia
Group is operating 3 hospitals in Indonesia (Medan, Jakarta
and Semarang) .

(3) PT SLP Surya TICON Internusa(SLP)

(Est: 2013. Mitsui 25% )
Development, lease and management of warehouses and
factories in Karawang, West Java. (Gross Floor Area : approx.
140,000 m2) 47
 Mitsui’s Major Projects in Indonesia (Foodstuff)

(1) ABC Kogen Diary

(Invested in 2015. Mitsui : 30% )
Run dairy products manufacturing plant in Bandung and
market to Indonesian consumers.

(2) Raffles Pacific Harvest

(Invested: 2017. Mitsui: 30% )
Mitsui has taken a 30% stake in Raffles Pacific Harvest in
2017. Dairy farm in the highlands of Garut, West Java.

5. Mitsui’s Investments in Indonesia
Mitsui invests in 32 companies in Indonesia (as of September 2017).
US$ 2.6 billion (Investment, Loan and Guarantee)
Merak/Serang
Chemical /Steel Industries
1. PT. Standard Toyo Polymer
2. PT. Pelat Timah Nusantara(Latinusa)
Jakarta
Logistics
1.PT. Tri-net Logistics Indonesia
Motorcycle and Finance
2.PT. Yamaha Indonesia Motor Mfg
3.PT. JBA Indonesia
4.PT. Bussan Auto Finance
Telecommunication/E-commerce
Jakarta 5. PT. Internux
Bandung
Container Terminal /Seaport 6. PT. Indonesia Media Televisi
Foodstuff Operation 7.PT.Graha Teknologi Nusantara
1. PT. ABC Kogen Diary 13. PT New Priok Container Terminal 1 8. PT. Solusi Ecommerce Global
14. PT.Indo Log Industrial Machinery
2. PT. Raffles Pacific Harvest
15.PT.Portek Indonesia 9. PT. Japan Engineering Technology
16.PT.Serbaguna Terminal 10. PT. MMK Machinery Indonesia
17. PT.Portindo Dinamika Medical
11. Columbia Asia Hospital
12. Panasonic Health Care Holdings

KALIMANTAN
SUMATRA
SULAWESI

Tangguh
Bandar Lampung
Bekasi/Karawang LNG Production
Bio-fuel
Chemical /Steel Industries 1. KG Berau
PT. Toyota Bio Indonesia JAVA
1. PT. Sanko Gosei Technology Indonesia 2. KG Wiriagar

Tangerang 2. PT. MCNS Polyurethane Indonesia

Chemical Industries
Semarang
1. PT. Petnesia Resindo
Sewing Industry
PT. Fukuryo Indonesia
3. PT. MICS Steel Indonesia
Paiton 4. PT Champion Pacific Indonesia
Power Plant Rental Warehouse/Factory
PT. Paiton Energy
5. SLP Surya TICON Internusa (SLP)
49
 CSR Activities in Indonesia
(1) Mitsui-Bussan Scholarship Program for Indonesia
 Send High school graduated students to Japanese Universities with full scholarship.
(1.5 year: Japanese Language School, 4 years : Undergraduate course)
 Program start : 1992.
 Total numbers of graduate as of 2016 : 42 persons.
 The scholarship marked the 25th anniversary in 2017. 25th anniversary reception
will be held in Tokyo around Feb 2018.
 The Program supported by Ministry of Education and Culture of Republic of
Indonesia, Embassy of Japan in Indonesia, and PERSADA.
 Currently 14 alumni have been working in Indonesia (including 4 employee in
Mitsui) and take important roles in various fields.
Mitsui Bussan Scholarship 2017 Mitsui Bussan Scholarship Reunion
Seeing Off Dineer

50
 CSR Activities in Indonesia
(2) Mitsui Bussan Environmental Funds
1. Social development of Seriwe village using renewable energy in Lombok Island.
2. Establishment of E3i village for social development at Tangsi Jaya Village in
Gunung Halu, West Java.
Seriwe Village Development Project Tangsi Jaya Development Project
Brief Career

Iko Pramudiono

PT Mitsui Indonesia
Corporate Administrative Div.
Strategic Planning & Business Development
Education Background

• 1992 SMA Negeri 8 Jakarta

• 1st batch Mitsui-Bussan Scholarship for Indonesia (1992-1998)
• 1994 Kokusai Gakuyukai Japanese Language School, Tokyo
• 1998 The University of Tokyo (Electro Engineering)
• 2004 The University of Tokyo Graduate School (PhD, Electro Information
Engineering)

53
Work Experiences

• 2001-2004 The University of Tokyo Institute of Industrial Science (Research

Assistant)
• 2004-2008 NTT Corporation, NTT Information Sharing Platform Laboratories
(Expert Researcher)
• 2008-2011 Mitsui Jakarta Representative Office, Plant Projects Div (Assistant
Manager)
• 2012-2013 Mitsui&Co.,Ltd, First Projects Development Div (Manager)
• 2013-2017 Mitsui Jakarta Representative Office, Plant Projects Div (Deputy
General Manager)
• 2017-now PT Mitsui Indonesia, Corporate Administrative Div (Deputy General
Manager)

54
Leadership Development :
Global Management Academy
(GMA) 2017
GMA Program

• Contents : Leadership, Innovation, Strategy and many others.

• Schedule
1. Yugawara (Japan) session : 10-13 April 2017
2. Harvard Business School (HBS, Boston USA) session : 21 May – 3 June, 2017

56
45 Participants

23 Mitsui Japanese staffs, 7 Mitsui non Japanese staffs, 15 partners

(Lippo Group, Woodside, China Baowu Steel, Novus, Anglo American Sur, SIMS, Penske,
Celanese, ADNOC, NovaQuest Capital and Gestamp)

15 countries
- Japan 23
- USA 8
- Australia 2
- Europe 2
- Singapore 2
- South
America 2
- Indonesia 2
- China 1
- UAE 1
- Malaysia 1
- India 1
57
Program Design

• 3-4 cases per day, interactive lectures, group exercises, computer simulation
• Apple, Walmart, Uber, GE, Shimano, Morgan Stanley, Alibaba, mine rescue, Everest
climbing team, antarctic expedition..
• Discussion groups every morning after breakfast, group reflection every evening
• Discussions with Mitsui management (Yasunaga CEO etc)
• Peer Coaching with participant own case study
• Acting and Story Telling exercises with real actors

58
Also some Funs

Futsal tournament
Baseball watching
Campus tour
Eats and drinks …

59
1. Leadership Styles (1)

• A Tale of Two Coaches :

Coach K vs Coach Knight
Coach Knight Coach K
(Bob Knight) (Mike Krzyzewski)
Records 2nd most wins in history : Most wins in history :
902 wins (Indiana + Texas 1077 wins (Duke Univ,
Tech, 1971-2008) 1980-now)
Style Intense preparation. Team is a family.
Military style discipline A matter of the heart.
Famous The key is not the will to There is no greater thing
quote win... everybody has that you can tell someone
that. It is the will to [than] : “I believe in you,
Point guard K (left), coach Knight (right) prepare to win that is you’re good, I’m there for
at West Point college basketball team important. you”
Dismissed from Indiana Need 4 years to bring
for harassment. Turned Duke to national league.
around Texas Tech in 1
year.

60
1. Leadership Styles (2)

• Development of leadership as a journey

61
2. Leadership Development (1)

62
2. Leadership Development (2)

• Developmental Sweet Spot

63
2. Leadership Development (3)

• Development of leadership as a journey

64
2. Leadership Development (4)

• Leadership is like Parenting

• Power of Empathy as Meaningful communication to share Vision and Passion

65
2. Leadership Development (5)

• Leader commitment to support while give challenges to develop Mindset of play to win,
raise the bar higher

66
 3. Into the Unknown : Shackleton’s Antartctic
Expedition
• Task environment : Into the unknown. Ready for surprises.

New Business & Crisis Situation

Explore Zone
Probability of occurrence of

Leadership
major uncertainties

Business Operation
Exploit Zone

Management

Known Known Unknown

Knowns Unknowns Unknowns
Predictability
67
4. Wise Leader (1)

• To be sustainable business in uncertain environment.

• Decisions making based on : explicit and tacit knowledge + practical wisdom (what good
for company, society and higher purposes)

• Six abilities of a Wise Leader

1. Judge Goodness
2. Quickly grasp the essence
3. Create “Ba”
4. Communicate the essence
5. Exercise political power
6. Foster practical wisdom in others

68
4. Wise Leader (2)

• Two views of Business Strategy

Outside-in Inside-out

- Analytic • Model for Mission based Business Culture

• “It’s all about gut and vision and intuition and
- Reductive grasping the essence and having a larger purpose”
• Based on first hand experiences

Develop insanely great products (Apple)

“ The people who are crazy enough to think they

can change the world are the ones who do.”
—Apple’s “Think Different” commercial, 1997
69
Key take-aways

• Development of leadership as a journey Mitsui is People

• Leadership is like parenting
• Mindset of play to win, raise the bar higher

• Meaningful communication to share Vision and Passion

Open mindedness
• Passion is contagious
• Encourage ownership

• Engine of innovations in uncertain environment = Business Experimentations

• Challenge the fear of failures
• Learn from failures Challenge & Innovation

70
Iko Pramudiono
p.iko@mitsui.com